Finance Committee Agenda and Packet 2018 07 16

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City Council Finance Committee Meeting Minutes 06/15/18 Page 2 of 7 PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA None. DISCUSSION ON RECREATION CENTER SALES TAX AND TABOR ISSUES City Attorney Sam Light joined the meeting by phone. Attorney Light summarized the issues outlined in his June 11, 2018 letter to the Finance Committee. City Manager Heather Balser stated there are two separate issues; the excess recreation sales tax revenue anticipated to be collected in 2018, and the ongoing sales tax rate for 2019 and beyond. Manager Balser stated staff is seeking feedback from the Finance Committee as to whether additional information is needed before bringing to the full City Council, or whether the Finance Committee would like to recommend one of the proposed options contained in the City Attorney's letter. The Finance Committee Members discussed the four options and determined their recommendation would be to take a "wait and see" approach until the first quarter of 2019. City Attorney Light and staff agreed. This would allow for an accounting of the actual 2018 revenue amounts and possible resolution or clarification of the pending litigation and its appeal regarding the TABOR restrictions. Finance Committee Members requested City Manager Balser share the recommendation of the Committee with the other City Council Members at the July 12 retreat, and for staff to add the review of this matter to the Finance Committee's 2019 work plan for 1st quarter or early 2nd quarter 2019. Attorney Light stated that he would provide updates to the Finance Committee on any actions by other cities or with the appeal of the pending litigation. City Manager Balser stated that the City will not be spending any recreation sales tax revenue above the $575,000 amount stated in the 2016 ballot, and reminded Finance Committee members that any ballot issue for 2019 would have to be ready for 1st reading mid -July, 2019. The corresponding memorandum can be located in the packet of the June 15, 2018 Finance Committee Meeting. ANNUAL REVIEW OF FEES, RATES AND CHARGES Assistant to the City Manager Emily Hogan presented the listing of fees, rates and charges to the Finance Committee. Ms. Hogan reviewed the processes used by City staff to set such fees and rates. Ms. Hogan stated that where rate models or fees studies, or other community or market comparisons are not used, that staff recommends the use of a 5% inflation 3