05.07.19 Work Session - Laserfiche WebLink

Home Browse Search

City Council Meeting Minutes May 7, 2019 revenue sources remain flat. Ms. Neel reviewed General Fund expenditure trends. She provided that the five year trend reflects 6% average increase in personnel cost, operating costs have remained relatively flat, 200+% increases starting in FY18 in non-recurring are due to economic incentive payouts. Ms. Neel reviewed General Fund budget constraints. She provided that the capacity to fund budget requests is a serious constraint. Departments budget requests were $8,000,000 for this budget cycle. She provided that there is a serious gap between what is being requested and what the actual General Fund capacity is. The General Fund capacity preliminary estimate was $600,000. She provided that the City Manager and staff are prioritizing requests and preparing recommendations. Ms. Neel also informed the Council that the preliminary tax rolls have been received and that staff will continue to revise the forecast in preparation of the June workshops. Ms. Neel reviewed the Enterprise Funds related to utilities. She stated that the Departments submitted their requests and that consultants are preparing rate models considering: growth factors, operational increases, future capital improvement projects and capital needs. She provided that the rate model output will be presented to the Citizens Utility Advisory Board (CUAB) and that CUAB will prepare a rate and budget recommendation for the Council. Ms. Neel reviewed the Hotel Motel Tax forecast and explained that last year we actually saw a decrease last year. She provided that revenue for first 6 months of FY19 exceeding budget due to La Quinta revenue. Calendar year 2018 average room rate declined 4% while occupancy declined 9% from prior year. Ms. Neel reviewed the budget timeline. She provided that the Council will have a two day budget workshop on June 26 and 27. Following the work during those workshops the Council will receive the proposed budget on August 1, followed by the 1st reading of the tax rate on August 20th, the 1st reading of the budget & 2nd reading of the Tax Rate on September 3. Final adoption will be on September 17. Ms. Hurlbert reviewed the FY19 Budget Amendment. She provided that the FY19 General Fund Revenue is forecasted to exceed budget and that further analysis is needed prior to funding recommendations. She provided that with the collection of the Best Buy Call Center additional revenue has contributed to this variance. Ms. Hurlbert explained that Staff may be proposing City of San Marcos Page 2