Committee’s yearly review of CAFR, announcement of work plan slated

Each year, the Benicia Finance Committee reviews the city’s Comprehensive Annual Financial Report, a document that covers more than a simple audit. The committee makes quarterly reviews of Benicia’s investments and approves a work plan that lists special projects it plans to study.

At tonight’s meeting of the City Council, the panel will hear Finance Committee Chairperson Michael Clarke describe his committee’s activities and review its work plan.

“In conjunction with input from City Council and city management, the committee develops a work plan consisting of finance-related projects the committee intends to study,” interim Finance Director Brenda Olwin wrote in an April 7 report to City Manager Brad Kilger.

“These projects are conducted in order to provide additional review and understanding regarding how staff addresses economic and fiscal conditions in the management of the city’s finances.”

Top of the work plan list is the review of a 10-year General Fund financial forecast. That forecast is being developed in conjunction with Benicia’s Sustainable Community Services Strategy, its intent to become more fiscally stable.

The committee also wants income statement reports for all of Benicia’s budgeted funds, and staff is working on that through its Sungard web server computer programs.

The panel wants an analysis of the Marina Enterprise Fund, an account that originally was expected to generate money, or at minimum break even, but so far has done neither. City employees are preparing a comprehensive analysis of the fund, and expect to have a response to an article written by former chairperson Dennis Lowry ready later this year.

The committee wants to compare actual operating results to the city’s water and wastewater rate studies, and may use the Fiscal Year 2013 audit to complete this task.

Discussion of the preparation of a long-term capital improvement plan is expected to be complete by summer, and a presentation of the California Public Employees Retirement Service’s path to sustainability should be available by fall, according to the work plan.

The committee received a report last month on the city’s solar operations, but not all the numbers on that project are available yet. A presentation of actuarial studies should take place before summer, according to the work plan.

Finally, the committee has asked for a presentation of cost allocation studies, which should be ready by May or June.

The committee has several ongoing study sessions, covering the review of the city’s annual financial report, how the city’s General Fund reserve is calculated and the status of the city’s unfunded liabilities.

The Council will vote whether to accept the work plan. It also will decide whether to confirm the formal change of the panel’s name from the Finance, Audit and Budget Committee to the Finance Committee.

In addition, the Council will decide whether to approve modifications to the panel’s mission, duties and structure. The committee is an advisory to the Council that reviews financial issues “that can be reasonably addressed by the City,” its policy states, and the Council can assign it urgent matters for examination.

The panel also is the citizen voice to the Council and staff about fiscal policy and processes, such as the city audit, budgets and monthly review of financial documents.

The committee’s makeup is five members appointed from the public, two Council members and the city treasurer. Members serve four-year staggered terms. It meets at 8 a.m. the fourth Tuesday of each month.

The Council will meet at 7 tonight in the Council Chamber of City Hall, 250 East L St.