Finance, Taxes and Insurance

FINANCE COMMITTEE October 12, 2015 – Official 4:30 p.m. Members Present: Gil Amborn, Brian Lauer, Ron Kluth, Tom Roanhouse and Jim Schneider Also Present: Rebecca Ewald, Lori Peternell, Stephanie Charapata, Carrie Orlovsky, Jim Bergles and Don Houston Lauer called the meeting to order at 4:30 p.m. Motion made by Schneider, seconded by Amborn to approve the September 14, 2015 Regular Meeting Minutes. Motion carried. Discussion was held regarding investment option for the pension plan. In April 2015 the Village received an annual update of the funds in the Waterford pension plan. One fund, PIMCO Low Duration Fund R, received a scorecard evaluation of 3.8. In September 2015 the PIMCO Real Return Fund R received a scorecard evaluation of 3.5. 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 in 6 months for purposes of monitoring the status of the fund. Discussion was held regarding if the investment policy needed to be changed to designate how long a fund will remain on the watch list before it’s replaced. Motion made by Amborn, seconded by Schneider to leave the 2 funds on the watch list for an additional six months and for the investment policy to state that any funds on the watch list will be reviewed every 6 months. Motion made by Schneider, seconded by Kluth, to recommend to the Village Board approval of Village prepaid invoices in the amount of $26,793.22. Motion carried. Motion made by Amborn, seconded by Kluth to recommend Village Board approval of the letter of engagement with Johnson Block for audit services for 2015. Motion carried. Discussion was held regarding the cross connection control program and fees. Peternell stated that the Village was required to adopt the State of Wisconsin cross-connection control rules to protect the Village of Waterford public water supply system by the end of 2015. The Board approved HydroCorp to perform Cross Connection Inspection Services for Commercial, Industrial and Public Authority properties at a cost of $39,000 for 2 years ($19,500 annually) which will be billed to the customer. Resolution #781 is to add the cost of inspections to the fee schedule. Houston suggested that the fee be added to the tax bill instead of billing the customer. Peternell will consult with the attorney on the process for this and will update the Committee at the November meeting. Motion made by Kluth, seconded by Schneider to recommend Village Board approval of Resolution #781 – Adopting cross-connection control program and amending the fee schedule to include inspection fees. Motion carried. Discussion was held regarding the police donation account and revenue policy. Last year the Village adopted a revenue policy that requires “Gifts, donations and unanticipated revenues will be considered as “over and above” basic Village appropriations. Gifts and donations shall be used solely for the purpose intended by the donor. Unrestricted gifts and unanticipated revenues will be allocated in the manner and for the purposes authorized by the Village Board. Any unrestricted gifts and unanticipated revenues that remain unallocated after 6 months will become part of unassigned general fund balance." Runzheimer provided the donation to the police department. According to the new revenue policy the Village Board determines how donated funds will be allocated. Any donated funds that remain unallocated for more than 6 months become part of the unassigned general fund balance. Due to the Village’s review of police services and future transition of department services to the Town of Waterford, there was no review of the donated funds, as the Board was working on deciding how the service would be provided after the liaison officer’s retirement. It has been recommended that the funds be provided to the Waterford Police Department for the purpose of starting a citizen’s police academy and citizens reserve group that could assist police with local events. The Town Chairman and Village President met with the Runzheimer Foundation this past week to review the Village and Town’s new endeavor for police services and explain that they would be proposing the utilization of these funds to begin these two police service programs which go above and beyond routine services. They also requested that the donations provided to the Village in the past be provided to the Town in the future. In your packet is a press release that could be provided should the Finance Committee and Village Board agree to allocate these donated funds to these two new efforts. Motion made by Roanhouse, seconded by Schneider to recommend Village Board approval of the funds to be provided to the Waterford Police Department for the purpose of starting a citizen’s police academy and citizens reserve group that could assist police with local events and to amend the revenue policy to have the information provided to the Finance Committee and Village Board after receipt and identify a thank you note be provided to the individual or organization providing the donation that is signed by the Village President or his/her designee. Motion made by Kluth, seconded by Schneider to recommend Village Board approval of on Resolution #781 – Amending the Fee Schedule for cross connection inspection fees. Motion carried. Discussion was held regarding the WE Energies lighting expenditures. Director Dolezal was notified by WE Energies that the outlets and associated wires for the holiday decorations on North Milwaukee Street do not comply with WE Energies current standards for clearances between energized wires. If the Village wants to hang lighted decorations for Christmas going forward, these outlets will have to be fixed so they are in compliance. Dolezal explained the existing equipment will need to be removed from the poles and outlets installed. WE Energies has given a quote of approximately $8,500 to rewire the 19 poles. At the 9/21 Public Works & Utilities Committee meeting they recommended the Village Board approve having WE Energies bring the poles into compliance so lighted Christmas decorations can be hung. Staff is recommending the utilization of general fund balance, as there are no accounts within the streets budget that can accommodate for these expenditures in 2015. Amborn stated that the expenditure should be a non-recurring expenditure and come from the capital account instead of general fund balance. Further discussion was held regarding the required purchase requisition and whether there was sufficient time to have the requisition approved at the November meeting without delaying the project. It was the consensus of the Committee to recommend Village Board approval for staff to complete a purchase requisition up to a maximum of $10,000 as a non-recurring expenditure. Motion made by Schneider, seconded by Roanhouse to recommend Village Board approval a purchase requisition for of the lighting expenditure up to a maximum of $10,000 and for the expenditure to come from the capital account as a nonrecurring expenditure. Motion carried. Motion made by Schneider, seconded by Kluth to recommend to the Village Board approval of Village prepaid invoices in the amount of $26,793.22. Motion carried. Motion made by Schneider, seconded by Amborn to recommend to the Village Board approval of Village unpaid invoices in the amount of $234,744.13. Motion carried. Due to lack of time, the 3rd quarter review will be done at the November meeting. Upon motion made by Amborn, seconded by Schneider, the meeting adjourned at 5:30 p.m. Motion carried. Submitted by, Lori Peternell, CMTW Village Treasurer 2