Finance Committee Agenda and Packet 2019 02 18

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City Council Finance Committee Meeting Minutes 01/14/19 Page 4 of 5 Course budgets scheduled for June. Mayor Muckle requested that a bullet item be added to the 2nd Quarter discussion of the Budget Amendments scheduled for May, to include the Open Space and Parks Fund balance and funding of property acquisitions. Chairperson Maloney stated these items would be added and that other topics may be added to future agendas as needed. The reports can be located in the packet of the January 14, 2019 Finance Committee Meeting. USE OF HISTORIC PRESERVATION FUNDS FOR MUSEUM CAMPUS DEVELOPMENT Director Zucccaro presented a memorandum discussing the City's current practices regarding the use of Historic Preservation Fund (HPF) money, and the Finance Committee's inquiry to fund plan development/design for the potential museum campus addition. Director Zuccaro reviewed the analysis of the approving Ballot Issue 2A, the interpretation of City Council's authority provided by the City Attorney, and highlighted the pros and cons of utilizing HPF funds for the museum campus design work. Director Zuccaro stated that City Council has the leeway to create incentives and to broaden policies, even to grant one-time incentives with no limit on the amount, either by funding resolution or ordinance. This was done for the Grain Elevator and the Miner's Cabins. In practice, however, Director Zuccaro stated that HPF money has not been allowed to be used to pre -pay design work, only for reimbursement of work performed under an alteration certificate. Finance Committee Member Lipton asked specifically about the legal aspects of using HPF money. Director Zuccaro stated that the HPF is not intended to be a funding mechanism, but rather as revenue to fund grants and incentives. City Manager Balser added that new construction adds to the complexity of the issue. Mayor Muckle stated that using HPF money to pay for the museum campus design and expansion is a terrible idea. Mayor Muckle stated that he would support HPF money being used to reimburse the General Fund, which is where Mayor Muckle believes the funding for the project should originate. Chairperson Maloney stated that there are consistency issues that need to be addressed. Member Maloney asked if it would be possible to spend the HPF money on the design work in order to gain construction funding by ballot issue. The Finance Committee Members and staff discussed the definition of "extraordinary circumstances". Director Zuccaro stated that work is being done now to write a draft resolution that will define "extraordinary" as well as increase 5