Finance Committee Agenda and Packet 2020 04 24

Home Browse Search

City Council Finance Committee Meeting Minutes 04/24/20 Page 3 of 4 Finance Committee Members stated that anticipating an opening for the Recreation & Senior Center and other City facilities is speculative. Chairperson Maloney stated that Recreation Center program revenue will be down significantly, requiring a larger transfer from the General Fund to keep the Recreation Fund solid. There was also discussion regarding the Renewal & Replacement reserve, and that additional information regarding the fixed expenses are needed from Director Nathan Mosely. The Committee Members and staff discussed that all inter -fund transfers can be reviewed, and that City Council may revise or amend the City's current fund balance and transfer policies. Director Watson stated that removing transfers would be a big change and would have a big impact to the funds affected. The Finance Committee discussed that it would need to be determined whether to plan for a soft landing, using more of the City's reserves, or look at more drastic reductions to retain higher reserves for an unknown future. Director Watson asked the Finance Committee how they wanted him to proceed and if there are any assumptions the Committee wished him to utilize. Director Watson added that was willing to put together scenarios but wants to be in compliance with the Committee's direction. Director Watson stated that he will need help from department Directors to revise all the line item numbers within each of the funds. Finance Committee Chairperson Maloney stated that the projection tool developed by Member Lipton was a good tool to be combined with the data available to staff. Finance Committee Member Lipton stated that he would touch base with Director Watson to review the spreadsheet. Chairperson Maloney also stated the turnback projection for future years would need to be looked at as deeper expense reductions will reduce those projections. Director Watson stated that he would develop revenue projections/scenarios based on a u-shaped recovery, and combine Member Lipton's projections along with any May 15, 2020 data received from the State legislative council or economists. Director Watson stated that April's sales tax which will be available the first week of June will provide the first real data on the revenue impact to the City. The Finance Committee discussed and agreed to develop guiding principles to present to staff at the May 19, 2020 Finance Committee Meeting. The Committee asked City Manager Balser if she has considered staff and operating expense reductions that could be as high as 20%. City Manager Balser stated she is conservatively planning for a 20% reduction in operating expenses, based on whatever the sales tax decline turns out to be, and that such reductions will carry through to all funds with expense reductions.