City Council Minutes 2011 03 08 SP

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City Council Budget Retreat Special Meeting Minutes March 8, 2011 Page 2 of 5 measure on the November ballot. The 2011 budget does not reflect any revenue or expenditures attributable to the new Use Tax. This special budget retreat is intended to give the City Council an opportunity to discuss the implications of the new Use Tax and provide staff with direction on any amendments to the 2011 budget and planning for 2012 and subsequent years. Staff will also discuss and requests City Council direction on alternative approaches to budgeting, performance measurement and goals for 2011 and subsequent years. He asked Finance Director Watson to present the City's current and long term financials. ADDRESSING CURRENT AND LONG -TERM FINANCIAL ISSUES Finance Director Watson summarized the 2010 year -end results for the General, Conservation Trust, Historic Preservation and Capital Projects Funds. He noted 2010 ended very positively financially. 2010 General Fund balance $5,103,000. Fund balance increased nearly $700,000 (16 revenue exceeded budget by $879,000 and the expenditure turnback was $422,000 (3.2 2010 Conservation Trust Land Fund balance $7,720,000. Fund balance declined by $60,000 (1%); revenue under budget by only $4,400; expenditure turnback was $195,000 (13.7 Budget amendment for carry- forward of the capital projects is estimated at $125,000. 2010 Historic Preservation Fund balance $584,000. Fund balance increased nearly $261,000 (81 revenue exceeded budget by $35,000. The expenditure turnback was $255,000 (80.8 2010 Capital Project Fund balance $3,038,000. Fund balanced declined by $47,000 (2 Revenue exceeded budget by $250,000; the expenditure turnback was $1,635,000 (24.9 Budget amendment for carry- forward of capital projects estimated at $500,000. COUNCIL QUESTIONS COMMENTS City Council discussion centered on the Historic Preservation Funds, Capital Improvements and the Capital Project Fund. Finance Director Watson reviewed the projected revenue from the new use tax. For long range planning purposes, staff assumed the new tax will generate a total of around $700,000 annually. Of this total amount, about $290,000 would accrue to the Capital Projects Fund, $280,000 to the General Fund, $70,000 to the Conservation Trust Land Acquisition Fund and $60,000 to the Historic Preservation Fund. These assumptions have been incorporated into the City's long range forecasts for each fund. Finance Director Watson outlined the forecast for General, Conservation Trust and Capital Projects Funds; 5 -year Capital Improvements Plan (CIP) and unfunded projects