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HomeMy WebLinkAboutMinutes - Finance and Bond Committee - 10/31/2005MINUTES TOWN OF ORO VALLEY FINANCE AND BOND COMMITTEE REGULAR MEETING HOPI ROOM DEVELOPMENT SERVICES BUILDING 11,000 N. LA CANADA DRIVE ORO VALLEY, ARIZONA MONDAY, OCTOBER 31, 2005 6:00 P.M. PRESENT: Lyra Done, Chair Tony Eichorn, Vice -Chair Sarah Frost, Member Aaron Fisher, Member (excused at 6:34 p.m.) STAFF PRESENT: David Andrews, Assistant Town Manager Mary Rallis, Accounting Supervisor Wendy Gilden, Management & Budget Analyst Danielle Tanner, Senior Office Specialist ALSO PRESENT: Helen Dankwerth, Town Council Member Dennis Osuch, Partner, Cronstrom & Trhovich and Osuch Chuck Kill, Oro Valley Citizen 1. APPROVAL OF MINUTES FROM THE AUGUST 29, 2005 MEETING Chair Done suggested that the word "autographed" be added to the description of the book she distributed at the last meeting. MOTION: Vice -Chair Eichorn MOVED to approve the minutes from the August 29, 2005 meeting as amended. Member Fisher SECONDED the motion. Motion carried, 4-0. 2. CONSIDERATION AND RECOMMENDATION REGARDING ACCEPTANCE OF TOWN'S FINANCIAL AUDIT FOR THE FISCAL YEAR ENDED JUNE 30, 2005 Mr. Osuch discussed the following: • There was no management letter this year so there were no findings. • The first report that they will issue is the Annual Expenditure Limitation Report. The Town is below the annual expenditure limitation. They are issuing an unqualified opinion and it will go to the State Auditor General. CADocuments and Settings\lhersha\Local Settings\Temporary Internet Files\OLK8\10-31-05 Meeting.doc MINUTES, FINANCE AND BOND REGULAR MEETING 2 • A single audit of the federal program was completed. There were two programs that they audited which were the COPS Fast Grant program and the HIDTA Grant. They had no findings related to either grant so they will be issuing an unqualified opinion. • There were no findings for the Comprehensive Annual Financial Report and they will be issuing an unqualified opinion. • They will be presenting two prior period adjustments. The first one will be done because they are adding infrastructure required by the new reporting model. The other one is for compensated absences. Historically it was reported as an expense in the governmental funds. It can not be recorded as an expense so they did a prior period adjustment. They are designating a portion of Fund Balance for the compensated absences. • There is a new special assessment debt of $3.9M. • The major funds are the focus of the financial statements. The major funds are the General Fund, Highway User Revenue Fund, Public Transportation Funds, Oracle Road Debt Service Fund and the Townwide Roadway Development Impact Fees Fund. MOTION: Vice -Chair Eichom MOVED that the Town's financial audit for the fiscal year ended June 30, 2005 be forwarded to the Town Council with a favorable recommendation for Council acceptance. Member Frost SECONDED the motion. Motion carried, 4-0. Chair Done suggested that an alternate also be chosen in the event that the CIP Committee representative is unable to attend a meeting. Ms. Rallis stated that there will be two meetings. f The meetings will be on December 9th and January 13th in the Council Chambers. MOTION: Member Fisher MOVED to appoint Chair Done as the primary and Vice -Chair Eichorn as the alternate to the Capital Improvement Program Technical Advisory Committee as the Finance and Bond Committee's representatives. Member Frost SECONDED the motion. Motion carried, 4-0. Ms. Rallis reported on the following: a. Oracle Road Improvement District —The funds paid to date are $2,940,613. The project is scheduled for completion in November 2005. b. Municipal Property Corporation Senior Lien Water Project Revenue Bonds, Series 2003 The funds paid to date are $16,209,879. Project completion is scheduled for July 2005. Excise Tax Revenue Obligations, Series 2005 — The amount of $6,215,368 was issued on September 291h 2005 for the Municipal Operations Center. The funds paid to date are $4,774,705 for the land acquisition. Mr. Andrews explained that the location of the project is Rancho Vistoso Boulevard and Innovation Way. C:\Documents and Settings\lhersha\Local Settings\Temporary Internet Files\01,K8\10-31-05 Meeting.doc 2 MINUTES, FINANCE AND BOND REGULAR MEETING Chair Done stated that the Committee should revisit the projections as soon as the General Plan election is over. Mr. Andrews stated that staff will begin work on the long term projections when the new Finance Director arrives. MOTION: With regard to the quarterly review of proceeds from long-term debt issuances, Member Frost MOVED to forward the report to the Town Council with a favorable recommendation for Council acceptance. Vice -Chair Eichorn SECONDED the motion. Motion carried, 4-0. 10W, WE IN RVA N011 11 RM.,• Mr. Andrews reported that we closed the first quarter on September 30t1'. Typically there is little data from this report but due to the Town's revenue issues, staff did a projection for this fiscal year end for all of the major funds. Ms. Rallis reviewed the following: •General Fund— • Local sales tax collections including construction tax and retail sales tax, tax collections on restaurants and bars, hotel/motel sales tax revenues. • State shared revenues • Residential building permits • Commercial building permits • Highway Fund • Public Transportation Fund • Townwide Roadway Development Impact Fees Fund — Council Member Dankwerth stated that Tucson raised their fees and she asked if the Town should look into this. She suggested that staff prepare a presentation for Council consideration. She asked that this item be on the agenda for the next Committee meeting. Chair Done concurred. • Oro Valley Water Utility Chair Done stated that operations and maintenance expenditures for the Highway Revenue Fund are about 5.5% above the 25% that should have been spent in the first quarter. She asked about factors relating to this. Mr. Andrews stated that staff will research this item further. MOTION: Member Frost MOVED to recommend Council acceptance of the first quarter financial status report. Vice -Chair Eichorn SECONDED the motion. Motion carried, 3-0. 6. COMMITTEE UPDATE REGARDING UTILITY SALES TAX Chair Done explained that on October 5th, the Town Council denied the Committee's recommendation of implementation of the utility sales tax. She stated that the Town will have to make up the $1.9M estimated income from the tax. Council Member Dankwerth stated that the evening of October 5t1', the Council also discussed the fact that the Judge had sent the Vestar SOVOG appeal. There were many people speaking CADocuments and Settings\lhersha\Local Settings\Temporary Internet Fi1es\0LK8\10-31-05 Meeting.doc 3 against the utility sales tax. She stated that she would like to resubmit the idea or talk about an increase in sales tax revenue which would collect an equivalent amount of money. Chair Done stated. that under Fitches ratings it says that Town leadership will likely consider changes in the local sales tax exemptions. Council Member Dankwerth stated that it could be done on goods and services other than life support and medical services. Chair Done stated that it also says that the Town has covenanted that it will raise sales tax rates or institute new sales taxes to maintain a two times coverage if necessary. Council Member Dankwerth stated that the Council may not fully understand this issue. Member Frost suggested getting the community more involved, Mr. Andrews agreed with this but stated that direction from Council is needed. Member Frost asked to revisit the topic of the research being done regarding new businesses. Mr. Andrews stated that Jeff Weir could attend a future meeting and give a presentation. He stated that he would ask any Department Head to attend a meeting at the Committee's request. Chair Done suggested that the Public Works Director attend a future meeting to discuss the use of the allocation of the 2% construction tax, The Committee agreed that there seems to be no reason to have a meeting in November or December this year. MOTION: Vice -Chair Eichorn MOVED to ADJOURN the meeting at 7:09 p.m. Member Frost SECONDED the motion. Motion carried, 3-0. Respectfully submitted, _Ati AJ-1 Danielle Tanner Senior Office Specialist CADocuments and Settings\lhersha\Lon, I Settings\Ternporary Internet H I es\OLK8\10-31-05 Meeting.doc 4