City Council Work Session

Jeffrey Plattenbergcurrent forecasted amount which is a revision from the FY25 budgeted amount especially with those the 7% all of the different components that I mentioned that FCPS has in their budget is why we've come together with our proposed budget amount and again this doesn't account for the classroom rental which is accounted for in revenue but not in expense prior to the actual tuition bill coming here classroom revenues however are growing much smaller than the tuition bill in relation to it so a local funding effort what does this mean to the city of Historically, in FY24, it was approximately 35% of the general fund that was dispersed to schools. Based upon what you've heard this evening and what we are anticipating,

Wendy Sanfordstaff30% funding can be spent on projects at increased capacity and also projects public transportation purposes. And so we are allowed to use our 30% money for the operating expenses of our transit system. The C&I money, the commercial and industrial tax at 12.5 cents on property zoned, commercial or industrial, that can only be used for projects that increase capacity. So that C&I money cannot be used on transit operations. That's why we use the 30% money. But it is not general fund money that we are using to pay for Q.

Brian Fosterstaffthank you mayor members of council um i will kick this off i have of course we have um Gwen and JC from the finance department here as well. Melanie's here. Brooke is here. David is here as well. If there are things that may be come up in their area. I presented the budget last week. And you, of course, had these lovely thick books to take home and peruse with lots of the information. So we sent out just a suggestion of how we might want to structure the discussions. It's certainly not set in stone, and you're welcome to change the direction, but we wanted to sort of help you focus on manageable chunks as far as the discussion goes. So for tonight, we were just basically focusing on the general fund, which of course is our

in that i'm not saying we shouldn't do it it's cost involved in that and oh by the way we don't charge a fee we don't charge a fare and the funding the part of the funding that we have for that goes away the arpa it's going to disappear the grant for the zero fare going to disappear there I don't think in the conversation brief conversation that I've had with Wendy the 30% funding there's a max I mean there's just what that generates is a max and so without any change there's a likelihood of general fund money having to go into queue potentially depending on again depending on other decisions that are made so all of these things are certainly interconnected the schools is another I mean that's this by far the biggest driver in in in

If you recall from when Davenport was here, and if you go look at their presentation, and we can provide that slide to you again, one of the assumptions is that there's a minimum of $11 million transferred in cash every year to fund the CIP. The CIP is obviously much more expensive than that, comes in you also have a financial policy that says that you will contribute at least five percent of general fund expenditures the equivalent to it to the CIP that's all part of of why we have a triple-a bond rating that all of those things are interplay so if you're wanting to change the CIP and your goal is to reduce what the tax rate is for the budget simply changing projects is not going to do that you have to view what we will have to reduce the cash