Finance Committee Agenda and Packet 2021 07 19

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City Council Finance Committee Meeting Minutes 06/14/21 Page 5 of 6 • Recreation Fund Reserves. o The policy sets the minimum reserves at 15% of current operating expenditures. o The policy also requires a capital asset renewal and replacement reserve. The purpose of this reserve is to accumulate funds for the timely renewal and replacement of Recreation Center and Memory Square Pool assets. The methodology for calculating this reserve is approved by the Finance Committee. o The Recreation Fund requires a recurring annual transfer from the General Fund. The maximum annual General Fund transfer is calculated by taking the General Fund subsidy for the Recreation Center/Memory Square Pool in 2017 ($986,300) and inflating that amount on an annual basis by the regional Consumer Price Index for All Urban Consumers. The 2017 General Fund subsidy level is the starting point for the calculation, since that is the last year that the Recreation Center and Memory Square Pool were funded within the General Fund. • Golf Course Fund Reserves. o The policy sets the minimum reserves at 15% of current operating expenditures. o To assist the Golf Course Fund in meeting its reserve minimum, beginning with the 2021 fiscal year, all Golf Course capital outlay is funded through the Capital Projects Fund. As part of the discussion, the Committee asked for a follow-up discussion on General Fund reserves. Specifically, reconsidering the appropriate "target" reserve for the General Fund. The report and corresponding narrative can be located in the packet of the June 14, 2021 Finance Committee Meeting. STAFF REPORTS/UPDATES/DISCUSSIONS Update on State's Sales & Use Tax System Kevin Watson, Finance Director, and Jeanette Longoria, Tax Manager, updated the Committee on staff's ongoing efforts to review and implement the State's Sales & Use Tax System (SUTS) and consider implementation. Update on Impact Fees Heather Balser, City Manager, updated the Committee on the upcoming review of the City's Developer Impact Fee. 0