FINANCE COMMITTEE 2010/11/15 Minutes
The City of Lake Forest
FINANCE COMMITTEE and PUBLIC WORKS COMMITTEE
Proceedings of the November 15, 2010 Meeting
5:00 p.m. – City Hall Council Chambers
I. Call to Order and Roll Call
Chairman Grumhaus called the meeting to order at 5:00 p.m. Present: Mayor Cowhey,
Chairman Grumhaus, Aldermen Novit, Widman, Moore, Schoenheider and Looby.
Absent: Aldermen Morsch and Palmer. Quorum present. There was fourteen present in the
audience.
Staff present: Robert Kiely, City Manager; Kathleen Reinertsen, Finance Director; Louise
Breckan, Assistant Finance Director; Ken Magnus, City Engineer; Carina Walters, Assistant City
Manager; Ramesh Kanapareddy, Assistant City Engineer and Diane Hall, Senior Accountant.
II. Consideration of Minutes from the Finance Committee Meeting Held on October 18, 2010
Alderman Looby made a motion to approve the minutes as presented. The motion was
seconded by Alderman Novit. The motion carried unanimously by voice vote.
III. Flash Report
Alderman Palmer entered the meeting at 5:06 p.m.
Ms. Kathleen Reinertsen, Finance Director reported that with 50% of the fiscal year complete,
there are no areas of concern.
IV. Capital Funds Reports
Infrastructure Report Card - Mr. Robert Kiely, City Manager stated that since FY1990, city staff,
with final approval from City Council members, has assigned a grade to infrastructure areas.
He stated that it is presented at this time so that staff allocates resources for the priorities of the
City Council. This report is updated every two years. Mr. Kiely stated that Information
Technology (IT) projects will be added to this report card and he will be sending that to the
City Council shortly. The Committee is to contact Mr. Kiely if they have any changes.
Five-Year Fund Balance Forecast for Capital Improvement, Motor Fuel Tax, Park and Public
Land and Water and Sewer Capital Funds – Ms. Reinertsen stated that in the Capital
Improvement Fund, only the #1 priority projects are being funded in FY2012. She stated that
there is no bond issue in FY2012 because the $2 million loan for Ragdale has been removed
from this fund and the General Fund will loan the money at a 2 ½% interest rate. There were no
concerns with the Motor Fuel Tax (MFT) Fund. The concern with the Park and Public Land is
impact fee revenue which means park improvements will need to be funded from the Capital
Improvement Fund. There were no concerns with the Water and Sewer Capital Fund. Annual
5% water rate increases are forecast for the next 5 years.
V. 5 Year Capital Improvement Program
CIP Projects – Mr. Kiely stated that there is a report in the packet that summarizes the changes
to the 5 year Capital Improvement Program from last year to this year.
Annual Street Overlay Program – Mr. Ken Magnus, City Engineer reported on the results of the
pavement condition tests performed by Innovative Material Systems (IMS). He stated that
Finance Committee and Public Works Committee Meeting
Minutes – November 15, 2010
2
twenty communities averaged a 74.4 rating and Lake Forest has a 77 rating. He stated that in
order for the City to maintain a satisfactory rating of 75, the City will need to spend $2 million
per year for paving roads. Mr. Magnus reviewed a proposed Five Year Pavement Resurfacing
Program with the Committee.
Lake Road Resurfacing and South Beach Access Road – Mr. Magnus reviewed the project
details with the Committee. He stated that the project is anticipated to start in the middle of
September 2011. These two projects are not related to the Forest Park Master Plan.
5 Year Watermain Replacement Program – Mr. Magnus reviewed a map of the areas where
the watermains are proposed to be replaced in the next five years.
Chairman Grumhaus asked the Committee to review the #2 and #3 priority projects and
respond back to him with any questions or comments.
Mr. Kiely noted that the replacement plan for personal computers will come before the City
Council. The amount in the capital improvement plan is a placeholder.
Mr. Kiely told the Committee that the City is a member of a group of municipalities interested
in joint purchasing or sharing services. Mr. Michael Thomas, Superintendent of Public Works will
present a report to the Finance Committee in January 2011
Chairman Grumhaus announced that the order in the agenda is being changed. Executive
session will be moved to the end of the agenda.
VI. Other Business: None.
VII. Opportunity for the Public to Address the Finance Committee: None.
VIII. Executive Session
Alderman Looby moved, seconded by Alderman Novit to adjourn the meeting at 6:40 p.m.
and to go into Executive Session for the purpose of discussing the ERI program. The following
voted “aye”: Cowhey, Grumhaus, Novit, Widman, Moore, Schoenheider, Looby, Palmer. The
following voted “nay”: none. The motion carried unanimously.
Following the Executive Session discussion, Alderman Looby moved, seconded by Alderman
Palmer to adjourn the Executive Session at 7:29 p.m. and to reconvene back into Open
Session. The following voted “aye”: Cowhey, Grumhaus, Novit, Widman, Moore, Schoenheider,
Looby, Palmer. The following voted “nay”: none. The motion carried unanimously.
IX. Adjournment
There being no further business, Alderman Palmer moved, seconded by Alderman Novit to
adjourn the meeting at 7:30 p.m. The motion carried unanimously by voice vote.
Respectfully submitted,
Louise Breckan
Assistant Finance Director