Finance, Taxes and Insurance

FINANCE COMMITTEE April 11, 2016 – Official 4:00 p.m. Members Present: Brian Lauer, Gil Amborn, Ron Kluth, Tom Roanhouse and Jim Schneider Also Present: Rebecca Ewald, Lori Peternell, Stephanie Charapata, Jeff Dolezal, Rick Mueller, Bill King-R&R Insurance and Blair Rogacki-MPIC Lauer called the meeting to order at 4:00p.m. Motion made by Schneider, seconded by Roanhouse to approve the March 14, 2016 Regular Meeting Minutes. Motion carried. Motion made by Schneider, seconded by Kluth to move up agenda item #4. Motion carried. In February, the Finance Committee recommended earlier that we continue insuring with the League of Wisconsin Municipalities Mutual Insurance (LWMMI) for liability insurance. The Local Government Property Insurance Fund (LGPIF) has dramatically increased their rates in the last year and has been discussed at the state level of being eliminated. LWMMI provided competitive quotes from Chubb and MPIC. The president of MPIC and our representative from LWMMI reviewed the proposal in detail and answer questions from the Committee. We were notified from the insurer, the Village’s bonds need to be renewed by April 26, so the Committee was requested to recommend authorizing their renewal, just prior to all of the policies renewing on May 1. Should the Village Board decide to not reinsure with LGPIF, the Board must vote and submit certification to the LGPIF. Motion made by Schneider, seconded by Amborn to move forward with LWMMI and MPIC and not submit certification to LGPIF of cancellation. Motion carried. The Committee reviewed the quote from John’s Disposal for bulk item disposal. John’s Disposal has provided a quote for bulk item pick up, either curbside or drop off at the DPW facility. If curbside pickup was done once a month it would cost $44,325/year; every other month would cost $30,141/year. Cost for drop off at the DPW facility would be dependent on how often we wanted to provide that service and how much is collected. Peternell stated that from 2013 and 2015 residents paid John’s Disposal for 90-115 special pickup’s per year. Discussion was held regarding getting a price if the number of pick-ups was reduced to twice and once per year for curbside pickup. Further discussion was held on the Village providing a reimbursement twice per year up to $35 to residents when they schedule a special pickup. Motion made by Schneider, seconded by Roanhouse to have John’s Disposal provide a cost twice and once per year for curbside pickup. Motion carried. Discussion was held regarding the solid waste ordinance. Village ordinance requires that any building with 4 or more units be required to contract individually for garbage services. At the March meeting the Committee requested John’s Disposal review the properties that are not receiving service through the Village to determine the best method of collection and provide a quote for adding those properties to the contract. John’s Disposal has provided a quote in the amount of $17,080.32. The quote reflects providing the same service (carts or dumpsters) as to what is currently being provided. If service to these properties is going to be provided by the Village, the ordinance would need to be changed accordingly. Motion made by Schneider, seconded by Roanhouse to change the ordinance to include condo units as residential (not apartments) and include the $17,080.32 in the 2017 budget. Motion carried. The Committee reviewed the budget to actual reports. It was determined that the reports were inaccurate as they included December 2015 in the totals. The Committee will review the reports in May. The Committee discussed the 1st quarter budget operational and capital reviews submitted by Department heads. Dolezal discussed the purchase requisition for the Exmark mower in the amount of $14,564. Dolezal stated that there is $15,000 allocated in the capital budget to purchase the additional mower. Motion made by Kluth, seconded by Schneider to approve the purchase requisition for the Exmark mower to not exceed $15,000. Motion carried. Chief Mueller discussed the purchase requisition for Toughbooks. Chief Mueller stated that there is $8,000 allocated within the capital budget for Toughbooks, the state approved supplier has provided a quote for $7,980. Motion made by Schneider, seconded by Amborn to approve the purchase requisition for Toughbooks not to exceed $8,000. Motion carried. Discussion was held regarding Fire & Rescue billing services. Chief Mueller stated that he has met with the billing agency for Mukwonago and Town of Vernon to discuss providing billing services to the Village. Before proceeding, he wanted to discuss it with the Finance Committee and be provided with direction on how to proceed. Motion made by Schneider, seconded by Amborn to have the Chief proceed with to continue discussions with the billing company and have them provide a quote to provide services and waive the RFP process. Motion carried. Motion made by Schneider, seconded by Roanhouse to approve the February 8, 2016 Regular Meeting Minutes. Motion carried. Peternell discussed the recommended changes to the Annual Budget Policy. Motion made by Schneider, seconded by Kluth to approve the minor adjustments to the budget policy, including moving the scheduled meeting for the fourth Tuesday of October to the 4th Wednesday of October. Motion carried. Peternell provided an update on Baymont Hotel delinquent room tax payments. Following direction provided at the March meeting, the Baymont was notified that they were required to provide a payment date for the delinquent room tax payments no later than March 30th. Full payment of all delinquent and current taxes was received on March 29th. Discussion was held regarding promotional room tax distribution for October-December 2015. The 2015 distribution formula provided the Baymont with 15% of the promotional room tax as they were involved in the Wayfinding project that started in 2012. The wayfinding project was completed in September 2015. In February, room tax was distributed to the Chamber and Real Racine for the room tax that was paid in October 2015; however distribution to the Baymont was withheld due to the delinquent status of taxes from November 2015 – February 2016. Now that full payment has been received for the remainder of 2015, the Treasurer is seeking direction on whether payment should be distributed to the Baymont for October through December 2015. The total amount due is $1951.70. Motion made by Roanhouse, seconded by Schneider to authorize payment to the Baymont after they have paid the late penalty for the delinquent payments. Motion carried. Discussion was held on the promotional room tax distribution for 2016. The Baymont is current on taxes for 2016 and distributions to entities can be made. However, at the March meeting the Committee requested to review the distribution formula for 2016 in light of the delinquency situation and proposed room tax changes that will take effect in 2017. Based on what we know at this time, the Baymont will not qualify as a recipient of promotional room tax dollars as they do not meet the definition of a tourism entity. The 2016 budget allocates promotional room tax as follows: $5000 for Balloonfest (represents approximately 50% of amount collected that was previously provided to RCEDC) 25% to Chamber 15% to the Baymont 10% to Racine County Convention Bureau The Committee discussed eliminating the Baymont’s portion and options on how it would be distributed. It was the consensus of the Committee to retain the 15% review it in June or July once more information is available regarding room tax law changes. Motion made by Amborn, seconded by Schneider to eliminate the 15% distribution to the Baymont in 2016. Motion carried. Discussion was held regarding the room tax ordinance. At the March meeting the Committee requested the Village Attorney review the current ordinance and advise on whether it can be changed to require an escrow account for room tax and whether the delinquent room tax can be added to the tax bill. The Attorney responded that the ordinance follows state statute 66.0615 and cannot be amended to include these provisions as they are not included in the statute. Motion made by Schneider, seconded by Amborn, to recommend to the Village Board approval of Village prepaid invoices in the amount of $24,417.53. Motion carried. Motion made by Schneider, seconded by Kluth to recommend to the Village Board approval of Village unpaid invoices in the amount of $185,422.95. Motion carried. Upon motion made by Kluth, seconded by Schneider, the meeting adjourned at 6:20 p.m. Motion carried. Submitted by, Lori Peternell, CMTW Village Treasurer 2