Finance Committee Agenda and Packet 2025 03 20

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City Council Finance Committee Meeting Minutes February 20, 2025 Page 2of5 Councilmember Hamlington asked if the collections that came in to overcome the gap are included in the baseline for projections. The Revenue & Sales Tax Manager responded that audit revenues are kept separate and are only based on the sales tax amounts. Councilmember Cooperman asked when we have a projection for sales tax collected over the course of a year, to what extent is it based on previous years versus assumptions of what percentage we think we will get. The Sales Tax Manager responded that, because we use two-year projections, the final number this year will be higher than what was previously included in the projections due to the consumer index. The Finance Department will look at amending the budget based on how 2024 ended and use the consumer index for inflation growth. Councilmember Cooperman asked if the amount of compliance we are getting with sales tax is typical. The Sales Tax Manager responded that there are definitely compliance issues in most municipalities and money to be found through audits. Councilmember Cooperman asked if we try to estimate how much we are losing from noncompliance. The Sales Tax Manager responded that once businesses hit a threshold without compliance we audit them. We started with over 900 out of compliance businesses last spring and we had 300 remaining at the end of the year. There is still work to do. Councilmember Cooperman asked if there is an ideal staffing level so that we're not having too many people doing audits and/or paying for more staff than needed to do the work. The Director of Finance responded that the current staffing size is appropriate, once fully staffed and trained, noting that he will continue to monitor it. Councilmember Hoefner commented that he would like to see projections conservatively realistic going forward. Public Comments: None. 2025 Sewer Fee Proposed Adjustments: The Deputy Director of Utilities presented the proposed adjustments to the 2025 Sewer Fees. The presentation was included in the meeting packet. The proposed adjustments will be presented to the City Council for approval in March. Committee Comments: Councilmember Cooperman asked if the number of equivalents is the same as the number of residents. The Deputy Director of Utilities responded that the numbers are close; an equivalent is based on a single family. The number of equivalents includes commercial meters. Councilmember Cooperman asked for clarification on how the calculations are applied. The Deputy Director of Utilities provided clarification on how the calculations are applied. 4/143