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City Council Meeting Minutes June 29, 2021 <br />in the form of additional employees, capital, and facility needs. Although a <br />portion of this is due to holding off on requests last year due to being in the <br />middle of responding to the pandemic, a significant percentage are requests for <br />resources to continue providing service to our rapidly growing community. <br />Mr. Lumbreras stated the City now has a better idea of the impact of the <br />potential increase in the senior tax exemption or implementation of a <br />homestead tax exemption which Council discussed recently. As a reminder, an <br />Ordinance is needed to implement either one of these measures and they would <br />not take effect until the Fiscal Year 2022-2023 budget year. Either one of these <br />would create an additional constraint on the General Fund revenue that will <br />also need to be addressed. <br />Direction is needed from Council on the tax rate, the proposed stormwater rate <br />increase, whether to move forward with the exemptions, and additional <br />considerations. <br />Mr. Lumbreras expressed his appreciation to the Finance Team and the <br />Department Directors for their hard work on the budget. <br />Mayor Hughson expressed her appreciation to all Staff that have assisted with <br />the budget. <br />Marie Kalka, Finance Director provided the presentation and began with an <br />update to the Fiscal Year 2021 Budget. <br />The General Fund has a budgeted use of Fund Balance in the amount of <br />$2,794,633. There is anticipation of no use of fund balance and we are <br />beginning 2022 at 29% of 2022 operating costs. <br />The Electric Fund has a budgeted use of Fund Balance in the amount of <br />$472,406. A budget amendment for winter storm in the amount of $600K will <br />be needed. The Water/Wastewater Fund has a budgeted use of Fund Balance <br />in the amount of $217,507 and there is anticipation of no use of fund balance. <br />The Stormwater Fund has a budgeted use of Fund Balance in the amount of <br />$80,522. The estimated maximum use of $450K of fund balance is projected <br />which brings the fund balance down to 20.8%. <br />The Resource Recovery Fund has a budgeted fund balance of $61,338 and the <br />projection is no use of fund balance. <br />City of San Marcos Page 2 <br />