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HomeMy WebLinkAbout09/25/2012 COW Minutesr COMMITTEE OF THE WHOLE MINUTES September 25, 2012 IV CALL TO ORDER — ROLL CALL The meeting was called to order at 7:05 p.m. in the Village Board Room of the Village Hall, 50 South Emerson Street, by Mayor Irvana Wilks. Trustees present included Paul Hoefert, John Korn, Arlene Juracek, John Matuszak, Steven Polit, and Michael Zadel. Staff present included Village Manager Michael Janonis, Finance Director David Erb, and Administrative Intern Alexander Bertolucci. APPROVAL OF COMMITTEE OF THE WHOLE MINUTES FOR SEPTEMBER 11, 2012 Motion made by Trustee Polit seconded by Trustee Hoefert. Minutes were approved. CITIZENS TO BE HEARD None AMENDMENTS TO CHAPTER 5 OF THE VILLAGE CODE - AUDIT COMMITTEE - Creation and Purpose: the purpose of the committee will be to focus on assessing compliance with existing policies, procedures and the adequacy of internal controls. Finance Director David Erb presented the amendments to Chapter 5 of the Village Code with respect to the governance and administration of the Audit Committee. Material changes appear in the purpose and membership sections of the code along with the process for selecting the committee chair. - Membership: The Finance Director will become an ex- officio member and will be replaced on the committee by a second member of the board of trustees. Also the chair will now be selected by all members of the committee. Audit Committee Chair Tom Munz commended the Board on their foresight to establish the Village's Audit Committee. Also, he stated the proposed amendments provide the committee an expanded advisory role for internal controls. General comments from the Village Board members included the following items: - Questions regarding the scope and duty of the committee. - Discussion about audit firms with the concern that some firms becoming complacent on standards. Consensus of the Village Board was to move forward with the amendments as proposed. Committee of the Whole Page 1 of 3 09/25/12 V. COMPREHENSIVE ANNUAL FINANCIAL REPORT — DECEMBER 31, 2011 Finance Director David Erb provided an overview of the Comprehensive Annual Financial Report for the fiscal year ending December 31, 2011. Lauterbach & Amen performed the audit on the Village's financials. The auditor's examination found the Village's financial statements to be fairly presented and prepared in accordance with generally accepted accounting principles. The audit did report the following minor deficiencies: - Compliance with the Fund Balance Policy. The Village's Special Revenue and Capital Improvement Funds did not meet the 25% fund balance requirement. Staff will review the Fund Balance Policy and address these funds specifically since not all funds can be treated equally. - Compliance with the Investment Policies. The Village exceeds the requirement that limits the amount cash in one bank. This is due to the limited amount of available and credible options for short term investments. Staff will monitor short term investments more frequency and will continue to look for alternative investments. - The audit committee reported one significant deficiency in the area of fixed assets but the issue was related to timing. The reports were finalized after the auditor completed their field reports. Audit Committee Chair Tom Munz stated it is difficult to maintain a fund balance of 25% with the smaller funds. He also noted that there were only three (3) audit adjustments for 2011. The committee is very pleased with the condition of the Village's finances. General comments from the Village Board members included the following items: - The Village may fall below the required fund levels but should also be proactive in managing these policies. - Questions regarding Fund Balance targets and if the current targets will be maintained or changed. Consensus of the Village Board was to accept the Comprehensive Annual Financial Report and accompanying communications for the fiscal year ended December 31, 2011. VI. AMENDMENTS TO CHAPTER 9 AND 19, AND APPENDIX A OF THE VILLAGE CODE FOR WATER AND SOLID WASTE COLLECTION Finance Director David Erb presented the proposed amendments to the Village Code that are required for implementing a monthly billing cycle for the water and refuse bills. The Enterprise Resource Planning (ERP) software has afforded the Village the opportunity to adopt monthly billing. The recommended amendments will provide the following benefits: - Bill consistency with other utility bills. - Identify and respond to issues sooner (i.e. water leaks, miss reads) - Shortens the period of time of delinquency from 90 to 60 days. - Another step toward the Automatic Meter Reading (AMR) System - Reduces the multi - family late fee rate by 10 %. Committee of the Whole Page 2 of 3 09/25/12 Staff will continue to work with residents regarding delinquent bills and still offer the administrative discount to the Multi - Family Units who pay early. If approved, the monthly billing cycle will go into effect in October and adjustments may be required after the break in period. General comments from the Village Board members included the following items: - The Multi - Family Units early payment discounts provide opportunity for better management. - Allows the Village to match the billing cycle of JAWA and will improve the Village's cash flow. - Questions regarding the ERP software system and its capabilities of direct debt and automatic payments. - Discussion and questions as to the Village's procedure with handling delinquent bills, water shut -off notices and finding and repairing leaks within the system. Consensus of the Village Board was to support the staff recommendations for the amendments to the Village Code to allow changes regarding water and solid waste billing. VII. MANAGER'S REPORT None VIII. ANY OTHER BUSINESS Trustee Steve Polit stated the Downtown Merchants Association weekly car show will hold this year's final event on September 29, 2012. He also thanked all the participants for making these events successful. IX. ADJOURNMENT The meeting adjourned at 8:10 p.m. Alexander Bertolucci Administrative Intern Committee of the Whole Page 3 of 3 09/25/12