HomeMy WebLinkAbout4 - Finance Committee Purpose & ResponsibilitiesCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No.
April 10, 2007
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: City Manager's Office
Homer Bludau, City Manager
949/644 -3000 or hbludau @city.newport - beach.ca.us
Administrative Services Department
Dennis C. Danner, Administrative Services Director (949) 644 -3123
ddanner@city.newport-beach.ca.us
SUBJECT: City Council Finance Committee Purpose & Responsibilities
ISSUE:
Should the purpose and responsibilities of the City Council Finance Committee be
revised as per the attached Resolution?
RECOMMENDATION:
Adopt Resolution No. 2007 - _ to modify the purpose and responsibilities of the City
Council Finance Committee.
DISCUSSION:
The City Council established a Finance Committee by Resolution on December 12,
1994. Membership on the Committee consisted of the Mayor and two Council Members.
The term of the Committee was indefinite, pending City Council action. The duties of the
Committee varied, but it was primarily responsible to review and monitor events and
issues, which may have had a financial impact on the City. In addition, the City's
Investment Advisors reviewed the City's investments with the Committee on a quarterly
basis. The Committee was disbanded by Resolution No. 98 -32, which was adopted on
May 11, 1998.
At the Council Meeting of November 28, 2000, Council Member Gary Adams asked that
an item be placed on the City Council Agenda for December 12, 2000, to discuss and
reestablish the Finance Committee. The Finance Committee was reestablished on
December 12, 2000 by Resolution 2000 -103. At that time the Committee membership
consisted of the Mayor and two Council Members. Duties of the Committee were
established to include:
Finance Committee Responsibilities
April 10, 2007
Page 2
(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 the
financial and budgetary policies;
(c) Recommend actions to the City Council to further the aims of the Finance
Committee's policies;
(d) Review the activities of staff regarding the preparation of the City's budget
and other fiscal matters consistent with City Council policy;
(e) Review the activities of staff as outlined in the City Council Income
Property Policy; periodically review and inventory all City -owned income
property; and make recommendations to the full City Council related to the
management of income property; and
(f) Review the activities of staff pursuant to personnel and labor related
issues and make recommendations to the City Council related to these
issues.
On March 26, 2007, the Finance Committee met and recommended that the duties and
responsibilities of the Committee be revised as reflected in the attached Resolution. The
Committee further recommended that the Committee members include any three
Council Members and not necessarily the Mayor.
Submitted by :
Homer L. Blud u, City Manager
Attachment: Resolution No. 2007 -
Dennis C. Danner, Administrative Services
Director
RESOLUTION NO. 2007 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH ESTABLISHING 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 the Finance Committee is hereby established as follows:
1. The membership shall consist of three Council Members, one of whom shall be
appointed chairperson. Appointment shall be made by the Mayor and confirmed
by the full City Council.
2. Meetings shall be called by the Chairperson as needed.
3. Staff support shall be provided primarily by the City Manager and the
Administrative Services Director and by other staff as necessary.
4. The duties of the Committee shall be as follows:
(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 the
financial and budgetary policies;
(c) Review the activities of staff regarding the preparation of the City's budget
and other fiscal matters consistent with City Council policy;
(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 intergovernmental 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;
(f) After approval by the City Council, identify, review and annually
recommend to Council the most advantageous methods to fund the City
Council's approved Facilities Financing Plan;
(g) Identify, review and annually recommend to Council the most
advantageous methods to fund the City's long term compensation and
benefit program liabilities; and
(h) Review and recommend to Council policies related to the setting of
funding goals for major discretionary reserves, and review on -going
progress related thereto.
5. The term of this committee.shall be indefinite pending City Council action.
ADOPTED this 10th day of April, 2007.
ATTEST:
CITY CLERK
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.
Amended by resolution No. XXXXX adopted on April XX,
2007
MEMBERSHIP: ThregNlayei� aftd twe (-32) 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-the financial and budgetary policies
and processes;
CD. Review the activities of staff regarding the
preparation of the City's budget and other fiscal
matters consistent with City Council policy;
OWN 1011
related to the mana—gement of income
prepe yRecommend for Council approval, 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 fundfinaiwe the City's major
capital needs and—fund 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. and