Finance Committee Agenda and Packet 2019 07 19

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City Council Finance Committee Meeting Minutes 06/07/19 Page 5 of 6 re -use water, which has been changed for 2019, and that beginning in 2021, the Capital Projects Fund will fund all golf course CIP projects. Director Watson reminded the Finance Committee that there is currently no reserve policy for the Golf Course Fund. Director Mosely stated that he would be providing new projections and actuals to be incorporated into the model in time for the budget retreat. Finance Committee Members asked about the building replacement values being used for both the recreation center and golf course. Director Mosely stated that the recreation center value came from the building architect, and the golf course value is based on the insurance value. The Finance Committee stated that all assumptions used in these models need to be monitored and actual data updated. The Finance Committee requested staff bring back revised worksheets from the model to the July or August Finance Committee meeting. The reports and corresponding narrative can be located in the packet of the June 7, 2019 Finance Committee Meeting. AGENDA FOR JULY 16 BUDGET RETREAT Finance Director Kevin Watson presented to the Finance Committee a preliminary list of agenda items planned for the July 16, 2019 Council Budget Retreat. Finance Committee Members agreed with the agenda items but requested updates to the Fund Financial Forecasts through 2024. Finance Committee Member Lipton handed out a draft of a worksheet he created that may assist staff to estimate capital project costs and improve the level of precision when budgeting these projects. Member Lipton stated that changes in scope, conditions, and lack of sufficient contingency funds are issues that need to be tightened. Member Lipton suggested staff use this tool to track projects over the last five years and review the results for patterns or trends in costs that may need to be addressed or adjusted in future construction contracts and budget requests. Mayor Muckle stated that he liked the concept, noting that some projects end way over, or way under budget, and that economic changes and construction costs all play a factor in a project's cost and should be analyzed. City Manager Balser stated there are limitations to staff capacity and encouraged the Finance Committee to be realistic with its requests and timelines. The Finance