City Council Agenda and Packet 2018 07 12 SP BUDGET

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SUBJECT: BUDGET RETREAT DATE: JULY 12, 2018 PAGE 9 OF 17 LONG-TERM FUND FINANCIAL FORECASTS By incorporating the initial revenue assumptions, expenditure targets, and the Recommended 2019-2024 Capital Improvements Plan into the Long -Term Financial Model, staff has developed a preliminary six -year financial forecast for all the funds containing capital projects. The following pages summarize the projected revenue, expenditures, and reserves for many of these funds. These fund projections will be continuously updated during the 2017-2018 biennial operating budget process. Open Space & Parks Fund On November 2, 1993, voters approved a temporary sales and use tax increase of 3/8% for ten years, beginning January 1, 1994. This was extended for another ten years (through 2013) in 2002 and another ten years (through 2023 in 2012). Revenue from this tax is restricted for the acquisition, development and maintenance of open space, parks, trails, wildlife habitat, and wetlands preservation. During last year's 2018 budget process, City Council discussed the need for the Open Space & Parks Fund to receive recurring transfers from the General Fund to maintain its ongoing operations and help fund its capital improvements plan. Council directed that this recurring transfer, beginning in 2018, be calculated using the following formula: The 2007 amount funded by the General Fund for Parks Administration & Operations inflated to 2018 using the Consumer Price Index (CPI), All Urban Consumers, Not Seasonally Adjusted, for the Denver, Boulder, and Greeley area. The intent is that this recurring transfer will be recalculated annually and will keep the Open Space & Parks Fund reserves in compliance with the adopted policy on minimum fund balance. The 2018 transfer is budgeted at $817,000. The 2024 transfer is projected at $1,007,000 The following two charts present the 2019-2024 Capital Improvements Plan and a long- term forecast for the Open Space & Parks Fund. The long-term forecast incorporates the revenue assumptions, the expenditure targets, and the interfund transfer policy as dicussed above, plus the 2019-2024 Capital Improvements Plan as presented. CITY COUNCIL COMMUNICATION 10