List of 2021 Budget and Audit Committee Meetings
June 08, 2021
| Video | BAC_SpecialSession_Agenda_06_08_2021 | Transcript |
AI summary
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Item 2: Public Comment on Non - Agenda Items
The Budget/Audit Committee began its session with a call to order and roll call, followed by an announcement of the agenda items. Councilmember Holly Tillman opened the meeting by inviting public comment on non-agenda items, emphasizing that the committee would not take action on any matters not listed on the posted agenda. She instructed members of the public who wished to speak to dial *9. However, no members of the public spoke during this portion of the meeting. The transcript indicates that the session proceeded without any public input on non-agenda items, and no further discussion or action was taken on this topic.
Keywords: public comment, non-agenda items, public input, committee session, agenda items, councilmember tillman, meeting procedures
Item 3: Action Items
The Budget/Audit Committee convened to discuss the fiscal year 2021–2022 draft budget, with a focus on the operating budget in the general fund. City Manager Rena Calderon provided an overview, noting that the proposed budget is balanced but faces long-term challenges, including a structural imbalance between rising expenses and stagnant revenues. She emphasized the need for a reserve policy and a long-term financial plan, which would be addressed later in the year, including discussions on the American Rescue Plan funds and the city’s reserve strategy.
Finance Director Paul Rodriguez presented a brief overview of the budget, highlighting that the general fund’s operating revenues and expenditures have been increasing steadily. He noted that the city’s largest revenue source is property taxes in lieu of VLF, followed by sales and use taxes. He also explained that franchise fees have plateaued due to factors such as the pandemic and the shift to streaming services. Sales tax revenue has increased slightly due to online purchases and the Wayfair decision, which increased the city’s share of online sales.
Rodriguez detailed the proposed expenditures for 2021–2022, noting a 7% increase in operating expenditures, driven by the addition of a full-time city engineer and ongoing police department negotiations. He also explained that the FY21 capital improvement program was lower due to the deferral of the neighborhood paving project to FY22.
Committee members raised questions and comments. Councilmember Jeff Wan inquired about the FY21 capital improvement program decline, and Rodriguez explained that the neighborhood paving project was pushed to FY22, significantly affecting the budget. Wan also noted that the city’s budget philosophy had shifted in recent years, with more realistic project allocations.
Councilmember Holly Tillman asked about the historical context of the city’s reserves and whether they were sufficient. Rodriguez explained that the city had maintained reserves of around $5 million over the past decade, though adjusted for inflation, the value had not kept pace. He emphasized that reserves were intended for one-time emergencies, not ongoing expenses, and that the city had a rainy day fund established from prior reserves.
Councilmember Wan and others discussed the need for a reserve policy, with Rodriguez noting that a proposal would be brought forward in the summer and fall. He also explained that the city’s current reserve level was adequate for short-term needs but that a long-term policy was necessary to address the growing gap between revenues and expenses.
Keywords: fiscal year 2021–2022 budget, operating budget general fund, structural fiscal imbalance, reserve policy proposal, american rescue plan funds, property taxes in lieu of vlf, sales tax revenue increase, neighborhood paving project
Item 5: Adjournment
Adjournment at [0:35:59].
See the full transcript here.
February 18, 2021
| Agenda | Agenda Packet |
January 26, 2021
| Agenda | Agenda Packet |