City Council Minutes 2015 09 21 SP

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City Council Meeting Minutes September 21, 2015 Page 5 of 17 noted there was a minimum recommendation; then the City has to look at their revenue structure and determine their comfort and risk profile in the reserves. Mayor Muckle was comfortable with the 20% target as was Mayor Pro Tem Dalton. Council member Lipton was okay with 20% for 2016 but wanted to see it increased in years to come. Mayor Muckle agreed the reserves needed to at least stabilize if not grow in 2019 and 2020. Council member Stolzmann felt, as a target, 20% was appropriate but each year the budget should be reviewed to try to increase that percentage. Council member Lipton felt this was a very subjective way of determining the Open Space & Parks Fund reserves. The top three properties for purchase are grouped, but a property further down the list could become available. As the valuation of the top three properties has not been discussed and the value undetermined, he was unsure what the reserves should be. He questioned since there was no math behind it, whether money from the General Fund should be transferred to the Open Space & Parks Fund reserve as opposed to keeping the dollars in the general fund reserve where there is flexibility to allocate where needed. Mayor Pro Tem Dalton agreed and stated if the top three properties are not available, another property may rise to the top of the list. He agreed once funds are in the Open Space & Parks Fund they are restricted, but if the funds are earmarked in the General Fund, open space purchases can be made from the General Fund. Council member Stolzmann took exception to the financial policy relative to the Open Space & Parks Fund with respect to the General Fund "subsidizing" everything. She noted the General Fund can pay for anything. The definition of the targeted fund balance didn't mean anything. With the current operating expenditures discussion, there is a large General Fund transfer into the Open Space & Parks Fund to pay for all the services offered. With respect to parks maintenance she felt the transfers should be described as to what they were paying for. She noted the introduction refers to the Open Space & Parks Fund transfer paying for 50% of the Parks operations, but there is not a matching financial policy. She recommended a policy be written and the expenditures identified according to a set of principles. City Manager Fleming noted there is some analysis on what the minimum fund balance should be. It is approximately 350 acres of property valued at just over $35,000 per acre to roughly coincide with other Boulder County properties and any participation from other communities that might partner. That is how the $3.5 million dollar proposed minimum balance comes from. The key issue is whether Council wants to keep the dollars in the General Fund and only transfer when properties become available. Mayor Muckle felt citizens want an acquisition reserve. Mayor Pro Tem Dalton did not believe it mattered if there aren't any properties available. The money in the General