LEGISLATIVE, FINANCE AND ADMINISTRATION COMMITTEE

The Legislative, Finance, and Administration Committee meeting was held on March 7, 2005, at 6:15 p.m. with Councilman Slavin presiding in the absence of Chairman Salters. Members present were Mr. Hogan and Mr. Shelton. Mr. Shevock was absent. Members of Council present were Mr. Carey, Mr. Pitts, Mr. Sadusky, Mr. Ritter, Mr. Ruane, and Council President Williams. Mayor Speed was also present.

AGENDA ADDITIONS/DELETIONS

Mr. Hogan moved for approval of the agenda as presented, seconded by Mr. Shelton and unanimously carried.

Comprehensive Annual Financial Report for Fiscal Year Ended June 30, 2004

In accordance with Section 46 of the City Charter, the City's financial books are audited by independent auditors each year. The Finance Director/Treasurer, Mrs. Mitchell, submitted the Comprehensive Annual Financial Report (CAFR) for Fiscal Year Ended June 30, 2004. It was noted that all financial transactions were audited by the selected C.P.A. firm of Faw Casson & Company, whose opinion has been included in the report. The City has received the Award of Excellence in Financial Reporting from the Governmental Finance Officers Association of the United States and Canada (GFOA) for the last 19 years.

Mrs. Mitchell gave a Power Point Presentation which highlighted the key points of this year’s CAFR.

Mr. Frank Tenusak, 880 Schoolhouse Lane, noted that there would be a significant budget impact in 2008 due to the post-retirement (medical) benefits and requested staff to quantify the range of significance and questioned if there is any ability to create an anticipated reserve at this time so that the impact in 2008 would be less significant.

Responding, Mrs. Mitchell explained that the City has taken a pro-active approach to address the post-retirement (medical) benefits. She reiterated that for the year ended June 30, 2004, $1.4 million has been appropriated to the post-retirement benefits fund and that an additional $900,000 is being budgeted for 2005. To quantify the liability, Mrs. Mitchell stated that in accordance with the preliminary analysis, the impact is estimated at $23 million.

Since two (2) members of the committee were absent, Mr. Slavin suggested that this matter be forwarded to City Council for action.

Mr. Hogan moved for adjournment, seconded by Mr. Shelton and unanimously carried.

Meeting Adjourned at 6:35 P.M.

                                                                                    Respectfully submitted,

                                                                                    Timothy A. Slavin

                                                                                    Acting Chairman

TS/jg

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