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City Council Meeting Minutes March 16, 2021 <br />FY25. She spoke on gentrification and this is caused by overspending. She <br />expressed concern with the number of employees and the lack of program <br />review for the sidewalk project. <br />There being no further comments, Mayor Hughson closed the Public Hearing <br />at 7:37 p.m. <br />MAIN MOTION: a motion was made by Mayor Pro Tem Derrick, seconded by <br />Mayor Hughson, to approve Resolution 2021-56R. <br />Mayor Hughson will provide a proposed amendment to the section pertaining <br />to the Animal Shelter after discussion is held. <br />Council Member Gonzales asked Ms. Kalka what she means when she stated <br />the City is out of compliance with fund balance. He asked how this affects the <br />City when applying for a loan. Ms. Kalka said this could cause an impact, but <br />if this is temporary and a plan is in place it likely won't affect the City's <br />potential in getting a loan. <br />Mayor noted that we have some control over revenues and more control over <br />expenditures and can make the determination that we will not expend all of <br />our fund balance. She noted the General Fund Trend Analysis is only a trend <br />and is not a prediction of the future. <br />Council Member Baker expressed concern with the Budget Policy Statement <br />and the sections about employee pay and the market competitive component. <br />He has concerns about the City's pay scale and comparing it to Austin. <br />MOTION TO AMEND: a motion was made by Council Member Baker, <br />seconded by Council Member Gonzales, to amend Resolution 2021-56R by <br />striking through "and consideration given to a market competitive <br />component" under each section it is stated within the Budget Policy Statement. <br />Mr. Lumbreras stated we are not losing a lot of employees to Austin. Some <br />retired, others have gone to other cities in a higher job. Market analysis is <br />done to be competitive and not to be at the bottom of the pay scale and create <br />a lot of vacancies. We review salaries for all employees, not just those at the <br />top of the pay scale. This is a strategy and we are not at the highest level. Mr. <br />Lumbreras expressed concern with removing this from the Budget Policy <br />Statement. <br />City of San Marcos page 10 <br />