FINANCE COMMITTEE 2013/10/21 Minutes
The City of Lake Forest
FINANCE COMMITTEE
Proceedings of the October 21, 2013 Meeting
6:30 p. m. – City Hall Council Chambers
I. Call to Order and Roll Call
Chairman Pandaleon called the meeting to order at 6:35 p.m. Present: Chairman Pandaleon,
Mayor Schoenheider, Aldermen Novit, Waldeck, Moore, Tack, Palmer and Adelman. Absent:
Alderman Reisenberg. Quorum present. There were approximately 10 present in the
audience.
Staff present: Robert Kiely, Jr., City Manager; Elizabeth Holleb, Finance Director; Diane Hall,
Assistant Finance Director; Michael Thomas, Director of Public Works; Cathy Czerniak, Director
of Community Development; Victor Filippini, City Attorney.
Others present: Trip Pierce, Mayor for the Day.
II. Consideration of Minutes from the Finance Committee Meeting Held on September 30, 2013
Alderman Moore made a motion to approve the minutes from the Finance Committee
meeting held on September 30, 2013. The motion was seconded by Alderman Palmer. The
motion carried unanimously by voice vote.
III. Consideration of the FY2013 Treasurer’s Report
Ms. Elizabeth Holleb, Finance Director reviewed the State Statute requirement of filing a
Treasurer’s report with the County, as well as publishing in the local newspaper within six month
after the end of the fiscal year. She stated that the report would be published in the Lake
Forester on October 24, 2013. She stated the information was included in the packet.
Following discussion, Alderman Palmer moved, and seconded by Alderman Novit to
acknowledge receipt of the FY2013 Treasurer’s Report. The motion carried unanimously by
voice vote.
IV. FY2015 Mission Statement
Ms. Holleb stated at the September 30, 2013 Finance Committee meeting the Committee
proposed revisions to the City’s mission statement. She presented a revised mission statement
for the Committee’s consideration.
Following discussion, Alderman Waldeck moved to affirm the City’s FY2015 Mission Statement,
providing the word “to” be moved from the body of the statement to the beginning, the
motion was seconded by Alderman Palmer. The motion carried unanimously by voice vote.
V. 2013 Property Tax Levy Estimate
Ms. Holleb reviewed the proposed 2013 tax levy schedule with the Committee. She stated the
schedule will allow the correct timing to file with the County.
She reviewed the process the City uses for calculating the allowable tax levy. She stated the
Police and Fire required actuary values are used in the calculation for the balance to be used
for operations.
She reviewed the impact on a homeowner of an $800,000 home utilizing the maximum
increase of 1.7% tax cap. The increase would approximately be $82.00 for City and Library.
The Committee discussed the state funding in the General Fund, which equates to
approximately $1,700,000 in income taxes plus additional amounts for MFT. At the September
30, 2013 Finance Committee members discussed a possible option of increasing property taxes
Finance Committee Budget Meeting
Minutes – October 21, 2013
above the self-imposed limit if a specific purpose was identified. The Committee discussed a
concept whereby income taxes would transfer to the Capital Fund, as the Capital fund is
better able to sustain the loss of revenue. Debt can be issued to replace the reduced
revenue.
Ms. Holleb explained the increase in property taxes could be transitioned over a 3 year period,
with the average additional increase to an $800,000 homeowner of $65.00 per year. The
additional revenue the first year would be estimated at $580,000. A corresponding amount
would be transferred to the Capital Fund, resulting in no additional revenue to the General
Fund.
The Committee discussed the option of waiting until the State alters the amount of revenue to
the City, as well as the option of simply increasing property taxes to provide additional funding
for capital.
VI. Water Rate Structure
Ms. Holleb stated City staff is requesting direction from the Committee for establishing the
water rate structure for FY2015.
Ms. Holleb reviewed a Fixed Rate as well as a Variable Rate structure. She stated currently the
City has a blend between the two rate structures. She reviewed pro’s and con’s of both rate
structures. Weather and conservation impacts the variable rates.
She stated of the current rate, 13% of the rate is fixed. The fixed rate is dependent on the size
of the meter.
The Committee discussed the cost of the water system without usage and what fixed rate
would cover this value. The fixed rate could include a small base amount for those residents
that normally have small usage.
VII. Other Business
The Committee discussed the volume of RETT transactions has stayed the same, and now the
revenue is starting to increase.
The Committee requested from staff, a report showing the number of transactions by month as
well as the dollar per month of residential homes for the last two years.
VIII. Opportunity for the Public to Address the Finance Committee: None
IX. Adjournment
There being no further business, Alderman Palmer moved, seconded by Alderman Novit, to
adjourn the meeting at 7:39 p.m. The motion carried unanimously by voice vote.
Respectfully Submitted,
Diane Hall
Assistant Finance Director