FINANCE COMMITTEE 2013/07/15 Minutes
The City of Lake Forest
FINANCE COMMITTEE
Proceedings of the July 15, 2013 Meeting
6:30 p. m. – City Hall Council Chambers
I. Call to Order and Roll Call
Mayor Schoenheider called the meeting to order at 6:34 p.m. Present: Mayor Schoenheider,
Aldermen Novit, Waldeck, Moore, Reisenberg, Tack, Palmer and Adelman. Absent: Chairman
Pandaleon. Quorum present. There were approximately 25 present in the audience.
Staff present: Robert Kiely, Jr., City Manager; Elizabeth Holleb, Finance Director; Cathy
Czerniak, Director of Community Development; Michael Thomas, Director of Public Works;
Victor Filippini, City Attorney; Joseph Gabanski, Assistant Director – IT; Marlo Del Percio, City
Attorney’s Office.
II. Consideration of Minutes from the Finance Committee Meeting Held on June 17, 2013
Alderman Palmer made a motion to approve the minutes from the Finance Committee
meeting held on June 17, 2013. The motion was seconded by Alderman Novit. The motion
carried unanimously by voice vote.
III. Potential Bond Refunding
Finance Director Elizabeth Holleb noted that the City issued bonds in 2010 to provide a large
portion of the financing for the Municipal Service Building. The 2010A issue of $9.665 million is
due in one lump sum on December 15, 2015. Because this payment was to be made from
proceeds of the Laurel Avenue property (old MS site), it has historically been omitted from debt
capacity calculations. Economic conditions have altered the projected schedule for
redevelopment of the Laurel Avenue site.
Due to several factors, it may be advisable for the City to consider a refunding of the 2010A
bond issue in 2013. Favorable bond market conditions, the possibility of the loss of tax-exempt
financing for municipal bonds, the 2010A issues becoming eligible for refunding in September
2013 and no other planned bond issuances in the current calendar year all provide incentives
to 2013 refunding. Director Holleb summarized a pro forma debt capacity graph depicting
current debt service obligations, projected debt service obligations of a 2013 refunding of the
2010A issue and projected debt service obligations of a new money issue planned for 2014.
The chart demonstrates that all can be accomplished without exceeding the City’s debt
service cap on annual debt service supported by property taxes.
Following discussion, it was the consensus of the Committee that staff should continue to
pursue this bond refunding and work with Speer Financial and the City’s bond counsel to draft
the preliminary official statement, bond ordinance and any other documents required for a
potential bond sale in calendar 2013.
IV. Long Term Financial Planning
Finance Director Elizabeth Holleb noted that during the Fiscal Year 2014 budget preparation,
long term financial forecasts of the General Fund and Capital Improvements Fund projected
shortfalls in the coming years. Prior to beginning the Fiscal Year 2015 budget development, it is
recommended that the Committee engage in a more detailed discussion of these forecasts.
In advance of this discussion, scheduled for August, City Manager Kiely and Finance Director
Holleb identified some data points that might be helpful to the deliberations, including
expenditure reduction strategies, the State’s budget and potential implications on the City’s
finances, current revenue sources, new revenue sources available to the City, debt capacity
and benchmark analysis. The Committee was asked to identify any other data points that
might be of interest. It was noted that expenditure reductions may also include privatization or
consideration of adjustments to service levels in certain areas. It was further requested that
property tax statistics would be another area of interest, with a designation of which
Finance Committee Budget Meeting
Minutes – July 15, 2013
comparable entities had separate park districts with their own levies. Staff will compile the
data for presentation at a future meeting.
V. Other Business
The Committee discussed the June 2013 flash report. Finance Director Elizabeth Holleb
reported on the revised procedures for tracking Oasis sales tax revenues, which are shared
50/50 in accordance with an intergovernmental agreement with Mettawa. City Manager
Kiely noted that the August 5 Finance Committee and City Council meetings would be
combined with a 6:30 p.m. start time.
VI. Opportunity for the Public to Address the Finance Committee: None
VII. Adjournment
There being no further business, Alderman Moore moved, seconded by Alderman Palmer, to
adjourn the meeting at 7:16 p.m. The motion carried unanimously by voice vote.
Respectfully Submitted,
Diane Hall
Assistant Finance Director