Item 16: Budget Policy Statement

[COSM_Admin]

Hold a Public Hearing to receive comments for or against Resolution 2023-61R, approving a Budget Policy Statement for preparation of the 2023-2024 Fiscal Year budget; and declaring an effective date; and consider approval of Resolution 2023-61R.

 

[JHughson]

• Regarding this statement: "Use fund balance in excess of 25% for non-recurring expenses and direct remaining funds to the future City Hall"
• Do you have a limit in mind for the total cost of "non-recurring expenses" because if not, there may not be funding for a future city hall.
• Please explain "impact fees will be revised based on master plan updates. "Need to be more specific about "Continue budgeting revenues based on historical trends." because we did something different last year. Council agreed to continue based on FY23.
• Amend to Continue budgeting revenues based on FY23. ?? Open to any wording for this proposed amendment.
• STORMWATER MANAGEMENT FUND Do we really need to spend money on a Rate Study? "Continue annual rate study to determine possible rate increases and minimize rate adjustments through use of the General Fund’s capacity to
  fund capital improvement projects for stormwater management."
• I'd like to see something more specific than "Increase Police and Fire staffing based on available capacity using a multiyear approach." Something that states "we are working toward recommended staffing levels."
• I will suggest a change to these adding "funding": "Family Justice Center FUNDING maintained at $45,000.
  o Youth Services Coordinator (Community Action) FUNDING maintained at $50,000.
  Amend to "Museum FUNDING INCREASED to $125,000."
  to state that FUNDING is maintained, not the facility or position.
• Is "Continue City hosted events in the amount of $60,000" meaning TOTAL of $60,000 for all the events together?
• Is this one "Use General Fund capacity for stormwater capital improvement projects and continue to constrain capital improvement program (CIP) to keep debt rate within limits established in the City’s debt model." all one concept or two? If two, need to split them.
  
  

 

[COSM_Admin]

Response provided by Director of Finance, Jon Locke:

• Regarding this statement: "Use fund balance in excess of 25% for non-recurring expenses and direct remaining funds to the future City Hall"

The use of fund balance in excess of 25% to fund non-recurring expenses can be presented to City Council during the budget process. This will give City Council the ability to redirect funding to City Hall if desired.

• Do you have a limit in mind for the total cost of "non-recurring expenses" because if not, there may not be funding for a future city hall.

There isn’t a particular limit in mind. The intent is to balance the use of debt and cash when funding capital projects and other non-recurring expenses. As mentioned in the previous bullet, the use of fund balance in excess of 25% can be shared with City Council and redirected if desired.

• Please explain "impact fees will be revised based on master plan updates.

Master plans will identify new projects that will be needed as the City grows. As new projects are identified, impact fees will be revised.

Need to be more specific about "Continue budgeting revenues based on historical trends." because we did something different last year. Council agreed to continue based on FY23.
That is the intent of the statement. In FY 2023, City Council approved using historical trends to estimate and budget revenues. This created a balance between overly conservative and being able to provide the resources needed by departments to maintain current service levels to residents. The language can be revised to read “Continue budgeting revenues using historical trends as approved for FY 2023.”

• Amend to Continue budgeting revenues based on FY23. ?? Open to any wording for this proposed amendment.

For clarity on the approved approach, it would be good to mention the approved method (i.e., historical trends).

• STORMWATER MANAGEMENT FUND Do we really need to spend money on a Rate Study? "Continue annual rate study to determine possible rate increases and minimize rate adjustments through use of the General Fund’s capacity to
  fund capital improvement projects for stormwater management."

• No, that is not the intent. The City has a stormwater rate model that will be used to determine the rates needed to sustain stormwater maintenance. The language can be revised to read “Continue using the rate model to determine possible rate increases…”

• I'd like to see something more specific than "Increase Police and Fire staffing based on available capacity using a multiyear approach." Something that states "we are working toward recommended staffing levels."

The language can be revised to read “Increase Police and Fire staffing to recommended staffing levels based on available capacity and using a multiyear approach.”

• I will suggest a change to these adding "funding": "Family Justice Center FUNDING maintained at $45,000.
  o Youth Services Coordinator (Community Action) FUNDING maintained at $50,000.
  Amend to "Museum FUNDING INCREASED to $125,000."
  to state that FUNDING is maintained, not the facility or position.

The language will be revised as recommended.

• Is "Continue City hosted events in the amount of $60,000" meaning TOTAL of $60,000 for all the events together?

Yes, ma’am.

• Is this one "Use General Fund capacity for stormwater capital improvement projects and continue to constrain capital improvement program (CIP) to keep debt rate within limits established in the City’s debt model." all one concept or two? If two, need to split them.

They are two difference concepts, so we will revise to separate them.