CITY COUNCIL 2016/10/03 MinutesThe City of Lake Forest
CITY COUNCIL
Proceedings of the Monday October 3, 2016
City Council Meeting - City Council Chambers – 6:30pm
CALL TO ORDER AND ROLL CALL: Honorable Mayor Schoenheider called the meeting to order at 6:35pm,
and City Clerk Margaret Boyer called the roll of Council members.
Present: Honorable Mayor Schoenheider, Alderman Waldeck, Alderman Beidler, Alderman Pandaleon,
Alderman Newman, Alderman Tack, Alderman Reisenberg, Alderman Adelman and Alderman Moreno.
Absent: None.
Also present were: Robert Kiely, City Manager; Victor Filippini, City Attorney; Catherine Czerniak, Director of
Community Development; Elizabeth Holleb, Finance Director; Susan Banks, Communications Manager;
Michael Thomas, Director of Public Works; Chuck Myers, Superintendent of Parks & Forestry, Karl Walldorf,
Chief of Police; Rob Copeland, Deputy Chief of Police; Pete Siebert, Acting Fire Chief, Craig Lepkowski,
Commander; Mike Strong, Assistant to the City Manager, Anne Whipple and numerous members of the
Lake Forest Police Department.
CALL TO ORDER AND ROLL CALL 6:30 pm
PLEDGE OF ALLEGIANCE
REPORTS OF CITY OFFICERS
1. COMMENTS BY MAYOR
Mayor Schoenheider invited all to Oktoberfest, sponsored by the Friends of Lake Forest Parks and
Recreation on Saturday. The mayor then swore in the new Deputy Chief and Sergeant. Photos were
taken.
A. Swear in Deputy Police Chief Rob Copeland
B. Swear in Sergeant Brett Marquette
2. COMMENTS BY CITY MANAGER
A. Community Spotlight
-Lake Forest College
- Steve Schutt
City Manager Robert Kiely Jr. introduced Lake Forest College President Steve Schutt. Mr. Schutt reported
that the ground breaking ceremony for the Science Center will be Friday. He gave a brief overview of
upcoming events and reported that Lake Forest College was listed in The Princeton Review as a top 20
school and that Lake Forest College ranked 17 as having the “happiest students in the country”. Mr. Schutt
then introduced Rafael Omatis, Lake Forest College Senior, and Cole Pedro, first year City Liaison, who
Proceedings of the Monday, October 3, 2016
Regular City Council Meeting
reviewed some of the reasons for the ranking. Those included opportunities in the community, leadership
associations and a compassionate staff at the College.
B. Community Spotlight
-Lake Forest Country Day School
-Bob Whalen- Head of School
City Manager Robert Kiely Jr. introduced Bob Whalen, Head of School. Mr. Whalen stated that he is proud to
have the Day School be part one of the City’s four cornerstones, Education. The School prepares children to
be critical thinkers. Mr. Whalen reported on the opportunity for families to learn about education through
keynote speakers, with the next opportunity occurring on October 27 featuring speaker Jessica Lahey.
Mayor Schoenheider reported that he and some members of the City Council were at the ribbon cutting
ceremony at Life Working, which offers a collaborative work environment. Mayor Schoenheider stated that
this type of new program is leading the way for the community.
3. COMMENTS BY COUNCIL MEMBERS
Mayor Schoenheider reported that, in the spring of 2016, he asked that the City take a proactive position
and create a marketing campaign for Lake Forest.
LAKE FOREST MARKETING CAMPAIGN
1. Consideration to Waive Purchasing Requirement for Competitive Pricing per Administrative
Directive 3-5, and Award a Contract for Professional Services to Provide Marketing
Consultation Services by Brandstorm! for the Lake Forest Marketing Campaign in the amount
of $30,000
Alderman Beidler reported that beginning in early 2016, the staff and City Council began hearing from
residents and local realtors about:
• The current abundant housing inventory and length of time on the market
• The need for more diverse housing
• The need to promote Lake Forest’s assets to a younger demographic and boost economic
development
• And most importantly, the ability to sustain this very special community. There is a lot to promote
about Lake Forest. A recent article was published in the Daily North Shore about Lake Forest Day,
quoting a young boy saying that he thought Lake Forest Day was great because “Lake Forest has its
own holiday!”
Alderman Beidler stated that Mayor Schoenheider announced the City’s plans to develop a marketing plan
at the May 16 City Council meeting and again at the July 13 Chamber of Commerce Annual Luncheon. Mayor
Schoenheider appointed Alderman Beidler to head up an ad hoc committee to work on promoting Lake
Forest, welcoming new residents and welcoming back younger people who grew up here and may want to
return to Lake Forest to raise their families.
Alderman Beidler reported that the Lake Forest Welcome Campaign has two goals: 1) To promote the City
and its assets to attract new residents, young families, students, businesses, visitors, shoppers and diners
and 2) To encourage residents, businesses owners and employees to act as advocates for Lake Forest.
Alderman Beidler has been working since July with the Chamber of Commerce and real estate professional
Deb Fischer, Susan Kelsey, Economic Development Coordinator, and Susan Banks, Communications
Proceedings of the Monday, October 3, 2016
Regular City Council Meeting
Manager. Also, Phil Gayter, whose proposal is before you this evening, is here as well to answer any
additional questions the Council may have.
Alderman Beidler reported that several local realtors have already begun promoting Lake Forest’s assets by
listing the “Top Ten” reasons to live here, or why Lake Forest is the “best-kept secret.”
The Committee has spent the summer talking with interested residents, business owners, real estate
professionals and marketing/advertising professionals and there is great enthusiasm for the project and a
lot of input gathered. Alderman Beidler explained that most importantly the Resident Survey, available until
October 17, will provide the committee with more data.
Karl Stelter, who grew up in Lake Forest, now a young professional film maker based in Los Angeles, is
creating a series of 15-second to 5-minute films that authentically promote the image of Lake Forest and its
4 cornerstones of Family, Education, Tradition and Philanthropy. Karl spent a week in Lake Forest in
September capturing: 15 interviews, 7+ hours of interview footage and 1,500+ video clips from 30+
locations including the LFHS Homecoming Football Game. A sneak preview of Karl’s work will be presented
at the Tuesday, November 1 Town Hall Meeting in the John Hughes Theater at Gorton at 7 p.m.
Alderman Beidler reported that if the Council approves Phil Gayter’s proposal and scope of work. A
Marketing Team of no more than 8-10 people will be created. The team expects to have specialized reports
prepared to present to the City Council throughout this winter and next spring, detailing the Committee’s
work and progress to date, as well as any measurable results.
Alderman Beidler reported on the proposed budget over three years; $18,500 Video Production
Short films, comprehensive film and edited cutdowns for social media, $30,000 Marketing Advisement and
“Brandstorming”, Concept Creation, Production and Maintenance and an estimated total of $50,000 Media
Buys (estimated). Alderman Beidler reported that the entire expenditure can be recouped if 8 houses are
sold in Lake Forest per year, based on average residential Real Estate Transfer Tax income.
Alderman Beidler reviewed the Campaign Success Measurements that included RETT revenues,
restaurant/food sales tax, home sales and price of home sales, press coverage, social media and website
impressions/analytics, District 67 enrollment and the number of new residents.
Alderman Beidler added that this campaign will not be successful without crucial input from the entire
community and encouraged all residents and business owners to act as advocates for Lake Forest and
encourage sharing stories, photos and videos with the City. Alderman Beidler reminder residents that the
Resident Survey was mailed to all Lake Forest household on September 7, and is on the City’s website until
October 17.
The City Council had a great deal of discussion on the long term health and viability of the City. The City
Council also had discussion on the consideration of waiving the purchasing requirement for competitive
pricing, and discussed the option of having more information given to the Council on the topic and holding
the vote until the next meeting.
City Manager, Robert Kiely reported that the contract is one for professional services, and this contract is no
different that the City Council has seen in the past from Engineering as an example. The Committee has
done its due diligence through its course of interviews and refining the scope of services. Other proposals
came in at much higher pricing. The Committee felt unanimously that Mr. Gayter is the best fit when
compares to financial terms of others who were interviewed and best fit when it came to understanding the
needs of the City.
Mayor Schoenheider asked if there was anyone form the public who would like to comment. Seeing none,
he asked for a motion.
Proceedings of the Monday, October 3, 2016
Regular City Council Meeting
COUNCIL ACTION: Waive Purchasing Requirement for Competitive Pricing per Administrative Directive 3-
5, and Award a Contract for Professional Services to Provide Marketing Consultation Services by
Brandstorm! for the Lake Forest Marketing Campaign in the amount of $30,000
Alderman Reisenberg made a motion to waive Purchasing Requirement for Competitive Pricing per
Administrative Directive 3-5, and Award a Contract for Professional Services to Provide Marketing
Consultation Services by Brandstorm! for the Lake Forest Marketing Campaign in the amount of $30,000,
seconded by Alderman Beidler. The following voted “Yey”: Aldermen Waldeck, Beidler, Pandaleon,
Newman, Tack, Reisenberg, Adelman and Moreno. The following voted “Nay”: None. 8 Yeas, 0 Nays, motion
carried.
PUBLIC WORKS COMMITTEE
1. Consideration of a Resolution to Encourage and Facilitate the Replacement of Lead Water
Services. (Approve by Motion)
Alderman Waldeck, Chairman of the Public Works Committee, reported that the Council is asked to consider
a Resolution to increase awareness of lead water service lines and to offer encouragement and support to
the owners of properties which have lead services to remove and replace those services.
Chairman Waldeck stated that recently, in order to educate and assist homeowners, the Public Works
Department reviewed City files and identified about 300 properties that, based on available information,
may have lead water services. 300 letters were sent to alert owners of those properties that lead service
may be present and to offer “no cost” City inspections to verify whether or not lead services exist. A
number of inspections have been conducted and in some cases, City inspectors found that lead services no
longer exist. In other cases, where lead services were found, some owners expressed interest in replacing
the lead services.
Alderman Waldeck reported that at its September 19, 2016, the Public Works Committee directed staff to
present a Resolution for Council consideration in an effort to encourage and facilitate the full replacement
of lead water services, from the point of connection at the water main, to the connection at the water
meter or foundation. And that for a period of two years, standard permit fees for the replacement of lead
service lines will be waived.
Chairman Waldeck reported that the City’s Water Plant and the water quality are regularly monitored and
consistently meet all IEPA standards. In addition, the City has a corrosion control program through which
lead pipes are coated to reduce the likelihood of exposure to lead. Also, the City is working to raise
awareness of lead water service lines out of an abundance of caution.
Michael Thomas, Director of Public works, reported that the proposed two year waiver of permit fees will
result in some lost revenues for the City. Depending on the specific conditions for each property, the waiver
of fees for replacement of a lead water service line ranges from $600 to $1,400, and a general connection
cost estimate of $10 to $12,000.
The City Council had discussion on the length of time the fees would be waived, the cost of connection, how
the connection would be made and the general location of where most lead service pipes are located, with
the majority being in Ward 1 and a few in Ward 2 near the South Park area.
Proceedings of the Monday, October 3, 2016
Regular City Council Meeting
Mayor Schoenheider asked if there was anyone from the public who would like to comment. Seeing none,
he asked for a motion.
COUNCIL ACTION: Approve a motion in support of a Resolution encouraging and facilitating the
replacement of lead water service lines.
Mayor Schoenheider reported that Alderman Tack would like to follow up from the September 19, City
Council workshop. Alderman Tack stated that the Fire 2020 Committee’s findings were an issue of
economics. He noted that the media reports of that meeting may have been misunderstood or under-
reported the facts. Instead of sending a letter, he would like to read an open letter to the press.
“For the past two years I have had the opportunity to participate as an Alderman on the City's Fire Vision
2020 committee. Other members of the committee included an Alderman, 4 citizen representatives, Chiefs
of the Fire and Police departments, as well as City Staff including the City Manager, Finance Director, and
Director of Public Works. The committee was tasked with reviewing the operations and finances of the Lake
Forest Fire Department with an eye toward establishing a fiscally viable operational plan that would be
sustainable for the foreseeable future. The committee was provided with all applicable information
regarding operational, capital, and financial aspects of the Fire Department. Particular attention was paid to
opportunities for improving operational efficiency, enhancing revenue generation, and reducing capital
expenditures. The budgetary trends of the department were examined in great detail in the context of the
budgetary limitations affecting overall City operations as projected over the next 10 years. The committee
heard from consultants who have worked with other municipalities on improving operational efficiencies, as
well as transitions to alternative models of providing fire and EMS services. Our discussions were always
based on the understanding that all changes would need to be considered with the goal of maintaining, or
improving, current levels of public safety. Trends in other public welfare arenas, such as healthcare, were
also reviewed to determine applicability to our task of improving the sustainability, efficiency, and quality,
of our municipal fire service.
After initial discussion of the trends and options for improving fiscal and operational efficiency of our Fire
Services, the limitations applicable to changing operations of the department were reviewed. These
included the limited effects of many changes on the financial viability of the department, as well as
personnel, and contractual restrictions. It was determined early on in the process that few operational
changes within the current operating model provided significant benefits on either the quality or financial
aspects of the department. It was also discovered that the contractual restrictions imposed by union
contracts, and state imposed pension funding requirements, were the primary impediments to obtaining a
fiscally sound budget for departmental operations and creation of a long term plan for operating the Fire
Department via the current model.
As currently structured 99% of the Fire Departments costs are personnel related and subject to contractual
and State imposed limitations. Of these immutable costs the requirements for pension funding are clearly
the most important factor affecting the fiscal viability of providing Fire and EMS services under the status
quo. Public safety pension contributions from the City are currently increasing at an annual rate in excess of
8% per year. Next years increase alone will approximate 250,000$. With a doubling time of < 9 years City
pension contributions for public safety will exceed 3 million dollars per year by 2026. Unaltered, the growth
of public safety pension obligations alone will require massive tax and fee increases, as well as severe cuts in
other governmental services in order to merely fund the annual increases. The committee determined that
there were no significant opportunities for revenue enhancement or fiscal efficiencies within the Fire
Department that could meaningfully contribute to mitigation of these clearly unsustainable financial trends.
In light of the incontrovertible evidence of the intermediate and long term non-viability of the current
model of providing Fire and EMS services by the City of Lake Forest, as established by the Fire Vision 2020
Proceedings of the Monday, October 3, 2016
Regular City Council Meeting
committee, it is time for the residents of Lake Forest to seriously consider the adoption of alternative
models for the provision of these services that can establish long term fiscal viability. Numerous models
exist which offer meaningful improvements in fiscal sustainability. These range from the establishment of
an all-volunteer fire service with outsourcing of EMS services to the creation of a regional consolidated fire
protection district. Intermediate options may also exist. What is clear is that the status quo is not an option.
In the near future a proposal to enact a “Public Safety Pension Fee " will be presented to the City Council.
Such a fee, if enacted, will provide a 1-2 year window for the City to research and implement an alternative
sustainable model for the provision of Fire and EMS services. By no means will such a fee allow inaction or
maintenance the status quo. The obvious implication of this proposal is that the residents must
immediately engage in the process with the City of identifying an appropriate replacement model for the
Fire Department. This will require courage and vision on the part of your elected officials, as well as City
staff, and engagement of the citizenry in a positive way. Failure to act expeditiously will not benefit the City
or its residents in any way, but will result in a need to act precipitously in the future without the benefit of
time for thoughtful deliberation.
It is worth noting that the need for action on this matter is based on fiscal issues and not on any deficit of
our professional firefighter/paramedic staff. Their professionalism represents the best of Lake Forest. The
decisions that resulted in the need for action were made remotely, and are not amenable to local
remediation. The actions necessary to solve our crisis are ours alone to take. Now is the time.”
Mayor Schoenheider thanked Alderman Tack for his input.
OPPORTUNITY FOR CITIZENS TO ADDRESS THE CITY COUNCIL ON NON-AGENDA ITEMS
None.
ITEMS FOR OMNIBUS VOTE CONSIDERATION
1. Approval of the September 6, 2016 City Council Meeting Minutes
2. Approval of the September 19, 2016 City Council Workshop Meeting Minutes
3. Ratify Proclamation given to Ragdale on September 17, 2016
4. Red Ribbon Week Proclamation October 24-31, 2016
5. Approval of Check Register for period August 27- September 23, 2016
6. Consideration of an Ordinance Amending Chapter 75 of the City Code, as Recommended by
City Staff. (Final Approval)
7. Consideration of an Ordinance Amending Chapter 98 of the City Code, as Recommended by
City Staff. (Final Approval)
8. Consideration of an Ordinance Amending Chapter 78 of the City Code, as Recommended by
City Staff. (First Reading and if Desired by the City Council, Final Approval)
9. Consideration of Ordinance Approving a Recommendation from the Building Review Board.
(First Reading and if Desired by the City Council, Final Approval)
COUNCIL ACTION: Approval of the nine (9) Omnibus items as presented
Proceedings of the Monday, October 3, 2016
Regular City Council Meeting
Mayor Schoenheider asked members of the Council if they would like to remove any item or take it
separately. Alderman Beidler made public that she has a close personal relationship with the homeowners,
her daughter-in-law was the realtor. She would leave it up to the City Council if they would like her to recuse
herself from voting on the item. Mayor Schoenheider asked if there was anyone on the Council who would
like Alderman Beidler to recuse herself from that vote. Seeing none. Mayor Schoenheider asked for a
motion to approve the nine Omnibus items as presented.
Alderman Reisenberg made a motion to approve the nine Omnibus items as presented, seconded by
Alderman Beidler. The following voted “Yey”: Aldermen Waldeck, Beidler, Pandaleon, Newman, Tack,
Reisenberg, Adelman and Moreno. The following voted “Nay”: None. 8 Yeas, 0 Nays, motion carried.
Information such as Purpose and Action Requested, Background/Discussion, Budget/Fiscal Impact,
Recommended Action and a Staff Contact as it relates to the Omnibus items can be found on the agenda.
ORDINANCES
ORDINANCES AFFECTING CODE AMENDMENTS
NEW BUSINESS
1. Discussion on the Future of Fire/EMS Services within the Community and Related Public
Safety Pension Contributions
Robert Kiely Jr., City Manager, stated that this issue is a complex one and that the City of Lake Forest is not
the only community which needs a solution. The City of Lake Forest has a track record of taking action well
in advance of the immediate need. The City Manager publicly thanked Alderman Tack and Moreno for their
work and for their help in guiding the conversation.
Mr. Kiely gave an overview of what will be heard at the Council meeting:
• Timeline
• Committee Purpose & Goals
• Background / History
• Call Volume Activity
• Financial Implications
• Critical Issues
• Opportunities & Recommendations
Mr. Kiely reported that the City of Lake Forest was part of the 2010-2012: Fire/EMS Shared Services
Analysis between Lake Forest, Lake Bluff, Highland Park and Highwood study. In January 2013, the City
created a Task Force on Fire & EMS Shared Services. In September 2014, the City created a contract with
Glenview for Central Dispatching, and in July 2014, the City created the LF Fire Service 2020 Committee,
reconstituting the 2020 Committee in March 2016.
Proceedings of the Monday, October 3, 2016
Regular City Council Meeting
Mr. Kiely reviewed the Committees goals that included:
• Critical Importance of Public Safety & its Long-Term Affordability
• Understand Service Levels and Operational Demands
• Corresponding Manpower & Equipment Requirements
• Analyze the Cost Structure and Projected Growth Trends
• Identify Legal/Legislative Restraints to Alternative Systems or Approaches
Understanding that there is no one answer, the City Manager remarked that the challenge is to address and
recognize the importance Public Safety plays within the Community. Public Safety is always the City’s top
concern. Mr. Kiely stated that there are a lot of issues here that are controlled by legislators, legal restraints
and Illinois rules and regulations.
The City Manager then gave an overview of the history of the fire Department:
• Fire Dept. est. in 1893 as volunteer dept.
• Began hiring full-time employees in 1913
• Implemented EMS service in 1974
• Accredited by CFAI in 2010; Re-Accredited in 2015
• ISO Rating of 3 (pending)
• Currently have 35 full-time employees (33 Uniform, 2 civilian)
• Two Fire Stations
• 16 Vehicles
• FY17 Budget - $6,250,038 (98% personnel)
The City Manager also talked about call volume using the graph below:
Series Description
Auto
Aid
Given
Auto Aid
Received
Mutual
Aid
Given
Mutual
Aid
Received
No Aid
Provided
Special
Call/
No
Response
Grand
Total
100 Fire 2 3 14 6 8 - 33
200
Overpressure
Rupture,
Explosion,
Overheat (No
Fire)
- 1 - - 3 - 4
Proceedings of the Monday, October 3, 2016
Regular City Council Meeting
300
Rescue and
Emergency
Medical
Service (EMS)
Incidents
76 1 27 27 1,623 - 1,754
400
Hazardous
Condition (No
Fire)
7 9 4 6 110 - 136
500 Service Call 2 2 29 3 237 - 273
600 Good Intent
Call 122 4 30 3 87 - 246
700 False Alarm
and False Call 63 93 2 6 446 - 610
800
Severe
Weather and
Natural
Disaster
- - - - - - -
900
Special Service
Call/No
Response
- - - - - 34 34
Grand Total 272 113 106 51 2,514 34 3,090
*Automatic Aid is provided/received by contractual agreement with other Departments or Districts
(Bannockburn/Deerfield, Highland Park/Highwood, Lake Bluff, Libertyville, Lincolnshire, Mettawa)
*Mutual Aid provided/received via participation in Mutual Aid Box Alarm System (MABAS) which
automatically dispatches resources to assist with call response
*No Aid provided includes calls for service to the Department that were unassisted by external agencies
*Special Calls/No Response include test calls, dropped calls, or other calls that did not require the
Department to dispatch resources.
The City Manager noted that The City of Lake Forest gives more aid to other communities than it receives.
Of all aid given, the City gave 12% and received 5%.
The City Manager then introduced Elizabeth Holleb, Finance Director, who reviewed long-term financial
forecasting in the general fund using the table below.
Proceedings of the Monday, October 3, 2016
Regular City Council Meeting
Ms. Holleb went on to review staffing levels and personnel costs in relation to the budget, stating that
personnel costs represent 70% of the budget. Ms. Holleb used a graph to depict how the cumulative
increase in personnel costs per FTE (full time equivalent) has outpaced the growth in general fund revenue
since 2006. In FY2013 the gap was -20%, in 2017 the gap is -41% in 2019 the gap is -52%. To see the gap as
equated to dollars in FY2013 its $750,000. FY2017 will represent $2.6 million and in FY2019 the gap will
represent $3.6 million.
The City has reduced some of the gap with a reduction in personnel since 2006. Previously, the City of Lake
Forest had 249 full time employees and currently is budgeted for 213. Ms. Holleb reported that the Public
Safety pension obligations made by the City of Lake Forest meet or exceed pension obligations. The City of
Lake Forest has no say in police or fire pension plans. Ms. Holleb talked about investment returns relating to
Police and Fire Pensions.
Ms. Holleb noted that while it's a conservative estimate, the actuary provides an assumption based on
funding policy and the assumptions of the City of Lake Forest. That means that contributing requirements
for active police and fire personnel are determined by state statute.
The state statute state says that the pension must be funded 90% by 2040 in the City of Lake Forest goes
with a funding of 100% amortizing that 10% percent for 2040.
The actuary actually uses a smoothing effort for investment returns over five years. Decisions from the
general assembly put boundaries on what the pension can invest in.
ACTUAL ACTUAL PROJECTED PROJECTED PROJECTED PROJECTED PROJECTED PROJECTED
FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021
Fund Balance 5/1 14,654,428 17,515,664 20,424,000 20,085,090 21,348,881 21,961,015 21,881,995 21,126,291
Revenue 32,963,689 33,546,478 33,250,536 33,645,733 34,314,999 34,976,662 35,678,839 36,637,814
Operating Expenses 28,957,453 29,888,142 31,302,014 32,381,942 33,702,865 35,055,682 36,434,543 37,831,416
Net before CIP 4,006,236 3,658,336 1,948,522 1,263,791 612,134 (79,020)(755,704)(1,193,602)
Capital Expenditures 1,145,000 750,000 475,000 - - - - -
Use of Paid Parking Reserves 957,420
Regency Lane SSA Financing 855,012
ERI Payoff from Reserves
Fund Balance 4/30 17,515,664 20,424,000 20,085,090 21,348,881 21,961,015 21,881,995 21,126,291 19,932,689
Nonspendable Fund Balance 4/30 2,126,990 1,648,832 1,648,832 1,648,832 1,648,832 1,648,832 1,648,832 1,648,832
Assigned FB - Financial System 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000
Less: 35% Req Resv+ Sick/Vaca+$957k Parking*10,740,728 14,159,041 13,098,042 13,236,361 13,470,604 13,702,186 13,947,948 14,283,589
- change to 35% for FY15
Available Funds 4,647,946 4,616,127 4,138,216 5,263,688 5,641,579 5,330,977 4,329,511 2,800,268
Op Revenue increase%2.6%1.8%-0.9%1.2%2.0%1.9%2.0%2.7%
Op Expense increase % 4.1%3.2%4.7%3.5%4.1%4.0%3.9%3.8%
FB as % of revenue 53.1%60.9%60.4%63.5%64.0%62.6%59.2%54.4%
* Parking reserve expended in FY2016 and no longer part of minimum fund balance.
Note: Fund balance schedule in budget includes fund 101 and fund 120 in General Fund line - excluded here.
THE CITY OF LAKE FOREST
FIVE YEAR FUND BALANCE FORECAST
GENERAL FUND
Proceedings of the Monday, October 3, 2016
Regular City Council Meeting
IMRF is handled differently at the state level, GASB 68 says that in the FY16 relating to financial statements,
there's a requirement to show the pensions on the face of the financial statement.
Public Safety pension costs have increased from $1.2 million in FY2005 to $3.1 million in FY2017. Current
projections forecast another $3.6 million increase to $6.7 million annually by FY2027. Annual contributions
will continue to grow through FY2040 – the current projected date for full funding.
As a benchmark, the City’s tax levy requirement in 2017 is projected to be 8.9% over the previous year,
which is far in excess of the tax cap at .7%.
2016 Tax Levy Requirement:
City Manager Robert Kiely reported on critical decisions, including service level expectations and response;
aging populations, advance technology, city codes, staffing & cost of personnel and equipment type and
replacement schedule.
He discuss opportunities and what each of those opportunities means; status quo, increase revenue,
review/modify service levels, manage costs, consolidation / shared services / IGA, capital equipment,
contract out Fire and/or EMS services.
The City Manager reported Identifying and implementing a sustainable and innovative framework for
providing Fire/EMS service levels commensurate with resident expectations is a complex issue that must be
deliberated methodically, transparently and with the cooperation of neighboring governmental agencies.
Meaningful and enduring organizational strategies will need to be both short-term and long-term in nature
He laid out the following:
• Short-term Strategy:
• Identify supplemental revenue source(s) for pension contribution
The projected increase in public safety pension contributions for the 2016 tax levy in 8.9% or $ 254,976.00.
This increase cannot be adequately covered by the tax cap of 0.7% or $ 206,701.00. The Committee has
suggested various revenue sources be considered to bridge the gap until a more permanent and sustainable
cost-structure can be implemented. A potential revenue source would be a pension funding fee added to
the water billing.
• Intermediate Strategy:
• Identify additional operating efficiencies, update codes, examine
response protocols and reevaluate existing aid agreements
While the City engages in discussion with neighboring communities on consolidation, shared services or
alternative governance models, steps should be taken to identify opportunities to continue “doing more
2015 Levy
Required
2016 Levy
Required
Percent
Increase
Fire $1,137,826 $1,298,188 14.1%
Police 1,737,445 1,832,059 5.4%
Combined $2,875,271 $3,130,247 8.9%
PTELL (Tax Cap) .7%
Proceedings of the Monday, October 3, 2016
Regular City Council Meeting
with less” including but not limited to the following. 1) Opportunities for additional operational efficiencies,
2) Safety and building code modifications, 3) Extending equipment useful life, 4) Examining existing
response protocols. And, 5) Reevaluating current Mutual Aid agreements and other related considerations.
• Long-term Strategy:
• Actively pursue opportunities for collaborative partnerships through
consolidation, shared services or similar framework
The work started in 2010 must be resumed to develop a multi-jurisdictional Fire/EMS institution that
creates greater operational efficiencies while maintaining acceptable service levels. The extensive resources
of the various neighboring agencies should be assessed and deployed, absent any limitation of corporate
borders. The Mayor and the City Manager should contact their counterparts at the respective agencies
inviting them to participate in meaningful deliberations on the creation of a sustainable and innovative
framework for providing residents Fire/EMS Services.
City Manager Kiely also reviewed issues that will be expected in the near future; Resistance to tax/fee
increase, nostalgia, civic attachment to fire operations, how the City is limited by State laws and union
contract limiting/prohibiting alternatives, politics, aversion to “losing control” (Trust) and a willingness to
confront the complex, emotional issues
Mayor Schoenheider stated that the City Council acknowledges safety as the number 1 priority within the
community and safety will never be compromised.
The City Council had lengthy question and answer discussions on each topic with emphasis that status quo is
not an option for a variety of reasons. Additionally, the Council established consensus that in the short term
it would give possible consideration of a Pension Service Fee, as recommended by the Fire Service Vision
2020 Committee to cover the shortfall and that the pension funding solution to is not a just sought for the
Fire Department, it will eventually include the Police Department. Overall, the City Council concurs that a
solution will be multi-faceted.
Mayor Schoenheider asked if there was anyone from the public who would like to comment. Seeing none,
he asked for a motion.
COUNCIL ACTION: Authorize the Mayor and the City Manager to send the proposed letter to neighboring
jurisdictions inviting them to initiate conversations on the subject of Fire/EMS Services.
Alderman Beidler made a motion to authorize the Mayor and the City Manager to send the proposed letter
to neighboring jurisdictions inviting them to initiate conversations on the subject of Fire/EMS Services.,
seconded by Alderman Newman. The following voted “Yea”: Aldermen Waldeck, Beidler, Pandaleon,
Newman, Tack, Reisenberg, Adelman and Moreno. The following voted “Nay”: None. 8 Yeas, 0 Nays, motion
carried.
ADDITIONAL ITEMS FOR COUNCIL DISCUSSION
ADJOURNMENT
There being no further business. Alderman Newman made a motion to adjourn, seconded by Alderman
Adelman. Motion carried unanimously by voice vote at 9:25 p.m.
Proceedings of the Monday, October 3, 2016
Regular City Council Meeting
Respectfully Submitted,
Margaret Boyer
City Clerk
A video of the City Council meeting is available for viewing at the Lake Forest Library and on file in the Clerk’s
office at City Hall. You can also view it on the website by visiting www.cityoflakeforest.com. Click on I Want
To, then click on View, then choose Archived Meetings Videos.