MINUTES
MALIBU ADMINISTRATION & FINANCE SUBCOMMITTEE
SPECIAL MEETING
NOVEMBER 30, 2022
TELECONFERENCED - VARIOUS LOCATIONS
2:00 P.M.
The following meeting was held pursuant to AB 361 and fully teleconferenced from various locations during the coronavirus disease (COVID-19) pandemic.
CALL TO ORDER
Councilmember Pierson called the meeting to order at 2:00 p.m.
ROLL CALL
The following persons were recorded in attendance:
PRESENT: Councilmember Mikke Pierson and Councilmember Steve Uhring ALSO PRESENT: City Manager Steve McClary; Assistant City Manager Joseph Toney; Elizabeth Shavelson, Deputy City Manager; Renée Neermann, Finance Manager; Media Technician Parker Davis; and Executive Assistant Mary Linden
APPROVAL OF AGENDA
MOTION Councilmember Ubring moved, and Councilmember Pierson seconded a motion to approve the agenda. The question was called, and the motion carried unanimously.
REPORT ON POSTING OF AGENDA
Executive Assistant Linden reported that the agenda for the meeting was properly posted on November 29, 2022.
ITEM 1 PRESENTATIONS
None.
ITEM 2 OLD BUSINESS
None.
ITEM 3 NEW BUSINESS
A. Approval of Minutes — November 16, 2022
Recommended action: Approve the minutes for the Administration and Finance Subcommittee Special meeting of November 16, 2022.
Malibu Administration and Finance Subcommittee
Special Meeting
Minutes ofNovember 30, 2022
MOTION Councilmember Uhring moved, and Councilmember Pierson seconded a motion to approve the minutes for the Administration and Finance Subcommittee Special meeting of November 16, 2022. The question was called, and the motion carried unanimously.
B. Fiscal Year 2021-2022 Fourth Quarter Financial Report Recommended Action: Review Fiscal Year 2021-2022 Fourth Quarter financial information.
Assistant City Manager Toney thanked the Finance team for their ongoing efforts to keep the City’s financial status in order and for their assistance in compiling the financial reports. He presented the report and highlighted accounts with significant numbers related to the budget.
In response to Councilmember Uhring, City Manager McClary stated Public Safety Director Dueflas and Lieutenant Chad Watters found savings for the City related to the Beach Team.
Assistant City Manager Toney stated the budget ended in a great position with an extremely healthy reserve balance as of the end of Fiscal Year 202 1-2022.
Councilmember Uhring asked if the number of short-term rentals had increased.
Assistant City Manager Toney stated he would look into that but expected there was some increase as the pandemic restrictions eased.
Councilmember Pierson stated the number of short-term rentals had not increased as much as he had expected. He stated the transient occupancy tax (TOT) increase was working out well. He stated the upcoming increase in sales tax would be beneficial. He noted the significant decrease in salaries.
Councilmember Uhring and Councilmember Pierson commended staff for an excellent report.
Councilmember Pierson stated the Finance team had always been solid. He stated it made a big difference.
Councilmember Uhring commended Finance Manager Neermann and her team.
C. Fiscal Year 2022-2023 First Quarter Financial Report Recommended Action: Review Fiscal Year 2022-2023 First Quarter financial information.
Assistant City Manager Toney presented the report. He stated there were few modifications so far, as those usually began in the second quarter. He stated he Malibu Administration and Finance Subcommittee
Special Meeting
Minutes ofNovember 30, 2022
expected the major revenues ofproperty tax, sales tax, and TOT to continue strong.
He stated the Transactions and Use Tax (TUT) increase would go into effect on April 1, 2023. He stated the conservative budgeting would continue into the upcoming fiscal year.
Councilmember Uhring discussed the impact of outdoor dining on sales tax revenues. He stated the possible change in that when the pandemic ends should be kept in mind when preparing future budgets.
Doug Stewart, Councilmember-elect, discussed his corporate experience with an emphasis on cash management. He discussed the $83 million in uninvested funds.
He suggested putting cash management tools back in place and reinvesting those funds. He stated projected reserves should be used for one-time expenditures or to pay down City debt.
Councilmember Ubring suggested Mr. Stewart talk with City Treasurer Quinto. He requested an update on the status of the new permitting software. Assistant City Manager Toney stated RFP responses were currently being reviewed.
Councilmember Pierson agreed that Mr. Stewart should talk with City Treasurer Quinto about the City’s positions and options for investment. He agreed with Mr.
Stewart that this might be a good time for certain one-time expenditures. He stated he was pleased revenue from the new sales tax increase would come to the City and not the County.
City Manager McClary discussed recent news that the State was projecting a potential $25 billion deficit in the coming year. He stated staff would watch that closely for potential impacts on the City. He stated City-specific revenues were secure.
ADJOURNMENT
MOTION At 2:30 p.m., adjourn the meeting. The question was called, and the motion carried unanimously.
Approved and adopted by the Administration and Finance
Subcommittee of the City Malibu on February 15, 2022.
STE HRLNG, Councilmember