Finance Committee Agenda and Packet 2019 01 14

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City Council Finance Committee Meeting Minutes 11/19/18 Page 5 of 7 Tax Manager Penney Bolte presented the month -end and quarter -end sales tax reports to the Finance Committee for the period ending September 30, 2018. Manager Bolte stated that there was a typo in paragraph 3 of her communication, and that the last sentence should read, "Excluding audit revenue, sales tax is trending 9% above 2017 YTD." Finance Committee Chairperson Maloney asked to confirm that the revenue and percentages included in the reports included the new Recreation & Senior Center sales/use tax. Director Watson and Manager Bolte confirmed, stating that the new Recreation Center tax represents an approximate 4.3% increase in the City's sales and use tax revenue for 2018. Finance Committee Member Lipton stated that he feels there is "a lot of noise" in the Sales Tax Reports. Member Lipton stated that he feels the revenue is being inflated by damage repairs from the recent hail storm, and that revenue is much weaker than what is being represented in the reports. Tax Manager Bolte stated that she tries to convey sales and use tax anomalies in her written communication to the Committee each quarter. Member Lipton stated that he is interested in receiving information on economic variables that would assist the Finance Committee in fiscal planning. Tax Manager Bolte stated that she would provide the Finance Committee some additional reporting options for discussion in February when she presents the year- end report. The reports and corresponding narrative can be located in the packet of the November 19, 2018 Finance Committee Meeting. INTERNAL CONTROL EVALUATIONS FOR OFFSITE REVENUE COLLECTION AREAS Finance Director Kevin Watson presented the proposed engagement letter submitted by the City's auditors Eide Bailly for Finance Committee review. Director Watson stated that this will be a separate, more comprehensive review of four main revenue collection areas of the City including the Recreation Center, Library, Golf Course and Municipal Court. The fee for this review is $9K and must be approved by City Council. The Finance Committee Members expressed their full support of the review, and recommended the proposal be presented to the full Council. The reports and corresponding narrative can be located in the packet of the November 19, 2018 Finance Committee Meeting. 6