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HomeMy WebLinkAbout12 - Changes to the Finance CommitteeCITY OF F NEWPORT REACH City Council Staff Report January 13, 2015 Agenda Item No. 12 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Dave Kiff, City Manager— (949) 644 -3002, dkiff @newportbeachca.gov PREPARED BY: Dave Kiff, City Manager PHONE: (949) 644 -3002 TITLE: Resolution No. 2015 -5: Changes to the Finance Committee ABSTRACT: Mayor Selich and Council Member Peotter asked staff to offer some ideas to modify the City of Newport Beach's ( "City ") existing Finance Committee. This staff report discusses the current duties of the Finance Committee and the types and purposes of the various advisory boards, committees and commissions used in the City. Staff also contacted the Government Financial Officers Association ( "GFOA "), and researched the composition and roles /duties of citizen financial advisory commissions or committees ( "CFACs ") in four Southern California cities. We learned that CFACs are less common than a Finance Committee composed of members of the City Council. CFACs, on the other hand, can foster civic participation and can be valuable to the deliberative process. A CFAC is most effective when its purpose is well defined and adhered to, has the right people, and its members have or will receive adequate training. We note, too, that if additional citizens are involved in a Finance Commission or Committee, the Council might want to create a separate Audit Committee that meets once or twice a year which is ideally composed of members of the governing board. Currently, the Finance Committee also serves in the capacity of an audit committee which is commonplace among local governments. RECOMMENDATION: Adopt Resolution No. 2015 -5, A Resolution of the City Council of the City of Newport Beach, California Amending the Membership, Duties and Responsibilities of the Finance Committee, relating to modifying the membership, term, qualifications, purpose, and responsibilities of the Finance Commission, specifying whether the Resolution and backup material should include Path A or Path B under "Membership." FUNDING REQUIREMENTS: Required funding might vary depending on the composition, scope, duties, mandate and meeting frequency of the committee. We note that the implementation of the integrated finance system (ERP) consumes much of our available staff resources through October 2016, and that appropriately staffing a 12 -1 more active Finance Committee may require additional staffing or a reorganization to focus on the Committee's requests versus other programs. DISCUSSION: Background. The City's current Finance Committee was established by resolution on December 12, 1994 and is composed of three Council Members, all — including a chairperson — appointed by the Mayor and confirmed by the full City Council. The purpose and responsibilities of the Finance Committee are to: • Review and monitor events and issues which may affect the financial status of the City; • Make recommendations to the City Council regarding amendments to financial and budgetary policies and processes; • Review the City's budget and other fiscal matters; • Recommend for City Council approval and manage ongoing processes for setting goals to maximize revenues, minimize costs, and identify or review best methods to fund the City's major capital needs; • Review and recommend policies related to setting funding goals for major discretionary reserves; • Assess risk associated with debt usage; • Conduct audit conference meetings with auditors to provide independent review and oversight of the City's reporting processes and framework of internal control; and • To review annually the timing, means of financing, and fiscal impacts associated with funding the high - priority projects designated in the Facilities Financing Plan (See Attachment 1 for the resolution that established the Finance Committee). In the past five years, the Finance Committee met as indicated below to discuss a wide variety of topics including audit results, reserve policy review, investment performance review, the facilities financing plan, pension unfunded liability review, quarterly financial report results, and other topics. Fiscal Year Number of Meetings 2010 6 2011 11 2012 5 2013 8 2014 4 The Finance Committee met less frequently in 2014 to allow staff time to implement the City's new integrated financial system (referred to as the Enterprise Resource Planning or "ERP" software), which commenced in May of 2014 and is scheduled to continue through October of 2016. Although there were fewer meetings in 2014, the number of agenda items remained consistent with prior years. Collectively, Finance Department staff spends approximately 30 to 60 hours to prepare for, and participate in, each committee meeting depending on the nature and number of agenda items. The Committee has met in mid- to late- afternoons in one of the larger conference rooms at the Civic Center. Under City Charter Section 504(b), the City Manager is charged with preparing the annual budget, submitting the budget to the City Council for consideration, and administering the budget following its adoption by the City Council. The City Manager's budget role remains unchanged under whatever structure is proposed for the Finance Committee, as the City Manager's role is charter- defined, as is the Council- Manager form of government here in Newport Beach. Types and Purpose of Citizen Advisory Bodies Citizen advisory bodies may consist of boards, commissions or committees and serve in a wide variety of capacities. The common thread amongst the three is they are made up of volunteer citizens appointed by the City Council. The responsibilities of citizen advisory bodies may include, but are not limited to, the study of critical issues, taking public testimony, performing independent research, and reviewing staff reports and recommendations. These efforts prepare the advisory body to discuss, analyze, formulate, and forward well - developed, thoughtful recommendations to the City Council. The definition of a citizen advisory body differs among jurisdictions. Within the City, certain boards and commission are established by the City's Charter (e.g., Planning Commission, Board of Library Trustees, etc.), while other boards, 12 -2 commissions and committees are established by ordinance or resolution (e.g., Harbor Commission, Tidelands Management Committee, etc.). Pursuant to City Charter Section 700 the City Council may create boards or commissions by ordinance or resolution. Under City Charter Section 702 the membership of boards or commissions created by the City Council are appointed by the City Council, as a whole. Thus, if the City Council desires to provide for direct appointment of a citizen advisory body member by an individual Council Member, short of a Charter amendment, we recommend that the City Council consider a committee, rather than a board or commission. Committee appointments are governed by City Council Policy A -2, and /or the ordinance or resolution creating the committee. See Council Policy A -2 attached. What Other Cities Have Done. Staff contacted the GFOA and four Southern California cities known to have CFACs. Staff researched the composition of CFACs and conducted research to identify the purpose, benefits /drawbacks, powers, and typical duties of such commissions. See Attachment 3 for a summary of the current Newport Beach model compared to four known Southern California cities with a CFAC. GFOA & Local CPA Firms Staff spoke with the Senior Manager of Research at the GFOA who indicated that several public agencies make use of financial advisory commissions comprised of local citizens throughout the country. Although the GFOA has not conducted any formal surveys to determine how many cities use either elected or non- elected officials, it appears that such commissions nationally are most often comprised of elected officials. Staff also spoke to two local CPA firms specializing in local government audits who also confirmed CFACs are relatively rare. The Senior Manager at GFOA also indicated that the advantages of CFACs include relieving elected officials of fiscal and related administrative minutiae which allows them to focus on bigger picture policy issues, and having a body that is solely dedicated to maintaining a narrow focus on good financial management practices. Drawbacks include that CFACs can tend to micromanage City finances if their role is not carefully designed. Additionally and over time, there is a risk that elected officials could become less knowledgeable about important finance issues. Regardless of the financial commission's composition (elected vs. non - elected officials), the GFOA representative emphasized the importance of maintaining City Council representation alone for audit review purposes. An Audit Committee can be a subcommittee of the City Council that, according to GFOA's best practices, serves as a practical means for a City Council to provide independent review and oversight of the government's financial reporting processes, framework of internal control, and independent financial auditors. The City's Finance Committee (consisting of three City Council Members) currently fulfills the Audit Committee role. Staff identified and spoke to a few cities that currently or once used CFACs including the cities of Irvine, Huntington Beach, Redondo Beach and San Marcos. City of Irvine The City of Irvine (population 242,651) is a Charter City with five Council Members and a Finance Commission that is comprised of five citizens each appointed by one individual Council Member to serve a four -year term. The Finance Commission serves to give advice to the City Council regarding the funding of activities and programs; and reviews actual versus planned revenue and expenditure levels to help ensure efficiency. The Finance Commission also provides advice in financial planning and funding; reviews financial documents and proposals; reviews fiscal impact on contracts; reviews legislation that impacts city finances; and reviews service delivery. Because the Finance Commission meets twice a month, more than any of the cities analyzed, a significant amount of staff time is required to support the Finance Commission's activities, which include an ongoing review of budget amendments and contracts that exceed certain dollar thresholds. The Finance Department shares Finance Commission staffing 12 -3 responsibilities with other departments that regularly make presentations, answer questions, and bring forward finance related items for the Finance Commission's review, including the description of operating and capital budget variances that exceed certain dollar thresholds. The city currently has no designated Audit Committee, instead the entire City Council reviews the audit information. City of Redondo Beach The City of Redondo Beach (population 67,717) is a Charter City with seven Council Members and a Budget and Finance Commission that meets monthly and is comprised of seven citizens appointed by the Mayor and subject to ratification by the City Council. Each commissioner serves a four -year term. The Budget and Finance Commission serves to maintain a continuous study of sources of municipal revenue and methods of proper spending; assist the City Manager and City Council in financial planning; recommend methods of obtaining and financing permanent public improvements; and perform such other duties as directed by the City Manager or the City Council. Uniquely, the Redondo Beach Budget and Finance Commission is presented with the Budget, the annual Comprehensive Annual Financial Report, and other finance related information only after the City Council has reviewed and /or taken action on such items. Most CFACs review and make recommendations in advance of City Council consideration and action. Like the City of Irvine, the Finance Department shares the administrative role to provide staff support to the commission with other departments which routinely make presentations and answer commission questions. The city currently has an audit committee consisting of two Council Members and the City Manager. City of San Marcos The City of San Marcos (population 90,179) is a Charter City with five Council Members and a Budget Review Committee that meets monthly and is comprised of seven citizens and one alternate member that is appointed by the City Council as a whole. Each committee member serves a three -year term. The Budget Review Committee serves to review and discuss the status of each department's budget; consider cost saving measures to reduce or eliminate any possible deficit in annual budget proposals; conduct a thorough and analytical review of the annual Capital Improvement Budget and recommend to the Finance Director and City Council recommendations for a balanced budget and changes in capital project priorities as deemed appropriate. The committee mostly focuses on the General Fund and Capital Improvement Plan budget and is most active during the annual budget process. The Finance Department is solely responsible for providing staff support to the committee. Compared to the cities of Irvine and Redondo Beach, the committee's involvement in finance matters is less broad. The city currently has no designated audit committee. City of Huntington Beach The City of Huntington Beach (population 195,199) is a Charter City with seven Council Members. On February 7, 2011, the City Council merged two separate Boards; the Finance Advisory Board and the Investment Advisory Board, into a new consolidated Finance and Investment Advisory Board. The two boards consisted of seven City Council appointees each (one appointed by each Council Member) for a total of fourteen board members to fulfill the duties of the consolidated board. After the consolidation, the Finance Advisory Board continued with the goal of reviewing fiscal policy; annual financial audit including review of the Management Letter from the city's independent financial auditor; debt management; capital improvement plans and capital improvements budget; long term financial plans; new and increased revenue sources; and proposed state or federal legislation which impacts the city's finances. The information that follows was obtained from the City of Huntington Beach City Council meeting video transcripts and associated staff reports. It was anticipated that the consolidation of these two boards would result in greater staff productivity and efficiencies of time and effort. Following the consolidation of the two boards, it became clear that such a consolidation was not resulting in improved efficiencies as there were incongruent goals and functions of the two boards, resulting in less efficient use of board and 12 -4 staff time and resources. On October 17, 2011, the City Council voted to maintain the Investment Advisory Board and abolish the Finance Advisory Board for the following reasons: 1. Certain members of the Finance Advisory Board narrowly focused on the outcomes of previous City Council decisions rather than working constructively on current budgetary or financial issues. 2. Certain members of the Finance Advisory Board lacked any fundamental understanding of public finance thus requiring an inordinate amount of staff time to educate and explain basic concepts resulting in lengthy meetings and staff overtime. 3. Inefficiencies resulted in the loss of valuable board members Summary Committees with citizen representation can serve a number of valued purposes including: • Allow for greater citizen engagement. • Serve as a communication channel between elected officials and the community. • Bring a broad range of ideas and expertise to public decision making. • Provide training and experience for new leaders seeking elected office. The Local Government Citizen Advisory Boards Handbook indicates that "while it is desirable to foster civic participation, the boards created must be manageable, be adequately staffed, and serve a useful purpose." The handbook goes on to state that jurisdictions should adopt policies and procedures for their advisory bodies and require that essential basic issues be covered in the document that creates each body. Ultimately, if local governments are able to clearly communicate the purpose of a citizen advisory body in addition to finding the right people and providing them with training, these bodies can foster civic participation and be valuable to the deliberative process. Mayor Selich has proposed that the Council choose between two alternatives for citizen - members to the restructured Finance Committee. Briefly, these alternatives are: Path A. The Finance Committee would have seven (7) members as follows: 1. Each Council Member appoints one Committee member. 2. At most, three Council Members can appoint themselves. If there are more than three Council Members who want to be on the Committee, the Mayor chooses which three. 3 All Members have equal voting status. 4. The Committee selects the Committee chair. Path B. The Finance Committee would have seven (7) members as follows: 1. Three Council Members would be appointed by the Mayor, subject to approval by the full City Council. 2. Four "Citizen Advisors' would be recommended by the four Council members not on the Committee, and these four citizen advisors would be subject to approval by the full City Council. 3. Citizen Advisors have equal voting status. 4. The Mayor appoints the Committee chair, subject to confirmation of the full City Council. Under either path: • Council Members' terms would be indefinite, pending specific City Council action to replace them. • Citizen members' terms would last one year, but reappointments could be made annually. • Appointed members must be registered voters of the city, residents of the City, appointed by a Council Member, and it is recommended but not required that they be a CPA, CFA (Certified Financial Advisor), Business /Finance major or other such designation as may be appropriate. Additionally, Mayor Selich's recommendations include: • Moving meeting to later in the day, such as weeknight evenings not earlier than 6:00 p.m., and holding the meetings in the Council Chambers to allow greater resident participation and attendance. 12 -5 • Stating that the Committee would do a more detailed review of the budget prior to the City Manager's presentation of the budget to the City Council, and that the Committee's recommendations would be made public and forwarded to the full City Council. Generally, most of the other duties of the modified Committee would be similar to that provided by the current Finance Committee, although the changes describe the Committee's role regarding budget review, investment guidelines, and reserves. Please see Attachment A for a redline of the proposed changes. Attachment 8 is a "clean" version of the document, with a proposed resolution enacting the changes. We asked the City Manager to offer his thoughts on the proposed Committee, and he offered the following: "I welcome greater public involvement in the budgeting process. It remains the most impactful action that the City Council considers each year, and having more awareness of it as a policy document is a great thing. I appreciate the proposal's respect of the role that the Charter sets forth for the City Manager — that of preparing and presenting the Budget to the City Council — and know that this practice will continue. I urge those Council members not appointed to the Finance Committee to remain active in the Budget's consideration, as the Budget should consider all seven members' ideas and wishes within it, to the extent resources allow." ENVIRONMENTAL REVIEW: This action is not subject to the California Environmental Quality Act ( "CEQX) pursuant to Sections 15060 (c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Description Attachment A - Proposed Structure, Redline Attachment B - Resolution and Clean Version 12 -6 Attachment A IaI: /_1.IdatK01LAI LTA IaI=Id AUTHORIZATION: Established by Resolution No. 94 -110 adopted on December 12, 1994. Modified by Resolution No. 96 -100 adopted on December 9, 1996. Disbanded by Resolution No. 98 -32 adopted on May 11, 1998. Re- established by Resolution No. 2000 -103 adopted on December 12, 2000. Duties and membership amended by Resolution No. 2007 -21 adopted on April 10, 2007. Purpose and responsibilities amended by Resolution No. 2013 -32 adopted on April 9, 2013. Membership, qualifications and term of members, and purpose and responsibilities amended by Resolution No. 2015- adopted on January 13, 2015. MEMBERSHIP: To replace the above sentences, please choose between: Path A: Seven (7) total. Each Council Member must appoint one (1) committee member. A maximum of three (3) Council Members may appoint themselves. If there are more than three Council Members that wish to appoint themselves the Mayor shall determine which 3. All members have equal voting status. The Committee shall select the chairperson. Or Path B: Seven (7) total. Three (3) Council Members appointed by the Mayor subject to full City Council approval. Four (4) Citizen Advisors appointed by the Council Members not on the Committee subject to approval of the full City Council. Citizen Advisors have equal voting status. The Mayor shall appoint the chairperson subject to confirmation of the full City Council. Staff support shall be provided primarily by the City Manager and the Finance Director and by other staff as necessary. Meetings to be monthly or semi - monthly in the City Council Chambers, as required, on weeknight (M -Th) evenings no earlier than 6:00 PM to encourage public participation. MeetiRgS shall be Galled by the Gha!FpeFreR as Reeded TERM OF COUNCIL MEMBERS: Indefinite pending City Council action. TERM OF APPOINTED MEMBERS: Appointed Annually 12 -7 Attachment A QUALIFICATIONS OF APPOINTED MEMBERS: 1. Must be a resident of the city of Newport Beach 2. Must be a registered voter in Newport Beach 3. Must be appointed by a City Council Member 4. Recommended, but not required, that the appointee be a CPA, CFA or Business /Finance major or other such designation as may be appropriate. PURPOSE & RESPONSIBILITIES: A. Review and monitor events and issues which may affect the financial status of the City; B. Make recommendations to the City Council regarding amendments to financial and budgetary policies; C. In accordance with Sections 504 & 1101 of the City Charter, review the City Manager's proposed budget and give recommendations to the City Manager in advance of the budget's presentation to the City Council. The Committee's recommendations shall be provided in writing to the City Council along with the City Manager's presented budget. Review the on +{.,{ties Gf staff regaFd'Rg the . ., +, D. Recommend for Council approval, and manage an on -going process for measuring and setting goals designed to maximize the City's revenues consistent with existing taxation structures and inter- governmental funding opportunities, fee generation consistent with market rate charges for City provided services and market rate fees for utilization of City owned assets. Recommend to Council major initiatives to accomplish identified goals; E. Recommend for Council approval, and manage an on -going process for measuring and setting goals designed to minimize the City's cost to provide core services and required activities, consistent with the desired service level for residents and other internal and external customers. Recommend to Council major initiatives to accomplish identified goals; F. Review with staff on an annual basis the timing, means of financing, and fiscal impacts associated with funding the high - priority projects designated in the Facilities Financing Plan. After approval by the City Council, identify, review and annually recommend to Council the most advantageous methods to fund the City Council's approved Facilities Financing Plan; G. Identify, review and annually recommend to Council the most advantageous methods to fund the City's long term compensation and benefit program liabilities; 12 -8 Attachment A H. Review and recommend to Council policies related to the setting of funding goals for FA GF diSGFetieRa4 y reserves, and review on -going progress related thereto; I. Review the structure and documentation of any proposed debt financing to assess the risk associated with debt usage; and J. Conduct audit conference meeting(s) with the auditors to provide independent review and oversight of the City of Newport Beach's financial reporting processes, framework of internal control, and to provide a forum in which auditors can candidly discuss concerns in the absence of staff; and K. Recommend for Council approval and monitor and review activities related to Investment Guidelines for City Reserve and investment funds. 12 -9 Attachment B RESOLUTION NO. 2015- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA AMENDING THE MEMBERSHIP, DUTIES AND RESPONSIBILITIES OF THE FINANCE COMMITTEE WHEREAS, the City Council of the City of Newport Beach ( "City ") has a long and established history of being good guardians and stewards of the public's money; WHEREAS, appropriations, expenditures and other budgetary matters are a primary concern of the City Council; WHEREAS, the City Council has adopted various policies regarding financial matters; WHEREAS, the City Council has adopted policies regarding income property and annexations, which may have an impact on the City's finances; WHEREAS, on December 12, 1994, the City Council adopted Resolution No. 94- 110 establishing the Finance Committee, whose duties and responsibilities have been amended throughout the years to further protect and safe guard the public's money; WHEREAS, the existing Finance Committee is composed of three City Council Members charged with a variety of tasks, including, but not limited to: reviewing and monitoring events and issues which may affect the financial status of the City; and making recommendations to the City Council regarding amendments to financial and budgetary policies; and WHEREAS, the City desires to amend the Finance Committee to: (1) add citizen members; (2) describe the qualifications of the citizen members; (3) clarify the budget review role of the Finance Committee; (4) set a meeting schedule; (5) create an appointment process to the Finance Committee; and (6) generally maintain the duties assigned to the existing Finance Committee. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council hereby amends the Finance Committee as described in Attachment 'A" which is incorporated herein by reference. 12 -10 Attachment B Section 2: The City Council hereby repeals all resolutions related to the Finance Committee that are in conflict with this resolution. Section 3: If any section, subsection, sentence, clause or phrase of this resolution is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution and each section, subsection, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases be declared unconstitutional. Section 4: The recitals provided in this resolution are true and correct and are incorporated into the substantive portion of this resolution. Section 5: The City Council find the adoption of this resolution and the amendment of the Finance Committee is not subject to the California Environmental Quality Act ( "CEQA ") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Section 6: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting this resolution. ADOPTED this day of 2015. Edward D. Selich Mayor ATTEST: Leilani I. Brown, City Clerk Attachment A: Amended Finance Committee Description 12 -11 Attachment B FINANCE COMMITTEE AUTHORIZATION: Established by Resolution No. 94 -110 adopted on December 12, 1994. Modified by Resolution No. 96 -100 adopted on December 9, 1996. Disbanded by Resolution No. 98 -32 adopted on May 11, 1998. Re- established by Resolution No. 2000 -103 adopted on December 12, 2000. Duties and membership amended by Resolution No. 2007 -21 adopted on April 10, 2007. Purpose and responsibilities amended by Resolution No. 2013 -32 adopted on April 9, 2013. Membership, qualifications and term of members, and purpose and responsibilities amended by Resolution No. 2015 -_ adopted on January 13, 2015. MEMBERSHIP: Path A: Seven (7) total. Each Council Member must appoint one (1) committee member. A maximum of three (3) Council Members may appoint themselves. If there are more than three Council Members that wish to appoint themselves the Mayor shall determine which three. All members have equal voting status. The Committee shall select the chairperson. or Path B: Seven (7) total. Three (3) Council Members appointed by the Mayor subject to full City Council approval. Four (4) Citizen Advisors appointed by the Council Members not on the Committee subject to approval of the full City Council. Citizen Advisors have equal voting status. The Mayor shall appoint the chairperson subject to confirmation of the full City Council. Staff support shall be provided primarily by the City Manager and the Finance Director and by other staff as necessary. Meetings to be monthly or semi - monthly in the City Council Chambers, as required, on weeknight (M -Th) evenings no earlier than 6:00 PM to encourage public participation. TERM OF COUNCIL MEMBERS: Indefinite pending City Council action. TERM OF APPOINTED MEMBERS: Appointed Annually QUALIFICATIONS OF APPOINTED MEMBERS: 1. Must be a resident of the city of Newport Beach 2. Must be a registered voter in Newport Beach 3. Must be appointed by a City Council Member 12 -12 Attachment B 4. Recommended, but not required, that the appointee be a CPA, CFA or Business /Finance major or other such designation as may be appropriate. PURPOSE & RESPONSIBILITIES: A. Review and monitor events and issues which may affect the financial status of the City; B. Make recommendations to the City Council regarding amendments to financial and budgetary policies; C. In accordance with Sections 504 & 1101 of the City Charter, review the City Manager's proposed budget and give recommendations to the City Manager in advance of the budget's presentation to the City Council. The Committee's recommendations shall be provided in writing to the City Council along with the City Manager's presented budget. D. Recommend for Council approval, and manage an on -going process for measuring and setting goals designed to maximize the City's revenues consistent with existing taxation structures and inter- governmental funding opportunities, fee generation consistent with market rate charges for City provided services and market rate fees for utilization of City owned assets. Recommend to Council major initiatives to accomplish identified goals; E. Recommend for Council approval, and manage an on -going process for measuring and setting goals designed to minimize the City's cost to provide core services and required activities, consistent with the desired service level for residents and other internal and external customers. Recommend to Council major initiatives to accomplish identified goals; F. Review with staff on an annual basis the timing, means of financing, and fiscal impacts associated with funding the high - priority projects designated in the Facilities Financing Plan. After approval by the City Council, identify, review and annually recommend to Council the most advantageous methods to fund the City Council's approved Facilities Financing Plan; G. Identify, review and annually recommend to Council the most advantageous methods to fund the City's long term compensation and benefit program liabilities; H. Review and recommend to Council policies related to the setting of funding goals for reserves, and review on -going progress related thereto; I. Review the structure and documentation of any proposed debt financing to assess the risk associated with debt usage; 12 -13 Attachment B J. Conduct audit conference meeting(s) with the auditors to provide independent review and oversight of the City of Newport Beach's financial reporting processes, framework of internal control, and to provide a forum in which auditors can candidly discuss concerns in the absence of staff; and K. Recommend for Council approval and monitor and review activities related to Investment Guidelines for City Reserve and investment funds. 12 -14