06.30.20 Budget Workshop - Laserfiche WebLink

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City Council Meeting Minutes June 30, 2020 Scenario B: Change in Tax Rate @ 7% growth FY21 Impact: Budget Impact: decrease of $333K Citizen Impact: $5.50 less per month (Citizen impact based on $100K home value) on a $200K home the amount will be $11.00 per month. This does not include new construction. If we lower the tax rate we would need to reduce the general fund and budget by $300K. Scenario C: Change in Tax Rate @ 5% growth. Assume tax base growth of 8%. FY21 Impact: Budget Impact to general fund is a reduction of $1M Citizen Impact is a reduction of $16.87 per month for a $100K value home FY22-23 requires a reduction of expenditures over $2M to keep a 20% fund balance. What does $1.5 million in City Services provide? Per year, it is 67 percent to operate one fire station, or 79% of the library, or 36% of the parks department. During the May workshop Ms. Neel stated there was a proposed street maintenance fee for residents and commercial rates charged through utility bills. The consensus was not to charge for residential. Ms. Neel stated there is a current Commercial Waste Hauler Permit ordinance that was adopted in 2003. Ms. Neel mentioned the Streets FY20 Budget is $3.4M, personnel is $1.4M, operating is $2M. Current commercial waste permit for the application fee is $100, the street usage fee is 5% gross sales receipts and in FY19 the revenue was $425K. Staff recommendation is to increase fee to 10% gross sales and amending by including additional ordinance language to allow for recovery of costs for specific damage to City streets in lieu of tax dollars. Ms. Neel stated that additional revenue of $425K, would bring the total revenue up to $850K and recover 42% of operating costs. Ms. Neel stated there needs to be a reduction to balance the budget to achieve the 20% fund balance. In order to reduce the property tax rate or not achieve the revenue with the assumptions, there will need to be considerations of service level reductions. The considerations are in order by holding vacancies and was first as a proactive approach in reducing expenditures as a response to Covid. Further considerations include reduction of public facility service hours, early retirement, staff furloughs, salary reductions and layoffs. The expenditures are 57% of the general fund and it is one of the larger items that City of San Marcos Page 4