Finance Committee Agenda and Packet 2016 06 14

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City Council Finance Committee Meeting Minutes 05/16/16 Page 4 of 7 set a fund reserve minimum for the Capital Projects Fund, and that technically the balance can go to zero. Director Watson stated that his conservative opinion would be to maintain $1-2M in reserves to provide solid cash flow for any unforeseen overages or purchases. City Manager Fleming agreed stating that using the 2015 paving projects as an example, additional funding was needed due to the volatile pricing of materials. Chairperson Stolzmann stated that she would be comfortable with a reserve of $500K due to the large amount of carry-forwards from year to year. Committee Member Maloney asked about the revenue peaks on the graph. Director Watson stated that the peaks represent inter-fund transfers from the General Fund, and that over the past 3-4 years, the General Fund has provided approximately $8- 9M in revenue to the Capital Projects Fund. Finance Committee Members discussed that tax revenue only should be used as the base level of funding available for determining future projects. City Manager Fleming agreed stating that with plans to spend $3M in paving projects in the coming years, there would be approximately $2M in revenue available for allocation to the remaining projects. Finance Committee Members and staff commented that while the outcome of last year's budget process was good, all those involved are interested in collaborating, aligning expectations, and addressing any issues early in this year's budget process. City Manager Fleming stated that the management team is working to provide final recommendations which will be presented to City Council in June. At that time, he would like to receive clear direction from City Council on the approved projects and the priority of the projects so a final CIP can be ready in August 2016. The reports and corresponding narrative can be located in the packet of the May 16, 2016 Finance Committee Meeting. SALES TAX REPORT FOR THE MONTH ENDED MARCH 31, 2016 Tax Manager, Penney Bolte, presented to the Committee the monthly and quarterly sales tax reports for the period ended March 31, 2016. Chairperson, Ashley Stolzmann requested information on the amount of sales tax rebates paid by the City during the first quarter 2016, noting that the 5.2% sales tax increase year-to-date may actually be offset by the amount of rebates paid. The reports and corresponding narrative can be located in the packet of the May 16, 2016 Finance Committee Meeting. FINANCIAL STATEMENTS FOR THE MONTH ENDED APRIL 30, 2016 5