Finance Highlights 2007 0501 v1 - Laserfiche WebLink

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Another matter that was discussed was the escalation clause of the living wage, and whether it should be based on a Cost of Living Allowance (COLA) or the Consumer Price Index (CPD. Human Resources Director Caire cautioned the Committee about using the CPI factor, as the raise could lead to wages that are higher than the wages paid to regular City staff. Grant suggested that the draft Ordinance include language that limits a wage increase from becoming greater than the equivalent wage in the existing Employee Agreements. Hollister also pointed out that other cities use a cap when using the average method provision in equity adjustments. The Committee recommended forwarding the discussion to the City Council with emphasis on the following items: . Whether to place a cap on wage increases . CPI or COLA method for escalating future wage rates . Discussion on which organizations and companies would qualify for the living wage . Discussion on Employee limits qualifying for Profit and Non-Profit organizations . Discussion regarding how organizations qualify for waiver eligibility Staffwill also prepare a draft Living Wage Ordinance for City Council's review and discussion. 2. Review of Preliminary Proposed FY 2007-08 Budget Finance Director Baloca presented the Preliminary Proposed FY 2007-08 Budget. The presentation also included highlights which included a projection that the current FY 2006-07 General Fund year would end with a $1.3 million positive net of operation. The positive operation primarily reflected a 2.1 % increase in revenues received from property related taxes and expenditures saving. As proposed, the FY 2007-08 General Fund Budget is operationally balanced wherein operating revenues of $78.4m exceed operating expenditures of $77.4m. Revenues are projected to grow by 2.1 % or $1.6m, while operating expenditures are proposed to increase by 4.4% or $3.2m. The Proposed Budget also provides for the restoration of previously reduced programs and activities that include: increasing total sworn police officers from 90 to 93, the annual Cherry Festival, Sunday Library Hours, the Manor Pool, the Manor Library, addressing the shortfall in CDBG funding for community based organizations, and holiday lighting services. The Budget also restores the City's contingency reserves to its policy level of 20% while establishing reserves and a budget that will address deferred maintenance in the areas of facilities, technology, and vehicle and equipment replacements. General Fund Capital Improvement Projects (CIP) were also proposed for next year's budget. 3. Discussion Regarding Amendments to the Fee Schedule for FY 2007-08 Baloca presented the proposed adjustments to the City's fees, service charges, and taxes that would be effective July 1, 2007. Changes primarily include adjustments based on Consumer Price Index and the new Engineering Construction Cost Index. The Finance Committee recommended forwarding to the Council for approval. 2