Finance Committee Agenda and Packet 2022 02 21

Home Browse Search

City Council Finance Committee Meeting Minutes 01 /24/22 Page 2 of 4 APPROVAL OF THE MINUTES FROM THE DECEMBER 17, 2021 MEETING The Finance Committee approved the December 17, 2021 minutes as presented. APPROVAL OF DESIGNATED PLACES FOR POSTING PUBLIC MEETING NOTICES The Committee approved the designated posting places as proposed. MARSHALL FIRE — CITY RECOVERY COSTS, FUNDING, AND REIMIBURSEMENTS Kevin Watson, Finance Director discussed preliminary revenue loss projections due to the Marshall Fire. Director Watson summarized discussions with the Boulder County Assessor on the fire impacts to the City's assessed valuation. Director Watson also discussed the estimated assessed valuation for properties that were totally destroyed. Based upon current information, Director Watson proposed lowering the assessed valuation growth projection for 2022 from a positive 1 % to a negative 5%, which will result in approximately $350,000 less property tax revenue for 2023. Director Watson summarized the methodology used for preliminary projections on 2022 sales tax revenue. Based upon current information, Director Watson proposed lowering the current 2022 growth projections of sales tax revenue from a positive 7% to a positive 2%. The dollar amount of this change alone would be approximately $850,000. However, if we factor in that the actual 2021 revenue, which is large than the amount used during the 2022 budget development, the actual dollar amount difference is approximately $320,000. Director Watson also discussed the revenue impacts for due to Ordinance 1823 which allowed staff to: • Suspend all delinquent account collection procedures for all accounts, including penalties, interest, red tags, and disconnections for January; • Write off all delinquent balances due from addresses that have been destroyed or damaged; and • Suspend billing for one month (the month of January) for all properties while staff works on updating our utility billing database to identify all destroyed or damaged properties. The total impact to utility revenue is projected around $800,000 to $900,000. Director Watson explained that this amount would be covered by a General Fund transfer to the Utility Funds.