Finance Committee

CITY OF HENDERSONVILLE FINANCE COMMITTEE February 21st, 2023, at 6:00 p.m. 101 Maple Drive North, Hendersonville, TN 37075 I. Call to Order by the Chairman II. Acceptance of agenda III. Minutes A. Approval of January 24, 2023, meeting minutes 2-3 IV. Ordinances and Resolutions V. Other Agenda Items 1. Sales Tax Update 4 2. Hotel/Motel Tax Update 5 3. Creating a Fund for Hotel/Motel Activity (verbal update) 4. Creating a Fund for Equipment Purchases (verbal update) 5. Establishing Criteria for Budget Amendments Outside of the Mid-Year Budget Amendment (verbal update) 6. Finance Director Recruitment (verbal update) 7. Salary Study (verbal update) 8. Investment Policy Update (verbal update) 9. Appoint a Vice-chair 10. Other Business VI. Adjournment Anyone needing accommodations due to disabilities, please contact the ADA Coordinator at 615-822-1016 at least 24 hours prior to the meeting. 1  FINANCE COMMITTEE MEETING January 24, 2023 CONFERENCE ROOM 2 @ 6:00 pm Present: Karen Dixon, Janna Garton, Jeffrey Sasse Absent: None Others Present: Mayor Jamie Clary, Jesse Eckenroth, Andy Gilley, Chief Scotty Bush, Tamara Ingersoll, Julie Evans (Kraft CPAs) and Ken Youngstead (Kraft CPAs) Called to order at 6:00 pm Motion to Approve the October 25th, 2022, Finance Committee meeting minutes Motion: Janna Garton Second: Karen Dixon Vote: Unanimous Approval 3-0 Motion to Approve the November 29th, 2022, Finance Committee meeting minutes Motion: Janna Garton Second: Karen Dixon Vote: Unanimous Approval 3-0 Ordinances Motion to recommend approval of Ordinance 2023-03, an ordinance amending Ordinance 2022-11 to reflect mid-year adjustments to the city’s 2023 Fiscal Year Budget. Motion: Karen Dixon Second: Janna Garton Vote: Unanimous Approval 3-0 Discussion: The Chief of Operations, Jesse Eckenroth, led the discussion summarizing the proposed budget amendment. This mid year budget adjustment puts the City in a better financial position than at the beginning if the fiscal year. The largest increase in revenue was due to increase in Sales Tax of roughly $3,000,000. Ordinance to BOMA after budget workshop to be held on February 6, 2023. Resolutions Motion to add Resolution 2023-04, a Resolution to adopt an investment policy for the City of Hendersonville 2 Motion: Janna Garton Second: Karen Dixon Vote: Unanimous Approval 3-0 Discussion: The Chief of Operations, Jesse Eckenroth, led the discussion explain that now that the City has built a fund balance, excess cash should be invested in a manner to earn funds for the City. Returns are minimum in the City’s bank account and other options to earn returns on funds are favorable. Resolution to BOMA after feedback from MTAS is received. Other Business Receive and File 2022 Annual Comprehensive Financial Report – Ken Youngstead and Julie Evans from Kraft CPAs presented the audit. They highlighted the major items reviewed as part of the audit and reported no findings. Sales Tax Analysis – Sales tax for the month of October 2023 totaled $1,597,689. This represents a $159,782 increase compared to October 2022. Sales tax for the month of November 2023 totaled $1,647,602. This represents a $145,7192 increase compared to November 2022. Hotel & Motel Tax Analysis – Tax collections for the month of October 2023 totaled $11,940.30. This represents a $20,850.94 decrease compared to October 2022. Tax collections for the month of November 2023 totaled $26,191.48. This represents a $1,482.71 decrease compared to November 2022. As of 1/24/23, tax collections for the month of December 2023 totaled $50,339.24. This represents a $26,691.08 increase compared to December 2022. Motion to Adjourn Motion: Janna Garton Second: Karen Dixon Vote: Unanimous Adjourned 6:37 pm ______________________________ Karen Dixon, Chairwoman 3  2/15/2023 CITY OF HENDERSONVILLE LOCAL SALES TAX ANALYSIS (FOR SALES 1 $$ Change Cumulative YTD % $$ Change Cumulative YTD % FY 2021 FY 2022 FY 2023 MONTHS PRIOR) FY21 & FY22 Change Change FY22 & FY23 Change Change JULY 1,367,966 1,540,840 356,964 356,964 11.22% 1,726,191 185,351 185,351 12.03% AUGUST 1,251,904 1,506,329 323,932 680,896 14.02% 1,675,355 169,025 354,376 11.63% SEPTEMBER 1,226,460 1,410,188 289,811 970,707 13.71% 1,494,685 84,496 438,873 9.85% OCTOBER 1,288,327 1,437,906 311,863 1,282,571 12.90% 1,597,689 159,782 598,655 10.15% NOVEMBER 1,296,686 1,501,883 387,767 1,670,338 13.06% 1,647,602 145,719 744,374 10.06% DECEMBER 1,316,420 1,571,875 393,453 2,063,791 13.62% 1,651,544 79,669 824,043 9.19% JANUARY 1,788,382 1,905,134 382,490 2,446,281 12.30% FEBRUARY 1,286,418 1,346,476 329,603 2,775,883 11.44% MARCH 1,084,293 1,334,012 339,385 3,115,268 12.16% APRIL 1,536,651 1,645,097 517,765 3,633,033 11.55% MAY 1,525,736 1,629,580 560,022 4,193,055 11.05% JUNE 1,520,637 1,697,288 510,072 4,703,126 10.99% _________ _________ _________ _________ _________ TOTAL 16,489,880 18,526,609 4,703,126 9,793,065 824,043 ========= ========= ========= ========= ========= Budgeted 12,000,000 15,250,000 17,732,500 (Shortfall)/Excess 4,489,880 3,276,609 2,338,945 Projected $ over budgeted % of Budget 137.42% 121.49% 113.19% Projected % over budgeted 4  Hotel-Motel Occupancy Tax - 2.75% Revenues as of 02/15/2023 *** 1 Month in arrears. FY21 FY22 FY23 DIFF Beginning Balance $ 62,966.67 $ 81,931.18 $ 232,307.20 FY21-FY22 FY22-FY23 JULY $ 20,199.79 $ 39,701.66 $ 39,708.57 19,501.87 6.91 AUGUST $ 16,131.14 $ 31,317.82 $ 28,813.78 15,186.68 (2,504.04) SEPTEMBER $ 15,093.97 $ 17,024.82 $ 32,673.00 1,930.85 15,648.18 OCTOBER $ 16,066.13 $ 32,791.24 $ 11,940.30 16,725.11 (20,850.94) NOVEMBER $ 11,049.38 $ 27,674.19 $ 26,191.48 16,624.81 (1,482.71) DECEMBER $ 15,610.13 $ 23,648.16 $ 58,084.40 8,038.03 34,436.24 JANUARY $ 8,722.09 $ 17,305.25 $ 4,232.24 8,583.16 (13,073.01) FEBRUARY $ 13,426.70 $ 20,900.54 7,473.84 - MARCH $ 16,980.95 $ 31,629.53 14,648.58 - APRIL $ 15,680.89 $ 34,911.70 19,230.81 - MAY $ 34,281.70 $ 33,762.54 (519.16) - JUNE $ 28,221.64 $ 39,708.57 11,486.93 - Running Balance $ 274,431.18 $ 432,307.20 $ 433,950.97 138,911.51 12,180.63 $ ADD: PROJ. CY REVENUE COLLECTIONS - $ - $ 148,756.23 LESS: EXPENDITURES YTD $ 192,500.00 $ 200,000.00 $ 340,000.00 LESS: APPROPRIATED YET UNSPENT $ - $ - $ - ENDING BALANCE $ 81,931.18 $ 232,307.20 $ 242,707.20 5