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FINANCE COMMITTEE 2009/11/16 Minutes Page 1 The City of Lake Forest FINANCE COMMITTEE Proceedings of the November 16, 2009 Meeting 5:00 p.m. – City Hall Council Chambers I. Call to Order and Roll Call Chairman Grumhaus called the meeting to order at 5:05 p.m. Present: Mayor Cowhey, Chairman Grumhaus, Aldermen Novit, Widman, Goltra, Morsch, Hanrahan and Palmer. Absent: Alderman Looby. Quorum present. There were approximately 17 present in the audience. Staff present: Robert Kiely, City Manager; Kathleen Reinertsen, Finance Director; Louise Breckan, Assistant Finance Director; Ken Magnus, City Engineer; Ramesh Kanapareddy, Assistant City Engineer; Rosemary Haack, Public Information Officer; Diane Hall, Senior Accountant and Carina Walters, Assistant to the City Manager. II. Consideration of the Minutes from the Finance Committee meeting held on September 21, 2009 Alderman Palmer stated that he believed that the Committee agreed to have staff come up with options to recover all of the internet processing fees associated with the on-line purchase of vehicle licenses and parking permits. This action should be noted in the September 21, 2009 meeting minutes. Alderman Morsch made a motion to approve the minutes from the Finance Committee meeting held on September 21, 2009 with the proposed change made by Alderman Palmer. The motion was seconded by Alderman Hanrahan. The motion carried unanimously by voice vote. III. Introduction – Core/Elective Mr. Robert Kiely, City Manager stated that the committee was given an updated core and elective memo for CROYA and Senior Resources. After discussing, the Committee did not have any changes to the memo. The Committee agreed that all core and elective memos were final. City staff can use the memos to make decisions during the FY2011 budget process as the City is facing a projected $500,000 revenue shortfall in the General Fund for FY2011. In January or February 2010 after city staff recommends cuts to programs, the Committee will decide how to communicate the decisions to the public. IV. Flash Report Ms. Kathleen Reinertsen, Finance Director stated that revenues in the October 2009 flash report are getting worse. She stated that she is in the process of reforecasting the Five Year Revenues for the General Fund. The Water and Sewer Fund will be discussed at the December 7, 2009 Finance Committee meeting. Mr. Kiely mentioned to the Committee that the FY2011 Budget Calendar was included in the meeting packet. He stated that at the March 15, 2010 Budget meeting, the Committee will be finalizing decisions on the FY2011 operating and capital budgets. V. Capital Fund Reports Infrastructure Report Card: Mr. Kiely stated that staff uses this infrastructure report card for recommending the funding of capital projects. The Committee did not have any changes. Finance Committee Meeting Minutes November 16, 2009 Page 2 Five Year Capital, PPL, MFT Fund Analysis: Ms. Reinertsen reviewed the Five Year Fund Balance Forecasts for the Capital Improvement Fund, Motor Fuel Tax Fund and the Park and Public Land Fund. The Water Fund Five Year Fund Balance Forecast will be reviewed at the December 7th meeting. Ms. Reinertsen reviewed the proposed bond issues in the Capital Improvement and Park and Public Land Funds with the Committee. VI. Five Year Capital Improvement Program (CIP) CIP Projects: Mr. Kiely stated that only Priority 1 projects are going to be discussed as the City can only fund Priority 1 projects in FY2011 due to limited resources. 1) Western Ave. Improvement Project: Mr. Kiely stated that Phase I has been completed. Phase II is scheduled to begin in March 2010 and finish by the end of July 2010. 2) CBD Train Station: Mr. Kiely stated that options will be reviewed over the coming year as the City’s lease expires in the fall of 2010. He stated that it will cost $3 million dollars to renovate the train station depot per the Historic Preservation Commission’s report. This report has been sent to Metra. The Committee directed Mr. Kiely to remove the $3 million from FY2013 but spend $100,000 to paint the building. 3) Street Program: Mr. Ramesh Kanapareddy, Assistant City Engineer explained that asphalt prices have increased over the past ten years. He stated that although the City Council has spent more money each year, the number of miles being repaired has declined. Mr. Ken Magnus, City Engineer reviewed the proposed 2010 Capital Improvement Program. He reviewed the memo on Concrete Streets. Mr. Magnus stated that although staff is recommending an annual budget of $100,000 to address concrete street, sidewalk and curb and gutter repairs, the City’s entire road system is being done by IMS next year so Engineering will be in a better position to budget for future concrete repairs. 4) Storm Sewer Lining Program: Mr. Magnus stated that there is a memo in the meeting packet about Sewer Lining. In summary, Engineering is recommending to annually fund sanitary sewer lining and to every other year fund storm sewer lining. 5) Special Service Area- Holland Court: Mr. Kiely stated that recently Holland Court homeowners approached the City to install curbs on their street. Mr. Kiely stated that this project is not in the capital improvement program. Mr. Kiely stated that in the past the City has created Special Service Areas for such projects. All six homeowners have agreed to pay 100% of the project. The Committee agreed to go forward with the special service area. The special service area will be discussed at the December 7, 2009 City Council meeting. If possible, the Committee requested that the CIP be printed out by project. Capital Equipment: Capital equipment will be presented at a later date pending the work of the Fleet Committee. VII. Debt Plan Ms. Reinertsen reviewed the Draft Schedule of Bond Issues with the Committee. She stated that this schedule is for planning purposes as no decision needs to be made now but in March 2010 when more information will be known about the Municipal Services Building and Capital Projects. VIII. 2009 Tax Levy Ordinance Ms. Reinertsen stated that the annual tax levy must be filed with the County Clerk before the last Tuesday in December. She stated that first reading approval of the 2009 tax levy ordinance is on tonight’s agenda for the City Council meeting. She noted that the tax levy ordinance includes the moving of the Forestry Department from the General Fund to the Parks and Recreation Fund. The Committee did not have any changes. IX. Bond Abatement Ordinances Finance Committee Meeting Minutes November 16, 2009 Page 3 Ms. Reinertsen stated that these bond abatement ordinances provide for the abatement of the 2009 taxes levied for the various outstanding general obligation alternate revenue bond issues. She stated that the abatement is possible as these bond funds have an adequate revenue source to pay for the bonds and the general obligation tax levy can be abated as was planned at the time the bonds were issued. She stated that first reading approval is on tonight’s agenda for the City Council meeting. X. Other Business Ordinance Approving a Fee Schedule: Ms. Reinertsen stated that the first reading approval of this ordinance is on tonight’s agenda for the City Council meeting. Ms. Reinertsen reviewed the proposed changes in the vehicle license fees with the Committee. She stated that the direction of the Committee was to encourage on-line purchase as well as recover all of the on-line costs. She stated that another proposal is to increase the senior discount age from age 65 to age 70 over the next 5 years. She noted that an analysis of vehicles purchased by seniors, age 65 and above, show that 74% of these vehicles are considered luxury vehicles. After discussion, the consensus of the Committee was to completely eliminate the senior discount and increase the vehicle license fees as proposed. Mr. Kiely stated that the Truck Licensing Fee has been tabled so it will not be discussed at tonight’s City Council meeting. XI. Opportunity for the Public to Address the Finance Committee None XII. Adjournment There being no further business, Alderman Novit moved, seconded by Alderman Goltra to adjourn the meeting at 7:25 p.m. The motion carried unanimously by voice vote. Respectfully submitted, Louise Breckan Assistant Finance Director