Meeting Summary
The city council held a study session to discuss the proposed FYE 2021 City operating and capital budgets, focusing on eleven potential amendments. Discussions included projected sales tax impacts from COVID-19 and TIF fund issues, funding for a public transit maintenance facility, health insurance premium increases, and various capital projects like sidewalks and a strategic housing study. No formal decisions were made, as this was an informational session.
Upcoming Community Events
Walk to School Days
Financial Matters
Reduction in projected sales tax revenue due to COVID-19 effect
Proposed reduction in projected sales tax revenue for FY21 due to a more aggressive assumption of COVID-19 impacts, leading to an increased general fund subsidy for public safety.
Federal Transit Administration (FTA) grant for public transit maintenance facility
CARES Act funding to be deposited into the Transportation and Parking Fund, then transferred to the Capital Fund to match existing allocations for a total of $8.2 million for the facility.
Increased employer contributions for health and dental benefit insurance
Proposed increase in premiums (approx. 8%) to maintain solvency of the risk management and health insurance funds, impacting all city funds with employees.
Correction of double-counting error in Capital Fund street maintenance budget
A decrease in the street maintenance budget due to a double-counting error, freeing up funds for other capital projects.
Funding for public transit transfer facility
Increase in capital fund budget to purchase and remodel a public transit transfer facility, or explore other options if negotiations fail.
Funding for a strategic housing study (homeless study)
Allocation to the capital budget for a study to inform a holistic approach to affordable housing and the needs of the homeless community, potentially related to a future general obligation bond proposal.
Funding for specific sidewalk projects (Crus Street, Berry Road North, Iowa Street)
Addition of three specific sidewalk projects to the prioritized list for the Public Works Department, addressing safety concerns, particularly for school children.
Funding for Equity and Diversity Manager position
Creation of a new Equity and Diversity Manager position by eliminating a vacant Development Coordinator position, resulting in a minimal net cost.
Public Comments
A resident raised concerns about the legality of using CARES Act funds for a new homeless coordinator position, questioning if it qualifies as a COVID-19 related expense for a non-historically existing role. Staff clarified that the funds are from the Community Development Block Grant (CDBG) CARES Act allocation, specifically designed for low-income and homeless populations, and thus permissible.
Coming Up
Watch For
- Formal adoption of the FYE 2021 City operating and capital budgets, including proposed amendments.
- Negotiations for the public transit transfer facility purchase.
- Further investigation and potential funding for a warming shelter for the coming winter.
- Contract awards for sidewalk projects in July.
- Council members to indicate who will make motions for each budget amendment.
Announcements
- Councilmember Hall and McCarter requested specific sidewalk projects (Crus Street, Berry Road North, Iowa Street) to be included in the budget.
- Councilmember Scanlon expressed appreciation for the public transit transfer facility, humorously calling it the 'Stephen Holman memorial transfer facility'.
- Councilmember Hall highlighted the Crus Street sidewalk project as a significant safety issue for McKinley Elementary students.
- Council members were asked to communicate who would make the motion for each proposed budget amendment at the next meeting.
Agenda Summary
Discussion regarding the proposed FYE 2021 City operating budget and capital budget
Presentation and discussion of the proposed budget, including historical general fund revenues, room tax impacts, sales tax scenarios (including COVID-19 and TIF fund effects), and eleven proposed budget amendments.