Laserfiche WebLink
Revenues <br /> The City's largest sources of income are its income tax and property tax. Director Pae discussed <br /> these tax projections for 2020 and beyond. She also gave a historical perspective. <br /> Director Pae stated that the City expects to receive $77,000 from the Local Government Fund. <br /> This is an increase from last year but still much lower than the level of funding prior to 2011 <br /> when the fund was cut in half. <br /> Director Pae noted that interest earnings are lower due to the decreasing interest rate. <br /> Councilman Anderson asked for an explanation of the $7 million in revenue not included in the <br /> executive summary's revenue highlights. Director Pae pointed to the following sources: <br /> • Building & Housing permit fees <br /> • Intergovernmental grants, tax revenues (liquor, cigarettes) <br /> • Municipal Courts <br /> • Transfers <br /> Reserves <br /> Director Pae discussed the City's budget reserves and its trends since 2007. She highlighted the <br /> importance of budgeting for a 27h pay every 11 years, for separation payments, economic <br /> development and maintaining 60 days of operating reserves. <br /> Councilmember O'Malley suggested that the City and the bargaining units discuss a bi-monthly <br /> pay schedule. <br /> She discusses the strategy to continue to build and hold these reserves. The Committee discussed <br /> the economic development fund and some of its recent uses. <br /> Councilman Anderson asked about the relationship between the unencumbered fund balance and <br /> the days in reserve. He pointed out some swings in this relationship. Director Pae explained the <br /> formula, stating that it will vary each year based on the prior year's balance. <br /> Mayor Summers pointed to the layoffs in 2008 and 2011 as examples of the City's decrease in <br /> daily operating costs. He stated that the City is very focused on maintaining its 410 full time <br /> employees but that there is pressure to get the work done to high standards for them. <br /> Debt <br /> Director Pae directed the Committee to the $19 million Capital budget. The largest items are as <br /> follows: <br /> • Waste water treatment plant <br /> • Vehicles <br /> • Streets <br /> • Parks <br /> • Building and facility improvements <br /> 3 <br />