The URL can be used to link to this page

Home My WebLink AboutMinutes - Finance Committee - 03/16/2015 -r r Ce Finance Administration0215NMason2FloorF’r •L L Fort CoWns CO 80522 970.221.6788 970.221.6782 fax fcgov corn Council Audit &Finance Committee Minutes 03/16/15 10:00 am to 12:00 Noon CIC Room Council Attendees:Ross Cunniff,Mayor Karen Weitkunat Staff:Darin Atteberry,Mike Beckstead,Lori Clements,Carrie Daggett,John Duvall,Kevin Gertig,Tauny Gilmore,Harold Hall,Jeff Mihelich,Lisa Rosintoski,Lance Smith,John Voss Others:Dale Adamy,Ann Hutchinson Approval of Minutes Ross Cunniff made a motion to approve the February 9,2015 Counci Finance omm ee minutes.Mayor Weitkunat made a second to the motion.The minutes were approved unanimously. Utility Billing Transparency Lisa Rosintoski presented the Utility Bill Transparency Project.Resolution 2014-095 directed staff to explore ways to improve the transparency of utility costs to customers.Billing transparency is focused on all tour utilities -Light &Power,Water,Wastewater and Stormwater.Lisa provided a breakdown of utility costs that illustrate capital improvements,operations,customer service &administration,debt service,purchase power, and pilots for each Utility. A survey of 1,001 utility customers and several focus group meetings indicated moderate interest ot customers to better understand utilities costs included within rates and in what medium citizens would most like to see this additional cost information.Based on the survey and focus group results,staff recommended providing citizens additional cost information using various mediums: 1.City web site —pie charts for each utility that illustrates the percent of each utilities costs for purchased power,debt service,PILOTs,Street lights,Renewable &Conservation,Capital,O&M,etc. 2.Text on the front and back of each citizen’s bill with the URL for the web information in #1. 3.Annual bill insert that summarizes in pie charts the cost allocations for each of the four utilities. City ofFortCoLLins Council Finance was supportive of moving forward with implementation of the recommendation.A memo recapping the discussion and direction will be provided to the entire council.Subject to concurrence of the entire Council,staff will begin implementation per the schedule below. The implementation schedule is as follows: 1.Website —June 2015 2.Utility Bill July 2015 3.Newsletters Beginning Third Quarter 2015 4.Bill Insert January 2016 The Council Finance Committee also asked for additional information and discussion on several customer service and energy conservation questions: •Ways we can provide incentives to customers to reduce their usage •Mayor is asking for a conscious effort going forward to improve customer on-line electronic services and reduce hard copy paper billing.Possibly offering an incentive (one-time credit)for customers to sign up for electronic billing that eliminate paper statements •Ross Cunniff and the Mayor recommend setting a target date for reduction of utility usage (by “X”date a “X”percentage)reduced •City Manager recommends a return to Council Finance Committee with future updates Staff will schedule a follow-up discussion at a later date to review the topics above. Utility Development Investment Fee Lance Smith stated that the City Council passed Resolution 2014 095 directing the City Manager to investigate options for modifying the Utility Development Fees to fund additional types of capital needs.He noted that staff is recommending that changes be made to City Code allowing general plant and building improvements be included in Utility Development Fees.Current City Code language focuses on recovering capital expenses related to specific direct operations and to not include administrative facilities.Lance stated that the City Attorney’s office has researched the legal perspective and has determined that such change is permissible. Lance continued,noting that PlFs (Plant Investment Fee)are the mechanism by which new customers pay for existing infrastructure and provide service to growth.He noted that PlFs are evaluated annually and are approved by City Council. The Council Finance Committee and staff provided the following feedback: •What is the impact potential loss revenue if delayed should we wait •Mayor recommends that information needs to include public outreach and information to City Boards and Commissions •Ross Cunniff suggests outreach processes are done prior to the next rate adjustments/increases late October early November 2 City ofFortCoLLins Requesting a memo to newly elected City Council recapping today’s discussion Staff will move forward with public outreach and will bring forward changes to the code and adjustments to PIF during the next rate adjustment/increase discussion in October or November. Annual Reappropriation Ordinance Mike Beckstead addressed the Council Finance Committee reviewing the 2015 Reappropriation Ordinance which appropriates prior year reserves. Mike provided an executive summary and listed monies reappropriated for each City fund as follows: General Fund $1,197,690 Golf Fund 40,000 Keep Fort Collins Great Fund 772,000 Light &Power Fund 18,000 Transportation Fund 28,000 $2,055,690 Mike asked the Council Finance Committee fortheir support to move forward with the 2015 Reappropriation Ordinance in April.The Mayor and Ross Cunniff had no comments or questions at this time.Mike stated he would provide a memo to City Council and the first reading is anticipated for April 21,2015. 2014 Investment Returns &Investment Policy Harold Hall presented to the Council Finance Committee the City Investment Policy and 2014 Investment Return Review.The review includes: •Investment objectives •Legal investments •City investment policy &summary of investments •Federal Reserve policy &interest rate environment •2014 investment returns Harold noted that the investment policy did not change in 2014.He stated that the current policy has been in place since December 2012. Harold identified the City of Fort Collins investment objectives in order of importance: 1.Legal conformance 2.Safety 3.Liquidity 4.Return on investment C F~t°bo[L ins Harold stated that investment returns bottomed in year 2013,however noting that rates do increase as the federal government normalizes monetary policy.He noted the potential increase in interest rates is anticipated during the 2~half of 2015 but is still an unknown despite much speculation by Wall Street economists. Harold identified a list of bonds a total of 108 current investments in the portfolio at year end 2014. Ross Cunniff requested a memo to City Council to include a list of any oil and gas related investments (including energy)that the City has. Meeting Adjourned