FINANCE COMMITTEE 2016/10/17 Minutes
The City of Lake Forest
FINANCE COMMITTEE
Proceedings of the October 17, 2016 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 Beidler, Newman, Reisenberg and Tack. Absent: Aldermen Waldeck,
Adelman and Moreno. Quorum present. There were approximately 17 present in the audience.
Staff present: Robert Kiely, Jr., City Manager; Elizabeth Holleb, Finance Director; Diane Hall,
Assistant Finance Director; Pete Siebert, Fire Chief and Cathy Czerniak, Director of Community
Development.
Others present: There were twelve people in the audience.
II. Consideration of Minutes from the Finance Committee Meeting Held on July 18, 2016
Alderman Newman made a motion to approve the minutes from the Finance Committee
meeting held on July 18, 2016. The motion was seconded by Alderman Beidler. The motion
carried unanimously by voice vote.
III. FY2018 Mission Statement and Fiscal Policy
Ms. Elizabeth Holleb, Finance Director stated as part of the budget process the City’s mission
statement and fiscal policy are affirmed by the City Council each year. She stated no changes
to either document are recommended for FY2018.
Alderman Reisenberg moved, seconded by Alderman Newman to affirm the City’s Mission
Statement and Fiscal Policy for FY2018. The motion carried unanimously by voice vote.
IV. Consideration of the FY2016 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 formatting of the document is intended to minimize publishing costs.
She stated last year two new reports were added to the City’s website to enhance the resident’s
usage of the report. She stated the reports have been updated with the FY16 vendor information
depicting one report in alphabetical order and the other by dollar amount.
Following discussion, Alderman Beidler moved, seconded by Alderman Reisenberg to
acknowledge receipt of the FY2016 Treasurer’s Report.
V. Consideration of an Ordinance Providing for the Redemption and Payment Prior to Maturity of
$6,105,000 General Obligation Bonds, Series 2008
Ms. Holleb stated the City property on Laurel Ave. closed on September 23rd for a price of $12
million. The City received $5.6 million now and will receive the remaining balance based on a TIF
note to be paid from TIF increment proceeds.
She stated prior discussions regarding the use of the Laurel Ave. proceeds included retiring
existing debt, pay other City obligations or avoid future debt. She reviewed the outstanding debt
obligations paid for by tax levy funds including outstanding principal, first callable date and
interest rates.
She stated staff recommends calling the 2008 issue utilizing the Laurel Ave. proceeds, current fund
balance in the 2008 Debt Service fund and the remaining portion from the General Fund. The
retiring of the debt early would result in a savings to the City of $1.3 million
Finance Committee Meeting
Minutes – October 17, 2016
The Committee discussed the interest rates on the 2009 and 2013 issues.
Ms. Holleb stated the tax levy associated with this bond could be moved to a Capital line item on
the levy. She explained the impact on the tax levy by moving the funding from debt to capital.
She stated most of the 2008 issue was used for the construction of the current Municipal Services
facility.
Chairman Pandaleon noted this item was informational and would be considered later in the
evening as part of the City Council agenda.
VI. 2016 Property Tax Levy Estimate
Ms. Holleb reviewed the required timeline for the City’s approval of the tax levy. She stated staff
was requesting direction to calculate the City’s estimated tax levy for consideration at the
November 7th City Council meeting.
She reviewed three different options involving the pension funding and available tax cap. She
stated the calculation includes the addition of a Capital Improvements line item from the 2008
bond issue redemption. She reviewed the impact of including the additional pension funding
and the tax cap on the General Fund revenue. The second option includes reduced pension
funding to be made up through a potential public safety pension fee.
The Committee members discussed the pension fee as a short term solution and that a long term
solution needs to be identified prior to April 30, 2017. The Committee requested dates to be
determined in November to set aside time to work on a solution.
VII. Other Business:
1) September 2016 Flash Report - The Committee discussed some of the revenues are not
doing well, but the state is more in time with the payments to the City.
VIII. Opportunity for the Public to Address the Finance Committee: None
IX. Adjournment
There being no further business, Alderman Reisenberg moved, seconded by Alderman Newman,
to adjourn the meeting at 7:08 p.m. The motion carried unanimously by voice vote.
Respectfully Submitted,
Diane Hall
Assistant Finance Director