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Coaching Corner

Editor’s Note: In the previous feature column of the Coaching Corner, retired Finance Director and CSMFO Senior Advisor Mary Bradley brought us valuable insights on the dizzying pace of change in the profession and how CSMFO is uniquely situated to keep us all in the loop.

This column focuses on the importance of the CSMFO network, and how being involved creates pathways to success both individually and collectively. This Coaching Corner article is brought to you by Drew Corbett, Assistant Finance Director with the City of Sunnyvale. Drew began his municipal finance career in 2005 after working in the private sector for several years. Hired by the City of Sunnyvale as a Budget Analyst, Drew now serves as that agency’s Assistant Director of Finance, overseeing the Budget, Accounting, Payroll and Accounts Payable functions. His message for success is deceptively simple: Be involved!

CSMFO: It’s Not Just for Accounting Classes

By Drew Corbett, Assistant Director of Finance for the City of Sunnyvale and CSMFO Board Member

It is a pleasure to be sharing information and insights on my experiences with the CSMFO network of professionals and resources, and most importantly how these interactions have broadened my knowledge of California municipal finance, increased and strengthened my professional relationships, and assisted in my career development.

Like most of you, my introduction to the world of California municipal finance was met with a bewildering array of governmental accounting rules, complex and sometimes conflicting regulations, and the tangled web that is the state-local fiscal relationship. My first step was to hire a professional assistant to show me the ropes! In all seriousness, the best advice I could have received came from my supervisor, who encouraged me to join CSMFO and sign up for Introduction to Government Accounting. So, that’s what I did.

Sometime between attending my first annual conference and immersing myself in the weekend training program, I received the next bit of encouragement: Join a CSMFO committee. So I did. The committee was Career Development, and my involvement in it has led me in other directions, including an opportunity to serve on the CSMFO Board of Directors.

In between, I have had the opportunity to attend timely and informative conference calls, webinars and conference programs as both participant and presenter, and work closely with a very talented group of people highly dedicated to promoting excellence in financial management.

If CSMFO’s educational offerings have been indispensable in learning the ropes of municipal finance, the relationships forged over the past several years have been invaluable in my professional development. I encourage you, as I was encouraged, to be involved in all that CSMFO has to offer.

 

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CalPERS Rate Changes Approved and More Expected

Just as the pension community is trying to understand effects of the new AB 340/PEPRA legislation, CalPERS has three big changes on the horizon. Each of these changes would increase employer contribution rates. The three changes and probability of implementation are:

• New amortization and smoothing methods (adopted)
• Reduced discount rate (likely)
• Increased life expectancy projection (expected).

These changes are not the result of benefit increases. Rather, they are the actuary’s attempt to better anticipate the true long-term cost of current benefits, and to fund for them in a balanced way that produces smooth contribution rates and does not defer costs to the future.

1. New CalPERS Amortization Periods and Smoothing Methods, Effective FY 2015/16

The proposed new actuarial methods presented by Chief Actuary Alan Milligan were adopted at the April 17, 2013 CalPERS Board meeting.

• What did the Chief Actuary recommend?

– Smooth employer contribution rates directly, rather than smoothing asset values and hoping that will produce smooth contribution rates:

• Use market value of assets to set contribution rates, eliminate asset corridor and actuarial asset value
• Set fixed amortization periods for future gains and losses – 5-year ramp up plus 20 years full payment plus 5-year ramp down (will include the difference between market and actuarial value of assets at 6/30/2013)
• Set fixed amortization periods for future assumption changes – 5-year ramp up plus 10 years full payment plus 5-year ramp down
• Do not smooth the Normal Cost.

– Convert all existing rolling amortization periods to fixed periods.

• What will be the result?

– Year-to-year changes in rates will be somewhat higher in most years, but lower in years with extreme market events.
– Funded status will improve faster – all gains/losses will be fully amortized and paid for 30 years after they occur.
– Employer rates are going up, beginning in 2015/16. CalPERS provided 2 sample public agency plan projected rates:

Sample Plan		Current Method’s Rate		Proposed Method’s Rate		5-Year Net Increase*
		2015/16	2019/20	2015/16	2019/20
Miscellaneous		16.8%	19.6%	17.8%	23.0%	6.2%
Safety		29.3%	33.9%	30.8%	39.5%	10.2%

* The change from the current method’s 2015/16 rate to the proposed method’s 2019/20 rate.

– A possible change to level dollar amortization for pooled plan side funds, which would result in increased short-term side fund payments. The new policies provide flexibility for the CalPERS actuaries to do this.

• When will the change happen?

– Employer rates will first be affected for 2015/16. CalPERS is planning to provide employers with cost increase estimates in the upcoming valuation reports (October or November of 2013).

• Why change methods?

– Current asset smoothing provides for very stable rates in most years. However, an extreme market event would mean a large change in the employer contribution rate – a result no one wants.
– Recent studies have shown very slow progress toward full funding for many plans.
– Having two asset measures (market and actuarial) and two funded status measures can be confusing and even misused; CalPERS thinks the process should have greater transparency.
– New methods would better align with new accounting standard GASB 68, effective in 2014/15. For many plans, GASB 68 methodology would project a shortfall in assets attributable to current plan members under the current contribution policy, which would require disclosure and use of a reduced discount rate.

2. Reduced Discount Rate Assumption, Likely Effective FY 2015/16

Results of CalPERS’ asset/liability study in November-December 2013 will yield more information about possible direction of the discount rate assumption. The CalPERS actuaries’ economic assumptions study will be completed in early 2014.

• What is the probable outcome?

Upon completion of the study, the Chief Actuary said he expects to recommend the Board drop the discount rate 0.25% or 0.5%, and that it likely will adopt a 0.25% drop, to 7.25%. The corresponding increase in employer contribution rates would be phased in over 5 years, with roughly half the impact in the first year. This will be on top of the rate increase from changing actuarial methods described above.

• How much will rates go up by changing the discount rate?

To gauge magnitude, employers can refer to Appendix D-3, Analysis of Discount Rate Sensitivity, in their valuation reports for the increase from a 1% drop in discount rate. Suppose this decrease resulted in an 8% contribution rate increase. If the actual discount rate drops 0.25%, the contribution rate will rise roughly 2% (or ¼ of 8%), with about 1% (from higher Normal Cost and a portion of amortization of additional unfunded liability) effective the first year and the remaining 1% (remaining amortization of additional unfunded liability) phased in over the next 4 years.

3. Increased Projected Life Expectancies Assumption, Likely Effective FY 2015/16

CalPERS will also be looking at demographic actuarial assumptions in a study to be completed in early 2014. The Chief Actuary commented he does not expect many demographic assumption changes from the experience study. However, he does expect to recommend improved future mortality rates. A person age 70 today is anticipated to live longer than someone that age would have lived 30 years ago. Current CalPERS assumptions are based on recent data, but do not take this future longevity improvement into account. The Chief Actuary will almost certainly recommend changing the mortality assumptions. Since retirees will be projected to live longer (and collect their pensions longer), employer contribution rates will go up.

• How much will rates go up for a change in life expectancies?

The Chief Actuary noted employers can expect a roughly 2% to 4% increase in their rates due to the mortality change. In general, Miscellaneous plans will be at the range’s lower end, Safety at the higher end. Plans with a higher volatility index will be higher than average; those with a lower index will be lower than average. About half of the total rate increase (from higher Normal Cost and a portion of amortization of additional unfunded liability) will occur in the first year, with the increase’s second half (remaining amortization of additional unfunded liability) phased in over the next 4 years. This increase will be on top of both rate increases described above.

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What can employers do?
Options to reduce employer costs are limited. PEPRA removed the stipulation that employee cost sharing (of the employer cost) be linked to a benefit improvement, so there is no longer any limit to the employee contribution that can be bargained.

Most important, employers should:

• Understand the impact of these proposed changes and build them into their budgets as soon as possible
• Be aware of these future increases when they sit down at the bargaining table.

To discuss details of how these changes could affect a specific plan, contact CalPERS-Issues@bartel-associates.com.

 

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Welcome New CSMFO Members!

• Eden Alomeri, Asst. City Treasurer/Acctg Rev Mgr, Oxnard
• Joseph Arch, President/CEO, JJACPA,Inc.
• Chris Constantin, Finance Director, Chico
• Pam Derby, Senior Management Consultant, CPS HR Consulting
• Greg Fankhanel, Partner, Van Lant & Fankhanel, LLP
• Michael Frost, Deputy Director, Marin County Public Works
• Jean Ibalio, ERP System Administrator, Anaheim
• Lori Koh, Debt Manager, Long Beach
• Sharon Kreinop, Administrative Assistant, Helendale CSD
• Greg Kunath, Senior Account Executive, Superior Press
• Jevin Kusnitzow, Accountant I, Hawthorne
• Jason Kwan, STUDENT, CSULA, ELAC
• James Lanzarotta, Partner, Moss Adams LLP
• Nancy Lassey, ACCOUNTING SUPERVISOR, Lake Elsinore
• Jennifer Max, Finance & Administrative Services Analys, San Juan Water District
• Marcie Medina, Assistant City Controller, Long Beach
• Matt Michaelis, Administrative Services Manager, City of Marysville
• Danielle Mitchell, Financial Controls Manager, Long Beach
• Benjamin Montgomery, Neighborhood Services Manager, Chino Hills
• Lorinda Odell, Accounting Manager, Sacramento Regional Fire/EMS Communications Center
• Raul Purificacion, Finance Manager, La Puente
• Daniel Thurber, Investment Manager, Long Beach
• John Whitehouse, Manager, Christy White Accountancy Corporation
• Brian Whitworth, Senior Vice President, First Southwest Company
• Genie Wilson, Treasury Manager, Santa Barbara

 

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Education Opportunities

Introduction to Government Accounting
– May 23, 9:00 a.m. – 4:30 p.m.

• Ahmed Badawi

Introduction to Government Accounting
– June 12, 9:00 a.m. – 4:30 p.m.

• Ahmed Badawi

Intermediate Governmental Accounting
– June 18, 9:00 a.m. – 4:30 p.m.

• Susan Mayer

 

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Chapter Meetings

CSMFO East Bay & CMTA Joint Meeting
– May 10

San Gabriel Valley Chapter Luncheon
– May 15
Guest Speaker: Kurt Shadle, Tower Capital Management

CSMFO Monterey Bay and CMTA Div 4 Joint Meeting
– May 16

Central Valley Chapter Meeting
– May 16
Guest Speaker: Stephen Qualls, Central Valley Regional Public

Inland Empire & CMTA Div 8 Meeting
– May 23
Guest Speaker: Laura Franke, Public Financial Management, Inc.

Channel Counties Chapter Meeting
– May 30
Guest Speaker: Michael Coleman from the City of Camarillo Public Library

 

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Career Opportunities

CSMFO provides government finance professionals with numerous resources for enhancing and advancing their careers. Visit the job opportunities page of the CSMFO website for a list of current job openings.

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Successor Agency Cash Flow Tips

By: Alexa Smittle and Tara Howard, Rosenow Spevacek Group, Inc. (RSG)

PMany redevelopment successor agencies around the state are facing cash shortages for a multitude of reasons and are looking for solutions to help fill the gap. Successor agency income is limited to two, roughly equal, distributions from the county, that are swept away if not needed immediately in the following six-month period. Though solutions to this problem are limited within the confines of the Dissolution Act and the implementing actions of the State Department of Finance, some successor agencies have found success with the following approaches to these short-term cash flow issues:

1. The simplest solution for cash flow shortages may be a loan from your general fund to the successor agency. Careful consideration should be executed to ensure that funds are available and that the successor agency will receive sufficient revenue in the future to repay the loan. The loan should be documented well and must be approved by Oversight Board. These seem to work best in situations where one-time cash flow issues are present.

2. Some successor agencies have found success either creating bond reserves or receiving DOF approval to divide large principal payments over both ROPS periods. A long-term cash flow will help you be ready for semi-annual shortages that occur when principal payments are due or balloon payments appear.

3. Don’t miss the deadline to file a notice of insufficient funds with your county auditor-controller, which is May 1, for the ROPS 13-14A period. The county auditor-controller has the ability to take funds paid into the successor agencies RPTTF (e.g. DDR revenue, proceeds from asset disposition, residual revenue, etc.) and allocate them back to the successor agency to cover cash flow shortages. Timing is everything – this must be done before the funds are disbursed. Many counties are unsure how to react to these filings, so be sure to walk them through the process.

4. If you have property assets to dispose of, push forward on your Property Management Plan so it can be submitted to DOF immediately after your finding of completion. If approved, you can liquidate property and cover cash flow shortages with the proceeds.

Alexa Smittle, Senior Associate, and Tara Howard, Associate, are advisors to several dozen successor agencies in California and active contributors on the California Redevelopment Association technical committee and other professional organizations engaged in assisting communities finance and implement community development programs.

 

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Resources for Budget Season Available from ILG

The Institute for Local Government offers a wealth of free resources to help local agencies engage their residents in the budgeting process.

There are many good reasons to include the public in discussion about local budgeting. Such involvement can:

• Better inform residents about local agency budgets, including revenues, expenses and challenges.
• Generate support for workable budget solutions in light of local priorities, needs and constraints.
• Through transparent and inclusive processes, sustain and grow public trust and confidence in the budget decision-making process and decision-makers.

Resources include:

• Publications, best practices and reports on how local agencies can engage residents to address local budgeting-related issues: http://www.ca-ilg.org/public-engagement-best-practices/engaging-public-budgeting.
• Case stories highlighting specific approaches local agencies have used to successfully engage residents in the budget process: http://www.ca-ilg.org/public-engagement-case-stories/budgeting-california-stories.
• Nuts and bolts information on where local agency resources come from and questions to ask in the budget process: http://www.ca-ilg.org/budgeting-finance. There is also a piece on ways to use one’s agency website to share financial information, along with other local agency information: http://www.ca-ilg.org/post/local-agency-website-transparency-opportunities

Want to stay up to date on the Institute’s public engagement offerings? Sign up for the Institute’s e-newsletter at http://www.ca-ilg.org/public-engagement-1.

Does your community have a budget-related public engagement story to share? Feel free to share with us at: http://www.ca-ilg.org/post/share-your-agencys-public-engagement-story

The Institute for Local Government values your feedback on resources and how we can best serve your needs. If you have questions, comments or suggestions, please contact Katelyn Downey at kdowney@ca-ilg.org

 

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Save the City Business Tax Program!

The California Municipal Revenue and Tax Association ask for your city’s support for SB 211 (Price). This bill extends the life of the Franchise Tax Board’s City Business Tax program, which has significantly benefited participating cities over the years. By obtaining free FTB listings of local business-related tax filers, cities have identified thousands of unlicensed businesses in their jurisdictions and collected past due business license revenues. The 17 cities that have reported their results to CMRTA have collectively raised well over $60 million.

Unfortunately this program is scheduled to sunset at the end of 2013, so we need your support to keep it going. If you would like help save the City Business Tax program or learn more about it, please contact CMRTA President David McPherson at (510) 238-6650 or DMcPherson@oaklandnet.com. CMRTA will provide a template letter of support for SB 211 to be sent to key legislators.

 

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CSMFO’s Accounting and Fiscal Policy Classes

CSMFO offers Introductory, Intermediate Governmental Accounting and Fiscal Policy Training classes throughout the year. Each class is taught separately by highly respected instructors. We are thankful to our instructors for their time and commitment. One of our long time instructor’s, Kathryn Beseau, for the Intermediate Governmental Course, retired and we want to thank her for her years of service to CSMFO. In February the Board approved a new contract with Susan Mayer who will assume the role of instructor. We are excited to have her on board to teach this important intermediate course, and will begin to schedule courses soon. We have also been busy scheduling courses for the upcoming years but we are still looking for host agencies. To date, we are excited to offer the following Accounting and Fiscal Policy Classes. Please look to see where you or your staff can benefit from these courses.

Introduction to Government Accounting – Instructor Ahmed Badawi

City of Camarillo – May 1, 2013

City of Ceres – June 19, 2013

Power of Fiscal Policies / Long Term Financial Planning – Instructor Bill Statler

City of Agoura Hills – April 11, 2013

City of Riverside – May 9, 2013

Coachella Valley Water District – September 12, 2013

City of Lakeport – October 10, 2013

Interested in Hosting? Here are the requirements:

The accounting classes are appropriate for individuals that have some accounting background, but may be new to the government sector or for employees who have recently assumed responsibility for financial and accounting reporting. The classes are also appropriate for anyone interested in brushing up on basic government accounting skills. Once a basic understanding of accounting concepts is reached, these concepts can easily be applied to the unique requirements of the governmental area.

Host site requirements for the accounting classes include:

• A minimum of 20 registrants
• Seating for 60 participants with tables and chairs
• One rectangular table up front for speaker
• Table and chair in back for registration
• ***Room open and available at 8:00 a.m. for set-up (*** 7:30 a.m. for Intermediate classes)
• Parking alternatives for up to 60 participants, preferably free parking
• A computer with a remote to advance PowerPoint slides
• A port to allow for a USB flash drive
• A screen and projector

The host site will need to provide lunch (with beverages) and light morning/afternoon refreshments for the attendees. The host site will be reimbursed actual costs up to $15 per attendee, including the instructor, by CSMFO.

The Fiscal Policy Training classes are offered as half-day or one-day sessions. Good times come and go, but your values shouldn’t – which is what fiscal policies are all about. Setting clearly articulated fiscal policies builds a strong foundation for protecting your agency’s long-term fiscal health. As recent economic events have shown, no agency is immune to economic downturns. But agencies with clear fiscal policies in place with a tradition of following them have a significant strategic edge over those that don’t. Policies make tough decisions easier by providing guidance both when times are good by preventing problems to begin with, as well as when the inevitable tough times do arrive.

Host site requirements for the fiscal policy training classes include:

• A minimum of 10 registrants
• Seating for 60 participants with tables and chairs
• One rectangular table up front for speaker
• Table and chair in back for registration
• ***Room open and available at 7:30 a.m. for set-up (*** 12:30 p.m. for afternoon sessions)
• Parking alternatives for up to 60 participants, preferably free parking
• A computer with a remote to advance PowerPoint slides
• A port to allow for a USB flash drive
• A screen and projector
• Location convenient to lunch options for attendees (preferred)

The host site will NOT need to provide lunch or refreshments for the attendees. Attendees are on their own for lunch.

For all classes, the host site gets two free attendees. Unless otherwise provided by the hosting agency, one of the attendees will be designated to registering participants, checking room set-up, assisting the presenter, assisting with food and assisting with set-up as needed.

CSMFO will handle the online registrations and fees for the classes.

CSMFO and the host site will be responsible for marketing and promoting the courses. The host site is strongly encouraged to market and promote the courses to local agencies and chapters to maximize attendance.

If you are interested and able to host any of the classes in 2013, or for more information please contact Margaret Moggia, Board Liaison to Career Development Committee, at margaretm@westbasin.org.

 

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Coaching Corner

Elected officials and the public demand clear, effective budget communications. Don’t miss this opportunity to learn best practices — just in time for your budget presentations. Scott Catlett and Ken Brown earned rave reviews for this session at the CSMFO Annual Conference. Now, you and your staff can benefit from it.

“Best Practices in Communicating Your Budget Effectively” — webinar
10:00 – 11:30 a.m. PT, Wednesday, April 24, 2013
CSMFO Coaching Program
*** Advance registration required for this no-charge webinar: https://www1.gotomeeting.com/register/818942704

Panel topics:

1. The problem with budget documents
2. Suggested solutions
3. The Riverside approach
4. The Irvine approach
5. Questions & Answers

Presenters:
* Scott Catlett, Asst. Finance Director, Riverside
* Ken Brown, Manager, Budget & Business Planning, Irvine

Audience: finance professionals

We’ll be using webinar tools (including real-time questions and live polling) to make this a great opportunity for audience interaction.

Are you a member of CSMFO and want to earn CPE credit for participation in the webinar? Note the requirements at registration.

1. Register in advance for the webinar:
There is no charge for participating in the webinars, but each requires advance registration.
*** Advance registration required for this no-charge webinar: https://www1.gotomeeting.com/register/818942704

2. Connect with the webinar and audio:
Use your logon information from the email confirmation you receive via email from GoToWebinar. We recommend the Use Telephone option dial-in number provided by GoToWebinar for sound quality. Depending upon your internet connection, VOIP option for audio (computer speakers) can have delays or sound quality issues.

3. Ask questions:
You may submit questions anonymously via email to CSMFO@DonMaruska.com in advance or via the webinar during the panel discussion. As moderator for the session, Don Maruska will pose the questions.

4. Presenters’ presentation materials:
We post these with the agenda at “Live Audio & Archives” tab of www.csmfo.org/training/csmfo-webinars-and-hot-topic-calls. The PPT will be available about 2 hours before the webinar.

After a webinar occurs, a digital recording along with the PowerPoint materials and results of the polling questions will be available within 24 hours at the “Live Audio & Archives” tab of www.csmfo.org/training/csmfo-webinars-and-hot-topic-calls.

Post-Webinar Group Discussions
Many agencies are organizing groups to participate in the webinars (live or recorded) and discuss the topics among themselves after the webinars. Some are summarizing their discussions and distributing them to managers throughout their organizations. Use the CSMFO Coaching Program as an effective way to enhance professional development in your agency. Here are some discussion starters for this session.

a. What challenges do we have with communicating our budget information?
b. Which tools and approaches from this webinar might we apply for our agency?
c. What actions can we take now to enhance communication of this year’s budget?

MORE RESOURCES–See the “Coaching Corner” at www.csmfo.org/coaching for valuable resources to boost your career. These include a Financial Management Skills Inventory, Resource Matrix, Coaches Gallery of 24 volunteer CSMFO Coaches willing to help you on a one-to-one basis, and an archive of digital recordings and materials from past webinars.

Enjoy the resources and support to thrive as a local government finance professional.
Don Maruska, Master Certified Coach
Director, CSMFO Coaching Program
See “Coaching Corner” at www.csmfo.org/coaching

 

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Welcome New CSMFO Members!

• John Augustyn, Deputy Finance Director, Thousand Oaks
• Melissa Bellitire, Associate Financial Analyst, Albert A. Webb Associates
• Robin Borre, Management Analyst II, Rancho Cordova
• Rob Braulik, Town Manager, Town of Ross
• Mary Case, Partner, Moss Adams LLP
• Jack Castro, Finance Director, City of Parlier
• Nila Cordova, Director of Fiscal Services, San Joaquin Regional Rail Commission
• Ryan Cunha, Mayer Hoffman McCann P.C.
• Debora Dickerson-Sims, Administrative Supervisor II, San Bernardino County
• Connie Gee, Accountant II, Santa Ana
• Juston Glass, Financial Analyst, Santa Clara
• Melissa Hurtado, Revenue Operations Manager, Thousand Oaks
• Erik Kapeller, VP/Relationship Manager, BBVA Compass
• Irene Lui, Controller-Treasurer, San Jose
• Jane McDermott, Accountant, Murrieta
• Gita Mehirdel, Senior Accountant/Manager, Redwood City
• Jerry Merritt, Controller, Monterey Peninsula Airport District
• Bob Quaid, Interim Finance Director, Central Basin Municipal Water District
• Yin Tai, Financial System Analyst, City of Millbrae
• Jill Taura, Finance Director/City Treasurer, Glendora
• John Williams, Institutional Investment Officer, Wells Fargo Securities
• Mary Williams, Financial manager, Long Beach

 

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Education Opportunities

Tax Allocation Bonds for Successor Agencies” Webinar
– April 9, 11:30 a.m. – 1:00 p.m.

• Jim Cervantes, Sussan Corson, Mark Northcross, Kurt Yeager

Power of Fiscal Policies (Morning)
– April 11, 8:30 a.m. – 12:00 p.m.

• Bill Statler

Power of Fiscal Policies / Long Term Financial Planning (All Day)
– April 11, 8:30 a.m. – 4:30 p.m.

• Bill Statler

Power of Fiscal Policies (Afternoon)
– April 11, 1:00 – 4:30 p.m.

• Bill Statler

Introduction to Government Accounting
– May 1, 9:00 a.m. – 4:30 p.m.

• Ahmed Badawi – Badawi & Associates

Power of Fiscal Policies (Morning)
– May 9, 8:30 a.m. – 12:00 p.m.

• Bill Statler

Power of Fiscal Policies / Long Term Financial Planning (All Day)
– May 9, 8:30 a.m. – 4:30 p.m.

• Bill Statler

Power of Fiscal Policies (Afternoon)
– May 9, 1:00 – 4:30 p.m.

• Bill Statler

 

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Chapter Meetings

Sacramento-Valley Chapter Meeting
– April 17
The topic of discussion will be the Elimination of Redevelopment including “war stories”, lessons learned and experiences.

 
Central LA & South Bay Chapter
– April 25
Fraud Awareness and Prevention Tips

• Ernie Cooper, Cooper Forensics & Investigation Group

AB 340 Pension Reform, Healthcare Reform/ “Pay or Play” Rules

• Marcus Wu, Hanson Bridgett

Channel Counties Chapter Meeting
– May 30
Guest Speaker: Michael Coleman from the City of Camarillo Public Library
 

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Career Opportunities

CSMFO provides government finance professionals with numerous resources for enhancing and advancing their careers. Visit the job opportunities page of the CSMFO website for a list of current job openings.

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Bay Bridge Seismic Retrofit Tour

Prior to the official kick-off of the annual conference, 24 attendees embarked on a tour of the new east span of the Bay Bridge. The staff at the project’s Public Information Office provided a very informative video presentation before the group boarded a boat to see the project up close. This tour was educational with respect to the roles that the 1989 Loma Prieta earthquake and the public had in the development and design of the new east span. In addition, it provided an appreciation for this unique moment in time when the new and old spans co-exist side by side and for the incredible beauty and climate of Oakland.

 

 

 

 

 

 

 

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Pre-conference Cannabis Dispensary Visit

At one of the pre-conference field trips on Wednesday morning before the start of the 2013 Annual Conference, a small group of attendees had the opportunity to get an inside look of the business and operational sides of Blűm, Oakland’s newest cannabis dispensary. CSMFO members were given an overview of Oakland’s regulatory and taxation policies for dispensaries. In addition, they were educated on how Oakland has taken a collaborative approach with the dispensary owners, public officials and the community in order to create a sensible regulatory and tax structure for the industry. Attendees were advised that dispensaries through a consensus agreed to support paying a business tax of five percent based upon their gross receipts alongside a yearly regulatory fee of $60,000. As a result, Oakland receives approximately $1.8M in tax revenue per year from five dispensaries, which goes into the general fund. The annual regulatory fee is used to recover cost for audits, site inspections and permit approvals.

 While at the dispensary the operator walked the tour-goers through the entire dispensary process for a typical patient. They explained how first-time patients with doctor recommendations are verified with the prescribing physician, the patient’s ID is verified and a questionnaire is filled out–much like a typical doctor’s office visit. Only when the patient’s information and recommendation is verified can they be allowed into the dispensary area to purchase their medication.

CSMFO members were then able to see first-hand the selection of different strains of cannabis, alongside a vast array of cannabis-infused products like cookies, cannabutter, tinctures, body lotion and chapstick. Furthermore, they were educated on how every cannabis product is sent to a testing lab to check for purity and presence of any contaminants before being offered to patients.

The tour was also led through the cavernous area used for weighing and packaging cannabis and the staff went over the inventory and barcoding process that tracks the product from back door to front door in the dispensary process.

At the conclusion of the tour, CSMFO members had commented that they had developed a new professional perspective of the cannabis industry and how the City of Oakland has developed a model dispensary program.

 

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CSMFO’s Accounting and Fiscal Policy Classes

CSMFO offers Introductory, Intermediate Governmental Accounting and Fiscal Policy Training classes throughout the year. Each class is taught separately by highly respected instructors.  We are thankful to our instructors for their time and commitment.  One of our long time instructor’s, Kathryn Beseau, for the Intermediate Governmental Course, retired and we want to thank her for her years of service to CSMFO.  In February the Board approved a new contract with Susan Mayer who will assume the role of instructor.  We are excited to have her on board to teach this important intermediate course, and will begin to schedule courses soon.  We have also been busy scheduling courses for the upcoming years but we are still looking for host agencies.  To date, we are excited to offer the following Accounting and Fiscal Policy Classes.  Please look to see where you or your staff can benefit from these courses.

Introduction to Government Accounting – Instructor Ahmed Badawi

City of Dinuba – March 6, 2013

City of Camarillo – May 1, 2013

City of Ceres – June 19, 2013

Power of Fiscal Policies / Long Term Financial Planning – Instructor Bill Statler

City of Agoura Hills – April 11, 2013

City of Riverside – May 9, 2013

Coachella Valley Water District – September 12, 2013

City of Lakeport – October 10, 2013

Interested in Hosting?  Here are the requirements:

The accounting classes are appropriate for individuals that have some accounting background, but may be new to the government sector or for employees who have recently assumed responsibility for financial and accounting reporting. The classes are also appropriate for anyone interested in brushing up on basic government accounting skills. Once a basic understanding of accounting concepts is reached, these concepts can easily be applied to the unique requirements of the governmental area.

Host site requirements for the accounting classes include:

• A minimum of 20 registrants
• Seating for 60 participants with tables and chairs
• One rectangular table up front for speaker
• Table and chair in back for registration
• ***Room open and available at 8:00 a.m. for set-up (*** 7:30 a.m. for Intermediate classes)
• Parking alternatives for up to 60 participants, preferably free parking
• A computer with a remote to advance PowerPoint slides
• A port to allow for a USB flash drive
• A screen and projector

The host site will need to provide lunch (with beverages) and light morning/afternoon refreshments for the attendees. The host site will be reimbursed actual costs up to $15 per attendee, including the instructor, by CSMFO.

The Fiscal Policy Training classes are offered as half-day or one-day sessions. Good times come and go, but your values shouldn’t – which is what fiscal policies are all about. Setting clearly articulated fiscal policies builds a strong foundation for protecting your agency’s long-term fiscal health. As recent economic events have shown, no agency is immune to economic downturns. But agencies with clear fiscal policies in place with a tradition of following them have a significant strategic edge over those that don’t. Policies make tough decisions easier by providing guidance both when times are good by preventing problems to begin with, as well as when the inevitable tough times do arrive.

Host site requirements for the fiscal policy training classes include:

• A minimum of 10 registrants
• Seating for 60 participants with tables and chairs
• One rectangular table up front for speaker
• Table and chair in back for registration
• ***Room open and available at 7:30 a.m. for set-up (*** 12:30 p.m. for afternoon sessions)
• Parking alternatives for up to 60 participants, preferably free parking
• A computer with a remote to advance PowerPoint slides
• A port to allow for a USB flash drive
• A screen and projector
• Location convenient to lunch options for attendees (preferred)

The host site will NOT need to provide lunch or refreshments for the attendees. Attendees are on their own for lunch.

For all classes, the host site gets two free attendees. Unless otherwise provided by the hosting agency, one of the attendees will be designated to registering participants, checking room set-up, assisting the presenter, assisting with food and assisting with set-up as needed.

CSMFO will handle the online registrations and fees for the classes.

CSMFO and the host site will be responsible for marketing and promoting the courses. The host site is strongly encouraged to market and promote the courses to local agencies and chapters to maximize attendance.

If you are interested and able to host any of the classes in 2013, or for more information please contact Margaret Moggia, Board Liaison to Career Development Committee, at margaretm@westbasin.org.

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Coaching Corner

Webinar – “Managing Employee Compensation – Issues and Options”
– Co-sponsored with Cal-ICMA

March 20, 1:00 – 2:30 p.m. PST
[registration details will be distributed by March 6 via the email list]

Key topics:

1. What are major developments in compensation issues that affect local government? (CA and elsewhere)?
2. What further developments are likely?
3. What innovative employee compensation strategies have local governments pursued?
4. What are best practices in forecasting and budgeting the financial implications of current employee compensation expenses and long-term liabilities?
5. How are new wage and benefit terms affecting recruitment and retention in local government?

 

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Welcome New CSMFO Members!

• Debbie Pacheco, Sr. Management Analyst, Covina
• Andre Aberdeen, Account Manager, Questica Inc
• Randall Carlton, Chief Financial Officer, Contra Costa Transportation Authority
• Christina Chen, Junior Financial Analyst, Metropolitan Transportation Commission
• Julie Nemes, Accounting Manager, Santa Barbara
• Jeri Corgill, Management Analyst, Atascadero
• Leo Levenson, Deputy Director of Finance & Admin., San Francisco (City and County)
• Jennifer Erwin, Assistant Director of Finance, City of Perris
• Sandra Featherson, Director of Administrative Services, Solvang
• Katherine Bradshaw, Accounting Manager, Douglas County
• Ralph Tyrell, Johnson Controls, Inc.
• Gretchen Lindelof, Acting Controller, Transportation Corridor Agencies
• William Fox, Director of Finance, City of Vernon
• Andrew Thompson, Revenue Supervisor, San Rafael
• Jeff Swan, Managing Director – Trading/Sales, Mischler Financial Group, Inc.
• Aaron Beanan, Senior Accountant, City of Carlsbad
• William Clayton, Senior Accountant, Rogers, Anderson, Malody & Scott, LLP
• Jason Garben, Economic Development Director, Suisun
• Mari Jimenez, Financial Services Director, City of Coalinga
• Mona Dmitrenko, Financial Advisor, California Municipal Finance Authority
• Charles DeSimoni, Manager, Rogers Anderson Malody & Scott LLP
• Jennifer Callaway, Finanace & Budget Manager, Los Gatos
• Bradford Rockabrand, Student, Saint Louis University

 

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Education Opportunities

Power of Fiscal Policies (Morning)
– April 11, 8:30 a.m. – 12:00 p.m.

• Bill Statler

Power of Fiscal Policies / Long Term Financial Planning (All Day)
– April 11, 8:30 a.m. – 4:30 p.m.

• Bill Statler

Power of Fiscal Policies (Afternoon)
– April 11, 1:00 – 4:30 p.m.

• Bill Statler

Introduction to Government Accounting
– May 1, 9:00 a.m. – 4:30 p.m.

• Ahmed Badawi – Badawi & Associates

Power of Fiscal Policies (Morning)
– May 9, 8:30 a.m. – 12:00 p.m.

• Bill Statler

Power of Fiscal Policies / Long Term Financial Planning (All Day)
– May 9, 8:30 a.m. – 4:30 p.m.

• Bill Statler

Power of Fiscal Policies (Afternoon)
– May 9, 1:00 – 4:30 p.m.

• Bill Statler

 

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Chapter Meetings

San Gabriel Valley Chapter Luncheon
– March 20
ACA’s Employer Shared Responsibility: What Employers Need to Know about Health Care Reform

• Daniel Kopti – Wells Fargo Insurance Services USA

Inland Empire & CMTA Div 8 Meeting
– March 21
California’s Fiscal Condition

• Honorable John Chiang, California State Controller

Channel Counties Chapter Meeting
– March 21
New Pension Standards – GASB 68

• Gary M. Caporicci – Pun & Mcgeady, LLP
• Kenneth H. Pun – Pun & Mcgeady, LLP