09-06-18 Special Meeting of the La Porte City Council

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REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: September 6, 2018 Requested By: rnrh3j n_ Alexander Department: Administration Exhibits: Golf Course Cart & Fee Increase Golf Course Fee Survey PW Reduction in Force Equipment Services Cost Comparison Contingency 3 Year History Budget Source of Funds: Account Number: Amount Budgeted: Amount Requested: Budgeted Item: SUMMARY & RECOMMENDATION On Monday, August 13, 2018, the La Porte City Council began meeting to consider the fiscal year 2018-19 budget. Staff was directed to consider the viability of list of possible cuts (list attached) as well as some other follow up items. Raising the Tax Rate $.05: When setting tax rate there are, of course, a number of factors to consider. One issue raised during the budget hearing was would an increase of $.05 exceed the "rollback rate". The FY 2018-19 rollback for the City of La Port is $.77. Consequently, Council could increase the rate by $.05 without risking the rollback provisions in the law. If a taxing unit other than a school district adopts a tax rate that exceeds the rollback tax rate, voters in the taxing unit may petition for an election on the tax increase. A successful election limits the taxing unit's current tax rate to the rollback tax rate. It is also important to note that increasing tax rate will require certain public notices and public hearings. If Council chooses this option, we will need hold two separate public hearings and hold a special meeting to adopt the tax rate. The schedule could be as follows: Public Hearings on September 20 and September 24. State law requires that we wait a week after the 2nd public hearing adopt the tax rate. While we typically have a tax rate adopted by the end of September; the law allows the city to adopt a tax rate as late as October 21. Furthermore, should Council approve a tax rate increase, we would setup a system to earmark any increases to those project identified and approved by Council. Projects could include but are not limited to: 1. New stand-alone fitness center 2. Revamping senior facility 3. 1500 stipend for city employees paid in November 4. Turf baseball fields 5. Drainage improvements Potential Cuts: Staff was also asked to look into the viability of several budget cuts/revenue enhancements.