City Council Agenda and Packet 2019 08 06

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City Council Meeting Minutes July 16, 2019 Page 4 of 6 Sales Tax Revenue Director Watson stated right now without all the audit revenue we are trending at minus 1 percent. He stated with audits coming in he expects to end the year with a positive number. We are seeing a softening of the sales tax number and it affects all major funds. He asked if the assumption is too aggressive or too low. Councilmember Maloney felt the assumption was accurate and stated we might see higher collections of outside city sales tax and should be prepared for that. We know expenditures aren't declining so this is concerning. Mayor Pro Tem Lipton stated the softening has been coming and we need to accept this trend. Members discussed various anticipated changes to the economy and what other options there might be for tax revenue. Property Tax Director Watson stated the model assumes a flat mill levy. Consumer Use Tax Director Watson stated this is very elastic so really looking for the medium ground. It will be interesting how this goes in a bad year. Auto Use Tax Saw a huge increase from the hail storm. But it should trend back to normal. Building/Construction Generated Revenue This is only for projects we know about in the future. The fees fund the costs of the Building Department. Recreation Center Charges for Services Revenue This does not include sales tax, seeing a big increase this year with the opening of the new center. Golf Course Revenue Minimal expected growth but reasonable. Members discussed if this is a conservative enough approach. Needs to be realistic. Expenditure Targets Director Watson reviewed the employee wage targets and new positions. There will be savings in vacancies that will show up on the turnback or the changes from the June 4 budget amendment. The targets and turnbacks in the various funds were discussed. 15