HomeMy WebLinkAboutMinutes - Budget and Finance Commission - 6/18/2019 MINUTES
ORO VALLEY BUDGET AND FINANCE COMMISSION
REGULAR SESSION
TUESDAY JUNE 18,2019
HOPI CONFERENCE ROOM
11000 N.LA CANADA DRIVE
CALL TO ORDER— Chairman Beasley called the meeting to order at 4:00 p.m.
ROLL CALL
PRESENT: James Beasley,Chairman
John Latchford,Vice Chairman
Chuck Kill,Commissioner
David Newell,Commissioner
Cathy Solverson,Commissioner
STAFF PRESENT: Joseph C.Winfield,Mayor
Mary Jacobs,Town Manager
Stacey Lemos,Administrative Services Director/CFO
Wendy Gomez,Senior Budget Analyst
CALL TO AUDIENCE
No speakers
AGENDA
1. APPROVAL OF MAY 14,2019 MINUTES
MOTION: A motion was made by Vice Chairman Latchford and seconded by
Commissioner Solverson to approve the May 14,2019 minutes as written.
MOTION carried,5-0.
2. REVIEW AND DISCUSSION OF FINANCIAL STATUS UPDATE THROUGH
APRIL,2019
Ms.Lemos discussed the April financials with the Commission.
There was discussion regarding the construction project of a new entrance at the First
Avenue/Tangerine Safeway plaza. Commissioner Kill asked who would be paying for
the new road and why was it needed.Ms.Jacobs stated the Town would be adding a
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new right in right out entrance off of Tangerine due to the number of accidents at the
intersection.
Ms. Lemos stated that in the Community Center Fund, the contracted revenues are
estimated to end the year 1.9%over budget,largely due to outside golf play.
Chairman Beasley asked if the golf line item was all outside golf. Ms.Lemos stated yes.
3. DISCUSSION OF DRAFT PENSION FUNDING POLICY AND POSSIBLE
ACTION REGARDING RECOMMENDATION TO TOWN COUNCIL
Discussion ensued between the Commission and Staff regarding the interest rate and the
minimum contribution to the PSPRS as well as additional payments.
Chairman Beasley stated he believed the actual pension liability is significantly
understated,and it is understated because the interest rate is too high.
Ms.Jacobs mentioned she would not recommend to the Council that they choose an
interest rate that is not substantiated by our own actuarial analysis.
Commissioner Solverson mentioned additional payments need to be made sooner rather
than later,and not wait until the bill is due.
Vice Chairman Latchford stated that he would like to see this be overfunded rather than
underfunded.
Commissioner Solverson asked if it becomes a situation if you don't comply with the
policy.
Ms.Jacobs stated the policy has to be readopted every year by Council.
Ms. Lemos informed the Commission that statue specifically requires the Council to
formally accept the assets liabilities and current funding ratio based on the most recent
actuarial evaluation.
MOTION: A motion was made by Commissioner Newell and seconded by Vice Chairman
Latchford to maintain status on the recommended draft policy as presented by staff and
to include budgeting for an additional annual payment toward the unfunded liability,in
addition to the required minimum employer contribution in each budget year.
MOTION carried,5-0.
4. REVIEW AND DISCUSSION ON STAFF'S FINANCIAL PROJECTIONS FOR
GOLF COURSE OPTIONS
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Chairman Beasley asked if the consulting group that did the study and recommendations
for the golf course in 2017 be brought back,so an update to the study can be discussed
in order for the Commission to make a current recommendation to the Council regarding
the golf course.
Commissioner Newell stated he believed there were a number of errors missed in the
report, including a$250,000.00 service contract that was to expire and he could not
support having them back.
Vice Chairman Latchford asked what the cost was for the report.
Ms.Lemos stated around$50,000.00
Discussion ensued between Ms.Jacobs and the Commission regarding no golf and the
options of natural desert, refined desert, groomed desert and park along with costs
associated with each option.
Mayor Winfield stated the Town Council has a special meeting,opened to the public on
July 24,2019,at the Church of the Nazarene on this topic.
5. COMMISSION LIAISON COMMENTS—MAYOR WINFIELD
Mayor Winfield handed out a Strategic Leadership Plan brochure along with a Census
flyer.
Mayor Winfield informed the Commission that the FY19/20 budget was adopted
unanimously.
FUTURE AGENDA ITEMS
Chairman Beasley asked for golf to be placed on the agenda.
Commissioner Solverson mentioned the Pension Policy.
May Financials
Chairman Beasley asked that the August meeting be placed on the agenda to discuss
whether it should be canceled.
NEXT MEETING: July 16,2019 in the Hopi conference room
ADJOURNMENT
MOTION:A motion was made by Commissioner Newell and seconded by Vice
Chairman Latchford to adjourn the meeting at 7:26p.m.
MOTION carried,5-0.
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Prepared by:
CA,t,boafx)
Veronica Cubbage
Senior Office Specialist
I hereby certify that the foregoing minutes are a true and correct copy of the minutes of
the regular session of the Budget and Finance Commission of Oro Valley,Arizona held
on the 1815 day of June,2019.I further certify that the meeting was duly called and held
and that a quorum was present.
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