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Council Finance Committee Minutes
October 8,2007
9:30 —10:30 am
City Manager’s Conference Room
City Council:Mayor Doug Hutchinson,Councilmember Kelly Ohlson,Councilmember
Lisa Poppaw
City Staff:Darin Atteberry,Mike Freeman,Chuck Seest,Diane Jones,John Voss,
Heather Shepherd
Other:John Knezovich,Library District Board,Josh Zaffos,Rocky Mountain Chronicle
Review and approval of the minutes from September 17th Meeting.
Approved
Budget Reserves
Chuck Seest presented background information on General Fund Reserve Balances for
the purpose of assisting the City Council in creating a City Reserve Policy.Staff
presented the following proposal:
•Reserve Policy will include the TABOR reserve (3%of General Fund
expenditures).
•Minimum Reserves set at 16.67%,which is 60 days of operating expenditures.
This is slightly higher than the GFOA minimum of 15%.
•Maximum Reserves set at 25°o,which is 90 days of operating expenditures.This
would provide flexibility for O&M costs increasing and revenue growth.
•The year-end 2006 balance was at 17.8%($19 million)which falls within the
range.The use of $1.5 million in 2008 reduces the year-end balance to 17%or
$17.5 million.
The Committee discussed the Tabor Act,and Doug asked what the exact terms are.
Chuck responded that under TABOR,a City is required to keep 3%reserves in the
budget for emergency purposes and if any money is spent,it has to be replaced in
reserves within a specific time frame.
Darin stated that reserve policies vary among Front Range Cities and there is no exact
percentage.Council should consider various options and make a recommendation that
works well for the City going forward.
The next steps will be a formal presentation to Council so that they can make a
dertermination and set a Reserve Policy in place for the City.
Meeting adjourned at 11:05 am