02.26.21 Budget Workshop - Laserfiche WebLink

Home Browse Search

City Council Meeting Minutes February 26, 2021 multi-year period to determine required adjustments. The Enterprise Fund includes Operations & Maintenance, Capital Needs & Existing debt obligations, Current and future infrastructure needs and rate increases in small increments over time to meet future needs. Other Forecasting Assumptions include Property Tax collections, Sales Tax collections, Hotel Occupancy Rates, Stormwater Rate Study — proposed changes to be implemented and Transit Cost per hour of $79. Discussion was held on the tax rate and if there was an interest in not exceeding the voter -approval tax rate. Mr. Cosentino stated cities are allowed to have a higher voter approval rate due to the disaster declaration that is in place and Senate Bill 2. Concerns included seniors who want to stay in their home but increasing taxes on a fix income can be difficult to pay. Mayor Hughson noted that we need information about SB 2 and how it may affect future Economic Incentive 380 agreements. Council Member Baker suggested that the City assist our City taxpayers with protests of property values to the Hays Central Appraisal District. Following discussion Council provided consensus to not increase the current tax rate and decrease if possible. Council would also like to review exemptions that we currently do not have. Staff stated this will come forward in the future but not for the current Fiscal Year. Ms. Kalka explained that the City's Fund Balance policy requires 25% of operating expenses equivalent of 90 days of purchasing power. Stephanie Reyes, Assistant City Manager said instead of a number, it could be a range to ensure financial stability and a higher bond rating. Council held discussion and provided consensus to allow flexibility, as the budget is prepared, to go between 20-25% fund balance and Council is okay for the fund balance to go to 20% this year, but not to do this multiple years. Discussion was held regarding Social Services & Other funding and Council provided consensus to remove the $150,000 Hays Caldwell Women's Center funding as this was to assist with transitional housing and we have paid in full the amount we promised and increase HSAB funding by that $150,000 making it $650,000 for FY22 only to help assist with COVID recovery. Staff will provide additional information to Council regarding Sights n Sounds. Discussion was held regarding merit increases for staff. Linda Spacek, Director of Human Resources, stated the City looks at peer competitors to ensure we are competitive in the market. Currently there is a proposed of a 4% increase. Mayor Hughson stated we call this something different than merit increase City of San Marcos Page 5