Finance Committee Agenda and Packet 2021 10 18

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City Council Finance Committee Meeting Minutes 09/27/21 Page 3 of 4 Option 2: Maintain the 2.750 mill levy regardless of the changes in assessed value. This option would continue to increase the fund balance until the 2026 call date. At that time, the City would begin the process of early redemptions and pay down the debt as quickly as possible. A similar option was selected for the 2004 General Obligation Library Bonds, which were completely paid in 2018. The Committee recommended staff proceed with Option 2 and certify the 2021 levy at 2.750 mills. The report and corresponding narrative can be located in the packet of the September 27, 2021 Finance Committee Meeting. REVENUE PROJECTION DASHBOARD Kevin Watson, Director of Finance, presented the Revenue Projection Dashboards dated September 17, 2021. Director Watson clarified the meaning of the date on the dashboards. The date of September 17, 2021 refers to the date of the Finance Department's last review, not the date of projections received from the departments. The projections are very similar to those presented at the August meeting. The only changes include slight increases to Consumer Use Tax, Franchise Tax, Marijuana Tax, and Construction Permits. Construction Permits have exceeded their initial projection, so Finance has adjusted based on general trends. None of the revenue categories have been adjusted down. The dashboards and corresponding narrative can be located in the packet of the September 27, 2021 Finance Committee Meeting. RESERVE POLICIES Mayor Pro Tern Maloney presented some possible amendments to the General Fund Reserve Policy, including an increase to the targeted fund balance to 30% of annual operating expenditures and a restriction to one-third of the fund balance to open space acquisition. The Committee and Council Member Leh discussed the proposed amendments in terms of fund balance commitments versus legal restrictions, open space acquisition reserves in the General Fund versus in the Open Space & Parks Fund, and financial flexibility for current and future Councils. The Mayor Pro Tern thanked the Committee for the discussion and agreed to submit a second draft of amendments at a later meeting. El