CCMIN11062018 - Laserfiche WebLink

the retirement community. She stated the residents of the community are interested in remaining independent and are concerned with driving safety impacts with the bridge currently striped for only two lanes. MOTION: It was m/s Pentin/Narum to implement Phase II of Stoneridge Drive by removing the merge lane and marking the additional travel lanes. Motion passed by the following vote: Ayes: Councilmembers Brown, Narum, Olson, Pentin, Mayor Thorne Noes: None Absent: None 13. Adopt a resolution accepting the FY 2017/18 Year-End Operating Budget Report and designating General Fund Reserves A staff report was given by Director of Finance Tina Olson and provided PowerPoint Presentation. She reviewed the various funds noting there was a surplus in the General Fund of $6.7 million, with revenues generating $3.1 million in surplus. Variances included changes due to a state computer glitch in sales tax, business and industry sales taxes were down, along with decreases in autos and transportation. There were changes in accounting revenues for recreation due to a new accounting practice. There was a 4.6% increase in revenues to date from the Fiscal Year 2016-17 budget. The total surplus amount of $6.7 million from the 2017-18 Fiscal Year is proposed to be allocated to various reserves including the Operating Reserve, LPFD Worker's Comp Reserve, Downtown Beautification Reserve, CIP reserves, and Report and Replacement reserve. The City's reserve policy is to ensure a minimum 20% reserve with a goal reserve amount of 25%. The City maintained a reserve amount of 25.3% in Fiscal Year 2016-17 and 23.3% in Fiscal Year 2017-18. Finance Director Olson reviewed the increased use of water as the drought continues and water revenues and water expenses increased. The goal is to maintain 25% of operating expenses in these reserves and the City is currently far exceeding that goal. The golf fund did not hit its projected revenue for Fiscal Year 2017-18. The repair and replacement fund was exceeding its goal. There was a revenue balance in the retiree medical fund. Reserves were utilized to pay off the golf fund debt. Mayor Thorne confirmed and Finance Director Olson acknowledged the General Fund projected surplus does not include what is owed for the PARS trust. Councilmember Pentin confirmed the water and sewer surplus funds must be spent on water and sewer projects. Finance Director Olson noted the surplus funds will be allocated to water and sewer projects during the annual Capital Improvement Project review. Councilmember Brown requested clarification regarding the golf course reserve and whether the General Fund was providing supplementation. Finance Director Olson noted there was no supplementation from the General Fund; the golf fund was transferring their fund balance back to the General Fund to repay the loan. Councilmember Pentin noted the City was able to save $10 million on golf course related construction. Mayor Thorne noted there were no speakers to address this item. City Manager Fialho acknowledged the short turn-around time Finance Director Olson and staff worked under to present the most accurate and up-to-the-minute budget information. City Council Minutes Page 4 of 5 November 6, 2018