Finance Committee

Finance Committee Meeting Council Chambers May 16, 2012 8:00 a.m. Attendance: Committee Members Present: Chairman Joe LoVerde, Mayor Robert Callero, John Johann, and Finance Director Scot Neukirch Committee Members Absent: Village Manager Van Geem Non Committee Members Present: Village Attorney Joe Annunzio Meeting Opened: Meeting opened at 8:03 a.m. Approval of Minutes: The minutes from the April 11, 2012 were up for approval. Motion made, all concurred. Accounts Payable Approval: The motion was made and all concurred to approve the Accounts Payable registers for 4/6, 4/10, 4/13, 4/20, 4/20(106), 4/27, 5/4. Appropriation Ordinance: Finance Director Neukirch presented the FY 2013 Appropriation Ordinance that will be up for Village Board approval at the May 22 Village Board meeting. There was a short discussion concerning the funding of the Police and Fire Pension Funds that are provided for in the upcoming budget. Finance Director Neukirch explained the process and the Village’s plan. Neukirch explained that the appropriation ordinance must be passed within the first quarter of the fiscal year. Annual Compensation Posting Finance Director Neukirch explained the new annual posting requirement required Requirement: of all IMRF employers. Within 6 days after approval, IMRF employers must post on the Village’s website the details of any compensation package exceeding $75,000. Compensation packages exceeding $150,000 must be posted on the Village’s website 6 days prior to approval. The Village has completed the report with the required information and the report has already been posted on the Village’s website. Debt Service Record Keeping: Finance Director Neukirch presented the resolution provided by Chapman and Cutler formalizing the Village’s policy on record keeping with regards to the Village’s debt service obligations. Neukirch explained that in the unlikely event of an IRS audit, Chapman and Cutler have advised the Village that the IRS looks favorably upon municipalities that have formal record keep policies in place. The Committee recommended that the policy be changed to reflect in section 4 that the Compliance Officer must comply with the Village’s purchasing policy if he were to hire outside consultants to assist with the arbitrage calculation reporting requirements. The resolution will be presented to the Village Board at the May 22 Board Meeting for approval. Annual Purchasing Certifications: Finance Director Neukirch presented the annual list of routine items over $1000 that the Village Manager has signed, the signed credit card policy statements and the annual certification by the Finance Director that no procedures were changed in the Purchasing Manual. Chairman LoVerde questioned if the Village reimburses employees for the tip portion of the bill when they are eating meals during off site training seminars. Neukirch explained that it has been the Village’s policy to reimburse the tip portion of the bill as long as it is within acceptable limits of 15% to 20% of the bill and below the per diem allowed. Chairman LoVerde asked Neukirch to check what other communities do. Attorney Annunzio said that the Village is not violating any laws by reimbursing the tip portion of the bill. Purchasing Certification Award: Finance Director Neukirch presented a certification from the Universal Public Procurement Certification Council which stated that the Village has illustrated competency for the benefit of the public with regards to its purchasing practices. Neukirch specifically recognized Purchasing Agent Susan Bus for her hard work and explained how the Village strives for the highest standards and integrity with its procurement process. Other Business: John Johann asked Finance Director Neukirch for an update on the audit process. Neukirch explained that the auditors were at the Village on May 15 for some preliminary field work. The auditors will come out again in July for the main field work and the report is required to be completed by October 31. John Johann asked for an update on the Glenview litigation. Mayor Callero explained that it is a slow moving process and the Village has been working with the attorneys recently on various items in the litigation. Chairman LoVerde asked about the issue that the State may keep all of the Personal Property Replacement Tax that has historically gone to the municipalities. Finance Director Neukirch explained that there currently are 3 proposals each with increasing negative effects towards the Village. The Village has budgeted for $240,000 in Personal Property Replacement Tax for FY 2013. The State’s plan would be to use this revenue to help fund the State’s teacher pension plan. Chairman LoVerde asked Finance Director Neukirch to show him where the budgeted amounts for Sisters Cities appear in the budget document. Neukirch explained that Sister Cities is a separate entity from the Village. Chairman LoVerde showed Neukirch a non PO for a payment from the Village to Sister Cities. Neukirch explained that for the annual Taste of Sister Cities, the Village loans its credit card machines for the use at the event. Any items that were run through the credit card are deposited in a temporary Village account until a check can be issued against that account to the Sister Cities for the amount that was charged to the credit card. Mayor Callero stated that he thinks Village Manager Van Geem has the financials related to Sister Cities. Adjournment: The meeting adjourned at 8:56 am. Next Meeting The next Finance Committee meeting is tentatively scheduled for Wednesday June 20, 2012 at 8:00 a.m. in the Council Chambers pending the members’ availability. Prepared by Scot Neukirch on 5/16/12