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CASSELBGRRY CITY COMMISSION Minutes of July 10, 2012 —Budget workshop Page 2 of 3 4. REVIEW AND DISCUSS PROPOSED BUDGET FOR FISCAL — - 4� Presentation: Interim City Manager Randy Newlon gave an overview of the proposed Fiscal Year 2013 City Budget including revenue and expenditure comparisons, personnel related matters, debt service, and proposed capital improvements program projects. The total proposed budget for Fiscal Year 2013 is $43,597,898, representing an overall increase of approximately 2.2% over the adopted budget for FY 2012 of $42,653,199. This increase of $944,699 is primarily due to the fact that funds are being released from the City's Neighborhood Capital Improvement Fund for the purpose of investing in the City's neighborhoods. He stated that approximately $2.5 million dollars is budgeted for these projects. Mr. Newlon explained that staff is requesting that the millage be set at 5.45 mills, which would be unchanged from FY 2012. He expressed hope that the growth trend would result in approximately a 2% growth to the City's tax base each year, allowing for a future reduction in the millage rate. Mr. Newlon also advised that he is requesting that the Commission consider a cost of living allowance increase of 3% for City employees. He stated that there has not been an increase in pay for employees since 2008, although inflation has risen 6.2 percent over the same period of time. He noted that the increase, if approved, would not extend to the City Manager, Department Heads or the Commissioners. Discussion: Discussion ensued regarding various subjects including the following: investment policies; increases in various budget lines; overtime; four -day work week; neighborhood improvement program, street lighting projects; economic development; tax abatement program; contingency reserves; alternative water supply sources, potable water supply master plan and water rate study; CRA purchase and assembly of land; and concerns about the effect of new federally imposed healthcare regulations on the City and its residents. No changes to the proposed budget were discussed by the City Commission. Each member of the Commission expressed appreciation to staff for their hard work in preparation of the budget. The Commission as a whole also expressed approval for the proposed 3% wage increase for employees, voicing their appreciation to the employees for weathering the storm over the past few years and working hard to cut costs in order to keep the City moving forward in difficult economic times. Consensus: City Commission consensus was to set the tentative millage rate at 5.45 mills. The City Commission will set the tentative millage rate at the July 23, 2012 regular meeting. Once the tentative millage rate is set, the City Commission may reduce the millage rate at the public hearings, but they cannot exceed the tentative millage rate set at the July 23, 2012 meeting. The first public hearing for the millage rate and budget for Fiscal Year 2013 is scheduled for September 10, 2012. The final public hearing and adoption of the millage rate and budget for Fiscal Year 2013 is scheduled for September 24, 2012. A copy of the City Manager's July 10, 2012 Fiscal Year 2013 budget message outlining the proposed budget, and a copy of the Powerpoint presentation utilized at the budget workshop are attached to and made a part of these minutes.