Finance Committee Agenda and Packet 2016 10 17

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City Council Finance Committee Meeting Minutes 09/19/16 Page 3 of 7 The Investment Report that was distributed by Chandler Asset Management can be located in the minutes of the September 19, 2016 Finance Committee Meeting. PRELIMINARY REVIEW OF FINANCIAL INDICATORS Finance Director Kevin Watson presented to the Finance Committee the Financial Indicators required to be calculated and published in compliance with Policy Section 1, General Policies, of the City's Financial Policies, and which will be included in the 2017-2018 Biennial Budget document. Director Watson stated that there would be some minor language changes such as replacing the term "recurring" with "operating". Finance Committee Chairperson Stolzmann stated that she liked the document but wondered if the use of graphs would be beneficial. After discussion it was determined that any areas of interest could be expanded into and graphs created on a case-by-case basis. Finance Committee Member Maloney requested footnotes be added to the document for areas where the City is intending to right -size debt or reserve amounts to meet a target set by City Council. Director Watson stated that he would add the necessary footnotes to the document. The reports and corresponding narrative can be located in the packet of the September 19, 2016 Finance Committee Meeting. INTERFUND DEBT — GOLF COURSE FUND AND WASTEWATER UTILITY FUND Finance Director Watson presented to the Finance Committee the Debt Service Scheduled for the Golf Course Interfund Loans and the related City Ordinances required for Enterprise Funds as previously approved by City Council. Director Watson stated that the schedule provides for loan payoff by December 31, 2021 assuming an annual payment of $225,000 per year. Finance Committee Member Stolzmann stated that she is troubled by this structure of debt and funding stating that at year end, because the Golf Course will not have generated enough revenue, the General Fund will have to cover the loan -repayment of the Golf Course to the Wastewater Fund. Member Stolzmann continued that the Wastewater Fund has had to incur debt and raise rates in order to fund its capital needs while it is still owed money from the Golf Course. Ms. Stolzmann stated her opinion that the Wastewater Fund should be made whole from the General Fund, that the Wastewater Fund cannot 4