Finance Committee Agenda and Packet 2018 07 16

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City Council Finance Committee Meeting Minutes 06/15/18 Page 6 of 7 DISCUSSION ON ASSET RENEWAL AND REPLACEMENT FOR GOLF COURSE Finance Committee Chairperson Dennis Maloney presented the same model as discussed for the Recreation and Senior Center, but modified for the Golf Course. Chairperson Maloney stated that the sub -committee has done some work but that he still wants to meet with staff to review the estimates for revenue and expenditures. Member Maloney stated that the model isn't working for the Golf Course, and the Golf Course is an enterprise fund. City Manager Balser stated that the Long -Term Financial Model includes CIP assumptions. Director Watson stated that it also includes the leased equipment request from Director Stevens, even though the option is not affordable based on the revenue assumptions. Golf Course Superintendent David Dean stated that the payment term for the leased equipment can be modified from 5-years to 7-years. Finance Committee Member Lipton asked how the building value of $2.7M was determined. Director Stevens stated that the list value was obtained from the City's insurance carrier. Member Maloney and Member Lipton stated the value is too low and needs to be revisited. Member Lipton also stated that the renewal and replacement percentages need to be increased from the current 2% used in the model to 5% as it is an older building. Director Watson stated that no subsidy line would be included for presentation at the budget retreat. The reports and corresponding narrative can be located in the packet of the June 15, 2018 Finance Committee Meeting. STAFF REPORTS Analysis of "Outside City" by Industry Tax Manager Penney Bolte provided the Finance Committee a Sales Tax Revenue by Industry report for the April filing period that allocates the "Outside City" area revenue only by business industry. Ms. Bolte stated this report was generated in response to the Finance Committee's inquiry at the May meeting. Finance Committee Chairperson Maloney stated the report is helpful to identify what types of industry purchases are being made by Louisville businesses and residents from businesses located outside the City. Member Maloney stated that 7