FINANCE COMMITTEE 2010/07/19 Minutes
The City of Lake Forest
FINANCE COMMITTEE
Proceedings of the July 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 6:35 p.m. Present: Mayor Cowhey,
Chairman Grumhaus, Aldermen Novit, Moore, Morsch, Hanrahan, Looby and Palmer. Absent:
Alderman Widman. Quorum present. There were twelve people present in the audience.
Staff present: Robert Kiely, Jr., City Manager; Louise Breckan, Assistant Finance Director; Cathy
Czerniak, Director of Community Development; Ramesh Kanapareddy, Assistant City Engineer;
Diane Hall, Senior Accountant; Carina Walters, Assistant to the City Manager and Victor
Filippini, City Attorney.
II. Consideration of Minutes from the Finance Committee Meeting Held on June 21, 2010
Alderman Looby made a motion to approve the minutes as presented. The motion was
seconded by Alderman Novit. The motion carried unanimously by voice vote.
III. White Stable Vineyard Special Service Area (SSA) in support of Public Infrastructure Facilities
Ms. Cathy Czerniak, Director of Community Development stated that tonight’s meeting will
review what has occurred and what steps need to be still taken. She reviewed the previous
approvals at prior City Council meetings. It is proposed to have a public hearing, ordinance
establishing the special service area and bond ordinance at the City Council meeting on
September 7, 2010.
Alderman Widman entered the meeting at 6:40 p.m.
Mr. Tom Swarthout, The Highview Group, Ltd., the petitioner, thanked the Committee for
allowing him the opportunity to present information at tonight’s meeting. He introduced his
family and team members.
The petitioner’s attorney spoke on the mechanics of a special service area.
Mr. Freeburg, from William Blair, explained that if the City approves a bond issue to fund the
improvements, the bond proceeds will be held in an escrow account and monitored by a
trustee. He added that the amount assessed on each property for the special service area
will be paid at closing and not over twelve years as was listed in the packet.
The Committee asked if the City’s credit rating would be affected if there is a default on a
debt payment. Mr. Victor Filippini, City attorney, did not know how the credit market will
perceive a default. The Committee requested documentation for all new information
presented at the meeting that was different from what was in the meeting packet. In
addition, the Committee would like to see a letter from Moody’s confirming that a default
would not impact the City’s credit rating.
Mr. Robert Kiely, City Manager noted that in November the Plan Commission will be discussing
and recommending to the City Council a long term policy for prioritizing future requests made
by developers asking the City to establish a special service area to pay for public
infrastructure.
IV. Gorton Community Center
Chairman Grumhaus tabled as this topic is on tonight’s City Council meeting agenda.
Finance Committee Meeting
Minutes – July 19, 2010
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V. Other Business:
Alderman Looby, Chairman of the Public Works Committee noted that on tonight’s City
Council agenda there are a number of capital equipment items , i.e. squad cars, tractor,
chipper, boiler at Public Safety Building, for approval. He asked if there were any questions
about the bidding process for any of the items. There were no questions.
June 2010 Flash Report – Chairman Grumhaus noted that the real estate transfer tax for June
was more than what had been estimated.
VI. Opportunity for the Public to Address the Finance Committee: None.
VII. Adjournment
There being no further business, Alderman Looby moved, seconded by Alderman Palmer to
adjourn the meeting at 7:26 p.m. The motion carried unanimously by voice vote.
Respectfully submitted,
Louise Breckan
Assistant Finance Director