Finance Committee Agenda and Packet 2018 05 22

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City Council Finance Committee Meeting Minutes 04/16/18 Page 5 of 7 Lastly, Finance Committee Chairperson Maloney stated that some of the footnotes contained in the program KPI's are not aligned. Ms. Emily Hogan stated she would review them for accuracy. The reports and corresponding narrative can be located in the packet of the April 16, 2018 Finance Committee Meeting. DISCUSSION ON RECREATION CENTER — SALES & USE TAX Finance Director Watson presented to the Finance Committee a summary of the current budget and budget estimates for the Recreation/Senior Center and Memory Square Pool for discussion. Director Watson stated that the revenue and expenditure amounts shown are for a partial year. Finance Committee Member Lipton asked about the general restrictions for the recreation sales tax. City Manager Balser stated the use must be for maintenance and operations. Director Watson stated that there are some staff and incremental costs, but that City Attorney Sam Light stated some uses could be challenged. Director Watson stated there is no way to calculate expenses at this time. Director Watson stated that the total sales tax revenue less the revenue stated in the ballot title will represent the amount of the TABOR rebate for the first year and that some cities issue utility billing credits as a method of rebate. Other options include requesting from voters to keep any excess tax collected. Mayor Muckle asked what amount is anticipated for a rebate. Director Watson stated that the ballot title anticipated $575K, but it is anticipated the City will receive $890K, with the difference as the rebate. Member Lipton stated he is not in favor of asking voters to keep the first years' increment. City Manager Balser stated that the issue could be discussed in June. Finance Committee Members discussed and agreed that they would like to have a discussion of the rebate options with City Attorney Light in May, and requested City Manager Balser to coordinate. Director Stevens presented three options for the Recreation Senior and Aquatics annual repair and replacements costs over the next six years for discussion. City Manager Balser stated that the City needs to set a baseline. Member Lipton asked if the sales tax revenue can be used for the tennis courts or playing fields. City Manager Balser stated that the City Attorney has stated that it is okay to use sales tax revenue for capital reserves. Finance Committee Member Lipton stated that reserves will continue to build but will not initially be needed for repairs. Member Lipton stated that the small increase for In -City user fees may not be needed. 6