MINUTES
BUDGET AND PERSONNEL COMMITTEE
SPECIAL Budget Meeting - Thursday, January 12, 2023
12:00 PM
As allowed per Assembly Bill (AB361 ), this meeting was conducted in person and by teleconference
AGENDA ITEM 1, CALL TO ORDER
Budget Committee Chair Mary Ann Carbone called the meeting to order at 12:00 p.m.
AGENDA ITEM 2, ROLL CALL
Members Present: Committee Member Elizabeth Sofer (alternate) Committee Chair Mary Ann Carbone
Staff Present: City Manager Vibeke Norgaard
Finance Specialist Devon Lazzarino (virtual attendance) City Clerk Connie Horca (virtual attendance)
Special Guests: Maira Reed, Clifton Larsen & Allen LLP (formerly Hayashi & Wayland) Mike Nolan, Clifton Larsen & Allen LLP (formerly Hayashi & Wayland) AGENDA ITEM 3, COMMUNICATIONS
12:01 Chair Carbone opened the floor for public comment, and seeing none, closed the floor to public comment.
AGENDA ITEM 4, ORDER OF BUSINESS
4.a Approval of May 26, 2022 Budget/Personnel Committee Meeting Minutes 12:02 P.M. Chair Carbone opened the floor for public comment on regarding the May 26, 2022 Budget/Personnel Committee meeting minutes, and seeing none, closed the floor for public comment.
Motion to approve the May 26, 2022 Budget/Personnel Committee Meeting Minutes was made by Committee Member Sofer, seconded by Committee Chair Carbone. There was consensus of the Budget/Personnel Committee approving the May 26, 2022 minutes.
4.b Consideration and Approval of Audited Financial Statements for Year Ending June 30, 2022
Budget/Personnel Committee SPECIAL Meeting Minutes
01.12.2023
City Manager Norgaard introduced Mike Nolan and Maiar Reid of Clifton, Larsen & Allen LLP and noted that Hayashi and Wayland merged with CLA some time ago.
Mike Nolan presented the fiscal year 2021-22 Financial Statements for the year ending June 30, 2022 for Sand City. He reported that the audit was performed in accordance with auditing standards generally accepted in the United States and the standards applicable to financials audits contained in the Government Auditing Standards issued by the Controller General of the United States. He noted that management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair representation of financial statements. The audit presented is a clean/unmodified opinion and materially correct.
Mr. Nolan provided an overview of the change in fund balances (page 17), explained the financial statements found on page 25, provided a summary of significant accounting ·policies, and supplemental actions.
Maira Reid explained the statement of net position which presents the City's assets and deferred outflows of resources, and liabilities, and deferred inflows of resources, that is reported in three categories. She reported on the changes made to leases as it related to the new GASB 87 rule that was adopted last year that requires management to recognize the term of the lease instead of a cash basis accrual method, and its relevance to reporting of the desalination plant lease payments. She presented the Financial Highlights to include the City's net position, depicting an increase of $2.3 million which was primarily a result of a decrease in overall expenditures of $1,325,000 due to supply chain issues, changes to the City Manager position and retirement of two officers. She reported although the City experienced a decrease of $263,000 in total revenues in fiscal year 2021-2022, it was primarily due to toa decrease of charges for services of $557,000 as a result of the implementation of GASB 87, lease, and investment loss due to poor market performance; however the decrease was offset by an increase in sales and transactions tax revenue of $843,000.
Ms. Reid further explained the TAMC Measure X reporting and non-compliance issues, credit card transactions, the credit card policy requirements of a purchase order for purchases made over $500, and submittal of all receipts for purchases. She further explained the initial adjustments to the books for removal of the TAMC Budget/Personnel Committee SPECIAL Meeting Minutes
01.12.2023
revenue, capital lease of police radios, reclassification of entries to investments & assets, and adjustment to the Covid relief funds.
Committee Chair Carbone received clarification on the Covid relief funds and how it can be allocated per the grant requirements. Finance Specialist Lazzarino reported that the City has until December 2024 to decide how the funds can be allocated.
There was discussion regarding the receipt of the audit, time for its review, and whether its approval would affect reporting due to the State Controller before the end of January 31, 2023.
Committee Chair Carbone mentioned that the committee received the packet several hours prior to the Committee meeting and did not have sufficient time to review, and would like that the Audit be presented to the Council at its February 7, 2023 Council meeting to allow for further review of the financial statements.
Committee Member Sofer motioned that the audit be brought to the Council at its February 7, 2023 Council meeting. Committee Chair Carbone seconded the motion.
Motion approved by consensus of the Budget/Personnel Committee.
Ms. Reid noted that she will provide additional information relevant to the credit card purchase made to the finance department.
Mr. Nolan summarized the presentation that will be made to the City Council at its next meeting and reported on the merger of Hayashi & Wayland with Clifton Larsen & Allen for Committee Chair Carbone.
AGENDA ITEM 5, ADJOURNMENT
There was consensus of the Budget/Personnel Committee to adjourn the meeting at 12:53 p.m. to the next Budget/Personnel Committee meeting to be determined.
Respectfully Submitted:
Budget/Personnel Committee SPECIAL Meeting Minutes
01.12.2023
Budget/Personnel Committee SPECIAL Meeting Minutes
01.12.2023