The URL can be used to link to this page

Home My WebLink AboutAudit Committee-Minutes-1/17/2017City of Colleyville Page 1 City of Colleyville Audit Committee Agenda City Hall 100 Main Street Colleyville, Texas 76034 817.503.1000 www.colleyville.com Tuesday, January 17, 2017 4:30 p.m. City Manager’s Conference Room Third Floor – City Hall 1.CALL TO ORDER 2. APPROVAL OF MINUTES November 15, 2016 3. PRESENTATION AND DISCUSSION 3a Discussion of the draft Fiscal Year 2016 (FY16) Audit and SAS 114 Letter 3b Presentation of the Quarterly Investment Report for the quarter ended December 31, 2016 4.ADJOURNMENT I hereby certify this agenda was posted on City Hall bulletin boards Friday, January 13, 2017, by 5:00 p.m. Amy Shelley, TRMC City Secretary A quorum of the Colleyville City Council and/or any other Colleyville Board, Commission, or Committee may be in attendance at this meeting. Any matter on this agenda may, at the discretion of the governing body, be opened for public comment and discussion. If you plan to attend this public meeting and have a disability that requires special accommodations, please advise Executive Secretary at least 48 hours in advance at 817.503.1111, and reasonable accommodations will be made to assist you. City of Colleyville Page 1 City of Colleyville Audit Committee MINUTES City Hall 100 Main Street Colleyville, Texas 76034 817.503.1000 www.colleyville.com Tuesday, January 17, 2017 4:30 p.m. City Manager’s Conference Room 3rd Floor – City Hall Chief Financial Officer Brian Hogan called the Audit Committee to order on January 17, 2017, at 4:30 p.m. ROLL CALL: Committee members Nancy Coplen, Tammy Nakamura, Bobby Lindamood, and Susan Mathisen were present. City Manager Jennifer Fadden, Deputy City Manager Chris Fuller, Chief Financial Officer Brian Hogan, Accounting Manager Karen Hines, and City Secretary Amy Shelley were also present. 2. APPROVAL OF MINUTES November 15, 2016 Chief Financial Officer Brian Hogan provided a correction to the November 15, 2016, meeting minutes for Item 3b, the banks listed for Committee member Lindamood’s question should be referenced as Worthington Bank and North Star Bank. Committee member Nakamura made a motion to approve the November 15, 2016, meeting minutes. Committee member Coplen seconded. All approved by acclamation. 3. PRESENTATION AND DISCUSSION 3a Discussion of the draft Fiscal Year 2016 (FY16) Audit and SAS 114 Letter John Manning, Pattillo, Brown and Hill, L.L.P., presented the audit and SAS 114 Letter. Committee member Mathisen asked Mr. Manning about the debt service fund on page 37, $2.4 million. Mr. Manning explained that $2.4 million is the TIF part of the uncollected property tax revenue, and the other part is the TIF refunding, and the General Obligation Bonds were issued to pay for part of TIF debt. We refunded $2.4 million of the TIRZ General Obligation bonds and replaced it with $2.4 General Obligation bonds that were recorded on the City’s ledger. The $2.4 million is a “deferred inflow” which means the City will be paid at some point in the future – basically instead of making a bond payment, they will pay the City, and the City will use that to offset their portion of the debt payment each year. Audit Committee Minutes January 17, 2017 City of Colleyville Page 2 Committee member Mathisen asked Mr. Manning who is “they”. Mr. Manning replied the TIF members. Committee member Nakamura asked Mr. Manning about the line item overages. Mr. Manning explained the property tax revenues and permits are over what is estimated. Chief Financial Officer Brian Hogan added the property taxes are not budgeted 100 percent, only on what people have been paying; and we also get money from prior years. Committee member Coplen asked staff about the percentage. Chief Financial Officer Brian Hogan replied about 90 percent. City Manager Jennifer Fadden stated it is mostly sales tax that came in over budget. Committee member Nakamura asked staff what is usually left. Chief Financial Officer Brian Hogan replied currently a little over 99 percent. Committee member Mathisen asked staff if the $609,000, is mostly sales tax. City Manager Jennifer Fadden replied yes, and sales tax is budgeted. Committee member Mathisen asked Mr. Manning how close to reality is the 5.75 percent interest rate assumption. Mr. Manning replied what was being done before was extremely unrealistic; however, long term interest rates are not going to be doing a lot, and when you scale back the change in assumption, taking all to a deferred outflow and amortize that over five years, with a result of five years of different scenarios. Committee member Mathisen asked Mr. Manning if there may be further decreases in the rate of return. Mr. Manning replied possibly, which are 100% out of anyone’s control. Committee member Coplen asked staff what was the population in 2009. Chief Financial Officer Brian Hogan replied 22,550. Committee member Mathisen asked staff about the $876,000 transfer from the Utility Fund. Chief Financial Officer Brian Hogan replied it was for the general, administrative, and franchise fees. Committee member Lindamood asked staff if they are happy with what is being presented. Chief Financial Officer Brian Hogan replied yes. Committee member Lindamood asked staff if they see any discrepancies or future concerns, or anything requiring a change. Chief Financial Officer Brian Hogan replied staff is looking at the monthly financial report to see that we are trending with expenditures to come in or under budget. Audit Committee Minutes January 17, 2017 City of Colleyville Page 3 Committee member Mathisen asked staff if there is anything that concerns him in the financial statements or any policy that might have been adopted that would negatively affect the bond rating. Chief Financial Officer Brian Hogan replied they will have to look at the water rates, but with the financial report, they can only comment on what took place through September 30th. He said the only concern he had was that the tax and water rates were a change from the way we have operated in the past. Staff and City Council will need to monitor and adjust as needed in the future to make sure we are addressing areas the rating agencies would scrutinize during future surveillance calls, but as of the date of the CAFR report he did not have any concerns. 3b Presentation of the Quarterly Investment Report for the quarter ended December 31, 2016 Chief Financial Officer Brian Hogan presented the quarterly investment report for the quarter ended December 31, 2016. Chief Financial Officer Brian Hogan explained the next Audit Committee meeting will be May 2, 2017. 4. ADJOURNMENT APPROVED BY A VOTE OF 3 AYES, 0 NAYS, AND 0 ABSTENTIONS ON THIS THE 16TH DAY OF MAY 2017. Minutes taken and prepared by: Amy Shelley, TRMC City Secretary