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City Council Meeting Minutes February 26, 2021 <br />Notation: We are in the second year of SB (Senate Bill) 2 Property Tax Cap @ <br />3.5% <br />Ms. Kalka reviewed the rates for the last four years. <br />* SB2 new terminology: Voter -approval tax rate (rollback rate) and no new <br />revenue tax rate (effective rate) <br />* Assumption in base budget: Tax rate would be equal to or less than the voter <br />approval tax rate of 59.30 <br />* Exceeding the voter -approval tax rate automatically triggers an election <br />Sales Tax - 43% of the total budget <br />Notation Comptroller Sales Tax ruling: change in definition of place of <br />business determining collection point) This included the following: <br />• Base — 68% (.75% average decline over last 12 months due to COVID) <br />• Outlet Malls — 26% (13% average decline over last 12 months COVID <br />impact) <br />• Shift in Sourcing Rule — 6% (Revenue loss from Comptroller ruling on <br />internet sales) <br />All Other - 29% of the total budget (Other fees forecasted using historical <br />growth trends) <br />Ms. Kalka provided a General Fund Financial Forecast for the years up <br />through FY25. <br />Ms. Kalka provided the General Fund Estimated Contractual Obligation <br />Increases. These include: <br />Operating: <br />Facility Services/Utilities - $47,000 or 3% increase <br />Facility Maintenance - $130,000 or 15% increase <br />Vehicle Repairs - $150,000 or 45% increase <br />SW License & Maintenance $300,000 or 20% increase <br />Contracted Veterinarian $15,000 or 15% increase <br />Street Maintenance $88,000 or 4% increase <br />EMS Services $100,000 of 10% increase <br />Transit Local Match $750,000 or 100% increase <br />Personnel: <br />Civil Service $800,000 or 4% increase <br />Non -civil Service $1,100,000 or 4% increase <br />Preliminary forecasted base budget could require $3.48M increase of General <br />Fund appropriation due to these contractual obligations. <br />City of San Marcos Page 3 <br />