Finance Committee Agenda and Packet 2018 02 19

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City Council Finance Committee Meeting Minutes 01/19/18 Page 4 of 6 Mayor Muckle stated he agreed with Member Maloney in principle, but that it may not be possible in practice. Finance Committee Member Lipton stated that, under the current process, there is no opportunity for department directors to propose funding options, change priorities or look at cost savings. Member Lipton stated that the current process is just additive. Director Watson stated that there are other models and methods of budgeting available such as Priority -Based Budgeting or Budgeting For Outcomes. Director Watson asked the Finance Committee if they wanted to switch the review process to review operations first and capital second. City Manager Balser stated there are many options to consider, but that she and staff are seeking a vision with clear long-term goals from City Council. The budget calendar, forms and corresponding narrative can be located in the packet of the January 19, 2018 Finance Committee Meeting. FINANCIAL STATEMENTS FOR THE MONTH ENDED DECEMBER 31, 2017 Senior Accountant Graham Clark presented the financial statements for the period ending December 31, 2017. Mr. Clark highlighted three new columns were added to the financial statements (Current Estimate, $ Variance to Estimate, and % of Estimate). Director Watson stated that these additions were in response to a request made by the Finance Committee at the December 19, 2017 meeting to add revenue and expenditure estimates to the reports. Director Watson stated that the Current Estimate column reflects the 2017 estimates shown in the 2018 Supplemental Budget document. Senior Accountant Clark asked the Finance Committee for feedback and comments. Finance Committee Chairperson Maloney stated that the new columns provide good financial knowledge. Mayor Muckle stated he finds the information helpful and useful and provides trending information. Finance Committee Member Lipton restated his concerns that with escalating costs, the City's reserves may be higher than needed, and that the budget needs to provide for liquidity, and added flexibility and discretion. Member Lipton asked what would be necessary to set new policies. City Manager Balser stated that the estimates used by the City are very conservative, and that a review of carry-overs and financial policies are scheduled to be discussed in second quarter based on the 2018 Finance Committee Work Plan. Senior Accountant Clark reviewed the remainder of the financial statements with the Finance Committee. Finance Committee Members stated that the Golf Course 5