Finance Committee Minutes - Thursday, August 6, 2009
Commissioner Harney called the meeting to order at 4:12 p.m. Present were Commissioners Vanden Bosch and Harney. Also present were Director Schwarz and Treasurer Farmer.
Commissioner Harney asked Mr. Farmer why the “Request for Proposal for Commercial Banking Services” was being prepared at this time.
Mr. Farmer explained the Winnetka Park District has been banking at Harris Bank for over 20 years. The Park District has one money market sweep account, a main operating account in which four other checking accounts sweep on a daily basis, a few miscellaneous savings accounts and several short term CD’s. All of the monies at Harris Bank are collateralized by investment securities at 110% of the uninsured portion. Such collateral is held by a third party administrator in the Park Districts name.
Since inception, the banking relationship has been excellent. However, there isn’t a formal contract stating the services being performed by the bank or the charges for the services. Staff is unable to compare banking services with other banks.
Commissioner Vanden Bosch stated that as a retired Harris banker, he would have to abstain from the final selection but, he will provide assistance with the RFP process.
After a brief discussion, it was determined the RFP for Commercial Banking Services will be sent to all local banks with a bid return date of September 10, 2009. The finance committee will meet on September 15, 2009 to analyze the bids.
Prior to the bid return date, staff was also directed to develop the grading criteria for each RFP and email the criteria to each member of the Finance Committee. Once approved by the committee, this will be used to analyze the proposals on September 15, 2009.
The outline of the budget process, provided by staff, was reviewed.
Commissioner Harney inquired if the Strategic Plan was used in the budget process. Mr. Farmer stated the Strategic Plan, the prior year’s budget detail, the prior year’s financial long-range plan, prior year’s usage statistics, current year estimated increases/decreases from vendors and the “Basic Budget Assumptions” list (after Board approval) were used by staff to prepare the current year budget. The “Skokie Playfield Master Plan” will be incorporated into the budget process upon completion and approval by the Board.
Capital improvements were then discussed. Current year capital improvements come from prior year budget capitals which haven’t been completed, from capital improvements identified in the prior year’s long-range plan and any capital improvements added by staff or Board.
Commissioner Harney suggested “we have a budget milestone check-in with the Board on proposed 2010 capital improvements somewhere in the 25% to 33% percent process completion stage. Rationale being, a) capital improvements fairly clear and known (ex, Skokie Playfield), b) outlay’s are material, c) execution “may” effect operating budgets, and d) Board buy-in with staff would be useful earlier on in the process from a planning efficiency standpoint. As well, with four new Commissioners it would be helpful to reconcile what is being rolled into 2010 from prior year and what is new capital spending.”
Commissioner Vanden Bosch stated that a more proactive long-term approach in identifying capital improvements should be undertaken by the District. There should be more Board direction in the selection of capital improvements. The “Skokie Playfield Master Plan” is a start.
Staff was then instructed to condense the two page outline down to one page with bullet points for presentation to the Board.
Commissioner Harney inquired what topics should the Finance Committee meet to discuss and determine frequency of meeting.
Mr. Farmer stated that in the past, the Finance Committee would meet to discuss possible policy changes such as changing the fixed asset capitalization amount from $1,000 to $5,000 or the change in G & A allocation of expenditures from percentages based on dollar amount of direct expenditures for each department to a 50/50 blend of time spent by G & A staff on behalf each department and percentages of dollar amount of direct expenditures for each department. After review of each of the changes, the Finance Committee would make recommendations at the next scheduled Regular Board Meeting.
A general discussion ensued regarding the job description of the Finance Committee. Director Schwartz stated “a job description covering the Finance Committee as well as all the other Board Committees would be forthcoming after a discussion with President Pierce.” Commissioner Harney added “as a starting point, the finance Committee should take the lead on issues involving Sources and Uses of Funds without being redundant to other Committee’s.”
Commissioner Vanden Bosch as a general comment cautioned that Board Committees must be sensitive in not usurping responsibilities rightfully belonging to the Board.
After a brief discussion it was determined that the Finance Committee will continue to meet when needed, without a set schedule.
Commissioner Harney adjourned the meeting at 5:10 p.m.
