City Council Agenda and Packet 2017 10 10 SP

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Louisville COLORADO • S1NC CITY COUNCIL COMMUNICATION AGENDA ITEM 3B SUBJECT: DATE: DISCUSSION/DIRECTION 2018 BUDGET — OPEN SPACE & PARKS FUND RESERVE POLICY OCTOBER 10, 2017 PRESENTED BY: KEVIN WATSON, FINANCE SUMMARY: The current Reserve Policy for the Open Space & Parks Fund (Section 2.2) defines a minimum fund balance and a targeted fund balance: "The minimum fund balance of the Open Space and Parks Fund shall be maintained at or above 15% of current operating expenditures. For purpose of this policy, operating expenditures include only open space and parks operations and exclude all interfund transfers and capital outlay." "The targeted fund balance of the Open Space and Parks Fund will include the minimum fund balance plus an amount sufficient to cover the City's share (considering other likely joint partners) of the total projected cost of acquiring the three highest priority candidate open space properties. As the highest priority properties are purchased, this amount will be adjusted." The City Council and Finance Committee have both discussed possible changes to the definition of targeted fund balance. Specifically, the Council has questioned whether the target of covering the cost of acquiring the three highest priority candidate open space properties is still appropriate. At the September 26, 2017 budget presentation, Council discussed three options for defining the targeted fund balance. Option 1: The targeted fund balance is defined as the minimum fund balance plus cost of acquiring the three highest priority parcels (current policy). Option 2: The targeted fund balance is defined as the minimum fund balance plus cost of acquiring the largest remaining priority candidate parcel. Option 3: No definition — the targeted fund balance concept is removed from the policy. CITY COUNCIL COMMUNICATION