St. Petersburg City Council

BUDGET, FINANCE & TAXATION COMMITTEE

AGENDA

Meeting of SEPTEMBER 25, 2014

8:00 AM City Hall Room 100

Members & Alternate: Committee Chair James Kennedy, Vice-Chair Charles Gerdes,

Councilmembers Karl Nurse, Amy Foster, and William Dudley

(alternate)

Support Staff: Linda Livingston, Finance Department and John Armbruster,

Human Resources

A. Call to Order

B. Approval of Agenda

C. Approval of Minutes

1. July 17, 2014

2. July 31, 2014

3. August 21, 2014

D. New / Deferred Business

1. Florida Strategic Plan for Economic Development. Speaker, Noel Munson, Florida

Department of Economic Opportunity - Goodwin

2. Returning City Buildings to the Inventory of City-Insured Properties -

Bernoskie/Grimes

3. Note Issue for Financing Rubbish Trucks & Containers for Recycling - Fritz

E. Continued Business

1. None

F. Upcoming Meetings Agenda Tentative Issues - Enter next meeting date here

1. 3rd Quarter Grants Report - Green/Ojah Maharaj

2. Management Evaluation Discussion - Scott

G. New Business Item Referrals

1. Referrals (attached)

H. Adjournment

CITY OF ST. PETERSBURG Budget Finance & Taxation Committee July 17, 2014 at 8:00 a.m.

Present:

Also:

Chair James R. Kennedy, Jr.; Vice-Chair Charles Gerdes; Karl Nurse; Amy Foster and William Dudley (alternate).

Jackie Kovilaritch, Assistant City Attorney; John Wolfe, City Attorney; Gary Cornwell, City Administrator; Anne Fritz, Finance Director; Linda Livingston, Accountant ill, Finance Department; John Armbruster, Personnel Analyst ill, Human Resources; Pat Beneby, Deputy City Clerk.

Chair Kennedy called the meeting to order with the above persons present. In connection with the approval of the meeting agenda Councilmember Dudley motioned that the agenda be approved. All were in favor of the motion. Ayes. Kennedy. Foster. Dudley (Alt). Nays. None. Absent. Gerdes. Nurse.

In connection with the approval of the minutes from May 8th, May 22nd and June 12th Councilmember Dudley moved that the minutes be approved. Chair Kennedy asked that the minutes of May 22nd and June 12th be revised to include changes as stated. All were in favor of the motion. Ayes. Kennedy. Foster. Dudley (Alt). Nays. None. Absent. Gerdes. Nurse.

Fiscal Policies Anne Fritz, Director of Finance (for Tom Greene, Director of Budget & Management) proposed an amendment to the Fund Balance Target section of the City's Fiscal Policies as amended on April 17, 2014. The amendment excludes internal transfers to other funds within the General Fund "Group of Funds" & is consistent with our financial reporting in the CAFR; therefore, continues to align our Fiscal Policies with our financial reporting requirements. Councilmember Dudley made a motion to forward to City Council. Motion approved.

Debt Refunder Opportunity Anne Fritz, Director of Finance, presented an analysis of Professional Sports Facility Sales Tax Refunding and potential Utility Bond Refunding/New Issue 2014. Her presentation was part of the City's continued practice of reviewing all outstanding debt for potential refunding opportunities to save the City in the cost of financing. She included detailed documentation prepared by Public ,Financial Management, the City's financial advisor and two resolutions for consideration. Preliminary analysis shows that there may be opportunities for saving to the City for both the Professional Sports Facility Sales Tax Refunding and for the 2005 Series Utility Revenue Bonds. Ms. Fritz recommended that City Council select Sun Trust (STI Institutional and Government, Inc.) for the Professional Sports Facility Sales Tax Refunding. Councilmember Dudley made a motion to forward the resolutions to City Council. Motion approved. Ms. Fritz will be on the 8/28 BF&T Agenda to present resolutions related to the 2014 Series 2014A (new borrowing for FY15 capital projects).

There being no further business, the meeting was adjourned at 8:42 a.m.

CITY OF ST. PETERSBURG Budget Finance & Taxation Committee July 31, 2014 at 8:00 a.m.

Present:

Also:

Absent:

Chair James R. Kennedy, Vice'."Chair Charles Gerdes, Councilmembers Amy Foster, Karl Nurse and William Dudley (Alternate).

City Attorney, John Wolfe; City Administrator, Gary Cornwell; Councilmembers Stev:e Kornell, Darden.· Rice; Finance Director, Anne Fritz; City Controller, Thomas Hoffman; City Auditor, Brad Scott; Accountant III, Linda Livingston; City Council Administrative Assistant,·. Cindy Sheppard; City Council Aide, Kewa Wright and Deputy City Clerk, Cathy E. Davis.

None.

Chair Kennedy called the meeting to order with the above persons present. In connection with the approval of the meeting agenda Councilmember Gerdes motioned that the meeting agenda be approved as submitted.

3rd Quarter Financial Report

Anne Fritz, Finance Director, gave a presentation on quarterly financial statements whic;:h represent the City's financial results for the nine months ending June 30, 2014. The presentation included the Investments Report, Debt Service Reports, Pension Reports and Financials Reports. The Investments Report shows the City's holdings and quarterly results as ofJune 30, 2014.

Ms. Fritz reviewed the new format of the investment reports, which now detail the name of each holding as well as the CUSIP numbers, true rate of return, book value, and market value. A discussion of the investment philosophy relating to having equity exposure was reviewed and Ms'. Fritz recommended that the City proceed carefully and with funds that are very long term and/or "endowment-like" funds such as the Weeki Wachee Fund, and now soon to be with the Water Cost Stabilization Fund and possibly some other funds as will be reviewed by the Investment Oversight Committee at an upcoming meeting.

The Debt Service Reports reflect the current principal and interest maturity schedule by year for the City. Ms. Fritz reminded the committee that the refunding and new issues will not be recognized in the report until after they are issued and·closed. A summary of the debt expected future funding sources (beginning in the next fiscal year) for both governmental and enterprise debt was included in the analysis furnished by Ms. Fritz. She also explained about the sequestrian effects on the outstanding Build America Bonds.

The Pension Reports display the current return on pension assets for the quarter as well as the solvency tests for the plans. During the current quarter all three pension funds continue to show positive results in the percentage funded. Ms. Fritz reviewed the current market holdings and the current market value of each plan as compared to the actuarial figures to reflect the pension

CTIY OF ST. PETERSBURG Budget Finance & Taxation Committee August 21, 2014 at 8:00 a.m.

Present:

Also:

Absent:

Committee Chair James R. "Jim" Kennedy, Jr.; Vice-Chair Charles Gerdes; Amy Foster and William Dudley (alternate).

Councilmembers Steve Kornell and Darden Rice; City Attorney, John . Wolfe; City Administrator, Gary Cornwell; City Development Senior

Administrator, Dave Metz; Managing Director City Development & Finance, Joe Zeoli; City Auditor, Brad Scott; Director Budget and Management, Tom Greene; ,Manager Budget and Management, Denise Labrie; Accountant Ill Finance, Linda Livingston; Personnel Analyst Ill Human Resources, John Armbruster; City Council Administrative Officer, Cindy Sheppard and Deputy City Clerk, Cathy E. Davis.

Councilmember Karl Nurse.

Chair Kennedy called the meeting to order with the above persons present In connection with the approval of the meeting agenda Councilmember Gerdes motioned that the agenda be approved as submitted. All were in favor of the motion. Ayes: Kennedy. Gerdes. Foster. Dudley (Alt). Nays. None. Absent. Nurse.

Status of Proposed Investment: Water Stabilization Fund _ Anne Fritz, Director of Finance, discussed the status of proposed investments policy for the Water Cost Stabilization Fund. Ms. Fritz relayed that the Investment Oversight Committee had met August 19th to discuss changes to the City's investment policy. The IOC drafted language for the Water Cost Stabilization Fund, Preservation Fund and the Weeki Wachee Fund policies. At the next IOC meeting, final changes will be discussed. Ms. Fritz stated that she wants to make sure the City's policies comply with the Government Finance Officers Association and the Association of Public Treasurers guidelines.

Discussion for use of Tourist Development Tax Follow-up City Development Senior Administrator Dave Metz and Managing Director Joe Zeoli gave a follow-up presentation on the use of the tourist development tax and other tourism issues. Mr. Metz stated that they recently met with St. Petersburg/Clearwater Convention & Visitors Bureau officials to discuss three issues: the arts, sporting events and the capital funding for tourism that will be available September 2015 from penny taxes. Mr. Metz told the Committee that the City may need to craft a message on how the County's efforts affect tourism in our City. Mr. Zeoli supplied the Committee with important information on the 2014 Florida Statues relating to the Tourist Development Tax and on the Pinellas County Code that gives detail on· the use of revenues for the Tourist Development Plan. Mr. Metz stated'that his office is in the process of providing more information to the Mayor and will share that information with City Council and advise the BF& T Committee when. it is appropriate for them to return for further discussions. ·

3rd Quarter Budget Report Tom Greene, Budget and Management Director, gave a presentation on the City's Third · Quarter Budgetary Analysis and Fund Balance Report .. He reviewed the projected revenues " and expenditures, the projected fund balances and their relationships to targets as well as reviewing capital improvement projects that closed during the third quarter. He provided the

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City of St. Petersburg Budget Finance & Taxation Committee August 21, 2014 Page 2

Committee with detailed docµments related to the Quarterly Fund Status Report of Selected Funds and the Third Quarter Project Close Out Report. Mr. Greene led a discussion of the Mayor's Plan of Action that includes a friendly competition within the departments to achieve budget savings in addition to other recommendations to shore up the projected General Fund gap of $1.5 million. · Mr. Greene noted. that there will be more discussions concerning the Mayor's Plan of Action at meetings of the Committee of the Whole.

T~ere being no further business, the meeting was adjourned at 9:18 a.m.