City Council Minutes 2020 09 22 SP

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City Council Meeting Minutes September 22, 2020 Page 4 of 5 Improvements Plan (CIP). Included in the packet are the transmittal letter with a general overview of the recommended budget, a summary of variable hours and projected wage costs, the recommended budget by fund, the recommended budget by program, and the recommended CIP projects. Director Watson reviewed the revenue assumptions used in the budget. These have been discussed with the Finance Committee. The projected decline in sales tax revenue has been set at 13% below 2019 levels. In general, staff is projecting a return to 2019 revenue totals by approximately 2023. The City has not yet received its preliminary 2020 assessed valuation from the Boulder County Assessor; those are expected to be mailed October 13 with final valuations expected to be received late November. Current projections of property tax revenue are based on last year's projections of assessed valuation. Director Watson reviewed the expenditure targets in the budget. He noted minor changes to staff positions and reviewed the proposed salary increases for staff. He reviewed the interfund transfers noting specifically a proposed change to the Historic Preservation Fund transfer. Director Watson stated that to comply with the Council directive to reduce the annual turnback percentages, staff reviewed all the requested budgets on an account -by -account basis. Based on review of historical trends, staff recommended reductions to accounts thought not to significantly impact department operations. Other notable items in the recommended budget include • The calculation of the transfer from the Historic Preservation Fund to the General Fund has changed to simply 20% of total sales and use tax collections within the Historic Preservation Fund. • The addition of $120,000 in 2021 for the Old Town Overlay project and $250,000 in 2022 for the Comprehensive Plan Update project. • The elimination of the Nite-at-the-Rec Program. All variable wages, supplies, and services have been removed. If the Council approves elimination of this program, staff will re -allocate the remaining regular wages to other programs. • No anticipated CARES Act funding. • No adjustment for the possible repeal of the Gallagher amendment or for a significant reduction in the residential assessment rate. Director Watson reviewed the long-term financial plan by fund noting good fund balances are being maintained in the General Fund. He reviewed the upcoming budget meeting schedule. City Manager Balser stated this the first proposal and is not the final version. She stated staff tried to be responsive to direction received from Council in July. Staff is looking for