City Council Minutes 2018 10 04 - Laserfiche WebLink

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City Council Meeting Minutes October 4, 2018 Page 4 of 10 Councilmember Loo liked the motion and stated the budget should be balanced and let staff figure out how to do that with Council recommendations. She accepted the friendly amendment as the seconder. Motion restated: General Fund will balance over six years. Councilmember Keany offered a friendly amendment it should be for all funds. Mayor Pro Tem Lipton stated his concern with this approach is one year can be very out of balance and it affects later years; it could cause a problem in out years other people have to fix. Councilmember Maloney agreed with this principle except in enterprise funds. Director Watson reviewed the City's definition of a balanced budget: requires each fund's revenue plus appropriated fund balance/working capital to be equal to, or greater than, each fund's total appropriations. However, it is the City's intent to go further and develop structurally balanced budgets for the General Fund and the other major operating funds (excluding capital project funds). In a structurally balanced budget, annual recurring revenue will be projected to equal or exceed annual recurring expenditures for each fund. If a structural imbalance (recurring expenditures exceeding recurring revenue) should occur in the General Fund or in any of the major operating funds, a plan will be developed and implemented to bring the budget back into structural balance. Revised motion: Councilmember Maloney moved to apply financial policy 5.3 to all six years. Second by Councilmember Stolzmann. Vote: All in favor. Director Watson reviewed the past General Fund subsidies for the Rec Center and Memory Square Pool. He noted the proposed transfers for the next 5 years are between 17-22%. Councilmember Keany stated he wants to make sure we continue to fund recreation services at the same level we did prior to the tax. Mayor Pro Tem Lipton stated generally we want to have this Rec Fund be a revenue maximizer and not drain the General Fund. Councilmember Maloney stated there should be two sources of revenue for the Rec Fund. Director Watson said as presented all capital costs are in the CIP. Right now the sales tax alone cannot fund the Rec Center and its capital renewal and replacement. Mayor Pro Tem Lipton stated there is also significantly new revenue from new services.