City Council Minutes 2017 09 26 - Laserfiche WebLink

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City Council Meeting Minutes September 26, 2017 Page 2 of 11 DISCUSSION/DIRECTION/ACTION — CITY MANAGER'S PROPOSED 2018 BUDGET AND LONG-TERM FINANCIAL PLAN FOR 2018 — 2021 — SET PUBLIC HEARING 10/17/17 Mayor Muckle introduced the item noting the Council will use this meeting to give staff direction on the proposed budget and Tong -term financial plan. He asked Council to provide staff with any information they want to see in future budget meetings The public hearing will be on October 17, 2017 Interim City Manager Balser stated this is the second year of the biennial budget process with some adjustments for 2018 that staff is recommending This includes the Tong -term plan for revenue and expenditures through 2021 Staff is looking for direction on what Council may want to see at the public heanng Director Watson stated this presentation will cover the following: • Revenue projections for 2017 through 2021 • Operating expenditure estimates and targets for 2017 through 2021 • An update to the Five-year Capital Improvements Plan • A discussion of transfers between funds • Fund forecasts generated by the Long -Term Financial Model • Alternative Scenarios from the Finance Committee Revenue Projections Director Watson stated revenue projections have been increased to 10% for 2017 and 2.5% on top of that in 2018 Revenues from the Recreation Center Sales tax have been included. Planning Department has updated building revenue projections Sales tax revenue in outlying years is up, but adjusted for inflation it feels like less. Building construction revenue is always volatile and difficult to project Watson discussed the preliminary net assessed valuation for properties in town. This is the City's total valuation plus the amount that is captured by the tax increment financing district The net assessed valuation is the assessed valuation calculated on the mil levy to give the city its property tax revenue It is projected at 18.1%, but is preliminary and could change significantly by the final number in November He noted the impact on residential property with the projected increase in actual value and changes in the residential assessment rate and mil levy Operating Expenditure Targets Director Watson highlighted updated expenditure targets. He noted increases in water and wastewater parts, repairs and maintenance and that specific buildings have been added to the program budget