FINANCE COMMITTEE 2010/06/21 Minutes
The City of Lake Forest
FINANCE COMMITTEE
Proceedings of the June 21, 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 6:34 p.m. Present: Mayor Cowhey,
Chairman Grumhaus, Aldermen Novit, Widman, Moore, Morsch, Looby and Palmer. Absent:
Alderman Hanrahan. Quorum present. There were four 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; Michael
Thomas, Superintendent of Public Works; Peter Gordon, City Forester and Parks and Forestry
Supervisor; Diane Hall, Senior Accountant; Carina Walters, Assistant to the City Manager and
Victor Filippini, City Attorney.
Others: Five members of the City’s staff.
II. Consideration of Minutes from the Finance Committee Meeting Held on April 19, 2010
Alderman Looby made a motion to approve the minutes from the Finance Committee
meeting held on April 19, 2010. The motion was seconded by Alderman Novit. The motion
carried unanimously by voice vote.
III. Appropriation Ordinance
Ms. Kathleen Reinertsen, Finance Director stated that while the annual municipal budget
represents the City’s financial plan for expenditures over the course of the fiscal year, the
annual Appropriation Ordinance is the formal legal mechanism by which the City Council
authorizes the actual expenditures of funds budgeted in the annual budget. State statutes
require the passage of an Appropriation Ordinance which must be filed with the County Clerk
by the end of July. The Appropriation Ordinance provides for a 10% contingency in the
expenditures in an amount above those actually budgeted. City staff follow the adopted
budget as its spending guideline, not the Appropriation Ordinance. In addition, in order to
provide more accurate and efficient accounting and budgeting of City funds, an annual
rollover of funds is required. This eliminates both under and over budgeting of funds in the new
fiscal year and is a widely used standard practice for most municipal governments. The items
on the attached rollover list consist of projects that were appropriated in FY2010 and will not
be completed until FY2011. School District 67 does not recognize the Appropriation
Ordinance in their budgeting or auditing standards. However, due to the fact they are a
special charter district, their budget must be included in our Appropriation Ordinance. School
District’s FY2011 Budget will not be available for the first reading but will be included in the
second reading of the ordinance. A public hearing will be held at the July 19, 2010 City
Council meeting. This notice will be published in the Lake Forester’s July 1, 2010 edition.
A motion was made by Alderman Palmer, seconded by Alderman Looby to approve the
Appropriation Ordinance and Rollovers. The first reading of the Appropriation Ordinance and
Rollovers will be presented at tonight’s City Council meeting.
IV. Review of the May 13, 2010 Storm / Flooding Event
Mr. Michael Thomas, Superintendent of Public Works briefly summarized the May 13, 2010 storm
as he had spoken to the City Council at a previous meeting. He reviewed the responsibilities
of City departments in the Rainfall Emergency Plan. He stated that the City received 78 calls
related to residential house flooding. 46 of the 78 calls were homeowner issues which need to
be repaired or addressed by the homeowner. The remaining 32 calls need to be investigated
by the City. Mr. Thomas stated that suggestions to help in preventing basement flooding for
residents will be posted on the City’s website.
Finance Committee Meeting
Minutes – June 21, 2010
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Mr. Thomas asked the Committee if they had any comments on the summary of the
ordinance that will be presented at the July 19th City Council meeting. The consensus of the
Committee was to revise the wording for the number of quotes (Residents are encouraged to
supply the City with multiple quotes) and increase the reimbursement amount to $3,000 per
household. The consensus of the Committee was to budget $30,000 for this program. The
Committee directed Mr. Thomas to survey the 32 households about this program and present
the results at the next meeting.
Chairman Grumhaus asked for public comment on this agenda item.
Mrs. McMenamin, 452 E. Old Elm described what happened to her property on May 13th. She
thanked the Committee for the cost sharing program but the cost of the overhead plumbing
system of $8,000 to $10,000 does not include landscaping which could add an additional
$5,000 onto the cost of this project.
Mrs. Swansen, Old Elm Rd, appreciated the cost share program but she asked the Committee
to consider giving more than $3,000.
A resident from Green Bay Rd, agreed with the comments presented by the other two
residents.
Chairman Grumhaus thanked the residents for coming to the meeting and sharing with the
Committee their viewpoints.
V. Emerald Ash Borer Update
Mr. Peter Gordon, City Forester and Parks and Forestry Supervisor updated the Committee on
the emerald ash borer (EAB) in Lake Forest. He stated the City continues to promote EAB
awareness thru media outlets, such as the Dialogue, website and informational brochures in
an attempt to keep EAB in the forefront of the community. He stated that City staff will
continue to work with licensed landscapers and tree care companies to identify treatment
options and to help educate the residents on the threat of EAB. While insecticidal treatments
have yielded positive results and is an advantageous management option for private
homeowners, the treatment of City ash trees continues to be cost prohibitive based on the
number of ash trees in the right of ways. Despite chemical prices decreasing recently, annual
costs to treat the City’s parkway ash trees could reach $115,000. City staff will continue to
remove infested trees before other ash trees and will continue to monitor public and private
properties for EAB infestations throughout the year. Mr. Gordon stated that Lake Forest has
been selected to be a part of a preventative treatment program. This program is called the
Legacy Tree Project and is funded 100% by the Valent U.S.A Corporation. Valent is paying for
one chemical application per year for the next five years for up to 200 ash trees. He stated
that information will be posted on the City’s website.
VI. Ad Hoc Parks and Recreation Committee Update
Chairman Grumhaus will present at tonight’s City Council meeting.
VII. Other Business: None.
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 7:35 p.m. The motion carried unanimously by voice vote.
Finance Committee Meeting
Minutes – June 21, 2010
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Respectfully submitted,
Louise Breckan
Assistant Finance Director