Wednesday, July 13, 2016

Budget Workshop Observations Update

The city staff is presenting 138 pages of mostly numbers to the council.  It is difficult to understand where the spending increases are occurring and will require further detailed analysis. However, the following information was gleaned from the presentation on 7-12.

The staff expects to underrun the current year budget by a small amount.

Lone Star Rail is included in the budget in the amount of $49,500, but, it is viewed as a placeholder until the council makes a decision whether or not to continue participation.

The city plans to hire 13 additional people next fiscal year.

SunEdison's bankruptcy has no impact on Buckthorn, LLC and they plan on completing the solar plant in the first quarter of 2017.

Utility charges are expected exceed costs by $8,070,041 and that amount will be transferred to the general fund to pay for city operations.

The fire department plans on hiring 3 fire fighters and 3 paramedics within the next year.

The EMS Paramedic Fund continues to run a deficit and is expected to remain in deficit over the next 5 years as indicated in the proforma income statement that was presented.

Finally, a planned expenditure of $35,000 for support on an Affordable Housing Tool is included.  This is very disturbing and additional information is required to understand exactly what this expenditure is for.  It is the "kiss of death" if this is the HUD tool.  The city MUST NOT get engaged with HUD on this tool if city sovereignty is to be preserved.

City staff confirmed today that the Affordable Housing Tool is a study to identify different characteristics of affordable housing and to look at mechanisms to encourage affordable housing. It is unrelated to HUD's "Assessment of Fair Housing Tool"!

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