Finance, Taxes and Insurance

FINANCE COMMITTEE April 13, 2015 – Official 5:00 p.m. Members Present: Brian, Lauer, Gil Amborn, Cindy Gauger, Ron Kluth and Tom Roanhouse Also Present: Rebecca Ewald, Lori Peternell, Rick Mueller, Rose Burdette, Drew Hunn Lauer called the meeting to order at 5:00 p.m. Motion made by Amborn, seconded by Gauger to approve the March 9, 2015 Regular Meeting Minutes. Motion carried unanimously. Discussion was held on the promotional room tax funding formula. At the 10-27-14 Joint Finance and Village Board meeting discussion was held regarding how the Village allocates promotional room tax dollars. At that meeting there was discussion about changing how the promotional room tax is distributed to organizations so that there will be a fund balance for additional requests such as Balloonfest. It was determined that the Finance Committee would review the funding formula to determine if changes will be recommended to the Village Board. Promotional Room Tax is 70% of total amount collected and is fully disbursed to the Chamber of Commerce (25%) RCEDC (20%), Baymont Hotel (15%), and Racine County Convention Bureau (10%). Included in the 2015 budget are allocations of $15,000 ($5,000 Ballonfest, $10,000 Wayfinding signage) that deplete the room tax fund balance. Motion made by Amborn, seconded by Kluth to not recommend changing the promotional room tax distribution formula at this time. Motion carried unanimously. Rose Burdette was present to appeal the animal intake charges for her dog that was processed through the DPW facility on Friday, March 20, 2015 at 8:00pm. Rose explained that her dog was found a block from her home and they believe their dog was let out of the cage without their knowledge. After discussion by the Committee it was the consensus that there was an expense to the Village and that some of the costs should be recouped. Motion made by Roanhouse, seconded by Kluth to reduce the invoice from $200 to $100. Motion carried unanimously. The Committee reviewed the draft funding request policy and application. During the 2015 budget process discussion was held on developing a policy on how to process funding requests from outside organizations. The Committee recommended some minor changes to the policy for Village Board approval on April 27th. Peternell stated that once the Village Board has approved the policy and application a letter will be sent to organizations that have requested funding in the past. Motion made by Roanhouse, seconded by Amborn to recommend Village Board approval of the funding request policy and application. Motion carried unanimously. The Committee reviewed the purchase requisition from Chief Mueller for a commercial washer and dryer at Station #2. Chief Mueller had requested the following clarification on the purchasing procedure; a. According to the policy for purchases between $5,001 to $10,000 the Department Head and Administrator approve the purchase requisition and then the Department Head places the order. However, if the item purchased is a capital item it needs to recommended by the Finance Committee and approved by the Village Board. Does the Department Head need to wait for the Finance Committee recommendation and Village Board approval to occur before purchase can be made? If item(s) are approved in the operating or nonrecurring budget is a purchase requisition form still required and need Finance and VB approval for capital items or purchases over $10,000? b. A total of $25,000 was approved in the 2015 budget for turnout gear. If gear is not ordered all at once will separate purchase requisitions be required for each purchase? The Finance Committee concurred that the intent of the policy was to have prior approval from both the Finance Committee and Village Board purchases that are identified in the policy. Discussion was held on anticipated expenditures on turnout gear. Chief Mueller explained that the lead-time on turnout gear is approximately 12 weeks and is only ordered as members are hired. Discussion was held that if the Finance Committee and Village Board needed to approve each purchase there could be an additional delay of 4-5 weeks. In order to avoid further delays in outfitting members, the purchase requisition for the turnout gear will be processed as a standing order for 2015 for $25,000 and will be ordered as needed. Motion made by Roanhouse, seconded by Amborn to recommend Village Board approval of the purchase requisition for the washer and dryer and prepare a standing order purchase requisition for turnout gear. Motion carried unanimously. Drew Hunn from Northwestern Mutual presented the annual review of the village pension plan program. One fund, PIMCO Low Duration Fund R, received a scorecard evaluation of 3.8. Any fund located below a 4 on the scorecard is placed on the watch list. The Finance Committee requested Andrew Hunn from Northwestern Mutual to provide the Finance Committee with an update on the fund n 6 months for purposes of monitoring the status of the fund. Motion made by Amborn, seconded by Kluth to recommend to the Board that no changes be made to the plan at this time. Motion carried unanimously. Discussion was held regarding the Racine Community Foundation Grant award of $40,000 for the two canoe/kayak launches. This is a multi- jurisdictional project between the Village of Waterford and Racine County with two launches located in each of our park areas with a total estimated project cost of $162,000. A matching grant of $81,000 has already been secured from the DNR. The remaining Village portion of $20,500 will be covered 60% with impact fees pursuant to state statute and remaining costs by general fund balance which has already been approved by the Village Board. Motion made by Roanhouse, seconded by Kluth to recommend Village Board approval of the Racine Community Foundation grant. Motion carried unanimously Motion made by Amborn, seconded by Kluth, to recommend to the Village Board approval of Village prepaid invoices in the amount of $49,626.14. Motion carried unanimously. Motion made by Gauger, seconded by Amborn to recommend to the Village Board approval of Village unpaid invoices in the amount of $344,401.44. Motion carried unanimously. Upon motion made by Kluth, seconded by Amborn, the meeting adjourned at 6:30 p.m. Motion carried unanimously. Submitted by, Lori Peternell, CMTW Village Treasurer 2