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HomeMy WebLinkAboutMay 16Minutes of Finance and Investment Committee Monday, May 16, 2005 Bullis School Multi-Purpose Room 25890 Fremont Road, Los Altos Hills, CA The meeting convened at 6:05 p.m. Members present: Chair Lalla Carsten, Frank Lloyd, Karl Kneip, Doug Norby and Jim Lai Members absent: Wilf Corrigan Councilmembers present: Jean Mordo Staff present: Administrative Services Director Sarah Joiner, Accountant/Office Manager Cindy Higby Approval of minutes Minutes of the meeting of November 30, 2004 were approved as written. Review of Draft Operating and Capital Improvement Program Budgets for 2005 - 2006 Joiner presented an overview of the budget, including an analysis of General Fund revenues, expenditures and capital improvements, new expenditures, such as increased building maintenance and annual debt service, and requests that were not included pending City Council direction. In general, the Committee agreed to recommend the draft budget to Council with the following comments: • City Council should establish criteria for grants to various Community Service groups and review all requests each year. The Council should not automatically provide funding to past recipients. • The budget should include pathway capital improvement projects as identified by the Pathway Committee. The combined reserve projected for June 30, 2006 for the Pathway in-Lieu Fee Fund and Pathway Capital Improvement Project Fund is $466,959. • Only one year of debt service should be budgeted and transferred to the Debt Service Fund, rather than the two years of service budgeted in the draft. • Councilmember Mordo stated that he wanted an appropriation in the amount of $50,000 added to the budget for an employee compensation study. There was discussion about the amount that should be budgeted and no clear consensus reached other than to propose the item to the City Council. Minutes of Finance and Investment Committee May 16, 2005 2 Updates from Administrative Services Director Joiner presented information on the following topics: • Legal expenditures • Listing of Town-owned properties Discussion of Staff Report to City Council on Salaries, Benefits and Post-Retirement Health Insurance Costs Joiner provided copies of this staff report that was presented at two City Council meetings. Joiner stated that the data shows that employee compensation costs are neither out of control nor threatening the fiscal health of the Town. Compensation is a combination of salaries and benefits. If either component is adjusted, there may be an impact on the Town’s ability to retain and recruit staff. Mordo spoke of accounting standards which will require the Town to book the present value of future post-retirement health benefits. (This is a reference to Statement No. 45 of the Governmental Accounting Standards Board, commonly referred to as GASB 45. The statement is effective in three phases based on a government’s total revenues. The Town would need to implement GASB 45 beginning in fiscal year 2009 – 2010.) Presentations from the Floor Stark requested that the following items be added to the next agenda: discussion of general law vs. charter city, no/low property tax status, follow-up on sale of Town-owned properties. Selection of Next Meeting Date The Committee scheduled the next meeting for Monday, June 13, 2005 and for the second Monday of each month thereafter. Adjournment The meeting adjourned at 8:30 p.m. Meeting minutes were approved as presented at the June 14, 2005 FIC meeting.