Village of Mantua
Finance Committee Meeting
August 12, 2010

Call to Order - 6:30 P.M.

Roll Call: Ben Prescott, Linda Clark, Roger Hawkins

Others: Clerk-Treasurer Jenny August, Mayor Donna Hawkins

Citizens: Norm Erickson

Minutes:

No discussion.

Motion to approve the Minutes from the July meeting by Linda Clark, seconded by Ben.

Financial Reports:

Jenny gave the Financial reports. Larry Kaczmarek called today and it is time for our renewal. We can expect a 13% increase, but there are a few other options such as an HRA. Jenny said Larry told her that in 2014, rates can go up as much as 300% because of the new Health care reform. He has offered to come to our Council meeting if we would like him to. Ben said he should be invited.

The Fund status at the end of July was $309,298. Revenues were $90,132. Expenses including payroll totaled $115,800. There were no fund adjustments. Water and Sewer reconciled exactly, as did Income Tax. The bank reconciliation went through with no adjusting factors.

Legislation:

  1. 2010-16 American Legion contract for Park Lodge- this is still tabled until reviewed by the Parks Board.

  2. 2010-24 Personnel handbook. Harry had one last change that he wants Council to approve on the third reading. We need to change the name of our Workers Compensation Insurance Provider and third party Administrator from Gates McDonald to CompManagement and Sheaklee.

  3. 2010-35 Amending resolutions 2010-17 and 2010-23 to secure monies designated for the wastewater pump repair and/or replacement. Moving the money to Capital Reserve.

  4. 2010-36 Certify the amounts and rates by the County Budget Commission.

  5. 2010-37 Wastewater Flow Agreement with the County.

Bills of Resolution:

  1. Jenny wanted to mention that we will be making our third payment to Clemens this month. This will leave a final balance for next year of $4,000. There are also three large income tax refunds to companies that overestimate their quarterly payments. The total is about $5,000. Ben asked if we could just set those quarterly payments aside in case we have to refund. Jenny said those payments are what the General Fund runs on all year. The tax forms are set up for quarterly estimated payments.

  2. Linda asked about line 95. Two yard hydrants for the Park. She saw the purchase requisition and it said half of the cost is to be billed to the Potato Festival. Why are we asking the Potato Festival to pay just because they use it? Ben said he thought they had offered. Jenny said it was charged on the Village account, so we are paying it, and then the Potato Festival could pay us as a donation.

  3. Linda thanked Jenny for adding a line for overtime wages on the bills list. Jenny said we will also break out the insurance as well.

Motion to recommend the Bills of Resolution to Council by Ben, seconded by Roger. All ayes on vote.

Other Discussion:

Utilities for the Potato Festival and American Legion buildings.

Jenny said it was discussed at Council that we should look into this. Roger said he did some research and found out that the 20 year lease with the Potato Festival, number 3, states that the Potato Festival will pay electric, gas and utilities and maintenance for the building. For the past 24 months electric bills on the Pump House (Potato Festival Building) the Village has paid $1,531. If you divide that by 20, it is $61 per month. If you multiply that by the 7 years that they have been there, we have paid $5,187 that the Potato Festival should have paid. Projecting forward for the next 13 years of their lease, it comes to $9,555 a total of $14,000. That is $9,000 on a soft savings. And if we had the reimbursement for the $5,187 it would be a hard savings. If the Auditor’s see this, we should be getting reimbursed. Also, Roger thinks the utilities should be put in their name. Ben said we should have Michele look into all this. Roger said gas bills are $3,453 for the past 24 months. The contract is very clear. He doesn’t see how we can legally be paying this without getting dinged by the Auditors.

Roger explained the three phase meter as opposed to a single phase meter. At the end of the day, the usage is going to be the same. Ben did not agree. Donna said it is a moot point because according to the contract, it is up to the Potato Festival to pay the cost of switching meters. Linda said, at that point we should talk about it further. Linda said off the top of her head without really thinking about it, she would like to have them pay going forward, and not try to collect back amounts. She said the electric bill has dropped since the Lions booth was disconnected from them, so the old bills reflect usage from the Lions as well. As far as the American Legion, they have a separate electric meter. Donna said Michele and Marty will meet with the Parks Committee, and make some decisions.

Cemetery Expenses

Ben asked if we would like to recommend to Council to hire Daly Monument to fix the crypt. Jenny said yes, we need Council to authorize it being sent to Kevin Poland for the trust to pay. Ed recommends Daly monument for the job as well. Jenny said Lisa Zamecnik also would like to have the railroad ties by the mausoleum removed, and the dirt graded, and topsoil added. She is getting estimates for that as well. Ben said we need to talk to Michele about looking into our Stock Certificates and Kevin Poland continuing as Trustee. Linda thought he would have to remain as Trustee until he locates the missing certificates. Norm commented that the law has changed. In some cases where you see these Magistrates sitting in for some of the Judges, are no longer going to be sitting on Boards pertaining to County business or Municipality business. We may see someone resign from the Airport Authority Board and some others, because the laws have changed.

Appropriation Worksheet

Linda said that she is looking over the bills for 9 months, and doesn’t understand why we are just charging everything to a general “operating” line. She had a sample of how she feels we could try setting up line items in our appropriations for the Department Heads to break down. She felt it would be time consuming at first, but once we broke it down, it would make budgeting more thorough. Donna thought that with our man hour shortage, she didn’t think it could be kept up to date. She thought it might not be practical at this time. Linda thought maybe Jenny could break it down to line items, and then let the Department Heads tweak it. Linda thought it would be better for tracking purposes. Ben agreed and felt we should do it.

Overtime

Jenny made a spreadsheet showing overtime earned by each employee since 2007. Ben said if we hire more part time employees, it would eliminate some overtime. Jenny said she thought Tom hadn’t had a day off for months. Donna said we will work on this. Linda asked about us having two officers on duty during the day. Can we find a way to stagger it so Harry still has Administrative Days, yet we still have coverage on some nights? Jenny asked what our Community Service workers are doing. Can we put them in the Cemetery? We need to find a way to earn money for the Cemetery Fund. Donna said maybe the Cemetery Board might be able to come up with a way.

Citizens:

Norm asked if the pump is ordered. Linda said it is ordered and scheduled to arrive for installation on August 20th. Jenny said Ed called today and said we are having a problem at the sewer plant. He said he would need about $3,200 for the fix.

Motion to adjourn at 7:21 P.M. by Roger, seconded by Linda. All ayes on vote.

___________________________
Ben Prescott, Chair of Finance

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Jenny August, Clerk-Treasurer