City Council Agenda and Packet 2015 05 19

Home Browse Search

City Council Meeting Minutes May 5, 2015 Page 17 of 33 City Manager Fleming confirmed the model would provide the assumptions for various scenarios. He was comfortable with the marginal cost fiscal model and going forward with the average cost fiscal model. Council member Stolzmann stated the key piece of adopting a model is the assumptions, which start in the model. There are two models, a hybrid approach and a marginal approach, but Council has only reviewed one. She felt the assumptions are the crux of the matter. She was comfortable directing staff to continue working on the model, but she was uncomfortable with approving the model. Mayor Pro Tem Dalton felt the Council is being asked to agree with the structure of the model. The assumptions would be put in later. Council member Lipton was willing to accept the work of the consultant. It would be up to Finance Committee to use the model and provide some analysis for decision making in the future. City Manager Fleming explained the financial projections for the next 5 years are based on key assumptions, which are made clear to Council. The assumptions are on changes in revenue over the next five years. These assumptions are presented in a summary table every June and during the budget process and Council is asked to confirm the assumptions. If staff is overly optimistic or overly cautious, Council can modify the assumptions. Staff will be able to demonstrate scenarios for the Finance Committee to make sure the approach is correct. When the model is used, the assumptions will be made clear. It was his understanding those assumptions are relatively easy to change. Council member Loo was comfortable with approving the model. She asked if Council will be able to determine the capacity of facilities and noted that is what the public is concerned about. She asked whether it will be a staff recommendation or will it be a recommendation from the Finance Committee. Council member Stolzmann stated a large piece of the model is to determine capacities. The model is really two models and Council has only reviewed one model. She stated her understanding was to direct staff to continue with the second model. Mr. Bise confirmed they are waiting to see if Council is comfortable with the first model before the second model is done. Council member Stolzmann asked if the model presented is the marginal cost model or the average cost model. Mr. Bise stated it is the marginal cost model. Council member Stolzmann would be more comfortable with the Finance Committee looking at both models and making a recommendation. Council member Lipton was comfortable with the model and felt the process must be moved along. He accepted Council member Stolzmann's recommendation for Finance Committee review. 48