CCMIN12052017 - Laserfiche WebLink

Councilmember Brown stated she was surprised there was an increase of 23% in water sales and reported part of this year's water sales included part of the drought surcharge. Director of Finance Olson added part where the Zone 7 increases. In response to Councilmember Olson's question regarding how the Golf Course is doing, City Manager Fialho reported the quality of the play is very good and Council invested money in repairs last year. He added it was an exceptionally rainy year which is most of the impact. Staff is concerned and is monitoring the situation. Mayor Thorne noted there were no speaker wishing to address the Council. Councilmember Narum commended staff noting revenues are up 3%, yet they have kept expenses, down. Mayor Thorne agreed and expressed pride in staff and in the process. Councilmember Brown stated everyone is tightening their belts and announced an upcoming CALPERS meeting where discussion will be on expenditures that are not in the budget; the PERS Unfunded Liability. Mayor Thorne suggested this should be Council's number one priority for next year. MOTION: It was m/s by Narum/Pentin to waive full reading and adopt Resolution 17-982 accepting the FY 2016/17 Year-End Operating Budget Report and designate General Fund Reserves. Motion passed by the following vote: Ayes: Councilmembers Brown, Narum, Olson, Pentin, Mayor Thorne Noes: None Absent: None Abstain: None 16. Consider a resolution accepting the FY 2016/17 Year-End Financial Report for the Capital Improvement Program (CIP) Budget and amend the FY 2016/17 CIP Budget Director of Finance Tina Olson presented details of the FY 2016/17 CIP Year-End Report and displayed a PowerPoint presentation addressing the Amended Budget, Budget Amendments, Adjusted Budget, Budget Carryovers, Actual amounts and Dollar Variance, as well as Revenues and Expenditures and staff recommendations for all CIP Funds including Sewer Funds, Water Funds, Miscellaneous Funds, Parks Funds, Streets Funds, a Summary of CIP Reserves and Fund Balances, and Next Steps. Mayor Thorne noted in some areas, there were fewer revenues than projected and wondered if there are any red flags Council should be made aware of. Director of Finance Olson reported it has mostly to do with developer impact fees and staff makes an estimation of what those fees might be. She noted the need to develop a better methodology, and staff is working towards that goal. In response to Councilmember Narum's question, she reported it has to do with timing. Councilmember Brown referenced Streets Funds under the CIP and stated there is a $3.5 million loss in revenues, because streets were not completed by June, to qualify for funding. Director of Finance Olson reported the City does not lose the funds, but the City could not bill for the grant fund in a particular year and will be billed in the next year; it is a timing issue with the grant funding. Mayor Thorne noted there were no speakers wishing to address Council. City Council Minutes Page 6 of 7 December 5, 2017