2017.06.27 WS Minutes - Laserfiche WebLink

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11 Of CNNE W PRMTON the (11Y, that works for you Council Worksession June 27, 2017 5:00 pm Present, Mayor Valerie Johnson Councilmember Gina Bauman Councilmember Brian Strub Councilmember Paul Jacobsen COUncillnember Mary Burg Absent: Staff in Attendance: Dean Lotter, Brenda Davitt, Jason Hicks Guests in Attendance: Fund Balance Poliev Discussion Lotter stated staff had a presentation for the Council to consider Fund Balance policy changes. Davitt provided the Council with a presentation on proposed changes to the City's Fund Balance policy. She commented on the importance of the City having long term financial plans in place. She indicated the Council was working to finance street improvement projects debt free by 2025, while also promoting a healthy Community Reinvestment Fund. She reviewed the Office of the State Auditor's requirements for fund balances and commented on the City's current percentages. She suggested the 35% minimum be measured at year end only. She then reviewed a potential target fund balance projection through 2025 with the Council. She recommended the City Council not transfer the excess fund balance to the Community Reinvestment Fund but rather keep the balance within the General Fund. She stated this one minor change would allow the City to meet all Fund Balance policies. She discussed the other revenues sources that were feeding the Community Reinvestment Fund. Davitt provided further comment on the City's Fund Balance policies and recommended the Council change the Fund Balance policy to read year end only measurements. In addition, she recommended not transferring excess funds within the General Fund into the Community Reinvestment Fund on an annual basis. She anticipated that the Council may have to adjust the AN over time. Lotter commented on the importance of the Council complying with both the Fund Balance policy and the City's strategic financial priorities. Councilmember Burg asked if the proposed budget took into consideration the increased revenue the City would be making from the license bureau. Davitt stated this had not been taken into consideration. Councilmember Bauman stated she did not object to the yearend measurement suggestion made by staff. She expressed concern with the City's ability to continually invest $150,000 on a yearly basis. She believed this was a lot of money that was collected from taxpayers. She suggested this item be reassessed in a year and proposed the budget be reviewed earlier in the year in order to address the $150,000 issue. Mayor Johnson stated it was not a bad idea to review the budget earlier in the year, but commented this would not be possible for this year.