Finance Committee Agenda and Packet 2024 09 19

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Committee Comments: None. Public Comments: None. Mid -Year Financial Update: Financial Analyst Mansurabadi presented a mid -year financial update to the committee. The report was included in the meeting packet. Committee Comments: None. Public Comments: None. Budget Update: The City Manager thanked city staff for all the work done to provide this update on the FY 2025-2026 proposed budget. Interim Finance Director Ostrom and Interim City Manager Fox presented a recap of the budget calendar, items discussed at the budget retreat and where it was left off at the retreat, the general fund budget gap, the general fund revenue and expense changes and a summary of those changes. The Financial Analyst gave a review of the parks fund structural imbalance and capital needs and a proposed path forward. Capital Project fund actions and net changes were presented to the committee. The revised capital projects fund was also presented. The presentations were included in the meeting packet. Committee Comments: Councilmember Hamlington asked if ballot measure 2C was included in the sales tax numbers. Interim Finance Director Ostrom commented that this part of the presentation reflects general fund only. Councilmember Hoefner commented that budget year to date sales tax revenue is still down against budget. He asked to confirm that the adjusted revenue amount is accurate. Interim Finance Director Ostrom responded that while the 2-year budget expectation was to be up by 8%, staff have closely reviewed actual sales tax revenues in 2024 plus projections and believe that $12.4M is a very supportable number. Councilmember Hoefner wants to ensure the numbers presented are driven by objective analysis and not driven by the need to find $1M to make the budget seem balanced. Interim Finance Director Ostrom commented that, as an example, the Franchise Tax-Xcel Energy estimated number was based on previous budgets whereas the adjusted amount is truly where we are looking to be in 2025. Councilmember Hoefner asked for the list of one-time expenses referenced in the presentation. Interim Finance Director Ostrum will provide that list to the committee. Councilmember Kern asked if not filling the open position in Community Development would affect the two -week response time to Marshall Fire construction. The Director of Community Development commented that the city did previously over -hire both the building inspector and plan review positions. 4/251