FINANCE COMMITTEE 2010/09/20 Minutes
The City of Lake Forest
FINANCE COMMITTEE
Proceedings of the September 20, 2010 Meeting
6:30 p.m. – City Hall Council Chambers
I. Call to Order and Roll Call
Chairman Grumhaus called the meeting to order at 6:30 p.m. Present: Mayor Cowhey,
Chairman Grumhaus, Aldermen Novit, Moore, Hanrahan, Looby and Palmer. Absent:
Aldermen Widman and Morsch. Quorum present. There were two present in the audience.
Staff present: Kathleen Reinertsen, Finance Director; Michael Thomas, Superintendent of
Public Works; Ramesh Kanapareddy, Assistant City Engineer and Carina Walters, Assistant to
the City Manager.
II. Consideration of Minutes from the Finance Committee Meeting Held on July 19, 2010
Alderman Looby made a motion to approve the minutes as presented. The motion was
seconded by Alderman Palmer. The motion carried unanimously by voice vote.
III. City Mission Statement
Ms. Kathleen Reinertsen, Finance Director stated the City Manager thought it was appropriate
to start the FY2012 budget process by reviewing the City’s mission statement. The mission
statement has been the same for fifteen years. After discussing, the Committee agreed with
Alderman Palmer’s changes and to include the revised mission statement on the October 4
City Council’s meeting agenda.
IV. FY2012 Fiscal Policy
Ms. Reinertsen stated that usually the fiscal policy is reviewed and formally adopted by the
Finance Committee and City Council in December but the City Manager thought the fiscal
policy approval should start the budget process. Additions to the policy are highlighted on
page 2 and pages 7 – 8. Ms. Reinertsen mentioned to the Committee that on page 6, number
4 under Debt Policies, city staff is always looking at both current and advance refunding
opportunities in order to save interest expense. As interest rates are not forecast to rise, the
next bond issue in April 2011 will contain refunding. Pages 7 and 8 are defining funds and fund
balances as recommended by McGladrey & Pullen, the City’s auditing firm, as per a new
GASB statement. After discussion, the Committee agreed to add Chairman Grumhaus’s
pension language to the fiscal policy and to include the revised fiscal policy on the October 4
City Council’s meeting agenda.
V. Budget Calendar
Ms. Reinertsen stated that the bolded dates on the calendar are the important budget
meetings. The first meeting will be November 15 and that will be a joint budget meeting with
the Public Works Committee to discuss the Five Year Capital Improvement Program. At the
January 18, 2011 meeting, there will be discussion regarding the 2011 Bond issue. The March
21, 2011 budget meeting discusses operating and capital budgets, revenues and personnel
policies/pay plan. Chairman Grumhaus requested that Committee members look at their
calendars as soon as possible to see if those dates and times are fine with everyone.
VI. Five Year General Fund Forecast
August Flash Report – Ms. Reinertsen reported that there are no areas of concern through
August 2010 for the General and Water and Sewer Funds.
Five Year General Fund Forecast – Ms. Reinertsen stated that Chairman Grumhaus requested
a review of the FY2011 General Fund budget as well as updated projections through FY2016.
This is a preliminary look at the City’s budget forecast and will be modified again in November
when six months of the fiscal year have been completed. Ms. Reinertsen reviewed the major
changes with the Committee.
Finance Committee Meeting
Minutes – September 20, 2010
2
VII. Recycling Report
Mr. Michael Thomas, Superintendent of Public Works, reviewed the Recycling Survey’s results
with the Committee. The survey’s participation rate was 51.3%. Over 53% of those responding
to the survey support the proposed change to a 65 gallon cart from the current 16 gallon bin.
Only 36% of those responding to the survey support the idea of paying approximately $50 for
the cost of the cart. Of the respondents, 75% noted that if the City were to change to the 65
gallon cart, it should be provided as an option. Mr. Thomas noted that staff plans on re-
educating the residents as to the type of materials that are collected and the fact that all
materials can be mixed.
The consensus of the Finance Committee was to implement an optional recycling cart
program and invite residents to sign up for the program via the City’s website. The resident
would pay 50% of the final price of the cart (staff assumes this could be approximately $25).
Mr. Thomas would obtain bids for the carts in late winter 2010, budget for the carts in the
FY2012 Budget, and apply for the State’s DCEO Recycling Grant. The bids and final
recommendation will be brought to City Council for final approval in April 2011 with carts
expected to be delivered in July 2011. The recycling carts would be introduced City-wide
over a three year period.
VIII. Other Business: None.
IX. Opportunity for the Public to Address the Finance Committee: None.
X. Adjournment
There being no further business, Alderman Looby moved, seconded by Alderman Novit to
adjourn the meeting at 7:38 p.m. The motion carried unanimously by voice vote.
Respectfully submitted,
Louise Breckan
Assistant Finance Director