Loading...
2015-02-16 Audit/Finance Committee MinutesAFC AGENDA #: 1 �. 1 � .� � I After determining that a quorum is present, the Audit/Finance Committee of the City of Denton, Texas, met in a regular meeting on February 16, 2015, at 1;34 p.m., in the City Hall Conference Room, at City Hall, 215 E. McKinney Street, Denton, Texas at which the following items were considered: PRESENT: Council Member and Committee Chair, John Ryan; Mayor, Chris Watts; Council Member, Joey Hawkins STAFF PRESENT: Bryan Langley, Assistant City Manager; Howard Martin, Assistant City Manager; Jon Fortune, Assistant City Manager; Chuck Springer, Director of Finance; Antonia Puente, Assistant Director of Finance; John Davis, Director of Engineering; Kenneth Banks, Director af Environmental Services & Sustainability; Phil Williams, Denton Municipal Electric General Manager; Frank Payne, City Engineer; Kenneth Hedges, Deputy Fire Chief; Lenn Carter, Police Deputy Chief; Caroline Finley, Treasury Administrator; Jim Coulter, General Manager; Nancy Towle, Budget Manager; Jim Mays, Superintendent af Planning and Canstruction; Mike Halsema, Senior Financial Analyst; Nicholas Vincent, Solid Waste Financial Administrator; and Sarah Lallar, Recording Secretary. OTHERS PRESENT: Adam Lancarte and David Medanich from First Southwest Company The following items were considered: [�j�a�► ►� a a ► � 1. Consider approval of Audit/Finance Committee Minutes of October 28, 2014. Cauncil Member Jaey Hawkins made a motion to approve, Mayor Chris Watts secanded the motion. Motian carried unanimously, '' ��� � r � � � � � � •�. � � ;� � !� � � �' � , i : � � �i - � ! � � � - - - Chuck Springer, Director of Finance, briefly summarized the information provided and encouraged all other attendees to answer questions pertaining to their area. The grand total recommended amount of GO's and CO's including CO's for utility system purposes to be issued in FY 2014-15 is $120,525,000. Springer explained that the City sells bonds in accordance with the useful life of the asset giving examples listed on page 5 of the AIS. Staff will present the Notice of Intent ordinances to the City Council an March 3, 2015. Consideration and adoption of Bond Ordinance is planned for April 7, 2015. At that time staff will request a parameters sale that will permit staff to execute the bond sale within six (6) months of April 7, 2015. Springer stated that approximately $24 million of existing debt is being considered for refunding with possible savings from the refunding of approximately $2 million. The break down is approxrmately $15Q,000 annually for abaut 13 years. Springer addressed Council e ber Hawk'rns questian far further expianation of the types of refunding available under Federal Tax Laws. Springer proceeded to discuss the debt service tax rate impact that was estimated at a ma;cimum increase of 3 cents during the 2014 bond election. Springer projected future year tax rates based conservatively on a 4% grawth in assessed valuation. 5pringer brought to the committee's attention Exhibit 1, MMD (Municipal Market Data) AAA 20 year yields emphasizing the recent decline in rates. As of Pebruary 2, 2015, 20 year rates were 2,35%. Bryan l.s�n�ley, Assistant City M���74�ger explai����� t[���t the fis�:�t pr�li����nary i°c��a��rt on property values +�v�ll be available on Ma4r 1�0.�� and the cit:y �n�ill issue c����t af`��r t:his rc�cai-0t. Langley also informed the Committee that these projects will be brought before the Bond Oversight Committee at a meeting scheduled for March 6, 2015. � - �- , , -� • . , r • - "' 1 • r +- - • + , • -. �• • - � � -• �-r r • . � • �• � _ � - . - ♦ . � r - • - � _ _ . - • . � - - - , - - r - - �i � -:� r . +- - •� r-� . _ ._� � � + � -•• � .- � •- . -� � .' • • - . • • �-r . • � •- • � r � � � �, -� � Discussian ensued about Federal Tax Law requirements on the expenditure requirements for bond proceeds. � . •- '• '' , -� .�• - - . � - . - r �- - � -• '�r `' r • � � . w' • • - � , � , � � � , � - ' , - , .•- •,• *-r, ,, � ' �, � - , �- - �- - • .� - •' • -• • - � - w-� • •" � ^'� .�t, � �' •, •: '� .�� ' • .' � •�• � � � • r�* ' • • •� *' " � • ' •" •� 1'�' . � ' • •' � �' • - •' � " ' � � ' � • � • i � � - � � - � �'" .1� ' -•' � �"' �" � '�• � � �. _ i• �I . ^ • �'• �. '• � � #', � 'f * - �1-� ��I � • # " � �' ' • •"" � • � ' • � ' � • - � � t • ' ` �- • '* - ''# � ' • � •, #' . i� � • • ' • ' • • "''� � � - .� - -�' # ',• • • " • . � - • ' !'' ' '�'� f' . * ' � � • •i • #' � •'' • � 0 Under Section 551.042 of the Texas Open Meeting Act, respond to inquiries from the Audit/Finance Committee or the public with speci�c factual information or recrtation of policy, or accept a proposal to place the matter on the agenda for an upcoming meeting � Under Section 551.0415 of the Texas Open Meetings Act, provide reports about items of community interest regarding which no action will be taken, to include: expressions of thanks congratulations or condolence; information regarding holiday schedules; an honorary or salutary recognition of a public of�cial, publyc employee, or other citizen; a reminder about an upcoming event organized or sponsored by the governing body; information regarding a social, ceremonial, or community event organized or sponsored by an entity other than the governing body that was attended or is scheduled to be attended by a member of the governing body or an official or employee of the municipality; or an announcement involving an imminent threat to the public health and safety of people in the municipality that has arisen after the posting of the agenda. With no additional business to be addressed, the Committee adjourned at 2:18 p.m. � � ��„w,a� �° � � `' � : � � �� °� ' ,�� � �1� � � �� � � �` �t � � �; ��� � �a r�� �. .Ih1 RY� -�_._._ �e._���, SARAH LOLLAR,� _���.� .�e.e_ _�.�..�__ COMMITTEE CHAIR RECORDING SECRETARY CITY OF DENTON, TEXAS CITY OF DENTON, TEXAS 3