CC 07/10/2023 Minutes - Laserfiche WebLink

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CASSELBGRRY CITY COMMISSION Minutes of July 10, 2023 — Budget workshop Page 2 of 3 3. ROLL CALL The City Clerk called the roll of Elected Officials. All were present with the exception of Commissioner Chad Albritton. Mayor Henson noted for the record that Commissioner Albritton was absent due to illness. 4. REVIEW AND DISCUSS PROPOSED BUDGET FOR FISCAL YEAR 2024 Presentation: City Manager Randy Newlon gave a PowerPoint presentation covering in detail the projected revenues and proposed expenditures for the Fiscal Year 2024 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 2024 is $70,651.022, representing an overall increase of approximately $442,062 or 0.63% from the adopted budget for FY 2023 of $70,208.960. Debt service is proposed to be $7,501.179, a 10.62% increase due mainly to the strong capital investments currently underway and the loans being taken out to fund those improvements. The proposed budget includes an approximate 5.2% increase in salaries effective October 1, 2023 which would apply to all general employees and directors but would not apply to the City Commission and the City Manager. Sworn officers would receive a 5% increase in accordance with the Police Union contract. Negotiations will be held to determine if the Union will also accept October lsr as the implementation date for the sworn officer raises, as the implementation date in the contract is defined as January 1 st. Total staffing was increased from 224 to 232, which included 225 full-time and 7 part-time employees. The City Manager requested that the millage rate be set at 2.9000 mills for FY 2024. He explained that there would also be a separate voted debt millage rate (voted debt service) of 0.7181 mills for FY 2024 that would need to be set by the City Commission, which was associated with the issuance of the voter approved General Obligation Bonds to renovate, improve and construct parks and recreation facilities. Mr. Newlon and the City Commission expressed appreciation to Finance Department staff for their preparation of the proposed budget and to all other City staff for their input. Discussion: Discussion ensued regarding various aspects of the proposed budget and related subjects, including: property values; inflation rates; potential decrease in Local Option Gas Tax and Communications Services Tax revenues; impact of implementing either the rolled -back rate or rolled -back rate with PCI (per capita income) on expenditures in the proposed budget; comparisons of millage with surrounding cities; contingency reserves; proposed approximate 5.2% salary increase for general employees and October 1, 2023 implementation; proposal to negotiate with the Police Union for implementation of the 5% sworn officer raises as of October I sr;; water and sewer rates; transfer of funds to the Solid Waste Fund to support operations due to cost increases caused by inflation; options for reducing budget impact to citizens including feasibility of lowering costs for some services rather than reducing millage rate; need for continued investment in the water and sewer utility and desire not to deplete funding available for needed improvements; ongoing capital improvements; proposed voted debt millage rate; and options for the FY 2024 proposed millage rate. Each of the Commissioners expressed a comfort level with the City's financial status and its ability to withstand the challenges of the current economy and the next couple of potentially lean years; and also support for setting the millage rate for Fiscal Year 2024 at the rate of 2.9000 mills and the voted debt millage rate at 0.7181 mills.