Taxation, Revenue, and Utilization
of Expenditures (TRUE) Commission
Joe Andrews, Chair
Diane Brown, Vice Chair
Patti Anania, Secretary
TRUE Commission
Meeting Minutes
January 9, 2014
4:00 p.m.
Attendance: Joe Andrews (Chair), Diane Brown, Patti Anania, Ernest McDuffie, Greg Radlinski, Marc El Hassan, John Campbell, James Edwards, George Spencer, Daniel Blanchard, Keith Johnson, Ted Wendler, Danny Becton, Leroy Kelly,
Excused: Marcella Lowe
Absent: Alex Marerro
Also: Tommy Carter – Council Auditor’s Office; Jeff Clements – City Council Research; Cleveland Ferguson – Mayor’s Office; Terrance Ashanta-Barker and Laura Stagner – Neighborhoods Department; Glenn Hansen, Alea Tukes, Jim Behrendt, Joey Greive, Judith Garard – Finance Department; Greg Pease – Intra-governmental Services Department; Kelley Boree – Recreation and Community Services Department
Chairman Andrews convened the meeting at 4:07 p.m. with a quorum present.
Minutes
The minutes of the December 4, 2013 commission meetings were approved as distributed.
Presentation – City financial standard operating procedures
Glenn Hansen, City Budget Officer, distributed copies of the City’s financial SOPs to the commissioners and explained that in his professional opinion they are good policies which prudently prevent excessive risk exposure. Employee training in understanding and implementation of the policies is generally good, and if problems are identified they are corrected as necessary. Department heads are ultimately responsible for the implementation of the policies and delegate authority and responsibility down the chain of command to other managers as necessary.
Kelley Boree, Director of Recreation and Community Services, specifically addressed the findings of and the TRUE Commission’s questions about Council Auditor’s Audit #739 – Recreation and Community Services Programming Division Revenues. Ms. Boree explained that the audit was performed at a time when the business office functions that were the subject of the audit were being transferred into the Recreation Department from another department, so she welcomed the scrutiny as an opportunity to identify any problems and to make needed changes. The issue of failure to pay sales tax on certain transactions resulted from a change in state law making facility rental charges, previously non-taxable, into taxable revenue. The problem was remedied as soon as it was identified and the City’s Finance Department is working with the Florida Department of Revenue on settling the issue of past-due taxes for the period when they were not properly collected. She reported that the department is working on an RFP for procurement of a new financial management system that will better handle all of the department’s financial transactions, including new functions such as a campground reservation system. The department is anxious to acquire and implement the new system, and will be updating its SOPs as necessary to reflect the requirements of the new system.
With regard to specific findings and questions, Ms. Boree indicated that department has an armored car contract for collection of cash from Hanna and Hugeunot Parks and the Cecil Recreation Center, so those facilities are exempt from the one day cash deposit rule since the cash is removed from the sites daily. The recommendations regarding installation of security cameras have been implemented, as have the recommendations regarding use of multiple receipt books for more accurate tracking of separate funds. The posting of deposits to separate accounts will be done automatically by the new financial management software.
Committee Reports
Legislative Tracking Committee – Chairman Andrews reported that the committee not met in the last month due to a lack of items of interest in the new bill introductions. The group discussed how the chairman determines if items of are sufficient interest or not, and what the threshold is for calling or canceling a meeting. Mr. Andrews said that he prefers to have at least 3-5 items that merit attention (are out of the ordinary, have substantial financial implications, or otherwise merit attention) before calling a meeting and having members make the trip downtown to City Hall. It hardly seems worth the time and effort for only 1 or 2 items routine items.
Performance Committee – Chairman Wendler reported that he is stepping down from the chairmanship of the committee so that a new chair can lead the committee in addressing new issues and projects. He intends to continue working as a committee of one to do further work on pension issues as a follow-up to the committee’s several years of work on the subject. The commission discussed the history of the Performance Committee and whether it should transition to new projects or be disbanded and replaced by a new project-specific committee.
Motion (El Hassan): that the Performance Committee be disbanded as a standing committee and that new subject-specific committees be appointed as needed to address new study topics – unanimously approved.
Commissioner Becton said that if standing committees are going to be de-emphasized, then the commission needs to be better prepared to hold substantive, active discussions at full commission meetings and to be ready to pose good questions to guest speakers. Commissioner Campbell said that the presence at today’s meeting of a large number of City administrators indicates that the TRUE Commission has achieved some recognition and clout with the administration. Commissioner Anania said that she would be willing to take over as Chair of the Audit Committee when Commissioner Lowe’s term on the TRUE Commission ends this summer.
The group discussed possible commission study/project ideas:
· City Equestrian Center finances and operations
· Status of the City-owned but shuttered Palms Fish Camp on Heckscher Drive
· Red light camera operations and revenues
· Library independent taxing district referendum
· Solid waste costs – why is Jacksonville more expensive than surrounding counties?
· Future of the old City Hall and County Courthouse properties on Bay Street
Commissioner Radlinski suggested that all CPAC appointees to the commission could be delegated to go back to their CPACs and ask what City government issues they would like to see researched, which the TRUE Commission could then pursue. Chairman Andrews stated that he would write to all of the CPAC chairs and ask for issue ideas, as well as asking the Southwest and North CPACs to nominate replacement members to fill their vacant positions. He will also write to the Mayor and City Council to offer the TRUE Commission’s assistance and solicit their ideas for projects.
Commissioner Spencer requested that staff provide him with tabulations of capital improvement spending by council district for fiscal years 2011-13.
Audit Review Committee – the committee did not meet this month and had no report.
Auditor’s Report
Tommy Carter reported that one report has been issued by the Council Auditor in the last month - #743, Quarterly Budget Summary for the 12 months ending September 30, 2013. The General Fund ended the year with a revenue shortfall of $25.6 million and a reduction of expenditures of over $17 million. The $21 million operating loss for FY13 will be covered by the City’s General Fund operating reserve account. Utility services taxes and franchise fee revenue accounted for $10 million of the revenue shortage. Commissioner Radlinski asked for information on what percentage of the General Fund reserve account will be needed to cover the FY13 operating loss. Mr. Carter indicated that the Council Auditor’s quarterly budget summaries are the primary vehicle for informing City Council about mid-year budget progress. The data is provided by the administration and the independent authorities and is compiled and commented upon by the Council Auditor’s staff.
Chair’s Comments
None
Old Business
Commissioner Anania suggested that the commission invite the City’s new Comptroller to address the commission and answer questions about the position. The invitation will be extended.
New Business
Commissioner Radlinski suggested that when the City’s “lazy asset” study is completed the commission should receive a briefing on its findings.
On a related topic, Commissioner El Hassan explained that when private parties attempt to deed property to the City, the City is not required to accept it. There are properties that have been deeded to the City but which the City has not accepted, leaving them in a state of legal “limbo.” He has encountered such a property in the course of a private business transaction and is curious how the City handles such situations. A representative of the Real Estate Division will be invited to the February meeting to discuss this situation.
Commissioner Comments
Commissioner Johnson announced that he would be volunteering to lead a study of the City’s new red light cameras after the upcoming tax season is completed and he has time to devote to the task.
Commissioner Anania said that she would like to hear from the Code Enforcement Division later in the spring to hear how it utilizing the additional resources provided by the City Council during the last budget adoption process.
Public Comment
None
There being no further business, the meeting was adjourned at 5:27 p.m.
Posted 2.14.14
11:00 p.m.
c.c.
City Council electronic file
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