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HomeMy WebLinkAbout25 - Consideration of Changing the Structure of the Finance Committee - Additional InfoJune 12, 2018 Item No. 25 From: Kiff, Dave Cc: Brown, Leilani; Harp. Aaron; Matusiewicz, Dan; Jacobs, Carol Subject: Finance Committee Workplan summary 2016-2018 Date: Tuesday, June 12, 2018 1:40:35 PM Attachments: 2016-2018 FC Workplans and Status per Scott Peotter Request..pdf Council Members— Because this has a connection to Item #25, 1 think this warrants having you all see it. Council Member Peotter had asked Dan M for this summary. Dave Scheduled Date Agenda Title Agenda Description Status FISCAL YEAR 2015-2016 JULY Tuesday, July 21, 2015 Audit Planning and Communication Receive and file a letter from the City's Independent Auditor communicating Completed the scope and responsibilities associated with the 2014-15 Financial Council Reserve Policy F-2 Review Council Reserve Policy F-2 provides guidance to City Staff regarding target Completed reserve levels that are an integral part of prudent financial planning. Questions/Answers Pertaining to FY16 Adopted Budget Asa follow up to the previous Finance Committee meetings, the Committee Completed is welcome to continue its questions and comments about the FY 2015-16 Adopted Budget. All questions and comments are still relevant even following Council adoption of the FY 2015-16 Budget as the input will help frame both budget adjustments and planning for the FY 2016-17 Budget, Thursday, August 13, 2015 Annual Investment Portfolio Performance Review A Staff and a City investment advisor will provide of brief fixed income Completed market review of the past year and comment on the performance of the Citv's investment Dortfolio Annual Investment Policy Review and Update In furtherance of Section K-2 of Council Policy F-1, Statement of Investment Completed Policy (the Policy), the Finance Department has completed an annual review of the Policy to ensure its consistency with the overall objectives of preservation of principal, liquidity and return, and its relevance to current law and financial and economic trends. Staff is proposing two modifications to the Investment Policy as recommended by the City's investment advisors, Public Financial Management (PFM) and Chandler Asset Management (Chandler), and supported by the City's Finance Director/Treasurer. Recommendations for the Annual Finance Committee Budget During the July 21, 2015, Finance Committee meeting, members discussed Completed Review Process the need for greater transparency and accountability during the annual budget development process. This report provides recommendations and associated action items to improve budget transparency and to increase the Finance Committee's involvement during the annual review of the City's h -1—f Wastewater Service in Newport Beach The City Council has requested a review of the City's Wastewater Operation Completed as part of the City's on-going effort to review operations for effectiveness, efficiency and cost. This report provides the roles and responsibilities of the Diviainn_ City Council Policy F-9 City Vehicle/Equipment Guidelines City Council Policy F-9 establishes the service life of vehicles and equipment Completed and helps determine funding requirements for their replacement. At the request of City Council and due to a number of changes in operations, staff requests the Finance Committee to review and comment on the proposed Quarterly ERP Update Staff will provide the Committee with a progress report on the Enterprise Completed Resource Plan Droiect. Finance Committee Schedule Update The Finance Committee work plan represents the planned topics of Completed discussion; however, is subject to change based on the availability of Committee members, information and the need to schedule other topics as they arise. This item allows Committee consideration of an update to the Wednesday, September 16, 2015 Recommended Budget Practices for the Development of the During the August 13, 2015, Finance Committee meeting, members Completed Annual Budget discussed three recommended actions for bringing greater transparency and accountability during the annual budget development process. Staff will present a proposed framework for improving budget practices. Staff will also present proposed broad community goals that can be incorporated into the PicI Vcor 91)19-91)17 K -1—f Public Employees Retirement System and Other Post- Staff will provide a pension and other post -employment benefits presentation Completed Employment Benefits Primer that will describe the basic mechanics and challenges associated with OCTOBER Thursday, October 15, 2015 Discuss Schedule for Next Finance Committee Meeting of Due to a scheduling conflict, the Finance Committee should discuss an Completed November 12. 2015 alternate meeting date and/or time for the November meeting. \\cnb.lcl\data\Users\FIN\Shared\Admin\Finance Committee\WORKPLAN\2018\2016-2018 FC Workplans and Status per Scott Peotter Request. Scheduled Date Agenda Title Agenda Description Status Retiree Health Liability (OPEB) The City obtains an actuarial valuation for its retiree health program every Completed other year. The purpose of the valuation is to measure the City's liability for retiree health benefits and to determine the City's accounting requirements under the Government Accounting Standards Board (GASB) Statement No. 45. Marilyn Jones, Consulting Actuary, from Nyhart will be present to answer any questions regarding the June 30, 2015, valuation. Implementation of Budget Preparation Framework - Review of During the August 13, 2015, Finance Committee meeting, members Completed Operating Budget, Session 1 discussed pursuing actions for bringing greater transparency and accountability during the annual budget development process. Staff believes that following a proposed budget preparation framework consisting of budget principles, and associated strategies and tactics can be a reliable vehicle for improving the City's budget process. In furtherance of Budget Framework Tactic T.10.1, the goal of this presentation will be to familiarize members of the Finance Committee with the elements of the FY 2015-16 Recreation and Senior Services Department departmental budget, provide opportunity for questions, and to gain clarity in the funding allocations for departmental programs. Staff will schedule similar Finance Committee presentations covering the operating budgets of other departments over the next few I:ISM 4ky 1-3=1:i Thursday, November 12, 2015 Implementation of Budget Preparation Framework - Review of During recent Finance Committee meetings, members discussed pursuing Completed Operating Budget, Session 2 actions for bringing greater transparency and accountability during the annual budget development process. Staff believes that following a proposed budget preparation framework consisting of budget principles, and associated strategies and tactics can be a reliable vehicle for improving the City's budget process. In furtherance of Budget Framework Tactic T.10.1, the goal of this presentation will be to familiarize members of the Finance Committee with the elements of the Fiscal Year 2015-2016 Police Department budget, provide opportunity for questions, and to gain clarity in the funding allocations for departmental programs. Thursday, December 10, 2015 Underground Utility Assessment Deferral Program At its October 13, 2015, meeting the City Council considered an Completed Underground Utility Assessment Deferral Program and referred consideration of potential program ideas to the Finance Committee for recommendation. The general plan would be designed to help resident property owners that may not have sufficient disposable income to pay the undergrounding assessment or utility connection costs. The purpose of this staff report is to analyze potential options for recommendation to the City Implementation of Budget Preparation Framework - Review of During recent Finance Committee meetings, members discussed pursuing Completed Operating Budget, Session 3 actions for bringing greater transparency and accountability during the annual budget development process. Staff believes that following a proposed budget preparation framework consisting of budget principles, and associated strategies and tactics can be a reliable vehicle for improving the City's budget process. In furtherance of Budget Framework Tactic T.10.1, the goal of this presentation will be to familiarize members of the Finance Committee with the elements of the Fiscal Year 2015-2016 Fire Department budget, provide opportunity for questions, and to gain clarity in the funding allocations for departmental programs. Life Safety Services Program Evaluation Staff will discuss the results of a recent review of the City's Fire Department Completed Life Safety Service as part of the on-going effort to review operations for effectiveness, efficiency and cost. This report provides the roles and responsibilities of the Division and summarizes the results of the study. \\cnb.lcl\data\Users\FIN\Shared\Admin\Finance Committee\WORKPLAN\2018\2016-2018 FC Workplans and Status per Scott Peotter Request. Scheduled Date Agenda Title Agenda Description Status City Council Policy F-9 City Vehicle/Equipment Guidelines At the City Council Meeting of October 27, 2015, the City Council reviewed Completed and approved changes to the City Council Policy F-9 — City Vehicle/Equipment Guidelines. These changes will extend the life of the City's fleet, eliminate several types of equipment the City no longer owns and add vehicles to the Equipment Maintenance Fund that were previously not included. The revision to Policy F-9 on October 27, 2015, resulted in an annual savings of approximately $1,039,000 to the City's General and Enterprise Funds. The City Council requested that the Finance Committee review Policy F-9 to determine if additional savings are available. After a thorough review of the policy and the financial resources necessary to maintain the Equipment Replacement Fund, staff is not recommending any JANUARY Thursday, January 14, 2016 Semi -Annual Investment Portfolio Review Staff and/or one or more investment advisors will describe the performance Completed authorized to issue bonds, notes, and other evidences of indebtedness to of the Citv's investment Dortfolio. public entities and private developers in order to promote economic Implementation of Budget Preparation Framework - Review of The goal of this presentation will be to familiarize members of the Finance Completed Operating Budget, Session 4 (Public Works Department) Committee with the elements of the Fiscal Year 2015-2016 Public Works the Shopoff and Picerne Real Estate Joint Venture Investment Group) is Department budget, provide opportunity for questions, and to gain clarity in development of the multifamily rental housing projects collectively known as the fundinn Alonntionc fnr dennrtmentA nrnnrnmc. the Uptown Newport Village. The law requires a public hearing be held to Review of Facilities Financial Planning Tool (FFPT) Staff will present the timing, means of financing, and fiscal impacts Completed and approve or disapprove the issuance of bonds for the project. Any associated with funding high-priority capital projects approved by the City project not approved by the local jurisdiction will not be financed through Council. Work Plan Overview Staff will present and seek approval of the tentative Finance Committee Completed agenda topics scheduled for the calendar year. The work plan represents Quarterly ERP Update Staff will provide the Committee with a progress report on the Enterprise Completed the planned topics of discussion; however, is subject to change based on the availability of information and the need to schedule other topics as they Issuance of Multi -Family Housing Revenue Bonds for the Uptown The California Statewide Communities Development Authority (CSCDA) is Completed Newport Project by the California Statewide Communities authorized to issue bonds, notes, and other evidences of indebtedness to Development Authority to TPG/TSG Venture I Acquisition, LLC public entities and private developers in order to promote economic development, including the provisions and maintenance of multi -family housing. TPG/TSG Venture I Acquisition, LLC (the borrower also known as the Shopoff and Picerne Real Estate Joint Venture Investment Group) is seeking financing from CSCDA for the acquisition, construction and development of the multifamily rental housing projects collectively known as the Uptown Newport Village. The law requires a public hearing be held to allow members of the public and the governing board the ability to comment and approve or disapprove the issuance of bonds for the project. Any project not approved by the local jurisdiction will not be financed through CSCDA. As the Program Participant, the City of Newport Beach will not incur any liability of this CSCDA financing. Year -End Closing Results Staff will present the preliminary year-end closing results for Fiscal Year Completed 2014-2015. Quarterly ERP Update Staff will provide the Committee with a progress report on the Enterprise Completed FEBRUARY Thursday, February 11, 2016 Implementation of Budget Preparation Framework - Review of The goal of this presentation will be to familiarize members of the Finance Completed Operating Budget, Session 5 (Municipal Operations Department) Committee with the elements of the Fiscal Year 2015-2016 Municipal Operations Department budget, provide opportunity for questions, and to gain clarity in the funding allocations for departmental programs. Review of Public Employees Retirement System (PERS) Valuation Staff will summarize the results from our latest actuarial valuation and Completed financial options to manage the current obligation. Discussion will include fresh start options as well as the California Employers' Benefit Trust (CERBT) Fund, which is a Section 115 trust fund dedicated to prefunding Other Post -Employment Benefits (OPEB) for all eligible California public Budget Amendments Staff will report on the budget amendments for the prior quarter. All budget Completed amendments are in compliance with City Council Policy F-3, Budget \\cnb.lcl\data\Users\FIN\Shared\Admin\Finance Committee\WORKPLAN\2018\2016-2018 FC Workplans and Status per Scott Peotter Request. Scheduled Date MARCH Thursday, March 10, 2016 Agenda Title Agenda Description Status Finance Committee Charter Review and Update The resolution authorizing the purpose and responsibilities of the Finance Completed Committee was last updated by Resolution No. 2015-5, as adopted January 13, 2015. Staff reviews this resolution with the Finance Committee on an annual basis and welcomes any discussion or consideration for updating. Any changes to the resolution will require formal City Council approval. Work Plan Overview Staff will present and seek approval of the revised Finance Committee Completed agenda topics scheduled for the calendar year. Proposed changes include additional committee meetings to review the entirety of the proposed FY 17 budget. The work plan represents the planned topics of discussion; however, is subject to change based on the availability of information and Fiscal Year 2014-2015 Audit Results The City's external audit firm, White Nelson Diehl Evans LLP will meet with Completed the Finance Committee to discuss the audit findings for the Fiscal Year ending June 30 2015. The Committee will have an opportunity to discuss any potential areas of concern and the auditors can discuss any changes in accounting standards or disclosures that were relevant for the audit year. Proposed Fiscal Year 2016-2017 Budget Assumptions Staff will provide an overview of the Proposed Fiscal Year 2016-2017 Budget Completed Assumptions. Update on Status of Subcommittee Recommendations An update will be provided regarding the Finance Subcommittee. Completed Quarterly ERP Update Staff will provide the Committee with a progress report on the Enterprise Completed Resource Plan Droiect. Would Like Placed on a Future Agenda for Discussion, Action or EDUCATE AND DEVELOP STRATEGIES TO MANAGE ITS PENSION AND OPEB. Thursday, April 28, 2016 Fiscal Year 2016-2017 Proposed Budget Presentation and CIP First Look The City Manager's Fiscal Year 2016-2017 Proposed Budget will be Completed reviewed with a PowerPoint presentation, with a more detailed look at the proposed Capital Improvement Program (CIP). Budget Documents will also City Council General Fund Surplus Utilization Policy Staff will propose a new City Council policy for the use of surplus funds Completed resulting from unrestricted General Fund annual revenues exceeding total actual expenditures. encumbrances and commitments for that vear. Budget Amendments Staff will report on the budget amendments for the prior quarter. All budget Completed amendments are in compliance with City Council Policy F-3, Budget Adoption and Administration Wednesday, May 4, 2016 Fiscal Year 2016-2017 Budget Discussion Continue review of the City Manager's Fiscal Year 2016-2017 Proposed Completed Subcommittee Recommendations An update will be provided regarding the Finance Subcommittee. Completed Finance Committee Announcements on Matters Which Members A. RECOMMEND THE CITY HIRE AN INDEPENDENT ACTUARY TO ADVISE, Completed Would Like Placed on a Future Agenda for Discussion, Action or EDUCATE AND DEVELOP STRATEGIES TO MANAGE ITS PENSION AND OPEB. Report (Non -Discussion Item) B. RECOMMEND THE CITY CONSULT WITH AN INDEPENDENT THIRD PARTY Completed AGENCY (E.G., ORANGE COUNTY AUDITOR CONTROLLER'S OFFICE, CONSULTANT, GFOA, OR A REGISTERED INDEPENDENT MUNICIPAL ADVISOR) TO EITHER (1) REVIEW THE CITY'S DEBT ISSUANCE PROCEDURES AND PROVIDE RECOMMENDATIONS TO IMPROVE AND INCORPORATE BEST PRACTICES FOR DEBT ISSUANCE AND ADMINISTRATION INTO THE CITY'S POLICIES AND PROCEDURES; (2) EVALUATE THE ECONOMIC FEASIBILITY OF REDUCING AMOUNT OF OUTSTANDING CERTIFICATES OF PARTICIPATION; OR (3) BOTH. Thursday, May 12, 2016 Fiscal Year 2016-2017 Budget Discussion Continue review of the City Manager's Fiscal Year 2016-2017 Proposed Completed Subcommittee Recommendations An update will be provided regarding the Finance Subcommittee. Completed APRIL morw Thursday, June 2, 2016 Auditor Recommendation Per Council Policy F-15, External Financial Reporting, Disclosure and Annual Completed Audits, the City issued a Request for Proposal (RFP) for audit services dated March 21, 2016, to audit its financial statements for the fiscal year ending June 30, 2016, with the option of auditing its financial statements for four subsequent fiscal years. After a thorough selection process, staff recommends to the Finance Committee the services of White, Nelson, Diehl, Subcommittee Recommendations An update will be Drovided reaardino the Finance Subcommittee. \\cnb.lcl\data\Users\FIN\Shared\Admin\Finance Committee\WORKPLAN\2018\2016-2018 FC Workplans and Status per Scott Peotter Request. Scheduled Date Agenda Title Agenda Description Status Finance Committee Fiscal Year 2016-2017 Budget Continue review of the City Manager's Fiscal Year 2016-2017 Proposed Completed Recommendations Budget and prepare/discuss Finance Committee recommendations to Thursday, June 16, 2016 Quarterly ERP Update Staff will provide the Committee with a progress report on the Enterprise Completed Resource Plan Droiect. Debt Issuance Best Practices During the April 28, 2016, Finance Committee meeting Committee Member Completed O'Neill asked the Committee to consider the merits of hiring a third parry consultant to assist staff implement best practices in debt issuance. Pension and OPEB Advisory Services During the April 28, 2016, Finance Committee meeting Committee Member Completed Gorczyca proposed bringing on an independent actuary to assist the Council, the Committee, and staff to analyze various pension and OPEB funding and cost containment strategies. Such strategies may include a Section 115 Benefit Trust, PERS pre -payment options, improvements to the City's OPEB program, and various incentives to reduce the pension liability. Staff recommends that the Committee discuss the merits of engaging an independent actuary or other financial professional to provide Pension and OPEB advisory services and provide staff direction as to an initial scope of services. Finance Subcommittee Recommendations During the April 28, 2016, Finance Committee meeting Subcommittee Completed Members presented written recommendations as to general business practices of the City. The Committee, as a whole, provided general comments on the content and quality of the report. The Committee will discuss of each idea specifically and determine actions items associated ..Rh o�rh ro onrl�kinn Annual Fee Schedule Update In partnership with the City's cost allocation plan consultant, staff reviewed Completed and updated the city-wide cost allocation plan and direct user fee calculations for Recreation and Senior Services (RSS), Library, Finance, and Municipal Operations Department (MOD), as well as analyzed the separation of mileage costs from Fire Emergency Medical Services (EMS) fees and the establishment of flat fees for certain Community Development Department (CDD) services. The purpose of this meeting is to review staffs recommendation to revise the Master Fee Schedule according to CPI and to review the specific changes recommended for departmental related fees. SEPTEMBER Thursday, September 15, 2016 Annual Investment Performance Review Staff and/or one or more investment advisors will describe the performance Completed of the Citv's investment portfolio. Investment Portfolio Recommendation Staff will present a proposal to further segment the investment portfolio to Completed better align assets with related objectives. Investment Advisor Recommendation Staff will summarize the results of our recent investment advisor RFQ and Completed make recommendations for the contracting of investment advisory services. Budget Amendments Staff will report on the budget amendments for the prior quarter. All budget Completed amendments are in compliance with City Council Policy F-3, Budget Adoption and Administration. Implementation of Finance Subcommittee Recommendations During the June 16, 2016 Finance Committee meeting, the Committee Completed reviewed the Subcommittee's 16 recommendations to improve the City's general business practices. The Subcommittee members proposed, and the Committee as a whole assigned, each of the recommendations according to one of the following categories: 1) Incorporate into existing or new City Council policy; 2.) Create new or update General Plan policies; 3.) Action items only, no policy required; and 4.) Comment only - no policy or action required. Staff recommends that the Finance Committee make recommendations(s) to the City Manager as to the next steps related to the report. Committee Discussion of future Pension\OPEB agenda items Provide staff further direction concerning Pension Primer presentation and Completed Pension OPEB management strategy discussions at the October and November Finance Committee meetinas. Quarterly ERP Update Staff will provide the Committee with a progress report on the Enterprise Completed \\cnb.lcl\data\Users\FIN\Shared\Admin\Finance Committee\WORKPLAN\2018\2016-2018 FC Workplans and Status per Scott Peotter Request. Scheduled Date Agenda Title Agenda Description Status OCTOBER investment policy's conformance to the overall objectives of preservation of Thursday, October 13, 2016 Pension and OPEB Primer and Preliminary Staff Pension Funding At this meeting staff will present a status update and primer on the City's Completed Recommendations for Fiscal Year 2017-2018 Pension and OPEB liabilities. A consulting actuary will be present should the Committee have specific questions for an actuary. Based on a review of the most current valuations, staff has prepared preliminary pension funding Pension Update recommendations prior to the input and comment from our consulting h Budget Amendments Receive and file a staff report on the budget amendments for the prior Completed auarter. NOVEMBER implementing the phased -in implementation plan contemplated by the Thursday, November 10, 2016 City CaIPERS Pension Issues John Bartel (Bartel Associates) will discuss CalPERS pension issues, such Completed Review of Facilities Financing Program as, current unfunded liability; projected contribution rates, including impact of investment return volatility; and CalPERS Risk Mitigation Policy and possible discount rate changes. In addition, there will be a review of the City's current funding policy and of alternatives the City might consider. FEBRUARY Thursday, February 16, 2017 Annual Investment Policy, Financial Markets and Investment Staff and/or one or more investment advisors will discuss the City's Completed Portfolio, and Investment Strategies Review investment policy's conformance to the overall objectives of preservation of principal, liquidity and return, and its relevance to current law and financial and economic trends. The Committee will receive a financial markets overview and a performance report of the City's investment portfolio through December 31, 2016. Staff will also recommend changes to the City's ea..,, + �...e ., Pension Update Staff will provide a status update of our CaIPERS Pension plans based on Completed recently announced discount rate changes. Staff will review the impact to our plans and make recommendations how to lessen the long-term cost of implementing the phased -in implementation plan contemplated by the (:aIPFRC h—M Review of Facilities Financing Program Staff will present a draft of Facilities Financing Program reviewing the timing, Completed means of financing, and fiscal impacts associated with funding Council Review of Initial Draft of Long -Term Financial Forecast Staff will present the bare bones of a high-level Long-term Financial Completed Forecast that summarizes future assumptions and key elements of the City's finances culled from other long-term plans such as the Facilities Financing Prnnram_ Pensinn Prniertinns_ Harhnr Master plan_ eta Annual Work Plan Overview Staff will present and seek approval of the tentative Finance Committee Completed agenda topics scheduled for the calendar year. The work plan represents the planned topics of discussion; however, is subject to change based on the availability of information and the need to schedule other topics as they Budget Amendments Receive and file a staff report on the budget amendments for the prior Completed auarter. MARCH Thursday, March 16, 2017 Review of Budget Preparation Framework/Principles The Finance Committee meeting will review and provide comment on the Completed Budget Preparation Framework, last reviewed by the Committee in August of 2015. The Budget Preparation Framework consists of goals/principles, strategies and associated tactics to facilitate the allocation of resources. Annual Review of Reserve Policy F-2 The Finance Committee will review and provide comment on Council Policy Presented but Committed deferred action until Review of Other Financial Policies Staff will present a new pension policy and update to Budget Policy to Subcommittee created to review other policies account for multi-vear funds and the need for Iona ranae fiscal Dlannina. Der Committee Member O'Neill Review of Long Range Fiscal Forecast Staff will report on progress made towards the development of the Long Completed Demonstration of New Fiscal Transparency Software Staff will demonstrate "Socrata," a new software that allows for access and Completed transoarencv to Citv information by the Dublic. Pension Discussion Staff will prepare a presentation illustrating payment options to mitigate the Completed Citv's exDosure to its Iona -term Derision obligation. Thursday, March 30, 2017 HarborfTidelands Master Plan Review Staff will present the timing, means of financing, and fiscal impacts Completed \\cnb.lcl\data\Users\FIN\Shared\Admin\Finance Committee\WORKPLAN\2018\2016-2018 FC Workplans and Status per Scott Peotter Request. Scheduled Date Agenda Title FY 2015-16 Audit Review (with Auditor) Pension Discussion - Discuss Stanford University Report The City's external audit firm, White Nelson Diehl Evans LLP will meet with Completed the Finance Committee to discuss the audit findings for the fiscal year ending 6/30/2016. The committee will have an opportunity to discuss any potential areas of concern and the auditors can discuss any changes in accounting standards or disclosures that were relevant for the audit year. The Committee will review and discuss Stanford University Professor Joe Completed Nation's report: "Newport Beach's Pension Plans: Forecast and Key Metrics" Status \\cnb.lcl\data\Users\FIN\Shared\Admin\Finance Committee\WORKPLAN\2018\2016-2018 FC Workplans and Status per Scott Peotter Request. Review of Finance Committee Work plan Staff will review with the Committee the agenda topics scheduled for the Completed remainder of the calendar vear. APRIL Thursday, April 13, 2017 Pension Discussion including presentation by Senator Moorlach Agenda item reserved for any discussion regarding the status of the City's Completed pension liability. Review of FY 2017-18 Proposed Budget Staff will provide an overview of the Proposed FY 2017-18 Operating Budget Completed and or CIP. Long -Term Fiscal Forecast Review of City's long-term forecast plan model. Completed Budget Amendments Receive and file a staff report on the budget amendments for the prior Completed quarter. Review of Finance Committee Work plan Staff will review with the Committee the agenda topics scheduled for the Completed remainder of the calendar vear. Thursday, April 27, 2017 Review of FY 2017-18 Proposed Budget Staff will provide an overview of the Proposed FY 2017-18 Operating Budget Completed and or CIP. Pension Discussion Agenda item reserved for any discussion regarding the status of the City's Completed pension liability. Update on Long -Term Financial Forecast Staff will review with the Committee an updated high-level long-term financial Completed forecast including future assumptions and other key elements of the City's Review of Finance Committee Work plan finances. Staff will review with the Committee the agenda topics scheduled for the Completed remainder of the calendar vear. MAY Thursday, May 11, 2017 Review of FY 2017-18 Proposed Budget Staff will provide an overview of the Proposed FY 2017-18 Operating Budget Completed and or CIP. Pension Discussion Agenda item reserved for any discussion regarding the status of the City's Completed oension liabilitv. Update on Long -Term Financial Forecast Staff will review with the Committee an updated long-term financial forecast Completed including future assumptions and other key elements of the City's finances Review of Finance Committee Work plan Staff will review with the Committee the agenda topics scheduled for the Completed remainder of the calendar vear. Tuesday, May 23, 2017 Joint Study Session on the Budget with the City Council Completed JUNE Thursday, June 1, 2017 Review of FY 2017-18 Proposed Budget In accordance with Sections 504 and 1101 of the City Charter, the Finance Completed Committee will review the City Manager's proposed budget and give recommendations to the City Manager in advance of the budget's presentation to the City Council. The Committee's recommendations shall be provided in writing to the City Council along with the City Manager's cnf—A h -1—f Pension Discussion Agenda item reserved for any discussion regarding the status of the City's Completed pension liability. Review of Finance Committee Work plan Staff will review with the Committee the agenda topics scheduled for the Completed remainder of the calendar vear. Thursday, June 29, 2017 Wastewater Rate Increase The Municipal Operations Department retained the consulting services of H Completed F & H Consultants, LLC ("HF&H") to prepare a wastewater rate study. The purpose of this presentation is to review the results of the wastewater rate study, receive input, and seek the Committee's direction to move the item to Cihi cniincil fn r d i—i—inna 4nnncnual Update on Long -Term Financial Forecast Staff will review with the Committee an updated high-level long-term financial Completed forecast including future assumptions and other key elements of the City's \\cnb.lcl\data\Users\FIN\Shared\Admin\Finance Committee\WORKPLAN\2018\2016-2018 FC Workplans and Status per Scott Peotter Request. Scheduled Date Agenda Title Agenda Description Status Scope of Work for Risk Based Analysis of General Fund Reserve The City is seeking consultant services to assist staff analyze risks through Completed Requirements an analytical framework intended to determine a custom reserve level and the results of emolovee cost sharina. Engaging CalPERS appropriate for the City of Newport Beach. The Consultant will provide a engage CalPERS staff and policymakers with the intent to influence future thorough examination of the City's primary and secondary risk factors that nension Dolicies and oractices Opposition Letter to CaIPERS Board Imposed Divestment generally influence the amount of reserves the City should hold. The Directives CalPERS Investment Office to promote certain social objectives. Consultant will also provide recommendations on new, or changes to Divestment directives can create enormous opportunity costs to the pension existing, financial policies, risk management methods, and ideas to support Treasury Report The Finance Committee requested that staff provide the monthly Treasury Completed Report for periodic review. As of May 31, 2017, the City's entire investment portfolio totaled over $269 million. The report can be accessed at www_ newnnrtheach ra nnv/trea ci i rv_ Pension Discussion Agenda item reserved for any discussion regarding the status of the City's Completed pension liabilitv. Review of Finance Committee Work plan Staff will review with the Committee the agenda topics scheduled for the Completed SEPTEMBER Thursday, September 14, 2017 Investment Advisor Contract Discussion & Recommendation Staff will review the previous request for proposal process and Completed recommendations. Review of Public Employees Retirement System (PERS) Valuation Staff will discuss the latest actuarial valuation, changes to actuarial Completed assumptions, review investment returns, the potential impact of future rates, and the results of emolovee cost sharina. Engaging CalPERS The Chair will provide a brief oral update on her plans and recent activities to Completed engage CalPERS staff and policymakers with the intent to influence future nension Dolicies and oractices Opposition Letter to CaIPERS Board Imposed Divestment From time to time, the CalPERS Board imposes divestment directives on the Completed Directives CalPERS Investment Office to promote certain social objectives. Divestment directives can create enormous opportunity costs to the pension system at a time when the system, plan sponsors and plan participants Long Range Financial Planning Staff will demonstrate the "Govinvest" software tool that the City is using to Completed assist in the modeling of lona-term pension plan liabilities and cost. Bonita Canyon Community Facilities District Update The City entered into a Joint Powers Agreement (JPA) to form a Community Completed Facilities District (CFD) in 1997 to finance certain road, park and school improvements associated with the Bonita Canyon development. The JPA board believes there is an opportunity to refinance outstanding bonds of the JPA on a current refunding basis to provide an economic benefit to the assessed property owners in excess of $2.5 million. The Committee will be provided a brief report summarizing the financing effort. Budget Amendments Receive and file a staff report on the budget amendments for the prior Completed Review of Finance Committee Workplan Staff will review with the Committee the agenda topics scheduled for the Completed remainder of the calendar vear. OCTOBER I _ Thursday, October 12, 2017 Investment Performance Review Staff and/or one or more investment advisors will describe the performance Completed of the Citv's investment portfolio. Investment Advisor Contract Discussion Committee member Gorczyca requests that the Finance Committee Completed reconsider its recommendation to award investment advisor contract, solely, Budget Amendments Receive and file a staff report on the budget amendments for the prior Completed Debt Policy Staff and a municipal advisor from KNN will present changes to current Debt Completed Policy F-6 that are required per SB1029 and other aspects of the policy the committee wishes to discuss. Long Range Financial Planning Staff will review the performance and provide future projections of the City's Completed Pension Discussion Agenda item reserved for any discussion regarding the status of the City's Completed Review of Finance Committee Workplan Staff will review with the Committee the agenda topics scheduled for the Completed remainder of the calendar vear. NOVEMBER \\cnb.lcl\data\Users\FIN\Shared\Admin\Finance Committee\WORKPLAN\2018\2016-2018 FC Workplans and Status per Scott Peotter Request. Scheduled Date Agenda Title Agenda Description Status Thursday, November 9, 2017 Review of Post Employment Retiree Insurance Actuarial Valuation The City's OPEB actuary will review the City's latest OPEB valuation and Completed (AKA OPEB) liabilitv. Long -Term Financial Forecast The item is reserved for a review and discussion of budget decisions that Completed need to be considered in conjunction with the development of the budget and revision to the Long -Term Financial Forecast. This discussion will include proposed revenue estimate revisions, the funded status of worker's compensation and general liability reserves and other forecast scenarios. Risk Based Reserve Analysis Staff will provide a brief oral update on the status of consulting engagement Completed Review of Finance Committee Workplan Staff will review with the Committee the agenda topics scheduled for the Completed remainder of the calendar vear. JANUARY Tuesday, January 9, 2018 Council Study Session 9th - Economic Overview (Optional) Broad Local Economic Overview to be provided by Beacon Economics. Completed Thursday, January 11, 2018 Risk Based Reserve Analysis Overview Consultant will provide an update and overview of the Risk -based Reserve Consultant Overview of Property and Sales Tax Revenues Consulting specialists in Property and Sales Tax will provide an overview of Completed revenue prospects. Long Range Financial Forecast (LRFF) City staff will provide an update on efforts to improve the City's Long Range Update Delivered Financial Forecast and provide a comparative review of best practices to other cities. Review of Finance Committee Resolution The Committee will review its objectives as set forth in Council resolution 94- Completed 110 as amended by 2017-58. Budget Amendments Receive and file a staff report on the budget amendments for the prior quarter. Pension Discussion Agenda item reserved for any discussion regarding the status of the City's pension liability. Review of Finance Committee Workplan Staff will review with the Committee the agenda topics scheduled for the Completed remainder of the fiscal year and highlight those work plan items that were carried forward from the prior fiscal year. The Committee will also consider setting up a subcommittee to review finance related Council Policies. FEBRUARY Thursday, February 15, 2018 Create a Subcommittee to Review Council Finance Policies The Finance Committee will consider the creation of a Finance Completed Subcommittee to review Council Finance policies, discuss membership, Risk -Based Reserve Subcommittee Update Discuss Finance Committee Drogress since the last meeting. Update Delivered Debt Policy Review Subcommittee Update Subcommittee will discuss revisions of Debt Policy and discuss next steps. In preparation of the 2018-2019 Budget, staff will review budget assumptions Completed Review of Police Department Budget to Actual Results against actual results for Fiscal Year 2016-2017 and pertinent updates Year -End Closing Results Staff will present year-end closing results for Fiscal Year 2016-2017. Completed Agenda item reserved for discussion regarding the status of the City's Completed pension liability, payment strategies, CaIPERS policy updates and or Pension Discussion advocacv efforts. Staff will review with the Committee the agenda topics scheduled for the Completed remainder of the fiscal year and highlight those work plan items carried forward from the prior fiscal year. The Committee will also consider setting Review of Finance Committee Work Plan up a subcommittee to review finance related Council Policies. MARCH Thursday, March 15, 2018 Audit Closing The City's external audit firm, White Nelson Diehl Evans LLP will meet with Completed the Finance Committee to discuss the audit findings for the fiscal year ending 6/30/2017. The committee will have an opportunity to discuss any potential areas of concern and the auditors can discuss any changes in accounting standards or disclosures that were relevant for the audit year. Harbor & Beaches Master Plan Review Harbor & Beaches Master Plan for financial solvency based on Completed known Council Priorities Review of Fire Department Budget to Actual Results In preparation of the 2018-19 Budget, staff will review budget assumptions Completed Facilities Financial Plan Review Facilities Financial Plan for financial solvency based on known Completed \\cnb.lcl\data\Users\FIN\Shared\Admin\Finance Committee\WORKPLAN\2018\2016-2018 FC Workplans and Status per Scott Peotter Request. Scheduled Date Agenda Title Agenda Description Status Agenda item reserved for discussion regarding the status of the City's Completed pension liability, payment strategies, CaIPERS policy updates and or Pension Discussion advocacy efforts. Review of Finance Committee WorkPlan Staff will review with the Committee the agenda topics scheduled for the remainder of the fiscal year and highlight those work plan items carried forward from the prior fiscal year. The Committee will also consider setting up a subcommittee to review finance related Council Policies. APRIL Thursday, April 12, 2018 Fiscal Year 2018-19 Budget Brief Overview Staff will prepare brief presentation of key initiatives proposed in the City Completed Internal Controls Staff will prepare a brief presentation summarizing of internal and external Completed review of internal control efforts. Reserve Policy Subcommittee Update Staff and or Subcommittee members will provide the Finance Committee a Completed brief update on the status of the Risk -Based Reserve Studv. Budget Amendments Receive and file a staff report on the budget amendments for the prior Completed quarter. Workplan Review Staff will review with the Committee the agenda topics scheduled for the Completed \\cnb.lcl\data\Users\FIN\Shared\Admin\Finance Committee\WORKPLAN\2018\2016-2018 FC Workplans and Status per Scott Peotter Request. Scheduled Date Agenda Title Agenda Description Status MAY Thursday, May 10, 2018 Finance Committee Budget Review Staff will provide a high-level variance analysis and will address certain Completed Long -Range Financial Forecast Staff will provide a preview and update on the latest draft of our new Long Completed Range Financial Forecast. Agreed Upon Audit Procedures for Internal Control The Finance Department is working with the City's audit firm, White Nelson Completed Diehl Evans LLP, to develop agreed upon procedures for the audit of the City's internal control processes and procedures. Staff will present these agreed upon procedures for the Finance Committee's review. Assessment District (AD) 117 Update Staff will provide an oral update on the progress of AD 117. Completed Uptown Newport Community Facilities District (CFD) Update Staff will provide an oral update on the progress of the Uptown Newport Continued due to conflicts causing lack of CFD. quorum Risk Based Reserve Status Update Staff will provide an oral update on the Risk Based Reserve Study being Completed Work Plan Review Staff will review with the Committee the agenda topics scheduled for the Completed Tuesday May 22, 2018 Council Budget Study Session (Joint FC Study Session) District discretionary grants, position count changes, pensions operating Completed budget expenditures and other topics will be covered with both the City Thursday, May 24, 2018 FY 2018-19 Budget Review & Recommendation(s) to Council Completed Reserved For Policy Discussion(s) Pending Subcommittee Completion Uptown Newport Community Facilities District (CFD) Update Staff will provide an oral update on the progress of the Uptown Newport Completed CFD. JUNE Thursday, June 14, 2018 Reserve Policy Presentation of Draft Report: GFOA Risk Based Analysis of General Fund Ready Parametric Insurance Teleconference with SwissRE and the GFOA to discuss parametric Ready Master Fee Schedule Staff will present the Master Fee Schedule to the Finance Committee and Ready subsequently will present to the City Council at the July 24, 2018, meeting. Proposed Revisions to Council Policy F-14 -Authority to Contract Staff will propose changes to Policy - F14 pursuant to the specified Ready requirements in the Federal Uniform Guidance for Federal Awards. Changes are required to be approved by the City Council prior to June 30, Discuss Potential Ballot Initiative that May Require a Vote of the On the June 12th City Council agenda, Council members will discuss a Pending Direction Electorate Prior to the Issuance of Certain Certificates of potential ballot initiative that would require a vote of the electorate prior to the Participation (COPS) and Other Lease Revenue Obliaations issuance of certain COPs and other lease revenue obliaations Discuss Potential Reorganization of the Finance Committee On the June 12th City Council agenda, Council members will discuss Pending Direction reorganizing the Finance Committee to be a 7 -member all citizen's committee (versus one with 3 Council Members and 4 citizens), starting July Workplan Review Staff will review with the Committee the agenda topics scheduled for the Ready remainder of the calendar vear. Thursday June 28, 2018 Agreed Upon Audit Procedures for Internal Control The Finance Department is working with the City's audit firm, White Nelson Complete - Presentation Scheduled Diehl Evans LLP, to develop agreed upon procedures for the audit of the City's internal control processes and procedures. The Auditor will present Master Fee Schedule (reserved for continuation if needed) Staff will present the Master Fee Schedule to the Finance Committee and Ready subseauently will Dresent to the Citv Council at subsecuent date. Reserve Policy (tentative based on progress made on June 14) Further discussion and consideration of Draft Report: GFOA Risk Based Ready Water Enterprise Advanced Metering Infrastructure Financing Discussion with Acting Utilities Director to discuss financing plan for Tentative (tentative) advanced metering infrastructure (AMI). AMI s an integrated system of smart meters, communications networks, and data management systems Workplan Review Staff will review with the Committee the agenda topics scheduled for the Ready \\cnb.lcl\data\Users\FIN\Shared\Admin\Finance Committee\WORKPLAN\2018\2016-2018 FC Workplans and Status per Scott Peotter Request.