City Council Agenda and Packet 2017 09 26 SP

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SUBJECT: 2018 RECOMMENDED BUDGET AND 2018-2021 LONG-TERM PLAN DATE: SEPTEMBER 26, 2017 PAGE 10 OF 24 would be re -appropriated as transfers to the Recreation Center Construction Fund from the General Fund, Conservation Trust — Lottery Fund, and the Capital Projects Fund. In addition, staff recommends a $1,250,000 General Fund transfer to the Recreation Center Construction Fund. Lastly, staff assumes the remaining $500,000 or so needed would come from DOLA grant proceeds and/or other contingency funds. Should DOLA or contingency funds not materialize, the City can again look at General Fund and C -I -P reductions for 2018, as well as transfers/reserves from those accounts. The Finance Committee did not have a final recommendation on this proposal, but rather sought City Council discussion on the preferred method to address the shortfall. At the end of the council communication a scenario is provided that reflects staff's recommendations and impacts to the associated Funds. INTERFUND TRANSFERS Staff has reviewed and updated projections on all amounts expected to be transferred between funds for 2017 and 2018. The following table summarizes the inter -fund transfers included in the Recommended 2018 Operating & Capital Budget. Inter -Fund Transfers Matrix 2018 Estimate Transfers In Capital OS&P Cemeter{ Projects Transfers Out Fund Fund Funcl Total General Fund 500,000 a 96,870 v 596.870 Cemetery Perpetual Care Fund 6.060 _ 6,850 Impact Fee Fund 539,120 630.270 21 1,169,390 Total 1,03+9,120 103,720 630,270 1,773,110 a Annual recurring support for operations and capita/. L Annual recurring support for- operations and capital. c Annual recurring transfer of interest earneu used to fund operations and capital. d Annual transfer of impact fee revenue For ps c ects eligible for this hie of funding. Transfers to Support the Open Space & Parks Fund The Open Space & Parks Fund Is projected to spend down its reserves to minimum levels by the end of 2017. Therefore, the Open Space & Parks Fund can no longer use its reserves to help fund its ongoing operations and its capital improvements plan. Without significant expenditure cuts, the Open Space & Parks Fund will need to rely on new revenue sources or transfers from other funds. Previous Long -Term Financial Plans had assumed transfers from the General Fund would eventually support the annual deficit between the Open Space & Parks Fund's total revenue and total expenditures. As shown in the preceding table, the Recommended 2018 Operating & CITY COUNCIL COMMUNICATION 11