WILMETTE PARK DISTRICT
Financial Planning & Policy Committee
Monday, January 25, 2016
6:30 p.m. – Village Hall Training Room
Commissioners: Chair Abbott, Anderson, Pellaton
Staff: Executive Director Wilson, Superintendents Eppelheimer, Bingham and Lambrecht, Manager Holloway
Committee Members Absent
I. Meeting Called to Order
Meeting was called to order 6:30 p.m.
II. Approval of Minutes
A. Commissioner Abbott moved and Commissioner Pellaton seconded a motion to approve the minutes of November 30, 2015 Financial Planning & Policy Committee meeting.
Minutes were approved as amended with the following changes:
Page 2 of 5, VI. C 5th paragraph, 6th sentence should read: “Mr. Eric Anderson commented on the three year retirement of Series 2016 as outlined in the slide.” All voted yes, the motion carried.
III. Communication and Correspondence
No communication or correspondence was included in the Committee packet and no Commissioner brought any to the Committee’s attention.
IV. Recognition of Visitors
Eric Anderson of Piper Jaffray & Co. and Park District Staff
V. Unfinished Business
A. Proposed Issuance of Refunding and Limited Park Bonds
Mr. Anderson presented the Update on Issuance of Limited Park Bonds and Refunding Bonds. Mr. Anderson commented on the rate action that the Federal Reserve has taken. Interest in near term has risen but longer dated yields have declined. This is driven by low CPI, 0.7% for 2015, commodity prices, lack of bond supply and volatility in the market at the end of 2016 and early 2016. Mr. Anderson indicated that the District has another opportunity to refund the 2007 G.O. Park Bond issue.
Given the total size of the issue, the number of bond series and the complexity associated with the financing, the District likely will be better economically served by privately placing the bonds with a banking institution. Mr. Anderson has already had favorable conversations with three banks. Only those refunds yielding an acceptable savings amount would be executed. A private placement would provide the same rights and obligations to the District as a public sale. Several reasons were cited for a private placement, including lower issuance costs of about $30,000. There was additional discussion on private placement, how this compared to a public sale and how costs would be accounted in the transaction.
Four issues are proposed: new issue of approximately $1 million (2016A); refund of 2007 G.O. Bonds for $1.66 million (2016B); refund of 2007B Debt Certificates for $645,000 (2016C); and refund of 2007A Limited Park Bonds for $3.5 million (2016D). Total savings is estimated at $535,000. Each issue was reviewed and discussion ensued about indicative rates, final rates and approximate par value of the bonds being refunded compared to the current outstanding debt (approximately 40%).
The 2016A is the only series that the retirement amounts are fitted within the 2015 tax levy, future tax levies and the anticipated CPI increases. The other issues are based upon existing retirement schedules.
Mr. Anderson discussed the proposed financing calendar with key dates being driven by required filings with the County Clerk. This starts with the adoption of bond ordinance for the Limited Bonds, Debt Service Extension Base (DSEB) and parameters ordinances for each of the refunding issues. These will be provided before the February 8th Board Meeting. The parameters ordinances set an upper rate that then will be adjusted after bond settlements with abatement ordinances filed with the County Clerk.
Commissioner Anderson moved and Commissioner Pellaton seconded to direct the preparation of bond and parameters ordinances by bond counsel for review and approval at the February 8, 2016 Board meeting; all agreed. A short recess was taken at 7:35 p.m. and the Committee reconvened at 7:40 p.m.
VI. New Business
A. Fixed Asset Inventory
Manager Holloway presented the status of the fixed asset inventory and the next steps to be completed before the audit. The Committee discussed the use of the inventory as a capital planning tool and what kinds of items were removed from the fixed asset inventory. This is an accounting system used for reporting and bears little resemblance to a capital replacement schedule. The Committee will be updated once the accounting review is completed.
B. Post Issuance Compliance Report
Superintendent Eppelheimer presented an annual compliance review conducted as directed by the 2013 bond ordinance.
Commissioner Anderson moved and Commissioner Pellaton seconded to accept the compliance report; all agreed.
C. Financial Audit (Verbal Update)
Superintendent Eppelheimer updated the Committee that the auditors Lauterbach & Amen were in to perform preliminary field work on January 13th. They reviewed internal controls and tested several of our procedures. Field work will be the week of February 15th.
D. Capital Plan Carry Over Projects
Superintendent Eppelheimer discussed the need for 2016 funding of projects that were appropriated in prior years. There are three projects; Fitness Lighting Renovation, West Park Artificial Turf Fields and Centennial Prairie Signage that still need to be completed but were not included in the 2016 budget. The Committee recommended that Carry Over Projects totaling $136,645 be approved by the full Board and thereby increase the 2016 capital improvement budget.
E. Manager’s Report
Superintendent Eppelheimer presented information to the Committee regarding the total payroll checks (or equivalent) prepared by the District during 2015. A total of 11,670 checks and 1,150 W2s were prepared.
The District’s books are still open for 2015 but the anticipated surplus is in the $950,000 range. Given the large spending in capital during 2015, staff felt this was a good result.
The Committee then discussed possible additional goals for the District during 2016. These included consultant reviews, Gillson financing parameters, review of health care insurance, review of all expenses within the District, pension discussions and asset management as it relates to capital improvement expenditures. Other topics maybe included before the Committee decides on the goals.
VII. Next Meeting
The next meeting is scheduled for February 22, 2016 at 6:30 p.m.
There being no further business to conduct, the meeting was adjourned at 8:11 p.m.