FINANCE COMMITTEE 2016/04/18 Minutes
The City of Lake Forest
FINANCE COMMITTEE
Proceedings of the April 18, 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, Aldermen Waldeck,
Beidler, Newman, Reisenberg, Tack, Adelman and Moreno. Absent: Mayor Schoenheider.
Quorum present. There were approximately 32 present in the audience.
Staff present: Robert Kiely, Jr., City Manager; Elizabeth Holleb, Finance Director; Diane Hall,
Assistant Finance Director; Jim Held, Police Chief; Jeff Howell, Fire chief; Michael Thomas, Director
of Public Works and Vic Filippini, City attorney.
Others present: There were twenty-five people in the audience.
II. Consideration of Minutes from the Finance Committee Meeting Held on March 14, 2016
Alderman Newman made a motion to approve the minutes from the Finance Committee
meeting held on March 14, 2016. The motion was seconded by Alderman Adelman. The motion
carried unanimously by voice vote.
III. FY16 Supplemental Appropriation Ordinance
Ms. Elizabeth Holleb, Finance Director explained at the end of the fiscal year, staff reviews
expenditures at the fund level and compares to the appropriation ordinance to see if a
supplemental appropriation ordinance would need to be approved by the City Council. She
stated based on information submitted by the departments, this is not needed at this time.
IV. Five Year Financial Forecasts – Follow up (FY17 Budget Item)
Ms. Holleb stated at the March 14th budget meeting the Finance Committee requested staff
review budget assumptions used for revenue projections.
Ms. Holleb reviewed the property tax and sales tax assumptions utilized in the five year forecast
for the General Fund. She explained adjusting both revenue assumptions would impact the
General Fund very little.
Ms. Holleb reviewed the real estate transfer tax assumptions utilized in the five year forecast for
the Capital Fund. She explained the cumulative change assuming a lower increase of 1.5%
would cumulatively affect the Capital Fund by $800,000. The assumption does not include
commercial transactions.
Ms. Holleb reviewed the water assumption change of removing the summer of 2012 high usage
from the rolling average of consumption used for the five year forecast. The change in the
revenue assumption would not change the transfer to the Water Capital Fund.
The Committee discussed the assumption changes, emphasizing the importance of reflecting
where the City’s revenues currently are at. After discussion, the Committee recommended
making the changes to all four revenue sources.
The Committee requested clarity on how sales tax is distributed for online purchases.
V. Purchasing Directive – Proposed Revisions
Ms. Diane Hall, Assistant Finance Director provided a review of proposed changes to the
purchasing directive.
Finance Committee Meeting
Minutes – April 18, 2016
The Committee members requested a breakdown of the percentage of purchases that fall within
each purchasing category.
Mayor Schoenheider entered the meeting at 6:50 p.m.
VI. Other Business:
1) Updated list of FY2016 Budget follow-up items – no discussion
2) March 2016 Flash Report – The Committee discussed the current pension investment
revenue figures. The current figures do not reflect the recent positive market changes. The
Lake Forest Oasis revenues are reduced due to a change in timing of payments by the state
to Mettawa.
VII. Opportunity for the Public to Address the Finance Committee: None
VIII. Adjournment
There being no further business, Alderman Beidler moved, seconded by Alderman Moreno, to
adjourn the meeting at 7:00 p.m. The motion carried unanimously by voice vote.
Respectfully Submitted,
Diane Hall
Assistant Finance Director