Finance Committee

Finance Committee Meeting Council Chambers September 19, 2012 8:00 a.m. Attendance: Committee Members Present: Mayor Robert Callero, Village Manager Van Geem, John Johann and Finance Director Scot Neukirch Committee Members Absent: Chairman Joe Lo Verde Non Committee Members Present: Village Attorney Joe Annunzio Call To Order: Meeting opened at 8:04 a.m. George Van Geem name Acting Chairman Approval of Minutes: The minutes from the August 22, 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 8/17,8/17(wires), 8.24, 8/31, 9/7 New Business Pension Contribution Update: Finance Director Neukirch updated the Committee on the status of the annual actuarial report for the Police and Fire Pension Plans. The actuary for both Pension Funds provided calculations on the impact to the Village’s annual contribution to each Fund if the interest rate assumption was lowered from 7.5% to 7.25% and/or the funding level by 2040 was lowered from 100% to 90%. Neukirch explained that this is for information only, it is the responsibility of each pension plan to decide on these issues. The Police Pension Fund has already decided to lower the interest rate assumption to 7.25% and the funding level as of 2040 to 90% for the actuarial calculations. Implementing both changes would increase the Village’s contribution by about $275,000 from the recommended amount from the previous year. Other factors such as the fund’s experience in the past year also contribute to this increase. Supplemental Appropriation Ord: Finance Director Neukirch presented the proposed FY 2012 appropriation amendment ordinance. Three funds exceeded their total expenditures appropriated for in FY 2012. Neukirch explained that the Debt Service Fund and Milwaukee Touhy TIF Fund exceeded their appropriations because of closing costs associated with the refunding of debt in calendar year 2011. The refunding of this debt saved the Village about $280,000 in interest payments over the remaining life of the debt but caused the funds to exceed their appropriations for FY 2012 by a combined $25,000. The Civic Center TIF Fund exceeded its appropriation amount by $5 because a training seminar cost $5 more than was budgeted. The Committee accepted the report and unanimously recommended that the Village Board approve the appropriation amendment. Other Business: At John Johann’s request, Finance Director Neukirch gave a brief update on the status of the FY 2012 annual audit process. Neukirch explained that they are currently reviewing the draft document and he is preparing the Management, Discussion and Analysis (MD & A) for the report. Adjournment: The meeting adjourned at 8:26 am. Next Meeting The next Finance Committee meeting is tentatively scheduled for Wednesday October 17, 2012 at 8:00 a.m. in the Trustees Conference Room pending the members’ availability. Prepared by Scot Neukirch on 9/19/2012