City Council Agenda and Packet 2017 11 06

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City Council Meeting Minutes October 17, 2017 Page 8 of 15 The Consolidated Utility Fund (Water, Wastewater, and Storm Water Funds) reserves are projected to increase by $385,000 to $17.5 million at the end of 2018. Ending reserves for all the individual utility funds are projected to remain in compliance with the City's Reserve Policy. Only the Storm Water Utility Fund is projected to approach its minimum during 2018. The Golf Course Fund is projected to increase its reserves by approximately $75,000 during 2018. Per Council's directive on October 10 the presentation included: New calculation of General Fund transfer General Fund transfers begin in 2018 Removal of Capital Projects Fund transfers Reclassification of Hwy. 42 Multi -use Underpass from the Open Space & Parks Fund to Capital Projects Fund Finance Director Watson noted there were a number of attachments in the packet providing more detail. Mayor Muckle called for Public Comments — None. Mayor Muckle suggested discussing fund transfers first then any miscellaneous items. Mayor Muckle suggested leaving the transfer between the General Fund and the Open Space & Parks Fund alone for this year. It can then be addressed again in the 2019/20 budget. Councilmember Loo stated she was shocked to see the Open Space & Parks Fund balance got so high so quickly. She thought the goal was to aim for 1.2 million over time and suggested building back the fund balance more slowly. She doesn't want to see a huge fund balance when it could be used in the CIP or GF and giving more flexibility to spend it. Then there could be a transfer if needed for an acquisition. She would rather see the Capital Projects fund to be higher and the Open Space & Parks fund lower. Councilmember Stolzmann noted this came about by making the operating compete with operating and capital to capital. Seeing what happens in the General Fund, she noted operational costs are high and may cause problems in out years. She would like to discuss next year by looking at key indicators to determine what operational and maintenance activities might not have been done at a satisfactory level. We really have spent a lot on capital and continue to erode the operational expenditures in Parks and this shows what it would cost to put it back. It could be done over time, but this is realistic. She thought it was fine for the Capital Fund to go down to 1 million. We should 24