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HomeMy WebLinkAbout101-Finance Commission Discussion.pdf SARATOGA CITY COUNCIL MEETING DATE: September 2, 2009 AGENDA ITEM: DEPARTMENT: Finance & Administrative Services CITY MANAGER: Dave Anderson PREPARED BY: Mary Furey DIRECTOR: Mary Furey SUBJECT: Finance Commission Discussion RECOMMENDED ACTION: Review report and direct staff accordingly REPORT SUMMARY: In 1981, the City formed the Finance Advisory Commission to advise the City Council on financial matters pertaining to the governance of the City, as well as on the use of fiscal resources and the development of technology for the City. As originally structured, the Finance Advisory Commission consisted of seven members who served four year overlapping terms of office. At its May 18, 2005 meeting, the City Council adopted Resolution 05-032 pertaining to the structure and operations of City Commissions. In recognition of significant budget cuts and reductions in City staff, and the corresponding staffing requirements incurred to facilitate City Commissions, the Council made numerous changes regarding commissions. For the Finance Commission, the Council reduced the number of members from seven to five; meetings were reduced to once a year/as deemed necessary; and the mission was more narrowly defined to respond to specific requests for advice. Although the Finance Advisory Commission was not officially suspended in the Council resolution, the commission’s last meeting was held on November 15, 2004. On February 2, 2007 and March 2, 2007, the City Council considered the reinstatement of suspended commissions in conjunction with the addition of an Administrative Analyst position to assist with workload attributable to City Commissions. During subsequent discussions between Council and staff, the proposal to reinstate the Finance Commission was revised to establish a Council Finance Standing Committee consisting of two Council Members. The Council’s direction was for the committee to conduct initial review and oversight of financial matters pertaining to the governance of the City, provide Council perspective and guidance to staff, and to review the proposed annual budget and CIP prior to their submittal to the full Council. The Council Finance Standing Committee, as established by Council on September 5, 2007, meets on an as-needed basis, typically once a month. FISCAL IMPACTS: To be determined upon direction CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: N/A ALTERNATIVE ACTIONS: Some alternative actions for Council to consider include: 1. Maintain status-quo 2. Expand Finance Committee’s purpose/role to educate citizens on city finances 3. Evaluate reinstatement of a citizen staffed Finance Commission 4. Create Council Finance sub-committees for specific projects/fiscal issues 5. Establish a hybrid committee of Council Members and citizens 6. Eliminate Finance Committee 7. Identify organizational and/or procedural parameters for the committee (i.e. financial reporting, Council communication, etc.) 8. Increase meeting frequency and rotate Council members to increase exposure to financial matters 9. Shorten/lengthen the committee members term of office 10. Establish annual budget study session/workshops in March/April each year to provide for increased Council input during budget development process FOLLOW UP ACTION: To be determined upon direction ADVERTISING, NOTICING AND PUBLIC CONTACT: N/A ATTACHMENTS: N/A