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Finance Committee Minutes November 7, 2017 <br />ordinance and may be adjusted if the final allowable levy is less. Also included is an excess levy <br />in the amount of $2,800,000 for debt service related to the Public Safety Plan unlimited tax <br />obligation bonds sold at the end of 2016. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER <br />13, 2017 COMMITTEE OF THE WHOLE FOR PUBLIC HEARING AND DISCUSSION. <br />D. 2017 Third Quarter Financial Report <br />Staff presented the Committee with the City's 2017 3rd Quarter Financial Report which captures <br />the general state of financial affairs and highlights significant items and trends. For the period <br />ending September 30, 2017 revenues are below allocated budget by $1.3 million and <br />expenditures are below budget by $4.18 million. Staff has purchased and is training on a long- <br />range financial planning tool and will be demonstrating it to Council in 2018. FORWARD TO <br />NOVEMBER 13, 2017 COMMITTEE OF THE WHOLE. <br />E. Ordinance: Mid -Biennium Budget Amendment <br />Staff is seeking Council approval of an ordinance to amend the 2017-2018 Biennial Budget. Staff <br />provided an overview of the changes, categorized as existing service levels, revenue backed, <br />carryovers, and initiatives. Staff also noted that these types of budget amendments are <br />considered administrative and not legally required, but staff policy is to implement them for <br />transparency, Council communication, and record-keeping. The only department requiring an <br />existing service level budget amendment is the Fire Department, which the Committee had <br />been briefed upon several times earlier this year. The Committee discussed at length the Fire <br />Department's request for an amendment for partial payment of the pipeline positions. The City <br />currently has five unbudgeted pipeline positions in anticipation of retirements, but 2017 saw <br />just one retirement. The Fire Department can cover $360,000 of the total cost of $600,000 for <br />the five pipelines and is requesting a budget amendment of $240,000. This money is available <br />from under -expenditures in other departments. The Fire Department proposes to drop the <br />pipeline positions down to three as the next two retirements occur. In addition, they are <br />performing daily monitoring of overtime costs and conducting monthly budget review <br />meetings. Chair Seal asked if level of fire service is still a Council policy decision. Staff confirmed <br />that the current proposal reflects previous Council direction regarding the level of service that <br />should be funded. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 13, 2017 COMMITTEE <br />OF THE WHOLE FOR PUBLIC HEARING AND DISCUSSION. <br />F. Resolution: Financial Reserve Policy <br />Staff is seeking Council approval of a resolution to revise the City's Financial Reserve Policy to <br />reflect recent changes in accounting standards. The Financial Reserve Policy outlines minimum <br />fund balance, one-time revenues, and self-insurance reserve requirements. The proposed <br />amendment will clarify that the effects of specific accounting standards will be excluded from <br />the calculation of unrestricted fund balance. In 2015 the City was required to implement a new <br />federal accounting standard for pension plans known as GASB 68. When the GASB 68 was <br />booked in the Golf Course Fund, the unrestricted balanced dropped to 8%, which is below the <br />required 20% of the previous year's revenues. The accounting entry for GASB 68 does not <br />impact actual available fund balance. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 20, <br />2017 REGULAR CONSENT AGENDA. <br />