Loading...
FINANCE COMMITTEE 2011/03/21 Minutes The City of Lake Forest FINANCE COMMITTEE Proceedings of the March 21, 2011 Budget Meeting 3:30 p.m. – City Hall Council Chambers I. Call to Order and Roll Call Chairman Grumhaus called the meeting to order at 3:35 p.m. Present: Mayor Cowhey, Chairman Grumhaus, Aldermen Novit, Moore, Morsch, and Looby. Absent: Aldermen Widman, Schoenheider and Palmer. Quorum present. There were approximately fourteen people present in the audience of which eleven were city staff. Staff present: Robert Kiely, Jr., City Manager; Kathleen Reinertsen, Finance Director; Louise Breckan, Assistant Finance Director; Mary Van Arsdale, Director of Parks and Recreation; Jeff Howell, Fire Chief; Ken Magnus, City Engineer; Ramesh Kanapareddy, Assistant City Engineer; Carina Walters, Assistant City Manager and Diane Hall, Senior Accountant. Others: Ward 1 Aldermanic Candidate Catherine Waldeck and Ward 4 Aldermanic Candidate Michael Adelman. II. Consideration of Minutes from the Finance Committee Meeting Held on February 22, 2011 Alderman Looby made a motion to approve the minutes from the Finance Committee meeting held on February 22, 2011. The motion was seconded by Alderman Novit. The motion carried unanimously by voice vote. III. Overview of FY2012 Budget Opening Comments by City Manager – Mr. Robert Kiely, City Manager stated the City has navigated itself into a healthy financial position even though the past two years were very challenging. He stated that revenues are beginning to grow but the FY2012 budget does not take into account the current financial situation of the State of Illinois. He stated that at today’s meeting he is seeking direction from the Committee so that staff can finalize the FY2012 Budget documents. He stated that the FY2012 Budget will be approved at the May 2, 2011 meeting. FY2011 Monthly Flash Report – Ms. Kathleen Reinertsen, Finance Director reviewed February 2011 Flash Report with the committee. There were no areas of concern. Five Year Fund Balance Forecast (General Fund) – Ms. Reinertsen reviewed the forecast with the committee. She stated that the next five years of operating revenues will be covering the operating expenses. Review of FY2012 vs. FY2011 – Revenue and Expenses – Ms. Reinertsen reviewed several reports with the committee. She noted that the General Fund’s FY2011 estimated actual revenues are projected to be 1% over the General Fund’s FY2011 budgeted revenues, The General Fund’s FY2012 budgeted revenues are projected to increase 2.4% over the General Fund’s FY2011 budgeted revenues. Ms. Reinertsen reviewed a Five Year Payroll Forecast with the committee. IV. Operating Revenues and Expenditures – General Fund Revenues Lake Bluff Service Agreement – Mr. Kiely stated that for a number of years, the City has had a service agreement with the Village of Lake Bluff to provide Lake Bluff residents with ambulance service, cable tv, senior center services, CROYA services and building inspections for a fee. The Village of Lake Bluff is requesting that the building inspection and ambulance charges be revamped and staff is currently analyzing the Village of Lake Bluff’s proposal. Once staff has reviewed, the agreement will be discussed at a future City Council meeting. Finance Committee Meeting Minutes – March 21, 2011 2 Ambulance Fees – Mr. Jeff Howell, Fire Chief provided a brief history of ambulance transport statistics, current ambulance charges and proposed options. Following discussion, the consensus of the committee was to go with option B which raises the ambulance rates to the average of the surrounding municipalities and revisits the Village of Lake Bluff’s recent ambulance transport fee increase in a year. The Committee requested that Chief Howell provide two pricing options, find out what other communities are charging and the breakdown of the number of transports by type at a future City Council meeting. Alderman Palmer entered the meeting at 4:20 p.m. Expenditures Economic Development – Mr. Kiely reviewed the proposed FY2012 Economic Development Budget with the committee. He stated that the budget increased for special events and retail recruitment by $15,000 over FY2011. This increase is in keeping with the goal to enhance the business district. Additionally, there is $19,000 in the capital improvement budget for CBD directory and signage. Information Technology – Ms. Reinertsen gave an overview of the restructuring of the Finance and IT Departments, the FY2011 projects that have been completed and the FY2012 projects. Mr. Kiely announced that the City has received for the 32nd consecutive year, the Government Finance Officers Association’s (GFOA) Certificate of Achievement for Excellence in Financial Reporting for its FY2010 Comprehensive Annual Financial Report (CAFR). V. Capital Expenditures FY2012 Capital Improvement Program (CIP) South Beach Access Road – Mr. Kiely announced that there will be future meetings with the Public Works Committee regarding the South Beach Access Road. At this time, the City does not have any detailed engineering plans. The decision at this budget meeting is for the committee to decide on a design. Mr. Ken Magnus, City Engineer reviewed the five alternative designs with the committee. Following discussion, a consensus of the committee approved the roadway realignment at an estimated cost of $600,000. This design addresses the need for a stable roadway, stabilizes the bluff and ravine slopes, has better sight lines for motorists and there is a limited area of disturbance to the existing landscape. Townline Community Park – Mr. Kiely stated that $140,000 for the playground at the Townline Community Park was added to the CIP after the November 2010 meeting. Funding for the playground is from the remaining money from the debt service fund for the 2003A Bond issue (matured December 15, 2010) which purchased this property. Bids for this project will be in summer 2011 with construction to be completed by fall 2011. Modifications from November 2010 Draft – Mr. Kiely stated that the revisions to the CIP since the November 2010 meeting were highlighted on the report that was included in the meeting packet. Five Year Fund Balance Forecast – Capital Improvement Fund, Motor Fuel Tax Fund, Park and Public Land Fund – Ms. Reinertsen noted that for the Capital Improvement Fund there are no anticipated bond issues until FY2014. There are no concerns with the Motor Fuel Tax Fund. For the Park and Public Land Fund, projects will be postponed to a future year if the impact fee revenue is not received in FY2012. Finance Committee Meeting Minutes – March 21, 2011 3 VI. Other Funds Deerpath Golf Course Fund – Ms. Reinertsen reviewed the Five Year Fund Balance Forecast with the committee. She noted that the revenues do not reflect any estimated decrease when the Ft. Sheridan Golf Course is opened or the added expense for the federal required health benefits in FY2014. Mr. Kiely stated that the National Golf Foundation Operational Study was included in the meeting packet. He stated that staff is proposing to move forward with developing and disseminating an RFQ for a leased/hybrid management option to better gauge and compare self-management to leased management opportunities. Staff would bring back the RFQs to the Park and Recreation Board and City Council. TIF Fund – Mr. Kiely stated that the close out date for projects is December 31, 2011. Any money left in the TIF Fund will be distributed to the taxing bodies by the County. Water and Sewer Fund – Ms. Reinertsen reviewed the Five Year Fund Balance Forecast with the committee. She stated that projected future water rates are following the projected increase in the CPI. The forecast funds all of the capital improvements and the required debt coverage. Ms. Reinertsen stated that surrounding communities were surveyed for water rates. The proposed water rate, which was increased by 2.7%, falls in the middle of the communities. The ordinance to approve the proposed water rate will be presented at the April 4 City Council meeting. Housing Trust Fund – Mr. Kiely stated that the Housing Trust Board met recently. Included in the packet is a Five Year Fund Balance Forecast. VII. Studies & Future Considerations Mr. Kiely stated that the federal grant for the east side train station renovation was approved. The project consists of installing a new roof and exterior renovation of the wood and masonry. Mr. Kiely stated that staff has applied for a grant for the Amtrak service and is waiting to hear back. Mr. Kiely stated that the City is waiting for the 10 year report from the North Shore Sanitary District. Mr. Kiely stated that the City applied for the recycling grant in the middle of March 2011 and the municipalities awarded the grant will be notified in May 2011. Mr. Kiely stated that the Senior Foundation approached him to cost share with a senior advocate position. Mr. Kiely stated that staff will review over the next 3 to 6 months and bring back to the City Council. Chairman Grumhaus and committee members thanked the staff for their hard work on the budget. VIII. Opportunity for the Public to Address the Finance Committee: None IX. Adjournment There being no further business, Alderman Looby moved, seconded by Alderman Palmer to adjourn the meeting at 6:10 p.m. The motion carried unanimously by voice vote. Respectfully submitted, Louise Breckan Assistant Finance Director