06.29.21 Budget Workshop - Laserfiche WebLink

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City Council Meeting Minutes June 29, 2021 The Airport has a budgeted fund balance of $58,906. The projection is an estimated maximum transfer from the General Fund of $59K. The Hotel Tax has a budgeted fund balance of $276,841. The projection is an estimated maximum use of fund balance of $220K. Ms. Kalka provided the Hotel Occupancy Tax over the last 5 years to show the impact that Covid 19 had on them. There is a projected increase this year over last year. Ms. Kalka discussed and provided information on the General Fund drivers, including tax rates, adopted tax rate, average home value, assessed value, no new revenue tax rate, current ad valorem collected, and sales tax. Ms. Kalka provided the FY22 Budget Policy Update. The Stormwater Rate includes a planned increase of 6.5%; the updated rate models shows 8% is needed. Non -civil service employees include a pay increase of 4%, based on general fund numbers, this may need to be reduced. Health Insurance will be evaluated, but costs are increasing; rates will be finalized in July. Transit operations funding to be presented at later date, funding needed is $800K. The FY22 Budget Update includes the following: • Continue to work on finalizing numbers and balancing budget • Finalize property tax numbers — Potential increase in debt rate — Potential lower tax rate depending on tax roll • Continue to monitor sales tax • Net revenues are currently anticipated approximately flat • Analyzing elimination of TIRZ #2 • Reviewing Chapter 380 agreements • Finalize increase in benefit costs As the budget is prepared assumptions are made and Ms. Kalka presented the following Revenue Assumptions: — Property tax: flat tax rate with increase from new property — Sales tax: 2% increase over the last 12 months pre -pandemic — Franchise fees: based on anticipated utility revenue from COSM and trend for others — Permit fees: average of prior three years' revenue — Fines: average of FY19 and FY20 City of San Marcos Page 3