2006-01-26 - Laserfiche WebLink

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32 Ms. Beauregard reviewed bills being considered by the General Assembly which could affect the City’s budget. She said the State says that the telecommunications bill will be revenue neutral, but said we do not know if that will be the case. She said caps of 3% and 5% on real estate tax increases are being considered. She noted that a cap of 5% would amount to eleven cents on the City’s tax rate. Mr. Lynch said that if the State fails to reimburse localities for personal property taxes, the cost will have to be passed on to car owners and the percentage would need to be changed. Responding to a question from Mr. Lynch, Ms. Beauregard said that $10.015 million in County revenue sharing funding is expected this year. Ms. Beauregard said the City is doing well on interest earned. Responding to a question from Dr. Brown, Ms. Beauregard said that meals tax revenue is expected to increase 2% and lodging tax is expected to increase 5%. Mr. O’Connell said that the budget is based on the Governor’s budget and is subject to General Assembly changes. He said the School are concerned about the State budget. It was agreed that a community budget forum will be held at Buford cafeteria on a Saturday after the budget is presented. Mr. O’Connell said that financial data will be on the website as well as updated budget history. Mr. Lynch said he thinks it would be a good idea to have a work session on retirement and health benefits and that it should involve a wider community discussion. Dr. Brown said he does not think Council should try to do this as part of the budget. Mr. Caravati said that long range planning is necessary regarding benefits, and this is not something we can react to in one year. He said reductions to the subsidy to employee spouses is being considered, but beyond that there needs to be a long term discussion and phasing in of changes. Mr. Caravati said that in looking at revenue projections, he thinks that if Councilors are thinking about cutting revenues, he asked that they suggest things to cut rather than just reducing the tax by a percentage. He said revenues and expenditures should be done at the same time and should involve Council, staff and the community. Mr. Lynch said we should start with expense drivers. Dr. Brown said he thinks Mr. Caravati makes a good point. Mr. Schilling noted that there had been no Council policy last year about cutting taxes and it happened all by itself. He encouraged the City Manager to do that again this year. Mr. Schilling asked if it is correct that the City has added 61 ½ positions in the last six year. Mr. Beauregard said these are full time equivalents. Mr. O’Connell reviewed the staffing changes. Mr. Lynch said two major cost centers are employee costs and the cost of poverty. The meeting was adjourned.