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CEMETERY COMMISSION 2010/10/20 MinutesCEMETERY COMMISSION MEETING LAKE FOREST CEMETERY GATEHOUSE WEDNESDAY, October 20, 2010, 5:30 P.M. MINUTES I. ROLL CALL/ CALL TO ORDER: The meeting of the Cemetery Commission was convened at 5:30 p.m. at the Lake Forest Cemetery Gatehouse. The following members were present: Chairman Ronald Sevcik; Commission Members Ginny Grace, John Greene, Colin Silvester, and Prue Beidler. Staff members Ken Leone, Superintendent of Public Works and Phil Alderks, Cemetery Sexton were present. Also attending was Tony Hoban of William Blair and Company. II. CONSENT AGENDA: Chairman Sevcik presented the following items for approval: A. Approval of Minutes from the Cemetery Commission Meeting held on July 21, 2010 B. Sales Report – Sexton Phil Alderks handed out an updated Sales Report (attached) for the Commission’s review. Member Ginny Grace moved to approve the Consent Agenda as presented. Member Prue Beidler seconded the motion, which carried unanimously. III. THIRD QUARTER INVESTMENT REPORT FROM WILLIAM BLAIR AND COMPANY: Tony Hoban of William Blair and Company reported that fixed income investments have been reduced to 30% of the portfolio since June 30. In the Commission account stocks and international investments make up almost 80% of the portfolio. Small to mid-cap stocks continue to offer opportunities. Overall performance for the quarter was quite good (+8.6%). Equities were up 10.6%. However, equities were 2.5% below the Russell 3000 Growth benchmark because of a difficult August. The big market rally in September was due to anticipation that the government is again going to intervene in the economy. The conservative fixed income portfolio continues to do well, but over the next 12-24 months bond returns are likely to decrease. Increasing exposure to equities makes sense. International investments did well in the quarter (up 12.1 YTD + up 16.9% for quarter). Volatile market conditions offer opportunities for buying and selling; there has been a flow to bonds but we’re not going to follow that trend. With low returns in cash and bonds, when inflation hits, you get negative returns. Mr. Hoban believes there is still more upside to the market. Corporations are Cemetery Commission Minutes October 20, 2010 Page 2 of 4 beginning to spend accumulated cash and lending is easing. Credit is easier to get; hiring should pick up. The Commission notified Mr. Hoban that at the last meeting, they approved investing the 11 separate Care Funds (being those funds for the perpetual care and maintenance of various plots and/or other facilities and the Cemetery) under the same asset distribution criteria as the principal cemetery investment accounts as stated in the Lake Forest Cemetery Investment Policy dated, October 19, 2006. IV. UPDATE ON RAVINE PLANTING PROJECT: Mr. Alderks reported that Conservation Land Stewardship completed hydroseeding and planting on the bluff near the lake on October 13. V. CONSIDERATION OF FEES AND CHARGES FOR FY2012: Ken Leone, Superintendent of Public Works, presented staff’s proposed fees for the coming year. Increases are in line with Consumer Price Index increases over the last year and are consistent with the increases in expenses the Finance Department anticipates in The City’s FY2012 Budget. The commission was receptive to the recommendations. Member John Greene moved to approve the FY2012 Fees and Charges as proposed. Member Ginny Grace seconded the motion, which carried unanimously. VI. APPROVAL OF TARGET NUMBER FOR FY2012 BUDGET: Mr. Leone presented the three revenue projections that were prepared by staff. The parameters (rates of inflation and return) were provided by The City Finance Director; they were extremely conservative. Each year that the Commission has used this method to determine a budget target number, the Conservative Base Projection has been adopted. Mr. Leone again asked the Commission to follow their precedent and approve the FY2012 Conservative Base revenue projection of $760,269 as the operating budget target number. The preliminary draft operating budget for FY2011 totals $639,885. Staff will prepare a final budget for the coming fiscal year that will not exceed the target amount. The budget will be presented for Commission approval at the January meeting. Member Beidler moved to accept $760, 269 as the FY2012 Operating Budget target number. Member Silvester seconded the motion, which carried unanimously. Mr. Alderks pointed out that the annual payments of slightly more than $150,000 to pay off the Memorial Gardens/Gatehouse debt will end in four years, so this Cemetery Commission Minutes October 20, 2010 Page 3 of 4 money will become available for operating expenses, projects, or investments. The Commission asked if the bond can be refinanced to obtain a lower rate. Mr. Leone responded that the last time the Finance Department checked this, there was no benefit to refinancing, but he will ask the Finance Director to look into it again. VII. FY2012 CAPITAL IMPROVEMENT BUDGET: Mr. Leone presented the FY2012 Capital Improvement Program. It includes three projects:  Additional ravine restoration will be contingent upon receiving grant money of $1,060,000 from the Illinois Environmental Protection Agency’s (IEPA) Illinois Green Infrastructure Grant Program. The Cemetery’s match would be $200,000.  Entry arch repairs and tuckpointing, estimated to cost $100,000.  Landscape improvements consisting of designs and plantings in the O.C. Simmonds style, consistent with the landscape master plan approved by the Cemetery Commission several years ago. The estimated cost of this initial phase of the project is $50,000. Since some commission members had not been involved in adoption of the master plan, the group discussed whether or not they should precede with this landscape project. Member Grace encouraged the Commission to move forward with the decision made by the previous board. The subject had been thoroughly researched and vetted by the Commission. Staff volunteered to invite O.C. Simonds scholar Barbara Geiger to repeat her presentation on Simonds’ designs and his importance to Lake Forest Cemetery. She made presentations to the Commission and to the Lake Forest Garden Club in the past. She will be asked to attend the January Cemetery Commission meeting. Member Grace moved to approve the proposed FY2012 Capital Improvement Budget of $350,000. Member Beidler seconded the motion, which carried unanimously. VIII. CONSIDERATION OF TUOHY FAMILY MONUMENT: Mr. Alderks explained that the proposed Tuohy family monument does not pose a design issue; the question is the height of 5’8”. Monument heights are generally in the 42” to 48” range. This one is in Elder Path, near the back of the section. A similar cross in section C is 5’2” tall. Mr. Alderks thinks the proposed 5’8” height is appropriate for the location. Cemetery Commission Minutes October 20, 2010 Page 4 of 4 Member Grace moved to approve the proposed monument. Member Silvester seconded the motion, which carried unanimously. IX. OTHER MATTERS: Mr. Alderks reported that Mr. Guth has declined to proceed with his request to trade graves. X. NEXT MEETING: OCTOBER 20, 2010, 5:30 P.M.: The next regularly scheduled meeting of the Cemetery Commission will occur on Wednesday, January 19, 2011 at 5:30 p.m. at the Cemetery Gatehouse. XI. ADJOURNMENT: The meeting was adjourned at 7:00 p.m. Ken Leone Superintendent of Public Works