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Financial Review Committee elects officers, forwards quarterly report and approves policy update
Summary
At its Nov. 10, 2024 meeting the Dana Point Financial Review Committee elected its chair and vice chair, forwarded the quarter-end financial report to City Council, and voted to update the infrastructure asset management policy, rescinding the community investment account policy. Key budget figures were presented.
The Dana Point Financial Review Committee on Nov. 10 elected its chair and vice chair, reviewed the city's quarter-end financial results and unanimously approved an update to the city's infrastructure asset management policy that rescinds the community investment account policy.
Finance staff reported that fiscal year 2023-24 closed with $52.2 million in revenues and $51.7 million in expenditures (or $44.7 million excluding $7.0 million in transfers). Staff estimated the city's ending fund balance at roughly $27.5 million and said unassigned general-fund balance ended about $12.3 million, approximately $9.0 million above the policy minimum of $3.3 million. "We ended the year in a good position to deal with the anticipated loss in TOT and sales tax," finance staff said.
Staff warned that one large hotel plans renovations that will reduce available rooms and is expected to lower transient occupancy tax (TOT) receipts; staff recommended holding an extra 3.5% of budgeted general fund revenue in reserve and transferring a portion of excess balance to the capital improvement program (CIP) to fund prioritized projects.
On policy, staff recommended folding community-investment-account language into Financial Policy 2.3.1 (Infrastructure Asset Management Policy), setting a new minimum unassigned balance of 5% of general-fund operating revenue, and rescinding Financial Policy 2.3.4 (Community Investment Account). Staff explained that previously designated sub-accounts (for example Lantern Village and Doheny Village receipts) would continue to be tracked but would be held as unassigned CIP funds to simplify accounting and to preserve flexibility.
Votes at a glance: the committee recorded unanimous 4-0 votes to elect the chair and vice chair, to approve the April 30, 2024 meeting minutes, to forward the quarterly financial report to City Council for receipt and filing, and to approve the infrastructure asset management policy update (rescind Financial Policy 2.3.4). Committee members asked staff for follow-up analysis on TOT projections, the proposed 5% minimum balance, and historical account treatment.
The committee also heard and discussed an actuarial update on the city's CalPERS liabilities (see separate item) and received an announcement that the city received the GFOA certificate of achievement for excellence in financial reporting. The meeting adjourned and the committee set its next meeting for Oct. 29, 2024, at 4 p.m.
