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Home My WebLink About09-09-13 Fiscal Affairs CommitteeCHUCK ENGELKEN, CHAIR .0 JAY MARTIN Councilmember District 2 Councilmember District 5 Alternate Member 2 DARYLLEONARD Councilmember District 3 TOMMY MOSER Councilmember District 4 CITY OF LA PORTE FISCAL AFFAIRS COMMITTEE MEETING AGENDA Notice is hereby given of a meeting of the City of La Porte Fiscal Affairs Committee to be held on Monday, September 9, 2013, at 5:00 p.m., in the La Porte City Hall Council Chambers, 604 West Fairmont Parkway, La Porte, Texas, regarding the items of business according to the agenda listed below: 1. Call to Order 2. Consider approval of minutes of the July 22, 2013, meeting of the Fiscal Affairs Committee — P. Fogarty 3. Review and discuss a proposed Resolution of the City of La Porte approving General Fund commitments of Fund Balance for Fiscal Year 2012-2013 — M. Dolby 4. Set date for next meeting — M. Dolby 5. Administrative Reports — C. Alexander 6. Committee comments regarding matters appearing on agenda — Committee members Engelken, Leonard, Moser, and Martin. 7. Adjourn In compliance with the Americans with Disabilities Act, the City of La Porte will provide for reasonable accommodations for persons attending public meetings. To better serve attendees, request should be received 24 hours prior to the meetings. Please contact Patrice Fogarty, City Secretary, at 281.470.5019. CERTIFICATION I certify that a copy of the September 9, 2013 agenda of items to be considered by the Fiscal Affairs Committee was posted on the City Hall bulletin board on September 3, 2013. Patrice Fogarty, City Secretary I certify that the attached notice and agenda of items was removed by me from the City Hall bulletin board on the day of 12013. Name and Title Page 1 of 1 September 9, 2013, Fiscal Affairs Committee Agenda CHUCK ENGELKEN, CHAIR Councilmember District 2 Committee Member DARYL LEONARD Councilmember District 3 Committee Member TOMMY MOSER Councilmember District 4 Committee Member JAY MARTIN Councilmember District 5 Alternate Member 1 VACANT Alternate Member 2 MINUTES OF MEETING OF FISCAL AFFAIRS COMMITTEE JULY 22) 2013 The Fiscal Affairs Committee met on July 22, 2013, at 5:00 p.m. in the La Porte City Hall Council Chambers, 604 West Fairmont Parkway, La Porte, Texas, to consider the following items of business: 1. Call to Order Chairman Chuck Engelken called the meeting to order at 5:00 p.m. Committee Members Tommy Moser, Daryl Leonard and Jay Martin were present. Also present were City Secretary Patrice Fogarty, City Manager Corby Alexander, Assistant City Manager Traci Leach, Finance Director Michael Dolby, Controller Phyllis Rinehart and Treasurer Shelley Wolny. 2. Consider approval of Minutes of the May 13, 2013, meeting of the Fiscal Affairs Committee — P. Fogarty Committee member Daryl Leonard moved to approve the minutes of the May 13, 2013, meeting. Committee member Tommy Moser seconded. MOTION PASSED. Ayes: Chairman Engelken, Committee Members Moser, Leonard and Martin Nays: None Absent: None 3. Receive and review Third Quarter (FY 2013) Investment Report — M. Dolby Treasurer Shelley Wolny presented an overview of the Third Quarter (FY2013) Investment Report. Committee member Martin questioned who determines the benchmark. Treasurer Shelly Wolny responded staff determines the benchmark based on the six-month Treasury bill. 4. Receive and review months of April (FY 2013) and May (FY 2013) Purchasing Card Expenditures — M. Dolby Finance Director Michael Dolby provided an overview of the April (FY 2013) and May (FY 2013) Purchasing Card Expenditures. Chairman Engelken commented it appear 30 percent of the purchases are in the corporate limits of La Porte. Finance Director Michael Dolby informed employees are encouraged to shop La Porte. Committee member Moser questioned an expenditure to Dixie Flags. City Manager Corby Alexander advised he will confirm the expenditure and advise the committee. Pagel of 2 July 22, 2013, Fiscal Affairs Committee Minutes 5. Receive and approve the Audit Engagement Letters for the fiscal year ending September 30, 2013 — M. Dolby Tom Pedersen with Whitley Penn provided an overview of the Audit Engagement Letters for the fiscal year ending September 30, 2013. Mr. Pedersen advised the committee if the expenditure of federal funds is in excess of $500,000.00, Whitley Penn will come back to the committee with modification to the engagement letters with the appropriate language in the documents. The committee directed Finance Director Michael Dolby to focus the particular audit on the Parks and Recreation Department. Chairman Engelken asked what type of audit should be performed to assure accurate collection of sales taxes. Finance Director Michael Dolby informed consultants review city receipts on a monthly basis; staff receives a Stars Report with city sales taxes; every six weeks a report is received from the Comptroller's Office with new permits; and staff reviews the addresses to confirm they are in the city limits. Committee member Tommy Moser moved to approve the Audit Engagement Letters for the fiscal year ending September 30, 2013. Committee member Daryl Leonard seconded. MOTION PASSED. Ayes: Chairman Engelken, Committee Members Moser, Leonard and Martin Nays: None Absent: None 6. Set date for next meeting — M. Dolby The Committee set October 28, 2013, at 5:00 p.m., as the date and time for the next meeting. 7. Administrative Reports — C. Alexander City Manager Corby Alexander reported budget meetings are tentatively scheduled for the week of August 12, 2013. 8. Committee Comments — Matters appearing on agenda; Recognition of community members, city employees, and upcoming events; Inquiry of staff regarding specific factual information or existing policy. Committee member Tommy Moser questioned an expenditure to Monte Carlo Hotel and Casino. Finance Director Michael Dolby advised he will confirm the expenditure and advise the committee. 9. Adjourn There being no further business, Committee Member Daryl Leonard moved to adjourn the meeting at 5:24 p.m. Committee member Tommy Moser seconded. Respectfully submitted, Patrice Fogarty, City Secretary Passed and approved on the day of 12013. Chairman Chuck Engelken Page 2 of 2 July 22, 2013, Fiscal Affairs Committee Minutes REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: September 23, 2013 Requested By: Michael G. Dolby, Director of Finance Department: FINANCE Report: Resolution: XXX Ordinance: Exhibits: Exhibits: GASB 54 has a requirement that must be completed prior to the end of the fiscal year to commit fund balance of the General Fund. The General Fund fund balance can only be committed for a specific purpose by formal action of the City council. Committed fund balance does not lapse at year-end.. The formal action required to commit fund balance shall be by resolution. A recommendation has been made to commit $1,500,000 for Health insurance and $2,000,000 for Utility capital projects. Action Required by Council: Approved for City Council Agenda Corby Alexander, City Manager Date RESOLUTION NO. 2013- A RESOLUTION OF THE CITY OF LA PORTE, TEXAS, APPROVING GENERAL FUND COMMITMENTS OF FUND BALANCE FOR FISCAL YEAR 2012-2013; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND SETTING AN EFFECTIVE DATE THEREOF. WHEREAS, the Governmental Accounting Standards Board (GASB) has issued its Statement No. 54, Fund Balance Reporting and Governmental Fund type definitions with the intent of improving financial reporting by providing fund balance categories that will be more easily understood; and WHEREAS, the City Council may adopt a resolution to commit General Fund fund balance for specific purposes by taking formal action and those committed amounts cannot be used for any other purpose unless the City Council removes or changes the specific use through the same formal action taken to establish the commitment; and WHEREAS, the City Manager has recommended to the City Council that the following commitment of the General Fund fund balance be established and approved as follows: Health Insurance $1,500,000.00 Utility Fund Capital Projects $2,000,000.00 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, THAT: SECTION 1. The findings and recitations set out in the preamble to this Resolution are found to be true and correct and that they are hereby adopted by the City Council of the City of La Porte and made a part hereof for all purposes. SECTION 2. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour place and subject of this meeting of the City Council was posted at a place convenient to the public at City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this Resolution and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. INTRODUCED, READ and PASSED by the affirmative vote of a majority of the City Council of the City of La Porte, Texas, on this the 23rd day of September 2013. Louis R. Rigby Mayor Patrice Fogarty City Secretary Clark T. Askins, Assistant City Attorney