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2019 02 13 FAC MinutesFINANCIAL ADVISORY COMMISSION MINUTES 1 FEBRUARY 13, 2019 REGULAR QUARTERLY MEETING FINANCIAL ADVISORY COMMISSION MINUTES WEDNESDAY, FEBRUARY 13, 2019 CALL TO ORDER A regular quarterly meeting of the La Quinta Financial Advisory Commission (Commission) was called to order at 4:00 p.m. by Chairperson Mills. PRESENT: Commissioners: Batavick, Hunter, Rosen, Turbow, Twohey, and Chairperson Mills ABSENT: Commissioner Lopez PLEDGE OF ALLEGIANCE Commissioner Batavick led the audience in the Pledge of Allegiance. PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA – None CONFIRMATION OF AGENDA The Commission welcomed Commissioner Hunter to the Commission and all Commissioners shared a brief introduction of their backgrounds. Staff requested that the Study Session portion of the meeting be moved up and considered immediately after the Consent Calendar. The Commission concurred. ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS – None CONSENT CALENDAR ITEMS 1. APPROVE FINANCIAL ADVISORY COMMISSION MINUTES DATED NOVEMBER 14, 2018 2. APPROVE FINANCIAL ADVISORY COMMISSION MINUTES DATED DECEMBER 10, 2018 3. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORTS DATED NOVEMBER 30, 2018 4. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORTS DATED DECEMBER 31, 2018 5. RECEIVE AND FILE SECOND QUARTER 2018/19 TREASURY REPORTS FOR OCTOBER, NOVEMBER, AND DECEMBER 2018 REPORTS AND INFORMATIONAL ITEM NO. 1 FINANCIAL ADVISORY COMMISSION MINUTES 2 FEBRUARY 13, 2019 REGULAR QUARTERLY MEETING Motion – A motion was made and seconded by Commissioners Rosen/Twohey to approve the Consent Calendar, as submitted. Motion passed: ayes 6, absent 1 (Lopez). taken out of order >>> STUDY SESSION 1. DISCUSS THE 2019 COMMUNITY WORKSHOP AND 2019/20 BUDGET PROCESS Finance Director Campos, Management Analyst Mignogna, and Facilities Director Howlett, presented the staff report, which is on file in the Finance Department. Staff and Commission discussed current financial projections and potential items that could impact projection totals. Management Analyst Mignogna provided an update on the current capital improvement program (CIP) projects and demonstrated the CIP Story Map on the City’s website for current project locations. Further discussion followed regarding La Quinta X-Park design, analysis, and comparison with similar facilities in other cities, potential liability exposure and insurance requirements, and budget impact; La Quinta Cove parking lot public restroom design plans; SilverRock Resort project current status; Madison Street Widening project construction phase, Indio is the lead agency, and La Quinta’s input for the project plans; signage that’s used for projects; and CIP funds management. BUSINESS SESSION 1. RECEIVE AND FILE COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR YEAR ENDING JUNE 30, 2018 Finance Director Campos and Certified Public Accountant/Partner of Vavrinek, Trine, Day & Co., an auditing firm, Phillip White presented the staff report, which is on file in the Finance Department. The Commission discussed long-term debt for capital leases and compensated absences. Mr. White explained audit standards for financial reporting and internal control letter provided with the single audit. Finance Director Campos said the City recently completed a Caltrans special audit and announced upcoming audits scheduled over the next few months. Motion – A motion was made and seconded by Commissioners Batavick/Mills to receive and file the Comprehensive Annual Financial Report for year ending June 30, 2018, as submitted. Motion passed: ayes 6, absent 1 (Lopez). 2. RECEIVE AND FILE THE MEASURE G COMPLIANCE REPORT FOR FISCAL YEAR 2017/18 Finance Director Campos presented the staff report, which is on file in the Finance Department. FINANCIAL ADVISORY COMMISSION MINUTES 3 FEBRUARY 13, 2019 REGULAR QUARTERLY MEETING The Commission discussed Public Safety funds. Staff said funds not used are transferred into Measure G reserves. Motion – A motion was made and seconded by Commissioners Hunter/Rosen to receive and file the Measure G compliance report for fiscal year 2017/18, as submitted. Motion passed: ayes 6, absent 1 (Lopez). 3. RECEIVE AND FILE FISCAL YEAR 2018/19 MID-YEAR BUDGET REPORT Finance Director Campos presented the staff report, which is on file in the Finance Department. The Commission discussed updated revenue projections; General Fund reserve adjustments based on Councils direction; and the balance of all reserve categories. Motion – A motion was made and seconded by Commissioners Batavick/Twohey to receive and file fiscal year 2018/19 Mid-Year Budget Report, as submitted. Motion passed: ayes 6, absent 1 (Lopez). 4. APPROVE STAFF RECOMMENDATION OF A PUBLIC AGENCY RETIREMENT SERVICE TRUST Finance Director Campos and Executive Vice-President Mitch Barker from PARS, a firm specializing in retirement service plans for public agencies presented the staff report, which is on file in the Finance Department. The Commission discussed current fund liability; discount rate comparison from 2015 to current year; pension funding and additional contribution funds sent to CalPERS; the benefits of having a trust; fund investment options with PARS; and the evaluation of options prior to selecting a strategy. Staff provided the Commission with a strategic asset allocation handout. Motion – A motion was made and seconded by Commissioners Batavick/Turbow to approve staff recommendation of a public agency retirement service trust, as submitted. Motion passed: ayes 6, absent 1 (Lopez). DEPARTMENTAL REPORTS Staff provided the Commission with verbal updates on Departmental Report Items No. 1 and 3. Departmental Report Item No. 2 is on file in the Finance Department. COMMISSIONER BATAVICK LEFT THE DAIS AT 6:25 P.M COMMISSIONER BATAVICK RETURNED TO THE DAIS AT 6:27 P.M 1. MEASURE G – TRANSACTION & USE TAX – CITY WEB PAGE UPDATE 2. THIRD QUARTER 2018 SALES TAX UPDATE FOR THE CITY OF LA QUINTA 3. SILVERROCK EVENT SITE – VERBAL UPDATE COMMISSIONERS’ ITEMS – None FINANCIAL ADVISORY COMMISSION MINUTES 4 FEBRUARY 13, 2019 REGULAR QUARTERLY MEETING ADJOURNMENT There being no further business, it was moved and seconded by Commissioners Rosen/Turbow to adjourn this meeting at 6:35 p.m. Motion passed: ayes 6, absent 1 (Lopez). Respectfully submitted, Jessica Delgado, Management Assistant City of La Quinta, California