Financial Services Committee
Rochester Hills
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1000 Rochester Hills |
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Drive |
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Rochester Hills, MI 48309 |
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Home Page: |
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www.rochesterhills.org |
Minutes
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Erik Ambrozaitis, Donald Atkinson, Kurt Dawson, Barbara Holder, Julie Jenuwine, |
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Jonathan Rea, Kyle Sucher, Alexandra Tatu, Ravi Yalamanchi |
6:00 PM
1000 Rochester Hills Drive
Thursday, June 8, 2006
CALL TO ORDER
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Chairperson Holder called the Financial Services Committee meeting to order at 6:06 |
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p.m. |
ROLL CALL
Donald Atkinson, Barbara Holder and Ravi Yalamanchi
Present:
Erik Ambrozaitis and Jonathan Rea
Absent:
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Non-Voting Members Present: Kurt Dawson, Julie Jenuwine, Kyle Sucher and |
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Alexandra Tatu |
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Non-Voting Members Absent: |
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Committee Member Jonathan Rea provided previous notice he would be unable to |
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attend and asked to be excused. |
APPROVAL OF MINUTES
2006-0353
Financial Services Committee Regular Meeting - October 13, 2005.
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101305 FS postponed draft minutes.pdf; 101305 FS draft minutes.pdf; |
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Minutes Resolution.pdf |
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Ms. Jenuwine requested changes to the October 13, 2005 Financial Services Meeting |
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minutes. |
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A motion was made by Yalamanchi, seconded by Atkinson, that this matter be |
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Approved as Amended. |
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Resolved that the Financial Services Committee hereby approves the Minutes of |
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the Regular Meeting of October 13, 2005 as amended as follows: |
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First paragraph to read as follows: |
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Julie Jenuwine, Director of Finance, presented first fourth quarter budget |
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amendment proposal to utilize contingency. |
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The motion carried by the following vote: |
Aye:
Atkinson, Holder and Yalamanchi
Absent:
Ambrozaitis and Rea
COMMUNICATIONS
None Presented
UNFINISHED BUSINESS
2005-0847
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Recommendation to City Council that the SAD Cost Sharing Report deadline |
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be suspended and that the Financial Services Committee be directed to |
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continue discussions in conjunction with millage discussions |
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Agenda Summary.pdf; Referral Notice SAD.pdf; 060806 FS Dft Min.pdf; |
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0847 Resolution.pdf; 0847 Minutes.pdf |
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Committee members discussed the possible financial impacts of Homeowner vs City |
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cost sharing divisions in association with Special Assessment Districts noting the |
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following: |
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Chairperson Holder noted that Financial Services Committee could not make a |
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recommendation to City Council by deadline date of June 15th and, therefore, requested |
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an extension to further study and discuss before a recommendation is made. She also |
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entertained a motion that Special Assessment Districts discussion be included in with |
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the expiring millages discussion and the local road issue discussion that will be held at |
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various committees. |
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A motion was made by Yalamanchi, seconded by Atkinson, that this matter be |
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Approved and Referred to the City Council Regular Meeting. |
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Whereas the Rochester Hills City Council at a regular meeting on November 30, |
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2005 passed a resolution directing the Financial Services Committee to study the |
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possible financial impacts to the City of differing homeowner/City cost sharing |
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with regard to Special Assessment Districts (SAD) and report back to City Council |
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no later than June 15, 2006; and |
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Whereas the Financial Services Committee has determined that the matter of |
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Special Assessment District (SAD) cost sharing should be included in the current |
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millage issues under discussion at various Council communication committees. |
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Be It Resolved that the Financial Services Committee hereby recommends that |
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the Rochester Hills City Council suspend the previous deadline for receipt of the |
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Financial Services Committee SAD cost sharing report; and |
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Be It Further Resolved that the Financial Services Committee hereby |
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recommends that the Rochester Hills City Council direct the Financial Services |
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Committee to continue the evaluation of the SAD cost sharing issue in |
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conjunction with discussions regarding proposed new and renewing millages. |
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The motion carried by the following vote: |
Aye:
Atkinson, Holder and Yalamanchi
Absent:
Ambrozaitis and Rea
2006-0279
Investment Policy
INVESTMENT POLICY.pdf
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Kurt Dawson, Assessor/Treasurer, explained the Investment Policy to Committee |
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members noting the following: |
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* Investment Policy is updated every five (5) to ten (10) years and it was most recently |
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adopted by City Council in February 2006. It is then submitted to the National |
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Association of Treasurer's for re certification. |
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* The Policy itself is primarily driven by Public Act 20 of 1943, which provides very |
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restrictive guidelines with regard to what municipalities can invest in with the primary |
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objective being the safety of the asset and the second being liquidity. The return on the |
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investment is the least primary objective. |
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Mr. Dawson indicated that he provides quarterly investment reports to City Council, |
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which shows where the money is, what financial institutions are used and how they are |
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rated. He further stated that he is limited on amounts placed at each of the forty (40) |
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accounts. Mr. Dawson explained that the City receives detailed reports from Brokers |
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and Capital Management provides a bank rating service analysis. The City reviews the |
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banks annual statement to see how well their stock is doing. He noted that currently the |
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City is averaging 4.5% interest income and it is expected to increase for 2007. He |
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further noted that interest income goes back in as revenue into the 41 funds. |
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Mr. Dawson provided a example handout of a Daily Cash Report maintained for tracking |
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purposes noting the following: |
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* The General Fund has its own treasuries, commercial paper, cd's, pooled accounts, |
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cash accounts and is very detailed. |
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* The Credit Risks are as follows: |
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* City does not have Foreign Currency |
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* Approximately 25% in Investment Pool Accounts |
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* Government Obligations 30% |
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* Government obligations are triple A rated. |
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Mr. Dawson concluded by stating that two other people review the investment |
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transactions. |
Discussed
NEW BUSINESS
2006-0257
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Referral to the Financial Services Committee of a Resolution Expressing |
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Support of Local Control of Cable Franchising and Opposition to Michigan |
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House Bill 5895 and Senate Bill 1157 |
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Referral Notice Cable.pdf; Agenda Summary.pdf; HB-5895.pdf; 0257 |
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Resolution.pdf; Memo - National Franchise Issue.pdf |
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Chairperson Holder stated that there are no updates pertaining to this agenda item and |
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requested delaying the discussion to a future meeting. |
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Discussion commenced amongst Committee Members noting the following: |
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* The Bill does not mention the loss of franchise money the City will lose and is not |
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"straightforward" in the language. |
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* The City will lose approximately $600,000 out of the General Fund if this Bill is |
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passed. |
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* Representative Garfield is a proponent of the legislation. |
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* If Representative Garfield is representing the City, what is his position knowing that |
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City Council opposes the Bill? |
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* The Bill is being driven by AT&T. |
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* When local control is removed, AT&T will get monies, therefore, pay out more State |
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tax. |
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Consensus of the Committee to hold discussion to a future meeting. |
Discussed
YOUTH COMMENTS
None Presented
ANY OTHER BUSINESS
None Presented
NEXT MEETING DATE
Thursday, July 13, 2006 at 6:00 pm
ADJOURNMENT
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There being no further business to discuss, Chairperson Holder adjourned the meeting |
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at 6:53 p.m. |
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Minutes prepared by Sue Busam |
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Minutes were approved as presented December 13, 2006 Regular Financial Services |
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Committee Meeting. |
