Finance Committee

Finance Committee Meeting Council Chambers Aug 22, 2012 8:00 a.m. Attendance: Committee Members Present: Chairman Joe Lo Verde, Mayor Robert Callero, Village Manager Van Geem, John Johann and Finance Director Scot Neukirch Committee Members Absent: None Non Committee Members Present: Trustee Chris Hanusiak, Trustee Louella Preston, and Village Attorney Joe Annunzio Call To Order: Meeting opened at 8:01 a.m. Approval of Minutes: The minutes from the July 18, 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 7/13, 7/20, 7/20sp, 7/27(106), 7/27, 8/3, and 8/10 New Business Pension Funding Plan: Finance Director Neukirch was asked during the FY 2013 budget workshops to come up with a more detailed funding plan for the Police and Fire Pensions. Neukirch expanded a previous funding plan memo that was presented previously at the January 18, 2012 Finance Committee. Neukirch explained that developing a schedule for funding the pension plans like a debt service schedule as some trustees requested is next to impossible. Neukirch explained all the variables involved and gave an overview of the various things that have led up to the current unfunded situation. Neukirch explained that the current plan is to utilize sales tax, property tax, post office rent and available reserves to meet and hopefully exceed the annual recommended contribution calculated by the actuary. The Village is already exceeding the contribution required by Illinois statutes. The recommended contribution provides for more stable contributions until 2040 and that is the amount that the Village will strive to maintain each fiscal year. The plan recommends that the amount of reserves that is to be allocated to the pensions be determined during the annual budget process when available reserves can be better matched to the various annual demands of the Village. Questions and comments from Committee members and Trustees in the audience were answered and discussed. A motion was made and all approved to recommend this pension funding plan to the Village Board. The Committee directed Neukirch to provide the funding plan document to the Village Board. Tax Year 2012 Property Tax Levy: Finance Director Neukirch presented the proposed 2012 tax levy for the Woodriver Special Service Area. This area was created in 2008 to provide for collections of property taxes from the Woodriver Condominium owners to repay the Village for the costs associated with the construction of their new parking lot. The amount of the 2012 levy is $22,435. The levy will be presented to the Village Board for approval at the September 25, 2012 Village Board Meeting. Finance Director Neukirch also presented the Village’s proposed 2012 corporate tax levy. This levy provides funding for the Village pensions, garbage removal and a small portion goes to the Civic Center TIF. As previously addressed in the pension funding discussion, the proposed levy includes a 4.9% increase to help fund the Village pension plans. Neukirch explained that a 4.9% increase would translate in to about a $10 to $15 increase per year for the average home in Niles. A motion was made and all concurred to recommend the 4.9% increase to the Village Board. The corporate tax levy will be presented to the Village Board for approval at the September 25, 2012 Village Board Meeting. Amending the Milw/Thy TIF: Village Manager Van Geem presented the proposed ordinance which would increase the Milwaukee Touhy TIF Budget to $25,940,876. This ordinance would  provide the Village Board the option of using available funds in the Milwaukee Touhy TIF to repair railings, ramps, install an elevator and other improvements at the Niles Police Department. A payment would also need to be made to the various taxing districts impacted by the TIF from available funds in the TIF. Van Geem explained how the increased budget amount was computed and fielded questions from the Committee and audience. The Committee voted in favor of and directed Van Geem to have a pre-board on this issue at the August Board meeting followed by a vote to amend the TIF budget at that same August Board meeting. At the September Board meeting the Board would then vote on the actual improvements that were to be made at the Police Station. Sterling Award: Finance Director Neukirch explained the Village of Niles Finance Department/Purchasing Division has received the Sterling Award from the Universal Public Procurement Certification Council. Neukirch explained that this award is the result of the Village earning the Certified Agency designation for 3 years in a row. Neukirch recognized Purchasing Agent Susan Bus as being the point person responsible for the Village receiving this award. Other Business: Trustee Hanusiak questioned the detail behind what was spent on tolls. Finance Director Neukirch said he would look in to it and work with the other departments to provide the detail requested. Trustee Preston expressed a desire for the budget process to be more transparent and said she felt that was requested by the Village Board during the previous budget workshops. Other staff members and Board members present did not recall the transparency of the budget process being an issue during the last series of public workshops. Staff has already added additional schedules and expanded the transmittal letter to make the document more user- friendly. Additional schedules and changes are planned in future years. Adjournment: The meeting adjourned at 9:17 am. Next Meeting The next Finance Committee meeting is tentatively scheduled for Wednesday September 19, 2012 at 8:00 a.m. in the Trustees Conference Room pending the members’ availability. Prepared by Scot Neukirch on 8/22/2012