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Regular City Council Meeting <br />Monday, April 10, 2017 <br />Page 9 <br /> <br />Nays: None. <br /> <br />7. Business Items <br /> <br />a. Update on the 2016 Budget Surplus/Deficit for Key Operating Funds <br />Finance Director Chris Miller highlighted information as detailed in the RCA, and <br />displayed the chart on page 1 adding an additional column entitled “Amount <br />available above the low target percentage.” By Fund, that included: <br />General (unrestricted) = $1,529,427 <br />Parks & Recreation = 470,070 <br />Communications Fund = 384,309 <br />Information Technology = 814,042 <br />License Center = 995,551 <br />TOTAL = $4,193,398 <br />Mr. Miller advised that any imbalances would come up for additional discussion <br />in May of 2017 as part of the 2018 Budget related to the Capital Improvement <br />Program (CIP) and short -term sustainability over the next few years. <br /> <br />Regarding the CIP information provided in the packet, Councilmember Willmus <br />asked if the License Center number had increased or was being addressed for fu- <br />ture planning. <br /> <br />Mr. Miller advised that at one point, $650,000 had been earmarked, but as co n- <br />versations continued to evolve over the last year, staff was not clear on what the <br />City Council wanted to keep in there or if the intent was to make improvements <br />on-site or consider a grand scheme. With those numbers still in flux, Mr. Miller <br />advised that staff continued to await City Council direction. In agreement with <br />Councilmember Willmus’ estimat es, Mr. Miller confirmed another $500,000 <br />could be added to the License Center CIP. <br /> <br />Councilmember McGehee asked for Mr. Miller’s suggestions for the City Council <br />to consider weaning itself off the use of reserves for day-to-day operations, and <br />whether they had any new input based on 2017 operations. <br /> <br />Mr. Miller advised that he and City Manager Trudgeon remained consistent in <br />recommending that the City Council wean itself off the use of reserves. While it <br />has been relatively painless to -date since the reserve levels were in such good <br />shape, Mr. Miller stated his and Mr. Trudgeon’s concerns for the city’s long -term <br />financial sustainability in continuing that practice; rather than reforming and r e- <br />ducing programs and service levels in the near future. Mr. Mil ler advised that <br />there were three choices before the City Council in addressing the issue: through <br />redirecting funds from one program to another; by re-prioritizing services and <br />programs; or by raising taxes. While admitting that all of the choices requir ed <br />hard conversations, Mr. Miller advised that there was no easy way out as the City