Finance Committee Agenda and Packet 2018 07 16

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City Council Finance Committee Meeting Minutes 06/15/18 Page 5 of 7 model has only marginal use now due to the outdated GreenPlay estimates. Ms. Van Pelt stated that the revenue and expense portion of the model needs work and should include all revenue and expense amounts in the sources and uses section. Director Watson stated that the sales tax will generate more than the incremental increases in the costs of expansion. Director Joe Stevens stated that the revenues will increase more than suggested in the GreenPlay report estimates. Finance Committee Member Lipton stated that he is not sure the current subsidies from the General Fund will be needed, stating that there will be a lot of revenue offsetting the expenses. Member Lipton stated that he did not want to codify the current subsidies needed for Senior and Youth programs. Chairperson Maloney stated that he would like the model to include all sources and uses within operations, at which time, the Recreation & Senior Center would become an enterprise fund. Director Watson stated that the City could carve out from the General Fund all associated revenue and expenditures and reclass to a Special Revenue Fund. The future General Fund subsidies would be transfers. City Manager Balser stated that making the Recreation & Senior Center an Enterprise Fund would be a huge philosophical change and would limit subsidies from other funding sources from its current 30-35% to just 10%. Mayor Muckle stated that current cost recovery policies are in place and should continue to include the subsidies. Finance Committee Members and staff discussed creating a separate fund to include all costs and revenue and financial policies that set targets and include an annual subsidy from the General Fund. Member Lipton stated to keep an open mind as to the level of subsidies needed and to wait and see what the Recreation & Senior Center can do on their own. Board Member Van Pelt stated that perhaps the subsidy should not be included in the model and to allow any deficits to illustrate that funding is needed from some other source. Finance Committee Chairperson Maloney stated that he is not certain what the details of a fiscal policy should be until such time as all the actual numbers are added to the proposed model. Chairperson Maloney requested the model be fine-tuned by Director Watson. Member Maloney requested a model be prepared for City Council that reflects current projections, sources, and uses of revenue, and a separate line item that shows the subsidies along with recommended targeted reserve amounts. The Committee and staff discussed that City Council would support a separate reserve and fiscal policies needed for the Recreation & Senior Center if the model and its results are defendable. The reports and corresponding narrative can be located in the packet of the June 15, 2018 Finance Committee Meeting. 6