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Director of Finance Olson addressed Hotel/Motel Tax, Hotel/Motel Tax Trends, Business License Tax, Business License Tax Trends, General Fund Expenditures by Service Category and General Fund Expenditures by Category. Councilmember Pentin referenced Personnel as being 73% of the budget and thought he read somewhere that it was 70.1%. Director of Finance Olson felt that was the overall percent of the operating budget, but this is just under the General Fund. Director of Finance Olson addressed General Fund Personnel Expenditures for FY 2019/20 and FY 2020/21 and noted an assumption is not included in the mid-year budget for vacant positions (attrition). But an adjustment is made based on vacant positions to date, through half the year. She addressed General Fund Personnel Costs, Budgeted Wage Increases by MOU, Health Insurance, and New Positions Included in FY 2019/20 GF Contingency and General Fund Budget in FY 2019/20 Non-personnel Costs 27% of the Budget. Councilmember Pentin referenced the 25% change in Transportation and Training and asked about drivers affecting it. Director of Finance Olson reported it is related to LPFD Repair and Replacement Allocations for Equipment and Apparatus including breathing apparatus and radios. Director of Finance Olson continued addressing significant non-personnel changes to the budget. Councilmember Narum referenced Street Light Maintenance and noted when the project was done, one of the benefits was decreased maintenance costs. City Manager Fialho explained LED is newer and lasts longer than traditional lighting but also have maintenance and electrical issues not associated with the lights. He added this was not anticipated but noted energy costs decreased. Director of Finance Olson addressed General Fund Transfers-Out, General Fund Reserves, Water Operating Budget, Water Operating Fund Highlights, Sewer Operating Budget, Sewer Operating Budget Highlights, Golf Course Operating Budget and Next Steps. Brief discussion followed regarding Golf Course round estimations and it is assumed with the course conditions and increased marketing, there will be an increase in play but nationally, golf is in a decline. City Manager Fialho commented on trying to avoid a General Fund subsidy and going forward, staff will consider steps to balance the budget for the Golf Course. It would be prudent to have strategic discussions in the future about how to leverage the Golf Course property more effectively. Vice Mayor Brown asked if high school students use the Golf Course. City Manager Fialho reported Amador uses the course and there are special rates for students to train and play. Vice Mayor Brown commented on the possibility of forming a subcommittee to discuss maximizing use of the Golf Course. Mr. Fialho felt there could be a couple of years before engaging in strategic discussions about the future of the Golf Course. Director of Finance Olson addressed next steps. Councilmember Narum referenced the PERS Rate Stabilization Fund and asked why the money is not in the Section 115 Trust. Director of Finance Olson explained it is in the Section 115 Trust adding that it is considered cash in investments but must be accounted for in the specific fund. Councilmember Narum suggested flagging it as being in the Section 115 Trust. Councilmember Narum referenced Water and Sewer Funds and reported there have been questions from residents regarding why the City is still taking the CQI rate. She wondered if it makes sense to take enough out to get the fund balance in the desired range. Director of Finance Olson stated City Council Minutes Page 5 of 7 June 4, 2019