FINANCE COMMITTEE 2009/09/21 Minutes
The City of Lake Forest
FINANCE COMMITTEE
Proceedings of the September 21, 2009 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, Goltra, Morsch, Hanrahan, Looby and Palmer. Absent: Alderman Widman.
Quorum present. There were approximately 6 present in the audience.
Staff present: Robert Kiely, City Manager; Kathleen Reinertsen, Finance Director; Louise Breckan,
Assistant Finance Director; Ken Leone, Superintendent of Public Works; Rosemary Haack, Public
Information Officer; Diane Hall, Senior Accountant; Carina Walters, Assistant to the City Manager; and
Victor Filippini, City Attorney.
II. Consideration of the Minutes from the Finance Committee meeting held on May 18, 2009
Alderman Looby made a motion to approve the minutes from the Finance Committee meeting held on
May 18, 2009. The motion was seconded by Alderman Novit. The motion carried unanimously by voice
vote.
III. Discussion of the FY2011 Budget Calendar
Ms. Kathleen Reinertsen, Finance Director reviewed the budget calendar with the committee. Chairman
Grumhaus requested that committee members check their calendars and let him know as soon as possible
who cannot make the meetings, especially the March 15, 2010 meeting.
Alderman Hanrahan made a motion to approve the FY2011 Budget Calendar. The motion was seconded
by Alderman Palmer. The motion carried unanimously by voice vote.
IV. Review of the Capital Improvement Fund and Request to Approve a Priority #2 Project
Ms. Reinertsen stated that during the FY2010 budget process, every capital project was classified as
Priority #1, #2 or #3. She stated that, Priority #1 projects were funded; Priority #2 projects would only be
funded if the real estate transfer tax met budget expectations and Priority #3 projects were not funded.
Real estate transfer tax revenue was budgeted at $890,000 for FY2010 and has been revised to $740,000.
To date, a $30,000 savings from Priority #1 capital projects has been realized and $78,000 of funds from
various closed projects has been transferred into the Capital Improvements Fund. Ms. Reinertsen
reviewed with the committee the Five Year Fund Balance Report for the Capital Improvement Fund.
Ms. Reinertsen stated that approval is being sought for contractual street patching for Washington,
Wisconsin and Old Elm Roads at a cost of $115,000.
Mr. Ken Leone, Superintendent of Public Works reviewed the proposal from Peter Baker with the
committee. He stated that the proposal is higher than what was first quoted in July 2009 because Peter
Baker has completed their work in the city and will need to remobilize their equipment to perform this
job. Mr. Leone stated that neighbors that lived on Washington and Wisconsin Roads had expressed
concern about the condition of these roads and were invited to come to this meeting.
Mr. Ramesh Kanapareddy, Assistant City Engineer, stated that Old Elm Road can be postponed to
FY2011.
Committee members directed staff to contact the vendors again and negotiate a lower price.
Finance Committee Meeting
Minutes – September 21, 2009
2
A motion was made by Alderman Morsch, seconded by Alderman Palmer, for the cost of street patching
on Washington and Wisconsin Roads to not exceed $55,000 and for Chairman Grumhaus and Alderman
Looby to review and approve the proposals that the Assistant City Engineer will obtain.
V. Review of the General Fund and Water and Sewer Fund
Ms. Reinertsen stated that Chairman Grumhaus requested a review of the FY2010 General Fund and
Water and Sewer Fund budgets as well as updated projections through FY2014. She stated that this is a
preliminary look at the City’s budget forecast and will be modified again in November when 6 months of
the fiscal year are complete. She stated that the revenues and expenses of the Water and Sewer Fund are
on budget. She stated that in November, water plant pumpage and billing volumes will be reviewed with
the committee. There is more concern with the General Fund. She reviewed with the committee future
increases for payroll and benefits especially the rising cost of pensions and medical insurance. She stated
that the future looks challenging but the staff is keeping on top of it.
VI. Review of a Contract with Credentials Solutions for Processing Vehicle Licenses and Parking
Permits with Internet Payment Capability
Ms. Reinertsen stated that in 2006, the City Council approved a 3 year contract with Credentials Inc. for
an internet based payment system for vehicle stickers, pet licenses and parking permits. A new 3 year
contract with Credentials Solutions ( the company changed their name) contains an average 6.25%
increase in transaction fees while credit card fees will remain the same at 2.90%. In 2006, the City
Council chose to absorb all costs. The program has been successful with about 54% of transactions
occurring on line, 15% in the mail and 31% at the Municipal Services Building. 67% of residents chose to
have their application sent in the US mail while 33% have it sent via email. Some residents are hesitant to
use the internet due to lack of a computer, limited computer skills or fear of the email going to spam. The
amount paid to Credentials is estimated at $99,000 (this includes materials, postage, credit card fees and
processing costs) and is variable based upon the method of application delivery and sticker purchase.
Committee members discussed whether or not to recover some of the cost of this service. The consensus
of the committee was to have staff come up with options to recover all of the costs of this service. In
addition, staff was directed to come up with a fee incentive to encourage online usage. This incentive
would be presented at the November Finance Committee meeting during the FY2011 fee discussion.
Motion was made by Alderman Looby, seconded by Alderman Palmer to approve the 3 year contract with
Credentials Solutions.
VII. Other Business
None
VIII. Opportunity for the Public to Address the Finance Committee
None
IX. Adjournment
There being no further business, Alderman Morsch moved, seconded by Alderman Looby to adjourn the
meeting at 7:28 p.m. The motion carried unanimously by voice vote.
Respectfully submitted,
Louise Breckan
Assistant Finance Director