Finance Committee

Finance Committee Meeting Council Chambers April 25, 2013 8:00 a.m. Attendance: Committee Members Present: Chairman Joe LoVerde, Mayor Robert Callero, Acting Village Manager Steve Vinezeano, and Finance Director Scot Neukirch Committee Members Absent: John Johann Non Committee Members Present: Village Attorney Joe Annunzio, Trustee Preston and resident Susan Atanus. Call To Order: Meeting opened at 8:00 a.m. Approval of Minutes: The minutes from the March 15, 2013 Finance Committee meeting were up for approval, motion made and all concurred. Accounts Payable Approval: The approval of the Accounts Payable registers for 3/15, 3/22, 3/29, 4/5 and 4/12 were up for approval, motion made and all concurred. New Business Annual Audit Engagement Letter: Finance Director Neukirch presented the engagement letter for the FY 2013 Village of Niles audit to be performed by Sikich. Neukirch explained some of the changes in the engagement letter from the previous year. The engagement letter was already approved by the Village Board at the April 23 Board Meeting. Neukirch explained that even though the Finance Committee was unable to meet prior to the Village Board action on the engagement letter, he still wanted to keep this item on the agenda in case the Committee had any concerns or questions. Neukirch discussed the provision that limited Sikich’s exposure in the event they reported information incorrectly that was originally included in the engagement letter. Neukirch explained that after discussion with the Village’s legal department he worked with Sikich to have that part of the engagement letter removed. GFOA Certificate of Achievement: Finance Director Neukirch reported to the Committee that the Village of Niles Finance Department has once again received the GFOA award for Excellence in Financial Reporting. Neukirch explained that even though the Village has received this award for many years, that should not diminish the accomplishment due to the amount of work and effort that goes in to receiving this award by the Finance Department. Neukirch further recognized members of his staff for their part in the audit process specifically recognizing Laurie Nannini for her efforts. Chairman LoVerde and Mayor Callero congratulated Neukirch on his department’s achievement. Purchasing Manual Requirements: Finance Director Neukirch reported that the Finance Department has complied with the required annual requirements of the Village’s purchasing policy. Neukirch has signed the certification that no changes are required at this point in time to the purchasing manual, the annual credit card policy has been signed by all employees issued credit cards and the Acting Village Manager has signed off on the annual list of routine items over $1000. Water Billing Appeals Process: Finance Director Neukirch presented 2 sections of the Village’s code pertaining to water billing accounts. Neukirch explained how the current Village process has evolved and how the practice is not in sync with the Village Code. Prior to making a formal recommendation to change the Village Code, Neukirch wanted to get direction from the Committee concerning the changes that need to be made, if any. After discussion on the current process and possible revisions, the Committee recommended that Neukirch bring a formal proposal of a revision to the current Code to a future Committee meeting for further discussion on this issue. Budget Process Feedback Finance Director Neukirch requested input from the Committee on the current FY 2014 budget process that is coming to a close. Neukirch explained that the process  over all went well and resulted in a very good budget document but that the schedule was a bit tight and difficult for staff to keep at times. Acting Village Manager Vinezeano also complimented the staff on how well the budget process went this year. Chairman LoVerde recommended that instead of the Finance Director and Village Manager meeting with the Mayor prior to coming to the Finance Committee that the staff just bring the draft document to the Committee to keep them in the loop on all changes. The Committee agreed with this recommendation. Trustee Preston asked questions concerning the appropriation process and budget document which were responded to by the Committee Other Business: Chairman LoVerde brought up the issue of how the Village will fund future construction costs for Village’s Storm Water Relief Program. Finance Director Neukirch explained the funding mechanism is already in place with the passage of the ¼% sales tax increase that took effect in 2012. Neukirch explained that Acting Village Manager Vinezeano and the Village’s consultant will notify the Finance Department well in advance of the need to issue debt. Neukirch further explained that there will need for discussion concerning maintaining the Village’s pension contributions when more of the ¼% increase is be contributed to the Storm Water Program. Staff will continue to monitor and advise the Committee and Board on developments related to these two large Village commitments. Public Comment Trustee Preston made additional comments concerning the budget process and the transferring of funds within the budget which were responded to by the Committee. Neukirch explained that the Village has very tight controls on expenses and explained the Village’s purchasing procedure. Chairman LoVerde discussed his concern that when large projects in the budget aren’t done, the Board should be notified. Neukirch explained that this is more of a communication issue than reflective of a problem with the Village’s budget method. Acting Village Manager Vinezeano will address this issue with the staff to improve communication in the future. Susan Atanus made comments on various flooding concerns, budget issues and recommended the Village research grants. Executive Session: None Adjournment: Motion to adjourn was made and all concurred at 9:06 am. Prepared by Scot Neukirch on 4/25/2013