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2018 11 14 FAC MinutesFINANCIAL ADVISORY COMMISSION MINUTES 1 NOVEMBER 14, 2018 FINANCIAL ADVISORY COMMISSION MINUTES WEDNESDAY, NOVEMBER 14, 2018 CALL TO ORDER A regular meeting of the La Quinta Financial Advisory Commission (Commission) was called to order at 4:00 p.m. by Chairperson Mills. PRESENT: Commissioners Batavick, Lopez, Rosen, Turbow, Twohey, and Chairperson Mills ABSENT: None VACANCY: One PLEDGE OF ALLEGIANCE Commissioner Turbow led the audience in the Pledge of Allegiance. PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA – None. CONFIRMATION OF AGENDA Finance Director Campos said Mr. Mark Johnson resigned from the Commission effective November 8, 2018. Finance Director Campos asked the Commission to take up the Departmental Reports portion of the agenda out of order and consider it first. The Commission concurred. taken out of order >>> DEPARTMENTAL REPORTS 1.SILVERROCK DEVELOPMENT – VERBAL UPDATE City Manager Spevacek said the City Council approved Amendment No. 3 to the Purchase, Sale, and Development Agreement (Amendment No. 3) between the City and SilverRock Development Company regarding SilverRock development; and provided a brief overview of the terms of Amendment No. 3, current land value, master site infrastructure needs, proposed improvement schedule, financing, ownership structure, and funding. 2.SECOND QUARTER 2018 (APRIL – JUNE 2018) SALES TAX UPDATE Financial Services Analyst Hallick presented the staff report, which is on file in the Finance Department. FINANCIAL ADVISORY COMMISSION MINUTES 2 NOVEMBER 14, 2018 Staff and Commission discussed the timing and adjustments for sales tax disbursements. 3. REQUEST FOR PROPOSALS FOR BANKING AND MERCHANT SERVICES – VERBAL UPDATE Finance Director Campos said the deadline for submittal was November 2, 2018 and have received four proposals. There were two additional banks that had initially intended to respond but did not receive the supplementary information, therefore we will be reissuing the request for proposal. The current responders will be allowed to keep their current responses or reissue a new proposal. 4. YEAR-END AUDITS – VERBAL UPDATE Finance Director Campos discussed the current audits that have been conducted so far for fiscal year 2017/18 which include the Citywide Final Audit, Measure A Audit, and the Annual Street Audit and reporting requirements. The next two upcoming audits include the Single Audit and the Housing Compliance audit. The Comprehensive Annual Financial Report (CAFR) will be issued by December 30th and will be available online and the Commission will be provided a printed copy. The auditors will be out in January to co-present the CAFR with an emphasis on any major projects, cash differences, and investments that occurred during the fiscal year. The next City council meeting will include separate year-end budget reports for the General Fund and Housing Authority funds and the General Fund report will be presented to the Commission. 5. ANNUAL COMMUNITY WORKSHOP AND BUDGET VIDEO – VERBAL UPDATE Finance Director Campos said the City offers several leadership development training opportunities. One such opportunity is the La Quinta Academy 1.0. City Departments pitch projects to participating Staff who collaborate as teams to complete them. One of this year’s projects included the creation of a budget video providing an overview of the City’s revenues and expenses and depicting the public services, capital improvement programs, parks, safety, events, affordable housing, etc. provided to the community; and played the video for the Commission. ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS – None. CONSENT CALENDAR ITEMS 1. APPROVE MINUTES DATED AUGUST 8, 2018 2. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORTS DATED JUNE 30, 2018 3. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORTS DATED JULY 31, 2018 FINANCIAL ADVISORY COMMISSION MINUTES 3 NOVEMBER 14, 2018 4. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORTS DATED AUGUST 31, 2018 5. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORTS DATED SEPTEMBER 30, 2018 6. RECEIVE AND FILE FIRST QUARTER 2017/18 TREASURER REPORTS FOR JULY, AUGUST, AND SEPTEMBER 2018 The Commission discussed revenues and expenses listed in Reports dated June 30 and July 31, 2018 with regards to debt service payments for the Redevelopment Agency remitted by the Department of Finance and Washington Street Apartments rehabilitation project, respectively; and First Quarter 2017/18 Treasurer Reports for July, August, and September 2018 regarding corporate notes and investments. Motion – A motion was made and seconded by Commissioners Batavick/Lopez to approve the Consent Calendar as recommended. Motion passed – (ayes 6, noes 0, absent 0, vacancy 1). BUSINESS SESSION 1. RECEIVE AND FILE FOURTH QUARTER 2017/18 TREASURY REPORTS FOR APRIL, MAY, AND JUNE 2018 WITH FISCAL YEAR-END SUMMARY Financial Services Analyst Hallick presented the staff report, which is on file in the Finance Department. Financial Services Analyst Hallick gave a presentation on an overview of investments and market updates. Motion – A motion was made and seconded by Commissioners Twohey/Lopez to receive and file the fourth quarter 2017/18 Treasury Reports. Motion passed– (ayes 6, noes 0, absent 0, vacancy 1). 2. RECEIVE AND FILE THE FISCAL YEAR 2018/19 FIRST QUARTER BUDGET REPORT Finance Director Campos presented the staff report, which is on file in the Finance Department. An overall update of the General Fund including revenue, expenditure adjustments, sales tax revenue, and pension obligations was discussed. Motion – A motion was made and seconded by Commissioners Lopez/Twohey to receive and file the fiscal year 2018/19 First Quarter Budget Report. Motion passed– (ayes 6, noes 0, absent 0, vacancy 1). FINANCIAL ADVISORY COMMISSION MINUTES 4 NOVEMBER 14, 2018 3. APPOINT TWO COMMISSIONERS TO FORMULATE AND APPROVE THE ANNUAL MEASURE G SALES TAX REPORT Finance Director Campos presented the staff report, which is on file in the Finance Department. She requested that two Commissioners work with Staff to formulate the annual Measure G sales tax oversight compliance report. Commissioners Rosen and Twohey expressed their willingness to participate in working with Staff to formulate the 2017/18 Measure G Sales Tax Oversight Compliance Report. Motion – A motion was made and seconded by Commissioners Twohey/Rosen to appoint Commissioners Rosen and Twohey to formulate and approve the Annual Measure G Sales Tax Report. Motion passed– (ayes 6, noes 0, absent 0, vacancy 1). STUDY SESSION – None. CORRESPONDENCE AND WRITTEN MATERIAL – None. COMMISSIONERS’ ITEMS – None. ADJOURNMENT There being no further business, it was moved and seconded by Commissioners Lopez/Twohey to adjourn this meeting at 5:54 p.m. Motion passed– (ayes 6, noes 0, absent 0, vacancy 1). Respectfully submitted, Claudia Martinez, Senior Accountant City of La Quinta, California