05.18.21 Work Session - Laserfiche WebLink

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City Council Meeting Minutes May 18, 2021 as part of the American Rescue Plan and the guidelines for how the funds can be spent were just issued, so staff is working to understand allowable uses. A future agenda item will be scheduled to discuss this with Council, as specifics are not yet identified. Marie Kalka, Finance Director, provided the presentation on the Fiscal Year 2020-2021 Financial Update. She stated the FY22 Fund Balance will maintain 20-25% for General Fund, 25% for Water/Wastewater and Stormwater and 60 days for Electric. Ms. Kalka stated the economy is beginning to show signs of recovery and she provided current local, state and national unemployment rates. She also provided the Consumer Price Index (CPI) which measures the price trend of consumer goods, provides an indicator of pricing pressures in the economy, provides a gauge of inflation, and can lead to changes in monetary policy. Ms. Kalka provided a financial update related to Property Tax Revenue, Sales Tax Collections, and General Fund Revenues. The following expectations for FY 21 were presented: • Showing signs of economic recovery. • Net sales tax revenues are expected to exceed conservatively budgeted figures. • Salary savings has resulted in lower overall personnel costs. • Reduction in professional development and travel costs related to pandemic response. • Overall, FY 21 revenues are expected to equal or exceed expenses. The following FY 22 Preliminary Budget Assumptions were presented: Revenues • Property tax increase based on value of new properties • Sales tax increase on `base' estimated on expected population increase; overall sales tax decrease due to Comptrollers ruling changing recognition of internet sales to point of delivery. • Utility rate models are in progress • Analyze development services cost recovery fees • Consider raising other fees by CPI (2.7% - March 2021) Expenses • Increased facility costs — new public services facility • Increased fuel costs • Requests for additional personnel City of San Marcos Page 3