minfin 03-02-20 - Laserfiche WebLink

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Acting Finance Director Shuster provided an update, stating that the City has had $9.2 million in revenues and $7.2 million in expenditures in 2020. He noted that revenues do not come in evenly throughout the year, and expenditures are similar. He noted that April is heavy in revenue due to the payment of income taxes. At the end of March, the Finance Department will begin producing monthly financial reports and analyses of revenues. Once they are able to do this, they can make comparisons to previous years and better measure progress. He stated that the City is right on track with its spending on wages and benefits. Mr. Shuster also reported that health care claims from the hospitalization fund are up about $400,000 above last year at the same time. Claims do not necessarily come in evenly throughout the year, so the City will have to keep an eye on this over the next few months. Councilmember Litten questioned why the wages and benefits line item isn't under budget, considering the number of vacant positions. Mr. Shuster responded that holiday and sick leave conversions are paid out in the beginning of the year and that these are hard to predict and budget for. He expressed that he is satisfied with the numbers. Mayor George outlined the requests that she has received outside the budget: • Civil Service exams • Building Department training • Fire Department • She also noted that the budget was passed without funding the employee bonus line item Chairman Bullock noted that in years' past the administration has kept a tight belt on spending in the beginning of the year and provided more wiggle room at the end. He suggested trying to live within the budget before asking Council to appropriate more. It was clarified that if funds are to be moved from one department to another to fund these requests, that it would require an amendment to the appropriations ordinance. Mr. Shuster stated that the administration will look at this every month before coming to Council. He advised that everyone let the expenditures and revenues play out for another month or so and then re-evaluate. He assured everyone that there is time and no need to panic. The Committee discussed the merit bonus. Mr. Shuster clarified that the merit bonus is a one- time payment determined by a director. The merit bonuses replace the longevity and perfect attendance bonus that other bargaining units receive that were eliminated years ago. He noted that all of those whoa re eligible receive bonuses, but that new employees do not. Finance Committee adjourned at approximately 7:00 p.m. 2