Finance Committee Agenda and Packet 2023 06 15

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City Council Finance Committee Meeting Minutes May 18, 2023 Page 3 of 4 Questions from the Committee: Councilmember Dickinson asked for clarification on the business income losses. Councilmember Hamlington asked if (10:14am) The City Manager noted that another big cost is the loss of two parks as well as the possibility of a lot of smaller costs piling up. Councilmember Hamlington asked if the insurance policies are being reviewed with relation to what is covered/not covered and amount of reimbursements. The City Manager mentioned that Travelers was willing to give a reasonable bid for this year's coverage and the City is working hard to ensure we have good coverage for a reasonable price next year. The Risk Management Specialist noted that the City's loss ratio right now is 11.53. Fiscal/Reserve Policy Revision: The Director of Finance presented an overview of the GFOA recommended Reserve Policy and the City's current reserves. The City doesn't have a disaster fund or disaster reserve. The Director of Finance noted that disaster funds are uncommon; most organizations use the General Fund reserve for disasters. It was noted that disaster reserve funds can be useful for cash flow while requesting support from the State and Federal agencies. There was a discussion around the City's current reserve and what an appropriate reserve level might be. Questions from the Committee: Councilmember Hamlington asked if there are any thoughts on raising the requirements for the General Fund to cover disaster costs? The Finance Director noted that the 25% target is higher than the GFOA recommended reserves. Councilmember Dickinson noted that we're at the target but still uncomfortable so the target was increased to 25%. The Finance Director noted that the City is projected to have about a 39% General Fund reserve for disasters at the end of this fiscal year. The City Manager noted that the City received $5M in ARPA funding to assist with disaster recovery. Sales Tax Reports: The Tax Auditor presented a summary on the City's 2023 Q1 tax revenues. The Finance Director noted that Bag Tax is remitted quarterly. There was a general discussion about the tax revenue summary. Questions from the Committee: None. 5/75