FINANCE COMMITTEE 2014/12/01 Minutes
The City of Lake Forest
FINANCE COMMITTEE
Proceedings of the December 1, 2014 Meeting
6:30 p. m. – City Hall Council Chambers
I. Call to Order and Roll Call
Chairman Pandaleon called the meeting to order at 6:30 p.m. Present: Chairman Pandaleon,
Aldermen Waldeck, Beidler, Reisenberg, Tack, Adelman and Moreno. Absent: Mayor
Schoenheider and Alderman Moore. Quorum present. There were approximately 25 present in
the audience.
Staff present: Robert Kiely, Jr., City Manager; Elizabeth Holleb, Finance Director; Diane Hall,
Assistant Finance Director; Cathy Czerniak, Director of Community Development; Michael
Thomas, Public Works Director; Jeff Howell, Fire Chief; Mary Van Arsdale, Director of Parks and
Recreation; Victor Filippini, City Attorney.
Others present: There were seventeen people in the audience.
II. Consideration of Minutes from the Finance Committee Meeting Held on November 5, 2014
Alderman Reisenberg made a motion to approve the minutes from the Finance Committee
meeting held on November 5, 2014. The motion was seconded by Alderman Beidler. The motion
carried unanimously by voice vote.
III. Bond Issue Timing
Ms. Elizabeth Holleb, Finance Director stated the bond issue timing was to be discussed at the
November 5, 2014 budget meeting but was deferred. She reviewed a schedule outlining debt
supported by the tax levy. She stated $4.8 million in debt is proposed to support capital projects.
She reviewed a schedule depicting the history of outstanding debt associated with the tax levy
from 2008. In 2004, a debt service cap was established at current debt levy. However, in 2013 the
City Council approved adjusting the maximum debt level by increasing the limit by the Municipal
Price Index each year, retroactive to 2004.
Ms. Holleb reviewed the Capital Project five year forecast showing bond proceeds of $4.7 million.
The proceeds are net of debt issuance costs. She stated the bond proceeds are not needed for
FY2015 to fund projects and could be deferred until FY2016. She stated if the bonds were issued in
FY2015, the proceeds would fall under negative arbitrage interest calculations. She reviewed a
schedule outlining an estimated break even schedule to delay the issuance of the bonds. She
stated there is potential to issue bonds for the redevelopment of Laurel Ave under a proposed Tax
Increment Financing District (TIF) and the bond issues could be issued at the same time to save on
issuance costs.
Ms. Holleb stated City staff’s recommendation is to wait until the TIF bonds are issued to issue the
debt to fund capital projects.
Committee Members discussed with Dan Forbes of Speer Financial the classification of bonds to
issue and the trending interest rates.
Committee member consensus was to delay the issuance of bonds until the TIF bonds are issued.
IV. Capital Budget
Ms. Holleb reviewed schedules requested by the Committee based on the November 5, 2014
budget meeting. She stated staff will be reviewing and making changes to the currently scored
projects. These revised scores will be brought back to the January 20, 2015 Finance Committee
meeting. She stated during the first quarter of 2015, staff will provide revised recommendations
for FY2017 – FY2020 to provide balanced expenditures.
Finance Committee Meeting
Minutes – December 1, 2014
V. Other Business:
The Committee discussed the shortage in revenue for water and Real Estate Transfer Tax. The
Committee discussed the fund balance for the water fund is kept higher to handle shortfalls in
revenue due to weather. Water projections are developed using a five year rolling average.
Mr. Michael Thomas, Public Works Director stated on the City Council agenda staff is requesting
approval of $208,000 for an ambulance. He stated staff had received a corrected quote that
afternoon increasing the price of the chassis from $47,000 to $57,000. He stated the budget for
the replacement is $250,000 and staff will be requesting $218,000 for approval. He stated the old
ambulance will be sold after the new one is received.
VI. Opportunity for the Public to Address the Finance Committee: None
VII. Adjournment
There being no further business, Alderman Moreno moved, seconded by Alderman Beidler, to
adjourn the meeting at 6:05 p.m. The motion carried unanimously by voice vote.
Respectfully Submitted,
Diane Hall
Assistant Finance Director