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Regular City Council Meeting Monday, May 16, 2016 Page 5 Mr. Mayer responded that capital didn't really enter in, as these addressed spend- able resources and provide a net position number. Mr. Mayer stated that the ex- penses category for capital occurs through depreciation over the next twenty years, a challenge in evaluating funds under that context, when the city actually used funds to address capital needs. On a related note, Mayor Roe noted in the General Fund and other Funds, it ad- dressed operating revenues versus operating expenses, noting much funding comes from non-operating revenue such as property taxes and other governmental sources. Mr. Mayer used the Solid Waste Recycling Enterprise Fund as the best example for operating revenue, basically serving as an exchange transaction for taxpayers receiving a good or service and the city receiving a revenue stream, in addition to a grant from Ramsey County inaking up the bulk of the rest of the funding re- quirement. Mr. Mayer noted the need was to evaluate the fund on whether or not the revenues are sufficient without the grant to fall back on; such as the city cur- rently did with its Water Fund and Sewer Fund and their rate structures to keep them in sync. On the tax-supported funds, Mayor Roe noted it was much more confusing to the reader because operating revenue is actually only a portion of the revenue gener- ated through an activity, even though that activity may be mostly funded by other revenue sources. Mr. Mayer noted the city's operational goals to cover those needs; using munici- pal golf courses as examples of challenges, causing some jurisdictions to move them to a more governmental-type structure. However, Mr. Mayer again recog- nized the great year the golf course had experienced in 2015, so therefore, he wasn't too alarmed. Mr. Mayer suggested this may be a decision the city chooses to make in the future, in moving the golf course into a government or recreational fund. Regarding the Golf Course Fund, Councilmember Laliberte noted that the Club- house Task Force heard from several other municipalities funding capital needs versus daily operations. Councilmember Laliberte asked Mr. Mayer if he was aware of other examples that may be helpful or ramifications in moving the golf course into a government or recreational fund versus an enterprise fund. Mr. Mayer responded that in an enterprise fund, user fees would fund both opera- tional and capital expenses, unless in order to provide this service or program, capital needs will need other city resources as well. Mr. Mayer advised that this became a policy decision, but created an indication to him of potential benefits in moving toward a governmental or park and recreation tyupe of fund.