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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