Finance Committee Agenda and Packet 2017 04 17

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City Council Finance Committee Meeting Minutes 03/20/17 Page 4 of 8 Finance Committee Member Maloney stated the Boulder County option has merit, but wondered if there may be other less traditional options available, stating that he is not in favor of deferring this problem to 2018 or beyond and would prefer to take care of the matter in 2017. Finance Committee Member Stolzmann stated she would prefer delaying projects to using Boulder County loans or funding. Mayor Muckle stated that 3-4 years ago the Open Space & Parks Fund had approximately $4M in reserves that has since been spent, and that he is disappointed that those funds are now gone when we need it. Mayor Muckle stated that he is in favor of General Fund transfers to cover any shortages. City Manager Fleming commented that the aim has been to maintain large fund reserves in order to handle any downturns or other unforeseen needs. Finance Committee Members and staff discussed that impact fees are an unreliable and unpredictable revenue source and that spending down the Open Space & Parks Fund knowing that the General Fund would repay any deficiencies has been the methodology used. Chairperson Stolzmann stated that at the last Finance Committee Meeting the Committee proposed a list of projects/programs to not be carried forward, and that she calculates an additional $800-900K in project spending for 2017 needs to be delayed. Member Stolzmann stated that she is in favor of selecting those projects now. Director Watson stated that, with the 3-1/2% turnback, the General Fund balance is projected at $7.2M at the end of 2018, well above the minimum fund balance. Transfers could be made from the General Fund to the Open Space & Parks Fund. Member Maloney said General Fund cuts could be made across-the-board. City Manager Fleming stated that he would prefer identifying specific programs to cut as opposed to across-the-board cuts. With regard to the carryforward recommendations made by the Finance Committee at the last meeting, City Manager Fleming stated that that process caught staff a little off -guard, and that typically the City Manager and Finance Director meet with Directors to discuss in further detail the projects they feel should be carried forward or not. Finance Committee Members discussed this and agreed that regardless of what the number carried forward is, that those funds not spent be used as a starting point, or down -payment, for the impact fee refunds that need to be paid, and then further analysis and a determination made on how to move forward. Finance Director Watson stated that the Open Space & Parks Fund sales tax revenue has not been enough to cover the operational costs and must be subsidized with interfund transfers. Member Stolzmann stated that City Council should reconsider its previous approach to reviewing CIP requests first followed by operational costs, as many times these needs are comingled or one -in -the - 5