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HomeMy WebLinkAboutMIN 01.22.2013 CC-WThe City Council of the City of Georgetown, Texas, met in Regular Session on the above date with Mayor George Garver presiding. Council Present: Council Absent: Patty Eason, Danny Meigs, Bill Sattler, Rachael Jonrowe, Troy Hellmann, Jerry Hammerlun, Tommy Gonzalez Staff Present: Paul E. Brandenburg, City Manager; Jessica Brettle, City Secretary; Bridget Chapman, Acting City Attorney; Micki Rundell, Chief Financial Officer; Jim Briggs, General Manager for Utilities; Keith Hutchinson, Pubic Communications Director; Susan Morgan, Finance Director; Laurie Brewer, Assistant City Manager Minutes A Annual review of the City's investment policy and proposed changes -- Susan Morgan, Finance Director and Micki Rundell, Chief Financial Officer With a Powerpoint Presentation, Morgan reviewed the city's investment policy as well as the market outlook. She said the investment policy is required by the Public Funds Investment Act. She said the Act sets up some minimal standards for the city to follow and requests the city designate the investment officers and have the trained. She said the Council must review the policy and adopt it every two years under the law. She said some of the other PFIA requirements are to talk about the type of securities to be allowed under the policy. She said the City's policy is more restrictive than state law. She noted they require more regular reporting of investments. She said there is another reporting requirement in the financial reporting and said GASB 31 establishes standards for all investments held by governmental entities. She said, at the end of the fiscal year, the city has to report the unrealized gains and losses. She spoke about the investment policy and how the objectives are put into priority order. She said safety is first, liquidity is next, followed by public trust and yield. She listed the authorized investments within the policy. She noted staff is asking to add a tool to invest in municipal securities. She said there are two things the City does for policy compliance and she described those for the Council. She noted the policy is certified by Government Treasures of Texas, who has a best practices model policy. Morgan reviewed the proposed changes to the policy. She said they would like to add municipal securities for Texas entities, clarify and enhance collateralization requirements, clarify FIRREA requirements in the collateralization section and minor editing changes. She noted the municipal securities section would allow the city to invest in entities like itself. She said there are not a lot of those type of opportunities but it would give the City a little extra help. Sattler asked and Morgan said the City can not invest in its own bonds. Rundell responded and said they look at that as a bit of a fraudulent issue. Gonzalez said and Rundell agreed it would be better to pay down our own debt under those circumstances. There was much discussion about this. Gonzalez asked and Morgan said there are some intermediate bonds. She said the staff can invest bonds until the City is expected to meet cash flow needs. Gonzalez said he thinks the City should not be investing in any other municipalities that do not have an equal bond rating. Jonrowe said she would not agree with that and noted there could be other cities that are City Council Meeting Minutes/ Page 1 of 3 Pages moving from A to AA and are still good investments. Morgan said it is really whatever Council is comfortable with and noted State law allows the City to invest up to an A. Meigs said he does not have a problem with A rated or better because that is what the State allows. Eason agreed. Morgan reviewed the investment strategy for the future. She said the policy states the City should use bond reimbursement resolutions to manage debt issues and arbitrage rebate liability issues. Susan Anderson, of Valley View Consulting, provide Council with a market update. She referred Council to the market outlook provided to the Council. She said the graph shows how the interest rates have dropped since the 2007/2008 year. She said they have been flat -lining since that time. She said the employment recovery is happening, but it is slow. She noted housing appears to be gaining traction. She said recent numbers showed increase of home sales. She spoke of consumers and how they are key but they are concerned because they were not spending as much as expected during the holidays. Mayor asked and Anderson said the nation considers 5-6% unemployment as "full employment." She noted the State could be considered "fully employed" but the nation's unemployment rate is around 7%. There were many questions about the current market. Morgan said all of he proposed changes are on the consent agenda for approval tonight. B Presentation and discussion on statewide cable franchise, PEG (public, education, government) channels, and the GTV and Video Programming Plan -- Paul E. Brandenburg, City Manager and Keith Hutchinson, Public Communications Director Brandenburg reviewed the item and said there is always questions about the current citywide cable provider. He reviewed the history of the current cable provider. He noted, in February, the cable franchise goes under state law. He said the purpose today is to the differences in the State law and what the city can do with that. He said the would like to delve into the state franchise and what that means. He said another issue is to find ways to do more with channel 10 and the PEG (Public Education Government) Channel fee. He described some of the opportunities the City has with this new law. He said there is another item on the agenda under Legislative Agenda on this issue. With a Powerpoint Presentation, Hutchinson gave Council a view of what he would like to discuss. He spoke about some of the other cities on the state cable franchise and what they have been doing with television and social media use the PEG fee. He showed Council a video of the College Station channel and College Station Express. Hutchinson showed Council a video of what McKinney is doing with their channel as well. Hutchinson spoke about some of the changes Council will see regarding the state cable franchise. He said, in February, the City will be going to the state cable franchise. He noted this means the cable franchise is no longer authorized by the City of Georgetown. He noted all franchises will be authorized by the Public Utilities Commission. He said it was passed by the Legislature in 2006 and it said the City will stay under the local franchise until it expires. He said they anticipate their 5% franchise fee to be larger. He said that revenue goes into the general fund. He said the new thing that is different is a designated 1 percent PEG fee. He noted this law will also allow up to three PEG Channels. He said some of the options for additional channels would be a GTV Channel 10, a GISD Channel or a GTV simulcast on an HD channel. He said the 1 % PEG fee revenue can be up to $140,000 per year to the City. He listed how the extra 1 % could be used. Sattler asked and Hutchinson said he is not sure if the City can opt out of the 1 % fee. Rundell said there is a way to not accept it. She noted the City would accept it and then return it. Hutchinson provided Council with some examples of cities getting a PEG fee and what they used the revenue for. He said he is also proposing a media specialist, who is someone who has training in video production who will create video news stories and informational spots for websites, social media sites and the public access channel. He provided Council with a proposed timeline and state the state franchise fee would go into effect in February 2013. He said this would give the City enough time to develop a budget and get someone on board by the beginning of next year. Gonzalez asked and Hutchinson said video support was in the department's budget. Gonzalez said this PEG seems like another way to tax the constituents through the cable bill. Brandenburg spoke about the possibility of sending this to GGAF for further study and consideration. Sattler asked and Hutchinson spoke about the Media Specialist and how the City does not currently have that position. Brandenburg said the City is currently getting the five percent and added, with the additional revenue from the PEG fee, the City could add that position. Meigs asked and Chapman said, in order to not receive the fee, the City would have to opt out. Chapman spoke about the fee and noted the City gets the 5% as well as the additional 1 %. She noted the action item on the agenda is to approve the plan going forward and then the appropriation of the specific money will be done as part of the budgeting process. Hammerlun asked about the relationship with the school district if they would want their own channel. Hutchinson said the school district pays us for what the city currently does for them. Hammerlun said he is still confused about the need for definitive action tonight. Brandenburg said the tax payers will get a 1 % increase on their cable bill and the City needs to have a plan for where that will be going. Gonzalez had questions regarding whether or not the City is required City Council Meeting Minutes/ Page 2 of 3 Pages to use the 1 % PEG fee. Brandenburg said the City has in the past been hesitant to use funds for these types of issues and noted this I% would be a great way to put it toward local programming. Jonrowe agreed and said she likes the idea of media paying for media. Jonrowe said she likes the idea of giving people the opportunity to put content online. There was much discussion. Recessed to Executive Session under Sections 551.071, 551.072, 551.074, 551.086 -- 4:07PM Returned to Open Session and adjourned -- 6:25PM Appro d : Mayor Geofbe Garver City Council Meeting Minutes/ Page 3 of 3 Pages Adjournment The meeting was adjourned at 06:25 PM.