City Council Minutes 2018 10 04 - Laserfiche WebLink

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City Council Meeting Minutes October 4, 2018 Page 3 of 10 City Manager Balser noted this is a significant change to the budget and will leave over $10M in fund balance. Councilmember Maloney stated we won't end up with large fund balances as we can true it up every year. Director Watson stated long term financial planning is not intended to project the future but to help manage it. Mayor Muckle stated there has to be a way to plan properly for out years. Councilmember Stolzmann noted the organization shouldn't grow in a way where ongoing expenditures exceed ongoing revenues. If there is a surplus of one-time revenue to use, it shouldn't be used for salaries. Should keep the magnitude of growth in check with the magnitude of the organizational revenue growth. Councilmember Maloney said over the course of 6 years he wants a percentage near zero revenue to expenditures. Mayor Pro Tem Lipton stated he wants it balanced every year. Mayor Pro Tem Lipton stated using 5% for wages sets an expectation, would rather it be more in line with other regional employers. Director Hix noted the low unemployment rate will affect hiring. City Manager Balser noted the 5% is not the average for the merit increases, it is a combination of things. 2019 and 2020 are impacted by new positions. Director Watson stated the 2019 market adjustments are already known and 2020 is assumed at 1%. Merit increases average 4%. Director Hix stated we do not do COLA increases, we do market adjustments and merits based on performance, and part-time employees get a percentage increase that is the average. Mayor Pro Tem Lipton stated the out year assumptions seem higher than what everyone else is using and we set an expectation when we set this. Mayor Muckle suggested a friendly amendment to say we have to balance the out years in the General Fund within 2% with an average of zero. Councilmember Maloney accepted the amendment. Councilmember Leh wanted to make sure the salary costs were realistic. Director Hix noted the salary ranges are bound by what the market will bear.