City Council Minutes 2018 10 12 BUDGET

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City Council Meeting Minutes October 12, 2108 Page 5 of 10 City Manager Balser stated staff would like direction on General Fund contributions/transfers to the Recreation and Golf Funds. Staff supports the current practice of having capital for both these areas compete against other capital requests in the Capital Improvements Program, rather than an automatic transfer This ensures the most competitive projects move forward with the proper consideration Councilmember Maloney stated the sources of funds for Recreation includes the General Fund subsidy which makes it balance and for 2019 includes funding to create a fund balance and the 2020 number is Tess than we transferred in 2017 We need to reestablish some of the principles related to these sources of funds. Mayor Muckle stated he thought we agreed the transfer to the Rec Center would not fall below 2017 levels. Councilmember Maloney stated we need to make sure the numbers align with the Green Play report which would allow for renewal and replacement from the capital fund Mayor Muckle stated he is comfortable having a transfer from the General Fund to cover the operating deficiency and capital projects should compete with capital projects. He stated as long as the fund isn't growing consistently a small transfer for renewal and replacement is ok. Councilmember Stolzmann stated the transfer will require some more information once we open Mayor Pro Tem Lipton stated the Finance Committee and Rec Board will need to review this as we get information Councilmember Stolzmann stated we should have the transfer for the first two years to meet the operating deficit and capital requests will compete with other capital requests. Councilmember Maloney stated he wants a principle around the transfer not just a number He can agree on this for the short-term but in the long-term we need a discussion on the methodology City Manager Balser reiterated there is no automatic transfer for capital in the proposal Members agreed to keep the General Fund subsidy to the Rec Fund at the previous 2017 dollar amount plus an inflator (CPI) In 2019, the transfer will include funds to create the 15% fund balance. Capital projects will be funded first from Rec Fund and then complete with other projects from the CIP fund They noted the policy may change based on new sales tax numbers. Mayor Muckle stated the FF&E should be funded from the new tax and significant capital projects from the Capital Projects Funds.