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Home My WebLink About03 - Finance Committee Charter UpdateQ SEW VOLT a i CqU FO?N`P TO: CITY OF NEWPORT BEACH City Council Staff Report Agenda Item No. 3 April 9, 2013 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Finance Department Dan Matusiewicz, Finance Director 949 - 644 -3126, danm @newportbeachca.gov PREPARED BY: Steve Montano, Deputy Finance Director APPROVED: A TITLE: Finance Committee Charter Update ABSTRACT: The resolution authorizing the purpose and responsibilities of the Finance Committee was last updated by Resolution No. 2007 -21, as adopted April 10, 2007. Proposed revisions to the Finance Committee Charter will incorporate changes as recommended by the Finance Committee on February 28, 2013. RECOMMENDATION: Approve Resolution 2013 -32 to modify the purpose and responsibilities of the City Council Finance Committee. FUNDING REQUIREMENTS: No change in current funding levels is required. DISCUSSION: On February 28, 2013, the Finance Committee met and approved recommendations to expand the Finance Committee's purview to review debt financings to assess the risk associated with debt usage; to conduct audit conferences with auditors in the absence of staff; and to review the timing, means of financing, and fiscal impacts associated with the high - priority projects designated in the Facilities Financing Plan. Finance Committee Charter Update April 09, 2013 Page 2 ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act ( "CEQA ") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). Submitted by: Dan Matusiewicz Finance Director Attachments: A. Revised Finance Committee Charter B. Resolution 2013- FINANCE COMMITTEE AUTHORIZATION: Established by Resolution No. '94 -110 adopted on December 12, 1994. Modified by Resolution No. 96 -100 adopted on December 9, 1996. Disbanded by Resolution No. 98 -32 adopted on May 11, 1998. Re- established by Resolution No. 2000 -103 adopted on December 12, 2000. Duties and membership amended by Resolution No. 2007 -21 adopted on April 10, 2007. Purpose and responsibilities amended by Resolution No.- adopted on April 9, 2013. MEMBERSHIP: Three (3) Council Members; one of whom shall be appointed chairperson. Appointment shall be made by the Mayor and confirmed by the full City Council. Staff support shall be provided primarily by the City Manager and the Finance Director and by other staff as necessary. Meetings shall be called by the Chairperson or Mayor as needed. TERM: Indefinite pending City Council action PURPOSE & RESPONSIBILITIES: A. Review and monitor events and issues which may affect the financial status of the City; B. Make recommendations to the City Council regarding amendments to financial and budgetary policies and processes; C. Review the activities of staff regarding the preparation of the City's budget and other fiscal matters consistent with City Council policy; Section II - Page 1 04 -10 -07 D. Recommend for Council approval, and manage an on -going process for measuring and setting goals designed to maximize the City's revenues consistent with existing taxation structures and inter- governmental funding opportunities, fee generation consistent with market rate charges for city provided services and market rate fees for utilization of City owned assets. Recommend to Council major initiatives to accomplish identified goals; E. Recommend for Council approval, and manage an on -going process for measuring and setting goals designed to minimize the City's cost to provide core services and required activities, consistent with the desired service level for residents and other internal and external customers. Recommend to Council major initiatives to accomplish identified goals; and F. Identify, review and recommend to Council the most advantageous methods to fund the City's major capital needs and the City's long term compensation and benefit program liabilities. Review and recommend to Council policies related to the setting of funding goals for major discretionary reserves, and review on -going progress related thereto. G. Review the structure and documentation of anv proposed debt financing to assess the risk associated with debt usage; H. Conduct audit conference meetin&sl with the auditors to provide independent review and oversight of the City of Newport Beach's financial reporting processes, framework of internal control, and to provide a_ forum in which auditors can candidly discuss concerns in the absence of staff; and 1. Review with staff on an annual basis the timing, mean's of financing, and fiscal impacts associated with funding the high- priority projects designated in the Facilities Financing Plan. Section 11 - Page 1(a) 04 -10 -07 RESOLUTION NO. 2013 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AMENDING THE DUTIES AND RESPONSIBILITIES OF THE FINANCE COMMITTEE WHEREAS, the City Council is the primary guardian of public funds; and WHEREAS, appropriations, expenditures and other budgetary matters are a primary concern of the City Council; and WHEREAS, the City Council has adopted various policies regarding financial matters; and WHEREAS, the City Council has adopted policies regarding income property and annexations which may have an impact on the City's finances; and WHEREAS, the City Council desires to appoint a committee to review all finance matters; NOW, THEREFORE be it resolved by the City Council of the City of Newport Beach that additional duties and responsibilities of the Finance Committee shall include: Review the structure and documentation of any proposed debt financing to assess the risk associated with debt usage; 2. Conduct audit conference meeting(s) with the auditors to provide independent review and oversight of the City of Newport Beach's financial reporting processes, framework of internal control, and to provide a forum in which auditors can candidly discuss concerns in the absence of staff; and 3. Review with staff on an annual basis the timing, means of financing, and fiscal impacts associated with funding the high - priority projects designated in the Facilities Financing Plan. ADOPTED this 9th day of April, 2013. ATTEST: CITY CLERK MAYOR