FINANCE COMMITTEE 2019/07/15 Minutes
The City of Lake Forest
FINANCE COMMITTEE
Proceedings of the July 15, 2019 Meeting
6:30 p. m. – City Hall Chambers 220 E. Deerpath
I. Call to Order and Roll Call
The meeting was called to order at 6:30 p.m. Present: Mayor Pandaleon, Chairman Morris,
Aldermen Beidler, Newman, Rummel, Preschlak, Goshgarian, Moreno and Buschmann. Absent:
None. Quorum present. There were approximately 17 present in the audience.
Staff present: Jason Wicha, City Manager; Diane Hall, Assistant Finance Director; Sally Swarthout,
Director of Parks and Recreation, Pete Siebert, Fire Chief; Cathy Czerniak, Director of Community
Development and Julie Tappendorf, City Attorney.
Others present: There were approximately 11 people in the audience.
II. Consideration of Minutes from the Finance Committee Meeting Held on April 15, 2019
Alderman Moreno made a motion to approve the minutes from the Finance Committee meeting
held on April 15, 2019. The motion was seconded by Alderman Beidler. The motion carried
unanimously by voice vote.
III. Annual Report of the Cemetery Commission
Mr. Dennis O’Brien Cemetery Commission Chairman stated the Gateway to the Cemetery has
celebrated its 100th anniversary and has been renovated. He reviewed the Commission’s Mission
Statement and Investment Policy. He reviewed the Commissions method to manage their
investments to compensate for volatility in the market. He reviewed a comparison of allocations
of investments from 2008 to 2019. He reviewed the investment fees structure by William Blair at 50
basis points. He stated the Commission does not currently have outstanding debt obligations and
that all renovations have been completed without taxpayer dollars.
The Committee discussed how capacity of the Cemetery is determined. They discussed ravine
management including what has been completed and what will need to be addressed in the
future. They discussed management fees assessed by William Blair and the cash target, including
funds held by the City.
IV. Investment Presentation – Police Pension Board
Mr. Doug Oest of Marquette Associates provided an overview of the firm. He stated the
approach used is to avoid down side risk. He reviewed fees assessed the pension fund, which are
below 50 basis points. He reviewed the asset allocations and the value net of fees. He reviewed
the funds return values are achieved using less risk. He stated the fund was balancing assets from
equities prior to the sell off at the end of 2018.
The Committee discussed the policy bench mark and how this index is used. This bench mark is
realigned if state statute changes. The Committee discussed the fixed income allocation which is
set at a minimum of 35%. The Committee discussed comparisons to the industry for Custodial and
Investment Custodial Fees. The Committee discussed real estate investments.
The Committee discussed the City’s actuary model is using 7% investment returns, The pension
fund has been able to maintain this level on average over the last 10 years, but is continually
looking at this as it will be difficult to maintain this level.
V. Investment Presentation - Fire Pension Board
Mr. Paul Pugliese, Fire Pension Board invited Committee members to attend the next Fire Pension
Board meeting.
Finance Committee Meeting
Minutes – July 15, 2019
Ms. Mary Tomanek of Graystone Consulting reviewed the history and experience with the City.
She reviewed the pension goal of growing, while mitigating risk. She reviewed the investment
returns over history. She reviewed the allocation of the portfolio and how this mitigates risk. She
reviewed how their Active and Passive managers work with the pension to maintain a balanced
portfolio.
The Committee discussed the roll of Active mangers in a down market. They discussed how the
City compares to other communities.
VI. FY2021 Budget Calendar
Ms. Diane Hall, Assistant Finance Director reviewed the proposed budget calendar dates for
FY2021. She stated the November budget meeting will be on a Tuesday due to the holiday.
The Committee discussed how the City’s process compares Mr. Wicha’s previous position with
Skokie.
Alderman Rummel made a motion to approve the FY2021 budget calendar. The motion was
seconded by Alderman Moreno. The motion carried unanimously by voice vote.
VII. OpenGov Check Register Demonstration
Ms. Hall provided a demonstration of an additional transparency report detailing the City’s
weekly accounts payable check register.
The Committee discussed the handling of sensitive checks.
VIII. Other Business
1) June 2019 Flash Report – No discussion.
2) July 15 City Council Agenda – No discussion
3) Analysis of State FY20 Budget – No discussion
IX. Opportunity for the Public to Address the Finance Committee: No comments were made
X. Adjournment
There being no further business, Alderman Preschlak moved, seconded by Alderman Moreno, to
adjourn the meeting at 7:20 p.m. The motion carried unanimously by voice vote.
Respectfully Submitted,
Diane Hall
Assistant Finance Director