City Council Minutes 2015 06 09 SP

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City Council Special Meeting Minutes June 9, 2015 Page 5 of 12 City Manager Fleming addressed the Capital Projects Fund. Council member Keany noted there was no reserve line for capital improvements. City Manager Fleming said no, but it could be addressed and would look to Council for suggestions on what the target reserves should be. City Manager Fleming noted the Open Space and Parks Fund reflected General Fund transfers to build it up for anticipated expenditures. The Combined Utility Funds include the rate increases for 2016 and the anticipated increases for subsequent years as well as the debt service and loan service requirements. He noted the five year CIP reflected all the projects with a drop back to a more normal level in 2017. PUBLIC COMMENT An audience member asked if there were a catastrophe like the flood, what fund would the recovery dollars come out of. City Manager Fleming noted it would come out of multiple funds, primarily Capital Projects with revenues coming from FEMA reimbursement and some from drawing down reserves. Michael Menaker, resident, asked about legal fees for the urban renewal legislative changes. Staff noted that would be part of the operational budget. Mayor Muckle called for a dinner break at 5:25 pm Reconvened at 5:38 pm City Manager Fleming noted detail for the capital projects was in the packet. He highlighted the changes he made to departmental requests in order to ensure reserves. He removed nearly $3 million worth of requested projects in coming years to maintain prudent reserves. Council member Keany wondered if capital projects needed a reserve or could it be managed through putting off projects if a catastrophe caused the need for those dollars. Council member Lipton expressed concern that some of the big projects were underestimated. He noted if there were a 10 -20% increase in a big project, there would be a definite effect on the budget. To manage the risk, he suggested 2 -3 lists of projects by desire to get them done: Critical, Nice to do, Discretionary. Then, re- evaluate during the year by looking at revenue and expenses. He noted there were good investments in capital the last few years and urged a conservative approach going forward. City Manager Fleming felt the plan incorporates that idea by providing a five year plan and based on Council feedback, staff will adjust the programs. The project budgets can also be adjusted as they get closer to budget year in which they are actually funded.