City Council Agenda and Packet 2019 08 06

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City Council Meeting Minutes July 16, 2019 Page 2 of 6 back methodology. The turn -backs left a higher than anticipated balance in the General Fund. Mayor Pro Tem Lipton asked about major items contributing to the high turn -back. Director Watson stated the earlier biennial budget for the first time along with going to program budgeting contributed to departments not being completely aware of where all the money was because it was split into different places. Staff vacancy savings also contributed. Budgeting was just not as tight. Director Watson reviewed the projections and 2018 final audited numbers of the various funds. FINANCIAL POLICIES — PROPOSED AMENDMENTS Director Watson reviewed the purpose of the policies noting one is to define certain boundaries and limits on actions staff may make. Staff is proposing some changes. He reviewed the various policies the City has including: 1. General Policies 2. Reserve Policies 3. Debt Policies 4. Revenue Policies 5. Operating Budget Policies 6. Investment Policies 7. Capital Asset Management Policies 8. Accounting, Auditing and Financial Reporting Policies The changes being recommended are: Reserve policies • Eliminates the Open Space & Parks Fund targeted fund balance requirement. • Defines the formula for the recurring annual transfer from the General Fund to the Open Space & Parks Fund. • Establishes a minimum unrestricted fund balance and a capital asset renewal and replacement reserve for the Recreation Fund. • Defines the formulas for the maximum recurring annual transfers from the General Fund to the Recreation Fund and from the Capital Projects Fund to the Recreation Fund • Establishes a minimum unrestricted fund balance and a capital asset renewal and replacement reserve for the Golf Course Fund. Mayor Muckle wanted a note included concerning calculations going back prior to the recession, so it doesn't appear random. A footnote would be fine. 13