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City Council Meeting Minutes April 21, 2020 <br />Strategy which will be flexible, transparent and timely. <br />There will be three Phases: <br />Phase I: Should businesses reopen June 1, sales tax revenue shortfall would be <br />estimated at $6.4M <br />Phase II: Should businesses not open by June or shortfall exceed projections, <br />Sales tax revenue shortfall would be estimated at $8.OM <br />Phase III: Should social distancing measures be extended, fewer businesses <br />reopen, other unforeseen revenue impacts, sales tax revenue shortfall would <br />exceed 25% (more than $8.OM) <br />Currently we are implementing Phase I cost saving initiatives. These include: <br />*Managed Hiring Program <br />*April `20 Merit/COLA delayed <br />*Capital Outlay (non-essential items) <br />*Homebuyer Incentive & Business Improvement & Growth (BIG) Grant <br />*Dues, Subscriptions, Supplies <br />*Professional Development, Travel, Meals <br />*Departmental Line Item Reductions <br />*Facility Repairs (non-critical) <br />*Street overlay <br />Staff is seeking direction from Council on the following considerations: <br />General Fund: <br />Phase I consideration to further increase cost savings: <br />* Increase utility franchise fees from 7% to 8% - Council provided consensus <br />to move forward <br />Phase II considerations: <br />* Use of General Fund Balance @ 2% $1,600,000 Council provided consensus <br />to move forward <br />Phase III considerations: <br />* Issue short-term tax notes for capital outlay $2,000,000 - Council provided <br />consensus to move forward <br />* Service Level Reductions/Changes - This will be brought back at a later date <br />if needed <br />* External Agency Funding, Ch. 380 Agreements - This will be brought back at <br />a later date if needed <br />Hotel Occupancy: supplement personnel cost from General Fund $600,000 - <br />Council provided consensus to move forward <br />City of San Marcos Page 2 <br />