HomeMy WebLinkAbout10-05-2017 Financial Advisory Committee Meeting MinutesMinutes of the Fairhope Financial Advisory Committee
October 5, 2017
The Fairhope Financial Advisory Committee met Thursday , October 5, 2017 at
4 :00PM at the Ni x Center, 1 Bayou Dr., Fairhope.
Members present: Will Newberry , Tim Rosson , Page Stalcup, and Charles
Zunk.
Election of officers: By unanimous vote Charles Zunk was elected Chairman
and Page Stalcup was elected Vice-Chairman.
"Open Meeting" obligations: Charles Zunk presented a summary overview of
Alabama state requirements for compliance with the Open Meeting laws.
Mission Statement: The F AC reviewed its Mission Statement and the related
City Council Resolution. [See items attached]
Priority list: The F AC reviewed and agreed to an initial priority list for analysis
opportunities , and also agreed with the Mayor Wilson 's suggestion to add
"purchasing procedures" to the list. [See item attached]
FY2018 Budget: The FAC members each received a copy of the proposed
FY2018 Budget; they agreed to make the Budget review the first project to be
accomplished .
Future meetings: The F AC agreed to have a Special Meeting on November 2 ,
2017 4:00 p.m . at the Nix Center to conduct a review of the proposed FY2018
Budget. The F AC also agreed to have its next Regular Meeting on November 9 ,
2017. Unless otherwise stated , all Regular Meetings henceforth will be on the
second Thursday of each month , 4:00 p.m. at the Nix Center.
Public Participation: The Chairman opened the floor for public participation .
Adjournment: After Public Participation the meeting was adjourned.
The mission of the Fairhope Financial Advisory Committee is to investigate
and analyze all aspects of City finances including assets and liabilities ,
income and expenditures , cash flow , financial policies and procedures , and
purchasing policies and procedures ; special emphasis shall be placed on
current and future potential debt , and upon future potential investments in
large assets. Having investigated and analy zed, the Financial Advisory
Committee shall make appropriate recommendations to City Council.
September, 2017
RESOLUTION NO. XXXX-XX
WHEREAS, the City Council has established the Financial Advisory Committee
with the mission to investigate and analyze all aspects of City finance s including
assets and liabilitie s, income and expenditures, cash flow , financial policies and
procedures , and purchasi ng policies and procedures ; and
WHEREAS, the City Counci l has directed the Financial Advisory Committee to
place special emphasis on current and future potential debt, and upon future potential
investments in large assets; and
WHEREAS, havin g investigated and analyzed s uch matters the Financial Advisory
Committee is directed to make appropriate recommendations to City Council; and
NOW THEREFORE BE IT RESOLVED BY THE GOVERNING BODY OF
THE CITY OF FAIRHOPE, that all anticipated or requested expenditures for
capital purchases, matching funds for grants , land purchases , donations , community
development projects , increases in debt, or expenditures not included in the City 's
current fiscal year budget be su bmitted to the Financ ial Advisory Committee for
analysis and recommendation(s) before being submitted to City Council for
consideration; except that, if either the President of City Counci l or an y other two
Members of City Council sha ll determine that s uch anticipated or requested
expenditure is an emergency which cannot be delayed , such requested expenditure
may be submitted directly to City Council for consideration.
Adopted on this XX th day of September, 2017
Karin Wilson , Mayor
Attest:
Lisa A. Hanks , City Clerk
FINANCIAL ADVISORY COMMITTEE
SUGGESTED STARTING POINTS 10/5/2017
Initial priority list for analysis opportunities:
1. FY2018 Annual Budget.
2. Utilities -Rate and usage Analysis.
3. CAPEX -ST/L T identified "maintenance"; unidentified deferred
maintenance ; ex pansion .
4. Impact fees.
Initial priority list for FY2018 Annual Budget (for each business unit):
1. Revenue assumptions and sensitivity analysis .
2. Reconciliation of accounting method changes (i.e., re-classifications ,
consolidations , etc.).
3. Reconciliation of headcount and employee expenses vs . FY2 017
actual , tied to totals.
4. Analysis of impact fee revenue and spending.
5. Analysis of debt repayment assumptions and use of reserve funds.
6. Analysis of capital spending.
7 . Analysis of transfers from the respective utilities to the City 's GF.
8. Analysis of large year-over-year changes in non-employee ex penses.
9. Analysis of deferred liabilities and other balance sheet items .