FINANCE COMMITTEE 2010/04/19 Minutes
The City of Lake Forest
FINANCE COMMITTEE
Proceedings of the April 19, 2010 Meeting
6:30 p.m. – City Hall Council Chambers
I. Call to Order and Roll Call
Chairman Grumhaus called the meeting to order at 6:30 p.m. Present: Mayor Cowhey,
Chairman Grumhaus, Aldermen Novit, Goltra, Morsch, Hanrahan, Looby and Palmer. Absent:
Alderman Widman. Quorum present. There were two people present in the audience.
Staff present: Robert Kiely, Jr., City Manager; Kathleen Reinertsen, Finance Director; Louise
Breckan, Assistant Finance Director; Ramesh Kanapareddy, Assistant City Engineer; Diane Hall,
Senior Accountant; Carina Walters, Assistant to the City Manager and Victor Filippini, City
Attorney.
Others: Daniel Forbes, Vice President with Speer Financial.
II. Consideration of Minutes from the Finance Committee Meeting Held on March 15, 2010
Alderman Looby made a motion to approve the minutes from the Finance Committee
meeting held on March 15, 2010. The motion was seconded by Alderman Palmer. The motion
carried unanimously by voice vote.
III. Consideration of an Ordinance Authorizing the issuance of $18,425,000 General Obligation
Bonds, Series 2010A, 2010B and 2010C of The City of Lake Forest
Mr. Daniel Forbes, Speer Financial, stated that the bond sale went well. He stated that all of
these bond issues were rated Aaa by Moody’s Investors Service. There were six bids received
for Series 2010A, four bids received for Series 2010B and three bids received for Series 2010C.
The $10,000,000 General Obligation Bonds, Series 2010A which matures in 2015 has a true
interest rate of 2.3389%. The $3,000,000 Taxable General Obligation Bonds, Series 2010B
(Recovery Zone Economic Development Bonds- Direct Payment) which matures in 2032 has a
taxable bid true interest rate of 5.7723%. The effective true interest rate after the rebate is
3.1805%. The Series 2010B Bonds are eligible for payments from the U.S. Treasury in the amount
of 45% of interest costs. The $5,425,000 Taxable General Obligation Bonds, Series 2010C (Build
America Bonds – Direct Payment) which matures in 2029 has a taxable bid true interest rate of
5.0135%. The effective true interest rate after rebate is 3.2885%. The Series 2010C Bonds are
eligible for payments from the U.S. Treasury in the amount of 35% of interest costs. The
proceeds for all of the bond issues will be received on May 12, 2010.
Chairman Grumhaus thanked Finance Director Kathy Reinertsen and Mr. Forbes for all of their
hard work with these bond issues.
Alderman Looby moved, seconded by Alderman Novit to recommend to the City Council
approval of the Ordinance authorizing the issuance of the $18,425,000 General Obligation
Bonds, Series 2010A, 2010B and 2010C of The City of Lake Forest, Illinois. The motion carried
unanimously by voice vote.
IV. Consideration of an Ordinance making a Supplemental Appropriation for the Fiscal Year
Beginning
May 1, 2009 and Ending April 30, 2010
Ms. Reinertsen stated as advised by the City attorney, it is recommended to approve a
supplemental appropriation at the end of each fiscal year for any fund that will exceed the
original appropriation.
The Self Insurance Fund medical and dental expense is more than budgeted due to several
large claims. This expense is covered by fund balance. A supplemental appropriation of
$100,000 is required.
Finance Committee Meeting
Minutes – April 19, 2010
2
The Liability Insurance Fund was established in January 2010 for payments to IRMA. The
expense is covered by transfers from the General, Water, Parks and Recreation, Golf and
Cemetery funds. A supplemental appropriation of $436,000 is required.
Alderman Morsch moved, seconded by Alderman Looby to recommend to the City Council
approval of the Ordinance making a Supplemental Appropriation and corresponding
adjustment to the Comprehensive Fiscal Plan for the Fiscal Year Beginning May 1, 2009 and
Ending April 30, 2010. The motion carried unanimously by voice vote.
V. Budget Issue Update
Mr. Robert Kiely, City Manager updated the committee with the status of the issues brought up
at the March 15, 2010 Finance Committee meeting. Most of the items will be discussed at
future Public Works Committee meetings.
VI. Other Business
March 2010 Financial Flash Report - Chairman Grumhaus stated that he asked the Finance
staff to prepare a 3 year revenue comparison for utility taxes. Chairman Grumhaus stated
that there was a small increase in General Fund revenues.
Since time remained, Alderman Looby, Chairman of the Public Works Committee, reviewed his
report that he will be presenting at tonight’s City Council meeting with the committee.
Mr. Ramesh Kanapareddy, Assistant City Engineer stated that the City whenever possible is
trying to lessen the impact to the residents when undertaking major city projects. Mr.
Kanapareddy showed the committee the 2010 Regional Major Construction Timeline.
VII. Opportunity for the Public to Address the Finance Committee: None.
VIII. Adjournment
There being no further business, Alderman Looby moved, seconded by Alderman Palmer to
adjourn the meeting at 7:20 p.m. The motion carried unanimously by voice vote.
Respectfully submitted,
Louise Breckan
Assistant Finance Director