City Council Minutes 2014 01 28 SP

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City Council Special Meeting Minutes January 14, 2014 Page 5 of 15 • Delay Golf Course Reconstruction • Delay Gateway Underpass Construction The total savings of delaying CIP Projects in Package 1, 2 and 3 in 2014 is $9,681,800. He reviewed the affects of Package 1, 2 and 3 Models on the General Fund Forecast; Open Space & Parks Fund Forecast and the Capital Projects Fund Forecast. He explained if there is a major disaster there is a way to delay CIP projects. City Manager Fleming requested Council discussion on the 3 Packages presented. COUNCIL COMMENTS Mayor Pro Tem Dalton was comfortable with the general fund reserves going down to the minimum. He felt the City is somewhat gun shy about disasters having just recovered from one. His comfort level was a 15% general fund reserve level. He was not uncomfortable with the Capital Fund Balance going down to zero in 2014 because he knows the City never spends the entire CIP budget. Mayor Muckle agreed with the comments voiced by Mayor Pro Tem Dalton. He was not in favor of taking out the larger projects and felt it would be an irresponsible lack of spending. He was not in favor of delaying the reconstruction of the golf course project two years. He stated he does not want to delay the City Services Facility, but options are available to the Council. Council member Stolzmann disagreed and was not comfortable with going to the minimum general fund reserves because it represents less than two months of the City's ability to pay bills. She reviewed the 2012, 2013 and 2014 budgets. In 2012 Council proposed between 2013 through 2016 to spend $1.5 million on streets. This year streets are budgeted for $1.25 million, making it $250,000 under the targeted amount. She wanted to some make sure there is a distribution of money for streets though out the City and the residents have basic services. She did not understand the funding for the City Services Facility. She stated if all the money goes to the CIP Fund, it makes the picture look much worse than it is and more money needs to be transferred out of the General Fund into the Capital Fund projects. Council member Loo asked if the base model reserve in Package 1 gives the City two or four months of funding. City Manager Fleming explained when speaking in terms of two months, it assumes no revenue is coming in and spending continues as anticipated. Council member Loo stated if disaster struck would there be drastic measures taken such as closing the library or reducing hours of the recreation center. City Manager Fleming stated if disaster struck every CIP project would be put on hold. Mayor Muckle asked about the average minimal reserves and the thought behind such reserves.