FINANCE COMMITTEE 2011/11/21 Minutes
The City of Lake Forest
FINANCE COMMITTEE
Proceedings of the November 21, 2011 Meeting
5:30 p.m. – City Hall Council Chambers
I. Call to Order and Roll Call
Chairman Pandaleon called the meeting to order at 5:30 p.m. Present: Mayor Cowhey,
Chairman Pandaleon, Aldermen Novit, Waldeck, Schoenheider and Adelman. Absent:
Aldermen Moore, Morsch and Palmer. Quorum present. There were ten people present in the
audience.
Staff present: Robert Kiely, City Manager; Kathleen Reinertsen, Finance Director; Louise
Breckan, Assistant Finance Director; DeSha Kalmar, Director of Human Resources; Michael
Thomas; Director of Public Works; Ramesh Kanapareddy, City Surveyor and Engineer; Dan
Martin, Superintendent of Public Works and Diane Hall, Senior Accountant.
II. Consideration of Minutes from the Finance Committee Meeting Held on September 19, 2011
Alderman Adelman made a motion to approve the minutes from the Finance Committee
meeting held on September 19, 2011. The motion was seconded by Alderman Novit. The
motion carried unanimously by voice vote.
Alderman Palmer entered the meeting at 5:35 p.m.
III. Flash Report for October 2011
Ms. Reinertsen, Finance Director stated that the City is halfway through its fiscal year and there
are no concerns. Building permits are up this year. Real estate transfer taxes are now
projected to exceed budget by $100,000. Expenses for the General Fund are tracking on
budget. Expenses for the Water and Sewer Fund are tracking below budget.
IV. Capital Fund Reports
Ms. Reinertsen reviewed the Five Year Fund Balance reports for the Motor Fuel Tax Fund, Park
and Public Land Fund, Water and Sewer Fund and the Capital Improvement Fund. She
explained the major revenue source(s) for each of these funds. Mr. Kiely noted that in the
Water and Sewer Fund, staff is trying to match the water rate increases to the CPI. However,
staff will be looking at the fund’s expenses each year so that the fund maintains its fund
balance.
V. Five Year Capital Improvement Program
Mr. Kiely stated that staff presents the projects now so that the Engineering Department can
start the bid process. Projects are planned to be bid out in late spring in order to take
advantage of better pricing. Mr. Kiely noted to the members of the Finance Committee that
the capital improvement projects have been assigned three priorities by staff. Only the
number one priorities are able to be funded in FY2013. However, please let staff know if a
project should be a higher priority. He noted that Priorities 2 and 3 will eventually become
Priority 1.
FY2012 Project Recap and Consortium Report – Mr. Ramesh Kanapareddy, City Engineer and
Surveyor stated that this is the first year that the City has partnered with other communities.
Twenty communities participated in this partnership. Lake Forest saved $50,000 by partnering
with several communities on the annual overlay project.
Mr. Kanapareddy showed a map of the location of the twelve city projects completed in
FY2012. The budget for these twelve projects was $5.3 million and the City spent $4.6 million.
Annual Street Overlay Program – Mr. Kanapareddy showed a map of the completed project.
The list of streets was generated by the 2010 pavement management study. City Council
agreed to maintain a 75 rating which means spending annually $1.7 million to $2 million.
Finance Committee Meeting
Minutes – November 21, 2011
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Westleigh and Waukegan intersection – Mr. Kanapareddy stated that the City is in the process
of applying for grants to fund this $1.7 million dollar project.
Water mains – The annual projects are determined by how many breaks, the capacity of the
water main, material of the water main and coordination with the street overlay program.
South Beach Access Road – Mr. Kanapareddy showed the Committee pictures of the
completed project. The project was necessary due to erosion of the bluff which was causing
the undermining of the curb and road. The tentative opening of the road is November 28.
Emergency Generator Back-Up Report – Mr. Dan Martin, Superintendent of Public Works stated
the study was conducted due to the spring storm damage which caused power outages and
disruption of city services. Elara Engineering was hired to look at key public buildings, City Hall,
Deerpath Golf Course, Recreation Center and Dickinson Hall (Senior Center) and present
options for the installation of permanent and/or portable gas driven motor-generator sets at
these facilities. Mr. Martin briefly reviewed the options with the Committee. He stated that the
study will be presented before the Public Works Committee and their recommendations will be
presented at a future City Council meeting.
VI. Health Insurance Renewal
Ms. DeSha Kalmar, Director of Human Resources stated that 26 vendors and carriers were sent
a RFP. The PCA Committee met on November 14 and recommended approval of the
following vendors: retain Professional Benefit Administrators (PBA) for administration and billing
services, change preferred provider network to CIGNA through PBA, retain ING for stop loss
coverage, retain Excess Health/National Union Fire Insurance for Transplant Coverage which is
a component of stop loss coverage, retain Serve You Rx for pharmacy card services and
retain CIGNA for life insurance. Mr. Peter Wright with Wright Benefit Strategies Inc. reviewed the
selection process with the Committee.
VII. Tax Levy Ordinance
Ms. Reinertsen stated that the City follows the property tax cap which is the CPI plus new
growth. This year, the tax levy was increased by 1.5%. However, due to the decrease in the
bond levies, the 2011 tax levy decreased 1.74% over the 2010 Tax levy extension. The City’s
EAV also decreased which resulted in a projected 2.19% decrease to a homeowner in The City
of Lake Forest’s portion of the tax bill.
VIII. Bond Abatement Ordinances
Ms. Reinertsen stated that these ordinances provide for the abatement of 2011 taxes levied for
the various outstanding general obligation alternate revenue bond issues. The tax levies for all
bond issues are established and recorded with the County Clerk at the time the bonds are
issued. Therefore, in order to reduce the bond tax levies, an abatement ordinance must be
approved and filed with the County Clerk. The abatement of these general obligation
alternate revenue bonds is possible due to the fact these bond funds have an adequate
revenue source from water sales, Cemetery revenue, golf fees, sales tax or payments from the
U.S. Treasury.
IX. Fee Schedule
Ms. Reinertsen stated that there are increases to fees that need to be approved for the FY2013
Budget. At the July 18, 2011 meeting, the City Council requested that an ordinance be written
so that the City Council can approve annual fees for the Parks and Recreation Fund and the
Senior Resources Fund. The annual fees are included in the fee ordinance. Ms. Reinertsen
stated that there are new Community Development fees and if the Committee agrees with
these new fees, then Ms. Cathy Czerniak, Director of Community Development will present the
ordinance for these new fees at a future meeting.
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Motion was made by Alderman Novit, seconded by Alderman Palmer to approve the
Ordinance approving the FY2013 Increases in Fees and the Ordinance Regarding Certain Fees
for the Parks and Recreation Department and the Senior Center. The motion carried
unanimously by voice vote.
X. Other Business: None.
XI. Opportunity for the Public to Address the Finance Committee: None.
XII. Adjournment
There being no further business, Alderman Novit moved, seconded by Alderman Adelman to
adjourn the meeting at 7:00 p.m. The motion carried unanimously by voice vote.
Respectfully submitted,
Louise Breckan
Assistant Finance Director