Title
Second Reading and Action on Ordinance 21-002, an Ordinance Authorizing Supplemental Appropriation #1 to the 2021 Budget - Parts 1 and 2.
Body
Summary:
Part 1 will increase non-profit funding by $41,014 from 2020 unspent funds per Resolution 20-111.
Part 2 will increase funding by $264,013 to implement the 2021 Labor Union Contract allocating the negotiated wage adjustment to the respective city departments' budgets and reallocate 2021 budget appropriations to fund the new Public Works Department per Ordinance 20-022.
Background:
Part 1
Annually, the City Council commits a portion of the budget for outside agency funding. The 2021 budget contains $1.4 million for outside agencies; $225,486 of 2021 funds are committed to non-profits through the new United Way funding process. All social service requests for city funds were received through the United Way process.
Part 2
At the time the 2021 Budget was prepared and presented to the City Council, there was uncertainty of what the COIVID-19 impact would be on the city's sales tax revenue. Following the conservative budgeting principles, city leadership was proactively managing operational budgets to a (-8%) year over year tax revenue decrease. Under this scenario, but acknowledging that things could divert from it, negotiations with the collective bargaining units were based on four potential scenarios driven by full 2020 year over year sales tax revenue performance:
1) (-8%) decrease or lower
2) 2% better than expected; or (-6%) decrease
3) 3% better than expected; or (-5%) decrease
4) 4% better than expected or higher; or (-4%) decrease or lower
The city reorganization, with the establishment of the Public Works Department, to develop a more cohesive department with coordinated efforts of services for the community was approved through Ordinance 20-022 late last year. The new department contains the divisions of Engineering, Solid Waste, and Streets. The proposed budg...
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