Financial Advisory Board — Naperville, IL
Date: 2018-07-30

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



 Meeting Agenda

 Financial Advisory Board

Monday, July 30, 2018 6:00 PM Finance Conf. Room 133




A. CALL TO ORDER:

B. ROLL CALL:

C. PUBLIC FORUM:

D. REPORTS:
 18-637 Approval of the April 30, 2018 Minutes

 Attachments: 4.30.2018 FAB minutes

 18-639 Receive the 2018 2nd Quarter Investment Report

 Attachments: City of Naperville 2Q18 Report Package

 18-645 Receive the 2018 Q2 Budget Report

 Attachments: 2018 Q2 Financial Report


E. NEW BUSINESS:
 18-642 Review the Public Safety Pension Funds Actuarial Valuations

 Attachments: Valuation Report - Naperville Fire - 2018
 Valuation Report - Naperville Police - 2018

 18-643 Receive the 2017 Comprehensive Annual Financial Report from Brian
 LeFevre of Sikich
 Attachments: 2017 CAFR


F. OLD BUSINESS:
 18-644 Receive a Report on City Reserve Level Policies

 Attachments: Highland Park Debt Policy
 Naperville - Electric and Water-Wastewater 30-day working capital reserve
 Naperville - General fund reserve policy




City of Naperville Page 1 Printed on 7/27/2018
Financial Advisory Board Meeting Agenda July 30, 2018


 18-646 Review of the City’s Financial Advisory Board Dashboard


G. ADJOURNMENT:
 Any individual with a disability requesting a reasonable accommodation in order to
 participate in a public meeting should contact the Communications Department at least
 48 hours in advance of the scheduled meeting. The Communications Department can
 be reached in person at 400 S. Eagle Street, Naperville, IL., via telephone at
 630-420-6707 or 630-305-5205 (TDD) or via e-mail at info@naperville.il.us. Every effort
 will be made to allow for meeting participation.




City of Naperville Page 2 Printed on 7/27/2018

City of Naperville

 400 S. Eagle Street
 Naperville, IL 60540




 Meeting Minutes

 Monday, July 30, 2018

 6:00 PM



 Finance Conf. Room 133



Financial Advisory Board
Financial Advisory Board Meeting Minutes July 30, 2018


A. CALL TO ORDER:

 Chairman WIk called the meeting to order at 6:02 p.m.

B. ROLL CALL:
 Present: Chairman Wik; Member Davidson; Member Gannon; Member Millington;
 Member Wade; John Krummen - Council Ex-Officio (arrived at 6:13 p.m.)

 Absent: Member Isaac; Member Klein;

 Also Present: Rachel Mayer, Finance Director; Erik Hallgren, Financial Services
 Supervisor; Franco Bottalico, Budget Analyst; Connor Raridon, Finance Intern; Mike
 Piotrowski, Marquette Associates; Brian LeFevre, Sikich

C. PUBLIC FORUM:

 None

D. REPORTS:

E. NEW BUSINESS:

 Receive the 2018 2nd Quarter Investment Report

 Mike Piotrowski from Marquette Associates updated the FAB on its 2nd quarter report.

 Rachel Mayer updated the FAB regarding upcoming RFPs for billing vendors

 Receive the 2018 Q2 Budget Report

 Erik Hallgren presented the CY2018 budget performance report for quarter 2. Erik
 Hallgren reported that the City's Revenues and Expenditures are performing in line with
 projections.

 Erik Hallgren stated the State has slightly reduced the administrative fee on the collection
 of Home Rule Sales Tax from 2% to 1.5%. Additionally, the Local Government
 Distributive Fund (LGDF) reduction was slightly reduced from 20% to 15%.

 The local use tax revenue will increase by $350,000 to $400,000 annually due to the
 recent Supreme Court ruling in favor of local governments (South Dakota v. Wayfair, Inc.).
 A discussion ensued on the local use tax.

 Erik Hallgren reported that the special census has added approximately 5,000 to 6,000
 new residents to the City's population. Because of this, the City may receive one or two
 higher disbursements in 2018 due to a larger population.




 Approval of the April 30, 2018 Minutes

 Member Wade made a motion, seconded by Member Davidson, to approve the April 30,
 2018 meeting minutes.

City of Naperville Page 1 Printed on 12/21/2018
Financial Advisory Board Meeting Minutes July 30, 2018



 The motion carried by the following vote:
 Aye: 5 - Wik, Davidson, Gannon, Millington, Wade
 Nay: 0

 Review the Public Safety Pension Funds Actuarial Valuations

 Erik Hallgren stated that the public safety pensions contributions have slightly
 decreased by $40,000, and the IMRF contribution has also decreased.

 A discussion ensued on pension funding.


 Receive the 2017 Comprehensive Annual Financial Report from Brian LeFevre of Sikich

 The FAB received a report on the Comprehensive Annual Financial Report
 (CAFR) from Brian LeFevre of Sikich.

F. OLD BUSINESS:

 Receive a Report on City Reserve Level Policies

 The FAB received a report on the City's current reserve level policy.

 Erik Hallgren stated that staff has looked at the GFOA and the rating agencies
 for their recommendations on reserve level policies, as well as what
 comparable communities currently have in place regarding their reserve levels.

 The FAB agreed to receive a future report that compares what the financial
 impacts are on a lower rated community vs. a AAA-rated community.

 Review of the City’s Financial Advisory Board Dashboard

 Erik Hallgren explained the updates made to the FAB's dashboard report. It has
 been sectioned into two pages: (1) quartely updates; and (2) annual updates.

 The FAB agreed to start future meetings by leading with the dashboard report.

G. ADJOURNMENT:
 Chairman Wik made a motion, seconded by Member Gannon, to adjourn the regular FAB
 meeting of July 30, 2018 at 8:15 p.m.

 The motion carried by the following vote:
 Aye: 5 - Wik, Davidson, Gannon, Millington, Wade
 Nay: 0




 Rachel Mayer, Finance Director
 Franco Bottalico, Budget Analyst




City of Naperville Page 2 Printed on 12/21/2018