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FINANCE COMMITTEE 2017/01/17 Minutes The City of Lake Forest FINANCE COMMITTEE Proceedings of the January 17, 2017 Meeting 6:30 p. m. – City Hall Council Chambers I. Call to Order and Roll Call The meeting was called to order at 6:30 p.m. Present: Chairman Pandaleon, Mayor Schoenheider, Aldermen Waldeck, Beidler, Newman, Reisenberg, Tack, Buschmann and Moreno. Absent: None. Quorum present. There were approximately 38 present in the audience. Staff present: Robert Kiely, Jr., City Manager; Elizabeth Holleb, Finance Director; Diane Hall, Assistant Finance Director; Pete Siebert, Fire Chief; Karl Walldorf, Police Chief; Cathy Czerniak, Director of Community Development and Victor Fillippini, City Attorney. Others present: There were thirty-one people in the audience. II. Consideration of Minutes from the Finance Committee Meeting Held on November 14, 2016 Alderman Newman made a motion to approve the minutes from the Finance Committee meeting held on November 14, 2016. The motion was seconded by Alderman Moreno. The motion carried unanimously by voice vote. III. Capital Budget (FY18 Budget Item) Ms. Elizabeth Holleb, Finance Director provided an update based on items discussed at the November budget meeting. She stated previously unfunded projects approved for funding have now been added to the funded project list and were highlighted in yellow. She reviewed an updated five year schedule, which included additional funding sources. She reviewed changes to the Parks Public Land fund for the addition of Laurel Avenue building fees. She stated additional information will be provided at the March budget meeting. IV. Investment Policy and Procedures Ms. Holleb stated the revised investment policy had previously been on the July 2016 agenda. She stated the policy was last updated in 2004 and in anticipation of rising interest rates the City would like to be in the position to move funds accordingly. She stated an investment procedure manual has been developed and recommended changes from July have been incorporated into the procedures. The Committee discussed the City’s current cash balances and the opportunity to invest. The policy would not include the Police and Fire pension funds or the Cemetery investments. The City is very limited in the type of investments allowed by state statute. The new policy requires an annual review of the policy and all transactions of $500,000 or more would require the Finance Committee Chairman approval. The Committee recommended the be brought to the City Council for approval. V. Other Business: 1) Core/Elective Service Analysis (FY18 Budget Item) – Ms. Holleb stated part of the annual budget process is to review and update the City’s Core/Elective Services. She stated recommended changes were included in the packet. No additional changes were recommended. 2) Draft Information Technology Five-Year Capital Improvement Program (FY18 Budget Item) – Ms. Holleb stated the proposed FY18 IT projects were included in the packet. No changes were recommended. Finance Committee Meeting Minutes – January 17, 2017 3) December 2016 Flash Report – Ms. Holleb reviewed the Income Tax revenue trend, which has been 9% lower than budget. She stated the Illinois Municipal League (IML) has been working with the state to analyze why the average allocation to all communities is so low. The Committee discussed proposed state legislation recommending a temporary property tax freeze. VI. Opportunity for the Public to Address the Finance Committee: None VII. Adjournment There being no further business, Alderman Newman moved, seconded by Alderman Beidler, to adjourn the meeting at 6:54 p.m. The motion carried unanimously by voice vote. Respectfully Submitted, Diane Hall Assistant Finance Director