Finance, Taxes and Insurance

FINANCE COMMITTEE November 14, 2016 – Official 5:00 p.m. Members Present: Brian Lauer, Gil Amborn, Andy Ewert, Brent Hess and Jim Schneider Also Present: Rebecca Ewald and Eric Rozina Lauer called the meeting to order at 5:00p.m. Motion made by Schneider, seconded by Hess to approve the October 10th Regular Meeting Minutes and October 26, 2016 Joint Finance and Village Board Meeting Minutes. Motion carried. The Committee reviewed the investment options for the pension plan. In September 2015 the Finance Committee reviewed the PIMCO Low Duration Fund R and the PIMOC Real Return Fund R that received scorecard evaluations of 3.5. Any fund located below a 4 on the scorecard is placed on the watch list. The Finance Committee recommended that they remain on the watch list for an additional six months and review them at that time and 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. The PIMCO Low Duration fund is the one fund that has been on the watch list for 8 consecutive quarters. It is recommended that the Committee consider replacement of this PIMCO Low Duration with the Eaton Vance Short Duration Strategic Income Fund. Lauer stated he reviewed how the Eaton Vance Short Duration Strategic Income Fund has been performing and recommended the PIMCO Low Duration fund be replaced with Voya Intermediate Fund instead. Motion made by Ewert, seconded by Schneider to recommend Village Board replace the Eaton Vance Short Duration Strategic Income Fund with the Voya Intermediate Fund. Motion carried. Discussion was held regarding turnout gear and face pieces for the SCBA units. At the 10/10 meeting the Committee began discussing the expenditures for turn out gear. A total of $21,500 was allocated in 2016 and $27,193 has been expended. All fire fighters require turn out gear. The Chief needs to purchase 4 more sets due to new fire fighters who cannot reutilize existing gear due to their size. In addition, 4 face masks for the SCBA equipment is also required. Lauer expressed concern about the amount included in the 2017 and whether it would be sufficient based on what has occurred in 2016. Amborn noted that the $35,000 expenditure for CPAT equipment and the $41,265 expenditure for Engine 748 chassis within the 2016 capital budget were not likely to happen this year so the funds for these purchases could be allocated to that. Motion made by Schneider, seconded by Amborn to recommend Village Board approval of the purchase requisition for turnout gear in the amount of $10,000 and the purchase requisition for SCBA face pieces in the amount of $4,540. Motion carried. Discussion was held regarding the insurance distribution formula for 2017. Peternell clarified questions from October’s meeting regarding premium amounts. Further discussion was held regarding the crime policy. Ewald will follow up with insurer on questions from the Committee on what is covered under this policy. Motion made by Schneider, seconded by Ewert to approve the insurance distribution formulas as presented. Motion carried. The Committee reviewed the appeal of dog boarding fee. The owner’s animal was taken to our facility on October 5th and was charged the $25 boarding fee. The owner requested a hearing to appeal the charges but did not appear at the meeting. Motion made by Ewert, seconded by Schneider to deny the appeal. Motion carried. Peternell presented Resolution #810 – Amending the fee schedule to include refuse and recycling collection costs. Effective January 1, 2017 residential units (including condominiums) will be paying for refuse and recycling as a special charge on their tax bill instead of through the levy. The fee schedule needs to be updated in accordance with this change. Motion made by Schneider, seconded by Ewert to recommend Village Board approval of Resolution #810. Motion carried. The Committee reviewed the proposed 2017 budget. Highlights of the 2017 budget include: - The Village of Waterford has a proposed 2017 total budget of $6,590,811. The annual budget is supported by several sources of revenue including taxes, charges for services, intergovernmental funding, licenses, permits, fines & forfeitures, investment income, miscellaneous revenue, special assessments, and special charges. Total revenues of $5,921,154 are used to fund $6,590,811 in total Village operations, capital purchases, library operations, recycling services and debt service. - The Board approved a total tax levy of $2,647,612, a reduction of $253,234 or 8.73% compared to 2016. - The mill rate is calculated by using the Village’s assessed value. The Village’s 2016 assessed value increased $2,384,000 resulting in total assessed value of $428,711,100. In 2017 the Village mill rate is projected to be $6.73, a decrease from $7.36 in 2016. - The 2017 budget reflects additional sources in revenue for garbage and recycling collection. The Board decided in 2016 to include the collection of condominiums units within the Village’s contract for garbage and recycling services. The fees for garbage ($196,622) and recycling ($61,000) services will be charged as a special charge reflected as a line item of the tax bill in 2017. Special assessments will be collected from homeowner’s for work on their property in the amount of $20,630 for the Racine Street area reconstruction. - The 2017 budget reflects utilization of allocated funds for the purchase of two fire trucks and a police vehicle. In 2013 the Village had saved sufficient funds through the CIP for the purchase of fire vehicles and equipment. The department was structurally reorganized and the Board chose not to purchase additional equipment during the reorganization process. In 2016 the Fire Department recommended a plan for the purchase of fire vehicles and equipment based upon deployment of these resources when responding. The 2017 budget reflects the implementation of this plan. Peternell stated that the public hearing on the 2017 budget is scheduled for November 28, 2016. Motion made by Schneider, seconded by Ewert to recommend Village Board approval of the 2017 budget as presented. Motion carried. The Committee reviewed Johnson Block’s letter of engagement for audit services for 2016. Peternell stated that the Board approved a contract with Johnson Block through audit year 2017 and an RFP will be done in February 2017 for services to begin in 2018. Motion made by Amborn, seconded by Hess to recommend Village Board approval of the letter of engagement. Motion carried. Discussion was held regarding the upcoming room tax law changes. Beginning on January 1, 2017, municipalities are limited by law in the way they spend room taxes. The statute states: “ . . . tax revenue that may not be retained by a municipality, shall be forwarded to a tourism entity or a commission if one is created . . .” Because of the change in the statute, the Village must decide which mechanism to use to handle the funds, as follows: (1) The Village may forward the funds to a tourism entity. The tourism entity would spend the funds according to statutory restraints, and report the purposes of its expenditures to the Village. (2) The Village may create a local commission of 4 to 6 members, which has more control over how the money is spent, but still has to contract with one or more local tourism entities, and if there is no tourism entity, with other organizations, for tourism marketing services. The commission members would be appointed by the Village President. One of the commission members “shall represent the Wisconsin hotel and motel industry.” If the owner of the Baymont declines to participate, another hotel/motel representative would have to be invited to join the commission, and if none participates, that position must remain vacant and reserved for a representative of the industry. The advantage of having a commission is that it would have more control over how the funds are spent. Motion made by Schneider, seconded by Hess to recommend the Village Board establish a commission consisting of the Village Board and a representative of the Baymont. Motion carried. The Committee reviewed the October budget to actual reports. Motion made by Amborn seconded by Ewert, to recommend to the Village Board approval of Village prepaid invoices in the amount of $28,753.16. Motion carried. Motion made by Schneider, seconded by Ewert to recommend to the Village Board approval of Village unpaid invoices in the amount of $280,266.79. Motion carried. Upon motion made by Schneider seconded by Ewert, the meeting adjourned at 6:22 p.m. Motion carried. Submitted by, Lori Peternell, CMTW Village Treasurer 2