HomeMy WebLinkAboutItem 08E VIONAMNOMW
Memorandum
To: Honorable Mayor and City Council
From: Steven Mielke, City Administrator
Copy: Dennis Feller, Director of Finance
Date: April 19, 2013
C%Iihlart• Finance Committee Discuscinn
City of Lakeville
Administration
The City Council created the Finance Committee via Resolution 11 -46 on May 16, 2011. The
Committee was subsequently formed and volunteers were appointed to the Committee. The
first meeting of the Committee .vas held on September 8, 20
Membership
The Committee membership includes seven (7) regular members appointed to staggered
three (3) year terms. While the resolution does not call for an alternate, the City Council chose
to appoint one (1) alternate member. Additionally, at least six (6) of the members must be
Lakeville residents. Currently all of the members are Lakeville residents.
At the present time the Committee has one opening (not including the alternate position).
During the most recent board and commission recruitment process there were no applicants
for the Finance Committee. At the April 11 Council work session the City Council discussed
the concept of recruiting a member by personal invitation in addition to reopening the
position by advertising. The City Council should consider and advise staff on how it wishes to
proceed with filling the position.
Alternatives:
1. The Council may wish to direct staff to re- advertise the opening.
2. Membership recruitment by the City Council, Staff or the Committee for members is
an option.
3. Leave the position vacant and wait for the next recruitment process.
Duties and Goals
The resolution is specific to the duties of the Committee. The following is a recap of the duties
of the Committee as well as some proposed goals for the coming year. At a recent
Committee meeting the Committee requested additional guidance from the City Council on
their work plan.
Duties defined in the enabling resolution:
a) Short and long term financial planning to include fees for services (structure and
policy) and alternative finance methodology. Not to include spending or taxation
levels.
2012 -13 Accomplishments
Debt Management
Capital Improvement Plan 2013 - 2017
2013 -14 Objectives
Capital Improvement Plan 2014 - 2018
Franchise Fees as an alternative financing
source
Liquor Fund Strategic Plan Financing
2014 fees and rates
Development of a long -range strategic
financial plan
b) Financial policies and practices, to include but not limited to fund balance policy,
debt management policy and investments policy.
2012 -13 Accomplishments
Investment Policy
Debt Management Policy
Operating Budget Policy
Revenue Policy
2013 -14 Objectives
Special Assessment Financing Policy
Liquor Financing Policy
c) Local, state and national trends in finance and economy to include but not
limited to bond markets, Federal Reserve and Department of Commerce.
2012 -13 Accomplishments
Economic indicators and trends reviewed
and included in various reports related to
2013 -14 Objectives
Economic indicators and trends reviewed
and included in various reports related to
budget budget
d) Legislative issues to include but not limited to levy limits and property tax relief
programs.
2012 -13 Accomplishments
2013 -14 Objectives
Discussion of the 2012 Legislative Issues Discussion of the 2013 Legislative Issues
e) Review of quarterly financial reports and Comprehensive Annual Financial
Report.
2012 -13 Accomplishments
Comprehensive Annual Financial Report
2011 and (Auditors) Management Report
Interim Financial Report - 1 st Quarter -
2012
Interim Financial Report- 2nd Quarter -
2012
Interim Financial Report- 3rd Quarter -
2012
2013 -14 Objectives
Comprehensive Annual Financial Report
2012 and (Auditors) Management Report
Interim Financial Report- Ist Quarter -
2013
Interim Financial Report- 2nd Quarter -
2013
Interim Financial Report - 3rd Quarter -
2013
f) Public communications and education programs related to budget and City
finances to include but not limited to budget format and public presentations of the
budget.
2012 -13 Accomplishments
Identify Public Information endeavors
Provide recommendations regarding the
October 2, 2012 Open House
Provide recommendations regarding the
Truth in Taxation Inserts
Budget in Brief
Review October 2, 2012 Open House
2013 -14 Objectives
Identify Public Information endeavors
Provide recommendations regarding the
Open House
Provide recommendations regarding the
Truth in Taxation Inserts
Budget in Brief
g) Other Topics by Committee Request
2012 -13 Accomplishments
Review and discussion of "Off Balance Sheet Liabilities"
Minnesota Public Pensions
Metropolitan Area Fiscal Disparities Program
Additional Discussion
A discussion of the roles of the City Council, Finance Committee and the Staff may be helpful
in considering the Council's goals for the Committee.
Perhaps it is helpful to describe the roles of the three bodies in the following manner:
1. The City Council is responsible for setting the strategic and financial direction of the
City through the setting of the City's Vision and Mission statements and the adoption
of financial planning documents such as the City Budget, Capital Improvement Plan
and other related financial documents.
2. It is the Staff's role to provide recommendations on policy matters and carry out the
directives of the City Council.
3. The role of the Finance Committee is to provide advice to the City Council and Staff on
how to accomplish the financial policy matters determined by the City Council.
In keeping with the original resolution, the Committee should be informed of the City
Council's intentions with regard to the strategic direction the Council wishes to set, and then
play a role in advising the Council on options to attain the strategic direction. Additionally the
Committee assists the Staff on methods and options to consider in carrying out its role.
Attachment: Resolution 11 -46
CITY OF LAKEVILLE
MiIIIII
Resolution No. 11 -46
RESOLUTION ESTABLISHING A FINANCE COMMITTEE
BE IT RESOLVED by the City Council of Lakeville, Minnesota, as follows:
Section 1: ESTABLISHMENT OF THE FINANCE COMMITTEE
The Finance Committee of the City shall act as the advisory body to the City Council
and City staff regarding short and long term financial planning; financial policies and
practices; local, state and national trends in finance and economy; legislative issues;
quarterly financial reports and comprehensive annual financial report: Dublic
communications and education programs relative to City of Lakeville budget and
finances.
Section 2: COMPOSITION, TERMS OF OFFICE
A. Composition: The Finance Committee shall consist of seven (7) members appointed
by the City Council,
B. Terms: The Committee shall be composed of seven (7) members, of which at least
six (6) shall be Lakeville residents. The Committee Members shall be appointed by
the City Council for a term of three (3) years. Members shall serve three -year
staggered terms with two or three appointments made annually.
C. Removal From Office: Any member of the Committee may be removed from office
with or without cause by a four -fifths ( vote of the entire City Council.
D. Any .member of t Committee who misses three (3) consecutive Committee
meetings in a calendar year, calculated at the end of each calendar year, due to
unexcused absences, shall automatically be removed from office without City Council
action and the City Administrator shall notify the member of his or her removal.
Excused absences include: a serious personal or family medical condition, death in
immediate family or unanticipated work - related commitment.
E. The staff liaisons to the Committee shall be the City Administrator and Finance
Director.
Section 3: ORGANIZATION AND PROCEDURES
A. Organize; Election of Officers:
1. At the first meeting of the year, the Committee shall elect a chairperson and vice
chair. No Committee member shall serve more than two (2) consecutive years as
chairperson.
2. Terms of all elected offices shall be for one year, with eligibility for reelection.
D. menbe'S UI L11 l.Vlilii littee shall receive no salaries or IGGJ 1Vi their services. InG
Committee may, with the consent of the City Council, incur expense that is deemed
necessary.
C. Meetings of the Committee:
1. A meeting, to be off cial, must have a quorum present. Four (4) regular
members shall constitute a quorum.
2. All motions must have the majority of votes of those members present to be
deemed approved.
3. Meetings to be scheduled monthly unless deemed unnecessary by staff or
chairperson.
Section 4: DUTIES
The duties of the Committee shall be to provide advice and recommendations to the
City Council and staff, for the following:
a) Short and long term financial planning to include fees for services (structure
and policy) and alternative finance methodology. Not to include spending or
taxation levels.
b) Financial policies and practices, to include but not limited to fund balance
policy, debt management policy and investments policy.
c) Local, state and national trends in finance and economy to include but not
limited to bond markets, Federal Reserve and Department of Commerce.
d) Legislative issues to include but not limited to levy limits and property tax
relief programs.
2
e) Review of quarterly financial reports and Comprehensive Annual Financial
Report.
f) Public communications and education programs related to budget and City
finances to include but not limited to budget format and public presentations
of the budget.
ADOPTED by the City Council of Lakeville, Minnesota this 16 day of May 2011.
CITY OF LAKEVILLE
BY:
Mark Bellows, Mayor
Charlene Friedges, City
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