Finance Committee Agenda and Packet 2020 07 21

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City Council Finance Committee Meeting Minutes 06/23/20 Page 7 of 9 Director Watson stated that, in addition to the expenditure reduction narrative, a memorandum from Director Mosely is provided in the Finance Committee packet, and that the latest Golf Course dashboard had been emailed to the Committee on Friday. Director Watson concluded his presentation assuring the Finance Committee that all the revenue and expenditure projections would be updated, and will continue to be updated throughout the budget process as new information becomes available. Member Lipton stated that the City Manager has done a good job, even though he does not agree with all the reductions proposed. Member Lipton stated City Council will probably not agree with all the reductions either, however, Member Lipton stated he hoped City Council Members would not second guess the City Manager and request changes. Finance Committee Member Lipton had a question regarding why transfers to Fleet Management and IT are not being done for 2020. Director Watson stated the purpose of suspending the one-time transfers for 2020 was to pull down the reserves in these internal service funds. Director Watson stated Technology Management would be pulled down to $168K and the Fleet Management pulled down to $575K, with the transfer savings left in the General Fund. Director Watson stated the remaining funding in these accounts is sufficient to meet all the CIP Plan requirements through 2026. Member Lipton made a cautionary statement that when such preliminary figures are being used, it opens the door for City Council to question the reductions proposed and interferes with the budget process. Finance Committee Member Lipton stated he was disappointed with where the City is in this process, and in not having all the information necessary for the tables and charts presented. Chairperson Maloney stated he appreciated all the work staff has done, but feels the information presented and revenue projections are too optimistic. Chairperson Maloney stated the lack of detailed information for the Recreation Center is concerning, and that the use of the square root model indicates a relatively quick recovery he believes will be longer. Finance Committee Chairperson Maloney stated that the City's revenues need to drive all expense reduction discussions. Mayor Ashley Stolzmann stated that projections can also be too conservative and lead to unnecessary staffing, program, and spending cuts which do not help the economy. Mayor Stolzmann stated Director Mosely has estimated a 50% reduction for the remainder of 2020, and asked Committee Member Lipton what he would propose that is neither too optimistic, nor too pessimistic. E