City Council Minutes 2017 09 26 - Laserfiche WebLink

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City Council Meeting Minutes September 26, 2017 Page 3 of 11 He reviewed wage and benefit projections including new positions, changes in staffing, market salary adjustments, merit wage increases, and increased health care costs. 2018 operational additions include increased Recreation Center costs for part of 2018 (restricted to the Rec Center for the new construction) and various projects Five -Year Capital Improvements Plan (CIP) Update Four new projects were added for 2018, Planning furniture and fixtures, Library budding improvements, Museum Campus building improvements, and downtown patios. The CIP has been updated with the latest information He noted the recommended cuts in the 2018 budget to cover the recreation center project cost shortfall as presented in the packet Interfund Transfers Beginning in 2019, staff is proposing new transfers to support the Open Space and Parks Fund - General Fund will make an annual transfer to the Open Space & Parks Fund calculated as total Open Space & Parks Fund operational expenditures, less all sales and use tax revenue, and Tess all other non -capital, recurring revenue (exclusive of interest earning) Capital Projects Fund will make an annual transfer to the Open Space & Parks Fund calculated as total Open Space & Parks Fund capital expenditures less all capital -related revenue, such as one time grants, contributions, and land dedication fees, and less any transfers from the Impact Fee Fund. Fund Forecasts Director Watson reviewed the following forecasts. • The General Fund reserves are expected to increase by $1.5 million, assuming a $707,000 turn -back. The projected ending fund balance of $8.2 million equals 41 % of net expenditures, well above the targeted level of 20% • The Open Space & Parks Fund reserves are projected to decline by $1.2 million, even with the $500,000 transfer from the General Fund. The projected ending fund balance of $493,000 is above the minimum fund balance, but below the targeted fund balance, which is discussed later in the document. • The Capital Project Fund reserves are projected to decline dunng 2018, but should remain around $2 million.