Loading...
2023-03-14 Finance CommitteeMinutes FINANCE COMMITTEE MEETING March 14, 2023 Elected Officials Present Staff Present Councilmember Will Chen Dave Turley, Administrative Services Director Councilmember Susan Paine Scott Passey, City Clerk Councilmember Vivian Olson 1. CALL TO ORDER The Edmonds City Council Finance Committee meeting was called to order virtually and in the City Council Conference Room, 212 – 5th Avenue North, Edmonds, at 5:30 p.m. by Councilmember Chen. 2. COMMITTEE BUSINESS 1. Committee Updates • City Cash Management Mr. Turley reviewed: o City of Edmonds investment portfolio details as of January 31, 1023 Questions and discussion followed regarding why the City has different accounts/investments, when bonds were last purchased, cash balance versus investment value, criteria for selecting investments, returns from the Washington State Local Government Investment Pool (LGIP) versus the Snohomish County LGIP, maturity rates, and use of funds upon maturity. 03/14/23 Finance Committee Minutes, Page 2 • OpenGov Update Councilmember Chen recalled at the January 31 finance committee meeting, Ms. Menkveld was optimistic OpenGov would be operational by April. Mr. Turley reported he had a meeting with OpenGov a week ago and April is still the expected live date. Discussion followed regarding the schedule for training councilmembers. • 2021 SAO Audit Issues Management Response Councilmember Chen relayed the audit report states the misstatement has been corrected. He asked if that correction was reflected in the 2021 financial report and if the 2021 financial statements had been restated. Mr. Turley answered the financial statements have not been restated. The financial statements published on the website are correct and did not need to be changed, they are correct as presented. Following discussion, Mr. Turley clarified the City provides financial statements to the SAO for the audit. During the audit, the SAO identified an incorrect journal entry which was changed and that is reflected in the published financial statements. The financial statements as corrected are published at the conclusion of the audit. Questions and discussion followed regarding whether forecasts in the 2023 budget book are correct, whether the forecasts needed to be updated, and ARPA funds not affecting forecasts. Committee recommendation: Information only. 2. January 2023 Monthly Financial Report Mr. Turley reviewed: • YTD Sales Tax Revenues for the 12 months ended December 31, 2022 of $11,257,927 were $955,409 (9.3%) higher than at December 31, 2021 • YTD Sales Tax Revenues for January 2023 of $879,231 are $21,359 (2.5%) higher than for January 2022 • Total Sales Tax Revenues for the 12 months ended January 31, 2023 by Category Mr. Turley responded to a question regarding the difference between the fund balance and the cash balance in the building maintenance fund. Committee recommendation: On agenda under Received for Filing 3. 2020 Audit Update 03/14/23 Finance Committee Minutes, Page 3 Mr. Turley advised staff is seeking the finance committee’s input regarding next steps. During the audit of 2020 CARES grant funds, the SAO determined 33 businesses who received funds from the City did not meet the eligibility criteria or did not provide adequate documentation. Of the 33 businesses, 4 have repaid the money they received or signed up for a payment plan, 15 staff recommends not be pursued (the businesses suffered an obvious loss but may not have provided the precise documentation), 2 businesses have closed and 12 have not responded to the City’s communication. Committee members discussed how to proceed, noting the difficulty of pursuing LLCs via collections. The committee agreed as follows: • Do not pursue o 4 business who had repaid or made payment arrangements o 15 business who were able to demonstrate a loss but possibly not with the exact documentation requested o 4 closed businesses • Send certified letter to the remaining 12 businesses who did not respond, requesting they submit documentation and offering to work with them. Committee recommendation: Certified letter requesting resubmit documentation. Report back at future FC meeting. 4. Disposed Assets - 2022 Mr. Turley explained disposed assets are reported to the council at least annually; RCW requires the city council be informed of assets that are disposed of and removed from the capital asset list. He pointed out the City usually disposes of about 10 vehicles/year; this year there were only 2 because due to supply chain issues the City was not able to purchase new vehicles and the old vehicles were not disposed of. Discussion followed regarding whether the council could be notified before the asset are deposed of and disposal of the odor control improvement due to replacement with the new WWTP equipment. Committee recommendation: On agenda under Received for Filing. Provide committee members the RCW that requires council be notified. 3. ADJOURN The meeting was adjourned at 6:42 p.m. ____ SCOTT PASSEY, CITY CLERK