minfin 11-18-19 - Laserfiche WebLink

Home Browse Search

MINUTES OF THE FINANCE COMMITTEE November 18, 2019 Auditorium Present: Councilmembers O'Malley, George, Bullock Also Present: Finance Director Pae, Mayor Summers, Assistant Finance Director Schuster, Budget Manager Jessica Eddy, Councilmembers Rader, Anderson & Litten, Fire Chief Dunphy, Human Services Director Gelsomino, Human Resources Director Youseb, Councilmember— elect Tess Neff, 3 members of the public Call to Order: 6:07 p.m. Councilmember O'Malley called the meeting to order and reviewed the evening's agenda. He invited Mayor Summers to make opening remarks regarding the budget. Budget Highlights & Overview Mayor Summers provided an overview of the budget, stating that it is structurally balanced. He noted that the City is currently in collective bargaining negotiations, which presents some unknowns. The City offered a 3% wage increase to the unions and that amount is included into the budget. He acknowledged that that could change. Mayor Summers remarked on the revenue assumptions in the budget. He stated that these assumptions are reasonable and conservative, and that the City prefers to budget conservatively. He expressed confidence in the estimated expenses provided by the City directors. He noted that the 3% salary increase is a bit of a stretch for the City. He noted that the budget is basically "break even," and stated that if Council wants to add things, it should be mindful that something will need to be taken away. He summarized the key take-aways of this budget as follows: • Structurally balanced • Break-even • Maintains good reserves but not focused on building reserves • Nothing fundamentally different from previous years In response to a question from the Chair, Mayor Summers mentioned the City's thoughts on wage increases in 2021 & 2022, noting that they would likely be lower than 3%. He remarked on the importance of investing in human capital and noted that the City is projecting the best revenue forecast in 2022 due to property tax appreciation. Chairman O'Malley reviewed the full schedule for the budget hearings. Director Pae reviewed the executive summary of the comprehensive budget document. The budget represents $125 million across all funds. She explained the difference between the General Fund and the special revenue funds and clarified that the budget is $125 across all funds combined. She reviewed the City's strategy, mission, and priorities, including both administrative and Council priorities. 1