City Council Minutes 2014 06 24 SP

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City Council Special Meeting Minutes June 24, 2014 Page 6 of 14 SUMMARY OF MOST SIGNIFICANT REVENUE PROJECTIONS Finance Director Watson reviewed a summary of Most Significant Revenue Projections and noted the Planning Division provided revenue projections for building related revenue, which included construction, permits, impact fees, and tap fees. He reviewed the property tax revenue history and projections; sales tax revenue history and projections; and building - related revenue history and projections. He reviewed a preliminary estimate of the most significant expenditure targets, which include the impacts of the golf course. COUNCIL COMMENTS Council member Keany addressed the health benefit assumptions of a 5% annual increase, and stated he would rather error on the side of caution and project a higher increase of 8% annually. GENERAL FUND HISTORY AND PROJECTIONS City Manager Fleming reviewed the General Fund History and Projections; Conservation Trust Fund history and projection and the Open Space and Parks Fund forecast. COUNCIL COMMENTS Council member Lipton stated the Open Space Advisory Board has questioned the use of Open Space and Parks funds to pay for maintenance. City Manager Fleming explained in 2007, the staff reclassified maintenance expenditures from the General Fund to the Open Space and Park Fund. The ballot language stipulates it is permissible to use these funds for acquisition, development and maintenance of Open Space and Parks properties. In the same timeframe, expenditures and revenues were alternating back and forth. The flexibility of the General Fund money was preserved and the Open Space and Parks funds were being spent for legitimate purposes. Council member Lipton asked whether that process should be reversed and whether the General Fund should increase the fund balance of the Open Space and Parks Fund. City Manager Fleming explained it is a policy decision for the City Council. In order to purchase open space properties as they become available, a sizable amount of Open Space funds are necessary. Council member Stolzmann stated her preference for purchasing open space property out of the Open Space and Parks Fund and the General Fund paying for maintenance of open space and parks. Council member Keany felt it would make more sense for the operational and maintenance expenses to be paid by the Open Space and Parks Fund. Then the Open Space and Parks Fund could transfer back those costs to the General Fund.