E-Help 2/29/2008

INCLUDES:
1.  Build Electricity Purchasing Program (Gurnee)
2.  Budget Descriptions and Breakdowns (Forsyth)
3.  Pension effect when your community population exceeds 5,000 (Cortland)
4.  Police Pension Property Tax Distribution
5.  Pension Beneficiary Payments (Yorkville)
6.  Merchant Processing Fees drop to 45 cents
7.  IMTA Board Of Director’s Application form

“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
www.publictreasuryinstitute.com/bookshop/catalog.do

1.  BUILD ELECTRICITY PURCHASING PROGRAM

The Village of Gurnee is currently in NIMEC, and will soon be going to bid again for electrical supplier (pumping stations, etc.).  Has anybody joined the State of Illinois Build Electricity Purchasing Program jointly run by the Illinois Department of Central Management Services and the Energy Resources Center (ERC) at the University of Illinois?  Please share your thoughts.  Thanks! 

Tina Smigielski
Director of Finance
Village of Gurnee
tinas@village.gurnee.il.us

2.  BUDGET DESCRIPTIONS & BREAK DOWNS
Does any Village or City have description break down for ALL General Ledger line items within the budget?

An example: You may have a general ledger number for utilities with in the various departments. Do you have in your budget

        Administrative Department:

        Utilities $22,000: Description Village Hall Office $12,000 for electric and $10,000 for gas. Justification, with the utility company increasing our rates                       this line item increased by 3% this budget year.

        Park Department:

Utilities $35,000: Description Bike trail lighting $20,000, Pavilions $10,000   and Tennis Courts $5,000 for electric only. Justification, with the utility company increasing rates and the Village adding new Bike trail lighting our line item increased by 5% this budget year.

        So on and so on for every line item within the budget.

        It has only been suggested at this time that we start doing this. So I wanted to see just how many other Village or Cities have there budgets set up this way.

Rhonda L. Stewart
Forsyth Village Treasurer
E-mail: rstewart@forsythvillage.us

3.  PENSION EFFECT WHEN YOUR POPULATION EXCEEDS 5,000

The Town of Cortland has about a population just over 4,000 now, and we are growing.  We expect to pass the 5,000 mark in the 2010 census.  At that point, we will be required to have a Police & Fire Pension Commission.  Can someone give me a brief description of what this change will entail financially?  We have IMRF now; will the police personnel be covered under a different pension system?  Will the employee and employer contributions be higher?  Should we set aside money ahead of time to fund the new pensions?  Will there be other costs to the Town?

Thanks for your assistance.
Susan Dockus, Treasurer
Town of Cortland
815/756-9041
treasurer@cortlandil.org

4.  POLICE PENSION PROPERTY TAX DISTRIBUTION

As you may know, effective 8/28/2007 Public Act 95-530 was passed.

Synopsis
Amends the Downstate Police Article of the Illinois Pension Code. Provides that the annual property tax levied for pension purposes shall be forwarded directly to the treasurer of the board within 30 business days after receipt by the county. Effective immediately.

Although the language might seem quite clear that the “county” treasurer would forward the taxes to the “pension” treasurer within 30 days, not every County Treasurer interprets the language as stated above.  Lake Co reports that the state’s attorney’s office interprets the language to read, the “municipal” treasurer has 30 days after receiving the taxes from the “county” treasurer to forward the funds to the “pension” treasurer.   As a side note, Lake Co will forward or direct deposit the money into the police pension bank account only if the local treasurer signs an authorization document.  The end result is the same, but the burden is left with local treasurer to make the request and provide update approvals each year.

The bottom line is that we have 102 county treasurers that don’t fully agree with how to interpret the law.  Editor’s side note, this law for the police pension is verbatim to the fire pensions law that was passed several years ago, but who am I to claim that I know anything about the law.  J

For the good news, Brad Bettenhausen of Tinley Park contacted the treasurer’s office for both Cook and Will County and these two counties have set up the police pension fund as a separate entity to insure direct payment to the police pension accounts.  Great job Brad!!!

Brad’s email to me:
Just spoke with a contact in Will Co treasurer’s office and they will be sending out paperwork/forms to set up the ACH distribution of Police Pension levy dollars within the next month or so – prior to the final determination of tax rates and preparation of tax bills.  (Will Co mails bills end of April, with a +/- June 1 Sept 1 due dates for the two equal installments).

Cook Co already sent me the paperwork to set up the ACH direct deposit for the new agency number they assigned for Police Pension.  Cook Co First installment is always due March 1 and is always ½ of prior year tax.  Based on our 2007 levy filing, they have already made adjustment for the distribution percentage allocation between Village and Pension and we received our first distribution of 2007 taxes on 20 Feb with Pension receiving a percentage directly.

So, in short, the program to effect PA 95-530 is fully engaged to proceed in my two counties.

Brad L. Bettenhausen
Treasurer/Finance Director


5.  PENSION BENEFICIARY PAYMENTS

I am looking for any procedures or examples that deal with tax issues for Police Pension fund early distributions and actual pension payments. Form 1099-R and 4972 may apply.

Thanks in advance, 
Bill Powell: United City of Yorkville  
wpnkp81@sbcglobal.net

6.  MERCHANT PROCESSING FEES DROP

As you probably know, if your merchant ID is used for the purposes of collecting utility bills only, you are eligible to receive discounted charges.  Your municipality can pay 75 cents flat for VISA and Mastercard to your merchant processor versus approx 2.5% of the total sale.

Today, I spoke with IMTA Associate member Barry Anderson of Harris Computers (aka Municipal Software Inc) and Barry reports that Visa/ Master card have announced effective 4/15 this fee will be reduced to 45 cents per transaction.  Your merchant processor should reduce this portion of your fee accordingly.  I would recommend that you contact your merchant processor to verify the price change.

7.  IMTA BOARD OF DIRECTORS

The IMTA Nominating Committee is accepting applications for IMTA Board of Director positions.  The application can be found on the IMTA homepage or by clicking
http://www.imtausa.org/BoardApp.doc

Please return applications by June 1, 2008 to:
Michael Peterson, Nominating Committee Chair
10 South Seymour Ave
Grayslake IL 60030
mpeterson@villageofgrayslake.com

Nominating Committee:
Brad Bettenhausen, Tinley Park
Bonnie Drew, Springfield
Judy Miller, Zion