Finance Committee Agenda and Packet 2019 07 19

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City Council Finance Committee Meeting Minutes 06/07/19 Page 4 of 6 The reports and corresponding narrative can be located in the packet of the June 7, 2019 Finance Committee Meeting. RECREATION CENTER RENEWAL AND REPLACEMENT RESERVE CALCULATION Finance Director Kevin Watson presented to the Finance Committee the current model calculation of the Recreation Center Renewal and Replacement Reserve. Director Watson stated that the areas in green represent the budget numbers from the Long -Term Financial Plan, and that the blue areas represent assumptions that can be changed and will roll down to the reserve balance. Director Watson stated that not all revenue and expenses are included in the model and that it will be updated with the latest actuals and projections for the budget retreat. Finance Committee Members stated that they would like Director Watson to be the keeper of and owner the model. Members stated there is a disconnect between capital projects and FF&E with mixed revenue sources. Mayor Muckle stated that the capital replacement needs to be separate or segregated. Chairperson Maloney agreed stating they need a programmatic understanding which may impact the General Fund and program fees. Member Maloney stated the analysis needs to be whether funding should continue, or the City is overfunding; the model needs to be normalized. Finance Committee Member Lipton stated that the model is not a financial report, but rather a construction project planning model to be used to project costs for certain years. City Manager Balser cautioned the Finance Committee stating that staff needs to understand the expectations for the data, and that staff time and efforts to produce what is being requested must be reasonable and realistic. Chairperson Maloney requested Nathan Mosley, Director of Parks, Recreation & Open Space, Kevin Watson, Finance Director, and Finance Committee Member Lipton sit down to discuss the model. The reports and corresponding narrative can be located in the packet of the June 7, 2019 Finance Committee Meeting. GOLF COURSE RENEWAL AND REPLACEMENT RESERVE CALCULATION Finance Director Kevin Watson presented to the Finance Committee the current model calculation of the Golf Course Renewal and Replacement Reserve. Director Watson stated that the golf course model is color -coded in the same manner as for the recreation center model, and that not all the actuals have been updated. Director Watson stated there is a reduction of working capital due to the