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Regular City Council Meeting Monday, October 19, 2015 Page 8 discussion with the City Council. Mr. Miller clarified that previous discussions and direction froin the City Council to staff had been incorporated in this infor- mation as well; and had recognized that there remained several larger pieces re- quiring additional discussion as part of the final budget and tax levy. Mr. Miller reviewed the projected 2015 budget savings in various funds and iden- tified potential operational savings to carry forward and offset future budgetary iinpacts as detailed in the RCA. Mr. Miller further addressed trending to-date in the Consuiner Price Index (CPI) and Employment Cost Index (ECI) used as guidelines per City Council policy to establishing annual non-union employee cost-of-living-adjustments (COLA). Mr. Miller cautioned that these are trends, and while weather-related or overtime may iinpact cost savings before year-end, staff felt confident in projecting these potential positive revenue situations. Mr. Miller provided specifics and projected cost savings in the General, Recrea- tion, Communications, and License Center Fund and potential carryover from each fund. Specific to the Cominunications Fund, Mayor Roe noted that based on ongoing cable commission discussions and the pending status of the Comcast Franchise Agreeinent renewal, this fund may not be as lucrative as in past years; with some of that money possibly shifting over to the cable access entity for their operational needs. Therefore, Mayor Roe recommended that a healthy fund balance remain until future financing was finalized that may not represent the same revenue stream. Regarding the License Center Fund, Mr. Miller advised that based on 2016 pro- gramming as approved by the City Council's preliminary budget and levy, addi- tional discussion may be required in 2017 as to whether it could continue its cur- rent business plan in fiinding the City's Information Technology department. Mr. Miller noted that the License Center was addressing mandated changes requiring additional personal without even considering additional marketing to solicit title transfer and passport business. Mr. Miller noted that this would require City Council policy discussions for budget years 2018 and beyond as to sustaining funding for other City operating areas. Based on analyses by staff to-date, Mr. Miller advised that the 2016 City Manager recommended budget — as adjusted — would represent a reduction of $335,000 from the preliminary budget as adopted on Septeinber 14, 2015. In addressing the Consumer Price Index (CPI) and Employinent Cost Index (ECI) Mr. Miller noted that the City Manager recoinmended budget had included an across-the-board 2% COLA for union or non-unions employees, but advised that not all city contracts had yet been settled. Mr. Miller further reported that some peer communities were settling at more than 2%.