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2021 02 24 FAC Minutes FINANCIAL ADVISORY COMMISSION MINUTES 1 FEBRUARY 24, 2021 SPECIAL MEETING FINANCIAL ADVISORY COMMISSION SPECIAL MEETING MINUTES WEDNESDAY, FEBRUARY 24, 2021 CALL TO ORDER A special meeting of the Financial Advisory Commission (Commission) was called to order at 4:00 p.m. by Chairperson Mills. This meeting was held by teleconference pursuant to Executive orders N-25-20, N- 29-20, N-33-20, N-35-20, and N-60-20 executed by the Governor of California in response to the state of emergency relating to novel coronavirus disease 2019 (COVID-19) and enabling teleconferencing accommodations by suspending or waiving specified provisions of the Ralph M. Brown Act (Government Code § 54950 et seq.). PRESENT: Commissioners Batavick, Hoffner, Hunter, Rosen, Twohey, Way and Chairperson Mills ABSENT: None STAFF PRESENT: Management Assistant Delgado, Accounting Manager Martinez, Financial Services Analyst Hallick, Public Works Director/City Engineer McKinney, and Management Analyst Mignogna, and Finance Director Romero. PLEDGE OF ALLEGIANCE Commissioner Rosen 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 MEETING MINUTES DATED FEBRUARY 10, 2021 2. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED DECEMBER 31, 2020 FINANCIAL ADVISORY COMMISSION MINUTES 2 FEBRUARY 24, 2021 SPECIAL MEETING 3. RECEIVE AND FILE SECOND QUARTER 2020/21 TREASURY REPORTS FOR OCTOBER, NOVEMBER, DECEMBER 2020 4. RECEIVE AND FILE FEDERAL AWARDS REPORTS IN ACCORDANCE WITH THE UNIFORM GUIDANCE FOR YEAR ENDED JUNE 30, 2020 Staff provided the Commission with an overview of the federally-funded projects listed on page 6 of the Federal Awards Reports, included as Attachment 1 to the staff report for Consent Calendar Item No. 4 in the agenda packet. Motion A motion was made and seconded by Commissioners Twohey/Hoffner to approve the Consent Calendar, as submitted. Motion passed unanimously. BUSINESS SESSION 1. APPOINT TWO FINANCIAL ADVISORY COMMISSIONERS TO FORM A 10-YEAR FINANCIAL PROJECTIONS TASK FORCE Finance Director Romero presented the staff report, which is on file in the Finance Department. Commissioners Batavick and Way expressed their willingness to serve on the 10-year financial projections task force. Motion A motion was made and seconded by Commissioners Hunter/Twohey to appoint Commissioners Batavick and Way to serve on the 10-year financial projections task force. Motion passed unanimously. 2. APPOINT TWO FINANCIAL ADVISORY COMMISSIONERS TO FORM A LONG-RANGE STRATEGIC PLANNING TASK FORCE Commissioner Mills presented the staff report, which is on file in the Finance Department. Commissioners Hoffner, Mills, and Rosen expressed their willingness to serve on the long-range strategic planning task force. Motion A motion was made and seconded by Commissioners Way/Rosen to appoint Commissioners Hoffner, Mills, and Rosen to serve on the long-range strategic planning task force. Motion passed unanimously. 3. RECEIVE AND FILE THE 2020/21 MID-YEAR BUDGET REPORT Financial Services Analyst Hallick and Accounting Manager Martinez presented the staff report, which is on file in the Finance Department. The Commission and staff discussed General fund expenses and revenue adjustments; grant funding on additional expenditures; Facility and Fleet vehicle FINANCIAL ADVISORY COMMISSION MINUTES 3 FEBRUARY 24, 2021 SPECIAL MEETING funding adjustments and process for vehicle purchases; expenses in So. Coast Air Quality restricted fund for electric vehicle (EV) charging stations, the quantity located in La Quinta and their locations. Staff said EV charging stations for the City are required by the state and would provide the Commission with state regulations in regards to EV charging stations. The Commission recommended that the Planning Commission form a strategy to evaluate for future expenses and needs for EV charging stations. Discussion followed regarding reserve balances and unassigned fund balance. Motion A motion was made and seconded by Commissioners Way/Hoffner to receive and file the 2020/21 mid-year budget report. Motion passed unanimously. STUDY SESSION 1. DISCUSS PROJECTS TO BE INCLUDED IN FISCAL YEARS 2021/22 THROUGH 2025/26 CAPITAL IMPROVEMENT PROGRAM (CIP) BUDGET Management Analyst Mignogna and Public Works Director/City Engineer McKinney presented the staff report, which is on file in the Finance Department. Discussion followed on funding and study plan for the Village Art Plaza project. Commissioner Hoffner provided a summary of the review process and findings, review conclusions, and recommendations found on the FAC Commissioner CIP Budget Committee Report, included as Attachment 1 to the staff report. He also mentioned that the subcommittee for the CIP budget recommended that the proposed budget of $44.3 million for fiscal years 2021/22 through 2025/26 be presented to Council for consideration. Commissioner Batavick mentioned best practices to review the 5-years versus the 1-year and shared his experience on the subcommittee and review process. Staff mentioned that the initial review for the CIP projects start at the annual community workshop for the City and shared further review process of project priorities and funding. The Commission expressed consensus for the CIP budget subcommittee recommendations. Finance Director Romero said a copy of the subcommittee s report would be incorporated in a presentation to Council next week along with the Commissions comments from this meeting. 2. DISCUSS PRELIMINARY GENERAL FUND REVENUE PROJECTIONS FOR THE FISCAL YEAR 2021/22 BUDGET Finance Director Romero presented the staff report, which is on file in the Finance Department. The Commission and staff discussed strategy and planning process for reviewing revenues and expenditures. FINANCIAL ADVISORY COMMISSION MINUTES 4 FEBRUARY 24, 2021 SPECIAL MEETING 3. FINANCIAL ADVISORY COMMISSION SUBCOMMITTEE (Subcommittee) RECOMMENDATIONS Finance Director Romero and Financial Services Analyst Hallick presented the staff report, which is on file in the Finance Department. Commissioner Twohey and Way shared their experience of serving on the scope of work and findings; and thanked staff obligations. The Commission and staff discussed unfunded liability payments to California Public Employees Retirement System Agency (CalPERS); funded ratio for pension tiers; current and alternative amortization schedules; and the Subcomm recommendations included in the staff report. The following was also noted as recommendations by the Commission: Presenting an analysis and the value between return on investments and additional payments sent to CalPERS Including the potential of increasing trust fund to match current liability for the next reserve study The Commission also expressed that they liked the flexibility of choosing when and if additional payments should be made to CalPERS. Staff said the report would be updated with current discussion recommendations and brought forth for review by the Subcommittee before being presented in a study session to Council. 4. DISCUSS LIBRARY DEVELOPMENT IMPACT FEE (DIF) FUND LOAN AND REPAYMENT CALCULATIONS Finance Director Romero presented the staff report, which is on file in the Finance Department. The Commission and staff discussed terms to the outstanding library DIF loan due to the Successor Agency, implementation of interest, and process for recognizing quarterly payments and interest. Commissioner Hoffner said that further review is to be done by the DIF fund loan Subcommittee and that the next meeting is scheduled for tomorrow, Thursday, February 25th. FINANCIAL ADVISORY COMMISSION MINUTES 5 FEBRUARY 24, 2021 SPECIAL MEETING DEPARTMENTAL REPORTS 1. THIRD QUARTER 2020 (JULY-SEPTEMBER) SALES TAX UPDATE FOR THE CITY OF LA QUINTA Financial Services Analyst Hallick presented the staff report, which is on file in the Finance Department. The Commission commended Financial Services Analyst Hallick for a great summary update. Commissioner Mills asked Finance Director Romero to provide an update on the economic impacts workshop she had attended earlier today. Finance Director Romero thanked Commissioner Way for also attending, said it was informative, noted how the City is well ahead with some of the processes already, and said staff would provide the Commission with the link to the workshop as there are other great recommendations suggested for consideration. ADJOURNMENT There being no further business, it was moved and seconded by Commissioners Rosen/Hoffner to adjourn this meeting at 6:48 p.m. Motion passed unanimously. Respectfully submitted, Jessica Delgado, Management Assistant City of La Quinta, California