Loading...
HomeMy WebLinkAboutMinutes - Finance and Bond Committee - 4/28/2008 Town of Oro Valley Finance and Bond Committee Regular Meeting Hopi Conference Room 11000 N. La Canada Drive Oro Valley, Arizona Monday, April 28, 2008 6:00 p.m. CALL TO ORDER AT 6:02 p.m. ROLL CALL PRESENT: Tony Eichorn, Chair Chuck Kill, Vice-Chair Dan Toth, Member Peter Lamm, Member Bob Harris, Member STAFF PRESENT: Stacey Lemos, Finance Director Wendy Gilden, Management and Budget Analyst Susann BeDell, Senior Office Specialist ALSO PRESENT: Helen Dankwerth, Council Liaison 1. APPROVAL OF MINUTES FROM THE MARCH 31, 2008 SPECIAL MEETING MOTION: Member Harris MOVED to approve the March 31, 2008 minutes. The motion was SECONDED by Member Toth. Motion carried 5-0. 2. REVIEW OF FINANCE AND BOND COMMITTEE SCOPE AND CONSIDER AMENDMENT TO INCLUDE COMMITTEE REVIEW OF FUTURE RECOMMENDATIONS BY FINANCE STAFF FOR TOWN AUDIT SERVICES — DISCUSSION AND POSSIBLE ACTION (CONTINUED ITEM FROM JANUARY 28, 2008 MEETING) Stacey Lemos, Finance Director, noted that there has only been one amendment to the Rules and Procedures. Any amendment needs to be approved by the Mayor and Council. Member Lamm noted that the future makeup of Finance and Bond Committee members may not include people who have audit experience and that this amendment may be a time consuming proposition if that were the case. Member Harris noted that he believed that the Finance and Bond Committee should have a representative voice in the selection of Town auditor. MOTION: Member Kill MOVED to Recommend Approval to Council of an amendment to the Finance and Bond Committee Rules and Procedures to allow for committee review and input on staff's recommendation for hiring future independent audit firms for 4/28/2008 Action Summary, Finance and Bond Committee 2 the Town of Oro Valley. Member Toth SECONDED. Motion passed 3-2. (Members Lamm and Harris opposed). 3. REVIEW OF PROPOSED PARKS AND RECREATION FEE RECOVERY POLICY - DISCUSSION Ms. Lemos presented the Proposed Parks and Recreation Fee Recovery Policy. The Policy is based on what most other jurisdictions charge and how they manage their parks and recreation usage and fees. Discussion ensued that included a slant toward fee differences between residents and non-residents for the programs that are not excluded from it by a Pima County Bond Agreement. Additional discussion took place regarding bringing the fee recovery up from 16% to 30%. The Committee settled on the decision to have Ms. Lemos present the Committee's recommendation to review and raise the fees in her presentation at the May 7 Council meeting. 4. REVIEW OF TOWN USE OF PROCEEDS FROM LONG-TERM DEBT ISSUANCES — DISCUSSION AND POSSIBLE ACTION Ms. Lemos presented the standard report on long term debt issuances to the Committee regarding use of these funds as outlined in the report. MOTION: Member Lamm MOVED that with regard to the quarterly review of proceeds from long-term debt issuances, to forward the report to Town Council with a favorable recommendation for Council acceptance. Member Harris SECONDED. Motion passed 5-0. 5. PRESENTATION OF TOWN FINANCIAL UPDATE AS OF QUARTER ENDING MARCH 31, 2008 — DISCUSSION AND POSSIBLE ACTION Ms. Lemos summarized the 3rd Quarter Budget Report which included General Fund and Highway Fund projected revenues. Also included in the report were projections for the Public Transit Fund, the Townwide Development Impact Fee Fund, the Water Utility Fund, and the Stormwater Utility Fund. The Capital Improvement Program (CIP) shows that the Town is 66% complete with General Fund projects, and Highway Fund projects are expected to be complete before year-end. MOTION: Member Lamm MOVED to recommend Council acceptance of the 3rd quarter budget report for FY 2007/08. Member Toth SECONDED. Motion passed 5-0. 6. REVIEW OF PROPOSED FY 2008/09 TOWN BUDGET AND 10-YEAR FINANCIAL SUSTAINABILITY PLAN UPDATE — DISCUSSION AND POSSIBLE ACTION Ms. Lemos presented a review of the Proposed FY 2008/09 Recommended Town Budget. The Town Manager pared down approximately $4.5M from the departments' funds details of which are outlined in the packet handout. Ms. Lemos included a copy of the 10-Year Financial Sustainability Plan for the General and Highway Fund assumptions in the packet which will be discussed in more detail in a 4/28/2008 Action Summary, Finance and Bond Committee 3 budget review session in May. An updated Town Financial Planning Calendar was also included in this packet showing the dates of meetings coming up for Council to review all budget information. All Members are invited to attend these meetings. Members feel it would be beneficial to focus on longer term financing in the future and also to extend a more formal invitation to Council Members to attend the Finance and Bond Committee meetings in the future. Chair Eichorn opened the floor to public comments at this time. Doug McKee, Chairman — Planning & Zoning Committee spoke regarding this agenda item. Mr. McKee noted that General Fund Assumptions begin a steady increase in FY 2011 and he is not sure that is a good assumption. He has seen a lot of forecasts and one stated that a slow down in consumer spending is inevitable for the next 3 years. The nation's savings rate is at 0.3%. His opinion is that the slowdown is going to take longer to come back than most people think. Mr. McKee does not feel that 2 years will be long enough. The General Fund Assumptions do not include any annexation assumptions for 5 to 10 years. The money spent this year on Arroyo Grande will not be the end of the spending on the annexation assumption. Mr. McKee believes that raises for the county are going to be zero. Additionally, some work in Bond programs will not happen. Regarding the Town Manager's Recommended Budget Booklet, he was disappointed on the lack of level of detail. The appendix should have had other items in there - tax rebates are buried. There is one reference made about the bed tax, and all others are buried. The Library comparison against 08/09 on revenue looked odd to him as it showed that we are going to get $40K more next year, however, expenses are the same. He noted that goals are listed for each department, but he was not sure if those are all the goals that the departments are going to be measured by, as they look skimpy. The booklet also needs an appendix on the water department. We are spending a lot of money on CAP water and the public has no way of seeing how much we are spending on that now, and in the next few years. Right now it is buried. Steam Pump Ranch does not show where the funding is coming from, and that needs to be clarified. Ms. Lemos recognized Wendy Gilden for her excellent work on the budget document. 7. COMMITTEE MEMBER/COUNCIL MEMBER LIAISON REPORTS Council Liaison, Helen Dankwerth, noted that this may be her last meeting as Council Liaison and that she will continue to attend the Finance and Bond meetings in the future. 8. FUTURE AGENDA ITEMS Continuation of Agenda Item No. 6. Suggestion that Council members attend Finance and Bond Meetings, or have a rotating Council liaison. 4/28/2008 Action Summary, Finance and Bond Committee 4 Next special meeting scheduled for June 2, 2008 at 6:00 p.m. in the Hopi Room. 9. ADJOURNMENT MOTION: Chair Eichorn MOVED to ADJOURN the meeting, SECONDED by Member Toth. Motion carried 5-0. The meeting adjourned at 8:09 p.m. Prepared by: 4ef'—'))7jTh1 1 Susann e�ell Senior Office Specialist