Finance Committee

Finance Committee Meeting Council Chambers October 21, 2015 8:00 a.m. Call To Order: Meeting opened at 8:01 am Roll Call: Finance Director Neukirch called the roll for Committee members. Committee Members Present: Chairman LoVerde, Bob Callero, Paul Nielson and Al Weel Committee Members Absent: John Johann Village Staff Present: Trustee McCreery, Village Manager Vinezeano, Finance Director Neukirch, Assistant Finance Director Nannini, Village Attorney Annunzio, Legal Assistant Thake, Community Development Director Ostman, Economic Development Coordinator Klicker, Assistant Village Manager Skeffington-Vos and Public Works Director Anderson Approval of Minutes: The minutes from the September 22, 2015 Finance Committee meeting were up for approval, motion made and all concurred. Accounts Payable Approval: The approval of the Accounts Payable registers for 9/11, 9/18, 9/25, 9/26, 10/2 and 10/9 were up for approval, motion made and all concurred. New Business 2016 Annual workers comp and Liability insurance renewal: Finance Director Neukirch gave a brief introduction of the process that has been followed to this point with the Village’s liability and workers compensation insurance coverage program. Dan Mackey and Tom Collins from Mesirow went over the specifics of the renewal and answered questions from the Committee. Motion was made and all concurred to recommend the Village Board approve the insurance renewal as presented at the November Board Meeting. Claims Management Contracts: Finance Director Neukirch provided the Committee the 2016 contracts with Claims Management which provides claims administration services to the Village for the run-out workers compensation claims up to 1/1/2015 and liability claims. Neukirch explained that the contracts have not changed from last year and the Village attorney stated he had no issues with the contracts. Motion was made and all concurred to move the contracts to the Village Board. Village Compensation Study: Assistant Village Manager Skeffington-Vos gave an overview of the compensation study that is being proposed by staff at Chairman LoVerde’s request. The Committee stated that in the future they would like a Village Board member to be on the Committee for studies involving employee compensation. Joellen Earl from GovHR explained that they will be comparing compensation for positions not classifications. The Committee requested a list of comparable communities that will be used for the study. Motion was made and all concurred to move the contract to the Village Board. 6B Policy Discussion On Conditions And Renewals: Economic Development Coordinator Klicker presented a proposed 6B incentive agreement form that would be used for future 6B requests. Klicker explained that currently the County does not allow for 6B incentives that were awarded to be rescinded even if the business does not live up to its end of the agreement that was outlined as a condition of the 6B. Klicker explained that the County is revisiting its procedures and considering changing this position in the future. Klicker also asked for direction as to whether or not the Village should allow extensions to existing 6B incentives. The Committee requested that section 4 in the agreement be re-written to make the corporate authorities the decision makers as to whether or not a 6B recipient has met the requirements of the agreement, not the Village Manager. A motion was made to move forward with utilizing the presented agreement with the  changes to section 4 making the corporate authorities the decision makers as to whether or not the applicant has met the requirements of the agreement. Investment Advisor Discussion: Finance Director Neukirch requested direction from the Committee as to whether or not they were comfortable with staff moving forward with PMA as investment advisors for the non pension Village reserves. Neukirch explained that PMA gave a presentation at the last meeting and provided a written response as requested by the Committee at the previous meeting. There was discussion on the Village’s derivative investments that PMA was asked to review. Chairman LoVerde expressed his long time disapproval of these investments. Finance Director Neukirch responded to concerns and questions from the Committee. The Committee was happy with PMA’s presentation at the last meeting and their written response to the Committee’s questions. A motion was made and all concurred for staff to move forward with a formal engagement with PMA. Village Property Tax Levy: Finance Director Neukirch provided the Committee with various documents of information concerning the Village’s property tax levy. Neukirch explained the various issues facing the Village in meeting its annual pension requirements which are partially supported by property taxes. Bob Callero stated he felt the Committee should support a property tax increase to help address the pension issue. Chairman LoVerde stated he will not support a property tax increase due to the unnecessary spending he feels is currently occurring in the Village. There was also discussion as to whether or not it was appropriate to pass a budget which utilizes reserves. A motion was made to increase the Village’s property tax 4.9%, no second was received. A second motion was made to not increase the property tax levy: Chairman LoVerde-yes, Bob Callero-no, Al Weel-yes, Paul Nielsen-yes. FY 15 Appropriation Amendments: Finance Director Neukirch presented the FY 15 appropriation amendment ordinance. Neukirch explained that the Capital Projects Fund went over budget because The Bank of New York which is the paying agent for this Fund’s bonds increased their fees during the year by approximately $750. Neukirch also explained that the Risk Management Fund went over budget by approximately $780,000 due to an increase in premiums for workers compensation caused by a decrease in exposure and 2 large claims that were paid out during the year. Motion made and all concurred to send the appropriation amendment ordinance to the Village Board for approval. Quarterly Water Billing Update: Asst. Finance Director Nannini updated the Committee on the Finance Department’s list of delinquent water accounts, payment plans, leak adjustments and the Illinois Debt Recovery Program. These programs, created in conjunction with the Finance Committee, have been very successful in reducing the Village’s outstanding debt. American Express Rewards Update: Finance Director Neukirch updated the Committee on the current cash and points balances earned to date as part of the American Express Rewards Program. Neukirch also explained that staff is looking in to options of purchasing conference room chairs that were budgeted for. Other Business: None Public Comment: Resident Chris Hanusiak expressed his opinion that the Village’s spending is out of control. He also commented on the Village’s reluctance to raise property taxes yet it will raise other fees. Resident Louella Preston explained her concerns that she feels the Village doesn’t have a long range plan, that the Village isn’t using the correct comparables list for its studies, that the Village isn’t handling its COLA increases correctly and spending is out of control. She also felt the Village should contact the county representatives about the 6B issue previously discussed. Executive Session: None Return From Executive Session: None Adjournment: Motion to adjourn was made and all concurred at 9:44 am. Prepared by Scot Neukirch on 10/22/2015