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HomeMy WebLinkAboutMinutes_GGAF_05.04.2010 L:\Division\finance\Share2\GGAFSub\GGAF Meetings\2010\6.1.10\6.1.10DraftMinutes.doc NOTICE OF MEETING OF THE GENERAL GOVERNMENT AND FINANCE (GGAF) ADVISORY SUBCOMMITTEE OF THE CITY OF GEORGETOWN, TEXAS Notice is hereby given that the General Government and Finance (GGAF) Advisory Subcommittee established by the Georgetown City Council met at 1:30 p.m. on Tuesday, May 4, 2010, in the Georgetown Municipal Complex Williamson Room, located at 300-1 Industrial Blvd, Georgetown, Texas. MINUTES Keith Brainard called the meeting to order at 1:35 p.m. 1. Review minutes from the March 2, 2010 and April 6, 2010 GGAF meetings – Danella Elliott There were no changes to the March 2, 2010 minutes. There were no changes to the April 6, 2010 minutes. 2. Summary regarding “Other Finance Agenda Items and Items of Interest” – Micki Rundell A. Consideration for approval authorizing staff to negotiate and execute a contract for online auctioning services with Rene Bates Auctioneers, Inc. of McKinney, Texas for the sale of the bleachers and scoreboard located at the former Georgetown Independent School District football stadium in San Gabriel Park. No discussion on this item. B. Consideration of an award of the annual bid for janitorial supplies to Gulf Coast Paper Company of Temple, Texas in the estimated amount of $45,847. No discussion on this item. C. Discussion and possible authorization to accept the Staffing for Adequate Fire and Emergency Response grants from FEEAM in the amount of $905,728. Chief Fite explained that The SAFER grant is a program that allows fire departments to hire additional firefighters in order to comply requirements for NFPA and “2In/2Out” rule. This grant will fund 2 full years for 9 firefighters (salaries and benefits). After the 2 years, we are then expected to carry on the Members Present: Keith Brainard, Chair, Patty Eason, Dale Ross Members Absent: None Staff Present: Micki Rundell, Paul Brandenburg, Laurie Brewer, Leticia Zavala, Mike Peters, Marsha Iwers, Terry Jones, Robert Fite, L:\Division\finance\Share2\GGAFSub\GGAF Meetings\2010\6.1.10\6.1.10DraftMinutes.doc employment of the 9 firefighters for at least one additional year. City of Georgetown funding will begin during the latter half of 2012. The committee thanked Chief Fite for bringing this grant in and expressed his appreciation. D. Consideration and possible action for the award of a bid for vehicles to Mac Haik Ford in the amount of $29,544.54 and to Philpott Ford in the amount of $29,784.00. No discussion on this item. E. Review of the City’s Quarterly Financial Report, which includes the Investment Reports for the City of Georgetown, Georgetown Transportation Enhancement Corporation (GTEC) and the Georgetown Economic Development Corporation (GEDCO) for the quarter ended March 31, 2010. No discussion on this item. F. Report regarding the review of WiMax technologies for City use. No discussion on this item. G. Outstanding RFP Process Update Depository: Laurie Brewer stated that it looks like we will have a significant savings, about $15K up to $25K over the next 3 years by changing depositories. She feels it has been a very worthwhile process. The finalists are: JP Morgan Chase, Wells Fargo, and Bank of America. Our current depository, JP Morgan Chase, agreed to “sharpen their pencils” and they did that. The committee will bring their final recommendation to GGAF in June and then to Council. Audit Services: Audit interviews are scheduled for May 12th. The top two finalists will be presented to GGAF. Laurie noted that there was a “fair amount” of interest in our RFP. There were about 30 questions asking for clarification, etc. prior to the closing date. 3. Discussion regarding proposed changes to the City’s Fiscal and Budgetary Policy for 2010/11 – Micki Rundell Micki went over the proposed changes/clarifications to the Fiscal and Budgetary and followed up with discussion from the committee. Pg 225 – Clarification of services and departments included in the General Fund Pg 228 – Revised definition of “Balanced Budget” to include sustainable revenue sources, as approved by City Council. Pg 230 – Defined “Sustainable Revenues” Pg 231 – FOR CONSIDERATION – Reallocation of the 10% paid to the General Fund from the utilities. Revised the current 2% In- Lieu-of Franchise Fee to 4%, thereby reflecting the rate paid by external utilities in Franchise Fees, and lowered the current Return on Investment from 8% to 6%. The total percentage remains unchanged, but by increasing the franchise payment on City utilities to more accurately reflect ROW maintenance costs, additional revenue will be generated for the General Fund. Pg 232 – Clarification regarding offsetting the vacancy factor against actual salary expense savings within the departments. Pg 234 – Addition of Council action regarding revisions to TMRS and related disclosures. Pg 238 – Establishment of a reserve within the Technology ISF for the replacement of major technology systems. Pg 238 – The addition of the General Government and Finance Subcommittee in providing additional oversight to financial operations. Pg 239 – Adding the 3 year term limit for external auditors and the requirement to re-bid these services at least every 3 years. Pg 240 – The addition of “Public Trust” as an objective in the City’s investment policy. L:\Division\finance\Share2\GGAFSub\GGAF Meetings\2010\6.1.10\6.1.10DraftMinutes.doc Pg 243 – FOR CONSIDERATION - Adding the exception to the possible use of Revenue bonds greater than 20 years for utility plant and system expansions with a useful life greater than 30 years. Pg 243 – Clarification on Certificates of Obligation as the funding instrument for self-supporting general debt. Also includes the Electric and Water Services Funds as possible users of self-supporting CO debt for non-system capital assets. Pg 244 – FOR CONSIDERATION – Adding the exception for 20 year average debt for utility system expansions whose useful life is greater than 30 years to be funded with longer term debt. In addition, references to fiscal year 2010/11 have been updated and designated amounts have been left blank. These amounts will be included once they have been determined and will be included in the final document that is adopted with the 2010/11 budget. Timing allows for the Policy to be reviewed again by GGAF if requested. Once recommendations have been reviewed, a PowerPoint presentation will be prepared for City Council. Currently, the Fiscal and Budgetary Policy is scheduled for presentation to Council on June 8. 4. Presentation of issues outlined in the Mid Year Budget Update – Micki Rundell and Paul Brandenburg Micki and Paul presented the Mid Year Update. As of Mid-Year, the financial projection is cautionary. While operating revenues are holding steady, and expenses are at or less then budget, other revenue adjustments will be made that will impact the ending year projected fund balance. These adjustments include recognition of an adjustment to the General Fund balance for revenue that should have been recorded on the balance sheet as an offset to the Wolf Ranch PID receivable in 2009. Other revenue shortfalls relate to lower than anticipated franchise fee revenue from Atmos (due to lower gas costs in the reporting period), reduction in revenue for hydrant testing, and lower interest income. For the General Fund, these shortages will not impact the current year operations, as ending fund balance was budgeted to be $1.1M, and is projected to be $636,046. This decrease in fund balance will impact the 2010/11 budget. Currently, there is an operating shortfall for 2010/11 of $1.2M. Any ending fund balance could be used to offset this variance, in which case, it would not be available to buy down the 2010/11 debt service to be included in the 2011 tax rate. Information contained in the presentation will be presented to City Council at the May 10 Council Meeting. 5. The meeting adjourned at 3:00 p.m.