Finance Committee

Finance Committee Meeting Council Chambers September 21, 2011 8:00 a.m. Attendance Committee Members Present: Mayor Callero, Chairman Lo Verde, Village Manager Van Geem and Finance Director Neukirch Committee Members Absent: John Johann Non Committee Members Present: Trustee Palicki, Trustee Preston, Gary Karshna (Capital Gains Inc), Jeff Wickencamp (Hey & Assoc), Steve Vinezeano (Asst Village Manager) and Chuck Ostman (Community Development Director) Meeting Opened Meeting opened at 8:00 a.m. Approval of Minutes The minutes from the August 17, 2011 Finance Committee meeting were approved. Motion made, all concurred. Accounts Payable Approval The motion was made and all concurred to approve the Accounts Payable registers for August 19, August 26, September 2 and September 9 of 2011. Pension Investment Presentation Gary Karshna, Capital Gains Inc, is the Financial Advisor for Niles Police Pension Fund and the Niles Fire Pension Fund. Gary manages 26 funds and has been the Financial Advisor for Niles for the last 24 years. Gary reviewed the history of the investment statutes that determine eligible investments for the pension funds. Gary also reviewed the investment strategy, makeup of the Village’s portfolio and the impact of the current economy on the portfolio. Over the last 24 years, the investment return for the pension funds has been about 7.4% which is right on target with the 7.5% that the actuary assumes for his calculations of the unfunded liability each year for the pension funds. Board members followed Gary’s presentation with questions. The audio of the presentation was recorded and is available. Storm Water Relief Financing The Finance Committee discussed possible financing options for the Village’s storm Options storm water relief project. Options for funding discussed included property tax, a flat sewer fee and other possible fees. The Committee discussed narrowing the scope to approximately $10 million. The Storm Water Relief Committee will need to work with Hey and Assoc. to determine what can be done for this amount. Staff will also need time to compile more detail on the financing options. Hey and Associates’ presentation scheduled for the September Village Board meeting will be postponed until the October meeting. Property Tax Levies Scot Neukirch presented the annual corporate property tax levy and the annual special service area levy. Both levies will be presented to the Village Board in October for approval. George Van Geem recommended the Board consider adding on an amount to cover the cost sharing portion of the storm water relief program. Mayor Callero and Chairman Lo Verde will consult with the other Village Board members and provide direction to staff for preparation of the tax levy regarding the amount for the cost sharing. If the Village added this amount on the tax levy and the Village later decided to go a different direction with the storm water relief program, the amount could be abated from the tax levy in early 2012. Adjournment A motion to adjourn was made, seconded and all concurred. The meeting adjourned at 9.52 a.m. Next Meeting The next Finance Committee meeting is scheduled for Thursday, October 27, 2011 in the Council Chambers. Prepared by Scot Neukirch on 9/21/2011