Finance, Taxes and Insurance

FINANCE COMMITTEE June 10, 2013 - Official 5:00 p.m. Members Present: Brian Lauer, Gil Amborn, Cindy Gauger and Ron Kluth Excused: Rick Albee Also Present: Rebecca Ewald, Lori Peternell, Dan Divan, and Andrew Hunn Lauer called the meeting to order at 5:00 p.m. Motion made by Gauger, seconded by Albee to approve the May 13, 2013 Regular Meeting Minutes. Motion carried unanimously. Andrew Hunn from Northwestern Mutual was present to discuss the Village of Waterford’s Pension plan funds and Plan Service Agreement. It has been suggested by our retirement plan brokers at Northwestern Mutual that The Village of Waterford Retirement Plan should change from their current ING investment platform, titled “MAP V,” to a newer ING investment platform, titled “MAP Select.” a) The move to ING’s MAP Select product provides a larger pool of investment options to make available in the Plan. This allows the Plan Trustee, The Village, with the help of our retirement plan brokers at Northwestern Mutual, to offer higher quality investment options for Village of Waterford employees to choose from. b) Additionally, the expenses collected by ING from an employee’s account balance will be reduced, on average, from 2.65% on the Map V platform to 1.15% on the Map Select platform. These expenses are collected by ING on an annual basis from participant accounts. c) Our Retirement Plan’s Third Party Administrator, Pension Consultants Co, has encouraged the changes proposed. We have also sought the opinion of Matt J. Flanary, J.D. of Buelow Vetter Buikema, Olson & Vliet, LLC. Matt has worked with ING to make a few minor but important adjustments to ING’s standard service agreement in order to conserve the Village of Waterford’s right as a municipality. d) The Finance Committee and the Village Board is requested to approve the change described above and begin implementing the transition immediately. e) Proposed Timeline for Implementing Platform Change: - June 10th: Finance Committee approves the new mutual fund lineup. Proposed by Brian Lauer, the Map Select Platform will offer 44 funds, many of which are new to participants. 65% of Plan assets will remain in their current fund. The remaining 35% will be transferred into a new fund with similar risk and objectives. - June 10th: Board approves ING platform change, Plan Trustee signs ING’s Service Agreement, Program Highlights and Contract Application - July 1st: A “30 Day Notice” goes out to Retirement Plan participants making them aware of the Plan changes and details on how their investments will be impacted. If an employee desires to switch their funds from an existing fund to a new fund, they have 30 days to make the transaction before their assets are transferred to Map Select. No action is required of the participants. - August 1st: The Retirement Plan enters a “black out period” where participants are not able to make trades in their account or request rollover distributions. This is estimated to take 5-7 days. Following the black-out period, participants regain full access and functionality. Motion made by Gauger, seconded by Kluth to recommend Village Board approval of the plan changes and associated documents: Map Select Application, Plans Services Agreement, Proposed Funds and Program Highlights. Motion carried unanimously. Dan Divan was present to discuss the Fire & Rescue purchase of power assisted cot. Divan stated that in April the Board approved the purchase of a new Life Line Ambulance. At that time, the Fire & Rescue Department also began research on a power assisted cot because the chassis on the new ambulance is slightly higher which requires personnel to lift both the front and rear of the cot which could cause potential back injuries. Jefferson Fire & Safety offered a discount of approximately $5000 if the cot is ordered in conjunction with the new ambulance. Total price for the power assisted cot is $11,755.20 with funding to be provided from the following sources; $2000 through the EMS Act 102 grant, $5854 from Rescue Small equipment capital fund and the balance of $3901.20 from the F&R donation account. Divan stated that they are working with Jefferson Fire & Safety on a possible source to buy the old cot. Proceeds from the sale could potentially be approximately $2000 and would replenish the Rescue Small equipment capital fund. The Committee asked why only one quote was obtained. Divan stated that there was only one quote because Jefferson Fire & Safety is the vendor who the ambulance was ordered from and the special pricing being offered is because the cot can be configured with the new ambulance being built. It was the consensus of the Committee to have Divan provide 3 quotes so that a comparison of pricing could be achieved. Kluth suggested possibly leasing or financing for the cot so the Department could see if they like the cot before buying it outright. Motion made by Kluth, seconded by Amborn to table the recommendation of the purchase until the July 8th meeting. Motion carried unanimously. The Committee reviewed Resolution #736 – 2013 Budget Amendment. Within the 2013 budget, $269,584 was included in the contingency fund to maintain the allowable increase of general fund expenditures per the Wisconsin’s expenditure restraint program. As in prior years, a budget amendment would be done to move amounts to various capital accounts so that we can continue funding capital projects. Motion made by Amborn, seconded by Kluth to recommend Village Board approval of Resolution #736. Motion carried unanimously. The Committee reviewed Resolution #737 – 2013 Budget Amendment to utilize General Fund Balance. Peternell stated that during the 2013 budget process, the Board and Finance Committee directed staff to maintain the same capital funding level as 2012. In order to accomplish this, the Board approved utilizing General Fund balance to cover any shortfall that was not included in the levy. The total amount approved for capital funding in 2013 was $375,239. Funding came from the following (3) sources: $42,781 in the Capital fund levy, $269,584 in contingency fund, and $62,874 from General Fund balance. Resolution #737 is the formal approval needed to utilize general fund balance. Motion made by Kluth, seconded by Gauger to recommend Village Board approval of Resolution #737. Motion carried unanimously. Motion made by Amborn, seconded by Gauger, to recommend to the Village Board approval of Village prepaid invoices in the amount of $38,678.41. Motion carried unanimously. Motion made by Gauger, seconded by Kluth to recommend to the Village Board approval of Village unpaid invoices in the amount of $230,716.78. Motion carried unanimously. Upon motion made by Kluth, seconded by Amborn, the meeting adjourned at 5:30 p.m. Motion carried unanimously. Submitted by, Lori Peternell, CMTW Village Treasurer 2