City Council Agenda and Packet 2016 11 01

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City Council Meeting Minutes October 12, 2016 Page 4 of 7 Mayor Pro Tem Lipton stated he has been hearing from residents that the City should raise the non-resident rates at the recreation center. Director Stevens stated no increases are incorporated for 2017 as staff is waiting to see if the expansion is supported. Fees would be raised if an expansion is built. Mayor Pro Tem Lipton stated that is unacceptable and he would like to see non-resident rates increased in 2017. He stated staff is not being aggressive enough about charging, particularly non-residents. Councilmember Loo agreed with an increase for nonresidents for 2017, but noted an increase in use of the facility in 2018 is unlikely if the center is under construction. Director Stevens noted the non-resident rates were raised in 2016 to generate more revenue at the direction of City Council. It can be raised again this year if that is what Council directs. Councilmember Stolzmann agreed fees should be increased. Councilmember Keany agreed 2017 non-resident fees should be increased as long as they are in-line with fees in neighboring communities. Councilmember Loo asked if the key indicators for recreation could more clearly identify what the costs are and why the numbers have changed so much with the change to program budgeting. Councilmember Keany asked if the preschool program is competing with the private sector as there are now many options available in the area. If we keep the program it should not be subsidized if it competes with private enterprise. Mayor Pro Tem Lipton noted Nite at the Rec attendance is up significantly and this is the kind or metric that is helpful in reviewing the budget. Golf Subprogram City Manager Fleming stated the revenue projections for this subprogram are greatly affected by the debt service the Golf Fund owes the Utility Fund. He noted the need to set aside funds to replace normal equipment is between $60K - $300K annually to cover normal capital replacement costs plus savings for large capital needs. Currently, the City believes the fund is earning sufficient revenue to afford some capital improvements and pay the debt service to the Utility Fund for 2016, but it does not allow the fund to set aside any reserves for future needs and the projections show it being underwater for at least 10 years if the debt service is required. One option is for the General Fund to cover the debt service which would leave the Golf Fund in good condition with adequate reserves.