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2019 06 05 FAC Minutes FINANCIAL ADVISORY COMMISSION MINUTES 1 JUNE 5, 2019 SPECIAL MEETING FINANCIAL ADVISORY COMMISSION SPECIAL MEETING MINUTES WEDNESDAY, JUNE 5, 2019 CALL TO ORDER A special meeting of the La Quinta Financial Advisory Commission (Commission) was called to order at 4:00 p.m. by Chair Mills. PRESENT: Commissioners: Batavick, Hunter, Lopez, Rosen, Twohey, and Chair Mills ABSENT: Commissioner Turbow PLEDGE OF ALLEGIANCE Commissioner Hunter led the audience in the Pledge of Allegiance. PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA – None CONFIRMATION OF AGENDA – Confirmed ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS – None CONSENT CALENDAR ITEMS 1. APPROVE FINANCIAL ADVISORY COMMISSION MINUTES DATED MAY 15, 2019 2. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED APRIL 30, 2019 Motion – A motion was made and seconded by Commissioners Twohey/Lopez to approve the Consent Calendar, as submitted. Motion passed: ayes 6, noes 0, absent 1 (Turbow). BUSINESS SESSION 1. APPROVE WRITE-OFF OF OUTSTANDING INTERFUND LOANS Finance Director Romero presented the staff report, which is on file in the Finance Department. The Commission and Staff discussed the outstanding loans for the SilverRock Resort Fund; the three Development Impact Fee (DIF) loans; the history and overview of these outstanding loans that are due to the General Fund; DIF revenue projections; and pending DIF fees for the SilverRock Resort event site. FINANCIAL ADVISORY COMMISSION MINUTES 2 JUNE 5, 2019 SPECIAL MEETING Further discussion followed on how the accounting journal entry for writing off these loans is recorded and disclosed in the City’s financial statements and the impacts related to the overall Fund balance. Motion – A motion was made and seconded by Commissioners Batavick/Rosen to recommend Council approval to write-off the outstanding interfund loans. Motion passed: ayes 6, noes 0, absent 1 (Turbow). STUDY SESSION 1. DISCUSS FISCAL YEAR 2018/19 FOURTH QUARTER BUDGET REPORT Finance Director Romero presented the staff report, which is on file in the Finance Department. The Commission and staff discussed the allocation of savings from the Police contract and unexpended land acquisition budget; the interfund transfers to the Economic Development Fund, Public Safety Fund, and the Facility and Fleet Fund; and the management of funds for economic development. 2. DISCUSS PROPOSED FISCAL YEAR 2019/20 BUDGET Finance Director Romero presented the staff report, which is on file in the Finance Department. The Commission and staff discussed the City’s portion of funding for the La Quinta schools resource officers; other General Fund amended requests approved by Council at the June 4, 2019 meeting, which reduced the anticipated budget surplus; and the Unassigned Fund balance. The Commission suggested reviewing the 10-year financial projections discussed at the Community Workshop held on January 12, 2019. Staff said they would add the item to a special Commission meeting on August 7, 2019. Staff announced that the City’s 2019/20 Citizen Budget Mailer will be placed in the City’s Gem as an article instead of being mailed out as a brochure. DEPARTMENTAL REPORTS Departmental Report Item No. 1 is on file in the Finance Department. Staff provided the Commission with verbal updates on Departmental Report Items No. 2 and 3. 1. AWARD FOR EXCELLENCE IN GOVERNMENT FINANCE Financial Services Analyst Hallick presented the staff report, which is on file in the Finance Department. Staff announced that the City’s General Fund Balance and Reserves Policy won an award from the Government Finance Officers Association for best practices. The Commission suggested posting the award on the City’s website and staff said they would be adding it on the website as well as in a City’s Gem article. FINANCIAL ADVISORY COMMISSION MINUTES 3 JUNE 5, 2019 SPECIAL MEETING 2. VERBAL UPDATE ON BANKING AND MERCHANT SERVICES Financial Services Analyst Hallick announced that Council approved a contract with Bank of the West for banking and merchant services with the City. She explained the process and steps that would be taken for the City’s transfer from one bank to another. Commissioner Batavick complimented staff on the how the staff report was presented to Council at the June 4, 2019 meeting. Staff announced that Council has appointed Jon McMillen as the new City Manager effective July 1, 2019; gave a brief overview of his background with the City as a consultant; and Jon McMillen’s role during the banking implementation plan 3. VERBAL UPDATE ON THE INVESTMENT STRATEGY SUB-COMMITTEE FOR PUBLIC AGENCY RETIREMENT SERVICE TRUST Finance Director Romero provided the Commission with an update on the Public Agency Retirement Service Trust. She let the Commission know it is currently waiting the City Manager’s signature, so that an investment strategy can be recommended by with the Commission’s sub-committee. 4. VERBAL UPDATE ON REQUEST FOR INFORMATION FOR INVESTMENT BROKERS Financial Services Analyst Hallick let the commission know that an updated request for information (RFI) for investment brokers would be posted on the City’s website on June 6, 2019. She explained that this updated RFI would provide the most current Investment Policy adopted by Council on June 4, 2019 and further clarification of the City’s needs. COMMISSIONERS’ ITEMS – None ADJOURNMENT There being no further business, it was moved and seconded by Commissioners Turbow/Lopez to adjourn this meeting at 6:08 p.m. Motion passed: ayes 6, noes 0, absent 1 (Turbow). Respectfully submitted, Jessica Delgado, Management Assistant City of La Quinta, California