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HomeMy WebLinkAbout2019-03-26 Meeting Minutes Finance Committee Meeting Commission Chamber - 3/26/2019 ATTENDANCE: Present: Hons. Fennoy, Chairman; D. Williams, Vice Chairman; M. Williams and Frantom, members. Absent: Hon. Hardie Davis, Jr., Mayor. FINANCE 1. Discussion of the street lighting fee structure approved in 2018, revenue generated, and fees which would generate varying amounts of total revenue to meet current needs and to expand the level of service. Item Action: Approved Motions Motion Type Motion Text Made By Seconded By Motion Result Approve Motion to approve establishing a street light sub-committee composed of the five committee chairmen. Motion Passes 4-0. Commisioner Sean Frantom Commissioner Dennis Williams Passes 2. Presentation to the commission providing an update regarding current market conditions, Augusta's Bond Rating, debt capacity, and trends in the economy that may influence the bond market. Item Action: Approved Motions Motion Type Motion Text Made By Seconded By Motion Result Approve Motion to approve receiving this item as information. Motion Passes 4-0. Commissioner Dennis Williams Commisioner Sean Frantom Passes 3. Motion to approve the minutes of the Finance Committee held on March 12, 2019. Item Action: Approved Motions Motion Type Motion Text Made By Seconded By Motion Result Approve Motion to approve. Mr. Frantom out. Motion Passes 3-0. Commissioner Dennis Williams Commissioner William Fennoy Passes 4. Present the financial report of the twelve month period ended December 31, 2018. Item Action: Approved Motions Motion Type Motion Text Made By Seconded By Motion Result Approve Motion to approve receiving this item as information. Motion Passes 4-0. Commissioner Dennis Williams Commissioner Marion Williams Passes www.augustaga.gov Finance Committee Meeting 3/26/2019 1:15 PM Attendance 3/26/19 Department: Presenter: Caption: Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: 2019 Comparison of Fees to Generate Target Revenue TARGET Residential Commercial No Current All All METHODOLOGY REVENUE Res Comm Increment Increment Bill Residential Commercial Both Base of Commericial and Increment are 50% Higher than Residential and Exempt Exempt included in Increment $6.5 M $48.67 $73.01 $33.44 $50.16 $48.67 $82.11 $123.17 $7.0 M 52.41 78.62 36.01 54.02 $52.41 $88.42 $132.64 $7.5 M 56.16 84.24 38.58 57.88 $56.16 $94.74 $142.12 Exempt excluded from Increment $6.5 M $48.67 $73.01 $34.72 $52.08 $48.67 $83.39 $125.09 $7.0 M 52.41 78.62 37.39 56.09 $52.41 $89.80 $134.71 $7.5 M 56.16 84.24 40.06 60.09 $56.16 $96.22 $144.33 Assumptions:All parcels are included in Base Fee Parcels in Hephzibah and Blythe are excluded from increment Cost of program is 60% Roadway lighting 40% residential lighting Rate of Commericial is 50% higher than Residential and Exempt Total 6.28.18 file count Parcels outside Heph&Blythe Total parcels 81,141 Residential 69,313 Less Heph and Blythe total (2,469) Commercial 6,342 Total parcels for calculations 78,672 Exempt 3,017 Total 78,672 Exempt outside Hephzibah&Blythe (3,017) total of parcels excl Heph, Blythe&exempt 75,655 Total Fee Base Fee Distribution 2018 totals # total Parcels fee Billed 2018 Residential 40,556 *85.00$ 3,447,260.00$ Commercial 6,342 107.36$ 680,877.12$ Exempt 3,017 85.00$ 256,445.00$ 49,915 4,384,582.12$ less 5% bad debt (219,229.11)$ 4,165,353.01$ Total Parcel Count on 6.28 file Augusta Hephzibah Blythe Residential 71602 69313 1882 407 Commercial 6414 6342 62 10 Exempt 3125 3017 71 37 81141 78672 2015 454 Distribution of Augusta Parcel Count Suburban TOTAL Urban Suburban Billed not billed Residential 69313 13604 40556 *15153 * Commercial 6342 2170 4172 0 Exempt 3017 1298 1719 0 78672 17072 46447 15153 Urban Parcels Only Residential 13604 $85 $1,156,340 **not billed Commercial 2170 ***billed Exempt 1298 ***billed 17072 * The fee structure approved in 2018 only billed residential customers already receiving a bill under the previous fee system. **Urban Residential parcels did not get direct bill. Collected thru mill rate. This amount should be trf'd from Urban tax collections to the street lighting fund. ***All Commercial and Exempt parcels were billed Hephzibah and Blythe parcels were excluded from all billing No Bill Issued Finance Committee Meeting 3/26/2019 1:15 PM Discussion of Street Light Fees Department:Administrator Presenter:Janice Allen Jackson Caption:Discussion of the street lighting fee structure approved in 2018, revenue generated, and fees which would generate varying amounts of total revenue to meet current needs and to expand the level of service. Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Finance. Law. Administrator. Clerk of Commission Finance Committee Meeting 3/26/2019 1:15 PM Market update from Financial Advisor Department:Finance Presenter:Timothy Schroer, Deputy Finance Director Caption:Presentation to the commission providing an update regarding current market conditions, Augusta's Bond Rating, debt capacity, and trends in the economy that may influence the bond market. Background:Davenport & Company has been retained as Augusta's Financial Advisor starting in 2016 and has presented periodic updates to the commission. Projects that Davenport has served as financial advisor include: SPLOST 7 Bonds Bonds for the construction of the Parking Decks at the Georgia Cyber Center Foundry Project - pro forma evaluation and bond issuance Water & Sewer Bonds series 2017 - Refinancing of 2007 series bonds Analysis:The presentation will be an review that is not tied to a specific bond offering. This allows Davenport to present a global picture of the Augusta's presence in the bond markets and current market trends. Financial Impact:n/a Alternatives:n/a Recommendation:receive as information Funds are Available in the n/a Following Accounts: REVIEWED AND APPROVED BY: Finance. Law. Administrator. Clerk of Commission Finance Committee Meeting Commission Chamber '311212019 ATTENDANCE: Present: Hons. Fennoy, Chairman; D. Williams, Vice Chairman; M. Williams and Frantom, members. Absent: Hon. Hardie Davis, Jr., Mayor. FINANCE 1. Approve proposed calendar for SPLOST 8.Item Action: Approved Motions Motion Type Approve 2. Motion to 26,2019. Motion Text Motion to Commisioner Sean Commissioner approve. Frantom William Fennoy Passes approve the minutes of the Finance Committee held on February Item Action: Approved Motions f#:"' ln;T"" Made Bv seconded Bv ^ Motion to Commisioner Sean CommissionerAoDrove/ rvvrvYv approve. Frantom William Fennoy 3. Request to continue purchase of Augusta POL/EPL Insurance with Premium ltem Quote for 2019 - 2020 POLiEPL coverage to J. Smith Lanier & Co. LLC., Action: current broker, through insurance carrier RSUI for a premium of $58,700. Approved Motions Made By Seconded By Motion Result Motion Result Passes Made By Seconded By Motion Type Approve Motion Text Motion to approve. Motion Result PassesCommisioner Sean Commissioner Frantom William Fennoy www.augustaqa.qov Finance Committee Meeting 3/26/2019 1:15 PM Minutes Department: Presenter: Caption:Motion to approve the minutes of the Finance Committee held on March 12, 2019. Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Finance Committee Meeting 3/26/2019 1:15 PM Preliminary 4th Quarter 2018 Financial Report Department:Finance Presenter:Donna Williams, Finance Director Caption:Present the financial report of the twelve month period ended December 31, 2018. Background:Periodic financial reports are presented to keep the commission apprised of the financial status of the organization. Analysis:The presented reports are the preliminary results of the year ended December 31, 2018. Per GASB standards, Augusta is required to hold open its books for 60 days after year end so that receivables and payables may be accurately recorded. Staff is in the process of final reviews and adjustments in preparation for the annual financial audit. The results of the 2018 audit, which will be presented in July, will have variance from the reports being presented due to timing differences and adjustments made during the final audit preparation review. The reports focus on operations for the following funds: General Fund (including law enforcement) Urban Service Fund Fire Protection Water & Sewerage Garbage Collection Augusta Regional Airport Stormwater Utility Financial Impact: Alternatives: Recommendation:receive as information Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Finance. Law. Administrator. Clerk of Commission