City Council Minutes 2018 10 04 - Laserfiche WebLink

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City Council Meeting Minutes October 4, 2018 Page 7 of 10 Mayor Pro Tem Lipton asked what the proportion of the benefit costs are for employer and employee. City Manager Balser stated the cost is split and that same split is used for the assumptions. FINANCIAL POLICES Director Watson reviewed the proposed changes in policies: 2.2 Open Space & Parks Fund Reserves • Removes "targeted" fund balance. • Establishes recurring annual support transfers from the General Fund. • States City Council will annually consider interfund transfers of excess General Fund or Capital Project Fund balances for property acquisition reserves. 2.5 Recreation Fund Reserves • Sets minimum fund balance = 15% of operating expenditures. • Establishes recurring annual support transfers from the General Fund. • Requires capital asset renewal and replacement reserve, separate from operating reserve. 2.6 Golf Course Fund Reserves • Sets minimum fund balance = 15% of operating expenditures. • Establishes recurring annual support transfers from the General Fund. • Requires capital asset renewal and replacement reserve, separate from operating reserve. Mayor Pro Tem Lipton asked why the Golf and Rec Funds need reserves, couldn't the General Fund act as their reserves. City Manager Balser noted it is more transparent to have it in the individual funds. Mayor Pro Tem Lipton noted it was going to be a large amount for the initial transfer. The balance is needed either way and Director Watson noted why not make the transfer in this year when the funds are available. Councilmember Maloney stated there is a need to have funds for renewal and replacement at the rec center. He recommended getting rid of the 15% operating fund balance for rec except for renewal and replacement. Recreation Councilmember Stolzmann noted the finance committee suggested creating the rec fund and making a transfer to support the 15% fund balance for the rec center. A separate conversation needs to be had in the future to decide the renewal and replacement policies. Mayor Muckle can probably sup port capital reserve for renewal and replacement for the rec center, but not for the golf so we aren't guaranteeing subsidizing the course.