FINANCE COMMITTEE 2015/10/19 Minutes
The City of Lake Forest
FINANCE COMMITTEE
Proceedings of the October 19, 2015 Meeting
6:30 p. m. – City Hall Council Chambers
I. Call to Order and Roll Call
Chairman Pandaleon called the meeting to order at 6:30 p.m. Present: Chairman Pandaleon,
Mayor Schoenheider, Aldermen Waldeck, Beidler, Newman, Reisenberg, Tack, Adelman and
Moreno. Absent: None. Quorum present. There were approximately 21 present in the audience.
Staff present: Robert Kiely, Jr., City Manager; Elizabeth Holleb, Finance Director; Diane Hall,
Assistant Finance Director; Cathy Czerniak, Community Development Director; DeSha Kalmar,
Director of Human Resources; Bob Ells, Superintendent; Victor Filippini, City Attorney.
Others present: There were fourteen people in the audience.
II. Consideration of Minutes from the Finance Committee Meeting Held on July 20, 2015
Alderman Newman made a motion to approve the minutes from the Finance Committee
meeting held on July 20, 2015. The motion was seconded by Alderman Moreno. The motion
carried unanimously by voice vote.
III. FY2017 Mission Statement and Fiscal Policy
Ms. Elizabeth Holleb, Finance Director stated as part of the annual budget process, the City
Council affirms the City’s mission statement and fiscal policy. She stated the mission statement
was changed in 2013 and no changes are recommended for FY2017.
Alderman Moreno moved seconded by Alderman Waldeck to affirm the City’s FY2017 Mission
Statement. The motion carried unanimously by voice vote.
Ms. Holleb stated recommended changes to the City’s Fiscal Policy were included in the packet.
Ms. Holleb reviewed each recommended change.
Following discussion, Alderman Moreno seconded by Alderman Beidler to adopt the FY2017 Fiscal
Policy, as recommended. The motion carried unanimously by voice vote.
IV. Consideration of the FY2015 Treasurer’s Report
Ms. Holleb reviewed the state statute requirement of publishing a Treasurer’s report, which
includes mandated information in the local newspaper within six months after the end of the
fiscal year. She stated the Committee requested an easier way to provide the detailed vendor
information on the City’s website. She provided two additional reports to be included on the
City’s website showing the three previous fiscal year vendors over $2,500 in alphabetical order, as
well as in dollar amount.
The Committee requested a heading to be added to the published report to include a reference
to the City’s website for an easier version of the vendor list.
Following discussion, Alderman Reisenberg seconded by Alderman Newman to acknowledge
receipt of the FY2015 Treasurer’s Report. The motion carried unanimously by voice vote.
V. 2015 Property Tax Estimate
Ms. Holleb stated staff is currently working on the property tax estimate for 2015. In order to meet
the Truth in Taxation statute an estimate will be calculated for the November 2, 2015 City Council
meeting. She reviewed the proposed 2015 tax levy schedule with the Committee. She stated the
tax cap for the 2015 levy is .8%.
Finance Committee Meeting
Minutes – October 19, 2015
The Committee discussed the implications of the .8% tax cap as well as how the increase is used
to calculate the levy.
VI. Resolution Authorizing Dissolution of the Consolidated IMRF Employer Account for City and School
District 67 and Authorizing Establishment of Separate Accounts
Ms. Holleb stated with the implementation of GASB68, School District 67 inquired into the possibility
of separating from the City. School District 67 paid for an actuary calculation to be completed to
assess the feasibility. Based on a review of the actuarial analysis, the City and School District 67
are recommending the separation. Ms. Holleb explained the rate differentials calculated in the
study. The change in rates would equate to an estimated $23,000 additional costs to the City.
This is primarily due to School District 67’s lower average salary and years of service. She stated
the change would assist with the implementation of GASB 67 & 68, as well as enable School
District 67 to offer different benefits to their employees and not be tied to decisions made by the
City.
Following discussion, Alderman Beidler moved seconded by Alderman Reisenberg to recommend
City Council approval of the proposed resolution. The motion carried unanimously by voice vote.
VII. Health and Dental Insurance Primer
Ms. DeSha Kalmar, Director of Human Resources stated the Committee requested a review of the
City’s health and dental program at the March budget meeting. She reviewed the City’s history
of self-insurance including the hiring of a benefit consultant and the creation of the Employee
Benefit Committee. She reviewed the coverages offered and the outside factors contributing to
the increased cost of insurance. She explained the steps the City has undertaken to reduce costs
and address legal requirements imposed by state and federal regulations.
The Committee discussed the pending Cadillac Tax to be imposed in 2018 and the effect this
could have on the City’s insurance plans.
VIII. Other Business:
1) FY2016 Budget follow-up – a current status list was included in the packet.
2) September 2015 Flash Report – The report was included in the packet.
IX. Opportunity for the Public to Address the Finance Committee: None
X. Adjournment
There being no further business, Alderman Reisenberg moved, seconded by Alderman Newman,
to adjourn the meeting at 7:16 p.m. The motion carried unanimously by voice vote.
Respectfully Submitted,
Diane Hall
Assistant Finance Director