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                                                 MINUTES OF THE FINANCE & RULES

                                               COMMITTEE OF THE WHOLE MEETING

                                                   HELD ON MONDAY, JULY 9, 2007

MAYOR SHERWIN CALLED THE MEETING TO ORDER AT 6:30 P.M.

Clerk Floistad called for the roll.

ROLL CALL:

PRESENT:                                

                                      ALDERMAN STRAUBE

                                      ALDERMAN FELDMANN

                                      ALDERMAN DELGADO

                                      ALDERMAN PADILLA

                                      ALDERMAN NESSLING

                                                  ALDERMAN RIESTERER

                                                  ALDERMAN GROCHOWSKI

                                                  ALDERMAN PATTI      

OTHERS PRESENT:                  MAYOR JEFFREY SHERWIN

                                                  FRED PAUL, TREASURER

                                                  JOANNE FLOISTAD, CITYCLERK

                                                  DENNIS KOLETSOS, CHIEF OF POLICE

                                                  WILLIAM KABLER, FINANCE DIRECTOR

                                                  DALE ROBERTS, SUPERINTENDENT OF PUBLIC WORKS

The committee reviewed the minutes of the June 18, 2007 meeting.  Alderman Patti made a motion to approve the minutes of the June 18, 2007 meeting; seconded by Alderman Grochowski.  Mayor Sherwin asked if there were any corrections or deletions. Alderman Patti had one correction.    Mayor Sherwin called for a voice vote.  All were in favor.  The minutes were approved.

Mayor Sherwin presented the Invoices Over One Thousand Dollars.  Mayor Sherwin asked about the Tiger Direct Monitors.  Chief Koletsos explained that these monitors are the LED‘s instead of the plasmas.  The current plasmas already have pictures burning into them.  These are for the additional security cameras.  LED’s don’t burn the images in the screen. This is grant money from the Cook County ETSB.  We have about $11,000.00 left. We received a 90 day extension and we have to spend this money.  This was from the $34,000.00 grant from last fall. Alderman Patti made a   motion to approve the Invoices Over One Thousand Dollars, seconded by Alderman Nessling. Mayor Sherwin called for a voice vote.  All were in favor.  The Invoices Over One Thousand Dollars were approved. 

Mayor Sherwin presented the Warrants and Vouchers.  Alderman Patti made a motion to pay the Warrants and Vouchers; seconded by Alderman Riesterer.  Alderman Patti asked about the ACS Support-Stop.  There was an error in the check from the payroll so we had to void the check and make a new one.  Alderman Patti also asked about the reimbursement for grass for a resident.  Dale Roberts said he does not know the reason why they wanted to be taken off the grass cutting list. Alderman Patti asked if the refund deposit for Northlake Days  for several people was the  money we held just in case the food vendors did not clean up.  Bill Kabler told her that she was correct.   Mayor Sherwin called for a voice vote.  All were in favor.  The motion carried.

Mayor Sherwin presented the Commission Expenditures. Alderman Patti made a motion to approve the Commission Expenditures; seconded by Alderman Riesterer.  Mayor Sherwin called for a voice vote.  All were in favor.  The motion carried.    

Under New Business; Mayor Sherwin presented Ordinance O-21-2007, An ordinance of the City of Northlake authorizing the acquisition of certain real property by eminent domain (19 Wiltsie Drive). The purpose of purchasing this property is to build a park.  Alderman Patti made a motion to approve ordinance O-21-2007; seconded by Alderman Delgado.  Mayor Sherwin called for a voice vote.  All were in favor.  The motion carried. 

Mayor Sherwin presented Ordinance O-24-2007, An ordinance providing for the issuance of not to exceed $14,500,000 general obligation bonds, series 2007, of the City of Northlake, Cook County, Illinois and for the levy of a direct annual tax sufficient to pay the principal and interest on said bonds.   Alderman Patti made a motion to approve Ordinance O-24-2007; seconded by Alderman Grochowski. 

Bill Kabler said we are selling 4.9 million dollar bonds which the citizens approved to be taxed for.  Another 2.6 million dollars to get us to the 7.5 million for the new police station.  We will be paying the 2.6 out of village funds.  We are borrowing 4 million dollars to buy the apartments at Rhodes Manor and 2 million dollars to rehab them so we can sell them.  The balance is for cost of issuance, insurance and those types of things.  The plan is to purchase the apartments by approximately August 1st.  The rest of the money will be put into the bank and invested until we start to build the police station.  The interest that this money earns for this period of time will offset some of the first bond payments.  Two million dollars for the apartments will remain in the bank drawing interest so it will not cost us as much to repay that.  The 4 million dollars used to purchase the apartments will be paid back by the rental of the apartments.  This should offset some of the cost of the bonds to a point because we will have a management service that will cost us.  It will be close. 

Alderman Patti asked how we were going to reinvest the money.  Bill Kabler said he has been checking with various banks to get their rates.  Bill Kabler said that he does not want to put all the money in one bank.  Bill Kabler said that it may be a six month CD. 

Mayor Sherwin said the 2.6 millions dollars will be offset by the interest from the bank so it will be available to make the bond payments in 10 years.

Walter Stock from Mesirow Financial spoke about the bond issue.  He said he had a call with Standard Force, who has a rating on the city’s finances.  The City of Northlake had an “A” rating.  The city is not overextending and keeping things in line.  With this “A” rating we were able to secure an AAA bond insurance policy.  We took out bids for the insurance policy with four people and went with the lowest bidder.  These bonds will be AAA rated.  He said we are looking at mutual fund companies, insurance companies, institutional investor accounts and retail investor accounts. 

Alderman Padilla asked if anyone can purchase these bonds.  Walter Stock said that one of the restrictions is that council members cannot participate in the first offering of the issue.  Once the issue is sold and settled you could buy them at that point. 

Mayor Sherwin asked if we will abate a portion of these bonds.  Walter Stock said we will have full flexibility to abate any or the entire portion of the issue.

Alderman Nessling asked what the profit would be for these investments.  Walter Stock that he anticipating the rate of return to be around 4.8-5% that is tax free. 

 Mayor called for a voice vote.  All were in favor.  The motion carried.

Bill Kabler started a discussion about our health insurance.  He said we are going to renew our insurance come August 1st.  We had quotes from several carriers.  Blue Cross came in with a 5.31% increase.  Bill Kabler stated that last year we increased our deductible from $250.00 to $750.00 to lower the increase of approximately 12% to about a 2% increase.  There is not much else we can do at this point.  The dental increase is about 8%, but we are still trying to get them to come down.  They are looking for September 1st as the renewal date and we are looking for August 1st renewal date.  Alderman Patti said that we reimburse the employee anything above the $250.00 deductible.  Bill Kabler said this would still be in effect.  Alderman Patti made a motion to approve Blue Cross/Blue Shield as our health insurance provider; seconded by Alderman Delgado.  Mayor Sherwin called for a voice vote.  All were in favor. The motion carried.

Mayor Sherwin commented on Northlake Days.  Bill Kabler said we lost $13,000.00 including the fireworks.  We are ahead of last years profit with the carnival.  Bill Kabler said we are currently looking for something to get people to Northlake Days on Saturday between 1 and 5 pm.  Mayor Sherwin said that bringing the car show in to the infield helped with the Sunday crowd.

There being no further business, Alderman Patti made a motion to adjourn; seconded by Alderman Riesterer.   Mayor Sherwin called for a voice vote. All were in favor.  The motion carried.

MEETING ADJOURNED AT APPROXIMATELY 7:15 PM.

RESPECTFULLY SUBMITTED

JOANNE FLOISTAD, CITY CLERK