Finance Committee Agenda and Packet 2020 07 21

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City Council Finance Committee Meeting Minutes 06/23/20 Page 5 of 9 Chairperson Maloney stated he was confused by the communication narrative that stated revenue projections were not included for the Recreation Fund, but then revenue projections and expenditure reductions are included in the tables presented. Director Watson stated the revenue reductions are based on a lump sum amount estimated by Director Mosely at the June 9 meeting. Director Watson stated that staff has not yet provided line item revenue estimates. Finance Committee Member Lipton stated he is concerned the information being provided is materially incorrect, and fund balances are being overstated to the Committee and the public because of the numbers used for Recreation and Open Space & Parks Fund. Member Lipton stated there will be significant impact to the General Fund transfers, and that the numbers are just not correct. Member Lipton stated it was hoped by delaying Finance Committee Meeting by one week, and based on the discussion with City Council, better numbers for the Recreation Fund for the current fiscal year would have been available and presented today. Director Watson stated the data provided reflects the best information available to him. City Manager Balser stated that she understands the frustrations, and that better numbers will be presented at the July budget retreat. City Manager Balser stated that staff is working hard, and as quickly as possible, while also addressing the reopening challenges of certain facilities. Finance Committee Member Lipton stated his frustration and asked staff if projecting a 35% revenue reduction for the Recreation Fund is the best we can do. Open Space and Parks Director Nathan Mosely stated that the broad reduction percentage was derived by taking the 8% increase in revenue seen prior to the pandemic and closure of the facility, calculating a 50% reduction in membership fees, and a 75% reduction in program revenue. Director Mosely stated that staff will be able to dial -in that number better once the facility reopens early July, and the public response to the reopening can be gauged. Chairperson Maloney asked if, for the purpose of continuing the discussion, an approximate $1 M shortfall and transfer from the General Fund to the Recreation Fund could be used. Director Watson stated that would be fine. Director Watson stated to the Finance Committee that a narrative has been provided in the packet and describes the reductions in detail, along with a summary of the reductions by division. Director Watson stated that a 2020 budget amendment reflecting these reductions will be brought forward to City Council hopefully by July 14. Finance Committee Chairperson Maloney asked why there is a reduction of $322K for the Street Maintenance Division, when the latest Citizen Survey rated the City 7