z - Retired - Finance Committee

Draft ­ approved 1­5­2017 Finance Committee Meeting Minutes ­ December 8, 2016 Westmont Village Hall Call to Order: 4:00 pm ‐ Trustee Guzzo Pledge of Allegiance Roll Call: Committee Staff Trustee Guzzo (Chair) Director Parker Trustee Liddle Manager May Trustee Addington (4:11) Chief Gunther Trustee Nero (4:25) Director Ziegler Trustee Barry Larry McIntyre Trustee Barker Dave Weiss Mayor Gunter Clerk Szymski Visitors None Minutes approved: The November 10, 2016 Mee ng Minutes were approved by a mo on from Trustee Liddle and a second by Trustee Barker, all ayes. UNFINISHED BUSINESS: Director Parker began the mee ng presen ng objec ves of the reviewed topics: Cigarette Tax update: Director Parker started the discussion by saying we are s ll in the same spot we were at the last mee ng about the Cigare e Tax. The other en ty that thinks we can not use the tax is trying to find the prior research they did on the Cigare e Tax. We will give the en ty more me to find the research and we will touch base with them later. NEW BUSINESS: Director Parker presented objec ves of the agenda topics: Property Tax Levy: The property tax levy is set for approval at tonight’s board mee ng. The police pension fund is going up by $200,000.00 based on pension requirements. Part of that is because we have actuaries who are re‐adjus ng their tables on a more regular basis. In the past, there were smaller increases each year. Now, the increases are larger every couple years because the actuaries are looking at mortality tables more o en. We are glad our actuaries are looking at these tables more o en. However, the result is that it raises our police pension fund every couple years. As a result of the police pension increase, our general fund is down about $280,000.00. That means the amount of money that will be coming into the general fund from property tax is about $280,000.00 less than last year. About $180,000.00 of that is because in the past few years we were pu軀�ng a li le more money into the general fund, and a li le less into the Social Security, Medicare, and IMRF funds because they had a surplus. The surplus is exhausted now, so the money is going back to the Social Security, Medicare, and IMRF Funds.When we had that extra money in the general fund, we set other money aside in the general fund because, we did not want to get used to spending that $180,000.00. Therefore, we have about $100,000.00 in net real reduc on in the general fund. As we go into budget me this year, we are already seeing a reduc on of about $100,000.00 . The next step is to file the property tax levy with the county. Then in March, the county will give us figures that will let us know the property tax rate. At that me, the board will will decide if they want to hold a special mee ng ro look at reducing the money we are levying. In previous years the board has not decided to hold a special mee ng to look at reducing the money. Director Parker asked if it safe to assume we do not want to look at an even bigger reduc on, since we are already looking at a $100,000.00 reduc on. Mayor Gunter said these are all capped funds and that is why need to stay within that cap. Mayor Gunter added that our increase in revenue probably will not even be 2%, it is new growth and it was not a lot, it is minimal. Director Parker agreed it will be about 2%. Trustee Barker asked Director Parker if the $280,000.00 reduc on is expected for next year and only based on the tax levy. Director Parker replied yes, the reduc on is expected for next year. Debt Abatement: Director Parker said the debt abatement relates to our 2013 bonds that were done as alternate revenue bonds. We told people who bought the bonds that we have a plan for how we are going to pay the debt service. We told them we have other revenue, and commi ed places for ea ng tax, motor fuel tax and u lity tax. We told them this should be enough money to cover the debt repayment, but in case it was do not, the cost for repayment will go on the property tax. Every year we need to tell the county, we have enough money, so they do not put it on the property tax. That is what this is doing, because we have enough money in the commi ed revenues to cover the debt payment, we do not need to have it put on the property tax. Report on Credit Cards and Purchasing Cards Policy: Since 2007, the policy on purchasing cards stated only finance department employees can use credit cards and only if they cannot write a check. To update the policy we need to allow other employees outside the finance department to use credit cards. The credit cards would be monitored and reviewed by two employees in the finance department, supervisors and Manager May. The policy will also state as circumstances change, this policy can be discussed by the finance commi ee, and updated by staff. Mayor Gunter asked if the credit cards can have a limit placed on them. Director Parker replied yes, a limit can be placed on the cards depending on the employee. Trustee Guzzo stated that checks and cash are a thing of the past; this is a good way to bring us up to date. Manager May added that credit cards are required in many cases, such as on‐line registra ons, etc. Travel and expense policy: Director Parker said this policy is being required by state statute and we want to make sure we have limits in the travel and expense policy. One change is that there is now a maximum of $3,000.00. If anyone needs more than $3,000.00 for travel and expense, it would have to come before the board for separate approval. Another change is that if an employee wants to be reimbursed for travel before they go, they have to submit a form for pre‐approval. An addi on to the policy is in regards to airfare. Airfare will be covered only if required by the employee’s job and the employee is directed to a end. Another addi on is that if an employee travels from their home directly to an event, the shorter mileage from the employee’s home to an event, or the Village Hall to the event will be reimbursed. Also listed in the policy will be a change to board expenses. The Chamber’s Winter Event will not be included in the board expense account. Overnight stays for elected officials will not be covered, unless the event is part of something for which the Village is a member and the loca on of the event is a long distance away. The overnight stay requirements will also be listed in the policy. Mayor Gunter added that we are upda ng the policy because it is required, not because there is an issue with it. Manager May added that we are making the policy 100% compliant with the state of Illinois. Budget meeting dates: We are looking at budget workshop dates between April 3rd and April 8th 2017. Mayor Gunter asked if those dates are an off week for board mee ngs. Director Parker said, yes it is not a board mee ng week. REPORTS: Director Parker presented on the following topics: Water meter factoring issue: The finance department recently discovered that based on the type of water meter, some read a number of 1, 10 or 100 gallons and then our computer mul plies it by 1, 10 or 100. We found some accounts by accident that are not being mul plied correctly. Some of the accounts are being billed only 10% of what they should be charged because of the errors. One of the accounts totals about $27,000.00. We are conduc ng a water loss audit and realizing these accounts play a part of the loss iden fied in the audit. Finance is looking into more accounts that may have been affected by these errors. Director Parker asked the board how do we handle past years bills that were incorrect. He indicated we had the op on to have them pay all of the balance, have them pay our cost, or to pay nothing. He also indicated that we could consider a payment plan. Manager May added that when we first found out about this, we realized this was our error. Trustee Liddle said she favors having them pay our cost of the water. We do not want residents to feel we are taking advantage of them. Manager May added that we have already bought all that water from the Water Commission. Guzzo added that we need to work with residents who have a large amount due on their bill. Mayor Gunter agreed they can pay our cost and to give them 2 years to pay it back if it took 2 years to get to this. We could give them up to a 24 months me frame to pay back. Manager May agreed to Mayor Gunter’s comment and added that if they close their account, they would have to pay it off then. Trustee Barker asked, when will we have all results of the complete scope of the problem. Director Parker said we are s ll looking into this and trying to find ways to get all the data. We do not have a specific date, we are hoping it will take only a few months, but it may take longer. Trustee Barker agrees to have them pay cost, but hardships may make it hard for them to pay it all back. Trustee Barker also said it is our mistake. Trustee Liddle asked if the accounts with the mistakes are residen al or commercial? Director Parker said the majority are commercial accounts. Director Parker said the accounts we have found, are fixed and the next bill they are going to get will be correct. Trustee Guzzo asked if Director Parker could give an update at the January 5th mee ng. Director Parker said yes, he will give an update at the next mee ng. Hotel Motel Grants: In the Finance ordinance there is a check made out to the Park District for Holly Days for $5,000.00. The board approved giving them a $5,000.00 Hotel/Motel grant. Trustee Addington gave an update on the Lyons Club Circus. He has check from the Lyons Club for the 100th anniversary commi ee for $1,650.00, which is half of their profits. Trustee Addington will present the check at tonight’s board mee ng. The next Finance mee ng will be January 5, 2017. Adjourn: 4:26 pm, mo on by Trustee Liddle and second by Trustee Addington, all ayes.