Audit and Finance Committee

REGULAR MEETING OF THE AUDIT AND FINANCE COMMITTEE DATE: MONDAY, July 20, 2020 – 5:30 p.m. to 7:00 p.m. Via ZOOM invite from Larry Perney AGENDA 1. Call to Order: 2. Roll Call and Statement of Quorum 3. Establishment of Order of Items on the Agenda A. Approval of the April 20, 2020 Minutes B. 2019 Audit Report – (HAND DELIVERED) a. Mollie Malone, Partner, Stopp & Vanhoy will have a short power point presentation. b. Discussion of Fixed Asset policy and thresholds C. Review Six Month Financial Report through 6-30-2020 D. Investment Holding Report E. Future meetings 4. Adjournment City of Manchester 2019 CAFR Presentation • Unmodified audit opinion – financial statements are fairly stated • Introductory section, management discussion and analysis, and statistical section are prepared by management and are unaudited • City has prepared a Comprehensive Annual Financial Report (CAFR) which presents financial trends, revenue capacity, debt capacity, demographic and economic information, and operating information for the current year and nine years prior • No major changes in Generally Accepted Accounting Principles (GAAP) that were applicable to the City • Reduction of Tax Increment Financing Bonds due by approximately $9.8 million • Decrease in General Obligation Bonds by $625,000 • Sales tax revenue increased by approximately $1.2 million • Positive Net Position in Gov. Wide Statements • Unrestricted cash position increased approximately $2.7 million with largest increases in capital projects cash ($763,000) and parks and storm water projects ($1.8 million) • Restricted investments decreased approximately $8.9 million due liquidation of TIF debt reserves and use of Prop S debt service proceeds for Prop S program Sales Tax Revenue – Last Ten Years Sales Tax 18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 Revenue 8,000,000 6,000,000 Sales Tax 4,000,000 2,000,000 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Year  Sales Tax Revenue by Fund – Last Five Years 8,000,000 7,000,000 6,000,000 5,000,000 General Revenue 4,000,000 TIF 3,000,000 Capital 2,000,000 Park 1,000,000 0 2015 2016 2017 2018 2019 Year Property Tax Revenue – Last Ten Years Property Tax 3,500,000 3,000,000 2,500,000 2,000,000 Revenue 1,500,000 Property Tax 1,000,000 500,000 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Year Government-Wide Expenses – Last Ten Years Expenses 70,000,000 60,000,000 50,000,000 40,000,000 Expenses 30,000,000 Expenses 20,000,000 10,000,000 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Year  GO Bonds 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 Debt 5,000,000 4,000,000 Bonds 3,000,000 2,000,000 1,000,000 0 2015 2016 2017 2018 2019 Year  TIF Bonds 50,000,000 45,000,000 40,000,000 35,000,000 30,000,000 Debt 25,000,000 20,000,000 Bonds 15,000,000 10,000,000 5,000,000 0 2015 2016 2017 2018 2019 Year • Recording of delinquent property tax receivable as confirmed by the St. Louis County Collector’s office • Other closing adjustments, as needed, for investments, prepaid expenses, accounts payable, fixed assets, long-term debt, and other accounts to convert records to the different basis of accounting used for government reporting • Implementation of reconciling and closing procedures • Expenditures in excess of budget in Prop S Capital Improvement Fund B-b City of Manchester Capital Asset Thresholds Current and Proposed 7/20/2020 Effective January 1 , 2020 Current Proposed City of City of Capitalized and Depreciated Thresholds Manchester Manchester Land $1 – Capitalize Only Same Same Land Improvements 2,000 10,000 Buildings 2,000 25,000 Building Improvements 2,000 25,000 Machinery & Equipment 2,000 5,000 Infrastructure 50,000 50,000 Construction in Progress - Capitalize Only Same Same City Of Manchester Investment Holdings at 07/15/2020 By Maturity Purchase Maturity Month/Ye Maturities/ Balance Fund Description Type CUSIP # Date Date ar ROR Purchases Adds 07/01/2020 Prop S Bond Proceeds Coastal State Bank CD 19057WCG4 04/20/20 07/20/20 Jul-20 0.800% 200,000.00 200,000.00 Prop S Bond Proceeds TCF National Bank CD 87227RPS7 04/22/20 07/22/20 Jul-20 0.800% 200,000.00 200,000.00 Prop S Bond Proceeds Bank Unitied NA CD 066519MW6 04/22/20 07/22/20 Jul-20 0.800% 200,000.00 200,000.00 Prop S Bond Proceeds First Financial Bank CD 32021SHF6 04/24/20 07/24/20 Jul-20 0.850% 200,000.00 200,000.00 Prop S Bond Proceeds US T Bill US T Bill 912796XF1 05/27/20 08/20/20 Aug-20 0.084% 400,000.00 400,000.00 Prop S Bond Proceeds US T Bill US T Bill 9127963Y3 05/27/20 09/15/20 Sep-20 0.096% 600,000.00 600,000.00 Prop S Bond Proceeds Kennebuc Savings Bank CD 489265BX5 06/24/20 09/24/20 Sep-20 0.150% 249,000.00 249,000.00 Prop S Bond Proceeds State Bank of India CD 856285TV3 06/29/20 09/29/20 Sep-20 0.150% 249,000.00 249,000.00 Prop S Bond Proceeds Bank of China/NY CD 06428FRX7 06/30/20 09/30/20 Sep-20 0.200% 249,000.00 249,000.00 Prop S Bond Proceeds Bank of India NY CD 06279KK70 04/09/20 10/07/20 Oct-20 1.100% 150,000.00 150,000.00 General Fund Bank of America CD 06051VM45 10/09/19 10/08/20 Oct-20 1.800% 200,000.00 200,000.00 Prop S Bond Proceeds US T Bill US T Bill 9127964J5 05/27/20 10/20/20 Oct-20 0.101% 400,000.00 400,000.00 Prop S Bond Proceeds US T Bill US T Bill 912796TY5 07/01/20 12/31/20 Dec-20 0.140% 3,000,000.00 3,000,000.00 General Fund PlainsCapital Bank CD 72663QE96 05/28/20 03/01/21 Mar-21 0.200% 200,000.00 200,000.00 Prop S Bond Proceeds FHLB FHLB 3130AJSG5 07/01/20 03/26/21 Mar-21 0.165% 2,200,000.00 2,200,000.00 General Fund Fifth Third Bank CD 316777XG1 04/16/20 04/16/21 Apr-21 1.150% 247,000.00 247,000.00 General Fund State Bank of India CD 856285TD 3 04/21/20 04/21/21 Apr-21 1.200% 247,000.00 247,000.00 General Fund Reserve Fannie Mae Fannie Mae Call 3136G02F7 06/30/16 05/07/21 May-21 1.600% 300,000.00 300,000.00 General Fund Reserve Morgan Stanley CD 61690UVU1 04/02/20 10/04/21 Oct-21 1.250% 150,000.00 150,000.00 General Fund Reserve Enerbank CD 29278TNH9 03/13/20 03/14/22 Mar-22 0.950% 249,000.00 249,000.00 General Fund Reserve Discover Bank CD 254673ZY5 04/02/20 04/04/22 Apr-22 1.250% 150,000.00 150,000.00 Prop S Bond Proceeds Fed Farm Credit Bank Fed Farm Credit Bank 3133ELH64 07/01/20 06/09/22 Jun-22 0.165% 2,200,000.00 2,200,000.00 General Fund Reserve Luana Savings Bank CD 549104PD3 03/13/20 09/13/22 Sep-22 1.450% 248,000.00 248,000.00 General Fund Enterprise Bank & Trust Enterprise Bank & Trust N/A $208,563.48 208,563.48 $209.20 208,772.68 TIF Fund UMB Govt Security Money Market 2,117,671.00 12,696,563.48 209.20 14,814,443.68 H:\Finance Shared Docs\Dyucuis-DTuberty Files\Commerce Bank\Investments\Investment Report\Investments 01 01 2020 to current-1.xlsx/ Investment Holdings City Of Manchester Investment Holdings at 07/15/2020 BY FUND Purchase Maturity Month/Ye Maturities/ Balance Fund Description Type CUSIP # Date Date ar ROR Purchases Adds 07/15/2020 General Fund Bank of America CD 06051VM45 10/09/19 10/08/20 Oct-20 1.800% 200,000.00 200,000.00 General Fund PlainsCapital Bank CD 72663QE96 05/28/20 03/01/21 Mar-21 0.200% 200,000.00 200,000.00 General Fund Fifth Third Bank CD 316777XG1 04/16/20 04/16/21 Apr-21 1.150% 247,000.00 247,000.00 General Fund State Bank of India CD 856285TD 3 04/21/20 04/21/21 Apr-21 1.200% 247,000.00 247,000.00 General Fund Enterprise Bank & Trust Enterprise Bank & Trust N/A $208,563.48 208,563.48 $209.20 208,772.68 General Fund Total 1,102,772.68 General Fund Reserve Fannie Mae Fannie Mae Call 3136G02F7 06/30/16 05/07/21 May-21 1.600% 300,000.00 300,000.00 General Fund Reserve Morgan Stanley CD 61690UVU1 04/02/20 10/04/21 Oct-21 1.250% 150,000.00 150,000.00 General Fund Reserve Enerbank CD 29278TNH9 03/13/20 03/14/22 Mar-22 0.950% 249,000.00 249,000.00 General Fund Reserve Discover Bank CD 254673ZY5 04/02/20 04/04/22 Apr-22 1.250% 150,000.00 150,000.00 General Fund Reserve Luana Savings Bank CD 549104PD3 03/13/20 09/13/22 Sep-22 1.450% 248,000.00 248,000.00 General Fund Reserve Total 1,097,000.00 Prop S Bond Proceeds Coastal State Bank CD 19057WCG4 04/20/20 07/20/20 Jul-20 0.800% 200,000.00 200,000.00 Prop S Bond Proceeds TCF National Bank CD 87227RPS7 04/22/20 07/22/20 Jul-20 0.800% 200,000.00 200,000.00 Prop S Bond Proceeds Bank Unitied NA CD 066519MW6 04/22/20 07/22/20 Jul-20 0.800% 200,000.00 200,000.00 Prop S Bond Proceeds First Financial Bank CD 32021SHF6 04/24/20 07/24/20 Jul-20 0.850% 200,000.00 200,000.00 Prop S Bond Proceeds US T Bill US T Bill 912796XF1 05/27/20 08/20/20 Aug-20 0.084% 400,000.00 400,000.00 Prop S Bond Proceeds US T Bill US T Bill 9127963Y3 05/27/20 09/15/20 Sep-20 0.096% 600,000.00 600,000.00 Prop S Bond Proceeds Kennebuc Savings Bank CD 489265BX5 06/24/20 09/24/20 Sep-20 0.150% 249,000.00 249,000.00 Prop S Bond Proceeds State Bank of India CD 856285TV3 06/29/20 09/29/20 Sep-20 0.150% 249,000.00 249,000.00 Prop S Bond Proceeds Bank of China/NY CD 06428FRX7 06/30/20 09/30/20 Sep-20 0.200% 249,000.00 249,000.00 Prop S Bond Proceeds Bank of India NY CD 06279KK70 04/09/20 10/07/20 Oct-20 1.100% 150,000.00 150,000.00 Prop S Bond Proceeds US T Bill US T Bill 9127964J5 05/27/20 10/20/20 Oct-20 0.101% 400,000.00 400,000.00 Prop S Bond Proceeds US T Bill US T Bill 912796TY5 07/01/20 12/31/20 Dec-20 0.140% 3,000,000.00 3,000,000.00 Prop S Bond Proceeds FHLB FHLB 3130AJSG5 07/01/20 03/26/21 Mar-21 0.165% 2,200,000.00 2,200,000.00 Prop S Bond Proceeds Fed Farm Credit Bank Fed Farm Credit Bank 3133ELH64 07/01/20 06/09/22 Jun-22 0.165% 2,200,000.00 2,200,000.00 Prop S Bond Proceeds Total 10,497,000.00 TIF Fund UMB Govt Security Money Market 2,117,671.00 TIF Fund Total 2,117,671.00 Grand Total 14,814,443.68 H:\Finance Shared Docs\Dyucuis-DTuberty Files\Commerce Bank\Investments\Investment Report\Investments 01 01 2020 to current-1.xlsx/ Investment Holdings July 20, 2020 3 F - Future Audit & Finance Committee meetings. November 2, 2020 Nine Month Financial Report ending September 30, 2020 If I am not allowed to travel for a planned vacation due to COVID the meeting date will be October 19, 2020 As we develop the 2021 Budget Calendar, information will be added to an existing or new Audit & Finance Committee meeting.