HomeMy WebLinkAboutMarch 2Finance and Investment Committee Meeting
Town of Los Altos Hills
Town Hall Council Meeting Room
Monday, March 2, 2009
Chair Roddy Sloss who prepared these minutes called the meeting to order at 5:10 p.m.
Members present Wilf Corrigan, Allan Epstein, Jim Lai, Frank Lloyd, Stan Mok, Jean Mordo,
Roddy Sloss, Lalla Stark
Member absent: Doug Norby
Staff present: Nick Pegueros, Finance Director; Cindy Higby, Accountant/Office Manager
Consultant: Paula Cone, HDL Coren & Cone – revenue management consultants
Public present: None
Approval of minutes: The February 2, 2009 meeting minutes were approved as corrected.
Report by Jean Mordo – recent city council activities of interest: 1) A water conservation
committee was formed to address future water conservation measures that may be imposed upon
Town residents. 2) Council is considering alternative catch-up fee billing plans for
approximately 60 recently discovered sewer users who have not been billed totaling an estimated
approximately $225,000 with individual fees ranging from less than $1,000 to more than
$10,000. 3) A resident who formed and financed a new Sewer District appealed to the Town
Council for financial relief. Council declined to provide the requested relief but is considering
extending the period to 25 years from 15 years for similar future residents to recover from
neighbors who benefit from the new sewer. 4) The Mayor would like to form a new sewer
finance committee to assist homeowners financing sewer additions. 5) Counsel is considering a
request from the City of Los Altos to participate in an upgrade of the Hillview Senior Center.
Report by Nick Pegueros – recent finance department matters: The recently adopted
California state budget is not expected to have an adverse impact on the Town. An estimated
$300,000 may be available from the Federal Government for Moody Road improvements. The
Town is initiating a search for a consultant to assist to assist the Town with the receipt of Federal
and state financial assistance grants associated with sewers, The Westwind Barn and roads.
The Bank of America is currently paying approximately ½ % per annum interest on public
agency deposits that are collateralized by Treasury securities. The Committee discussed other
secure alternatives for funds on deposit at the Bank of America and suggested either Treasury
Bills or FDIC insured money market funds that may be available at other banks.
Report by Paula Cone on future property tax revenues:
Ms. Cone presented handouts and noted that for the fiscal 2009-2010 fiscal year an increase of
approximately 2% in Town property tax revenues is a reasonable assumption, and for the
2010/2011 year, property tax revenues would probably not increase (or decrease) compared to
2009/10. Ms Cone thought property tax revenues would rise again in the 2011/12 fiscal year.
Ms. Cone reviewed her handout material and discussed 1) a County Assessor’s obligation to
unilaterally review (lower) tax assessments in periods of declining market values; 2) recent Santa
Clara County experience with property values compared to other similar California counties; 3)
recent foreclosure information; and 4) recent history of valuation changes in the Town compared
to neighboring municipalities.
continued
FIC Minutes March 2, 2009 – page 2.
Review of draft multi year Town financial forecast:
Nick Pegueros presented a combined Town revenue, operating cost and capital spending forecast
for the years ending June 2009, 2010, 2011 and 2012. After noting underlying assumptions,
there was a general discussion concluding that assumptions should be updated to reflect Paula
Cone’s comments related to property taxes and related effects on business licenses, building
permits, and expected increases in employee benefit retirement benefits due to current financial
market declines affecting both Town employees and its contractors like police and sewer
employees of other government agencies. It was also suggested that the presentation be
formatted to highlight areas where there is greater uncertainty, and where Town funds are
restricted from general use.
Presentations from the floor - none
Future Meeting Calendar: Next meeting is 5:00 pm March 20, 2009 at Town Hall.
Adjournment - The meeting adjourned at 7:00 p.m.