City Council Agenda and Packet 2017 11 06

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City Council Meeting Minutes October 17, 2017 Page 7 of 15 Watson reviewed the inter -fund transfers based on the October 10th conversation, calculated as an annual recurring transfer from the General Fund to the Open Space and Parks Fund and extended in the long-term financial plan. Although staff has made basic forecasts of revenue, expenditures, and reserves for all funds, staff has performed a more detailed review, and has made more detailed forecasts, for the major operating and capital funds, defined as: General Fund; Open Space & Parks Fund; Capital Projects Fund; Utility Funds; and Golf Course Fund He reviewed fund balance projections. The General Fund reserves are expected to remain relatively flat from 2017 through 2018. The projected ending fund balance of $6.3 million equals 31% of net expenditures, well above the targeted level of 20%. Interim City Manager Balser asked if Council was comfortable with that new projection or if it should be evaluated more heavily in the 2019/2020 budget. The Open Space & Parks Fund reserves are projected to increase by $200,000 due to the change in the funding policy. The projected ending fund balance of $1.9 million is well above the minimum fund balance of $369,000. Interim City Manager Balser noted that is $700,000 higher than the draft goal set at the October 10 meeting. She asked if this reserve is too high or if Council would like to consider other options. The Capital Project Fund reserves are projected to slightly decline during 2018, but should remain around $1 million. Interim City Manager Balser noted there had been discussion at the Finance Committee while looking at the CIP as to whether the Hwy 42 multi -use underpass could possibly cost more than budgeted. Finance Committee asked if the Hwy 42 multi use underpass could be moved to 2019 to support cash flow in the fund and help fund the Short Street improvements which also has a projected cost increase. The Recreation Center Construction Fund is projected to spend down all the bond proceeds by the end of 2018. The Library Debt Service Fund is projected to completely defease the 2004 General Obligation Library Bonds during 2018. 23