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HomeMy WebLinkAbout2012 02-16 FCA AGENDA Brooklyn Center Financial Commission Thursday, February 16, 2012 — 6:30 PM All America Conference Room (Main Level of City Hall) I. Call to Order II. Approval of Agenda III. Approval of Minutes a. July 21, 2011 IV. Election of Commission Chairperson V. Appointment of Commission Vice Chairperson VI. Review of Resolution 99-110; Enabling Resolution VII. Report on Financial Advisor RFP VIII. Discussion of 2012 Work Plan a. Financial Policies Review b. Popular Financial Reporting Format c. Multiple Year Budgeting d. 2013 Budget Joint Meetings with the City Council IX. Other Business a. City Council Open House for Commissions on April 11, 2012 at 6:30 b. Other Commission Business X. Adjournment Financial Commission Regular Meeting Minutes 21 July 2011 1. Call to Order The meeting was called to order by Newman at 7:03 PM Members Present: Commissioners Newman, Landis, Plunkett and Agbssou. Members Absent: Schueller (excused), Van Der Werf (excused), and Berglin (unexcused). Council Member Roche was present. Staff present was Director of Fiscal & Support Services Jordet. 2. Adoption of the Agenda Without objections, the Agenda was declared adopted as presented. 3. Minutes Mr. Landis moved adoption of the minutes from the 19 May 2011 meeting. Ms. Plunkett seconded the motion. With all present voting in favor of the motion the Minutes for the 19 May 2011 meeting were declared adopted as presented. I 4. Review of Information on Acccount Collections Mr. Jordet reviewed the prior conversation about billings and collections and distributed some additional material about comparison cities. Additional points of discussion included reporting of payment status to consumer credit rating agencies, preprinting payment terms and consequences on the back of billing forms, assessment of unpaid bills with interest, marking on envelopes that the envelope includes the utility bill, skipping the first letter in the assessment process, and a range of write off options ranging from any final bills to no write offs at all. It was decided that the Commission would follow the same procedure as used for the Council request on LGA and review a draft memorandum of response to the City Council at its next meeting. 5. Commission Attendance Information Mr. Jordet Reviewed the Financial Commission attendance record compiled for meetings in 2010 and 2011. It was noted that Mr. Berglin's unexcused absences (four) exceeded the number specified in the enabling resolution (three consecutive) i that constitute an automatic resignation from the Commission. As per the enabling resolution, Mr. Roche will inform the City Council of the resignation. 6. Update on Prior Issues RFP's for Insurance Agent of Record were reviewed, interviews conducted with two of the five proposers, references checked on those two firms, and a recommendation developed. On Monday, 25 July 2011, the City Council will consider a resolution appointing Northern Capital Insurance Group as agent of record for the City. RFP's for Financial Services Advisor were distributed and all firms receiving the RFP (four) indicated that they will respond. 7. Other Business Mr. Newman brought attention to the calendar of upcoming meeting with the City Council to consider the 2012 budget. No other business was brought before the Commission. 7. Adjournment With no other business to transact, the meeting was adjourned at 7:45 PM. RESOLUTION NO. 91-115 RESOLUTION NO. 92-99 RESOLUTION NO. 92-168 RESOLUTION NO. 95-78 RESOLUTION NO. 98-13 RESOLUTION NO. 99-110 RESOLUTION ESTABLISHING A BROOKLYN CENTER FINANCIAL COMMISSION AND DEFINING DUTIES AND RESPONSIBILITIES WHEREAS, the Brooklyn Center City Council established by Resolution Nos. 91-115 and 92-99 an ad hoc task force for the express purpose of reviewing the fiscal impacts of State of Minnesota budgetary problems on Brooklyn Center and assisting the City Council in formulating priorities and responses to a limited fiscal resource situation; and WHEREAS, on June 22, 1992, the ad hoc City Financial Task Force presented to the City Council a report entitled "General Fund Budget Prioritization Process" which was accepted by the City Council; and WHEREAS, there is an ongoing need to formulate priorities and responses to continuing limited fiscal resources. NOW, THEREFORE, BE IT RESOLVED by the Brooklyn Center City Council that there is hereby established within the City of Brooklyn Center an advisory Financial Commission as follows: Subdivision 1. TITLE: This organization shall be known as the Brooklyn Center Financial Commission. Subdivision 2. SCOPE: The scope of activity of this Commission shall consist of advising the City Council regarding matters relevant to the City's financial status. Subdivision 3. PURPOSE: The Commission shall serve as an advisory body to assist the City Council in evaluating and developing fiscal policies, fiscal procedures, Mayor and Council Member total compensation, budgetary and capital matters, and such other issues as may be assigned to the Commission by the City Council or referred to it by the City Manager. The Commission may also identify and recommend to the City Council issues and matters for Commission and/or staff review. Subdivision 4. COMPOSITION: The Commission shall be composed of a chairperson and six (6) members, all of whom shall be appointed and serve as set forth in Subdivision 5. Subdivision 5. MEMBERS METHOD OF SELECTION-TERM OF OFFICE- REMOVAL: Chairperson: The Chairperson shall be elected by majority vote of the Financial Commission membership. The election shall be conducted at the Financial Commission's first regular meeting of the calendar year, or in the case of a vacancy, within two regularly scheduled Financial Commission meetings from the time a vacancy of the chair Financial Policies Section III Page 28 occurs. The Chairperson may be removed by majority vote of the Financial Commission membership. The Chairperson shall assure fulfillment of the following responsibilities in addition to those otherwise described herein: 1. Preside over meetings of the Commission; 2. A pp ear or appoint a representative to appear, as necessary, before the City Council to present the viewpoint of the Commission in matters relevant to the City's financial status as it relates to business under consideration by the City Council; 3. Review all official minutes of the City Council and other advisory commissions for the purpose of informing the Financial Commission of matters relevant to city finances. Vice Chairperson: A Vice Chairperson shall be appointed annually by the Chairperson from the members of the Commission. The Vice Chairperson shall perform such duties as may be assigned by the Chairperson and shall assume the responsibilities of the chair in the absence of the Chairperson. Members' Term of Office: Members of the Commission shall be appointed by the Mayor with majority consent of the Council. The terms of office shall be staggered three-year terms, except that any person appointed to fill a vacancy occurring prior to the expiration of the term for which his or her predecessor was appointed shall be appointed only for the remainder of such term. Upon expiration of his or her term of office, a member shall continue to serve until his or her successor is appointed and shall have qualified. Terms of office for members of the Commission shall expire on December 31 of respective calendar years. In the event an appointed Commissioner suffers from an extended illness, disability, or other activity preventing proper fulfillment of duties, responsibilities, rules and regulations of the Commission, the Commissioner may be temporarily replaced by an interim Commissioner appointed by the Mayor with majority consent of the City Council. Qualifications for Membership: Members of the Commission shall be residents of the City of Brooklyn Center while serving on the Commission and have an interest in the financial operations of the City. Representation Requirements: Members shall be appointed upon the basis of qualification and interest and to reflect a general representation of the diversity of the community. Conflict of Interest: Commissioners shall comply with provisions of the City of Brooklyn Center's business ethics policy. Resignations-Removal from Office-Vacancies Commissioners may resign voluntarily or may be removed from office by the Mayor with consent by majority vote of the City Council. Three consecutive unexcused absences from the duly called Commission meetings or unexcused absences from a majority of duly called Commission meetings Financial Policies Section III Page 29 within one calendar year shall constitute automatic resignation from office. The City Council liaison shall inform the Mayor and City Council of such automatic resignations. Vacancies in the Commission shall be filled by Mayoral appointment with majority consent of the City Council. The procedure for filling Commission vacancies is as follows: 1. Notices of vacancies shall be posted for 30 days before any official City Council action is taken; 2. Vacancies shall be announced in the City's official newspaper; 3. Notices of vacancies shall be sent to all members of standing advisory commissions; 4. Applications for Commission membership must be obtained in the City Clerk's office and must be submitted in writing to the City Cleric; 5. The City Clerk shall forward copies of the applications to the Mayor and City Council; 6. The Mayor shall identify and include the nominee's application form in the City Council agenda materials for the City Council meeting at which the nominee is presented; 7. The City Council, by majority vote, may approve an appointment at the City Council meeting at which the nominee is presented. Compensation: Commissioners shall serve without compensation. Subdivision 6. RULES AND PROCEDURES: The Commission shall adopt such rules and procedures not inconsistent with these provisions as may be necessary for the proper execution and conduct of business. Subdivision 7. MEETINGS: The initial meeting of the Commission shall be convened at the call of the Chairperson within thirty (30) days after appointment by the Council. Thereafter, regular meetings shall be held with date and time to be determined by the Commission. Special meetings may be called by the Chairperson. Subdivision 8. STAFF: The City Manager shall assign one member of the administrative staff to serve as staff to the Commission. The staff member assigned shall perform such clerical and research duties on behalf of the Commission as may be assigned the City Manager, Subdivision 9. EX OFFICIO MEMBERS: The Mayor, or his or her City Council designee, shall serve as an ex officio member of the Commission, privileged to speak on any matter but without a vote, and shall provide a liaison between the Commission and the City Council. Financial Policies Section III Page 30 SECTION II- GENERAL POLICIES City Council Code of Policies 2.95 Business Ethics Policy The City of Brooklyn Center shall operate its business in accordance with the highest ethical standards and with the applicable laws of the United States and the State of Minnesota and the Charter and ordinances of the City of Brooklyn Center. Specific matters or types of transactions not covered by such specific provisions shall be conducted in accordance with the following general policy. For purposes of this statement of business ethics policy, the term "public official" shall include all elected officials, all members of boards or commissions, and the City Manager and all employees of the City. The term "employee" shall include those personnel defined as employees in the City's Personnel Rules and Regulations. 1. Offering or Accepting Gifts and Gratuities A. No public official shall misuse his or her position to secure special privileges or exemptions for such person or any other person. B. No public official shall directly or indirectly receive, or agree to receive, any compensation, gift, reward, or gratuity in payment for the performance of his or her official duties except as may be provided by law. C. Whenever a public official deals with a City supplier or customer, he or she has an obligation to act solely in the best interest of the City. This obligation includes not only those acts formalized by written contracts but also covers everyday business relationships with vendors or customers. D. No public official shall ask for or accept (directly or indirectly) payment, favors, or any other thing of significant value from a current or potential City supplier or customer, or any other person in consideration for assistance or influence, or upon the representation that such assistance or influence has been or will be rendered, in connection with a purchase or any other transaction or proceeding affecting the City. This policy does not bar the acceptance of unsolicited entertainment or advertising favors which are of negligible value and are legally permissible, when no assistance is given for or any obligation to render assistance is assumed by such acceptance. No public official may accept free meals or purchase meals, goods, or services at reduced prices from businesses in the City of Brooklyn Center or from vendors which sell or offer to sell goods or services to the City, unless such free meals or discounted meals, goods, or services are available on the same terms to the public at large or to all government employees. This policy does not apply to unsolicited acceptance of a meal which is incidental to a specifically scheduled business meeting relating to City business. E. No public official shall offer or give (directly or indirectly) payments, favors, or any other thing of significant value to an employee or agent of a current or potential supplier, customer, or union in consideration for assistance or influence, or upon the representation that such assistance or influence has been or will be City of Brooklyn Center 08/14/06 Page 273 I SECTION II- GENERAL POLICIES City Council Code of Policies a. Prepare a written statement describing the matter requiring action or decision and the nature of the potential conflict of interest; b. Deliver copies of the statement to the City Council, the City Manager, and the employee's immediate superior, if any; C. If a potential conflict of interest presents itself and there is insufficient time to comply with the provision of clauses (a) and (b), the public official shall orally inform the City Council or superior of the potential conflict. 2. If the public official is not a member of the City Council, the City Manager shall make a determination in the matter. If there is no immediate superior, the public official shall abstain in a manner prescribed by the City Council from influence over the action or decision in question. If the public official is a member of the City Council, at the member's request, the City Council shall excuse the member from taking part in the action or decision in question. 3. Safeguarding City Assets A The department head or assigned manager/supervisor at each location is responsible for the safeguarding of all City assets and the correctness of data submitted to the Finance Department and contained in the financial reports. B. Special protection shall be afforded assets which are readily saleable because of high intrinsic value or common usage. Attention should also be given to machinery, equipment, and records which, if damaged, would stop or drastically reduce operations for an extended period. Examples of assets or documents which could provide access to assets and which need protection are: Cash Marketable securities Readily marketable products,parts and subassemblies Precious metals (raw or in any high content form) Check blanks Stamps/postage meters Common tools and equipment High value,portable equipment Data processing and other office equipment, including programs Vital records C. Although the preparation of the financial reports is the duty of the Finance Department, department heads are responsible for the accuracy and reliability of the financial data. Consequently, the department heads should be concerned about all those factors which are involved in the propriety of recordkeeping and in City of Brooklyn Center 08/14/06 Page 275 Financial Policy Review and Rewrite Outline: (in priority order) Public Utility Account Collections Policy Sanitary Sewer Rate for the Elderly Policy Water Utility Meter Reading Policy 2A. Guidelines for Funding Social Services 2.41 Capital Improvements Fund and Infrastructure Construction Fund 2.4� Capital Reserve Policy 2.51, Disposal of Property Policy Purchasing Policy RFP`s for Financial Professional Services Administrative Purchasing Policy document 2.2d Capitalization and Depreciation Policy Financial Management Policies Purpose 2.21. Objectives 2.21. Capital Improvement Budget Policies x.21. Revenue Policies 1. Debt Policies Reserve Policies Investment Policies Accounting, Auditing, Financial Reporting Policies Risk Management Policies Operating Budget Policies 2.22 Investment Policy BEST PRACTICE PRACTICE Preparing Popular Reports (1991, 1996, 2001, and 2006) (CAAFR) Background. The scope of financial reports presented in conformity with generally accepted accounting principles(GAAP) is broad and data in those reports are usually presented at a high level of detail. Such comprehensive and detailed presentations are needed to meet the needs of decision-makers and to demonstrate compliance with legal requirements to oversight bodies and others. Annual financial reports issued in conformity with GAAP are essential if governments are to meet their obligation to be accountable to their citizens. Unfortunately,the comprehensiveness and level of detail found in many GAAP reports may confuse or discourage those unfamiliar with accounting and financial reporting. Recommendation. The Government Finance Officers Association (GFOA)has long been on record as encouraging every state and local government to issue a comprehensive annual financial report(CAFR) in conformity with GAAP. The GFOA also encourages governments to supplement their CAFR with simpler, "popular" reports designed to assist those who need or desire a less detailed overview of a government's financial activities. Such reporting can take the form of consolidated or aggregated presentations, or a variety of other formats. GFOA recommends that popular reports exhibit the following characteristics to be most effective: • I The data in the popular report should be extracted from the CAFR; ` • The popular report should be issued on a timely basis, no later than six months after the close of the fiscal I year,so that the information it contains is still relevant; • The scope of the popular report should be clearly indicated(i.e., does the popular report include component units as well as the primarily government?); • The popular report should mention the existence of the CAFR for the benefit of readers desiring more detailed information; to The popular report should attract and hold readers' interest, convey financial information in an easily understood manner, present information in an attractive and easy-to-follow format and be written in a concise and clear style; The popular report should avoid technical jargon to meet the needs of a broad, general audience and the report's message should be underscored, as appropriate, by photographs, charts, or other graphics; i The narrative should be used, as appropriate,to highlight and explain items of particular importance; Comparative data should be used constructively to help identify trends useful in the interpretation of financial data; • Popular reports should be posted on the government's web site. Hardcopies, when issued, should be distributed in a number and manner appropriate to their intended readership (e.g., newspaper or magazine inserts, sample copies provided to libraries, sample copies provided to professional offices);1 • Popular report preparers should strive for creativity; • Users of popular reports should be encouraged to provide feedback; and • Most important, the popular report should establish its credibility with its intended readers by presenting information in a balanced and objective manner. References ® GFOA's Award for Excellence in Popular Annual Financial Reporting Program r See GFOA's best practice on"Web Site Presentation of Official Financial Documents"(2009).