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HomeMy WebLinkAboutFinance Committee - May 26, 2022CITY OF NEWPORT BEACH FINANCE COMMITTEE AGENDA - Final Friends Room - Newport Beach Central Library 1000 Avocado Avenue, Newport Beach, CA 92660 Thursday, May 26, 2022 - 3:00 PM Finance Committee Members: Will O'Neill, Chair Noah Blom, Mayor Pro Tem Brad Avery, Council Member William Collopy, Committee Member John Reed, Committee Member Nancy Scarbrough, Committee Member Joe Stapleton, Committee Member Staff Members: Grace K. Leung, City Manager Scott Catlett, Finance Director/Treasurer Michael Gomez, Deputy Finance Director Marlene Burns, Administrative Specialist to the Finance Director NOTICE REGARDING PRESENTATIONS REQUIRING USE OF CITY EQUIPMENT Any presentation requiring the use of the City of Newport Beach’s equipment must be submitted to the Finance Director/Treasurer 24 hours prior to the scheduled Finance Committee meeting. NOTICE REGARDING PUBLIC PARTICIPATION Questions and comments may also be submitted in writing for the Finance Committee’s consideration by sending them to Scott Catlett Finance Director/Treasurer, at scatlett@newportbeachca.gov. To give the Finance Committee adequate time to review your questions and comments, please submit your written comments by no later than 5 p.m. the day prior to the Finance Committee meeting. All correspondence will be made part of the record. NOTICE TO THE PUBLIC The Finance Committee meeting is subject to the Ralph M. Brown Act. Among other things, the Brown Act requires that the Finance Committee agenda be posted at least seventy two (72) hours in advance of each regular meeting and that the public be allowed to comment on agenda items before the Committee and items not on the agenda but are within the subject matter jurisdiction of the Finance Committee. The Chair may limit public comments to a reasonable amount of time, generally three (3) minutes per person. It is the intention of the City of Newport Beach to comply with the Americans with Disabilities Act (“ADA”) in all respects. If, as an attendee or a participant at this meeting, you will need special assistance beyond what is normally provided, the City of Newport Beach will attempt to accommodate you in every reasonable manner. If requested, this agenda will be made available in appropriate alternative formats to persons with a disability, as required by Section 202 of the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12132), and the federal rules and regulations adopted in implementation thereof. Please contact the City Clerk’s Office at least forty-eight (48) hours prior to the meeting to inform us of your particular needs and to determine if accommodation is feasible at (949) 644-3127 or scatlett@newportbeachca.gov. 1 May 26, 2022 Page 2 Finance Committee Meeting I.CALL MEETING TO ORDER II.ROLL CALL III.PUBLIC COMMENTS Public comments are invited on agenda and non-agenda items generally considered to be within the subject matter jurisdiction of the Finance Committee. Speakers must limit comments to three (3) minutes. Before speaking, we invite, but do not require, you to state your name for the record. The Finance Committee has the discretion to extend or shorten the speakers’ time limit on agenda or non-agenda items, provided the time limit adjustment is applied equally to all speakers. As a courtesy, please turn cell phones off or set them in the silent mode. IV.CURRENT BUSINESS FINANCIAL STATEMENT AUDITOR'S COMMUNICATION WITH THE FINANCE COMMITTEE ACTING AS THE CITY'S AUDIT COMMITTEE 4A Summary: The City's external auditors, Davis Farr LLP, will provide an overview presentation regarding the audit process and request feedback from the Committee regarding any information that may assist them in their audit of the City's financial statements. Recommended Action: Receive and file. COMMITTEE RECOMMENDATION TO COUNCIL FOR THE FISCAL YEAR 2022-23 BUDGET 4B Summary: Discussion of the Study Session earlier in the week and formulation of any recommendations to be presented to the City Council at the budget public hearing in June. Recommended Action: Receive and file. WORK PLAN REVIEW4C Summary: Staff and Finance Committee to review the proposed work plan and identify matters that members would like placed on a future Agenda for discussion, action, or report. Recommended Action: Receive and file. ATTACHMENT A V.ADJOURNMENT 2 5/20/22 Scheduled Date Agenda Title Report Type Agenda Description Thursday, May 26, 2022 Financial Statement Auditor's Communication with the Finance Committee acting as the City's Audit Committee Presentation The City's external auditors, Davis Farr LLP, will provide an overview presentation regarding the audit process and request feedback from the Committee regarding any information that may assist them in their audit of the City's financial statements. Committee Recommendation to Council for the FY 2022-23 Budget Discussion Discussion of the Study Session earlier in the week and formulation of any recommendations to be presented to the City Council at the budget public hearing in June. Thursday, September 15, 2022 Annual Review of Investment Performance Presentation The City's investment advisor, Chandler Asset Management, will report on the performance of the City's investment portfolio for the fiscal year ending June 30, 2022. Annual Review of Investment Policy Presentation Staff will provide a presentation regarding any changes proposed to the City's Investment Policy by staff or the City's investment advisor prior to the Investment Policy being approved by the City Council. Overview of Police Department Budget Presentation Staff will provide the Committee with a presentation covering the budget for the Police Department. Recommended Changes to Purchasing Policies Presentation Staff will provide on overview of recommended changes to the City's purchasing policies for the Committee's consideration, in follow-up to the Internal Audit Program report presented to the Committee in January. Internal Audit Program Update Presentation Bi-monthly progress update on the internal audit program. Budget Amendments for Quarter Ending June 30, 2022 Receive and File Staff will report on the budget amendments from the prior quarter. Thursday, October 20, 2022 Year-End Budget Results Presentation Staff will provide a presentation regarding the year-end budget results for FY 2021-22. Revenue Audit Program Update Presentation Staff will provide an update on audits conducted by the Revenue Division to verify transient occupancy tax (hotels, agents and residential owners), charter boat company, waste hauler, etc. revenue collections. Budget Amendments for Quarter Ending September 30, 2022 Receive and File Staff will report on the budget amendments from the prior quarter. Committee Recess July 2022 Newport Beach Finance Committee Work Plan June 2022 May 2022 Committee Recess August 2022 September 2022 Committee Recess October 2022 I:\Users\FIN\Shared\Admin\Finance Committee\WORK PLAN\2022\WORK PLAN 2021-22 - 5-20-2022 1 3 5/20/22 Scheduled Date Agenda Title Report Type Agenda Description Newport Beach Finance Committee Work Plan Thursday, November 10, 2022 CalPERS Update Presentation Staff will provide the Committee with an overview of the data from the latest actuarial reports from CalPERS as well as their impact on prior projections of the paydown of the City's unfunded pension liability. First Quarter Budget Update Presentation Staff will provide a presentation regarding the year-to-date and projected FY 2022-23 budget performance. Long Range Financial Forecast (LRFF) Update Presentation Staff will brief the Committee regarding the results of the updated LRFF analysis. Internal Audit Program Update Presentation Bi-monthly progress update on the internal audit program. Thursday, January 12, 2023 Financial Statement Audit Results and Related Communication Presentation The City’s external auditors will meet with the Finance Committee to discuss the results of their audit for the fiscal year ending June 30, 2022. Internal Audit Program Reports Presentation Presentation of reports, findings, and recommendations from the FY 2021-22 audit program. Internal Audit Program Work Plan Review Presentation Selection of audit topics for the FY 2022-23 audit program. Budget Amendments for Quarter Ending December 31, 2022 Receive and File Staff will report on the budget amendments from the prior quarter. Thursday, February 16, 2023 Capital Improvement Program (CIP) Update Presentation Staff from Public Works will provide an update on what is planned for inclusion in the FY 2023-24 CIP. Facilities Financial Plan (FFP) and Harbor & Beaches Master Plan Presentation Staff will provide an update on the current status of FFP and Harbor & Beaches Master Plan funding. Staff will also highlight changes to the development fee funding projection methodology for the FFP. Second Quarter Budget Update Presentation Staff will provide a presentation regarding the year-to-date and projected FY 2022-23 budget performance. February 2023 January 2023 November 2022 December 2022 Committee Recess I:\Users\FIN\Shared\Admin\Finance Committee\WORK PLAN\2022\WORK PLAN 2021-22 - 5-20-2022 2 4 5/20/22 Scheduled Date Agenda Title Report Type Agenda Description Newport Beach Finance Committee Work Plan Thursday, March 16, 2023 Fiscal Year 2022-23 Fee Study Update Presentation Staff will present the Master Fee Schedule to the Finance Committee prior to presenting it to the City Council. Overview of Revenue Projections Presentation Staff will provide the Committee with an overview of the assumptions utilized to prepare revenue projections for the City's major funds as part of the FY 2023-24 budget preparation process. Internal Audit Program Update Presentation Bi-monthly progress update on the internal audit program. Thursday, April 13, 2023 Proposed FY 2023-24 Budget Overview Presentation Staff will provide the Committee with an overview of the expenditure budget for FY 2023-24 that will be presented to the City Council in May. OPEB Actuarial Valuation Report Update Presentation Staff will provide the Committee with an overview of the latest actuarial valuation report prepared by the City's actuary. Budget Amendments for Quarter Ending March 31, 2023 Receive and File Staff will report on the budget amendments from the prior quarter. Thursday, May 11, 2023 Third Quarter Budget Update Presentation Staff will provide a presentation regarding the year-to-date and projected Fiscal Year 2022-23 budget performance. Follow-Up Discussion of Proposed FY 2023-24 Budget Discussion Staff will provide the Committee with a copy of the Fiscal Year 2023-24 proposed budget document. Should the Committee wish to continue April's discussion of the Fiscal Year 2023-24 budget, this is also an opportunity to do so. Internal Audit Program Update Presentation Bi-monthly progress update on the internal audit program. Tuesday, May 23, 2023 Joint City Council and Finance Committee Study Session Presentation Staff will present the FY 2023-24 proposed budget to the City Council and Finance Committee. May 2023 April 2023 March 2023 I:\Users\FIN\Shared\Admin\Finance Committee\WORK PLAN\2022\WORK PLAN 2021-22 - 5-20-2022 3 5