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11: City,/ <br />im Louisville <br />COLORADO • SINCE 1878 <br />CITY COUNCIL COMMUNICATION <br />AGENDA ITEM 3 <br />SUBJECT: <br />DISCUSSION/DIRECTION — CITY MANAGER'S <br />RECOMMENDED 2020 OPERATING AND CAPITAL BUDGET <br />AND FISCAL POLICIES <br />DATE: SEPTEMBER 24, 2019 <br />PRESENTED BY: HEATHER BALSER, CITY MANAGER <br />KEVIN WATSON, FINANCE DIRECTOR <br />SUMMARY <br />On September 3, 2019, the City Manager issued her Recommended Operating and <br />Capital Budget for 2020. The information can be linked to here. This September 24, <br />2019 Special Meeting gives City Council the opportunity to discuss the City Manager's <br />recommendations. <br />At the September 3, 2019 City Council meeting, Councilmember Stolzmann requested <br />additions for updating the Fiscal Impact Model (estimated as a one-time cost of $75,000) <br />and for implementing a Sustainability Project ($28,000/year). <br />At the September 10, 2019 Special Meeting, Council reviewed recommended fees for the <br />Recreation Center and Golf Course. The information can be linked to here. <br />At the Finance Committee Meeting on September 13, 2019 the Committee recommended <br />removing the transfers from the General Fund to the Capital Projects Fund for 2020 <br />($1,000,000) and 2022 ($750,000), since some significant projects have been removed <br />and the Capital Project Fund does not need the transfers to complete the remaining <br />projects. The Committee also recommended to continue funding Golf Course Capital out <br />of the Capital Projects Fund beginning in 2021. If the City Council approves this capital <br />structure for the Golf Course Fund, staff will amend the proposed financial policies to <br />remove the renewal and reserve calculation requirement for the Golf Course Fund. <br />Additional information on 2019 sales tax revenue has become available since the <br />September 3 meeting. The City recently executed a sales tax audit settlement <br />agreement, which will significantly increase the projected sales tax for one year — 2019. <br />Prior to this agreement, staff was projecting sales tax for: <br />• 2019 at 2.0% over 2018; <br />• 2020 at 1.5% over 2019; and <br />• 2021 at 1.5% over 2020. <br />Staff is now projecting sales tax for: <br />• 2019 at 7.1 % over 2018; <br />• 2020 at 3.3% less than 2019; and <br />• 2021 at 1.5% over 2020. <br />CITY COUNCIL COMMUNICATION <br />11 <br />