Financial Advisory Board — Naperville, IL
Date: 2018-01-29

City of Naperville

 400 S. Eagle Street
 Naperville, IL 60540




 Meeting Agenda

  Monday, January 29, 2018

 6:00 PM




 NEU


Financial Advisory Board
Financial Advisory Board Meeting Agenda January 29, 2018



A. CALL TO ORDER:

B. ROLL CALL:

C. PUBLIC FORUM:

D. REPORTS:
 18-088 Receive 2017 4th Quarter Investment Report

 18-089 Receive the Report on the CY2018 Annual Operating Budget


E. NEW BUSINESS:
 18-095 Approve the Financial Advisory Board minutes from November 27, 2017

 18-094 Receive the report and provide direction on the City’s Financial Reserve
 Policies

F. OLD BUSINESS:
 18-092 Pass the Ordinance approving a revision to the City’s Investment and Cash
 Management Policy

G. ADJOURNMENT:




City of Naperville Page 2 Printed on 1/26/2018

400 S. Eagle Street
 City of Naperville Naperville, IL 60540



 Meeting Minutes - Final

 Financial Advisory Board


Monday, January 29, 2018 6:00 PM NEU


A. CALL TO ORDER:

 Chairman Wik called the meeting to order at 6:00 p.m.

B. ROLL CALL:

 Present: Chaiman Wik, Member Klein, Member Davidson, Member Millington,
 Member Gannon, Member Wade
 Absent: Member Isaac
 Also Present: Council Ex-Officio Krummen, Director of Finance Rachel Mayer,
 Financial Services Supervisor Erik Hallgren, Budget Analyst Franco Bottalico,
 Mike Piotrowski, Marquette Associates

C. PUBLIC FORUM:

 None.

D. REPORTS:

 Receive 2017 4th Quarter Investment Report

 Mike Piotrowski from Marquette Associates updated the FAB on its 4th quarter
 report.


 Receive the Report on the CY2018 Annual Operating Budget

 Erik Hallgren updated the FAB of the CY2018 operating budget and capital
 improvement program budget process.

 A discussion ensued on the City's pension funding methodology and AAA credit
 rating status.

 Erik Hallgren discussed the City's financial principles and the efforts made
 toward each principle, as well as the revenue generating options that will be
 recommended to City Council for CY2018.




E. NEW BUSINESS:

City of Naperville Page 1 Printed on 5/3/2018
Financial Advisory Board Meeting Minutes - Final January 29, 2018



 Approve the Financial Advisory Board minutes from November 27, 2017

 Member Millington stated the following needs to be updated in the minutes from
 November of 2017: (i) in the beginning of section II the year should be changed
 to "2015"; (ii) in section II the words "principal" needs to be changed to
 "principle"; and (iii) in the second to last paragraph of section II, the word
 "access" should be changed to "excess".

 Member Millington made a motion, seconded by Member Wade, to
 approve the Novmber 27, 2017 meeting minutes with revisions.

 The motion carried by the following vote:
 Aye: 6 - Wik, Davidson, Gannon, Klein, Millington, Wade
 Nay: 0



 Receive the report and provide direction on the City’s Financial Reserve Policies

 Erik Hallgren presented the FAB with a review of the City's reserve policy.

 Rachel Mayer stated she does not recommend having a reserve policy for a
 60-day funding; however, a 30-day operating reserve amount is recommended
 for the general fund, and 30- to 45-day reserve amount is recommended for the
 utility funds.

 FAB agreed that they'd like a one-page summary/dashboard on debt and
 finances at their meetings going forward.




F. OLD BUSINESS:

 Pass the Ordinance approving a revision to the City’s Investment and Cash Management
 Policy
 The FAB made two revisions to the City Investment and Cash Management
 policy:

 1) Strike section 3-A-1a; and
 2) Change section 5-A-11 from "Investment Grade Corporate Bonds defined
 as any bond rated A or better..." to "Investment Grade Corporate Bonds
 defined as any bond rated BBB or better..."

 Member Wade made a motion, seconded by Member Gannon, to
 recommend the ordinance with two amendments to City Council.



City of Naperville Page 2 Printed on 5/3/2018
Financial Advisory Board Meeting Minutes - Final January 29, 2018

 The motion carried by the following vote:
 Aye: 6 - Wik, Davidson, Gannon, Klein, Millington, Wade
 Nay: 0



G. ADJOURNMENT:

 Member Wade made a motion, seconded by Member Millington, to adjourn the
 regular FAB meeting of January 29, 2018 at 7:40 p.m.

 The motion carried by the following vote:
 Aye: 6 - Wik, Davidson, Gannon, Klein, Millington, Wade
 Nay: 0



 Franco Bottalico, Budget Analyst
 Rachel Mayer, Director of Finance




City of Naperville Page 3 Printed on 5/3/2018