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HomeMy WebLinkAboutMinutes - Minutes - Municipal Property Corporation - Meeting Date: 11/13/2017^ FINAL MINUTES MUNICIPAL PROPERTY CORPORATION GLENDALE CIPT HALL CONFERENCE ROOM B3 5850 W. GLENDALE AVE. GLENDALE, ARIZONA 85301 NOVEMBER 13, 2017 1:00 P.M. CALL TO ORDER At 1:00 p.m. the Municipal Property Corporation (MPC) board of director's meeting was called to order by Leland Peterson, President of the MPC. 2. ROLL CALL There was a quorum with the following additional board members present: Roger Schwierjohn, Ron Cantrell, and Donald Knafels. Present: President Leland Peterson Board Member Donald Knafels Board Member Ron Cantrell Board Member Roger Schwierjohn Absent: Board Member Art Dobbelaere Also Present: Tom Duensing, Assistant City Manager Vicki Rios, Budget and Finance Director Lisette Camacho, Assistant Budget and Finance Director William R. DeHaan, Attorney, Greenberg Traurig LLP Nick Dodd, Financial Advisor, RBC Capital Markets Renee Molina, Administrative Support Specialist 3. CITIZEN COMMENTS Ms. Rios explained that this item is to inform citizens of the option to speak and that the Board and staff cannot respond to any item that is not on the agenda. There were no citizen comments. 4. APPROVAL OF NOVEMBER 14, 2016 MINUTES It was discussed that the minutes would be amended to correct the titles in item 9 from Dr Knafels to Mr. Knafels and in item 3 from Mr. Dobbelaere to Dr. Dobbelaere. Motioned by Board Member Roger Schwierjohn, seconded by Board Member Donald Knafels to approve the Municipal Property Corporation minutes of November 14,2016, as amended. AYE: President Leland Peterson Board Member Donald Knafels Board Member Ron Cantrell Board Member Roger Schwierjohn Other: Board Member Art Dobbelaere (ABSENT) Passed ELECTION OF OFFICERS Mr. Peterson took item 8 out of order to item 5. Mr. Cantrell notified the board of his decision not to serve another term. The current board member terms were extended by a Council ordinance to January 31, 2018 and all board members agreed to serve through that date. Mr. Peterson nominated Dr. Dobbelaere to serve as Vice President and Secretary. The other current officers agreed to continue in their roles, if elected. Motioned by Board Member Donald Knafels, seconded by Board Member Ron Cantrell to elect the following officers: Mr. Leland Peterson, President/Chair Dr. Art Dobbelaere, Vice President and Secretary Mr. Roger Schwierjohn, Treasurer AYE: President Leland Peterson Board Member Donald Knafels Board Member Ron Cantrell Board Member Roger Schwierjohn Other: Board Member Art Dobbelaere (ABSENT) Passed ADMINISTER OATH OF OFFICE It was determined that all board member's Oath of Office are current. No oaths were administered. UPDATE ON CHANGES TO TERMS OF OFFICE FOR MPC BOARD MEMBERS Ms. Rios explained that the Council passed an ordinance extending the current term of all Boards and Commission members including the MPC Board, which were set to expire in 2017, to January 31, 2018. Ms. Rios further explained that future terms are now set to expire on the 31stof January of each year. DISCUSSION OF REVIEW AND SIGNATURE PROCESS FOR ANNUAL MPC TAX RETURNS Ms. Camacho discussed the MPC tax return process. Mr. Peterson asked if other board members would like to review the returns before they are filed. After discussion, a consensus was reached to send the returns to the entire board to review and comment before they are filed. 9. PRESENTATION ON THE FINANCIAL STATUS OF THE CITY Ms. Rios provided the MPC Board with a brief update on the city's financial status as of the end of the last fiscal year, June 30, 2017. Ms. Rios explained that the external auditors have completed their field work with no audit findings. She further explained the City's goal is to have $50 million in unassigned fund balance by the end of fiscal year 2020 and that the City is on track to reach this goal. Ms. Rios estimates that the City is going to place approximately $6 million in fund balance this fiscal year to bring the total to approximately $41 million. Overall, there has been much economic activity such as the large Conair expansion, Ikea which is expected to open in 2020, groundbreaking for TopGolf, and groundbreaking for a BMW Dealership. Furthermore, 2017 sales tax revenues were up approximately 3% from $150 million for a total of $155 million. The sector that grew the most was retail. Construction was also up and experienced an increase that the City has not seen in several years. Ms. Rios explained that part of the uptick in construction was because of Midwestern's construction projects. Ms. Rios stated that the sales tax revenue is performing well and looks like it will increase another 3% this year Ms. Rios believes that the economic activity described reflects the economy statewide and foresees conditions improving. Mr. Peterson asked Ms. Rios to improve the Board's understanding regarding the Coyotes hockey team and their risk factors. Ms. Rios discussed the arena's performance in general and stated that the arena is doing well. Ms. Rios explained that the arena has a new arena management company, called AEG, which manages facilities worldwide. She explained the management company is doing a very good job at managing the hockey events and also bringing events other than hockey to the arena. Ms. Rios further explained that the hockey team is currently contracted on a year-by-year basis. Mr. Schwierjohn asked about the relation between the recent increase in our bond ratings and the issuance in 2018. Ms. Rios explained that the better bond ratings have absolutely helped the City. Mr. Schwierjohn expressed that he was very proud to know that the City has worked very hard to face challenges and has dealt with those challenges in a timely and financially sound manner. He believes that reflects the City staff working hard and the market is reacting positively. 10. MPC EXCISE TAX REVENUE BOND SUMMARY & REFUNDING Mr. Nick Dodd from RBC Capital Markets, the City's financial advisors, gave an overview of the status of the MPC debt portfolio, market conditions, and the result of the most recent MPC refunding transactions. Also, an MPC Debt Overview packet was provided to the MPC Board and attendees. Mr. Dodd discussed the information in the packet. "Please see Attachment RBC Presentation Slides". 11. UPDATE ON FUTURE OR PLANNED BOND ISSUANCE Ms. Rios provided an update on plans to issue bonds for future projects. Ms. Rios explained that plans are to possibly issue refunding bonds of approximately $24 million before the end of 2017 and general obligation bonds in late January or early February of 2018 for around $17 million. In addition, Ms. Rios explained that the City is working on a model with the Council to have them set a prioritization method for future general obligation bonds and Capital Improvement Projects in the 2022 timeframe. 12. ADJOURNMENT Motioned by Board Member Roger Schwierjohn, seconded by Board Member Donald Knafels to adjourn the meeting. AYE: President Leland Peterson Board Member Donald Knafels Board Member Ron Cantrell Board Member Roger Schwierjohn Other: Board Member Art Dobbelaere (ABSENT) Passed The meeting was adjourned at 1:58 p.m. The Municipal Property Corporation meeting minutes of November 13, 2017 were submitted and apprp^d this 13th day of November, 2018. Renee" Recording Secretary