minfin 11-15-21 - Laserfiche WebLink

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Mr. Rancatore indicated that his department would like to create a structurally balanced budget that is sustainable over a long period of time. Director Rancatore stated that the city also plans on spending on baseball field repair and landscaping equipment, with the largest expenditures occurring in 2022, over the next several years. The city is in the process of working with the school district to get ball field repair processes up and running. Chief of Staff Storey indicated that the administration is continuing to work on the operational side of its joint agreement with the district and that these items are something that will be budgeted for each year. Director Rancatore spoke to the price of Lakewood's elections, with this year's costing about $150,000. He noted that Lakewood's elections tend to cost a lot more than comparable or neighboring cities. He noted that a lot of local governments try to sync up their elections with presidential or gubernatorial ones, and when they don't, the cost of elections tends to increase in off years. He also suggested moving special or primary elections from September to May, which could overlap with county elections and help the city share the cost burden. Director Rancatore stated that the new municipal court judge will have flexibility in her budget to fix up the office and or with personnel decisions. Director Rancatore shared that the administration is budgeting for police vehicles and is trying to purchase 4 a year, with the newest purchases being hybrid models. While the hybrids cost more, that cost can be made up in fuel savings. He indicated that totally electric vehicles are cost prohibitive, but hybrids are more affordable than they have been in the past. A lot of the police vehicles idle for extended periods of time, and that the hybrids will be able to get 15 miles per gallon compared to 9 previously. The city is also purchasing 3 new refuse vehicles next year, which will cost about a million dollars. These vehicles have been aging and take the longest to repair. The administration is looking to unload the operational ones at auction while they can still get some salvage value. Director Rancatore indicated that there was a significant period where Lakewood was not purchasing any refuse vehicles. Director Rancatore reviewed some of the fund balance reserves, citing concern about funding hospitalization charges. The Finance Department would like to be able to continue to grow that fund. The workers' compensation fund was updated slightly. Money was also placed in the economic development account. Mr. Rancatore expressed some concern about separation payments the city will owe, as it is expecting a significant number of employees to come off the payroll soon. Lastly, he noted there is $2.2 million in the budget stabilization fund and that the city's financial policy is to have at least 60 days of reserves, which is currently being met and looking to be expanded. Director Rancatore and Finance staff briefly explained the city's sources of revenue using a pie chart diagram provided in their presentation.