E-Help 10/09/2006
INCLUDES:
“Thanks
again to everyone that has contributed information in the past. If you have
questions, please feel free to send me your request. If you are responding to a
request, please send your response to the requester and include me as a “cc”.
Thanks again!”
Michael Peterson
mpeterson@villageofgrayslake.com
www.imtausa.org
www.aptusc.org
IML Treasurer’s Session speaker contact information
remote deposit SERVICE & MANAGING ACH fraud
Dan Schuette,
Corporate Banking Treasury Management, Associated Bank & Trust
daniel.schuette@associatedbank.com
IDENTITY THEFT & CHECK FRAUD
Shawn Christian,
VP & Regional Sales Manager, U.S. Bank
shawn.christian@usbank.com
MICROSOFT’S FUTURE IN LOCAL
GOVERNMENT
Zulna Heriscar, Business Productivity Advisor
zulnah@microsoft.com
Microsoft Licensing Support
If you have questions about
your entities Microsoft licensing or would like recommendations concerning which
licensing package would be best for your entity, please contact Wade.
Wade Powell, Account Executive
State and Local Government
wadep@microsoft.com
Microsoft “Wish List”
Did you ever have an idea that would improve the Microsoft software? Microsoft accepts suggestions (“wishes”) at mswish@microsoft.com
Confidential Employee for Sales Tax
Has your municipality
designated a confidential employee with the Dept of Revenue? What kind of
information do you receive? Is it sent via mail or can you look up information
on-line?
Michael Peterson
mpeterson@villageofgrayslake.com
$100,000 FDIC Coverage for Pension Funds
FDIC: Deposit Insurance - Deposit Insurance: An Annotated
...
...
individuals is applied on a per participant basis when a
pension fund is
...
www.fdic.gov/deposit/deposits/international/bibliography/1999/general.html
This report explains the
economics of deposit insurance, summarizes laws and proposals for change, and
provides a side-by-side comparison of the provisions that affect pension plans.
Under 1991 law, the $100,000 insurance limit for individuals is applied on a per
participant basis when a pension fund is involved.
Murphy, M. Maureen, Thomas Woodward, and Ray Schmitt. 1991. Federal Deposit
Insurance Corporation (FDIC) Pass-Through Insurance for Pension Plans. Report
for Congress (May 8), no. 91-411 EPW. Congressional Research Service.
Deposit insurance coverage cannot be increased by dividing funds among several putative official custodians who lack plenary authority over such funds. Likewise, coverage cannot be increased by dividing funds among several accounts controlled by the same official custodian for the same public unit.
The relevant section of the FDIC's deposit insurance regulations can be found at: 12 C.F.R. 330.15.
If you have questions or comments about the insurance coverage of public unit accounts, contact the Federal Deposit Insurance Corporation by telephone at 1-877-ASK-FDIC or by mail at 550 17th Street, NW, Washington, DC 20429.
Public Education Government Channel
For those of you that have a
PEG (Public Education Government) channel:
What's your budget?
Do you produce original programming?
If so, is it produced in-house or contracted out?
Who do I contact for more info?
Thanks,
Tina Morris Smigielski, C.P.A.
Director of Finance
Village of Gurnee
tinas@village.gurnee.il.us
IL Property Tax Rate and Levy Manual
download a copy of the “Illinois Property Tax Rate and Levy Manual” and the “Municipal Finance Series” manual from Dept of Commerce & Economic Opportunity
www.illinoisbiz.biz/dceo/Bureaus/Community_Development/Local+Government+Assistance/
TREASURER’S
INSTITUTE
Nov 12-16 at Holiday Inn,
Urbana (217.328.7900)
Watch for the registration form in the mail and on the website in the next two
weeks.
The IMTI brochure is online at http://www.eiu.edu/~adulted/noncredit/06IMTIbrochure.pdf
FINANCIAL ADVISOR & BOND COUNSEL RECOMMENDATIONS
The City of Lockport is doing a bond issuance for road improvements. We are looking at a $10.0 million and a $20.0 million issuance. If you have completed a new bond issue in the past few years, I would like your comments about the Financial Advisor and Bond Counsel that you selected.
Financial Advisor name, city, phone number:
Would you recommend them? Did they meet your expectations? Were the fees reasonable? Other comments…
Bond Counsel name, city, phone number:
Would you recommend them? Did they meet your expectations? Were the fees reasonable? Other comments…
I really appreciate your
assistance. I sure hope to see you all soon.
Janice E. Colvin
Finance Director
City of Lockport
jcolvin@lockport.org
RESPONSE
The City of Highland has completed two bond issues in the past two years and is working on the third one as we speak.
For the first bond issue, we used Stifel, Nicolaus as the Financial Advisor. The total cost of issuance was 1.99%.
The last two times, I’ve used Joy Howard from WM Financial Strategies and the total cost of issuance was .74%. On a $10,000,000 issue, that could amount to a difference of $125,000.
I was very pleased with Joy’s help. She was easy to use, explained things I didn’t understand, etc. I’ve attached her contact card information.
Both times, I’ve used Kurt Froehlich for Bond Counsel and was happy with that. Most of the contact with Kurt goes through the financial advisor.
Sharon Rusteberg
Highland IL
Northfield
I think it is important to hire an independent financial advisor – someone who is working for the City’s interest and not for the interest of the purchasers of the bonds (i.e. underwriters, financial institutions, etc.). Banks and underwriters will tell you it is cheaper to negotiate a bond interest and in fact, their costs /risks may be lower on a negotiated sale. What often is higher on a negotiated sale is the interest rate the City will pay over the life of the bonds. A competitively bid bond issue, overseen by an independent financial advisor, will insure the City is getting the lowest possible rates on the bonds.
I have used Crowe Chizek in the past as an FA (John Miller 312-899-8413) and prefer them (In the interest of full disclosure, I used to work for Crowe as an FA). Speer Financial, a very large and successful FA is out there but I find them slightly “over extended” and their product somewhat boilerplate and standardized. Ehlers, another national firm, is similar to Speer.
I would only recommend two bond counsels: Katten Muchin (Lewis Greenbaum 312-902-5418) or Chapman and Cutler (Kelly Kost 312-845-3875). Both do a great job but Katten Muchin is generally less expensive and provides a more personalized service.
You will get many calls from banks and underwriters who will say they can act as FA and save you the fee. All I can say is their efforts are in selling the bonds and not necessarily getting the best price and structure (call features, maturity dates, etc.) for the City.
I would be happy talking more with you about this if you have any questions.
Steve Noble
snoble@northfieldil.org
FINANCE DIRECTOR JOB DESCRIPTION
Our municipality is interested in creating a new position to be called Finance Director. This would cover bookkeeping, general ledger, budget, etc. We are trying to create a job description for this position. I wonder if other municipalities would care to share the job descriptions they have with us. Thanks for your help.
Dennis Thiel
Paris, IL
dennis@thielaccounting.com
RESPONSE –
JOB TITLE:
DIRECTOR OF FINANCE
DEPARTMENT: GENERAL ADMINISTRATION
JOB SUMMARY:
Responsible for directing the municipal financial and accounting operations. Ensures the proper recording of financial transactions, the investment and protection of municipal funds, and the preparation of financial statements and reports. Performs accounting functions for municipal bank accounts, taxes, payroll, purchasing. Prepares annual municipal budget and coordinates data processing operations. Administers the front office operations.
ESSENTIAL JOB DUTIES AND RESPONSIBILITIES:
Administers municipal financial and accounting operations. Prepares, reviews, and presents municipal Financial Statements, Detailed Budget, Revenue Reports, Cash Receipts and Disbursements, Monthly Electric and Water Reports, Sales Tax and State Income Taxes, Property and Replacement Taxes. Reviews transactions and corrects errors in entries. Attends City Council meetings to present financial backup as needed.
Performs accounting functions for municipal bank accounts (reconciles, monitors pledged securities levels, etc.); municipal taxes (monitors securities coverage); taxes (receipts and records taxes, maintains tax history files, monitors receipts and collection share); payroll (prepares labor distribution costs, quarterly payroll tax reports, prepares/reconciles W-2s, does payroll in the absence of the Director of Personnel).
Invests and secures surplus city funds for safe and remunerative returns. Maintains bank securities to safeguard investments above FDIC limits. Acquires interest rate and terms from financial sources within desired level of liquidity, terms, maturity dates, and optimal yields. Invests funds promptly and ensures compliance with related State Statutes and regulations governing municipal finance.
Directs front office administrative operations, providing overall supervision and direction. Oversees office equipment maintenance at City Hall. Backup for balancing daily cash receipts.
Coordinates municipal data processing operations. Supervises RPG programmer (contractor) in the development, maintenance, and repair of the computer system and its hardware and software applications.
Completes utility surveys, and prepares other governmental reports. Responds to public inquiries on municipal financial practices and regulations.
Serves as Deputy Treasurer for the Cemetery Board of Managers. Manages cemetery fund financial (investments) and accounting operations with Illinois Compiled Statutes. Prepares quarterly and annual financial statements. Attends all Cemetery Board of Managers meetings.
Serves as Deputy Treasurer for the Police Pension Board. Manages fund financial (investments) and accounting operations and prepares employee pension records. Prepares quarterly and annual financial statement. Attends all Police Pension Board meetings.
Coordinates Five Year Capital Improvement Plan (CIP). Reviews capital requests and prepares General Administration requests. Prepares CIP booklet for City Manager and City Council review.
Prepares Operating and Maintenance Budget for review and approval by City Council. Projects revenues and financing outcomes, reviews expenditure requests, prepares projections for General Administration and miscellaneous funds (e.g. bond funds, insurance, retirement, equipment replacement, etc.) Enters all revenue and expenses into computer and prepares budget summary. Prepares revenue histories.
Prepares tax levy within State Statutes; analyzes revenue needs of each fund, projects assessed valuation, calculates tax rates within State limitations, prepares tax levy ordinance and presents for City Council review and approval. Prepares tax for several ambulance districts. Presents Ambulance Fund financial reports to ambulance districts at meetings.
Assists external auditors by reconciling all interest, payroll, and revenue sources and preparing numerous financial spreadsheets showing trends. Reviews draft audit and auditors' comments. Generally ensures that audit materials and overall audit are in proper order.
Prepares special reports and compiles information for specific needs as requested by City Council, City Manager, or other municipal departments. Prepares financial data for bond issues, assists in obtaining bond rating, and coordinates bond issue with advisory group. Analyzes utility rates and other user fees and prepares recommendations/ordinances on adjustments to fees.
Performs other duties and functions as required or assigned within area of expertise or scope of position.
SUPERVISION RECEIVED:
This position reports directly to the City Manager.
MINIMUM QUALIFICATIONS:
Bachelor's degree in Business Administration, Finance or Accounting with seven
years related work experience in municipal finance and accounting.
KNOWLEDGE, SKILLS, AND
ABILITIES
Knowledge of standard financial and accounting theories, principles, and
practices within municipal and State statutory regulations. Knowledge of and
ability to operate computer systems, (hardware and software), ten-key
calculator, various office equipment. Interpersonal and communication skills.
Sharon
Rusteberg
Director of Finance
City of Highland Illinois