Finance Committee Agenda and Packet 2015 12 14

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City Council Finance Committee Meeting Minutes 11/23/15 Page 3 of 6 members had requested a more detailed review and discussion of the reserve policy for the Open Space and Parks Fund during the September 21 Budget Presentation. Finance Director Watson started the discussion by summarizing that all sources of revenue for the Open Space and Parks Fund including tax and interest equal approximately $1.8M annually. The operational uses are presently $1.9M for Parks, $500K for Open Space and an additional $400K for Capital, totaling $2.8M. The shortfall in the Open Space and Parks Fund has been funded by the General Fund. This funding level keeps the reserves at the 25% level proposed in the Financial Policy draft. Director Watson stated that the Open Space and Parks Fund cannot support itself and opened up the discussion with the Finance Committee as to whether the City needs to do more and increase the reserve level. Councilmember Stolzmann stated that there are two issues at hand regarding the reserve level. One issue is having enough reserves to buy desired land, and the second issue is having enough revenue to maintain and operate current and future open space land and parks. Member Stolzmann stated that the needs are widespread and include buffer land, trails, parks, weed control, habitat restoration, and wetland areas, but that many of the costs associated with the maintenance or preservation programs are unknown and must be discussed. Member Stolzmann stated that she had heard several of the City's parks were very expensive to operate. Councilmember Stolzmann stated that the discussion going forward needs to be about the financial impact on the General Fund. Mayor Muckle stated his belief that there should be a 5 -10 year plan by the City to analyze the work that needs to be done and to determine the level of service expected by residents. After that initial work is done, there should be a process to determine the priorities and costs. Mayor Muckle stated that the City shifted much of the operating expenses from the General Fund to the Open Space and Parks Fund back in 2008 when revenues were declining, and that he is not sure the City had shifted enough back. Mayor Muckle stated that once sound priorities are set, he would be in favor of using 50% of the Opens Space and Parks Fund for true open space needs and programs, and the remaining 50% available for park operations. Mayor Muckle concluded that the City's use of these funds and level of service must be improved and visible to residents before the Open Space and Parks Tax is back on the ballot in 2022. Councilmember Maloney stated that he agreed priorities need to be set and the expectations of residents addressed. Member Maloney stated that he is not sure the City is allocating the Open Space tax revenue in a manner consistent with the initial intent of the voters, primarily to purchase and maintain open space. 4