Ad Hoc Committee on Financial Policies

COLUMBUS AD HOC COMMITTEE ON FINANCIAL POLICIES COLUMBUS CITY HALL April 14, 2016 Committee Chairman Thom called the meeting at 6:29 p.m. Roll Call: Thom, Crombie, Melotte, and Royem. Also present: City Administrator Vander Sanden, Finance Director Manley, and Alderman-Elect Andy Traxler. Motion made by Melotte, second by Royem to approve the minutes of March 22, 2016 as amended. Motion carried. Motion made by Melotte, second by Royem to approve the Agenda. Motion carried. New Business The Committee reviewed the process for acting on Reimbursement Resolution as a potential for an upcoming borrowing for the 2017 James Street project. Finance Director Manley reviewed information on the current balances in the Capital Projects Fund and the historical activity relative to the financial preparations for the James Street reconstruction. Since 2012, the City has incrementally budgeted for expenses for the James Street project. Initially it was through the planned TIF #3 repayment (a payback of a General Fund loan to the TIF), and in the past couple of years, funding was budgeted through the general tax levy for expenses ($60,000 in 2015 and $49,100 in 2016). So far, the expenses for James Street have exceeded the budget, due to unknown responsibilities of the City, but also due to some aspects of the project being eventually reimbursed by the State DOT, like the real estate acquisition. Chairman Thom expressed a preference that the reimbursement resolutions should not seek payback of levied tax dollars for the project but other funds expended, which are the TIF payback funds. This amount would total $144,496, with the addition of a small contingency to potentially round it up to $150,000. There was additional support from the Committee for this. The $135,000 identified as reimbursement eligible for the Sewer portion of the project was accepted by the committee. It was clarified that at any point a reimbursement will be sought from the upcoming borrowing for James Street, a separate act by the City Council will be necessary. And, the amounts included in the approved resolution can be amended if further information or expenses become available. Direction to staff was to forward the two reimbursement resolutions, reflecting both the general fund and the sewer amounts for reimbursement, to the next City Council Committee of the Whole meeting on April 19th. Financial policies. The Committee reviewed an revised timeline that can be a starting point for a future policy on the budget process and budget management. Discussion centered around the need for a cluster of financial policies that include a set timeline for budget creation and adoption, the budget line-item policy and the purchasing policy. The Committee will further review this at upcoming meetings. There was more in-depth discussion on how a budget line-item policy would define emergency situations to which line items would go over budget for the year. This needs to be clearly defined for department heads to operate. Finance Director explained the Investment Policy and the Investment Board process. There were questions asked about how and where the City holds funds for security, but also for the best return. The funds are generally placed in CDs with local banks and the Investment Board, comprised of the Mayor, City Administrator and Finance Director, meet when changes are proposed. At the next meeting in May, the Committee intends to continue discussing and refining the budget policies and get further into the investment procedures. In June, the Committee would like to invite Baker Tilly to review the 2015 general fund audit and the 2015 sewer audit. Next scheduled meeting –Thursday, May 12 at 6 pm at City Hall (2nd Ward Room). Motion by Melotte, second by Royem to adjourn at 8:21 pm Respectfully Submitted, Patrick Vander Sanden, Secretary