ST. PETERSBURG CITY COUNCIL
BUDGET, FINANCE & TAXATION COMMITTEE
Committee Report for May 9, 2013
Members & Alternate:
Budget, Finance & Taxation Committee: Chair James R. “Jim”
Kennedy, Jr.; Vice-Chair Charles Gerdes; Karl Nurse; Leslie Curran
and William Dudley (alternate).
Support Staff:
Tom Hoffman, Controller, Finance Department
Angela Ramirez, Budget Analyst II, Budget Department
Call to Order
Approval of Agenda
Approval of Minutes
1.
New / Deferred Business
2nd Quarter Financials Report (Anne Fritz/Tom Greene)
The Second Quarter Financials Report was given by Anne Fritz, Finance Director,
and Tom Greene, Budget Director.
Ms. Fritz presented the March 31, 2013 Quarterly Investment Report which has
an amortized book value of $420.4 million and corresponding market value of
$423.3 million, resulting in an unrealized gain of $2.9 million. The change in
market value will not be realized unless the investment is sold or significantly
impaired. When all sources of interest income are combined for the twelve
months ended March 31, 2013, the City’s investment earnings were $4.6 million,
with an average return of 1.26%. Investment earnings are expected to remain low
as the unfavorable rate environment continues with little recovery in returns being
expected in 2014.
Ms. Fritz presented the March 31, 2013 Quarterly Debt report providing future
funding sources required to service General Governmental Debt, annual General
Governmental debt service which currently extends to 2026, future funding
sources required to service Enterprise Debt and annual Enterprise debt service
which currently extends to 2043.
Ms. Fritz presented the March 31, 2013 Pension Funds Report which reflects the
activity in the City’s Employees Retirement Fund, Fire Pension Fund and Police
Pension Fund for the six months ending March 31, 2013. Included in the report
are comparative financial statements for the six months ending March 31, 2013 to
the year ended September 30, 2012, details of the investments held by the Pension
Plans and report of the solvency tests utilizing the October 1, 2012 actuarial report
for each of the Pension Plans. During the six month reporting period, the Pension
Plans experienced an aggregate interest and dividend income earnings of
approximately $26.7 million and realized and unrealized investment gains of
$35.3 million. Future implementation of GASBs 67 and 68 are expected to have
an adverse impact on the City’s financial statements.
Ms. Fritz presented the March 31, 2013 Parks Preservation Fund report providing
the activity in the fund from inception in 2001 through March 31, 2013. The
report provides detailed year to date activities, identifying revenues, expenditures
and transfers in and out, reports the fund balance. During the reporting period for
the year, the fund has interest and dividend income earnings of $89,143 and
realized and unrealized investment gains of $1.2 million. The fund balance at
March 31, 2013 was $17.9 million, of which $14.6 is designated and $3.1 million
is undesignated.
Mr. Greene presented the Fiscal Year 2013 Second Quarter Budgetary Analysis
and Fund Balance Report providing a comparison of projected ending fund
balances to established targets. The second quarter results indicate that most of
the City’s funds are expected to operate within expense budgets for the year. It
was noted that the City continues to be challenged by the lingering effects of the
most recent recession, adversely impacting revenues in the General Fund and
several Enterprise Funds. During the second quarter, four Penny Capital Projects
were closed with an aggregate unspent amount of $183,971 which is
recommended to be used as a portion of the match requirement for an Albert
Whitted Airport grant. Water Resource closed fourteen capital projects during the
quarter, coming in under the budget amount by $113,037.
2.
New Business Item Referrals – None
3.
Continued Business/Deferred Business
Health Insurance Fund Balance
Gary Cornwell, Human Resources Director, provided information relative to the
anticipated September 30, 2013 Health Insurance Fund balance falling short of the
targeted amount. Mr. Cornwell explained that premium contributions are lagging
expenditures stemming from a timing difference and stated that he does not believe a
subsidy is necessary.
4.
Reports - None
5.
Next Meetings Agenda Tentative Issues
1. May 30, 2013
a. 2nd Quarter Lease Report (Bruce Grimes)
b. 2nd Quarter Grants Update (Wayne Finley)
2. June 13, 2013
a. Community Brownfield Fund – Follow up (Sophia Sorolis)
3. July 18, 2013
a. 3rd Quarter Grants Update (Wayne Finley)
6.
Adjournment – meeting adjourned at 9:22 a.m.