02.22.18 Budget Policy Workshop - Laserfiche WebLink

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City Council Meeting Minutes February 22,2018 future. No other direction related to the Strategic Initiatives was provided. The presentation is attached for the record. Council recessed at 5:05 p.m. for dinner and returned into open session at 5:45 p.m. Mr. Lumbreras introduced the key policy considerations and assumptions for the 2018 budget policy. Heather Hurlbert,Director of Finance, provided the Council with the staff presentation. Mrs. Hurlbert reviewed general fund considerations, budget request considerations,and other fund considerations. Council requested that Staff research what our budget would look like if the property tax revenue cap were to pass at the Texas legislature. Staff will provide the Council with the ratio of paid vs. unpaid interns that work for the City of San Marcos. Mrs. Hurlbert provided the general fund revenue considerations and assumptions related to sales tax and property tax. She provided that they would like to assume zero growth for Outlet Mall collections and Sales Taxes, assume 4% growth in Best Buy collections and we will modify as trend indicates as we move through the budget process. Staff would like to assume 10% growth for initial modeling of property taxes and will have preliminary appraisals in April. Mrs. Hurlbert provided a recommendation of an annual CPI increase of 2.12% for all General Fund fees and indicated that Staff will perform a cost of service study for Community Services and bring back a fee recommendation. She recommended continuing 8% City Owned Utility Franchise Fees for FY19 and to reduce it to 7% in FY20. Mrs.Hurlbert reviewed the initial expense assumptions: 4.5% increase for Police and Fire for the 4th year of the Meet and Confer agreement. 4.5%Merit and Cost of Living increase for non-civil service employees. 5% Health Insurance cost increase. The forecast does not include any new positions-additions will be evaluated through the departmental budget request process. Departmental operating budgets will remain flat with the exception of contractual obligations,fuel, telephone, utilities,and software maintenance. City Council does not wish to suspend the annual $200K contribution to the economic development reserve. Council would like to consider redefining what these funds can be used for. Staff will compile all of the data related to all economic development incentives,and the lifespan left on those incentives,for the April 3 Work Session regarding debt. Following discussion related to fund balance the Council would like to keep a Ciryo/San Marcos Page 2