Finance Committee Agenda and Packet 2019 04 01

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City Council Finance Committee Meeting Minutes 02/18/19 Page 5 of 9 that the goal of City Council should not always be to fund the maximum 15% for the Recreation Fund. Finance Committee Members discussed further, and requested language be added to state it is the intent of City Council that fees and dedicated taxes fund the operating costs up to the maximum contribution. Finance Committee Member Lipton stated that he would like language incorporated into Section 2.5 and 2.6 of the policy that conveys both the Recreation Center and Golf Course should each strive to operate in a manner that each will generate the maximum amount of reserves with as minimal General Fund support as possible. Board Member Van Pelt asked that paragraph 7 on page 107 of the Finance Committee Meeting packet state that the annual transfer from the Capital Projects Fund is restricted for Capital Projects. Chairperson Maloney agreed stating that the paragraph needs to include that the funds are restricted. Finance Committee Member Lipton suggested there may be other ways to word the paragraph, and stated he would work with Director Watson to rephrase. The reports and corresponding narrative can be located in the packet of the February 18, 2019 Finance Committee Meeting. SALES/USE TAX REPORTS FOR THE QUARTER AND YEAR ENDED DECEMBER 31, 2018 Tax Manager Bolte presented the month -end, quarter -end, and year-end reports for 2018 to the Finance Committee. Ms. Bolte stated that 2018 YTD sales tax revenue excluding audit revenue finished 9.8% above 2017, with 4.3% of the increase due to the new 0.125% Recreation/Senior Center sales tax. Manager Bolte also informed the Finance Committee that 70% of the City's sales tax revenue is generated by businesses inside the City. The in -City sales tax revenue increased by only 1 %, net of the sales tax rate increase. The 30% of sales tax revenue generated by businesses located outside the City increased 17.3%, net of the sales tax rate increase. City Manager Balser stated that some scenario planning may be needed, and that other cities, such as Loveland, have fiscal contingency plans. Manager Balser stated that staff can discuss this with the Finance Committee in April for discussion or review with City Council in May or June. Finance Director Watson stated that June would be a good time for the discussion after the City's audit is complete, and when the year -in -review is presented. Director Watson stated that the City has good reserves, and that there will also be sizable turn -backs. Finance Committee Member Lipton stated that, excluding the hail damage impact and tax rate increase, the City's sales tax revenue is flat or declining, and that there 6