02.20.20 Budget Policy Workshop - Laserfiche WebLink

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City Council Meeting Minutes February 20, 2020 -Hotel/Motel Fund — Revenues were higher than expected by $480,700. Expenses came in lower than budgeted by $158,200 Ms. Neel continued the presentation and outlined the budget development process: • Set strategic initiatives for coming year • Formulate policy statement to guide city manager during budget preparation • Deliver budget capacity and trends • Deliver budgeted programs, revenues, and expenditure philosophy • Deliver proposed budget of all general budget items by fund type The budget timeline was outlined which included the budget policy workshop held this evening, budget policy adoption, budget work session and CIP update, budget workshops, Public Hearing and adoption of budget and tax rate, and finally the year end closeout and implementation of budget. Ms. Neel stated the economic indicators include unemployment, wages, hourly rate, home prices, and consumer price index (CPI). The 2020 21 Strategic Initiatives were discussed briefly, but will be brought back to discuss in further detail next week. These include: • Multi -Modal Transportation • Workforce Development • Workforce Housing • Downtown Vitality • Sustainability General Fund Revenue includes: Property Tax — 24% (First year of SB2 Property Tax Cap @ 3.5%) Sales Tax — 46% (Comptroller Sales Tax ruling: change in definition of place of business determining collection point) They include the following: • Base — 51% (7% average growth over last 12 months. Potential loss of $1.8M pending Comptroller interpretation of ruling.) • Outlet Malls — 24% (4% average growth over last 12 months. Positive growth since September 2017) • Best Buy Call Center — 25% (FY20 budgeted revenue of $8M, retained collections $2M. Potential FY23 revenue loss pending Comptroller ruling) All Other — 30% (other fees forecasted using historical growth trends) City of San Marcos Page 2