Finance Committee Agenda and Packet 2019 06 07

Home Browse Search

City Council Finance Committee Meeting Minutes 05/17/19 Page 2 of 6 APPROVAL OF THE MINUTES FROM THE APRIL 22, 2019 MEETING Finance Committee Member Lipton requested the last sentence of paragraph 2 on page 6 of the April 22, 2019 minutes be amended to read "Member Lipton asked City Manager Balser how the City can provide training and get Directors to the next level of managerial accounting." Finance Committee Members approved the April 22, 2019 minutes as amended. PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA None. RECREATION SALES/USE TAX AND TABOR BALLOT LANGUAGE City Attorney Kathleen Kelly presented to the Finance Committee, two final options for the proposed ballot issue, which include revisions recommended by the City's bond counsel, Dee Wisor. The first alternative would seek voter approval to retain excess revenues received from the sales and use tax rate increase, and retain the 0.15% rate. The second alternative would seek voter approval to retain the 0.15% rate, but refund the revenues in excess of the estimates in the 2016 ballot issue and TABOR notice. Attorney Kelly advised the Committee that during discussions with Mr. Wisor, it became clear that, should voters not approve the City retaining the excess revenues, the City would need to refund not only the revenue collected above the $575,000 estimate ($270,795), but also the full amount of revenue received from the rate increase (capped at $845,795). Finance Committee Members and staff discussed various factors that impacted the original revenue estimate made in 2016. Director Watson stated that that the possible refund of $270,795 has been budgeted for, and that City Council could approve restricting part of the General Fund Reserves to cover any additional refund amount. Director Watson stated this could be included with the upcoming budget amendment. Finance Committee Members and staff agreed that a Finance Committee Meeting will need to be held as soon after the November election as possible, should the ballot issue fail. Finance Director Watson and Attorney Kelly stated that any refunds would need to be done in December 2019. City Manager Balser stated both ballot options would be presented at an upcoming City Council Meeting, with the recommendation of the Finance Committee and staff for option #1, the retention and continuation of the 0.15% sales and use tax. 3