Finance Committee

Minutes Village of Niles Finance Committee Meeting Remote Participation, Zoom October 21, 2020 10:00 a.m. Call To Order Chairman George Alpogianis called the meeting to order at 10:10 am. Roll Call Assistant Finance Director Laurie Nannini called the roll for Committee Members: Committee Members Present: Chairman George D. Alpogianis, Alan Weel, Jack Drexler, and George Van Geem Committee Members Absent: Joseph Ori Others Present: Village Manager Steve Vinezeano, Deputy Village Manager Hadley Skeffington-Vos, Assistant to the Village Manager Kathy Thake, Finance Director Kent Oliven, Director of Economic Development John Melaniphy, Assistant Finance Director Laurie Nannini, Senior HR Manager Joana Ardelean, Budget Analyst Conor Schultz, and Admin Assistant Joy Athanasiou Old Business Water Account 20118 Adjustment Request Resident Reyna Martinez requested financial relief with regard to a very high water bill she received. Ms. Martinez stated that she could not have used that much water. Water usage for the summer of 2019 was inconsistent with previous years. She said work was being performed on the street in front of her house at that time and suggested that the spike in usage may have been from the construction company using her water. Public Works was sent out and reported no leaks found at the residence. Ms. Martinez’s suggestion that the construction company used her water could not be disproved. Ms. Martinez applied for leak relief assistance in February but was denied being no leak had been found or fixed. Staff was instructed to calculate leak relief as if there had been a leak. Laurie Nannini presented the Committee with the calculation and said that Ms. Martinez would qualify for the maximum leak relief of $500, had a leak been found or fixed. Al Weel made a motion, seconded by Jack Drexler, to approve the water leak adjustment request for Water Account 20118 in the maximum amount of $500. On roll call, all concurred. Tax Year 2020 (TY20) Property Tax Levy Discussion Finance Director Kent Oliven gave a brief recap of the tax levy discussion from the last meeting. Per the Committee’s request from that prior meeting, Mr. Oliven presented two options to implement the needed increase in the Village’s property tax levy due to a 14.7% or $1.34 million increase in the actuarially determined contributions (ADCs) needed for the public safety pension funds. In both options the Village would dedicate the increment from the expiring Milwaukee-Touhy TIF in order to minimize the increase needed for property tax holders. Option 1 would increase the TY20 Police and Fire Pension levies by the full ADC increase with smaller subsequent increases. Option 2 would phase in the TY20 ADC increases by applying the full 100% of the Municipal Cannabis Retailers’ Occupation Tax and 75% of the Video Gaming tax to that increase in the ADC and only increasing the levy by the difference. That dedication of taxes to the ADC would be phased out in subsequent tax years, with the phased out amount applying on top of the ADCs.  Finance Committee Mr. Oliven made a few recommendations. First, would be to fund the increase in public safely ADCs, ultimately through property taxes, with either through Option 1 or Option 2. Second, would be to move to a Truth in Taxation hearing every year for transparency reasons and to allow for further taxpayer input. Third would be to change the benchmark tax increase from the operations portion of the property tax to the overall Village property tax increase. The final recommendation would be not levy the corporate levy going forward and, instead, to split the previously levied former corporate levy equally between the Police and Fire pension levies. After discussion by the Committee, a motion was made by George Van Geem, Seconded by Jack Drexler, to present the staff recommendation of Option 2 to the Village Board of Trustees and all of the other recommended changes. On roll call, all concurred. 7B Request for 5650 W. Touhy Director of Economic Development John Melaniphy requested reconsideration for the 7B tax levy application for the Chick-Fil-A location at 5650 W. Touhy Avenue. John stated this is text book example and strongly recommends this reconsideration. After discussion, Al Weel stated that this request had been previously recommended by the Finance Committee but was not approved at the Village Board level. A motion was made by Al Weel, seconded by Chairman Alpogianis, to recommend the 7B Request for 5650 W. Touhy Ave. to the Village Board of Trustees based on strong staff recommendation. On roll call, the vote was as follows: Ayes 2 Alpogianis, Weel Nays 2 Van Geem, Drexler Approval of Minutes The regular minutes from the September 17, 2020 Finance Committee meeting were presented for approval. A motion was made and all concurred. Accounts Payable Approval The Accounts Payable registers for 2020- 9/11, 9/18, 9/25, 10/2, 10/9 were presented for approval. A motion was made and all concurred. New Business Purchasing Manual Revisions Finance Director Kent Oliven presented a summary of revisions to the Purchasing Policy and Procedures Manual. He stated the manual had been reviewed by staff, the Village Attorney and outside attorney. Mr. Oliven gave an overview and highlighted several recommended changes. In addition, Deputy Village Manager Hadley Skeffington-Vos summarized several proposed changes to the Disposal and Donation Policies, which are exhibits of the Purchasing Manual. Chairman George Alpogianis requested to table this until the next meeting to give the Committee more time to review the changes. A motion was made by Jack Drexler, seconded by Al Weel, to table until the November Finance Committee meeting. On roll call, all concurred. Health Insurance Updates Finance Director Kent Oliven updated the Committee on where staff is at in the health insurance renewal process. He stated there are two changes being considered. The possible changes include moving the policies to begin with the calendar year starting in 2022 and replacing the higher deductible health care plan to a formal High Deductible Healthcare Plan (HDHP) that qualifies for offering a Health Savings Account (HSA). Staff will continue to review these possible changes. There is no action required from the Finance Committee at this time.  Finance Committee Water Shutoff Process Update Finance Director Kent Oliven notified the Committee that water shut-offs will be resuming. He stated the Village has not done any shut-offs in over a year and outstanding balances have continued to grow during that time. Mr. Oliven also stated that, due to the pandemic, the shut-offs will not be full water shut-offs but Tickle-Down shut-offs while the pandemic lasts. Public works will lower the water pressure to a trickle to allow residents to wash their hands with soap and water to help prevent the spread of the virus. There is no action required from the Finance Committee at this time. FY20 Audit Discussion Finance Director Kent Oliven gave a status update on the FY20. He stated that we are behind due to several reasons including being closed due to the pandemic, the resignation of the former Finance Director, and virtual fieldwork from the audit firm. Mr. Oliven stated that the audit firm has not yet delivered a draft audit to staff to review.. Staff is hoping to have the partner from Selden Fox at an upcoming Finance Committee meeting to address any questions related to the audit process or the audit document. Mr. Oliven stated the Village has filed for a sixty (60) day extension on filing the audit with the Illinois Office of the Comptroller. There is no action required from the Finance Committee at this time. Other Business Small Business Loan Program Update Director of Economic Development John Melaniphy gave an update on the Small Business Loan Program. He stated the Village has received seven applications so far. Finance Director Kent Oliven is working with the Bank to open the accounts and process the applications. The Village has not distributed funds to the restaurants at this time. Public Comments None Executive Session None Adjournment A motion to adjourn was made at 11:35 am and all concurred. Prepared by Joy Athanasiou on October 28, 2020