HomeMy WebLinkAbout03/24/2009 04B Minutes 02-26-2009 Council Budget Committee .0 get Committee
CEO Conference Ao (2nd or)
• City Mai
Thursday, February 26, 2009
3:30 - 5:00 p.m.
Meeting Minutes
Attendance: Council Members: Micah Cawley, Kathy Coffey, Bill Lover'
(Alternate)
Staff: Dick Zais, Rita DeBord, Randy Beehler, Cindy Epperson,
Robin Dukart
Discussion:
➢ Dick Zais reported the decrease in sales tax revenues the City has recently
experienced was not related to the Streamlined Sales Tax (SST) but rather
the state of the economy. Cindy Epperson explained that in December the
® City had actually gained revenues of approximately $10,000 due to the
SST over the last reported quarter.
➢ An overview of the Preliminary 2008 Year -end results were presented.
Actuals are coming in dose to the budget and new growth in tax
revenues of 2.4 %. The significance of viewing historical estimates and
trends for the projection of revenues and dependence on reserves was
discussed. In the General Government (tax supported) funds, revenues
exceeded expenditures in 2008, thereby adding over $300,000 to; the
reserve balance.
• Dick Zais shared that key revenue trends are not matching the 2009
revenue projections. The 2009 revenue forecast was discussed as follows:
• Sales tax - revenue began trending downward in late 2008;
• Property tax - may begin experiencing some slowing in collections;
• Charges for City Services - are stable at this time;
® Revenues from license and permits - has decreased 10% ,
® State shared revenues:
o Gas tax decrease of 15% will directly affect Streets and the
Arterial Street funds.
• Other revenues; with current interest rate trends, revenues from
® interest in investments is expected to be less than budgeted.
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Given the state of the economy and the slowing revenue trends outlined
above, additional curtailment will be needed with respect to General .
Government services and expenditures. The City Manager has reissued a
Memo of Cost Containment for.2009 expenditures and has established
Monthly Budget Meetings with the department heads to closely monitor
and refine spending wherever possible. Additionally, the Budget Staff is
preparing to issue Contingency Budget reduction instructions to all
departments, which will contain target reduction levels for all general
Government 2009 Budgets.
> Kathy Coffey suggested the basic assumption on which the budget is
generated should be modified to eliminate any reliance (actual or
perceived) on reserves to balance the budget. The City has utilized a
conservative "effective balanced budget" approach to preparing its
budget for the past 20 (plus) years. The CBC will discuss this suggestion
further at their next meeting and decide whether or not the Council.
Budget Committee will forward this recommendation to the full City
Council
Next Meeting: Tuesday, March 10, 2009 at.3:30 — 4:30 pm
CED Conference Room (City Hall, 2nd floor)
Committee Chair (Mic. Cawley)
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