HomeMy WebLinkAbout02-20-07 Item 2A2, Proposed New FPAC
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MEMORANDUM
DATE:
February 20,2007
Agenda Item 2.A.2
TO: Honorable Mayor and City Council Members
FROM: Michelle Wolfe, City Administrator~
Sue Iverson, Finance Director :}iJ
SUBJECT: Formation of the Financial Planning and Analysis Committee (FPAC)
Background/Discussion:
Attached are draft guidelines and a Mission/Purpose for a proposed Financial Planning and
Analysis Committee. Council discussion is required to clarify the expected outcomes and
specific objectives of this committee. Discussion is also needed regarding membership and
Council/Staff liaison appointments.
Staff Recommendation:
Staff is requesting City Council feedback and direction about the formation, purpose, mission,
and specific objectives of this committee. Staff recommends that this committee review
financial policies as a resource to staff and the City Council. If Council is comfortable, staff will
finalize the attached guidelines for approval at a future Council meeting. Once Council approves
the guidelines and the proposed Ordinance 385 (relating to boards, committees, commissions,
and appointed bodies), staff can proceed with the recruitment process for this committee.
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Commission and Committee:
Established by the Arden Hills City Council:
Committee Name: Financial Planning and Analvsis Committec (FPAC)
General Puroose for Committees and Task Forces:
Thc overall purpose of the committees and task forces are to improve the value ofthe Arden Hills citizens'
property, increase the desirability of Arden Hills as a place to live or work, and to enhance/protect the
health and well-being of the citizens.
While the City Council and City Staff have the sole responsibility for activities with in thc City of Arden
Hills, from time-ta-time, they find it desirable, advantageous, and necessary to bring together residents of
Arden Hills in order to broaden and emich the discussion around possible decisions. As an example, the
City Council's ability to debate and discuss far-ranging alternatives is stifled by the risk that the mere
discussion of alternatives will engender them with undeserved merit. In addition, Arden Hills will always
seek to hire the most qualified and capable employees, but in doing so will frequently hire staff that is not
intimately connected to the Arden Hills neighborhoods. Therefore it is critical that the City create a
mechanism where the City Staff can get unfettered and uubiased reaction to their novel thoughts and ideas.
The Commissiou, Committee and Task Forces are established to broaden and enrich the content that will
ultimately be enacted or authorized by the elected City Council.
Mission/Puroose:
The Financial Planning and Analysis Committee's pmpose is to provide modeling and projections
surrounding the longer-term impact of current and near term decisions. Possible analysis include; build
versus lease decisions on future Fire/Police capital facilities/equipment; PMP fund balances and project
scheduling; Establishment of fee and license levels, Use of bonding capacity to accelerate projects where
the cost inflation would be greater than the financial costs; use ofTIF or bonding capacity to increase the
underlying property value in Arden Hills; use of foundation and outside funding resources; Other potential
topics include: investments, assessments, and payment structures.
Review of operating expenses and annual budget are explicitly excluded from the scope and responsibility
of this connnittee, provided however, that this connnittee will depend upon financial reports and actual
financial history ofthe City.
Expected Outcomes:
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Specific Objectives:
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Immediate Actions In-Process:
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Membershin (Five Persons)
Members whose terms expire December 2008-
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Members whose tem1S expire December 2009-
4. Chair
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Ex-Officio Members (if any)
2007 Council Liaison: David Grant
2007 Staff Liaison:
Susan Iverson
Meetine: Procedures:
1. Meetings will usually be held once per month, until the assigned purpose of the committee has
been accomplished.
2. Meetings will follow the Rules of Order established by the committee.
3. The agenda for the meetings will be established in conjunction with the staffliaisoD.
4. Monthly minutes will be maintained by the staffliaison and copies of the meeting minutes will be
provided to the City Council.
S. When actions by the City Council are required they will be submitted in the form of a motion with
a summary identifying the critical elements of the item. Reports, updates, and suggested policies
are not actionable by the City Council and a presentation to the City Council does not grant the
committee authority to proceed with their recommendation.
Expectations of FPAC Members:
1. The interests of Arden Hills and its residents are foremost.
2. PaI1icipation of FP AC members is key to their contribution:
. Members should be present and involved in meetings.
. Members should be actively engaged in discussing issues, sharing perspectives and
raising questions that are essential elements of "good decision-making".
. Effective participation derives from continually learning about Arden Hills' long-term
financial issues and political environment in which they exist This learning process
includes formal opportunities afforded by FP AC, as well as informal opportunities that
occur in the course of each member's activity.
. As a guideline, members should expect to spend 6 to 8 hours per month in their work on
the FPAC committee.
3. The FP AC is a group of peers-no single member has more standing or power than another.
4. Respect for the opinions of other members, and for those with whom the FPAC interacts; is a
hallmark of the committee's work. Members seek clarity in presenting their views, and represent
a sense of stewardship in all that they do.
5. FPAC members engage in continual self-assessment of their performance on the committee. As
needs arise, they seek education, input and the skills necessary to evaluate their performance.
6. The FPAC providcs an opportunity for the education of its members, both as a part of committee
meetings, and though access to outside educational events. Members are expected to actively
participate in these opportunities.
7. Somc of the FPAC's work involves subjective judgment, where there is not enough data to make
the decisions that are necessary. Members who are most successful in these decisions are those
who are aware of the values in their neighborhood, willing to engage in the discussion of values,
and respectful of those values held by other that might differ from their own.
8. By design the FPAC is composed of individuals with diverse perspectives and experience. The
committee benefits from these contrasts that this diversity engenders and seeks to improve the
decision making and actions that are necessary to understand the differences and resolve disputes
that arise during the discussion of issues and plans.