CC_Minutes_2017_1204 - Laserfiche WebLink

Home

Regular City Council Meeting Monday, December 4, 2017 Page 4 Finance Director Miller responded that assessments were one issue, but stated that he was unable to actually define each city's philosophy for utility rate structures. Mr. Miller did note that the rate was dependent on water sourcing for each city, whether they provided softened water such as is done in Roseville, and other vari- ables beyond assessments. Mr. Miller advised that the City of Roseville's philos- ophy had been and continued to be, to capture all direct and a majority of indirect costs involved in providing each utility operation. Mr. Miller advised that he re- search those variables for future annual budget presentations to provide a clearer picture. At the request of Councilmember McGehee, Finance Director Miller offered to provide additional information on capital improvement program (CIP) funds spe- cifically set-aside in 2018 and future years for the new Cedarholm Golf Course clubhouse currently under construction. Specific to Attachment C, projecting 2017 budget surpluses or deficits for key op- erating funds, Councilmember Etten asked Finance Director Miller for further de- tails on projected cash reserves in the General Fund and how that varied from that presented in September of 2017. Councilmember Etten referenced a recent email communication from staff to the City Council reflecting donation dollars for 2017. Finance Director Miller advised that Attachment C and its projections were cur- rent as of November 22, 2017 for key operating funds, with a small margin of er- ror possible. Mr. Miller noted that, embedded in cash reserves in the first col- umns were included donations for the Parks & Recreation, Police and Fire De- partments representing implied pledges and their use for the intent monies were given. For the purpose of this exercise, Mr. Miller advised that those "pledged" donations had been removed resulting in the fourth column "Less Donations," a new column this year to further assist the City Council in refining their considera- tion of use of reserve funds. In looking at 2017 General Fund cash reserves projected at approximately $6 mil- lion, Councilmember Etten asked where that fit into reserve level targets. Finance Director Miller responded that, with a margin for error, he projected an approximately $650,000 cushion before hitting the 35% target goal if the $6 mil- lion figure was used, noting approximately $781,000 budgeted in programmed use of General Funds reserves. However, Mr. Miller advised that the city typical- ly budgeted for full employment, but opined that would probably not occur, al- lowing for approximately $500,000 in deficit spending based on the projected 2018 budget.