RPVCCA_CC_SR_2012_11_20_E_Finance_Advisory_Committee_Work_PlanCITY OF
MEMORANDUM
RANCHO PALOS VERDES
TO:
FROM:
DATE:
SUBJECT:
REVIEWED BY:
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
DENNIS McLEAN,DIRECTOR OF FINANCE AND INFORMATION
TECHNOLOGY
NOVEMBER 20,2012
'"FINANCE ADVISORY COMMITTEE WORK PLAN
CAROLYN LEHR,CITY MANAGER~
Staff Coordinator:Kathryn Downs,Deputy Director of Finance
and Information Technology lCo
RECOMMENDATION
Approve the attached updated 2012-13 Work Plan for the Finance Advisory Committee
(FAC).
BACKGROUND AND DISCUSSION
On October 16,2012,the City Council directed the FAC to review the Financing Plan
prepared by the City's Financial Advisor,Magis Advisors,for the San Ramon Canyon
Stabilization Project (the "Project").The Financing Plan is Phase 1 of the services to be
provided by the Financial Advisor that could ultimately lead to and include the sale of debt
securities for the Project.Completion of the Financing Plan will not obligate the City to
issue debt.
The FAC's review would likely occur in spring 2013.After review of the Financing Plan,the
FAC's comments and recommendations would be forwarded to the City Council.
The attached 2012-13 Work Plan has been updated to include this additional task.
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CITY OF
FINANCE ADVISORY COMMITTEE 2012-13 WORK PLAN
Page 1 of 10
MISSION,STATEMENT
The Finance Advisory Committee provides citizen input to the City Council and
Staff regarding financial matters of the City of Rancho Palos Verdes.The
Committee shall review short and long-term financial information of the City and
other financial issues as assigned by the City Council.The Committee shall
provide advice regarding economic development matters such as methods to
improve the business climate and how to better work with local businesses and
shall recommend specific areas for review to the City Council.The Committee
will serve to advise the City Council regarding the City's financial condition.
'f"
SUMMARY OF SPECIFIC 2012-13 ASSIGNMENTS
1.Receive a presentation of the City's Comprehensive Annual Financial
Report (CAFR)prepared annually,including the audit report;
2.Review and provide comments and recommendations regarding the Five-
Year Financial Model to the City Council;
3.Prepare a short statement regarding the City's fiscal health to be
addressed to the City Council,and provide feedback and suggestions for
a presentation and publication to be prepared by Staff regarding various
financial issues relevant to the City (e.g.Capital Improvement Plan,
Reserves,Budget,etc.)that could be delivered at local community
meetings;
4.Analyze various methods of generating revenues for the City,efficiency
improvements and expenditure reductions;
5.Receive the 2012 CalPERS Actuarial Valuation Report,update the
Committee's Memorandum to the City Council dated April 25,2012 and
titled "Calculation of the City's Unfunded Pension Liability",and consider
any other pension related issues which City Council may direct;
6.Review the'Financing Plan for the San Ramon Canyon Stabilization
Project;and
7.In addition to the above specific assignments,the FAC is prepared to
meet on an as-needed basis to review any additional projects assigned to
it by the City Council
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CITY OF
FINANCE ADVISORY COMMITTEE 2012-13 WORK PLAN
Page 2 of 10
SUMMARY OF STAFF TIME
A summary of the total Staff time estimated for the assignments outlined in this
2012-13 work plan follows:
Assignment
Staff Support
No.Meeting Date Hours
Critique Community Presentation &
Prepare Fiscal Health Statement 3 October 9
Analyze Revenue &Expenditures 4 Nov/Dec/Jan 46
Update Pension Memo 5 November 7
Receive CAFR Presentation 1 January 2
iI"
Review San Ramon Financing Plan 6 March 12
Review 2013 Five-Year Model 2 Apr/May 24
Total Staff Time 100
Note:The Staff Time estimated herein is exclusive of the time to prepare work
product for the City Council.
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OTY OF ~RANcHO I1IIDS VERDES
FINANCE ADVISORY COMMITTEE 2012-13 WORK PLAN
Page 3 of 10
SPECIFIC 2012-13 ASSIGNMENTS
1.RECEIVE A PRESENTATION OF THE CITY'S COMPREHENSIVE ANNUAL
FINANCIAL REPORT (CAFR)PREPARED ANNUALLY,INCLUDING THE
AUDIT REPORT
The Comprehensive Annual Financial Report (CAFR)is an annual report that
includes the City's audited financial statements,as well as other financial and
statistical information.Receipt of this presentation is an annually recurring item
intended to provide the Committee with relevant financial information.
Staff Responsibilities:l'
~Present an oral overview of the CAFR and accompanying staff report to
the Committee and answer Committee Member questions.
Timeline
Staff expects that this presentation will take place during a meeting with another
Work Plan assignment in January 2013.
Staff Time:
Committee Member Advance O&A
Staff preparation for presentation
Total Staff Time Required
1 hour
1 hour
2 hours
2.REVIEW AND PROVIDE COMMENTS AND RECOMMENDATIONS
REGARDING THE FIVE-YEAR FINANCIAL MODEL TO THE CITY COUNCIL
The Five-Year Financial Model (the "Model")is a financial schedule which is
annually prepared by Staff,as required by City Council Policy No.18.The Model
includes the proposed budget for the coming fiscal year,as well as estimates of
revenues,expenditures,fund transfers and ending fund balance for all funds of
the City over a five-year time period.The Model is prepared as part of the
budget process for each fiscal year,and is a planning tool used to identify
structural problems in the budget and future fiscal challenges.
Committee Responsibilities:
~Review and comment on the draft 2013 Model prepared by Staff focusing
on noteworthy changes,trends,and key assumptions;and
~Provide recommendations to City Council.
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em'OF ~o FJ\lDs'vERDES
FINANCE ADVISORY COMMITTEE 2012·13 WORK PLAN
Page 4 of 10
Staff Responsibilities:
~Prepare the draft 2013 Model with accompanying staff reports explaining
key assumptions and noteworthy changes;
~Present an oral overview of the draft 2013 Model and accompanying staff
report to the Committee and answer Committee Member questions;and
~Forward the Committee's comments and recommendations to the City
Council for its consideration prior to adoption of the FY13-14 City bUdget.
Timeline
Staff expects that review of the draft 2013 Model will take place at two
Committee meetings during April and/or May 2013.'~
Staff Time:
Staff report preparation for the Committee
Agenda preparation with Chair &distribution
Committee Member Advance O&A
Staff preparation for presentation
Meeting attendance for 1 staff person
Minute preparation
Total Staff Time Required
6 hours
2 hours
4 hours
4 hours
6 hours
2 hours
24 hours
Note:The Staff Time estimated herein is exclusive of the time to prepare the
Model and Staff Report for City Council.
3.PREPARE A SHORT STATEMENT REGARDING THE CITY'S FISCAL
HEALTH TO BE ADDRESSED TO THE CITY COUNCIL,AND PROVIDE
FEEDBACK AND SUGGESTIONS FOR A PRESENTATION AND
PUBLICATION TO BE PREPARED BY STAFF REGARDING VARIOUS
FINANCIAL ISSUES RELEVANT TO THE CITY THAT COULD BE DELIVERED
AT LOCAL COMMUNITY MEETINGS
As part of its 2012-13 goals,the Finance and Information Technology
Department expects to make presentations at local community meetings
regarding the various financial issues relevant to the City (e.g.Capital
Improvement Plan,Reserves,Budget,etc.).This process will be improved by
the Committee's involvement,including a statement from the Committee on the
City's fiscal health.Committee Members would not be precluded from attending
the local community meetings and offering their individual opinions and
comments.
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CITY OF ~Ri'J'lCHO fl\lDs \kRDEs
FINANCE ADVISORY COMMITTEE 2012-13 WORK PLAN
Page 5 of 10
Committee Responsibilities:
>-Comment and make suggestions for the presentation and draft
publication;and
>-Prepare a short statement regarding the City's fiscal health to be
addressed to the City Council.
Staff Responsibilities:
>-Deliver the draft presentation and publication,and answer Committee
Member questions;
>-Prepare the final presentation and publications incorporating Committee
'suggestions as appropriate;and
>-Forward the Committee's fiscal health statement t?,t/;le'City Council.
Timeline
Staff expects this assignment can be completed with one meeting during October
2012.
Staff Time:
Agenda preparation with Chair &distribution
Staff preparation for presentation
Meeting attendance for 1 staff person
Minute preparation
Prepare Report to City Council
Total Staff Time Required
1 hour
2 hours
3 hours
1 hour
2 hours
9 hours
4.ANALYZE VARIOUS METHODS OF GENERATING REVENUES FOR THE
CITY,EFFICIENCY IMPROVEMENTS AND EXPENDITURE REDUCTIONS
There are a limited number of revenue generation methods legally available to
California cities.After reviewing an overview of legally allowable methods and a
review of the City's existing revenue sources,the Committee may develop ideas
to secure a sufficient revenue stream for future City services and infrastructure
projects.In an effort to analyze the complete view of the City's financial activity,
the Committee would also consider efficiency improvements and the potential for
expenditure reductions that mayor may not be based upon reductions in service
levels.
Committee Responsibilities:
>-Review legally allowable revenue sources for California cities;
>-Review the City's existing revenue sources;
>-Review the City's expenditures and service levels;and
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OTY OF ~RAi'cHo FJ\lOS VERCffi
FINANCE ADVISORY COMMITTEE 2012-13 WORK PLAN
Page 6 of 10
~Develop recommendations to the City Council.
Staff Responsibilities:
~Provide authoritative evidence of legally allowable revenue sources for
California cities;
~Provide an overview of the City's existing revenue sources,expenditures
and service levels;
~Forward the Committee's comments and recommendations to the City
Council for its consideration.
Timeline
Oil"
Staff expects this assignment can be completed during three meetings in
November 2012,December 2012,and January 2013.
Staff Time:
Staff report preparation for the Committee
Agenda preparation with Chair &distribution
Staff preparation for presentation
Meeting attendance for 1 staff person
Minute preparation
Prepare Report to City Council
Total Staff Time Required
20 hours
3 hours
6 hours
9 hours
3 hours
5 hours
46 hours
5.RECEIVE THE 2012 CALPERS ACTUARIAL VALUATION REPORT,
UPDATE THE COMMITTEE'S MEMORANDUM TO THE CITY COUNCIL
DATED APRIL 25,2012,AND CONSIDER ANY OTHER PENSION RELATED
ISSUES WHICH THE CITY COUNCIL MAY DIRECT
On January 17,2012,the City Council made the following assignment to the
Committee:
"The Finance Advisory Committee (FAG)will study the alternatives that are
available for the City to accurately ascertain the CalPERS Unfunded Pension
Liability owed by the City of Rancho Palos Verdes,as other California General
Law cities have successfully done,and report its finding(s)to the City Council
within 90 days."
In March and April of 2012,the Committee performed its task and issued a
memorandum to the City Council dated April 25,2012 outlining the methodology
for calculating the City's unfunded pension liability and providing estimates
therein.
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CrTY OF ~O I1IlDS VERDES
FINANCE ADVISORY COMMITTEE 2012-13 WORK PLAN
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The Committee believes there is value to receiving the 2012 Actuarial Valuation
Report from CalPERS and determining whether the Committee's memorandum
to City Council should be updated.The Committee also offers to study any other
employee pension related issues that the City Council may direct.
Committee Responsibilities:
~Review the 2012 CalPERS Actuarial Valuation Report;and
~Update the Committee memorandum to the City Council as appropriate.
Staff Responsibilities:
~Provide a presentation of the 2012 CalPERS Actu(ij'ial Valuation Report;
and ~
~Forward the Committee's updated memorandum to the City Council.
Timeline
Staff expects that this presentation will take place during a meeting with another
Work Plan assignment in November 2012.
Staff Time:
Staff report preparation for the Committee
Committee Member Advance Q&A
Staff preparation for presehtation
Prepare Report to City Council
Total Staff Time Required
2 hours
2 hours
1 hour
2 hours
7 hours
6.REVIEW THE FINANCING PLAN FOR THE SAN RAMON CANYON
STABILIZATION PROJECT
On October 16,2012,the City Council authorized the City's Financial Advisor to
proceed with Phase 10f the services to prepare the Financing Plan and oversee
the sale of debt securities for the San Ramon Canyon Stabilization project.
Phase 1 is to prepare an analysis and the Financing Plan.The City Council also
directed the Committee to review the Financing Plan before it is presented to City
Council.
Committee Responsibilities:
~Review the Financing Plan prepared by the City's Financial Advisor;and
~Prepare comments and recommendations to be forwarded to the City
Council.
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OTY CJ'~Ri'J'lCHO I1IlDS IA'Rrn3
FINANCE ADVISORY COMMITTEE 2012-13 WORK PLAN
Page 8 of 10
Staff Responsibilities:
~Provide a presentation of the Financing Plan;and
~Forward the Committee's comments and recommendations to the City
Council.
Timeline
Staff expects that this presentation will take place during a meeting in March
2013.
Staff rime:
Staff report preparation for the Committee
Committee Member Advance Q&A
Staff preparation for presentation
Meeting attendance for 1 staff person
Minute Preparation
Prepare Report to City Council
Total Staff Time Required
2 hQurs
2 hours
3 hours
1 hour
2 hours
12 hours
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CITY OF
FINANCE ADVISORY COMMITTEE 2012-13 WORK PLAN
Page 9 of 10
COMMITTEE RESOURCES
Budget
Historically,the City's budget has included an allocation for hiring outside
consultants to assist in researching particular issues.Although this draft work
plan does not include assignments with an apparent need for consulting help,
additional assignments may come from the City Council in the future.Staff
believes the City's bUdget is adequate to meet the needs of the Committee.
ROLES
City Council
The five-member City Council is the legislative and policy body for the City,
charged with providing overall leadership by enacting laws and allocating City
resources for programs,services and activities.The City Council appoints
members to serve on this committee and assigns the committee special
assignments to research,discuss,and provide comments and recommendations
to the Council.
Finance Advisory Committee
Advisory committees are a structured way for individual citizens to share their
opinions and perspectives,and to formulate comments and recommendations in
a focused,small group structure.The primary purpose of advisory committees is
to provide judicious advice,from a citizen perspective,to the City Council.
Committee activities may include the study of critical issues,hearing public
testimony,and reviewing staff reports and recommendations -all of which is
intended so that the committee is prepared to discuss,formulate,and forward
well-developed,thoughtful comments and recommendations to the City Council
in a timely manner.All appointees to the Committee should act at the direction of
the whole or the majority of the City Council and not upon the request or direction
of an individual member of the Council.
The City Manager has assigned staff liaisons to each Committee to maintain
communication between the Committee, City Council and City Manager.Staff
works under the direction of the City Manager.Reports prepared by Staff are
generally for the ultimate review and action of the City Council subsequent to the
Committee's review and comment.Staff is responsible for the work product that
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CITY OF ~RANcHO ~LOS VERDES
FINANCE ADVISORY COMMITTEE 2012·13 WORK PLAN
Page 10 of 10
the Committee reviews and administration of the Committee's activities including,
but not limited to the following:
•Ensuring that meeting notifications and consistent record keeping occurs.
•Serving as a communication link between the Committee, City
administration,departments,and the City Council,as appropriate.
•Providing professional guidance, issue analysis and recommendations.
•Assisting the committee with report preparation,and correspondence in
keeping with the committee's Council-approved work plan.
•Making sure the intent of the advisory committee is not lost after the
'Committee acts to make a comment or recommendation,and that it is
conveyed accurately to the City Council in a timely manner.
•Assisting the advisory committee in staying focused on the assignment
and agenda.
•Ensuring compliance of the Committee's actions with the Brown Act.
•Presenting advisory committee comments and recommendations to the
City Council,if requested to do so by either the committee or the City
Council.
•Maintaining a positive working relationship with the Chair and committee
members.
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