Finance Committee Agenda and Packet 2018 10 15

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City Council Finance Committee Meeting Minutes 09/11/18 Page 5 of 7 anything larger coming before City Council. City Manager Balser stated that she appreciated the Committee's trust and believes this type of structure would improve the efficiency of the BAP program. Chairperson Maloney requested City Manager Balser add the discussion of this issue to the 2019 City Council Work Plan. Finance Committee Members agreed this is a matter the full Council needs to consider, as not everyone may have the same opinion. The reports and corresponding narrative can be located in the packet of the September 11, 2018 Finance Committee Meeting. LONG-TERM FINANCIAL PLAN — EXPENDITURE TARGETS Finance Director Kevin Watson presented to the Finance Committee a summary of expenditure actuals, estimates and targets for years 2016-2024 for discussion. Director Watson stated that the target amounts are derived from a combination of trends, assumptions, and experience, but may be adjusted. Finance Committee Member Lipton stated that the target amounts are not consistent or sustainable and that the City needs to address what we can do with less resources. Member Lipton stated that if the Federal Inflation Rate is 2.5%, then the City should be using the National average. Member Lipton stated that the City targets or assumptions are very different, and that we are not restraining ourselves. Member Lipton stated that the impact is very evident when looking at the 20-year Repair & Replacement Model tool for the Golf Course and Recreation/Senior Center. Mayor Muckle asked for clarification of the percent of change amounts represented in the table. Director Watson stated that the 2018 percentage includes all budget amendments, 2019 and 2020 include all new positions, and 2021 forward are the target percent increases. Director Watson stated that the trend indicates increased service level, staffing, and rate adjustments. Member Lipton stated that revenue and expenses must be aligned better and that time is running out in the budget process. Director Watson stated that the budget being presented on September 17 has all funds in balance and does not ask City Council to restrict service levels. Director Watson stated that he is open to changing targets, but if the Finance Committee or the full City Council feels the targets are too aggressive, then they must inform staff so that expenditures and services can be pulled back. Finance Committee Member Lipton stated that he is concerned about getting the broader models aligned quickly. Director Watson stated that he can overlay the 2016 — 2024 amounts for the Golf Course and Recreation/Senior Center and then 6