Finance Committee Agenda and Packet 2017 10 16

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City Council Finance Committee Meeting Minutes 09/18/17 Page 4 of 13 Chairperson Stolzmann stated that she wanted a long-term plan of maybe 20, 30 or 50 years, where the needs for major projects, upgrades, or expansion would need to be bonded. Ms. Stolzmann stated that for this to be attainable, staff must communicate and demonstrate the analysis and assumptions used in a long-term plan. Ms. Stolzmann stated a table would be helpful. Finance Committee Member Maloney requested Interim City Manager Balser to work with staff to expand the equipment replacement request to include the long- term bonding capacity (or negative capacity) of the Golf Course Enterprise Fund. Member Stolzmann reiterated that the revenue projections need to be realistic and that additional information, analysis, and recommendations are needed before City Council can consider the appropriate direction. Interim City Manager Balser stated that staff could conceptually provide the Finance Committee or City Council the long-term model being worked on for the Golf Course. Member Maloney stated that may be helpful. Council Member Lipton stated that the residual value of the equipment for the golf course is a big argument for leasing instead of purchasing. Member Lipton stated that any long-term plan needs to be "stress tested" for downward business cycles or weather-related incidents. Interim City Manager Balser stated that such factors will be incorporated into the model. Finance Committee Members and staff discussed the list of capital items not able to be funded by the Golf Course Enterprise Fund. Members delayed further discussion to later in the meeting when the Open Space & Parks Fund Reserve Policy is discussed. Finance Committee Member Stolzmann moved the discussion to reimbursement to the Golf Course for the 4th of July celebrations. Head Golf Pro David Baril stated that he had researched the revenue from this past celebration (which was on a Tuesday), and compared that day's revenue with that of other Tuesdays during peak season. Mr. Baril stated the net revenue was $1,990 after paying staff OT, and that the number does not include resources needed from other departments to help with the clean-up. On other typical Tuesday's, the golf course revenue is approximately $3,200. Member Stolzmann stated that City staff should incorporate a payment from Special Events budget to the Golf Course to compensate them for the lost day, and that that amount should be incorporated into the 2018 budget. Finance Committee Member Maloney stated that the Golf Course should also be compensated for a later start time the day after the 4th of July to allow staff time for cleaning up. Finance Director Kevin Watson stated that he could incorporate the charge into the budget and asked Director Joe Stevens to provide him a dollar amount for the charge. 5