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HomeMy WebLinkAboutMinutes - Minutes - Municipal Property Corporation - Meeting Date: 11/8/2021Gir1 A R I Z O N A MINUTES MUNICIPAL PROPERTY CORPORATION 4th FLOOR CONFERENCE ROOM 5850 W. GLENDALE AVE. GLENDALE, ARIZONA 85301 NOVEMBER 8, 2021 9:00 A.M. CALL TO ORDER Chair Peterson called the meeting to order at 9:02 a.m. 2. ROLL CALL Chair Peterson announced quorum was reached. Present: Leland Peterson, Chair John Jones, Board Member (via Zoom) Roger Schwierjohn, Board Member Absent: David Leckie, Board Member Also Present: Lisette Camacho, Budget & Finance Director Randa Abdelazim, Budget and Finance Management Assistant Attendees: Kurt Freund, RBC Capital Markets Tom Carlson, RBC Capital Markets Kathryn Pong, RBC Capital Markets William DeHaan, Greenberg Traurig 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. No citizens were present. 4. ADMINISTER OATH OF OFFICE Presented by: Lisette Camacho, Budget & Finance Director Ms. Camacho announced that the only Oath of Office to be administered was for Board Member Leckie. She indicated that since he was absent, it would be administered at a later time. 5. APPROVAL OF THE NOVEMBER 9, 2020 MINUTES Presented by: Lisette Camacho, Budget & Finance Director Motion by Board Member Roger Schwierjohn, second by Board Member John Jones, to approve the November 9, 2020 Municipal Property Corporation meeting minutes as written. AYE: Chair Leland Peterson Board Member (via Zoom) John Jones Board Member Roger Schwierjohn Other: Board Member David Leckie (ABSENT) Passed a. Municipal Property Corporation Minutes of November 9, 2020. 6. ELECTION OF OFFICERS Presented by, Lisette Camacho, Budget and Finance Director Ms. Camacho announced the need for an election of officers and announced available positions as Chair/President, Vice President, Treasurer, and Secretary. Mr. DeHaan confirmed that one Board Member could hold both roles of Vice President and Treasurer. Chair Peterson stated that he was willing to remain as Chair/President, however, welcomed others who would like to serve in the role. There were no volunteers. Motion by Board Member Schwierjohn, second by Board Member Jones, for Board Member Peterson to remain as Chair and President of the Municipal Property Corporation. AYE: Leland Peterson, Chair John Jones, Board Member Roger Schwierjohn, Board Member Passed Motion by Board Member Jones, second by Board Member Schwierjohn, to appoint Board Member Schwierjohn as Vice President and Treasurer of the Municipal Property Corporation. AYE: Leland Peterson, Chair John Jones, Board Member Roger Schwierjohn, Board Member Passed Motion by Board Member Schwierjohn, second by Board Member Jones, to appoint Board Member Jones to as Secretary of the Municipal Property Corporation. AYE: Leland Peterson, Chair John Jones, Board Member Roger Schwierjohn, Board Member Passed 7. UPDATE ON CITY FINANCES Presented by: Lisette Camacho, Budget & Finance Director Ms. Camacho presented the Preliminary Monthly Financial Report for Fiscal Year 2020-21 through June 2021. The detailed report was also provided to the Board Members. Ms. Camacho's briefing on the financial status of the City included the following highlights: • FY2021 General Fund Revenue was higher than budget by 12.1 %. • FY2021 Sales Tax Revenue increased by 13.1 % over the same time last year. • FY2021 General Fund Expenditures were 5% below budget. Chair Peterson inquired as to how the current Fiscal Year performance compared to budget. Ms. Camacho stated that though the month of August revenues continue to be strong. and are higher than last year. Mr. Schwierjohn stated that it was safe to say that the City has done a marvelous job with what it faced in the late 2000s and during the pandemic. He said that that City has put the citizens in a position to look forward with great hope. He asked about the impact to the City when the Coyotes move out of the stadium. Ms. Camacho relayed that a consultant was hired to perform an analysis of revenues and expenditures and did not see the departure of the Coyotes as a major financial impact to the City. She stated that there are other events that generate sales tax revenues that will supplement the loss of the hockey games. Ms. Camacho announced that the sale of the Public Safety Retirement System Certificates of Participation closed in July and the City was now 90% funded for the Police and Fire Departments. She expected that the City would save approximately $100 million and noted that RBC Capital Markets and Greenburg Traurig assisted with this financing. The agenda item was concluded. 8. MPC EXCISE TAX REVENUE BOND SUMMARY & UPDATE ON FUTURE REFUNDING Presented by: Kurt Freund, RBC Capital Markets Presented by: Kathryn Pong, RBC Capital Markets Mr. Freund introduced Ms. Pong and Mr. Carlson, who gave a presentation, with detailed charts and graphs, on the following: • Municipal Property Corporation (MPC) Outstanding Excise Tax Debt Profile o The MPC has approximately $187 million in Outstanding Debt as of October 19, 2021 • Update on Market Conditions — Historical 3, 5, 7, 10, and 30 -Year Information presented o Municipal Markets Daily o U.S. Treasury Rates • Update on Interest Rate Movements — Municipal Yields versus Treasury Yields o Historical 5, 10, and 30 -Year Interest Rates • Update on status of proposed federal economic stimulus plans • Update on Municipal Bond Supply and Municipal Bond Fund Flows • Current Municipal Market Conditions Mr. Freund stated that with the Coyotes leaving, the City could repurpose the facility and make renovations. He surmised that the City would need to issue new debt to do this in conjunction with debt refunding. He stated this topic would most likely be presented to the MPC in six months. Chair Peterson stated that he appreciated receiving all of the information from the RBC reports. The agenda item was concluded. 9. COMMITTEE COMMENTS & SUGGESTIONS Chair Peterson thanked the Board Members for taking on their new officer positions. He stated that he found the meeting very interesting. Board Member Jones expressed appreciation for the review of all of the documents and complimented the great money management within the City of Glendale. 10. ADJOURNMENT Motion by Board Member Schwierjohn, second by Board Member Jones, to adjourn the meeting at 9:47 a.m. AYE: Chair Leland Peterson Board Member (via Zoom) John Jones Board Member Roger Schwierjohn Other: Board Member David Leckie (ABSENT) Passed The Municipal Property Corporation meeting minutes of November 8, 2021 were submitted and approved this 15th day of November, 2022. Levi D Gibson Budget & Finance Interim Director