Council to discuss potential additions or modifications to existing financial policies including, but not limited to, potential revenue reductions, restrictions or allocations. (Doug Sandstrom, Finance Director)

Although no specific action will be taken as part of this work session, the discussion of revenue policies will have a direct impact on the formulation of the FY2023 budget 

On February 7th council was presented an overview of general fund resources, expenditures, requests and a five-year forecast.  As part of this discussion a change to the current financial policies for FY2023 were discussed which lead to consensus on a change in the amount of Construction Sales tax that could be considered ongoing revenue and used for operational purposes.  A second part of the discussion centered around the idea of giving something of the revenue back to the community, dedicating resources for a specific purpose in lieu of identifying new tax or revenue sources.  As there was not a clear consensus attained on the second part of this discussion the City Manager revisited the topic with council on February 28th and received consensus to bring the topic back as a work session item in March. 

Financial Policies are reviewed and adopted annually in order to inform the development of the City Managers Recommended Budget.  The specific concepts included this work session material are potential points of discussion that have been identified by staff based upon council discussions during prior council meetings, retreats and regular check-ins.  Any potential change to revenues, rates or policies will have an impact on the formation of the FY2023 budget.  Based upon council discussion modifications to the FY2023 Financial Policies may be necessary.