19D - UPDATE FEDT COUNCIL CMT - Laserfiche WebLink

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Update on Finance, Economic Development, and Technology Council Committee Related Items April 5, 2016 Page 2 Report and Agreed Upon Procedures related to the City's internal processes including the Investment Policy. A copy of the RFP was posted /advertised on the City's Planet Bids site viewed by approximately forty audit firms such as KPMG, its current independent auditor MGO, and other regional and national firms. The City was in receipt of six proposals including its current auditor MGO. The proposals were evaluated to determine if they met the requirements noted in the RFP. Upon evaluation three audit firms have been selected for interviews to further discuss their technical experience /qualifications and to confirm their capacity in providing the service. Staff is scheduled to recommend an audit firm at the May 3, 2016 City Council meeting. Budget Update In accordance with the Budget Calendar approved by the City Council on December 5, 2015, staff has completed its Sunshine Ordinance and Capital Improvement Program Outreach presentations. Additionally, the Finance Department has met with all City Departments to provide an analysis on current year spending (budget versus actual) and discuss parameters for the FY 2016 -17 proposed budget. Staff is scheduled to present the following items at the April 19, 2016 City Council meeting: 1. Preliminary FY 2015 -16 Budget Status 2. General Fund One -Year Forecast and Four -Year financial projections 3. Present the City Manager's Trial Budget 4. Preliminary Capital Improvement Program Credit Rating Overview On February 4, 2016, Standard & Poor's (S &P), a nationally recognized rating agency, issued the City a "AX general credit rating. To form a basis for their rating, S &P cited the City's strong financial and budgetary performance, specifically referencing the operating surplus achieved by its general and remaining governmental funds along with maintenance of an operating reserve totaling 32% of its operating expenditures. Additionally, S &P also indicated the City's strong management and institutional framework as a result of its development of its one -year forecast and four -year financial projection and robust financial policies. Procure America Update In late 2013, the City contracted with Procure America to identify and implement measures to generate energy cost savings. Specifically Procure America would review the City's gas and electricity billings to determine if the billings were appropriate under applicable utility company tariffs and regulations, to assess whether billing errors had occurred, and to identify billing rate schedules that may be more cost - effective for the City. Of the City's 1,223 Southern California Edison (SCE) service accounts, Procure America identified 32 service accounts that could benefit from a change in their respective service account billing rate schedule, consisting of various Parks and Recreational facilities, Traffic Signals and Water Wells. To date, Procure America has generated $51,913.14 in energy savings by recommending the City switch its current SCE billing rate schedules for various facilities. City 19D-2