Pre-Budget Prioritization Process -
- Discussion and direction for building the FY 2022-23 Budget, including but not limited to setting five-year goals for the City and setting priorities for the FY 2022-23 Budget. Funding all programs needed to accomplish the City Mission, taking into consideration factors such as population growth, tax base development, large time sensitive infrastructure projects, right of way issues, staffing levels and structure, American Rescue Plan funding priorities and process, and prioritizing expanded programs that may be required in the future. (M. Browne/Executive Team)
Mayor Gutierrez turned the meeting over to City Manager Dr. Mark Browne who stated that the focus is to get alignment on short-term and long-term (5 year goals) with Staff and Council.
Assistant City Manager Brian James provided the "Complete City Model" 
that was adopted a couple of years ago and explained the model asking for Council for affirmation. Members of Council concurred to continue with the Complete City Model.
Finance Director James Walters provided the following information and explained where we left off last year and what we have this year to work with:
Expanded Programs Built into this Scenario for FY 2022-23
New Personnel - $200,000
Small Equipment - $14,500
Large Equipment/Projects - $55,000
Allocating Excess Funds from Tax Rate Swap to SPAM Program - $400,000
Begin Station #4 Staffing - $300,000
ECI – 1%, then slow increments in the out years
Next was a break-out dot exercise with Council to place their numbered 1 through 4 dots on the flip chart of items listed below for development of Key City 5 Year Goals, 1 being the highest and 4 least priority
- Increase Staffing Levels
- Renovate/Reconstruct Existing Facilities
- New Facilities (ex. Public Safety Building, Access Points, Fire Station, Parks)
- Compensation
- Infrastructure
- Technology
- CIP Planning and Document Development
- Expansion of existing services
- Funding for Retail Development and Recruiting
- Additional staff funding - staff training
Dot results for Council were:
- Compensation
- Infrastructure
- Renovate/Reconstruct Existing Facilities
- Staffing Levels
- CIP Planning and Document Development
Staff and Council compared their lists (in no particular order)
| STAFF |
| Increase Staffing |
| Compensation |
| New/Reconstruction Facilities |
| CIP Planning/Document Development |
| Infrastructure |
| COUNCIL |
| Increase Staffing |
| Compensation |
| Reconstruction of Facilities |
| CIP Planning/Document Development |
| Infrastructure |
Discussion occurred that Staff and Council would need to define goals further and bring back the information.
Mayor Gutierrez called for a break at 11:39 a.m. Mayor Gutierrez resumed the meeting at 12:19 p.m.
Next Discussion FY 2022-2023 Budget Development Discussion:
- Discussion of challenges in level of funding - particularly for expanded programs
- New Personnel - $200,000
- Small Equipment - $14,500
- Large Equipment - $55,000
- Limitation of current system on funding recurring items
- Can we be more aggressive on revenue projections?
- What areas could we do this? What would that look like? How much money would that get us?
- Sales tax - increasing from 5% to 7% - would provide an additional $475,000 recurring revenue for FY22/23
- What are the drawbacks to doing this?
- Could we be more aggressive on expense projections?
What areas could we do this? What would that look like? How much money would that get us?
Across the line-item adjustments to match long-term trends - reduce department budgets by 2%? Would provide additional $750,000 recurring funding (could find 10 positions)
What are the drawbacks to doing this?
Council discussed and agreed to be more aggressive with sales tax projections and reducing unspent amounts across the board.
FY 2022-2023 Budget Development Discussion
- Mid-Year Ready to go projects
- The idea is to have a project(s) ready to start on short notice, that can generally be completed during the fiscal year if revenue and expense projections show additional funds are likely to be available.
- This is what we did with Elbel.
- Develop stretch goals for each area of complete city model at upcoming Policy Team meeting.
Council discussed and agreed to this. Action from staff is to develop stretch goals in each area - they will review at a future Policy Team meeting.
5-Year Forecast FY 2022-23
Expanded Programs Built into this Scenario for FY 2022-23
New Personnel - $200,000
Small Equipment - $14,500
Large Equipment/Projects - $55,000
Allocating Excess Funds from Tax Rate Swap to SPAM Program - $400,000
ECI 1%, then slow increments in the out years
5-Year Forecast FY 2022-23 - more aggressive projections and reducing unspent amounts
Expanded Programs Built into this Scenario for FY 2022-23
New Personnel - $950,000
Small Equipment - $14,500
Large Equipment/Projects - $55,000
Allocating Excess Funds from Tax Rate Swap to SPAM Program - $400,000
Begin Station #4 Staffing - $300,000
ECI - 3% upfront, min of 1% each other year
Mayor Gutierrez recessed the meeting at 12:19 p.m. for a lunch break. Mayor Gutierrez reconvened the meeting at 12:35 p.m.
Icebreaker #2 - Session openers Thumball Activity
Members of Council and Staff present participated in the activity - answering the question once the ball was pitched to them where their thumb landed.
Establishing FY 2022-2023 Budget Priorities - Group Exercise
Council Group - Mayor Gutierrez, Mayor Pro-Tem Scagliola, Councilmembers Davis, Whittaker, Dahle and Brown
Results:
- Staffing - Public Works, Engineering, Planning and IT
- Compensation
- Facilities - Space - Improvement
- EDC - Retail Recruitment
Budget Priority Breakout Council Day - Mixed Groups 1 through 3 Discussion
Settling on Budget Priorities Discussion
Are there any major disconnects in the budget priority lists?
If so, is it a function of information asymmetry or a different vision?
Over the next few months, the list will need to be merged.
FY 2022-2023 Budget Development Discussion continued:
Discussion on ECI
Discussion on Class and Comp
Where do we want to be? (percentile wise)
How long do we want to take to get there?
Increase in Sales Tax Revenue
Decrease in Fee Revenues
Update on Personnel Budget to Actual
Department Year-end projections
Any "extra money? What is our bottom line at this moment?
Discussion regarding updated Plan
Discussion 2030's Plan
Discussion regarding Complete City Model
How should the upcoming infrastructure bond allotment plan be distributed?
8 million in 2025
15 million in 2029
"Infrastructure" consists of items such as:
Parks (skate park, trail development, etc.)
Streets (reconstructions, new streets, etc.)
Facilities (new/remodeled offices, public safety, library branches, courtroom, etc.)
Drainage (new drainage channels)
Sales Taxes - Discussion
FY 2022-2023 Budget Development Discussion:
Projecting Increase in Sales Tax Revenue
Majority to go toward GBRA land purchase - $285,000
Remainder to cover lower fees collections, if they don't pick up (permits, rentals, investments, etc.)
Add anything in from Citizen Survey?
Revenue Decreases Discussion
Personnel Budget to Actual Discussion
FY 2021 Budget Performance Discussion
Year End Projections Discussions
Budgeted Fund Balance Drawdown - $1,633,000
Year End Projected Drawdown - $1,575,000
$58,000 additional for FY 2021-2022
FY 2022-2023 Budget Development discussions:
CIP Projects
Water/Wastewater Funding
Streets/SPAM Funding
Parks Funding
Drainage Funding
Facilities Funding
Personnel Update