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HomeMy WebLinkAboutMinutes - Minutes - Municipal Property Corporation - Meeting Date: 11/13/2018MINUTES MUNICIPAL PROPERTY CORPORATION GLENDALE CITY HALL CONFERENCE ROOM B1 5850 W. GLENDALE AVE. GLENDALE, ARIZONA 85301 NOVEMBER 13, 2018 9:00 A.M. CALL TO ORDER At 9:00 a.m. the Municipal Property Corporation (MPC) board of director's meeting was called to order by Leland Peterson, Chair of the MPC. A moment of silence was performed to honor former MPC board member Dr. Art Dobbelaere. 2. ROLL CALL Present: Leland Peterson, Chair Donald Knafels, Board Member Roger Schwierjohn, Board Member Also Present: Vicki Rios, Budget and Finance Director Lisette Camacho, Assistant Budget and Finance Director Kurt Freund, Financial Advisor, RBC Capital Markets Renee Molina, Management Assistant 3. CITIZEN COMMENTS If citizens wish to speak on a matter concerning the Municipal Property Corporation that is not on the printed agenda, please complete a Citizen Comments Card and provide it to the designated staff person prior to the beginning of the meeting. Once your name is called by the Chairperson, please proceed to the podium and state your name and address for the record. Please limit your comments to a period of three minutes or less. There were no citizen comments. 4. INFORMATION AND DISCUSSION OF BOARD PROCEDURAL CHANGES Presented by: Vicki Rios, Director, Budget and Finance Ms. Rios discussed the new board procedural changes and explained that Boards and Commission Meetings will now include a recorder that will record the entire meeting and will replace the previously required written short minutes. The recording will be posted on the City Clerk's website and remain on file for the public to listen to. She also explained that there are no changes to the long minutes procedures and the long minutes will continue to be approved at the annual MPC meetings. 5. ADMINISTER OATH OF OFFICE Presented by: Vicki Rios, Director, Budget and Finance It was determined that all board member's Oath of Office are current. No oaths were administered. 6. APPROVAL OF THE NOVEMBER 13, 2017 MINUTES Presented by: Vicki Rios, Director, Budget and Finance It was discussed that the minutes would be approved. Motioned by Board Member Donald Knafels, seconded by Board Member Roger Schwierjohn AYE: Chair Leland Peterson Board Member Donald Knafels Board Member Roger Schwierjohn Passed 7. ELECTION OF OFFICERS Presented by: Vicki Rios, Director, Budget and Finance Ms. Rios discussed the MPC rules and explained that the MPC could elect their own officers. The Municipal Property Corporation consists of five members appointed by the City Council for a two-year term. The five board members consist of a: President/Chair Person, Vice President, Secretary, and Treasurer. Ms. Rios explained that board members could serve dual roles such as the Vice President and Secretary position. Mr. Peterson asked Ms. Rios to explain the duties of the Treasurer position. Ms. Rios explained that the Treasurer duties are fairly nominal, and the President/Chair conducts the meeting, and the Vice President and Secretary role would conduct the meeting in the President's absence. She further explained that all board members would be listed as officers for the tax returns for the purpose of reporting and the board members would review the tax returns, and the MPC President would sign the returns. She also noted that the MPC is required to elect officers and this is needed in the event that the other officers are unavailable. Ms. Rios also explained that city staff prepares tax returns and performs accounting and minute functions. Motioned by Board Member Roger Schwierjohn, seconded by Board Member Donald Knafels AYE: Chair Leland Peterson Board Member Donald Knafels Board Member Roger Schwierjohn Passed Mr. Peterson accepted a term as President/Chair, Mr. Schwierjohn accepted a term as Treasurer, and Mr. Knafels accepted a term as Vice President and Secretary. 8. PRESENTATION ON THE FINANCIAL STATUS OF THE CITY Presented by: Vicki Rios, Director, Budget and Finance Presented by: Lisette Camacho, Assistant Director, Budget and Finance Ms. Camacho 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, 2018. Ms. Camacho explained that the city was in the final stages of their audit and that external auditors have performed their final field work in October and the fully audited final statements are expected in mid-December. She further explained the general fund budget and taxes were 2.3 million higher than what the city budgeted for and increased the fund balance by 3.4 million. This in turn increased the full general fund balance to 43.5 million. Ms. Camacho expects the city to have 50 million in general fund balance in the next 2 years. She also explained with the 43.5 million for FY 2018, the city needs 3.25 million per year to reach the 50 million goal and explained the city is very close to its goal. Ms. Camacho explained that after the financial statements are completed the finance reports would be posted on the city's website such as the expenditure limitation per the Arizona state statue, Single Audit, and SEFA (statement of expenditures for federal awards). Ms. Rios explained that overall the city is doing financially well. The general fund outperformed the city's estimates in terms of revenue and estimates were close on expenditures. The city did not exceed budget overall. Mr. Peterson asked Ms. Rios how the city came about having a budget that outperformed the estimates. Ms. Rios explained retail, state shared sales tax, property sales, and construction contracting were the main factors driving revenues. Ms. Rios mentioned in fiscal year 2018 additional retail is expected to arrive to the city such as a BMW dealership and hotels. Mr. Sweirjohn explained that in his opinion the city's economic development efforts have been fruitful since the city began to develop new relationships 4 to 5 years ago with big retailers and those efforts have been proven successful then and now. Ms. Rios explained that people are attracted to a vibrant city that is financially healthy. Mr. Knafels asked about the sales tax proposition that passed. Ms. Rios explained the proposition and stated she does not see the proposition having a big impact on the city or state's ability to tax the things that are already taxed on and does not foresee this impacting the tax rate. 9. MPC EXCISE TAX REVENUE BOND SUMMARY Presented by: Vicki Rios, Director, Budget and Finance Guest Presenter: Kurt Freund, RBC Capital Markets Mr. Freund 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. Mr. Freund also discussed the impacts of the passed proposition and noted that the rating agencies view the passage of the proposition as a credit negative because it reduces flexibility. An MPC Debt Overview packet was provided to the MPC Board and attendees. Mr. Freund discussed the information in the packet also known as Exhibit A. Exhibit A is attached. 10. UPDATE ON FUTURE OR PLANNED BOND ISSUANCE Presented by: Vicki Rios, Director, Budget and Finance Ms. Rios provided an update on plans to issue bonds for future projects. Ms. Rios explained that the city does not have any plans to issue excise tax bonds. There is a plan for a small issuance of general obligation bonds the first part of 2019. The issuance consists largely of streets reconstruction dollars that are planned in the budget. The city went through a process last year and forecasted that in the timeframe between 2022 and 2023, the city will free up more general obligation bond capacity to issue bonds for large projects such as parks and infrastructure needs of the city. Mr. Peterson inquired about the court building and Mrs. Rios explained the history of the court building project and explained that when the city went through the prioritization of spending of general obligation bonds the priority was concentrated on parks, police, and fire stations, and at this point the court building was not listed as highest priority, however there is a plan in the timeframe 2022 and 2023 to do a significant remodel of the current court building with the idea of the city taking what it has and making it better due to the expense of building new infrastructure. Ms. Rios mentioned that last year the city sold bonds to remodel the fire station on 69th Ave and Bethany Home Road and the city has plans to reuse current buildings and bring them up to code to reuse instead of building new infrastructure. This is currently the plan of the city however, as time goes by the city may adjust to better manage the needs of the city. Mr. Peterson inquired about an expansion or capacity issues regarding the court building rooms and judges. Ms. Rios explained that she was not at the city when they planned the court building but to her understanding what the city initially planned for the court building was to expand the court and add other types of courts and use it as a joint facility for other types of services such as victim assistance services and potentially open it up to other tenants. Ms. Rios concluded that the city feels the court building can manage at its current location with the support of the building remodel. 11. ADJOURNMENT Ms. Rios noted that the Clerk's Office is working on adding new board members to bring the MPC board back up to capacity. Mr. Peterson recommended a work session and introduction to the board. Ms. Rios explained that if the board has any recommended members that they may contact the Clerk's Office or their Council Member. Motioned by Board Member Roger Schwierjohn, seconded by Board Member Donald Knafels The meeting was adjourned at 9:53 a.m. AYE: Chair Leland Peterson Board Member Donald Knafels Board Member Roger Schwierjohn Passed The Municipal Property Corporation meeting minutes of November 13, 2018 were submitted and a d thi 2th day of November, 2019. r] Renee oliva Recording Secretary