FINANCE COMMITTEE 2012/12/03 Minutes
The City of Lake Forest
FINANCE COMMITTEE
Proceedings of the December 3, 2012 Meeting
6:30 p. m. – City Hall Council Chambers
I. Call to Order and Roll Call
Chairman Pandaleon called the meeting to order at 6:40 p.m. Present: Chairman Pandaleon,
Aldermen Novit, Waldeck, Moore, Schoenheider, Palmer and Adelman. Absent: Mayor
Cowhey and Alderman Tack. Quorum present. There were approximately 10 people 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; Mary Van
Arsdale, Director of Parks and Recreation; Victor Filippini, City Attorney.
II. Consideration of Minutes from the Finance Committee Meeting Held on November 19, 2012.
Alderman Schoenheider made a motion to approve the minutes from the Finance Committee
meeting held on November 19, 2012. The motion was seconded by Alderman Novit. The
motion carried unanimously by voice vote.
III. Authorize a Payment to the Illinois Municipal Retirement Fund (IMRF) in the Amount of
$3,735,867 to Retire in Advance the Early Retirement Incentive (ERI) Program Liability
Ms. Elizabeth Holleb, Finance Director explained that City staff has worked with IMRF to
calculate the liability for the ERI balance as of December 31, 2012, while removing the portion
included in the 2013 rate. She explained that the payment would be allocated between the
City, Library and School District. The City’s portion will be allocated between the General,
Water and Parks and Recreation Funds. She explained the School district will approve on
December 11 and the Library Board will approve in January 2013. The City will make the
Library payment and will then formalize a payment agreement. She explained the General
Fund will loan the Water Fund to maintain the required reserve balances and the Parks and
Recreation Fund has sufficient reserves to cover the cost of the advance payment. The
payment request is the combination of the City and Library. She stated the estimated interest
savings is $1.8 million.
Following discussion, Alderman Novit moved, and seconded by Alderman Palmer to authorize
the payment of $3,735,867 to IMRF to retire the Early Retirement Incentive program liability,
with the provision the School District approves on December 11, 2012.
IV. Liability Insurance Fund – Optional Deductible Recommendation for 2013
Ms. Holleb stated the preliminary figures presented in October were based on an actuary
calculation using 2012 member contribution with IRMA. She explained the initial
recommendation generated a savings if the deductible was raised to $50,000 or $100,000. She
stated the City has received the 2013 member contribution. She stated that based on the
new contribution rate and final analysis, City staff is recommending leaving the deductible at
$25,000. City staff will meet with IRMA in January to review our calculations, demonstrating a
higher deductible does not reduce member contributions.
V. Finance Committee Calendar
Ms. Holleb discussed due to the large volume of topics presented at the November 19, 2012
budget meeting, City staff has developed a calendar of policy topics to be discussed at the
Finance Committee meetings through April 2013. She reviewed potential topics for each of
the upcoming months.
Committee members discussed dividing the multitude of topics from the November budget
meeting to other meetings would be appreciated.
Finance Committee Meeting
Minutes – December 3, 2012
VI. Other Business
1) The November Flash report will be distributed to Committee members via drop box on
Monday December 17th.
2) Ms. Holleb stated the annual Joint Review Board for the TIF district was held on November
27th. She explained all funds are to be spent by December 31, 2012. She explained the
surplus in the fund will be distributed to the different tax bodies. The City’s portion will be
approximately $468,000.
VII. Opportunity for the Public to Address the Finance Committee: None
VIII. Adjournment
There being no further business, Alderman Palmer moved, seconded by Alderman Novit to
adjourn the meeting at 7:05 p.m. The motion carried unanimously by voice vote.
Respectfully Submitted.
Diane Hall
Assistant Finance Director