Finance Committee Meeting

MINUTES OF CITY OF WHARTON FINANCE COMMITTEE MEETING 120 EAST CANEY STREET WHARTON, TEXAS 77488 Monday, April 13, 2020—5: 30 p.m. City Manager Andres Garza, Jr. declared a meeting of the City Council Finance Committee duly open for the transaction of business at 5: 30 p.m. Committee Members present were: Councilmember Russell Machann and Mayor Tim Barker. Committee Member absent was: Councilmember Alice Heard. City Council Member present was: None. Staff members present were: City Manager Andres Garza, Jr., Assistant to the City Manager Brandi Jimenez, Finance Director Joan Andel, City Secretary Paula Favors and Community Development Director Gwyn Teves. Staff member absent was: None. Visitors: Ms. Natalie Frels and Mr. Steve Van Manen of Harrison, Waldrop & Uherek, LLP. Public Comments. There were no public comments. The first item on the agenda was to review and consider Minutes from the meetings held January 27, 2020, February 10, 2020 and March 23, 2020. Councilmember Russell Machann made a motion to approve the minutes as presented. Mayor Tim Barker seconded the motion. All voted in favor. The second item on the agenda was to review and consider City of Wharton Annual Financial Report for Fiscal Year October 1, 2018 to September 30, 2019 by Harrison, Waldrop & Uherek, L.L.P. Mr. Steve Van Marten of Harrison, Waldrop& Uherek, LLP, the City Auditors, presented to the Committee the City of Wharton Annual Financial Report for Fiscal Year October 1, 2018 to September 30, 2019. After some discussion, Councilmember Russell Machann made a motion to recommend to the City Council the approval of the City of Wharton Annual Financial Report for Fiscal Year October 1, 2018 to September 30, 2019. Mayor Barker seconded. All voted in favor. The third item on the agenda was to review and consider COVID- 19 Fiscal Impact on the City of Wharton 2019- 2020 budget. Finance Director Joan Andel presented an update to the Committee regarding the impact the pandemic was having and would have on the City' s current budget. She also stated that sales tax was down 1. 3% and the true test of the fiscal impact would come in May of 2020 when the sales tax numbers for March were received. After some discussion, no action was taken. The fourth item on the agenda was to review and City of Wharton Hotel/Motel Request: 1. Fiscal Impact of 2019-2020 Budget. 2. Request from Mr. Vikas Desai, Manager of Holiday Inn and other hotel owners/mangers dated March 23, 2020. City Manager Andres Garza, Jr. stated that on March 19, 2020 the City Staff and the Mayor met with Mr. Vikas Desai, Manager of Holiday Inn. He stated that in Mr. Desai' s request there were several items the hotels wanted from the City due to the decline in occupancy in hotels. He presented a memorandum from Finance Director Joan Andel regarding the Hotel/ Motel Budget to the Committee. After some discussion Councilmember Russell Machann made a motion to recommend to the City Council to reject the request from Mr. Vikas Desai and to discontinue the lighting downtown and to de- obligate funding from the City of Wharton Hotel/Motel fund budgeted for the Wharton Downtown Business Association due to the shortfall of revenues caused by COVID- 19 ( Coronavirus) pandemic. Mayor Tim Barker seconded the motion. All voted in favor. The fifth item on the agenda was to review and consider: City of Wharton Annual Budget Calendar for fiscal year 2020 — 2021. City Manager Andres Garza, Jr. presented a copy of the proposed City of Wharton Budget Calendar for fiscal year 2020-2021 to the Committee. Finance Director Joan Andel stated there would be( 3) three budget workshops with the City Council planned. After some discussion Councilmember Russell Machann made a motion to recommend to the City Council the approval of the Wharton Annual Budget Calendar for Fiscal Year 2020- 2021. Mayor Tim Barker seconded the motion. All voted in favor. The sixth item on the agenda was to review and consider Resolution: A resolution of the Wharton City Council adopting the City of Wharton Temporary Policy and Procedures: HR 6201 Families First Coronavirus Response Act ( FFCRA) and Emergency Paid Sick Leave ( ESick) Act & Emergency Family and Medical Leave ( EFMLA) Expansion Act and setting an effective date. City Manager Andres Garza, Jr. presented a memorandum from City Secretary Paula Favors regarding HR 6201 Families First Coronavirus Response Act( FFCRA). He stated that the purpose of the proposed policy was to provide guidance and instruction to employees on how to manage time away from work if a leave of absence is needed in accordance with the Emergency Paid Sick Leave Act( ESick) and the Emergency Family and Medical Leave( EFMLA). City Secretary Paula Favors stated that the policy for Emergency Sick Leave (ESick) under this policy was paid at the employee' s regular rate of pay for employees' own illness or quarantine and 2/ 3' s their regular rate of pay for an employee to take care of a family member or child as listed. She stated that the policy would allow for 80 hours of pay for full time employees and up to * 60 hours of paid leave for part time employees at the regular rate of pay, if leave was required. She stated that it was her recommendation to exempt City Staff from the Emergency Family and Medical Leave ( EFMLA) portion of the act since all employees are deemed essential to maintain the continuity of operations of the City and EFMLA could last up to 12 weeks, which could cause an undue hardship on City Departments. After some discussion, Mayor Tim Barker made a motion to recommend to the City Council the approval of the City of Wharton Temporary Policy and Procedures: HR 6201 Families First Coronavirus Response Act ( FFCRA) and Emergency Paid Sick Leave ( ESick) Act & Emergency Family and Medical Leave ( EFMLA) Expansion Act. Councilmember Russell Machann seconded the motion. All voted in favor. The seventh item on the agenda was adjournment. Councilmember Russell Machann moved to adjourn. Councilmember Mayor Tim Barker seconded the motion. All voted in favor. The meeting adjourned at 6: 30 p. m. Andres Garza, Jr., City M