Finance Committee Agenda and Packet 2024 05 16

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City Council Finance Committee Meeting Minutes April 18, 2024 Page 4 of 6 Committee Comments: Councilmember Kern expressed concern with the 40% allocated for the acquisition of open space. She would prefer a 30% or similar allocation, noting that it could always be funded with more. She feels this split would provide PROS with more funding to address projects. Councilmember Hoefner asked the Director of Finance to describe the $1.2M fund balance that is available and to clarify the language mentioned in the public comment. The Director of Finance provided information on the available fund balance and what is and what is forecasted to be available at the end of 2024. He noted that the next agenda item will show the current snapshot, but it doesn't include action in 2024 such as carrying forward expenditures from 2023. He also commented that, until the 2023 audit is completed, we won't know final funding availability. This information will be provided to the Finance Committee as soon as it is available. Ultimately, it is the responsibility of the City Council to approve the budget. The Director of Finance also noted that in the park fund reserves language there is nothing in the policy which precludes funds to be acquired or transferred into it. He commented that the proposed 40% for the acquisitions reserve provided today is the highest number he felt comfortable with, and that anything higher wouldn't align with what we are doing with our budget. He agreed that reducing the acquisition reserve percentage does allow more room for PROS to direct the funding as needed. There was a discussion around what the reserve percentage should be. Councilmember Hoefner supports the 30% recommended by Councilmember Kern. Councilmember Kern agrees with the changes proposed to the language in the policy documents. Councilmember Hamlington suggested a discussion around the target reserve and what it means because it could be a moving target. There was a discussion around the language and what might be appropriate to preserve the intention of this work. Councilmember Hoefner noted that there are competing interests of current operational needs and a desire to plan for the future so having a reserve target is to balance these needs. He also commented that whatever is chosen will be a tradeoff for operational plans and long-term planning and that future councils will make decisions appropriate for their time. Councilmember Hamlington asked if there is a reason to include in the decision -making process the language to include OSAB and their recommended properties. Councilmember Hoefner supports including language that council will receive recommendations from OSAB. Councilmember Kern agrees and that it would be her expectation based on their priority properties. She agreed that adding the language will add a point of clarity and keep OSAB on task to monitor property opportunities. Councilmember Hamlington supports the proposed reduction in the acquisition percentage minimum to 30% and retracted her request to add language to the policy. The committee requested a reduction in the acquisition percentage to 30% before the May 7 council meeting. 6/90