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HomeMy WebLinkAboutBUDGET AND FINANCE ACTION SUMMARY 01-30-12 REGULAR MEETING OF THE BOARD OF DIRECTORS: CENTRAL CONTRA COSTA JAMES A. NEJEDLY SANITARY DISTRICT President BUDGET AND FINANCE COMMITTEE DAVID R. WILLIAMS President Pro Tem BARBARA D. HOCKETT A C T I O N S U M M A R Y MICHAEL R. MCGILL MARIO M. MENESINI PHONE: (925) 228-9500 Member McGill (Alternate) FAX: (925) 676-7211 Member Nejedly www.centralsan.org Monday, January 30, 2012 3:00 p.m. Executive Conference Room 5019 Imhoff Place Martinez, California PRESENT: Mike McGill, Jim Nejedly, Randy Musgraves, Jim Kelly, Ann Farrell, Debbie Ratcliff, Colette Curtis-Brown, Todd Smithey 1. Call Meeting to Order Member McGill called the meeting to order at 3:00 p.m. 2. Public Comments None. 3. Old Business a. Review staff’s responses to the Committee’s requests for the following items:  Invoices submitted by Executive Recruiter Bob Murray Member Nejedly stated that he was not in agreement with the contract as a lump sum contract, and he was concerned about the charges paid and the total amount of the contract. He stated that he will not approve future invoices from Bob Murray & Associates. Member McGill also expressed concern regarding the lump sum contract and the billings and payments. Budget and Finance Committee January 30, 2012 Page 2  information regarding the California Association of Sanitation Agencies (CASA)’s methodology in developing their membership fee and the value of CASA membership to the District Member Nejedly stated that the CASA fees are too much for what the District gets in return. COMMITTEE ACTION: Reviewed staff’s responses and recommended the Board not use Bob Murray and Associates in the future. 4. Risk Management a. Review Loss Control Report and discuss outstanding claims There were no new claims to report. COMMITTEE ACTION: Reviewed the report and discussed outstanding claims. 5. Review December 2011 Financial Statements and Investment Reports (Item 3.c. in Board Binder) COMMITTEE ACTION: Reviewed and recommended Board approval. 6. CCCSD Total Unfunded Liabilities trend analysis The District’s unfunded liabilities were discussed. It was noted that the largest increase has been to the CCCERA UAAL due to market losses and de-pooling and to the GASB 45 liability, due to rising health care premiums and reduction in the interest rate assumed by the actuary. COMMITTEE ACTION: Received the report. 7. Review Preliminary Fiscal Year 2012-13 Ten-Year Financial Plan Assumptions and Draft Fiscal Year 2012-13 Ten-Year Plan Scenario Staff discussed the increases in CCCERA contributions and GASB 45 annual contributions and noted that rates increase by $34 a year in the future, instead of last year’s estimate of $31 per year. Budget and Finance Committee January 30, 2012 Page 3 COMMITTEE ACTION: Reviewed the Preliminary Fiscal Year 2012-13 Ten- Year Financial Plan Assumptions and Draft Fiscal Year 2012-13 Ten-Year Plan Scenario. The Committee asked staff to develop an additional scenario that includes paying off the entire CCCERA UAAL over the next ten years, and a scenario that increases rates by $50 to $60 in each of the first two years. Member McGill recommended the following changes to staff’s assumptions:  600 new connections per year were added annually beginning in 2013- 14 to assume that commercial business would grow. The 600 additional connections per year now start in 2015-2016. This reduced the number of connections in the current model by 1,200 connections.  900 new connections per year were assumed in 2012-13 and 1,000 new connections beginning in 2013-14 forward. The number of connections was lowered to 800 connections in 2012-13 and 2013-14, and the 1,000 new connections begin in 2014-15 forward.  Property Tax growth was held flat through 2011-12 and then started slowly escalating upwards from 1% - 3% beginning in 2013-14. The property tax assumptions were changed so that they were held flat for 2 more years (2013-14 and 2014-15) and then start escalating from 1% to 3% per year. All three of these assumptions are based on a continued slower economic recovery and impact the model by reducing revenue. 8. Expenditures a. Review Expenditures (Item 3.b. in Board Binder) COMMITTEE ACTION: Reviewed and recommended Board approval. b. Review Legal Expenditure Summary COMMITTEE ACTION: Reviewed Legal Expenditure Summary. c. Review P-Card expenditures COMMITTEE ACTION: Reviewed P-Card expenditures. Budget and Finance Committee January 30, 2012 Page 4 9. Reports and Announcements None. 10. Suggestions for future agenda items None. 11. Adjournment – at 4:05 p.m.