From the PresidentWhat a busy time of year as most of you are all knee deep into tax collection (as well as snow). This is one of the most wonderful times of the year and yet it comes and goes so quickly.

Our 32nd Annual Fall Conference was recently held at the beautiful Crystal Mountain Resort. Your evaluations reflected that you were pleased with the great education and information. The

weather cooperated too, which was very helpful. Thank you to the Fall Conference Committee and Tim Arends who worked hard to make it successful. The President’s Reception was held at

the hospitality lodge with Blinda Baker and her helpers planning and preparing the menu. We were honored by having the APT US&C President, Dana Kavander as our guest. Our annual meeting gained

us two new board members, Barb Fandell and Janice Zuhlke. It was also determined that the By-Laws will not be revised at this time. At the Awards Luncheon the Board presented 2010 Service Awards to Diane Giddens, City of Marquette and Russ Mollen, City of St. Clair. Congratulations to Joe Ferrari, the winner of our most prestigious PRIME Award. We ended the conference with Mary Jane Mapes. We were able to give her latest book, You Can Teach a P.I.G. To Sing as the 2010 Conference gift. Kim McKay, the 2011 Conference Chair, Tim Arends, the Fall Conference Coordinator and her committee are already busy making plans for the 33rd Annual MMTA Fall Conference at Mission Point, Mackinac Island.

2010 has been a busy year with conferences, education, and networking within the MMTA. It looks like 2011 will follow with more of the same. Your Education Chair, Annge Klinger, and her committee as well as Kim McKay and her PDC Committee have already met and are working on their conference agendas with help from Mary and Lew Bender, our MMTI Conference Coordinator and Facilitator. Matt Horning is working on setting up dates and times for the Legislation Committee meetings, Janice Zuhlke and her committee are busy with the December MMTA Connect Newsletter and Barb Fandell and her Membership Committee are planning new apparel and working on innovative ways to increase our membership. In order to bring pertinent education at a cost savings, Jan Steggerda and her committee are partnering with the MGFOA for a Spring Conference which will take the place of our annual Winter Workshop. See details later in this issue. Secretary Cheryl Rhein-O’Neill and Treasurer Mary Ann Kornexl are providing us with minutes and financials. Your 2010-2011 Board of Directors are rolling up their sleeves and are enthusiastic about meeting the education needs of this membership.

Our legislators were working into the early morning hours to bring us SB 77. The quote from the MTA sums it up, “This will create an administrative nightmare for treasurers

across the state”. If Governor Grandholm signs this bill, get ready for chaos.

Ca l e n da r o f ev e n t sImportant Dates to Remember

Ca l e n da r o f ev e n t sImportant Dates to Remember

t h e q u a r t e r l y n e w s l e t t e r

Connectm i c h i g a n m u n i c i p a l t r e a s u r e r s a s s o c i a t i o n

D e c e m b e r 2 0 1 0 w w w. m m t a - m i . o r g V o l u m e 5 8

Spring Workshop• James B Henry Center for Executive Development Lansing, MI March 25, 2011

MMTI Advanced• Comfort Inn Mount Pleasant, MI May11–13,2011

MMTI Basic• Comfort Inn Mount Pleasant, MI May16–20,2011

APT US&C Annual Conference• Oklahoma City, OK July24–27,2011

33rd

Annual Fall Conference • Mission Point Resort Mackinac Island OctOber2-5,2011

Continued on page 1.

2011 MMTA Board of Directors Meeting

January 21, 2011Wrought Iron grIll, oWosso

March 24, 2011JaMes B. henry center, lansIng

May 19, 2011coMfort Inn conference center, Mount Pleasant

July 22, 2011strategIc PlannIng sesssIonhoMe of leW & Mary Bender, leroy

sePteMBer 16, 2011Wrought Iron grIll, oWosso

PRESIDENTRose Dillon, CPFA, MiCPT

Fruitport TownshipPhone (231) 865-3151

PRESIDENT-ELECTKim McKay, CPFA, MiCPT

City of RockfordPhone (616) 825-5005

VICE PRESIDENTJan Steggerda, CPFA, MiCPT

Park TownshipPhone (616) 738-4236

TREASURERMary Ann Kornexl, CPFA, MiCPT

City of Mt. PleasantPhone (989) 779-5381

SECRETARYCheryl Rhein-O’Neill, CPFA, MiCPT

Oregon TownshipPhone (810) 664-5971 x1

DIRECTORSAnnge Klinger, CPFA, CMC, MiCPT

City of East TawasPhone (989) 362-6161

Matthew V. Horning, CPFA, CPFIM, MiCPTCity of Ann Arbor

Phone (734) 794-6541

Barbara Fandell, CPFA, MiCPTCity of Ithaca

Phone (989) 875-3200

Janice Zuhlke, CPFA, MiCPTCity of Imlay City

Phone (810) 724-2135

PARLIAMENTARIANSusanne McGee, CPFA, MiCPT

City of MontaguePhone (231) 893-1155

IMMEDIATE PAST PRESIDENTJanice Thelen, CPFA, MiCPTWatertown Charter Township

Phone (517) 626-6593 ext. 206

ASSOCIATE LIAISONSKatherine McDonald, Vice President

JP Morgan Asset ManagementPhone (616) 771-7860

Kim Goethe, First Vice PresidentFlagstar Bank

Phone (248) 312-5180

December 2010 page 1

The MMTA Board of Directors, with Annge Klinger leading the charge, has been developing a website that will be user friendly with information and materials including policies, RFP’s, legislative updates, meeting dates and times, minutes, agendas, awards, member information and more. Visit www.mmta-mi.org to check out the new site.

I am honored and humbled to be your President and will endeavor to uphold the values, high standards and traditions that have kept this association strong. Thanks to each of you for your contributions to this association. As you become aware of new treasurers, who are elected or taking office, make sure you are encouraging them to join our association.

Have a Merry Christmas! Enjoy your families and friends and try to find some “me” time.

Rose DillonMMTA President

Continued from Cover.

WHAT YOU THINKA recent communication went over the listserve that was warning of a banking institution's wrong doing. Immediately several responses came back asking questions and having concerns about this. A reprimand was also issued that we should not spread such negative information on the listserve.

I am responding to this as a concerned treasurer. I believe that many of the questions, answers, and responses

in general are on the up and up. I do not believe incorrect or mischievous information is passed along to the members. I also believe that good or bad information, as long as the correct information is being shared, is a permissible use of the listserve.

I would be happy to hear “what you think”. Please forward your email to me at jzuhlke@imlaycity.org. Please put “what you think” in the subject line.

December 2010 page 2

We need you! Please consider signing up for one of the MMTA committees. So many of the things we do, including publishing this newsletter and hosting events, wouldn’t happen without the support of our committee members who volunteer their time, expertise and skills. You are all valuable resources for the Association and membership and we could use your help. The committees are open to both Active and Associate Members. A sign up form with more information, including a list and description of each of the committees, is available here.

INTRODUCTION OF ThE MMTA 2010 SERVICE AwARD RECIPIENTSSubmitted by: Janice Thelen, Watertown Charter TownshipThroughout the past year, the MMTA Board of Directors discussed a way to recognize our members who share their time and talents, quietly supporting the mission of the MMTA. These members may or may not be members of committees, and yet are invaluable to the success of an event. Often their contributions may only be known to the committee Chair.

The MMTA Board of Directors agreed on a procedure to recognize our “unsung” heroes through the creation of the MMTA Service Award. This award is offered by the Board of Directors to recognize MMTA members (excluding current Board members and Past P.R.I.M.E. Award recipients) whose commitments to the Association go beyond the call of duty and promote our mission to provide our membership with the tools needed to meet the diverse challenges facing them.

The first MMTA Service Awards were presented by the Board of Directors during the 2010 Fall Conference and were awarded to: Diane Giddens, Treasurer/Assistant Finance Director of the City of Marquette and Russ Mollan, Treasurer of the City of St. Clair.

Diane Giddens received the 2010 Service Award for her past and continued support of the MMTA in the UP educational event. For several years Diane has assisted the chairperson with the various aspects of the annual educational event. She is often the first contact the chair will make in preparation for this event and often the first to arrive and the last to leave. The success of the MMTA in the UP is in part because of Diane Giddens.

Russ Mollan received the 2010 Service Award for being the person who time after time, offers assistance, many times without being asked; for offering kind words of support and encouragement to all MMTA members, especially harried Committee Chairs. Russ consistently displays the character and attitude consistent with the values of the MMTA. He is a friend to all, embracing and sharing the spirit of the MMTA.

Congratulations

to Diane Giddens and Russ Mollan

December 2010 page 3

LEGISLATURE’S FINAL HURRAH: ONE HORRIBLE PROPERTY TAX CHANGEThe Legislature finished its work for the year in the wee hours of the morning on Friday, December 3rd, and passed legislation that will create an administrative nightmare for treasurers across the state. The House of Representatives modified SB 77, which deals with taxation of homes going through bank foreclosure. The legislation, which moved after midnight, focused on foreclosed property, which generally loses its principal residence exemption during the foreclosure process. However, the solution contained in SB 77 creates numerous problems for every community in the state. Under the legislation that passed, the lender will be allowed to file a form with the assessor that would keep the Principal Residence Exemption (PRE) in effect. However, the legislation states that a payment must be made to the treasurer that is equal to the amount of the exempted 18 mills, which will be sent to the state, not the school district. An administration fee can still be charged on this amount, but the legislation requires the township to forward half of this administration fee to the state. Once the property is sold, the PRE is in place for the new owner. If the sale takes place after the “amount” has been paid by

the financial institution for that year, the local treasurer must pro-rate and refund a portion of the “amount” paid.

The legislation has negative impacts on local governments and private homeowners. The legislation diverts property tax administrative fees that have always been local revenue and sends part of that money to the state. This happens while it imposes significant additional administrative problems. The legislation may also change current housing market conditions to benefit the sale of foreclosed properties at the expense of homes that are for sale by owner.

You can contact Governor Granholm by calling 517-335-7858 or by faxing 517-335-6863.

(Reprinted, in part, with permission from William E. Anderson, Legislative Liaison, Michigan Townships Association)

Winter Workshop – neW Format – neW Datespring Workshop –We are excited to introduce a new, joint one-day spring Workshop with the mGFoa . this will take the place of the Winter Workshop. many of our mmta members are also members of the mGFoa and this will alleviate having to choose one over the other or spending time out of the office for both. the event will be held in Lansing at the James B. henry Center for executive Development at msU on Friday, march 25, 2011. the location is a state-of-the art facility with the Candlewood suites hotel attached for those wanting to spend the night. please look for the registration forms in early January. should you have any questions, please feel free to contact me at jsteggerda@parktownship.org.

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MMTA Basic InstituteMay 15-20, 2011

The Basic Institute is designed to enhance the overall job performance of treasurers from small and large municipalities and is required for those seeking the MiCPT and recommended for CPFA certification.

MMTA Advanced InstituteMay 11-13, 2011

The Advanced Institute is a continuing education program that prepares participants to perform the more complex treasurer duties and meets the requirements for those seeking to renew the MiCPT and CPFA certifications.

Both institutes will be held at the Comfort Inn Hotel and Conference Center located on the campus of Central Michigan University in Mount Pleasant.

More information is available here.

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December 2010 page 4

Congratulations are due to Joseph G. Ferrari, Treasurer of

Oxford Charter Township. Joe was awarded the Professional Recognition in Mu-

nicipal Excellence (PRIME) Award by the Michigan Municipal Treasurers Association

(MMTA) at their annual conference. Annually the MMTA recognizes one individual

for outstanding service to their profession, their community, and the MMTA by

awarding its most prestigious honor, the PRIME Award. Joe was awarded this

honor in a vote by the membership choosing from a record eight nominees.

Joe has served on the MMTA Board in various positions, most recently as Past

President. He has chaired multiple Committees, coordinated educational

opportunities, and dedicated countless hours toward bettering the municipal

treasurer profession. Most importantly, for 18 years Joe has served his community

as their elected Treasurer.

Joe received his Bachelor’s Degree in Journalism in 1989 and his Master’s Degree

in Public Administration in 2002, both from Oakland University (OU) in Rochester,

MI. He is a graduate from the Michigan Political Leadership Program at Michigan

State University and was awarded an American Hometown Leadership Award in

1998. Joe has served as president of the Oxford-Orion Optimist Club, Lt. Governor

of the Michigan Optimist District and is a member of the Oxford Lions Club. Joe

has also helped prepare Christmas baskets for area needy families. Joe and his

wife, Lori, have been married for 13 years and have a wonderful 3 1/2 year old

son, Augusto Joseph.

December 2010 page 5

2010 Prime AwArd reciPient

Joseph G. Ferrari

I want to thank the MMTA membership for the prestigious 2010 PRIME award. To receive such an honor in front of my wife, fr iends and peers was definitely one of the highlights of my professional career. MMTA is a wonder ful organization ful l of many dedicated members whose main goals are to help one another and further improve all aspects of governmental treasur y. It was also extremely nice of Al Mooney (last year ’s PRIME recipient), Rose Dil lon (MMTA President), Janice Thelen (MMTA Past-President) and Blinda Baker (a past MMTA board member) to meet my wife and family for dinner and present the PRIME award at our November Oxford Township Board meeting. Once again, thank you all so ver y much.

Sincerely,

Joseph G. FerrariJOSEPh G. FERRARI

2010 PRIME AwARD RECIPIENTSubmitted by: Al MooneyCity of Grand Rapids

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December 2010 page 6

LISTSERv ETIqUETTE

MUNICIPALITIES. MADE IN MICHIGAN.To learn more contact a Treasury Management Specialist.

Linda Hammer(989) 839-5243

Tammy Kerr(616) 785-2575

Kate Seaman(269) 983-8946

Scott Leesch(231) 775-8588

ChemicalBankMI.com

The Michigan Municipal Treasurer Association’s listserv is an electronic means of communication and sharing of information between our Active and Associate Members.

Over the years the listserv continues to be a valuable resource. However, occasionally it becomes used in a less than professional manner. The MMTA Board of Directors would like to remind everyone to observe “listserv etiquette” when using the listserv.

• The primary purpose of the listserv is to provide member-to-member, business-related information.

• Give an extra thought about sharing professional or personal successes on the listserv, as more than 500 members (your closest and dearest?) will receive your news!

• Hitting “reply” to a message will send your response to all members of the listserv, not just the individual to whom you are responding. Some responses are appropriate for all members to view, others not – please take time to think which to use.

• Requests for information about

a specific service provider or Associate Member should be answered directly to the person making the request, not through the listserv. As the person making the request for information about a provider or Associate, please include your contact information with your request. As the person responding to the request for information, please take the time to make sure that your response is going directly to the person asking for the information. This is the standard to which we hold our Associate Members and it is only fair that we observe the same standards.

• The listserv is a member forum

and we appreciate the valuable input from our Associate Membership. However, please remember that the listserv should never be used for solicitation or as a way to advertise seminars or educational opportunities that your organization may be providing.

• Occasionally, highly sensitive information may need to be shared, especially about a service or Associate. Care should be taken to handle remarks with extreme caution to prevent placing the MMTA or yourself in a position where adverse actions could be taken against the association or yourself.

The MMTA listserv is a valuable service provided to all who have registered for this service. If you would like more information about registering for the MMTA listserv, please contact Bruce Malinczak at 1-734-394-5138 or bmalinczak@canton-mi.org for more information.

December 2010 page 7

Be on the Lookout for EFT Fraud!ProTEcT Your organizaTion From FaLLing VicTim To ELEcTronic Funds TransFEr FraudAccording to a recent article published in the Journal of Accountancy, more and more organizations are falling victim to Electronic Funds Transfer (EFT ) fraud due to comprised security on the computers used to initiate web based EFT and wire transfers.

The scheme unfolds as follows. A malicious individual will gain access to an organization's computers through the use of a malicious program unintentionally/unknowingly installed by the computer user when they open an email or browse to a compromised web page.

This program then reads and records the individual's keystrokes and sends them to the malicious individual without the knowledge of person whose computer has been compromised. The thief will then use the program to acquire the victim's user name and password used to log into the organization's online banking website and initiate fraudulent electronic funds transfers to their own bank account, often times cleaning out the victims bank account entirely.

TAkE ThE Following PrEcAuTions To rEducE Your lEvEl oF riskhere are several examples of steps an organization can take to reduce their risk of falling victim to this type of fraud.

1. dedicate a computer or system for online banking, especially EFT (Ach transactions and wire transfers).

2. use multifactor authentication with independent mechanism (for example, require login credentials and a temporary Pin sent to a pre-determined cell phone or pager device; login credentials plus swipe card; etc.)

3. segregate EFT controls. For example, one person performs online EFT function (Ach transactions and wire transfers), and a second person approves the transfer or verifies/reconciles that transaction.

4. reconcile EFT transactions daily.

5. dedicate clearing accounts using "just-in-time" deposits. For example, set up a separate bank account for EFT transfers (Ach transactions and wire transfers), and make deposits (or online transfers from a different computer) into that account just before a wire transfer occurs. The risk is limited to a very brief time frame when money is available in the clearing account.

6. The Federal deposit insurance corporation (Fdic) recommends using a "run as needed" bootable cd (such as the ubuntu operating system) that cannot be contaminated by a virus or malware for the computer accessing online EFT.

For more information you can read the full Journal of Accountancy Article here.Reprinted with permission from Hungerford, Aldrin, Nichols & Carter, PC. This article appeared in their October 25, 2010 e-newletter.