HomeMy WebLinkAboutFC_2012-04-25_MinutesCity of Atascadero
Finance Committee
NOTES
Wednesday, April 25, 2012
2:00 p.m.
City Hall
Conference Room 4
6907 El Camino Real, Atascadero, California
CALL TO ORDER:
Council Member Fonzi called the meeting to order at 2:02 p.m.
Members Present: Council Members Roberta Fonzi and Bob Kelley, City Treasurer
Joe Modica, Administrative Services Director Rachelle Rickard
Absent: City Manager Wade McKinney (jury duty)
Staff Present: Assistant to the City Manager / City Clerk Marcia Torgerson,
Deputy City Clerk Victoria Randall
PUBLIC COMMENT: None
BUSINESS:
1. Review of Audit Findings
Director Rickard discussed the two audit findings:
(1) vacation accrual policy does not match the City’s practice. This is
not a liability issue, but the auditor felt it should be consistent.
(2) stale dated checks – The City has some old checks on the books
that require research to determine if the City still owes the
payees any payments. The total amount is approximately
$20,000, going back to 1992, with most of the checks within the
small dollar range. Director Rickard will bring a list of the
checks back to the committee once that is developed.
Committee suggested that the stale dated checks be moved to
a liability account while research is conducted. Director Rickard
will discuss possible solutions with the City Attorney.
Director Rickard stated that each of the Council Members will receive a letter with
the two findings and their recommendations.
2. Review of Financial Status
Director Rickard distributed copies of the General Fund Summary for 2011-2012,
and answered questions from the Committee. The report reflected the period
from July 1, 2011 through February 29, 2012. She stated that the figures are on
track for the most part. The Committee discussed road damage costs from the
garbage trucks.
Director Rickard discussed some of the factors impacting revenues, including the
following:
(1) Carlton is now paying TOT and the back amount (plus)
(2) Rec fees are doing well (plus)
(3) Zoo fees have increased -- construction affected last year’s fees (plus)
(4) Pavilion bookings are down, and demand has decreased (minus)
Mayor Kelley asked that the City look into having three police officers on patrol at
a time as a safety issue. Director Rickard stated that the Committee would need
to decide how and where to get the funding.
3. Review of Investment Report
Director Rickard distributed copies of the March 2012 investment report and
answered questions from the Committee. She stated that we probably will not
see a revenue increase for three to five years; however, costs continue to
increase.
The Committee discussed the various investment options: Local Agency
Investment Fund (LAIF), Federal National Mortgage Association (FNMA) and the
Federal Home Loan Bank (FHLB). Director Rickard stated that CD investments
are currently at the maximum. Mayor Kelley and Council Member Fonzi said
they preferred investments in LAIF or government securities. Director Rickard
said we typically do not sell unless there is a compelling reason to do so. City
Treasurer Modica and Director Rickard stated they are comfortable with the
investments as they stand. The Committee agreed to make no changes.
Director Rickard reviewed the following next steps:
(1) Will inform City Council of audit findings;
(2) Mayor Kelley and Council Member Fonzi to meet with PD re: staffing needs
(3) Give thought to the use of Enterprise Funds down the road and discuss at a
future meeting;
(4) Develop a back-up plan
Council Member Fonzi adjourned the meeting at 3:30 p.m.
NOTES PREPARED BY:
Victoria Randall, Deputy City Clerk