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City Council Meeting Minutes August 12, 2021 <br />cybersecurity, police traffic officers, environmental and fire inspections to meet <br />increasing development, finance, and the parks rangers. As our City continues <br />to grow, additional staffing is needed to maintain the same level of service. The <br />challenge of providing service to a larger population with the same amount of <br />people is starting to be felt by the departments. No one wants to pay more <br />taxes, but it is my responsibility to point out the constraints that limit revenue <br />also have an effect on staffing and services, especially in the General Fund. We <br />will also discuss the tax rate today. <br />Mr. Lumbreras again expressed his gratitude to staff for their outstanding <br />work on the budget and their diligence ensuring the City's financial security to <br />continue providing services. He also thanked City Council for their support of <br />staff recommendations and willingness to join in making tough decisions to <br />ensure we achieve a balanced budget. <br />Mr. Lumbreras turned the presentation over to Marie Kalka, Director of <br />Finance. Ms. Laurie Moyer, Director of Engineering and CIP will present a few <br />changes in the Capital Improvements Program. <br />Ms. Kalka provided the FY22 Budget Policy Update related to the General <br />Fund, Hotel Occupancy Fund, Enterprise Funds, CIP update, and Exemptions. <br />Ms. Kalka provided the FY22 General Fund Revenue Assumptions: <br />• Property tax: tax rate flat <br />• Sales tax: 2.5% over 2021 estimated without Best Buy Call Center or COVID <br />impact <br />• Franchise fees: based on anticipated utility revenue from COSM and trend <br />for others <br />• Permit fees: average of prior three years' revenue <br />• Fines: average of FY19 and FY20 <br />• Parks: primarily based on FY19 with review of historical trend <br />• Investments and other revenues: current year trend <br />Ms. Kalka provided Tax Rates definitions, these include the following: <br />• M&O Rate: Adopted rate for maintenance & operations <br />• I&S (Debt) Rate: Adopted rate for eligible debt <br />• Total Tax Rate: Adopted M&O plus I&S tax rates <br />• No New Revenue Rate (prev. Effective): tax rate that would produce the same <br />amount of taxes if applied to the same properties taxed in both years <br />• Voter Approval Rate (prev. Rollback): maximum rate allowed by law without <br />voter approval and is based on NNR M&O rate plus 3.5% plus the calculated <br />I&S rate plus unused increment <br />City of San Marcos Page 3 <br />