Agenda - Council - 09/24/2019 - Laserfiche WebLink

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Councilmember Riley stated that currently the proposed budget is an increase of 6.77 percent, and prior year funds are being used to buy it down to that amount. He stated that while he approves of the buying down, he would like to see the rate closer to six percent. He stated that it was said earlier that $91,000 would need to be cut to reach six percent. He noted that with the surplus funds exceeding $400,000 and $600,000 in the past two years, he would think it realistic that an additional $91,000 could be cut from the budget without impacting bond ratings. Mayor LeTourneau asked for additional information on the surplus piece, as it was determined that the surplus is composed of different forms of revenue. He asked if the desire would be to estimate projected building permit revenue further. Councilmember Riley stated that he has not done the analysis to determine where the large surplus amounts are coming from. He stated that if that is coming from building permit revenue, then perhaps that item be adjusted. Mayor LeTourneau stated that the budget is balanced based on revenue against expenses. He stated that the larger savings would be on the expense side. Councilmember Riley stated that he would like to see the levy reduced. City Administrator Ulrich stated that in order to reduce the levy they would make more aggressive revenue projections. Councilmember Musgrove stated that the City would not want to over project revenues. She stated that it can appear good on paper but that might not be a real project of revenue and expenses. Mayor LeTourneau stated that currently the City uses a conservative approach to projecting revenue and some commented that a more aggressive approach would be better. He stated that it appears now that the statement is being made that over projecting revenues would not look good on paper. Councilmember Musgrove stated that she would not want to just say there will more revenue just to make the expenses look less. She stated that she would like to see both revenues and expenses accurately projected. She referenced the Happy Days budget of $12,000, noting that the projected revenue is $15,000. She asked how the additional revenue from the event is then allocated. Finance Director Lund explained that the City contributes $12,000 to the Happy Days account and the organization receives contributions from businesses and sponsors. She stated that Happy Days is a standalone fund and the contribution from the City and any other contributions that the organization receives, stay with that organization. City Council Special Work Session / September 3, 2019 Page 9 of 17