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MINUTES
BUDGET AND FINANCE COMMISSION
REGULAR SESSION
October 15, 2019
ORO VALLEY COUNCIL CHAMBERS
11000 N. LA CAÑADA DRIVE
             
REGULAR SESSION AT OR AFTER 4:00 PM
             
CALL TO ORDER
  Chairman Beasley lead the Pledge of Allegiance
             
ROLL CALL
Present:
James Beasley, Chairman  
 
John Latchford, Vice Chairman  
 
David Newell, Commissioner  
 
Cathy Solverson, Commissioner  
 
Charles Kill, Commissioner  
Staff Present:
Joseph C. Winfield, Mayor
Mary Jacobs, Town Manager
Kevin Artz, Interim Finance Director
Wendy Gomez, Senior Budget Analyst
             
CALL TO AUDIENCE
  No speakers
             
COUNCIL LIAISON COMMENTS
  Mayor Winfield mentioned today was his first State of the Town.  He mentioned by all indications it went well and it was also well attended.  Mayor Winfield also informed the Commission the Council had made a decision to retain the 36 holes of golf with stipulations.  
             
REGULAR SESSION AGENDA
             
1. REVIEW AND APPROVAL OF THE SEPTEMBER 17, 2019 REGULAR SESSION MEETING MINUTES
  Vice Chairman Latchford had a comment on Item # 2.  He proposed the following change to the minutes.  Discussion ensued between the Commission and staff regarding prior period adjustments being proposed within the audit for FY 18/19 regarding the past practice of recording June sales tax revenue in July of the following year.

Commissioner Newell asked if there was discussion regarding another adjustment going back to 2016.

Mr. Artz stated yes there was another prior period adjustment for approximately $120,000.000 in the Community Center fund.  He stated the minutes could be amended to show that as well.
  Motion by Vice Chairman John Latchford, seconded by Commissioner David Newell to approve the September 17, 2019 minutes as amended.
  Vote: 5 - 0 Carried
             
2. PRESENTATION AND POSSIBLE DISCUSSION OF THE TOWN'S FY 19/20 FINANCIAL UPDATE THROUGH AUGUST 2019.
  Ms. Gomez presented a PowerPoint presentation and gave an overview of the Town's FY 19/20 financials thru August 2019.

Discussion ensued amongst the Commission and staff regarding item # 2.
             
3. REVIEW AND DISCUSSION OF TOWN COUNCIL ADOPTED MOTION FROM THE OCTOBER 2, 2019 COUNCIL MEETING, FINANCIAL PROJECTIONS AND FOLLOW-UP OF OUTSTANDING QUESTIONS FROM THE SEPTEMBER 17, 2019 BUDGET AND FINANCE COMMISSION MEETING.  TOPICS OF DISCUSSION MAY INCLUDE:     

•  Optimistic cash flow projections
•  Applicability of sales tax to country club members
•  Financing options for the construction of the community center
  Mr. Artz gave an overview of the topics in Agenda Item #3.

Discussion ensued between the Commission and staff regarding golf, country club dues and sales tax.

Chairman Beasley read a prepared statement regarding golf.  
  Motion by Chairman James Beasley,  to recommend to the Town of Oro Valley Council the following items:

# 1 - The Finance and Budget Commission recommends to the Town of Oro Valley Council that if the financial targets as forecasted by the Town of Oro Valley for a 36-hole program as identified in the approved Council motion dated October 2, 2019, are not met in the next three (3) fiscal years, then the Town of Oro Valley will require the contributing homeowner associations and golf members to make up the excess losses, capping the Town of Oro Valley subsidy at $750,000 per annum.  In addition, all capital expenditures for golf should be on a pay-as-you go basis with no borrowing allowed.
#2 - The Finance and Budget Commission recommends to the Town of Oro Valley Council that if the homeowner association and golf members cannot or will not make up the losses as described in motion 1, then the Town of Oro Valley discontinue the 18-hole Canada course, operating only the 18-hole Conquistador course, and return non-owned holes to the homeowners and repurpose the remaining holes.  Maximum Town of Oro Valley funding going forward for the 18-hole golf program should be capped at $500.000 per annum using the existing supplemental sales tax.
#3 - The Finance and Budget Commission recommends that the Town of Oro Valley Council redirect funds from the .5% sales tax currently in place to support golf and recreation so that money in excess of $750,000 per annum be placed in the general fund and be utilized for reducing the unfunded liabilities in the Town of Oro Valley pension plans.

Chairman Beasley recessed the meeting at 4:48pm.
Chairman Bealsey reconvened the meeting at 5:03pm.

Chairman Beasley stated that discussion of the elements of the motions could be discussed and the motions can be placed on the next Budget and Finance Commission meeting.

Discussion ensued amongst the Commission and staff.

Motions dies for lack of second.
             
4. REVIEW AND DISCUSSION OF THE TOWN OF ORO VALLEY POLICE DEPARTMENT ARIZONA PUBLIC SAFETY PERSONNEL RETIREMENT SYSTEM (PSPRS) ACTUARIAL VALUATION REPORT FOR JUNE 30, 2018
  Mr. Artz gave a presentation of the Town of Oro Valley Police Department Arizona Public Safety Personnel Retirement System (PSPRS) Actuarial Valuation Report for June 30, 2018.  

Mr. Artz stated the 2019 Report is typically not received until middle of December, so he is anticipating the report being available to the Commission at the January meeting.

Discussion took place between the Commission and staff.

Chairman Beasley asked if representatives from PSPRS and the Arizona State Retirement could come and speak to the Commission.

Mr. Artz stated it was his understanding a representative for PSPRS had attended a previous meeting, and he would reach out to Arizona State Retirement to see if someone would be available to make a presentation.
             
5. DISCUSSION OF THE TIMELINE AND SCHEDULE FOR THE FISCAL YEAR 2019 FINANCIAL AUDIT FOR THE TOWN OF ORO VALLEY.
  Mr. Artz gave a brief presentation on the timeline and schedule for the Fiscal Year 2019 Financial Audit for the Town of Oro Valley.

Mr. Artz stated the audit field work has been done.  He stated the Auditors should have a draft copy of the CAFR completed by late November early December.  If the audit is completed within this time, the Auditor will make a presentation to the Commission at the December 17, 2019 meeting.  IF not, the presentation will be at the January meeting.

Discussion between Commission and Staff ensued.
             
FUTURE AGENDA ITEMS
  Chairman Beasley asked that the following items be placed on the upcoming agenda:
Golf motions
Pension Plans
Audit

Vice Chairman Latchford asked for an update on the CFO position.

Mr. Artz stated staff would like to add Discussion of a Permanent Base Adjustment. 
             
ADJOURNMENT
  Motion by Commissioner David Newell, seconded by Commissioner Cathy Solverson to adjourn meeting at 5:38 pm.
  Vote: 5 - 0 Carried
I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the regular session of the Town of Oro Valley Budget and Finance Commission of Oro Valley, Arizona held on the ____ day of ____________________, 2019.  I further certify that the meeting was duly called and held and that a quorum was present.

Dated this _____ day of ____________________, 2019.
 

___________________________
Veronica Cubbage
Senior Office Specialist

    

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