Finance Committee

Finance Committee Meeting Conference Room 212 July 22, 2010 8:00 a.m. Attendance Committee Members Present: Mayor Callero, Trustee Hynes, Trustee Weel, Village Manager Van Geem and Finance Director Neukirch Committee Members Absent: None Non Committee Members Present: Trustee Preston, IT Director Shaw Meeting Opened Meeting opened at 8:05 a.m. Approval of Minutes The minutes from the June 17, 2010 Finance Committee meeting were approved. Motion made, all concurred. IT Audit Direction Request IT Director Bill Shaw presented the draft request for proposal (RFP) document that has been developed to address the Village Board’s request for an information technology (IT) audit. IT Director Shaw discussed what has been done to this point and raised some concerns and asked some questions on how he should proceed. There was discussion by the Board members and they decided they will review the draft RFP and asked Village Manager Van Geem to gather some comparable RFPs from other towns or park districts. The Committee will then meet again August 10, 7:30 a.m. to formalize the RFP document to be presented to the Village Board on the August agenda requesting permission to go out for formal proposals. The Committee stated that the IT Director’s role in this process will be to provide any necessary information or clarification during the process as requested by the Committee or Village Board. Update on Early Retirement Plan Village Manager Van Geem gave an update on the proposed early retirement incentive plan. The Committee made one recommended addition concerning future changes to the insurance the employee is enrolled in. George will consult the attorney about the change and put the plan on the agenda for the July Village Board meeting. Update on 5 Year Capital Plan Village Manager Van Geem informed the Committee that Public Works Director Jochim is updating a 5 year capital improvement plan and should have it available for the August Finance Committee’s review. Internal Controls Audit Proposals Finance Director Neukirch presented the 4 proposals that were received for the proposed internal controls audit for the Village of Niles. Proposals were received from Miller Cooper, Sikich, Selden Fox and Wolf and Co. The committee members will review the proposals and discuss them at the next Finance Committee meeting. The Committee will make a recommendation to the Village Board at the August meeting. Upcoming Tax Levy Finance Director Neukirch and Village Manager Van Geem discussed their recommendation to propose a 10% increase to the Village of Niles 2010 tax year levy. The increase would not be received by the Village until the 2nd half of calendar year 2011 which would be budget year 2012. Funding the pensions and paying for capital projects are the main justifications for the increase. Statement of Investments Update Finance Director Neukirch reviewed the additional information now being provided on the Statement of Investments that is included with the monthly Treasurer’s Report to the Village Board each month. As part of this discussion, Finance Director Neukirch explained the Village’s intention to transfer $3 million from Amalgamated Bank to the IMET 1-3 Year Fund to help improve the rate of return. Other Business Village Manager Van Geem explained some savings that could be realized by switching our electricity provider. Village Manager Van Geem will bring a proposal to the Village Board.  Village Manager Van Geem also stressed to the Committee that the State is about 6 months behind in its payments to Niles of its Income Tax totaling about $1 million. Trustee Weel noted that the Village has had 3 straight months of positive sales tax returns compared to the same months one year prior. Village Manager Van Geem presented the proposed revenue sharing agreement with Tony’s Foods. The agreement will be brought before the Village Board at the July Board Meeting. Adjournment A motion to adjourn was made, seconded and all concurred. The meeting adjourned at 10:02 a.m. Next Meeting The next Finance Committee meeting will be either August 10 at 7:30 a.m.. Prepared by Scot Neukirch on 7/22/10