Meeting Summary
The city council held a study session to review the City Manager's proposed budget for Fiscal Year 2022-2023, which projects a significant general fund surplus and addresses sales tax volatility. Discussions included potential allocations for city projects and studies, as well as personnel changes. Additionally, an informational overview of bar and restaurant licensing and zoning requirements was presented.
Financial Matters
Total Proposed Budget Revenue (FY22-23)
The city's total projected revenue for the upcoming fiscal year.
Total Proposed Expenditures (FY22-23)
The city's total projected expenditures for the upcoming fiscal year.
General Fund Projected Revenue (FY22-23)
Projected revenue for the city's largest single fund.
General Fund Projected Expenditures (FY22-23)
Projected expenditures for the general fund.
Projected General Fund Surplus (FY22-23)
Projected surplus in the general fund after all reserve requirements are met.
Rainy Day Fund Reserve Requirements
Minimum 3% of general fund operations expenditures, additional 1% for emergency reserve, target 5% rainy day fund reserve, maximum 6%. Total target 8-10% of general fund expenditures.
Sales Tax Uncertainty
Discussion of unprecedented sales tax growth (20-25% month over month) in the last 12 months, with projections assuming a conservative 2% growth from this high, acknowledging potential flattening or decline.
Property Tax Allocation
The city receives approximately 10% of property tax, which can only be used to repay general obligation debt and judgments/claims, not for operations.
Employee Turnover Savings
An estimated annual savings projected in the budget due to employee turnover.
Public Transit and Public Safety Sales Tax (PSST) Funds
Due to sales tax growth, no general fund subsidy is projected for these dedicated sales tax funds in the coming fiscal year. Historically, public transit received approximately $700,000 in subsidy.
Westwood Golf Course Bonds
Approximately $280,000 per year freed up from paid-off bonds, now allocated to debt service for the Young Family Athletic Center.
CARES Act Funds
Reimbursements received for COVID-19 related expenses, largely appropriated for the Senior Wellness Center project.
American Rescue Plan Act (ARPA) Funds
Expecting a second tranche of funding, with $10 million already appropriated by council direction.
State ARPA Funds
Applications submitted for state ARPA funds, with hope for successful approval.
718 North Porter Property Remediation/Sale
The sale of this property could make $1.2 million from the sale price plus $1.8 million previously budgeted for remediation (total $3 million) available for reallocation, potentially for affordable housing.
Vaccine Incentive Program
Over half of the allocated funds have been spent, with the remainder potentially reprogrammed for other COVID-related expenditures.
Current Year Surplus Allocations
Council previously appropriated $700,000 for a vehicle wash facility, $130,000 to bring the rainy day fund to its targeted level, and $300,000 for accessibility improvements at Andrews Park.
Municipal Complex Building C Renovation
Discussion about appropriating approximately $3.5 million from surplus funds to complete the renovation of Building C, excluding the police department building.
Public Safety Study
Councilmember Foreman proposed allocating $150,000 for a non-biased public safety study to evaluate city needs for police, fire, and SRO positions, with consensus to add it to next year's budget request.
Legacy Trail Lighting Replacement
Councilmember Hall proposed a $300,000 project to replace the 25-year-old legacy trail lighting due to safety concerns, with support for using current year surplus funds.
Coming Up
Deadlines
- Final budget adoption: June 14th
Watch For
- First public budget hearing: Next Tuesday (next council meeting)
- Capital fund budgets presentation: May 3rd
- Enterprise fund budgets presentation: May 17th
- Second public budget hearing: May 24th
- Ballot language for charter amendments: First meeting in May (or pre-council conference/study session before that)
- Finance Committee meeting (Thursday): Discussion of budget amendments
- Public Safety Study: To be added to next year's budget request
- Updated 2040 Land Use Plan, Transportation Plan, Stormwater Plan, Water Master Plan, Sewer Master Plan: Identified as needs for future funding
- Pattern Zoning: Pilot project, with a budget estimate of $300,000 for comprehensive services
Agenda Summary
City Manager's Proposed Budget for FY22-23
Presentation and discussion of the proposed budget, including financial policies, fund balances, sales tax projections, and potential future expenditures. Key topics included sales tax uncertainty, the projected general fund surplus, and proposed personnel changes.
Overview of Licensure and Zoning Requirements for Bars and Restaurants
An informational presentation on state and local regulations concerning bars and restaurants, including the 35% food sales threshold for restaurant designation, differences between state and city definitions, catering licenses, and special use zoning for bars.