1 00:00:25,140 --> 00:01:27,910 [Music] 2 00:01:27,920 --> 00:01:29,520 All right. Good afternoon. I'm going to 3 00:01:29,520 --> 00:01:31,280 call this uh special meeting four 4 00:01:31,280 --> 00:01:33,439 o'clock special meeting to order. Madame 5 00:01:33,439 --> 00:01:35,600 clerk, would you please call role? 6 00:01:35,600 --> 00:01:36,630 >> Council member Dinus 7 00:01:36,630 --> 00:01:36,640 » Council member Dinus 8 00:01:36,640 --> 00:01:37,030 >> here. 9 00:01:37,030 --> 00:01:37,040 » here. 10 00:01:37,040 --> 00:01:38,069 >> Council member Dedric 11 00:01:38,069 --> 00:01:38,079 » Council member Dedric 12 00:01:38,079 --> 00:01:38,469 >> here. 13 00:01:38,469 --> 00:01:38,479 » here. 14 00:01:38,479 --> 00:01:40,469 >> Council member Temple, acting mayor 15 00:01:40,469 --> 00:01:40,479 » Council member Temple, acting mayor 16 00:01:40,479 --> 00:01:41,040 Carwin 17 00:01:41,040 --> 00:01:41,350 >> here. 18 00:01:41,350 --> 00:01:41,360 » here. 19 00:01:41,360 --> 00:01:43,190 >> And Mayor Estrada is absent. 20 00:01:43,190 --> 00:01:43,200 » And Mayor Estrada is absent. 21 00:01:43,200 --> 00:01:44,710 >> Thank you. Uh Council Member Dinus, 22 00:01:44,710 --> 00:01:44,720 » Thank you. Uh Council Member Dinus, 23 00:01:44,720 --> 00:01:45,840 would you please lead us in the flag 24 00:01:45,840 --> 00:01:50,550 salute? 25 00:01:50,560 --> 00:01:51,680 » Ready, begin. 26 00:01:51,680 --> 00:01:54,389 >> I pledge allegiance to the flag of the 27 00:01:54,389 --> 00:01:54,399 » I pledge allegiance to the flag of the 28 00:01:54,399 --> 00:01:57,840 United States of America and to the for 29 00:01:57,840 --> 00:02:01,040 which it stands, one nation under God, 30 00:02:01,040 --> 00:02:03,439 indivisible, with liberty and justice 31 00:02:03,439 --> 00:02:06,870 for all. 32 00:02:06,880 --> 00:02:10,000 » You haven't lost your touch. 33 00:02:10,000 --> 00:02:12,080 All right, we've got uh one discussion 34 00:02:12,080 --> 00:02:14,319 item on our special agenda today, a 35 00:02:14,319 --> 00:02:17,040 public safety services community 36 00:02:17,040 --> 00:02:20,000 facilities district. Um, Director 37 00:02:20,000 --> 00:02:21,520 Hickey, would you please introduce the 38 00:02:21,520 --> 00:02:33,589 item? 39 00:02:33,599 --> 00:02:36,000 Okay. Uh, good afternoon, acting mayor, 40 00:02:36,000 --> 00:02:39,680 members of the city council, city staff. 41 00:02:39,680 --> 00:02:42,480 I'm Travis Hiki, CFO of the city, and 42 00:02:42,480 --> 00:02:43,920 it's my pleasure to be here today to 43 00:02:43,920 --> 00:02:45,440 present the first portion of the 44 00:02:45,440 --> 00:02:48,080 workshop for the consideration of a 45 00:02:48,080 --> 00:02:50,959 public safety community 46 00:02:50,959 --> 00:02:55,120 uh, facilities district or CFD. 47 00:02:55,120 --> 00:02:56,959 I would like to thank the executive 48 00:02:56,959 --> 00:02:58,800 office including the city manager for 49 00:02:58,800 --> 00:03:00,640 their time and leadership in the overall 50 00:03:00,640 --> 00:03:03,120 direction of this project. I also want 51 00:03:03,120 --> 00:03:05,680 to thank Spicer Consulting Group, deputy 52 00:03:05,680 --> 00:03:08,560 finance director Margarita Cornnejo and 53 00:03:08,560 --> 00:03:10,400 financial analyst Lori Lockwood for 54 00:03:10,400 --> 00:03:12,400 their tremendous efforts to bring this 55 00:03:12,400 --> 00:03:15,280 all together. 56 00:03:15,280 --> 00:03:29,589 Do we have the slides available? 57 00:03:29,599 --> 00:03:32,959 Okay. Uh so in every uh project or 58 00:03:32,959 --> 00:03:34,640 program the city initiates, the 59 00:03:34,640 --> 00:03:36,239 foundation starts with the five 60 00:03:36,239 --> 00:03:38,480 strategic goals and priorities of our 61 00:03:38,480 --> 00:03:40,879 strategic plan. The proposal for the 62 00:03:40,879 --> 00:03:43,840 public safety CFD really revolves around 63 00:03:43,840 --> 00:03:46,239 the goals and priorities of the thriving 64 00:03:46,239 --> 00:03:48,480 economy and the safe and safe and 65 00:03:48,480 --> 00:03:51,120 vibrant community. Overriding principles 66 00:03:51,120 --> 00:03:53,519 of the thriving economy involve planning 67 00:03:53,519 --> 00:03:55,840 for long-term sustainability and 68 00:03:55,840 --> 00:03:59,200 diversifying the city's revenue sources 69 00:03:59,200 --> 00:04:01,519 for the safe and vibrant community. This 70 00:04:01,519 --> 00:04:03,120 involves maintaining the city as one of 71 00:04:03,120 --> 00:04:04,959 the safest cities where residents and 72 00:04:04,959 --> 00:04:06,560 visitors are secure in their 73 00:04:06,560 --> 00:04:12,149 neighborhoods and surrounding spaces. 74 00:04:12,159 --> 00:04:14,640 So before we look closer at these 75 00:04:14,640 --> 00:04:17,120 priorities, I wanted to go back to some 76 00:04:17,120 --> 00:04:18,959 information that we provided to the city 77 00:04:18,959 --> 00:04:21,359 council a month ago at the joint meeting 78 00:04:21,359 --> 00:04:23,440 with the planning commission provided on 79 00:04:23,440 --> 00:04:26,639 December 17th of last year. I know the 80 00:04:26,639 --> 00:04:28,240 slides are a little bit small, but we 81 00:04:28,240 --> 00:04:30,080 just it's just more kind of for context 82 00:04:30,080 --> 00:04:32,880 and a reminder of what we talked about. 83 00:04:32,880 --> 00:04:34,800 Here we see some of the slides from the 84 00:04:34,800 --> 00:04:37,440 presentation provided by Urban 3 as part 85 00:04:37,440 --> 00:04:40,400 of their revenue per acre analysis. In 86 00:04:40,400 --> 00:04:42,080 the upper left, we see the graphical 87 00:04:42,080 --> 00:04:44,320 representation of the city's general 88 00:04:44,320 --> 00:04:46,000 fund and quality of life budgets 89 00:04:46,000 --> 00:04:48,960 totaling hund00 million. On the left 90 00:04:48,960 --> 00:04:50,560 side in green, we see the various 91 00:04:50,560 --> 00:04:53,440 revenue streams with the two largest 92 00:04:53,440 --> 00:04:56,000 unrestricted sources being sales tax and 93 00:04:56,000 --> 00:04:59,919 property taxes totaling 15 $59 million. 94 00:04:59,919 --> 00:05:02,639 Another $31 million is generated from 95 00:05:02,639 --> 00:05:05,360 licenses, permits, and fees where much 96 00:05:05,360 --> 00:05:07,600 of that is charges for services and 97 00:05:07,600 --> 00:05:09,840 covers the cost of those services. So, 98 00:05:09,840 --> 00:05:11,840 the vast majority of funding to pay for 99 00:05:11,840 --> 00:05:14,080 things like public safety comes largely 100 00:05:14,080 --> 00:05:17,600 from sales tax and property tax. On the 101 00:05:17,600 --> 00:05:19,199 right side in red, we see the 102 00:05:19,199 --> 00:05:21,120 expenditures with public safety 103 00:05:21,120 --> 00:05:24,240 accounting for $56 million or nearly all 104 00:05:24,240 --> 00:05:27,280 of the property tax and sales tax. In 105 00:05:27,280 --> 00:05:28,960 that upper right quadrant, we see an 106 00:05:28,960 --> 00:05:31,600 analysis analysis of the impact that 107 00:05:31,600 --> 00:05:34,240 Prop 13 has on the value of property 108 00:05:34,240 --> 00:05:37,199 taxes in California. Prop 13 protects 109 00:05:37,199 --> 00:05:39,680 homeowners from property taxes not 110 00:05:39,680 --> 00:05:42,720 escalating more than 2% per year. 111 00:05:42,720 --> 00:05:44,479 However, that's regardless of how the 112 00:05:44,479 --> 00:05:47,440 cost of city services increases. 113 00:05:47,440 --> 00:05:49,680 Property tax values are reset every time 114 00:05:49,680 --> 00:05:52,160 a property is sold, creating a major 115 00:05:52,160 --> 00:05:54,240 variance in the property taxes one 116 00:05:54,240 --> 00:05:56,960 homeowner pays for services relative to 117 00:05:56,960 --> 00:05:59,120 other homeowners based on how long they 118 00:05:59,120 --> 00:06:01,280 have owned the property. You can see an 119 00:06:01,280 --> 00:06:04,080 example in the chart where the value per 120 00:06:04,080 --> 00:06:05,840 acre is significantly different for 121 00:06:05,840 --> 00:06:08,160 various homes in the same neighborhood 122 00:06:08,160 --> 00:06:10,800 based on the year of purchase. 123 00:06:10,800 --> 00:06:12,479 On the lower right, we see the impact 124 00:06:12,479 --> 00:06:16,000 that CFD CFDs have made to diversify the 125 00:06:16,000 --> 00:06:18,160 city's revenue streams and somewhat 126 00:06:18,160 --> 00:06:20,960 counteract the impact of Prop 13 on the 127 00:06:20,960 --> 00:06:23,520 base property taxes. Those neighborhoods 128 00:06:23,520 --> 00:06:25,759 with service CFDs are represented with 129 00:06:25,759 --> 00:06:28,479 green layers on their parcels and 130 00:06:28,479 --> 00:06:30,240 provide ongoing revenue to provide 131 00:06:30,240 --> 00:06:32,560 needed services to those developments, 132 00:06:32,560 --> 00:06:34,479 including street maintenance, landscape 133 00:06:34,479 --> 00:06:36,400 maintenance, traffic signal maintenance, 134 00:06:36,400 --> 00:06:40,070 and more. 135 00:06:40,080 --> 00:06:42,240 Shifting back to the city's strategic 136 00:06:42,240 --> 00:06:44,560 plan objective of supporting long-term 137 00:06:44,560 --> 00:06:46,960 sustainability, we see here the many 138 00:06:46,960 --> 00:06:49,919 needs and challenges facing the city. We 139 00:06:49,919 --> 00:06:51,759 have needs for new and existing 140 00:06:51,759 --> 00:06:53,680 infrastructure, including ongoing 141 00:06:53,680 --> 00:06:55,919 pavement management activities, a $1 142 00:06:55,919 --> 00:06:58,319 billion five-year capital improvement 143 00:06:58,319 --> 00:07:00,639 program, and new public facilities for 144 00:07:00,639 --> 00:07:02,880 virtually all of our functional areas, 145 00:07:02,880 --> 00:07:05,199 including city hall, police department 146 00:07:05,199 --> 00:07:07,520 headquarters, public works, maintenance 147 00:07:07,520 --> 00:07:09,199 operations center, and a community 148 00:07:09,199 --> 00:07:11,919 center. In our parks and recreational 149 00:07:11,919 --> 00:07:13,680 amenities and service areas, we have 150 00:07:13,680 --> 00:07:15,440 expanded programming, including the 151 00:07:15,440 --> 00:07:17,840 introduction of an aquatic program, the 152 00:07:17,840 --> 00:07:20,400 acquisition of additional open space, 153 00:07:20,400 --> 00:07:22,240 accepted new parks from ongoing 154 00:07:22,240 --> 00:07:24,080 development, and are pursuing an 155 00:07:24,080 --> 00:07:26,960 annexation process to transfer control 156 00:07:26,960 --> 00:07:30,319 of the parks of parks and rideway 157 00:07:30,319 --> 00:07:32,560 currently operated by the valleywide 158 00:07:32,560 --> 00:07:35,599 park and recreation district. 159 00:07:35,599 --> 00:07:37,680 In building a fiscally resilient and 160 00:07:37,680 --> 00:07:39,840 strong city, the city remains committed 161 00:07:39,840 --> 00:07:42,319 to proactively managing the unfunded 162 00:07:42,319 --> 00:07:44,160 costs of the city's pension and OPED 163 00:07:44,160 --> 00:07:46,240 liabilities and establishing healthy 164 00:07:46,240 --> 00:07:48,800 reserves for both emergencies and 165 00:07:48,800 --> 00:07:50,800 planned uses such as ongoing capital 166 00:07:50,800 --> 00:07:52,880 outlay needs. 167 00:07:52,880 --> 00:07:54,400 And with all of these competing 168 00:07:54,400 --> 00:07:56,800 priorities, the city still holds public 169 00:07:56,800 --> 00:08:00,000 safety within Meny as a top priority, 170 00:08:00,000 --> 00:08:01,680 including supporting equipment and 171 00:08:01,680 --> 00:08:03,919 everchanging technology to support 172 00:08:03,919 --> 00:08:06,560 public safety needs. 173 00:08:06,560 --> 00:08:08,720 So with all of these needs comes 174 00:08:08,720 --> 00:08:10,560 pressure to build and diversify the 175 00:08:10,560 --> 00:08:12,400 city's revenue base and provide the 176 00:08:12,400 --> 00:08:15,360 funding to make Manif a premier, safe, 177 00:08:15,360 --> 00:08:18,000 thriving, and inclusive city to live, 178 00:08:18,000 --> 00:08:22,160 work, play, and stay. 179 00:08:22,160 --> 00:08:24,240 So, the city has done a tremendous job 180 00:08:24,240 --> 00:08:26,879 in diversifying our revenue streams. 181 00:08:26,879 --> 00:08:29,039 Regular citywide user fees and 182 00:08:29,039 --> 00:08:30,879 development impact fee updates keep 183 00:08:30,879 --> 00:08:32,880 revenues up to date with changes in 184 00:08:32,880 --> 00:08:35,680 development, costs of infrastructure and 185 00:08:35,680 --> 00:08:38,719 services, and changes in the economy. 186 00:08:38,719 --> 00:08:40,959 Negotiating various community benefit 187 00:08:40,959 --> 00:08:43,360 agreements has been a welcome relief in 188 00:08:43,360 --> 00:08:45,920 recent times with the economy leveling 189 00:08:45,920 --> 00:08:48,160 off. The agreement with Nova Battery 190 00:08:48,160 --> 00:08:51,360 Park generated a $5 million CBA along 191 00:08:51,360 --> 00:08:53,680 with a $1 million contribution towards 192 00:08:53,680 --> 00:08:56,800 the RBBD along with additional onetime 193 00:08:56,800 --> 00:08:59,680 sales tax for the cost of materials used 194 00:08:59,680 --> 00:09:01,519 in the construction of their site 195 00:09:01,519 --> 00:09:03,920 totaling over $15 million in the past 196 00:09:03,920 --> 00:09:06,399 two years. Had it not been for this 197 00:09:06,399 --> 00:09:08,320 one-time sales tax money last fiscal 198 00:09:08,320 --> 00:09:10,160 year, the city would have fallen short 199 00:09:10,160 --> 00:09:12,640 of budget projections. 200 00:09:12,640 --> 00:09:14,720 The city has also restructured its 201 00:09:14,720 --> 00:09:16,399 investment portfolio to maximize 202 00:09:16,399 --> 00:09:18,480 investment returns while also keeping 203 00:09:18,480 --> 00:09:21,200 the city's treasury safe and liquid. We 204 00:09:21,200 --> 00:09:22,720 are looking at multiple years in a row 205 00:09:22,720 --> 00:09:24,800 with investment earnings outpacing 206 00:09:24,800 --> 00:09:27,760 budget expectations. We also have a very 207 00:09:27,760 --> 00:09:29,519 active economic development program 208 00:09:29,519 --> 00:09:31,200 including the use of incentives to 209 00:09:31,200 --> 00:09:33,839 attract new businesses to the community 210 00:09:33,839 --> 00:09:35,839 which will drive growth in sales tax, 211 00:09:35,839 --> 00:09:38,480 quality of life funds, property taxes, 212 00:09:38,480 --> 00:09:40,800 transient occupancy taxes, and franchise 213 00:09:40,800 --> 00:09:42,320 fees. 214 00:09:42,320 --> 00:09:44,240 Since the voters approved the enactment 215 00:09:44,240 --> 00:09:46,000 of the quality of life measure, the city 216 00:09:46,000 --> 00:09:48,000 has remained committed to using the 217 00:09:48,000 --> 00:09:50,640 funds exclusively for public safety and 218 00:09:50,640 --> 00:09:52,800 infrastructure improvements. Regular 219 00:09:52,800 --> 00:09:54,080 meetings with the quality of life 220 00:09:54,080 --> 00:09:56,959 committee ensure that the public is 221 00:09:56,959 --> 00:09:58,640 vetting the use of these funds before 222 00:09:58,640 --> 00:10:00,240 they are presented to the city council 223 00:10:00,240 --> 00:10:02,800 for use. However, with all of these 224 00:10:02,800 --> 00:10:04,640 efforts, it is still necessary to 225 00:10:04,640 --> 00:10:08,560 prioritize a strategy further to diver 226 00:10:08,560 --> 00:10:11,040 further diversify revenue streams in 227 00:10:11,040 --> 00:10:13,040 support of ongoing services and 228 00:10:13,040 --> 00:10:16,160 infrastructure needs. 229 00:10:16,160 --> 00:10:18,000 So, this brings us to our topic for 230 00:10:18,000 --> 00:10:21,920 today, a public safety services CFD. 231 00:10:21,920 --> 00:10:24,399 A public safety services CFD is a 232 00:10:24,399 --> 00:10:26,240 legally defensible and sustainable 233 00:10:26,240 --> 00:10:28,720 mechanism to ensure that new development 234 00:10:28,720 --> 00:10:30,560 contributes its fair share towards the 235 00:10:30,560 --> 00:10:33,040 increased cost of public safety. I think 236 00:10:33,040 --> 00:10:35,040 the key here is to focus on the word 237 00:10:35,040 --> 00:10:38,079 increased. This is not a CFD to pay for 238 00:10:38,079 --> 00:10:40,320 existing service levels. This would be 239 00:10:40,320 --> 00:10:43,120 to pay for increased levels of services 240 00:10:43,120 --> 00:10:44,959 that are required because new 241 00:10:44,959 --> 00:10:47,360 development is coming into the city. To 242 00:10:47,360 --> 00:10:49,279 say it another way, it's a mechanism to 243 00:10:49,279 --> 00:10:51,519 ensure that service levels do not 244 00:10:51,519 --> 00:10:53,839 decline to existing residents and 245 00:10:53,839 --> 00:10:56,720 business owners within the city. 246 00:10:56,720 --> 00:10:58,560 Shane will cover more specifics in a 247 00:10:58,560 --> 00:11:00,480 moment, but I want to mention that with 248 00:11:00,480 --> 00:11:02,640 new development, most residential 249 00:11:02,640 --> 00:11:05,120 parcels are paying property taxes at a 250 00:11:05,120 --> 00:11:08,320 rate of nearly 2%. This CFD would not 251 00:11:08,320 --> 00:11:11,279 change that rate. It would not add an 252 00:11:11,279 --> 00:11:13,680 additional tax to those owners. If the 253 00:11:13,680 --> 00:11:16,000 CFD does not move forward, the tax rate 254 00:11:16,000 --> 00:11:18,240 would still be up to 2%, but more 255 00:11:18,240 --> 00:11:20,000 funding would be made available to the 256 00:11:20,000 --> 00:11:22,399 developer of the project to be reimburse 257 00:11:22,399 --> 00:11:24,720 for the cost of facilities and fees 258 00:11:24,720 --> 00:11:26,880 connected to the project. It is true 259 00:11:26,880 --> 00:11:29,519 that the developer reimbursements would 260 00:11:29,519 --> 00:11:32,240 be paid off after 30 years when the 261 00:11:32,240 --> 00:11:34,240 bonds are paid off. However, we should 262 00:11:34,240 --> 00:11:36,160 also keep in mind that the need for 263 00:11:36,160 --> 00:11:38,320 those public safety services will not go 264 00:11:38,320 --> 00:11:40,640 away and that the fees connected to 265 00:11:40,640 --> 00:11:42,959 those properties only represent the 266 00:11:42,959 --> 00:11:45,360 incremental cost of those services due 267 00:11:45,360 --> 00:11:48,480 to the development coming into the city. 268 00:11:48,480 --> 00:11:50,160 The city had started the process of 269 00:11:50,160 --> 00:11:52,320 forming a public safety CFD back in 270 00:11:52,320 --> 00:11:54,720 2015. However, the city council at the 271 00:11:54,720 --> 00:11:56,880 time chose not to move forward with the 272 00:11:56,880 --> 00:11:59,839 formation. Since 2015, many thousands of 273 00:11:59,839 --> 00:12:01,839 housing units have come to the city, 274 00:12:01,839 --> 00:12:03,680 representing several million dollars 275 00:12:03,680 --> 00:12:05,200 that the city would otherwise be 276 00:12:05,200 --> 00:12:07,920 receiving. Now, development continues, 277 00:12:07,920 --> 00:12:09,760 and if we act now, we can at least 278 00:12:09,760 --> 00:12:12,000 capture the remaining units yet to be 279 00:12:12,000 --> 00:12:14,160 developed to recoup that incremental 280 00:12:14,160 --> 00:12:17,760 cost for that growth. In June of 2025, 281 00:12:17,760 --> 00:12:19,760 the city council asked about a public 282 00:12:19,760 --> 00:12:22,079 safety CFD. At that time, the city 283 00:12:22,079 --> 00:12:23,839 engaged Spicer Consulting Group to 284 00:12:23,839 --> 00:12:26,480 perform a fiscal impact analysis for a 285 00:12:26,480 --> 00:12:29,680 potential CFD. In September of 2025, 286 00:12:29,680 --> 00:12:31,600 staff reviewed the results of the 287 00:12:31,600 --> 00:12:33,760 analysis with the finance committee, 288 00:12:33,760 --> 00:12:35,440 which recommended the item be brought 289 00:12:35,440 --> 00:12:37,680 forward to the full city council for 290 00:12:37,680 --> 00:12:39,839 review and discussion. 291 00:12:39,839 --> 00:12:41,600 At this time, I'll turn it over to Shane 292 00:12:41,600 --> 00:12:43,839 Spicer from Spicer Consulting Group to 293 00:12:43,839 --> 00:12:45,760 cover the results of the fiscal impact 294 00:12:45,760 --> 00:12:48,399 analysis and provide specifics of what a 295 00:12:48,399 --> 00:12:50,959 potential public safety CFD would look 296 00:12:50,959 --> 00:13:02,310 like. 297 00:13:02,320 --> 00:13:04,800 Thank you very much, Travis. 298 00:13:04,800 --> 00:13:07,600 So, 299 00:13:07,600 --> 00:13:09,760 so I'll cover a high level overview of 300 00:13:09,760 --> 00:13:12,639 the fiscal impact analysis and how does 301 00:13:12,639 --> 00:13:16,639 that translate into a proposed CFD uh 302 00:13:16,639 --> 00:13:21,120 structure. So, as was mentioned in 2015, 303 00:13:21,120 --> 00:13:23,600 um actually I was here doing the initial 304 00:13:23,600 --> 00:13:26,959 analysis and so it's funny 10 10 years 305 00:13:26,959 --> 00:13:28,560 later here we are again having the same 306 00:13:28,560 --> 00:13:31,200 conversation but much critical 307 00:13:31,200 --> 00:13:34,720 conversation needed. So, as uh Travis 308 00:13:34,720 --> 00:13:37,040 had mentioned, um you know, the city is 309 00:13:37,040 --> 00:13:41,120 intending is expecting uh a consistent 310 00:13:41,120 --> 00:13:43,360 level of development and consistent with 311 00:13:43,360 --> 00:13:44,880 the city's development impact fee 312 00:13:44,880 --> 00:13:47,760 analysis that was approved in 2022. Uh 313 00:13:47,760 --> 00:13:50,959 that's estimated that at 2020 2045 314 00:13:50,959 --> 00:13:54,320 population would grow up to 148,000. Uh 315 00:13:54,320 --> 00:13:56,000 at the time of our study, that's an 316 00:13:56,000 --> 00:13:58,320 increase of about 32,700 317 00:13:58,320 --> 00:14:01,279 new residents to the city. 318 00:14:01,279 --> 00:14:03,279 Using the city's current budget and 319 00:14:03,279 --> 00:14:05,440 service levels as a baseline, the 320 00:14:05,440 --> 00:14:08,160 analysis evaluates what it cost would be 321 00:14:08,160 --> 00:14:10,480 for ongoing general fund services to 322 00:14:10,480 --> 00:14:13,519 these new residents through development. 323 00:14:13,519 --> 00:14:15,360 Through this analysis, it anticipated 324 00:14:15,360 --> 00:14:17,760 that revenues for new development for 325 00:14:17,760 --> 00:14:20,320 residential would be approximately $41.2 326 00:14:20,320 --> 00:14:22,320 million. 327 00:14:22,320 --> 00:14:24,560 The general fund service costs for that 328 00:14:24,560 --> 00:14:26,720 same new development is estimated to be 329 00:14:26,720 --> 00:14:30,880 at $47 million. That new gen cost 330 00:14:30,880 --> 00:14:33,920 increase would consist of the addition 331 00:14:33,920 --> 00:14:36,560 of additional public safety service 332 00:14:36,560 --> 00:14:38,720 personnel to provide those additional 333 00:14:38,720 --> 00:14:41,279 services to that community. 334 00:14:41,279 --> 00:14:43,440 Between the revenues and the general 335 00:14:43,440 --> 00:14:45,920 fund service costs, the estimated 336 00:14:45,920 --> 00:14:48,399 negative general fund impact is $5.8 337 00:14:48,399 --> 00:14:52,639 million a year. And that majority of 338 00:14:52,639 --> 00:14:55,120 these service costs, as you as you well 339 00:14:55,120 --> 00:14:57,760 know, is with public safety. Uh the 340 00:14:57,760 --> 00:15:00,720 city's general fund estimates about 60% 341 00:15:00,720 --> 00:15:02,880 of those uh expenditures for public 342 00:15:02,880 --> 00:15:04,880 safety. That is consistent up and down 343 00:15:04,880 --> 00:15:07,600 the state and uh with all the other uh 344 00:15:07,600 --> 00:15:09,199 local communities that I do business 345 00:15:09,199 --> 00:15:12,160 with. Um it is very common to have that 346 00:15:12,160 --> 00:15:14,639 be a greater share of those costs. These 347 00:15:14,639 --> 00:15:16,480 public safety costs include police, 348 00:15:16,480 --> 00:15:18,720 fire, animal control. 349 00:15:18,720 --> 00:15:21,120 uh of that 60% expenditure and the 350 00:15:21,120 --> 00:15:24,320 shortfall that estimates to about $179 351 00:15:24,320 --> 00:15:26,800 per resident which translates to the 352 00:15:26,800 --> 00:15:31,750 rates I'll cover in a minute. 353 00:15:31,760 --> 00:15:35,680 So with CFDs uh CFDs to provide public 354 00:15:35,680 --> 00:15:37,760 safety services is not a new idea. 355 00:15:37,760 --> 00:15:40,000 Obviously we talked about it uh in 10 356 00:15:40,000 --> 00:15:43,519 years ago and they've been u implemented 357 00:15:43,519 --> 00:15:46,800 I've seen any some as far back as 2005. 358 00:15:46,800 --> 00:15:48,959 So for over 20 years, even though the 359 00:15:48,959 --> 00:15:50,560 law has been around for longer than 360 00:15:50,560 --> 00:15:52,560 that, they've been readily used for 361 00:15:52,560 --> 00:15:54,320 public safety. So it's not a novel 362 00:15:54,320 --> 00:15:57,360 concept. For this CFD, the proposed rate 363 00:15:57,360 --> 00:16:00,560 would be $525 per unit for single family 364 00:16:00,560 --> 00:16:04,000 residents and $411 per unit for 365 00:16:04,000 --> 00:16:05,839 multifamily. 366 00:16:05,839 --> 00:16:07,199 It's important to note that this is 367 00:16:07,199 --> 00:16:09,279 similar to the maintenance services CFD. 368 00:16:09,279 --> 00:16:12,480 So this is only on new development. So 369 00:16:12,480 --> 00:16:14,720 the existing community is not and 370 00:16:14,720 --> 00:16:18,800 expected to pay these CFD taxes. 371 00:16:18,800 --> 00:16:20,959 It is also important to note that with 372 00:16:20,959 --> 00:16:23,519 the CFD tax being established with the 373 00:16:23,519 --> 00:16:26,160 CFD uh there would be an escalator 374 00:16:26,160 --> 00:16:27,839 included. You know in the maintenance 375 00:16:27,839 --> 00:16:30,560 services CFD 2017-1 we have the greater 376 00:16:30,560 --> 00:16:33,519 of CPI or 2%. But public safety costs 377 00:16:33,519 --> 00:16:36,079 increase at a much greater rate than CPI 378 00:16:36,079 --> 00:16:39,199 does. And so the proposed CPI as with 379 00:16:39,199 --> 00:16:42,480 other uh public safety CFDs are tend to 380 00:16:42,480 --> 00:16:44,399 be greater. Proposed here is the greater 381 00:16:44,399 --> 00:16:47,839 of CPI or 4%. Now that is the maximum 382 00:16:47,839 --> 00:16:50,800 tax rate. It is up to the council of 383 00:16:50,800 --> 00:16:53,440 what amount to be levied annually for 384 00:16:53,440 --> 00:16:56,079 this public safety CFD or what percent 385 00:16:56,079 --> 00:16:58,800 of increase up to the maximum allowable 386 00:16:58,800 --> 00:17:01,440 can be applied each year. 387 00:17:01,440 --> 00:17:04,640 And as Travis mentioned, this does not 388 00:17:04,640 --> 00:17:07,120 change or modify the 2% effective tax 389 00:17:07,120 --> 00:17:09,199 rate that's uh already been adopted 390 00:17:09,199 --> 00:17:11,360 through the C city CFD goals and 391 00:17:11,360 --> 00:17:14,240 policies. And again, that 2% just to 392 00:17:14,240 --> 00:17:16,959 recap is based on the estimated home 393 00:17:16,959 --> 00:17:19,679 price at the time the C the properties 394 00:17:19,679 --> 00:17:22,400 are developed and up to 2% of that 395 00:17:22,400 --> 00:17:25,039 effect of that home value. 396 00:17:25,039 --> 00:17:27,839 with public safety CFDs they are an 397 00:17:27,839 --> 00:17:30,080 order of highest priority when it comes 398 00:17:30,080 --> 00:17:32,160 to determining that. So what that means 399 00:17:32,160 --> 00:17:34,640 is that that you have the base 1% ad 400 00:17:34,640 --> 00:17:36,559 valorum you have your maintenance or 401 00:17:36,559 --> 00:17:38,480 public safety CFD and then the balance 402 00:17:38,480 --> 00:17:40,559 is what would be eligible for facility 403 00:17:40,559 --> 00:17:45,600 financing if so asked by the developer. 404 00:17:45,600 --> 00:17:48,080 So how does that compare to the region? 405 00:17:48,080 --> 00:17:50,080 So there are quite a few CFDs in 406 00:17:50,080 --> 00:17:52,400 Riverside County. The proposed rate of 407 00:17:52,400 --> 00:17:56,160 $525 is actually below the region uh 408 00:17:56,160 --> 00:17:59,679 county average of $65 per single family. 409 00:17:59,679 --> 00:18:01,600 There's a wide range of rates in the 410 00:18:01,600 --> 00:18:04,720 county, ranging from $257 for city of 411 00:18:04,720 --> 00:18:08,000 Hemet up through over $1,500 for the 412 00:18:08,000 --> 00:18:10,320 city of Coachella. Each rate varies 413 00:18:10,320 --> 00:18:12,960 dependent on when they were uh formed 414 00:18:12,960 --> 00:18:15,120 and also based on the mechanics of the 415 00:18:15,120 --> 00:18:17,520 general fund that the cities operate 416 00:18:17,520 --> 00:18:20,480 under. I can't attest to some of these 417 00:18:20,480 --> 00:18:22,240 uh CFD tax rates of how they were 418 00:18:22,240 --> 00:18:24,400 determined, but I can tell you about a 419 00:18:24,400 --> 00:18:26,000 number of them as I formed these with 420 00:18:26,000 --> 00:18:28,240 these cities most recently just last 421 00:18:28,240 --> 00:18:31,760 year with the city of Marietta. 422 00:18:31,760 --> 00:18:33,760 So, one of the takeaways is that this 423 00:18:33,760 --> 00:18:35,919 tax rate is not an outlier. It falls 424 00:18:35,919 --> 00:18:38,080 well within the range of those CFDs that 425 00:18:38,080 --> 00:18:40,160 are in the county and wholly acceptable 426 00:18:40,160 --> 00:18:42,640 for the this type of CFD. With that, 427 00:18:42,640 --> 00:18:51,669 I'll turn it back to Travis. 428 00:18:51,679 --> 00:18:54,160 Okay, thank you Shane. Um, so if the 429 00:18:54,160 --> 00:18:56,000 council would like to move forward, the 430 00:18:56,000 --> 00:18:58,080 city would start communicating with 431 00:18:58,080 --> 00:19:00,000 developers that there is an intention to 432 00:19:00,000 --> 00:19:03,440 create a public safety CFD for new 433 00:19:03,440 --> 00:19:05,840 projects. This would be a new condition 434 00:19:05,840 --> 00:19:07,919 of approval for the project. We would 435 00:19:07,919 --> 00:19:09,840 also communicate with existing projects 436 00:19:09,840 --> 00:19:12,000 that have not finalized their conditions 437 00:19:12,000 --> 00:19:14,320 and would negotiate with existing 438 00:19:14,320 --> 00:19:16,480 projects on their conditions of devel 439 00:19:16,480 --> 00:19:18,960 and with development agreements uh to 440 00:19:18,960 --> 00:19:22,240 intemp attempt to incorporate the CFD. 441 00:19:22,240 --> 00:19:24,640 The actual formation of the CFD would 442 00:19:24,640 --> 00:19:26,480 happen concurrently with the cornerstone 443 00:19:26,480 --> 00:19:28,480 development starting with the finance 444 00:19:28,480 --> 00:19:30,080 committee before being brought to the 445 00:19:30,080 --> 00:19:33,679 city council for formation. Once the CFD 446 00:19:33,679 --> 00:19:35,440 is formed, future projects would be 447 00:19:35,440 --> 00:19:38,160 annexed into the CFD much in the manner 448 00:19:38,160 --> 00:19:40,320 projects are annexed into the existing 449 00:19:40,320 --> 00:19:42,320 maintenance CFD. 450 00:19:42,320 --> 00:19:44,160 The city would perform regular updates 451 00:19:44,160 --> 00:19:46,400 to the fees based on updated growth 452 00:19:46,400 --> 00:19:48,720 projections which could result in 453 00:19:48,720 --> 00:19:51,440 establishing a newer or updated public 454 00:19:51,440 --> 00:19:56,470 safety CFD in the future. 455 00:19:56,480 --> 00:19:59,280 So, the recommended action is to discuss 456 00:19:59,280 --> 00:20:01,600 and provide direction on establishing a 457 00:20:01,600 --> 00:20:04,640 public safety CFD to help fund essential 458 00:20:04,640 --> 00:20:06,559 city services for new development 459 00:20:06,559 --> 00:20:09,440 projects. And with that, be happy to 460 00:20:09,440 --> 00:20:11,280 take any questions. 461 00:20:11,280 --> 00:20:13,029 >> Thank you, Director Hickeyi. Um, at this 462 00:20:13,029 --> 00:20:13,039 » Thank you, Director Hickeyi. Um, at this 463 00:20:13,039 --> 00:20:15,200 time, uh, the city council is welcome to 464 00:20:15,200 --> 00:20:16,960 ask questions of staff. Again, this 465 00:20:16,960 --> 00:20:18,080 isn't for discussion. It's just 466 00:20:18,080 --> 00:20:20,640 technical questions of staff. So, do we 467 00:20:20,640 --> 00:20:22,799 have any, uh, questions based on the 468 00:20:22,799 --> 00:20:24,559 presentation? 469 00:20:24,559 --> 00:20:25,600 Council member Dinus. 470 00:20:25,600 --> 00:20:28,789 >> Thank you. Um, 471 00:20:28,789 --> 00:20:28,799 » Thank you. Um, 472 00:20:28,799 --> 00:20:31,440 so your projections for 473 00:20:31,440 --> 00:20:34,000 full buildout 474 00:20:34,000 --> 00:20:37,360 if every if if everything's built out 475 00:20:37,360 --> 00:20:41,600 the the 500 whatever dollars it was for 476 00:20:41,600 --> 00:20:43,440 the single family homes would continue 477 00:20:43,440 --> 00:20:45,919 to go on 478 00:20:45,919 --> 00:20:47,520 till the house is no longer there I 479 00:20:47,520 --> 00:20:51,120 guess forever. Um, 480 00:20:51,120 --> 00:20:53,120 so I guess the question is there's some 481 00:20:53,120 --> 00:20:56,559 way will there ever be a time where our 482 00:20:56,559 --> 00:20:59,120 as we grow in our 483 00:20:59,120 --> 00:21:01,600 retail and you know we have a we have 484 00:21:01,600 --> 00:21:05,440 toot taxes that you know with the hotels 485 00:21:05,440 --> 00:21:07,039 coming in so all that's taken into 486 00:21:07,039 --> 00:21:09,360 account and we would on an ongoing basis 487 00:21:09,360 --> 00:21:12,480 we'd be short that much money 488 00:21:12,480 --> 00:21:14,799 ongoing. Is that accurate? 489 00:21:14,799 --> 00:21:16,870 >> Yeah. So this is based on the current 490 00:21:16,870 --> 00:21:16,880 » Yeah. So this is based on the current 491 00:21:16,880 --> 00:21:20,559 budget structure. Um so uh and both the 492 00:21:20,559 --> 00:21:24,159 revenues and and uh expenditures were um 493 00:21:24,159 --> 00:21:26,320 escalated consistent with what would be 494 00:21:26,320 --> 00:21:29,919 conservative growth uh rec recognition. 495 00:21:29,919 --> 00:21:33,760 Um you know this is not you know this 496 00:21:33,760 --> 00:21:35,280 not something that is going to be the 497 00:21:35,280 --> 00:21:37,760 answer forever. It may need to be 498 00:21:37,760 --> 00:21:40,320 updated to be increased or it could be 499 00:21:40,320 --> 00:21:42,720 evaluated that okay the city has t taken 500 00:21:42,720 --> 00:21:44,880 on a lot more uh commercial development 501 00:21:44,880 --> 00:21:47,360 and we don't have to levy as much which 502 00:21:47,360 --> 00:21:49,200 has happened in other cities where you 503 00:21:49,200 --> 00:21:51,200 don't levy the maximum amount you know 504 00:21:51,200 --> 00:21:53,360 you're able to to cover more costs 505 00:21:53,360 --> 00:21:55,120 because you had a better performance on 506 00:21:55,120 --> 00:21:57,679 through your general fund activities. So 507 00:21:57,679 --> 00:21:59,360 this is to protect the city's general 508 00:21:59,360 --> 00:22:02,080 fund to the best of its ability with the 509 00:22:02,080 --> 00:22:04,320 current uh structure of the general 510 00:22:04,320 --> 00:22:07,440 fund. So this will this will not include 511 00:22:07,440 --> 00:22:09,440 any of the construction that's going on 512 00:22:09,440 --> 00:22:11,120 today. 513 00:22:11,120 --> 00:22:12,880 The homes are being built now. Nothing 514 00:22:12,880 --> 00:22:15,600 that's in in the pipeline mean for 515 00:22:15,600 --> 00:22:16,960 approvals and everything. 516 00:22:16,960 --> 00:22:20,470 >> Yeah. So the the typical approach is to 517 00:22:20,470 --> 00:22:20,480 » Yeah. So the the typical approach is to 518 00:22:20,480 --> 00:22:22,240 identify what would be the next project 519 00:22:22,240 --> 00:22:24,400 to come in. We need one project to be 520 00:22:24,400 --> 00:22:26,240 the cornerstone to form the project form 521 00:22:26,240 --> 00:22:28,640 the CFD. Typically if projects are 522 00:22:28,640 --> 00:22:31,200 already underway they're not likely to 523 00:22:31,200 --> 00:22:33,520 you know opt in. um at that point it 524 00:22:33,520 --> 00:22:35,440 would be voluntary because that project 525 00:22:35,440 --> 00:22:36,960 is already you know through its 526 00:22:36,960 --> 00:22:39,679 conditions and is not required to be 527 00:22:39,679 --> 00:22:42,000 included. You may find a part property 528 00:22:42,000 --> 00:22:43,600 that a project that may be already 529 00:22:43,600 --> 00:22:47,360 entitled that would want to participate 530 00:22:47,360 --> 00:22:49,280 you know and it be a negotiated 531 00:22:49,280 --> 00:22:50,880 discussion with the property owner in 532 00:22:50,880 --> 00:22:52,559 the city. So it's a business decision at 533 00:22:52,559 --> 00:22:54,320 that point and then future development 534 00:22:54,320 --> 00:22:56,880 would would automatically be conditioned 535 00:22:56,880 --> 00:22:58,720 to participate along with all other 536 00:22:58,720 --> 00:23:00,799 residential development. 537 00:23:00,799 --> 00:23:04,159 And is it correct that then all the uh 538 00:23:04,159 --> 00:23:07,440 special taxes collected for the CFD 539 00:23:07,440 --> 00:23:10,159 would be restricted to public safety use 540 00:23:10,159 --> 00:23:10,720 only? 541 00:23:10,720 --> 00:23:12,870 >> Correct. It is only limited to the 542 00:23:12,870 --> 00:23:12,880 » Correct. It is only limited to the 543 00:23:12,880 --> 00:23:15,840 public safety services, not towards uh 544 00:23:15,840 --> 00:23:17,679 capital improvements or anything of that 545 00:23:17,679 --> 00:23:18,080 sort. 546 00:23:18,080 --> 00:23:20,870 >> Okay, that's my questions. Thanks. 547 00:23:20,870 --> 00:23:20,880 » Okay, that's my questions. Thanks. 548 00:23:20,880 --> 00:23:22,870 >> All right, council members, any 549 00:23:22,870 --> 00:23:22,880 » All right, council members, any 550 00:23:22,880 --> 00:23:24,320 questions from down here? Council member 551 00:23:24,320 --> 00:23:26,159 Dedric. 552 00:23:26,159 --> 00:23:28,159 Council member Dinus took my first 553 00:23:28,159 --> 00:23:30,720 question, but my second one, it's capped 554 00:23:30,720 --> 00:23:34,559 at 2%, right? So, is that I know there's 555 00:23:34,559 --> 00:23:36,480 the 4% increase that's allowed each 556 00:23:36,480 --> 00:23:38,960 year. How does that how does that 557 00:23:38,960 --> 00:23:39,840 balance? 558 00:23:39,840 --> 00:23:44,149 >> So, the tax rate is going to be at 525 559 00:23:44,149 --> 00:23:44,159 » So, the tax rate is going to be at 525 560 00:23:44,159 --> 00:23:46,320 and then every year the maximum tax 561 00:23:46,320 --> 00:23:50,159 would be the greater of CPI or 4%. So, 562 00:23:50,159 --> 00:23:52,159 um that would just increase the ceiling 563 00:23:52,159 --> 00:23:55,120 on that CFD tax. How does that play into 564 00:23:55,120 --> 00:23:57,200 the 2% we were talking about? Again, 565 00:23:57,200 --> 00:23:59,120 this is the difference between the tax 566 00:23:59,120 --> 00:24:01,360 and the effective tax rate. So, the 567 00:24:01,360 --> 00:24:04,960 effective tax rate is capped at 2%. Um, 568 00:24:04,960 --> 00:24:06,799 and that's per the city's goals and 569 00:24:06,799 --> 00:24:10,400 policies. So, what that means is that 570 00:24:10,400 --> 00:24:12,960 when the home owner, the developer goes 571 00:24:12,960 --> 00:24:15,760 to sell his home after he factors in all 572 00:24:15,760 --> 00:24:18,880 the advalorum, the public safety, CFD, 573 00:24:18,880 --> 00:24:21,279 the maintenance, then he can only go up 574 00:24:21,279 --> 00:24:23,520 to that 2%. So, they're different. These 575 00:24:23,520 --> 00:24:25,279 are two different um items to 576 00:24:25,279 --> 00:24:26,470 >> that's at the initial sale. 577 00:24:26,470 --> 00:24:26,480 » that's at the initial sale. 578 00:24:26,480 --> 00:24:28,390 >> That's at the initial sale. And then 579 00:24:28,390 --> 00:24:28,400 » That's at the initial sale. And then 580 00:24:28,400 --> 00:24:31,679 after the initial sale, then the uh you 581 00:24:31,679 --> 00:24:33,360 know, if there's bonds, those taxes 582 00:24:33,360 --> 00:24:35,520 would be levied. Um and then the public 583 00:24:35,520 --> 00:24:36,799 safety services and maintenance 584 00:24:36,799 --> 00:24:38,000 services, all everything would be 585 00:24:38,000 --> 00:24:41,039 levied. Um but established at that 2% at 586 00:24:41,039 --> 00:24:46,070 the onset. Okay. Thank you. 587 00:24:46,080 --> 00:24:49,600 » I I got a couple questions. So there was 588 00:24:49,600 --> 00:24:51,600 you you had mentioned that uh developers 589 00:24:51,600 --> 00:24:53,600 who are currently in the works could opt 590 00:24:53,600 --> 00:24:56,480 in on a voluntary basis. Why would they 591 00:24:56,480 --> 00:24:59,360 do that? 592 00:24:59,360 --> 00:25:01,190 >> They might have some business incentive 593 00:25:01,190 --> 00:25:01,200 » They might have some business incentive 594 00:25:01,200 --> 00:25:03,520 to do so. Um typically though once 595 00:25:03,520 --> 00:25:05,120 they're already in under construction, 596 00:25:05,120 --> 00:25:06,480 they've already done all of their 597 00:25:06,480 --> 00:25:08,320 proforma, they've already secured their 598 00:25:08,320 --> 00:25:10,320 financing. It is highly unlikely that 599 00:25:10,320 --> 00:25:12,559 any development. Now you may have phased 600 00:25:12,559 --> 00:25:14,960 developments that you could have a later 601 00:25:14,960 --> 00:25:17,919 phase be potentially eligible to come in 602 00:25:17,919 --> 00:25:20,480 but then you know that's at it's not 603 00:25:20,480 --> 00:25:21,760 typical that you would find somebody 604 00:25:21,760 --> 00:25:23,760 that's already in process. 605 00:25:23,760 --> 00:25:26,070 >> So one thing that you mentioned I didn't 606 00:25:26,070 --> 00:25:26,080 » So one thing that you mentioned I didn't 607 00:25:26,080 --> 00:25:27,919 see a slide for it here but you said if 608 00:25:27,919 --> 00:25:30,080 we if we don't do this there's a 609 00:25:30,080 --> 00:25:31,919 developer payment that gets done that 610 00:25:31,919 --> 00:25:34,480 would sunset in 30 years. Explain that 611 00:25:34,480 --> 00:25:36,159 language to me. What what is it that 612 00:25:36,159 --> 00:25:37,840 would be paid out that would sunset in 613 00:25:37,840 --> 00:25:39,520 30 years? 614 00:25:39,520 --> 00:25:41,840 That would be the facilities tax. So 615 00:25:41,840 --> 00:25:44,799 what what currently you is in existence 616 00:25:44,799 --> 00:25:47,360 is that you have a 2% effective tax 617 00:25:47,360 --> 00:25:49,440 rate. All right? And the developer forms 618 00:25:49,440 --> 00:25:51,760 a facility CFD, one of our CFDs that we 619 00:25:51,760 --> 00:25:55,360 formed those that facility CFD is 620 00:25:55,360 --> 00:26:00,000 secured to pay off a 30-year bond. So in 621 00:26:00,000 --> 00:26:03,120 reality, in 30 years, that CFD would go 622 00:26:03,120 --> 00:26:06,799 away. Okay. The problem is is that once 623 00:26:06,799 --> 00:26:09,200 in the current environment, the only 624 00:26:09,200 --> 00:26:12,000 other revenue source the city actually 625 00:26:12,000 --> 00:26:13,840 gets currently would be the maintenance 626 00:26:13,840 --> 00:26:16,240 services for ongoing maintenance. No 627 00:26:16,240 --> 00:26:19,440 public safety taxes to for above and 628 00:26:19,440 --> 00:26:23,200 beyond. Having the public safety CFD 629 00:26:23,200 --> 00:26:26,240 would cut into that 30-year tax that the 630 00:26:26,240 --> 00:26:28,480 developer would be getting, but the city 631 00:26:28,480 --> 00:26:31,200 would be able to continue to levy that 632 00:26:31,200 --> 00:26:34,000 public safety tax for perpetuity to 633 00:26:34,000 --> 00:26:36,240 provide those vital services once even 634 00:26:36,240 --> 00:26:38,400 once the bonds are are paid off. So 635 00:26:38,400 --> 00:26:40,549 >> So does this take the place of that bond 636 00:26:40,549 --> 00:26:40,559 » So does this take the place of that bond 637 00:26:40,559 --> 00:26:42,799 or does it pick up after the bond is 638 00:26:42,799 --> 00:26:43,679 paid off? 639 00:26:43,679 --> 00:26:46,310 >> It cuts into how much of the bond can be 640 00:26:46,310 --> 00:26:46,320 » It cuts into how much of the bond can be 641 00:26:46,320 --> 00:26:47,919 issued. 642 00:26:47,919 --> 00:26:50,390 >> I see. So what we're going to see is 643 00:26:50,390 --> 00:26:50,400 » I see. So what we're going to see is 644 00:26:50,400 --> 00:26:53,760 over the next 30 years the impact of the 645 00:26:53,760 --> 00:26:56,000 new development would be felt by the 646 00:26:56,000 --> 00:26:58,880 city and after 30 years that impact 647 00:26:58,880 --> 00:27:01,520 would continue but the payment for it 648 00:27:01,520 --> 00:27:03,760 would not. Is that basically what's 649 00:27:03,760 --> 00:27:05,840 going on here if we if we were to not 650 00:27:05,840 --> 00:27:07,520 implic uh institute this? 651 00:27:07,520 --> 00:27:09,430 >> Correct. If you did not institute this 652 00:27:09,430 --> 00:27:09,440 » Correct. If you did not institute this 653 00:27:09,440 --> 00:27:12,080 then you would not be recouping those 654 00:27:12,080 --> 00:27:13,760 increased service costs for public 655 00:27:13,760 --> 00:27:15,919 safety even after the bond is paid off. 656 00:27:15,919 --> 00:27:20,390 >> I see. And then is there a 657 00:27:20,390 --> 00:27:20,400 » I see. And then is there a 658 00:27:20,400 --> 00:27:24,240 is there a definition in the law 659 00:27:24,240 --> 00:27:27,440 surrounding this of new development? At 660 00:27:27,440 --> 00:27:30,880 what point it it would begin? Is it on 661 00:27:30,880 --> 00:27:32,880 occupancy? Is it on 662 00:27:32,880 --> 00:27:35,110 >> Yeah. So similar to our our our 663 00:27:35,110 --> 00:27:35,120 » Yeah. So similar to our our our 664 00:27:35,120 --> 00:27:36,960 maintenance services CFDs, what we 665 00:27:36,960 --> 00:27:39,120 typically do is based on only developed 666 00:27:39,120 --> 00:27:41,039 property after building permits are 667 00:27:41,039 --> 00:27:44,400 issued. So there would be a similar um 668 00:27:44,400 --> 00:27:46,400 annual administration component of 669 00:27:46,400 --> 00:27:48,480 reviewing new development and if there's 670 00:27:48,480 --> 00:27:50,720 a building permit that it made the cut 671 00:27:50,720 --> 00:27:52,799 off for that tax year then they would 672 00:27:52,799 --> 00:27:55,440 end up paying towards that CFD. If the 673 00:27:55,440 --> 00:27:57,120 building permit was after that cut off 674 00:27:57,120 --> 00:27:59,520 whatever we define May 1st then it 675 00:27:59,520 --> 00:28:00,799 wouldn't be picked up until the 676 00:28:00,799 --> 00:28:02,480 following year. But it's only new 677 00:28:02,480 --> 00:28:04,240 development. This would not be levied on 678 00:28:04,240 --> 00:28:06,720 undeveloped property there. The 679 00:28:06,720 --> 00:28:08,480 developers wouldn't be paying this. to 680 00:28:08,480 --> 00:28:10,799 be new homeowners and and and develop 681 00:28:10,799 --> 00:28:12,320 property that are pursuant to the rate 682 00:28:12,320 --> 00:28:14,559 and method that we would be establishing 683 00:28:14,559 --> 00:28:16,240 when we bring that back to the council 684 00:28:16,240 --> 00:28:17,360 for approval. 685 00:28:17,360 --> 00:28:20,630 >> And and who does the payment go to? 686 00:28:20,630 --> 00:28:20,640 » And and who does the payment go to? 687 00:28:20,640 --> 00:28:22,310 >> So, the payment would go to the county 688 00:28:22,310 --> 00:28:22,320 » So, the payment would go to the county 689 00:28:22,320 --> 00:28:25,279 and then remitt it to the city um as 690 00:28:25,279 --> 00:28:28,640 other uh portion of funds for a specific 691 00:28:28,640 --> 00:28:30,399 fund number that be designated for 692 00:28:30,399 --> 00:28:32,640 public safety restricted from the 693 00:28:32,640 --> 00:28:36,000 general fund. So in that path, do we end 694 00:28:36,000 --> 00:28:38,399 up back with a 100% of the assessed 695 00:28:38,399 --> 00:28:40,559 amount or does the county keep a portion 696 00:28:40,559 --> 00:28:41,600 of it on the way through? 697 00:28:41,600 --> 00:28:44,149 >> There there's a 30 cent charge for 698 00:28:44,149 --> 00:28:44,159 » There there's a 30 cent charge for 699 00:28:44,159 --> 00:28:46,640 putting it on the tax role. But um you 700 00:28:46,640 --> 00:28:48,799 know if there's delinquencies obviously 701 00:28:48,799 --> 00:28:50,399 that wouldn't come back to the city, but 702 00:28:50,399 --> 00:28:53,039 it would be essentially 100% of what 703 00:28:53,039 --> 00:28:54,480 gets enrolled comes back for public 704 00:28:54,480 --> 00:28:54,880 safety. 705 00:28:54,880 --> 00:28:57,269 >> So of the $525 the county would just 706 00:28:57,269 --> 00:28:57,279 » So of the $525 the county would just 707 00:28:57,279 --> 00:28:59,360 keep 25 30 cents of it and then the rest 708 00:28:59,360 --> 00:29:00,320 would come here 709 00:29:00,320 --> 00:29:02,710 >> pretty much. So they can't stop it along 710 00:29:02,710 --> 00:29:02,720 » pretty much. So they can't stop it along 711 00:29:02,720 --> 00:29:04,320 the way and divert it to their own 712 00:29:04,320 --> 00:29:06,159 funds. It just they're just mainly a 713 00:29:06,159 --> 00:29:06,880 pass through. 714 00:29:06,880 --> 00:29:08,870 >> Absolutely not. And we bring in this 715 00:29:08,870 --> 00:29:08,880 » Absolutely not. And we bring in this 716 00:29:08,880 --> 00:29:10,480 back to the council like all the other 717 00:29:10,480 --> 00:29:12,880 CFDs for annual review and approval and 718 00:29:12,880 --> 00:29:14,559 the resolution that we would need in 719 00:29:14,559 --> 00:29:16,880 order to submit to the tax role. 720 00:29:16,880 --> 00:29:20,070 >> In all of the cities that you have seen 721 00:29:20,070 --> 00:29:20,080 » In all of the cities that you have seen 722 00:29:20,080 --> 00:29:22,159 institute one of these, have there been 723 00:29:22,159 --> 00:29:25,200 any ever that have reduced or eliminated 724 00:29:25,200 --> 00:29:27,039 it? 725 00:29:27,039 --> 00:29:29,990 >> Well, reduced in the Okay. For example, 726 00:29:29,990 --> 00:29:30,000 » Well, reduced in the Okay. For example, 727 00:29:30,000 --> 00:29:30,640 um you know, 728 00:29:30,640 --> 00:29:32,230 >> like for example, I'll tell you exactly 729 00:29:32,230 --> 00:29:32,240 » like for example, I'll tell you exactly 730 00:29:32,240 --> 00:29:33,279 what I'm talking about. Maybe it'll help 731 00:29:33,279 --> 00:29:35,679 you answer your question. If in 15 732 00:29:35,679 --> 00:29:39,039 years, Han Road is fully built out with 733 00:29:39,039 --> 00:29:40,799 economic development and that's just 734 00:29:40,799 --> 00:29:43,039 cranking tax revenue for something like 735 00:29:43,039 --> 00:29:45,520 that and it would cover the cost of the 736 00:29:45,520 --> 00:29:48,080 public services. 737 00:29:48,080 --> 00:29:50,320 Do we just keep taking it anyway or is 738 00:29:50,320 --> 00:29:52,080 there a way for us to go, hey, we got it 739 00:29:52,080 --> 00:29:53,679 covered? Like the Coronado Bridge, hey, 740 00:29:53,679 --> 00:29:54,720 we got it covered. We don't need to 741 00:29:54,720 --> 00:29:55,919 charge you for it anymore. 742 00:29:55,919 --> 00:29:58,630 >> Yeah. there. So when the through the the 743 00:29:58,630 --> 00:29:58,640 » Yeah. there. So when the through the the 744 00:29:58,640 --> 00:30:02,000 annual audit uh budget review process um 745 00:30:02,000 --> 00:30:03,679 that's when you evaluate how much are 746 00:30:03,679 --> 00:30:05,120 you getting from all your uh 747 00:30:05,120 --> 00:30:06,880 discretionary funds or how much are you 748 00:30:06,880 --> 00:30:08,320 getting from your restricted funds and 749 00:30:08,320 --> 00:30:09,919 evaluate how much public safety costs 750 00:30:09,919 --> 00:30:13,279 are. I can tell you that I have seen 751 00:30:13,279 --> 00:30:15,760 instances where a city had froze the 752 00:30:15,760 --> 00:30:18,720 maximum amount and didn't increase the 753 00:30:18,720 --> 00:30:20,799 assessment for a couple years and and in 754 00:30:20,799 --> 00:30:22,880 one instance because if you recall there 755 00:30:22,880 --> 00:30:26,159 was a CPI at over 10%. Well, they didn't 756 00:30:26,159 --> 00:30:28,080 go to the 10%. They said, "Okay, we're 757 00:30:28,080 --> 00:30:30,000 good for we're levy the same amount we 758 00:30:30,000 --> 00:30:31,360 did last year." And they did that for a 759 00:30:31,360 --> 00:30:32,799 couple years and then they just started 760 00:30:32,799 --> 00:30:34,720 in incrementally increasing just 761 00:30:34,720 --> 00:30:38,640 recently. So, you could every three to 762 00:30:38,640 --> 00:30:40,159 five years, I would recommend anytime 763 00:30:40,159 --> 00:30:41,679 you update your development impact fee, 764 00:30:41,679 --> 00:30:43,600 your general plan or what have you, that 765 00:30:43,600 --> 00:30:46,399 we would re-evaluate the public safety 766 00:30:46,399 --> 00:30:48,480 uh fiscal impact analysis, determine are 767 00:30:48,480 --> 00:30:50,399 you right size on new development for 768 00:30:50,399 --> 00:30:52,480 public safety services. And that can 769 00:30:52,480 --> 00:30:54,720 also factor into how how you're 770 00:30:54,720 --> 00:30:56,960 evaluating your annual levies for your 771 00:30:56,960 --> 00:31:00,159 existing CFD tax rates for public 772 00:31:00,159 --> 00:31:00,799 safety. 773 00:31:00,799 --> 00:31:02,630 >> Would this payment be part of the 774 00:31:02,630 --> 00:31:02,640 » Would this payment be part of the 775 00:31:02,640 --> 00:31:05,360 impound on the mortgages or is it a 776 00:31:05,360 --> 00:31:09,039 separate cash issuance? Like is just a 777 00:31:09,039 --> 00:31:10,559 bill that the the homeowner would pay or 778 00:31:10,559 --> 00:31:11,760 is it rolled into the mortgage? 779 00:31:11,760 --> 00:31:13,669 >> It's an it's a it's part of the property 780 00:31:13,669 --> 00:31:13,679 » It's an it's a it's part of the property 781 00:31:13,679 --> 00:31:15,679 tax bill. So, it's a completely separate 782 00:31:15,679 --> 00:31:18,480 line item, completely separate from any 783 00:31:18,480 --> 00:31:21,919 uh you know, property tax line items and 784 00:31:21,919 --> 00:31:24,960 not part it could be impounded just like 785 00:31:24,960 --> 00:31:26,720 their other property taxes, but it just 786 00:31:26,720 --> 00:31:28,240 funneled through the county like your 787 00:31:28,240 --> 00:31:29,120 other assessments. 788 00:31:29,120 --> 00:31:30,870 >> Okay. So, it would be possible to 789 00:31:30,870 --> 00:31:30,880 » Okay. So, it would be possible to 790 00:31:30,880 --> 00:31:32,399 include it in the impound with the other 791 00:31:32,399 --> 00:31:33,279 taxes that are 792 00:31:33,279 --> 00:31:34,630 >> it would be. Yeah, exactly. In fact, 793 00:31:34,630 --> 00:31:34,640 » it would be. Yeah, exactly. In fact, 794 00:31:34,640 --> 00:31:36,080 they would be if they're impounding, 795 00:31:36,080 --> 00:31:37,269 >> right? That's what I was suspecting. All 796 00:31:37,269 --> 00:31:37,279 » right? That's what I was suspecting. All 797 00:31:37,279 --> 00:31:39,360 right. Uh those are all my questions. 798 00:31:39,360 --> 00:31:40,720 Council members, any other questions 799 00:31:40,720 --> 00:31:43,440 before we move on? All right. Um, madame 800 00:31:43,440 --> 00:31:45,039 clerk, are there any requests to speak 801 00:31:45,039 --> 00:31:46,960 on this item or has any correspondence 802 00:31:46,960 --> 00:31:48,240 been received on this item? 803 00:31:48,240 --> 00:31:49,350 >> There are none. 804 00:31:49,350 --> 00:31:49,360 » There are none. 805 00:31:49,360 --> 00:31:51,669 >> All right. Um, so at this time is when 806 00:31:51,669 --> 00:31:51,679 » All right. Um, so at this time is when 807 00:31:51,679 --> 00:31:54,320 we get to discuss our feelings and 808 00:31:54,320 --> 00:31:56,559 thoughts on this stuff and analyze what 809 00:31:56,559 --> 00:31:58,799 we've just been told. So, uh, who would 810 00:31:58,799 --> 00:32:03,350 anybody like to chime in on it? 811 00:32:03,360 --> 00:32:04,240 » I'll start. 812 00:32:04,240 --> 00:32:05,190 >> Thank you. 813 00:32:05,190 --> 00:32:05,200 » Thank you. 814 00:32:05,200 --> 00:32:06,630 >> All eyes are on me here for a second 815 00:32:06,630 --> 00:32:06,640 » All eyes are on me here for a second 816 00:32:06,640 --> 00:32:06,960 here. 817 00:32:06,960 --> 00:32:08,789 >> Well, you're the you're the finance guy, 818 00:32:08,789 --> 00:32:08,799 » Well, you're the you're the finance guy, 819 00:32:08,799 --> 00:32:10,000 so that's why we're all looking your 820 00:32:10,000 --> 00:32:10,399 way. 821 00:32:10,399 --> 00:32:11,750 >> A couple things. Yeah. Yeah. I 822 00:32:11,750 --> 00:32:11,760 » A couple things. Yeah. Yeah. I 823 00:32:11,760 --> 00:32:14,880 understand, you know, public safety is, 824 00:32:14,880 --> 00:32:17,279 you know, our highest priority here and 825 00:32:17,279 --> 00:32:19,519 we want to continue to make that so and, 826 00:32:19,519 --> 00:32:21,360 you know, continue to be one of the 827 00:32:21,360 --> 00:32:25,279 safest, uh, cities in the state. Um, so 828 00:32:25,279 --> 00:32:26,559 I I I understand where we're going 829 00:32:26,559 --> 00:32:28,480 there. I just I'm a little conflicted, 830 00:32:28,480 --> 00:32:30,399 you know, 831 00:32:30,399 --> 00:32:32,720 um, you know, we're putting the burden 832 00:32:32,720 --> 00:32:34,320 on our new residents, but their new 833 00:32:34,320 --> 00:32:36,240 residents are the ones that are going to 834 00:32:36,240 --> 00:32:39,279 cause the increase. Um, you know, as we 835 00:32:39,279 --> 00:32:41,279 add these things, it keeps shooting up 836 00:32:41,279 --> 00:32:43,039 the price of homes. That's my that's one 837 00:32:43,039 --> 00:32:46,799 of my part I'm I'm concerned on, but uh 838 00:32:46,799 --> 00:32:48,399 for the greater good. I understand why 839 00:32:48,399 --> 00:32:51,840 we need to do it. Um, 840 00:32:51,840 --> 00:32:53,840 c can I ask you to that point, you were 841 00:32:53,840 --> 00:32:56,080 here in 2015 when this was discussed, 842 00:32:56,080 --> 00:32:59,840 right? You were on council in 2015, 843 00:32:59,840 --> 00:33:02,230 >> No, you weren't here then. 844 00:33:02,230 --> 00:33:02,240 » No, you weren't here then. 845 00:33:02,240 --> 00:33:03,269 >> I was 2018. 846 00:33:03,269 --> 00:33:03,279 » I was 2018. 847 00:33:03,279 --> 00:33:05,669 >> 2018. Okay. Then I'll ask him when 848 00:33:05,669 --> 00:33:05,679 » 2018. Okay. Then I'll ask him when 849 00:33:05,679 --> 00:33:07,120 you're done. I I was going to ask you, 850 00:33:07,120 --> 00:33:08,320 but 851 00:33:08,320 --> 00:33:11,669 >> I can make up something. 852 00:33:11,669 --> 00:33:11,679 » I can make up something. 853 00:33:11,679 --> 00:33:16,159 Um, so I, you know, and 854 00:33:16,159 --> 00:33:18,720 my concern is, you know, the greater of 855 00:33:18,720 --> 00:33:23,120 of CPI or 4%. You know, your your 856 00:33:23,120 --> 00:33:25,039 example was, well, it got to 10%, so 857 00:33:25,039 --> 00:33:26,720 they decided not to do that. But there's 858 00:33:26,720 --> 00:33:29,279 nothing saying that that a future 859 00:33:29,279 --> 00:33:31,120 council can't say hey we're going to do 860 00:33:31,120 --> 00:33:35,039 the whole 10% just you know irregardless 861 00:33:35,039 --> 00:33:37,840 of what you know well benefits the 862 00:33:37,840 --> 00:33:39,919 residents or not that that's that's my 863 00:33:39,919 --> 00:33:44,080 largest concern doing that and um and if 864 00:33:44,080 --> 00:33:46,799 there could be some mechanism in the in 865 00:33:46,799 --> 00:33:48,960 this to say what you know I know it'll 866 00:33:48,960 --> 00:33:51,600 be looked at annually and re-evaluated 867 00:33:51,600 --> 00:33:54,399 but some way that you know that after 868 00:33:54,399 --> 00:33:56,720 that each year it we need to be able to 869 00:33:56,720 --> 00:33:59,440 either reduce it, eliminate it or pause 870 00:33:59,440 --> 00:34:02,720 it or something like that and not just 871 00:34:02,720 --> 00:34:05,760 continue on. I mean, I think it 872 00:34:05,760 --> 00:34:07,360 shouldn't be left necessarily to the 873 00:34:07,360 --> 00:34:10,000 discretion of, you know, oh, we don't 874 00:34:10,000 --> 00:34:12,320 need 10% this year. I mean, that's a lot 875 00:34:12,320 --> 00:34:14,720 for some homeowners to see, you know, a 876 00:34:14,720 --> 00:34:17,200 10% increase in part of their property 877 00:34:17,200 --> 00:34:20,639 tax. So, I I'm I'm concerned about that. 878 00:34:20,639 --> 00:34:23,109 >> We we do have the option to include a 879 00:34:23,109 --> 00:34:23,119 » We we do have the option to include a 880 00:34:23,119 --> 00:34:26,320 cap if we would like to do that. We it's 881 00:34:26,320 --> 00:34:29,280 kind of not the default position because 882 00:34:29,280 --> 00:34:31,919 to protect the city in the event of 883 00:34:31,919 --> 00:34:35,599 sustained uh high CPI increases, but we 884 00:34:35,599 --> 00:34:39,359 could have it be 4% or CPI capped at 6% 885 00:34:39,359 --> 00:34:41,679 or 7%. I mean there we could establish a 886 00:34:41,679 --> 00:34:43,280 cap if we if the council would like to 887 00:34:43,280 --> 00:34:44,079 do that. 888 00:34:44,079 --> 00:34:46,149 >> You know, I just that's just my concern. 889 00:34:46,149 --> 00:34:46,159 » You know, I just that's just my concern. 890 00:34:46,159 --> 00:34:47,679 I'm think I'm putting myself in the 891 00:34:47,679 --> 00:34:49,359 shoes of of the new resident that comes 892 00:34:49,359 --> 00:34:51,760 in here after this has been approved and 893 00:34:51,760 --> 00:34:54,320 and implemented that, you know, here's 894 00:34:54,320 --> 00:34:57,040 just another line item on my tax bill 895 00:34:57,040 --> 00:34:59,359 and now I've been paying, you know, $500 896 00:34:59,359 --> 00:35:01,200 a month and all of a sudden there's a 897 00:35:01,200 --> 00:35:04,000 10, you know, 10% 10%, you know, 898 00:35:04,000 --> 00:35:06,079 inflation, all a sudden it jumps up. You 899 00:35:06,079 --> 00:35:09,040 know, that would, you know, I hate to be 900 00:35:09,040 --> 00:35:10,400 the city council that I get all those 901 00:35:10,400 --> 00:35:12,720 phone calls when that happens. So, that 902 00:35:12,720 --> 00:35:14,720 that's my concern. uh if you know some 903 00:35:14,720 --> 00:35:16,079 way we can address that. I don't know 904 00:35:16,079 --> 00:35:18,560 what the other council members uh their 905 00:35:18,560 --> 00:35:20,960 concerns or if that's a concern at all. 906 00:35:20,960 --> 00:35:23,359 But that's one thing I just other than 907 00:35:23,359 --> 00:35:26,560 that I understand I I support it. Um it 908 00:35:26,560 --> 00:35:29,119 certainly does not impact our existing 909 00:35:29,119 --> 00:35:32,480 residents at all. So it's a it's a 910 00:35:32,480 --> 00:35:33,920 benefit to those that are living here 911 00:35:33,920 --> 00:35:37,200 now and it was just it is a a minimum 912 00:35:37,200 --> 00:35:40,000 amount for the future residents that 913 00:35:40,000 --> 00:35:42,079 would give them the enjoy the public 914 00:35:42,079 --> 00:35:44,960 safety that we enjoy now. But but my 915 00:35:44,960 --> 00:35:47,760 concern is then you know if it's if it 916 00:35:47,760 --> 00:35:50,640 goes up to 11 12% you know here was you 917 00:35:50,640 --> 00:35:52,320 know here what LA just you a couple 918 00:35:52,320 --> 00:35:55,200 years ago was 9% inflation here in 919 00:35:55,200 --> 00:35:57,599 Inland Empire that's that's a hard pill 920 00:35:57,599 --> 00:35:58,960 to swallow when you're going to raise 921 00:35:58,960 --> 00:36:04,320 everyone's you know uh rate by that 922 00:36:04,320 --> 00:36:05,760 thank you council member Temple you're 923 00:36:05,760 --> 00:36:07,839 next up 924 00:36:07,839 --> 00:36:10,390 >> yeah if if you want I can add a little 925 00:36:10,390 --> 00:36:10,400 » yeah if if you want I can add a little 926 00:36:10,400 --> 00:36:12,320 bit of color to that if if you'd like. 927 00:36:12,320 --> 00:36:15,839 So that's great. Um you know 928 00:36:15,839 --> 00:36:18,000 it is it is a a decision that the 929 00:36:18,000 --> 00:36:20,960 council gets to make. Um I know working 930 00:36:20,960 --> 00:36:24,800 with city staff you know there is there 931 00:36:24,800 --> 00:36:27,359 was a reluctance even to increase that 932 00:36:27,359 --> 00:36:29,440 um on maintenance services which was 933 00:36:29,440 --> 00:36:31,760 acceptable. It was a greater of CPI or 934 00:36:31,760 --> 00:36:34,720 2% and we didn't go to the 10. So 935 00:36:34,720 --> 00:36:36,320 there's prudence that's exercised 936 00:36:36,320 --> 00:36:38,480 obviously but what that does is it just 937 00:36:38,480 --> 00:36:40,400 allows for that maximum to increase. 938 00:36:40,400 --> 00:36:42,000 doesn't mean that you levy that amount 939 00:36:42,000 --> 00:36:44,480 that maximum amount. So that's where you 940 00:36:44,480 --> 00:36:45,839 know even though the maximum could 941 00:36:45,839 --> 00:36:48,000 increase and as Travis mentioned you 942 00:36:48,000 --> 00:36:51,119 could have seven years in a row of 8% 943 00:36:51,119 --> 00:36:52,960 public safety cost increases and then 944 00:36:52,960 --> 00:36:55,359 how you you know you you can balance 945 00:36:55,359 --> 00:36:57,359 that right but even though the max goes 946 00:36:57,359 --> 00:36:59,680 up we're only increasing it by 4% each 947 00:36:59,680 --> 00:37:02,160 year so you still have the capacity to 948 00:37:02,160 --> 00:37:05,040 catch up in the future. So that's where 949 00:37:05,040 --> 00:37:06,480 you know you give have the give and take 950 00:37:06,480 --> 00:37:07,920 and then it becomes a decision of the 951 00:37:07,920 --> 00:37:09,839 council every year. 952 00:37:09,839 --> 00:37:11,910 >> There's be some analysis done each year 953 00:37:11,910 --> 00:37:11,920 » There's be some analysis done each year 954 00:37:11,920 --> 00:37:13,119 to saying you know here's what our 955 00:37:13,119 --> 00:37:16,720 anticipated public safety costs are over 956 00:37:16,720 --> 00:37:18,720 our baseline and this is how much 957 00:37:18,720 --> 00:37:21,280 revenue we anticipate. So therefore this 958 00:37:21,280 --> 00:37:23,280 is how much we should increase you 959 00:37:23,280 --> 00:37:26,800 whether we stay at 2% 4% or whatever uh 960 00:37:26,800 --> 00:37:29,359 to levy these taxes. I think that would 961 00:37:29,359 --> 00:37:31,440 to me give a lot of comfort knowing that 962 00:37:31,440 --> 00:37:34,240 we're just not doing it and you know, 963 00:37:34,240 --> 00:37:37,520 and storing money away, uh, but actually 964 00:37:37,520 --> 00:37:40,320 meeting the needs of the city without 965 00:37:40,320 --> 00:37:45,270 overcharging our residents. 966 00:37:45,280 --> 00:37:47,920 » Thank you, Council Member Temple. 967 00:37:47,920 --> 00:37:50,150 >> Yeah. Um, Shane or Travis. So, first of 968 00:37:50,150 --> 00:37:50,160 » Yeah. Um, Shane or Travis. So, first of 969 00:37:50,160 --> 00:37:52,560 all, um, 970 00:37:52,560 --> 00:37:54,079 where it does not increase the overall 971 00:37:54,079 --> 00:37:56,560 maximum property tax rate of 2%. We're 972 00:37:56,560 --> 00:37:58,640 just carving out a portion of that 2% 973 00:37:58,640 --> 00:38:01,040 instead of for the developers. We're 974 00:38:01,040 --> 00:38:03,680 taking that for this purpose. Correct. 975 00:38:03,680 --> 00:38:04,310 >> That's correct. 976 00:38:04,310 --> 00:38:04,320 » That's correct. 977 00:38:04,320 --> 00:38:07,510 >> Okay. Um, so I I actually really 978 00:38:07,510 --> 00:38:07,520 » Okay. Um, so I I actually really 979 00:38:07,520 --> 00:38:10,400 appreciate what Dean said. Um, you know, 980 00:38:10,400 --> 00:38:11,920 nothing's more permanent than a 981 00:38:11,920 --> 00:38:14,480 temporary tax. And you know, I don't 982 00:38:14,480 --> 00:38:16,880 want to be that city where we we vote 983 00:38:16,880 --> 00:38:19,839 for something that uh we hope one day we 984 00:38:19,839 --> 00:38:21,680 may either eliminate or lower or keep 985 00:38:21,680 --> 00:38:24,320 the same and and you know, we we come to 986 00:38:24,320 --> 00:38:26,160 accept the fact that we have this money 987 00:38:26,160 --> 00:38:27,920 and we keep using it and one day we'll 988 00:38:27,920 --> 00:38:29,359 ask for more. I don't I don't like that 989 00:38:29,359 --> 00:38:31,440 and I don't accept it. I do I do 990 00:38:31,440 --> 00:38:33,359 appreciate this very much and am in 991 00:38:33,359 --> 00:38:36,160 favor of it. Um, but I would I would 992 00:38:36,160 --> 00:38:42,320 appreciate um uh a regular reassessment 993 00:38:42,320 --> 00:38:44,160 to see where we fall, how we're spending 994 00:38:44,160 --> 00:38:47,359 the money, and you know, perhaps one day 995 00:38:47,359 --> 00:38:50,560 as uh as we get the uh the economic 996 00:38:50,560 --> 00:38:54,160 development corridors um producing and 997 00:38:54,160 --> 00:38:56,079 doing what they ought to do. This is 998 00:38:56,079 --> 00:38:57,359 something that we could either decrease 999 00:38:57,359 --> 00:38:59,359 or eliminate, but I am in favor of it as 1000 00:38:59,359 --> 00:39:02,560 as you've written it. Thank you. 1001 00:39:02,560 --> 00:39:03,910 >> Thank you. Council member uh Dietrich, 1002 00:39:03,910 --> 00:39:03,920 » Thank you. Council member uh Dietrich, 1003 00:39:03,920 --> 00:39:05,119 do you have any comment? 1004 00:39:05,119 --> 00:39:06,790 >> I would just reiterate that again, I 1005 00:39:06,790 --> 00:39:06,800 » I would just reiterate that again, I 1006 00:39:06,800 --> 00:39:08,160 think we all agree public safety is one 1007 00:39:08,160 --> 00:39:10,480 of our highest concerns. Um I appreciate 1008 00:39:10,480 --> 00:39:12,720 the fact that it's not increasing the 1009 00:39:12,720 --> 00:39:15,839 property tax bill. I mean, aside from 1010 00:39:15,839 --> 00:39:17,839 the potential future increases, which 1011 00:39:17,839 --> 00:39:19,440 would happen even if it was the other 1012 00:39:19,440 --> 00:39:21,920 bond, right? Not necessarily as high. 1013 00:39:21,920 --> 00:39:23,680 So, I am definitely in favor of this 1014 00:39:23,680 --> 00:39:26,320 because I think it serves a dual benefit 1015 00:39:26,320 --> 00:39:28,960 that front. Um, I do agree that I think 1016 00:39:28,960 --> 00:39:30,960 there should it should be we should be 1017 00:39:30,960 --> 00:39:32,880 the future city council should be 1018 00:39:32,880 --> 00:39:34,880 presented the data to make anal an 1019 00:39:34,880 --> 00:39:36,800 educated analysis as to how to deal with 1020 00:39:36,800 --> 00:39:39,119 it any potential future increases or 1021 00:39:39,119 --> 00:39:40,880 reductions, but I'm not necessarily in 1022 00:39:40,880 --> 00:39:42,880 favor of instituting a cap that might 1023 00:39:42,880 --> 00:39:44,960 hamstring them if they needed it for 1024 00:39:44,960 --> 00:39:46,400 that. 1025 00:39:46,400 --> 00:39:48,790 >> Yes. U my question was I was I was going 1026 00:39:48,790 --> 00:39:48,800 » Yes. U my question was I was I was going 1027 00:39:48,800 --> 00:39:50,880 to ask council but he wasn't here. Why 1028 00:39:50,880 --> 00:39:58,470 did they say no in 2015? 1029 00:39:58,480 --> 00:40:01,359 Um, they initially said yes and then 1030 00:40:01,359 --> 00:40:03,040 they didn't vote on the second reading 1031 00:40:03,040 --> 00:40:05,200 of the ordinance. So, it got 1032 00:40:05,200 --> 00:40:06,630 >> they didn't vote at all or they voted no 1033 00:40:06,630 --> 00:40:06,640 » they didn't vote at all or they voted no 1034 00:40:06,640 --> 00:40:07,359 at the second reading. 1035 00:40:07,359 --> 00:40:08,550 >> They didn't vote at all. They didn't get 1036 00:40:08,550 --> 00:40:08,560 » They didn't vote at all. They didn't get 1037 00:40:08,560 --> 00:40:10,160 a second on the second reading of the 1038 00:40:10,160 --> 00:40:11,520 ordinance. It got through the public 1039 00:40:11,520 --> 00:40:13,920 hearing favorable and went to the second 1040 00:40:13,920 --> 00:40:15,200 reading of the ordinance and didn't get 1041 00:40:15,200 --> 00:40:16,000 a second. 1042 00:40:16,000 --> 00:40:18,790 >> Do we know why? 1043 00:40:18,790 --> 00:40:18,800 » Do we know why? 1044 00:40:18,800 --> 00:40:21,750 >> Above my pay grade. 1045 00:40:21,750 --> 00:40:21,760 » Above my pay grade. 1046 00:40:21,760 --> 00:40:25,030 >> Fair enough. Um, 1047 00:40:25,030 --> 00:40:25,040 » Fair enough. Um, 1048 00:40:25,040 --> 00:40:26,560 I wasn't here at the time, but I 1049 00:40:26,560 --> 00:40:27,839 understand there was pressure from 1050 00:40:27,839 --> 00:40:29,599 developers 1051 00:40:29,599 --> 00:40:31,440 that that's what it would sound like to 1052 00:40:31,440 --> 00:40:34,240 me. Um, 1053 00:40:34,240 --> 00:40:36,640 so is it 1054 00:40:36,640 --> 00:40:41,200 is it possible to have a like a a a 1055 00:40:41,200 --> 00:40:43,599 reviewable cap? 1056 00:40:43,599 --> 00:40:45,280 I mean, nothing's nothing's permanent 1057 00:40:45,280 --> 00:40:46,960 here, right? So, anything can be 1058 00:40:46,960 --> 00:40:48,720 reviewable. 1059 00:40:48,720 --> 00:40:50,720 What What is the ask that's being made 1060 00:40:50,720 --> 00:40:52,720 of staff right now? what is the what is 1061 00:40:52,720 --> 00:40:56,960 the preferred ask from staff on this as 1062 00:40:56,960 --> 00:41:00,000 far as percentages go and then caps and 1063 00:41:00,000 --> 00:41:01,920 all that kind of stuff. 1064 00:41:01,920 --> 00:41:03,910 >> So so the way the process is going to 1065 00:41:03,910 --> 00:41:03,920 » So so the way the process is going to 1066 00:41:03,920 --> 00:41:06,400 work is we'll um we'll get that project 1067 00:41:06,400 --> 00:41:08,560 that'll come in and then we'll be uh 1068 00:41:08,560 --> 00:41:11,119 preparing a formation documents for the 1069 00:41:11,119 --> 00:41:13,359 council consideration 1070 00:41:13,359 --> 00:41:16,240 in that as like the other CFDs that have 1071 00:41:16,240 --> 00:41:18,000 been formed in the past. There will be a 1072 00:41:18,000 --> 00:41:19,920 resolution of attention on consent and 1073 00:41:19,920 --> 00:41:21,599 then there will be a public hearing. Um 1074 00:41:21,599 --> 00:41:23,119 the staff report is going to outline 1075 00:41:23,119 --> 00:41:25,920 exactly what's being proposed. Um in 1076 00:41:25,920 --> 00:41:28,160 that rate and method of portionment I'm 1077 00:41:28,160 --> 00:41:30,160 presuming will go under the standard 1078 00:41:30,160 --> 00:41:32,079 practice as other agencies are 1079 00:41:32,079 --> 00:41:34,079 implementing this public safety CFD 1080 00:41:34,079 --> 00:41:35,839 single family multi- family with the 1081 00:41:35,839 --> 00:41:38,240 rates and an escalator. That escalator 1082 00:41:38,240 --> 00:41:41,119 can be um up for discussion and if if 1083 00:41:41,119 --> 00:41:42,960 acceptable gets approved as part of the 1084 00:41:42,960 --> 00:41:46,640 formation. Now that tax rate would be 1085 00:41:46,640 --> 00:41:48,160 only implemented to those properties 1086 00:41:48,160 --> 00:41:50,880 that annex into that CFD 1087 00:41:50,880 --> 00:41:53,200 in the future in the event that you know 1088 00:41:53,200 --> 00:41:54,880 three years down and there's another 1089 00:41:54,880 --> 00:41:57,119 development impact fee update uh 1090 00:41:57,119 --> 00:41:59,119 analysis and we push push the 1091 00:41:59,119 --> 00:42:01,200 development out to 2050 we re 1092 00:42:01,200 --> 00:42:03,359 re-evaluate and if at that time we said 1093 00:42:03,359 --> 00:42:05,359 well you know we're doing really well on 1094 00:42:05,359 --> 00:42:07,440 our general fund and that we we think 1095 00:42:07,440 --> 00:42:10,000 that $425 is a better rate so then we 1096 00:42:10,000 --> 00:42:12,480 can reestablish a new tax CFD public 1097 00:42:12,480 --> 00:42:14,400 safety with that reduced rate on new 1098 00:42:14,400 --> 00:42:16,480 development. There's an adjustment from 1099 00:42:16,480 --> 00:42:19,280 switching to a new CFD at those moments. 1100 00:42:19,280 --> 00:42:22,960 But the other ultimate um application is 1101 00:42:22,960 --> 00:42:25,119 that whatever you set the tax rate 1102 00:42:25,119 --> 00:42:26,400 doesn't mean you're levy at the full 1103 00:42:26,400 --> 00:42:28,000 amount. So what we're talking about is 1104 00:42:28,000 --> 00:42:30,160 we're saying the 525 1105 00:42:30,160 --> 00:42:31,920 will escalate the maximum tax. And if 1106 00:42:31,920 --> 00:42:34,160 it's at 600, but you say we only still 1107 00:42:34,160 --> 00:42:37,280 need 525, we only levied 525, but you 1108 00:42:37,280 --> 00:42:39,119 have the ability in the future to go up 1109 00:42:39,119 --> 00:42:42,960 to 600. So we're really not hand you 1110 00:42:42,960 --> 00:42:46,319 know restricting the opportunity in the 1111 00:42:46,319 --> 00:42:47,920 future. We're just saying you have a 1112 00:42:47,920 --> 00:42:50,240 ceiling and then annually we'll review 1113 00:42:50,240 --> 00:42:52,960 what's what the amount should be levied 1114 00:42:52,960 --> 00:42:54,960 and make that decision present it to 1115 00:42:54,960 --> 00:42:55,920 council for approval. 1116 00:42:55,920 --> 00:42:58,150 >> I maybe my question wasn't clear because 1117 00:42:58,150 --> 00:42:58,160 » I maybe my question wasn't clear because 1118 00:42:58,160 --> 00:42:59,839 your answer to me wasn't clear and 1119 00:42:59,839 --> 00:43:01,359 either I'm not getting it or I'm not 1120 00:43:01,359 --> 00:43:04,560 asking it right. So, if the staff were 1121 00:43:04,560 --> 00:43:06,720 to present us with a proposed ordinance 1122 00:43:06,720 --> 00:43:09,040 right now, what is the language in there 1123 00:43:09,040 --> 00:43:12,160 that staff is looking for? It says 525 1124 00:43:12,160 --> 00:43:14,800 per single family unit, 411 per unit, 1125 00:43:14,800 --> 00:43:17,680 and it says subject to annual escalator 1126 00:43:17,680 --> 00:43:20,160 greater of CPI or 4%. Is that the 1127 00:43:20,160 --> 00:43:22,640 language that staff is asking for or is 1128 00:43:22,640 --> 00:43:25,040 that one of several ideas that are being 1129 00:43:25,040 --> 00:43:26,480 presented to us 1130 00:43:26,480 --> 00:43:29,510 >> for council for for recommendation to 1131 00:43:29,510 --> 00:43:29,520 » for council for for recommendation to 1132 00:43:29,520 --> 00:43:31,680 come back? 1133 00:43:31,680 --> 00:43:34,000 I I right now it's proposed to include 1134 00:43:34,000 --> 00:43:36,720 uh CPI or 4% unless council directs 1135 00:43:36,720 --> 00:43:37,200 differently. 1136 00:43:37,200 --> 00:43:40,069 >> Okay. So that's the ask is these amounts 1137 00:43:40,069 --> 00:43:40,079 » Okay. So that's the ask is these amounts 1138 00:43:40,079 --> 00:43:41,920 increase at a rate of the greater of CPI 1139 00:43:41,920 --> 00:43:43,200 or 4%. 1140 00:43:43,200 --> 00:43:44,870 >> That's that's what would be proposed. 1141 00:43:44,870 --> 00:43:44,880 » That's that's what would be proposed. 1142 00:43:44,880 --> 00:43:46,150 >> Okay. That's what I want to make. I want 1143 00:43:46,150 --> 00:43:46,160 » Okay. That's what I want to make. I want 1144 00:43:46,160 --> 00:43:48,480 to make sure what it is that we're we're 1145 00:43:48,480 --> 00:43:50,319 either adjusting or looking at or 1146 00:43:50,319 --> 00:43:51,280 reviewing. 1147 00:43:51,280 --> 00:43:52,950 >> Um go ahead. And if I could just 1148 00:43:52,950 --> 00:43:52,960 » Um go ahead. And if I could just 1149 00:43:52,960 --> 00:43:55,200 clarify, you know, when the CFD is set 1150 00:43:55,200 --> 00:43:56,640 up, there's a document called the rate 1151 00:43:56,640 --> 00:43:58,480 and method of aortionment. And that's 1152 00:43:58,480 --> 00:44:00,400 where you establish these parameters, 1153 00:44:00,400 --> 00:44:02,480 and that's a one-time thing that's 1154 00:44:02,480 --> 00:44:05,760 adopted when the CFD is formed. And as 1155 00:44:05,760 --> 00:44:07,440 Shane has talked about, you have this 1156 00:44:07,440 --> 00:44:10,640 annual escalator. And every year when 1157 00:44:10,640 --> 00:44:13,599 you want to levy the amount for that CFD 1158 00:44:13,599 --> 00:44:15,359 for that year, you come back to the 1159 00:44:15,359 --> 00:44:17,920 council, you adopt the levy for that 1160 00:44:17,920 --> 00:44:19,440 year. And that's where you have the 1161 00:44:19,440 --> 00:44:21,440 option to go. Well, under the rate 1162 00:44:21,440 --> 00:44:23,599 method of aortionment, it says we could 1163 00:44:23,599 --> 00:44:26,640 our maximum rate is this, but we think 1164 00:44:26,640 --> 00:44:28,319 we're good at this level. We want to 1165 00:44:28,319 --> 00:44:30,800 keep it the same. And so, it's sort of 1166 00:44:30,800 --> 00:44:33,280 kind of concrete when you adopt the rate 1167 00:44:33,280 --> 00:44:36,000 method of aortionment, but your annual 1168 00:44:36,000 --> 00:44:39,040 levy each year can be modified as long 1169 00:44:39,040 --> 00:44:41,839 as it's below the maximum rate because 1170 00:44:41,839 --> 00:44:44,880 the RMA establishes the maximum rate for 1171 00:44:44,880 --> 00:44:46,240 each year going out into the 1172 00:44:46,240 --> 00:44:54,069 >> So, what did Moretta do as an escalator? 1173 00:44:54,079 --> 00:44:57,200 believe they did the same uh 4% 1174 00:44:57,200 --> 00:44:58,150 >> CPI or 4% 1175 00:44:58,150 --> 00:44:58,160 » CPI or 4% 1176 00:44:58,160 --> 00:44:59,190 >> CPI or 4%. 1177 00:44:59,190 --> 00:44:59,200 » CPI or 4%. 1178 00:44:59,200 --> 00:45:00,870 >> All right. Uh Council Dinus, you have a 1179 00:45:00,870 --> 00:45:00,880 » All right. Uh Council Dinus, you have a 1180 00:45:00,880 --> 00:45:01,359 question. 1181 00:45:01,359 --> 00:45:04,309 >> I I know Travis kind of answered it, but 1182 00:45:04,309 --> 00:45:04,319 » I I know Travis kind of answered it, but 1183 00:45:04,319 --> 00:45:07,280 I'll I'm digging back into my archive 1184 00:45:07,280 --> 00:45:09,920 memory here of CFDs. Usually when you 1185 00:45:09,920 --> 00:45:13,280 issue bonds that and Shane does the all 1186 00:45:13,280 --> 00:45:15,760 his calc runs his magic and calculates 1187 00:45:15,760 --> 00:45:18,480 everything for the annual the the 1188 00:45:18,480 --> 00:45:20,640 payments of it for the to put on special 1189 00:45:20,640 --> 00:45:23,520 tax roles that you take what the what 1190 00:45:23,520 --> 00:45:25,920 the debt service is and what kind of and 1191 00:45:25,920 --> 00:45:28,079 how much you collect 1192 00:45:28,079 --> 00:45:31,119 from the property owners 1193 00:45:31,119 --> 00:45:34,880 that um to meet that to meet that debt 1194 00:45:34,880 --> 00:45:37,760 service payment. It's only if you only 1195 00:45:37,760 --> 00:45:39,040 if you lack 1196 00:45:39,040 --> 00:45:41,680 If you're the levy is insufficient to 1197 00:45:41,680 --> 00:45:43,520 you, then you increase the go to the 1198 00:45:43,520 --> 00:45:46,240 special tax and increase that amount to 1199 00:45:46,240 --> 00:45:48,720 pay for the debt service. So, it sounds 1200 00:45:48,720 --> 00:45:50,160 like this is kind of what we're going to 1201 00:45:50,160 --> 00:45:52,160 do with this 1202 00:45:52,160 --> 00:45:56,000 CFD is you look at what the costs are. 1203 00:45:56,000 --> 00:45:58,640 you know, while you get the $525 on 1204 00:45:58,640 --> 00:46:00,400 whatever percent that is. And then if 1205 00:46:00,400 --> 00:46:02,400 it's not enough to cover the difference, 1206 00:46:02,400 --> 00:46:05,280 then you'll have to go above the 4% or 1207 00:46:05,280 --> 00:46:08,319 start approaching the the CPI then to to 1208 00:46:08,319 --> 00:46:10,560 to make sure you get levy enough to pay 1209 00:46:10,560 --> 00:46:15,440 for the the public service uh difference 1210 00:46:15,440 --> 00:46:18,000 that we need have. I mean, I don't make 1211 00:46:18,000 --> 00:46:21,040 it makes sense to me a lot, but 1212 00:46:21,040 --> 00:46:22,870 >> Well, from my standpoint, did did you 1213 00:46:22,870 --> 00:46:22,880 » Well, from my standpoint, did did you 1214 00:46:22,880 --> 00:46:23,839 want to respond to that or was there 1215 00:46:23,839 --> 00:46:24,319 anything that 1216 00:46:24,319 --> 00:46:27,349 >> I I I'm sorry. I had to look I clarify 1217 00:46:27,349 --> 00:46:27,359 » I I I'm sorry. I had to look I clarify 1218 00:46:27,359 --> 00:46:29,440 Marriott is at a flat 4%. 1219 00:46:29,440 --> 00:46:30,950 >> So they didn't do the CPI. They went 1220 00:46:30,950 --> 00:46:30,960 » So they didn't do the CPI. They went 1221 00:46:30,960 --> 00:46:31,680 flat 4%. 1222 00:46:31,680 --> 00:46:32,470 >> Flat 4%. 1223 00:46:32,470 --> 00:46:32,480 » Flat 4%. 1224 00:46:32,480 --> 00:46:35,190 >> Yeah, that's 1225 00:46:35,190 --> 00:46:35,200 » Yeah, that's 1226 00:46:35,200 --> 00:46:36,710 >> that's kind of what I was thinking as 1227 00:46:36,710 --> 00:46:36,720 » that's kind of what I was thinking as 1228 00:46:36,720 --> 00:46:38,319 well. You know, I something you said 1229 00:46:38,319 --> 00:46:39,839 resonated with me that, you know, we 1230 00:46:39,839 --> 00:46:41,280 don't want to impose a new tax on the 1231 00:46:41,280 --> 00:46:42,960 residents, but the new residents are 1232 00:46:42,960 --> 00:46:44,640 causing us an increase in the services. 1233 00:46:44,640 --> 00:46:47,359 I mean, we can't provide if we if we go 1234 00:46:47,359 --> 00:46:50,480 to 175,000 people without affording the 1235 00:46:50,480 --> 00:46:53,359 cost of it. we would have to hold off on 1236 00:46:53,359 --> 00:46:54,880 that development until economic 1237 00:46:54,880 --> 00:46:56,880 development catches up, but economic 1238 00:46:56,880 --> 00:46:58,160 development won't come in unless the 1239 00:46:58,160 --> 00:47:00,800 rooftops are there. So, it's kind of a 1240 00:47:00,800 --> 00:47:03,030 >> states, 1241 00:47:03,030 --> 00:47:03,040 » states, 1242 00:47:03,040 --> 00:47:05,510 >> right? We need more housing. So, um it 1243 00:47:05,510 --> 00:47:05,520 » right? We need more housing. So, um it 1244 00:47:05,520 --> 00:47:07,359 would seem like the the the new 1245 00:47:07,359 --> 00:47:09,359 development drives the need for more 1246 00:47:09,359 --> 00:47:10,960 public safety. We're going to need more 1247 00:47:10,960 --> 00:47:12,480 fire coverage. We're going to need all 1248 00:47:12,480 --> 00:47:13,440 those kinds of all those people with 1249 00:47:13,440 --> 00:47:14,800 pets, animal control, that kind of 1250 00:47:14,800 --> 00:47:18,640 thing. Um I do get scared about CPI as 1251 00:47:18,640 --> 00:47:23,599 well. would I would be inclined to to 1252 00:47:23,599 --> 00:47:26,800 implement this with a straight 4% like 1253 00:47:26,800 --> 00:47:29,119 mya did. I when I was thinking the 1254 00:47:29,119 --> 00:47:30,560 reason I asked I was I was thinking in 1255 00:47:30,560 --> 00:47:31,599 my head I want to make sure that I 1256 00:47:31,599 --> 00:47:32,960 wasn't being completely way off base 1257 00:47:32,960 --> 00:47:35,359 financially. Um I can't believe Lorie 1258 00:47:35,359 --> 00:47:38,480 Stone voted for this that had to have 1259 00:47:38,480 --> 00:47:41,920 gone 4-1 that way. No, it went 5. Crazy. 1260 00:47:41,920 --> 00:47:43,680 Um, 1261 00:47:43,680 --> 00:47:47,359 but I would like some sort of language 1262 00:47:47,359 --> 00:47:50,960 in it that makes it a prominent question 1263 00:47:50,960 --> 00:47:54,720 each time the budget comes in. Like just 1264 00:47:54,720 --> 00:47:56,560 it because this seems like the type of 1265 00:47:56,560 --> 00:47:57,839 thing that I would I wouldn't want 1266 00:47:57,839 --> 00:48:00,240 future city council members to just roll 1267 00:48:00,240 --> 00:48:02,560 it into the big giant stack of stuff to 1268 00:48:02,560 --> 00:48:04,560 consider. I would I wouldn't want at 1269 00:48:04,560 --> 00:48:06,160 least for the time being for people to 1270 00:48:06,160 --> 00:48:08,720 look at it individually and just go, "Oh 1271 00:48:08,720 --> 00:48:09,760 yeah, that's right. We're going to look 1272 00:48:09,760 --> 00:48:11,200 at this each time to see if we need to 1273 00:48:11,200 --> 00:48:12,880 keep doing it or not. 1274 00:48:12,880 --> 00:48:16,230 >> Well, I I mean, if you increase the the 1275 00:48:16,230 --> 00:48:16,240 » Well, I I mean, if you increase the the 1276 00:48:16,240 --> 00:48:18,400 rate over 4% 1277 00:48:18,400 --> 00:48:20,560 because CPI is higher, I think it the 1278 00:48:20,560 --> 00:48:23,200 way to help to ensure that the council 1279 00:48:23,200 --> 00:48:24,720 understands that it has to come back for 1280 00:48:24,720 --> 00:48:26,559 approval from the council before they 1281 00:48:26,559 --> 00:48:29,280 they make that increased. 1282 00:48:29,280 --> 00:48:31,349 >> You do have to go to council each year 1283 00:48:31,349 --> 00:48:31,359 » You do have to go to council each year 1284 00:48:31,359 --> 00:48:33,359 to have the council approved the levy 1285 00:48:33,359 --> 00:48:35,200 that we send to the county. So it could 1286 00:48:35,200 --> 00:48:38,720 be a part of that report when you adopt 1287 00:48:38,720 --> 00:48:40,960 that levy that there's an analysis that 1288 00:48:40,960 --> 00:48:42,880 that fee is justified and within the 1289 00:48:42,880 --> 00:48:44,319 maximum parameters. 1290 00:48:44,319 --> 00:48:45,109 >> Yeah. 1291 00:48:45,109 --> 00:48:45,119 » Yeah. 1292 00:48:45,119 --> 00:48:47,349 >> Okay, that makes sense. Um, do we have 1293 00:48:47,349 --> 00:48:47,359 » Okay, that makes sense. Um, do we have 1294 00:48:47,359 --> 00:48:48,960 any other questions or comments from 1295 00:48:48,960 --> 00:48:52,240 from council? Um, do you need a vote 1296 00:48:52,240 --> 00:48:54,240 from us or do we is there direction? It 1297 00:48:54,240 --> 00:48:55,839 seems like we're all in consensus here. 1298 00:48:55,839 --> 00:48:57,760 It seems like a pretty clear message. 1299 00:48:57,760 --> 00:48:59,109 >> Yeah, I think it's planning clear, 1300 00:48:59,109 --> 00:48:59,119 » Yeah, I think it's planning clear, 1301 00:48:59,119 --> 00:48:59,760 mayor. 1302 00:48:59,760 --> 00:49:02,790 >> Okay, then I think we've got it. Well 1303 00:49:02,790 --> 00:49:02,800 » Okay, then I think we've got it. Well 1304 00:49:02,800 --> 00:49:04,160 done. Thank you, gentlemen. Appreciate 1305 00:49:04,160 --> 00:49:06,559 it. Um well with that that was the only 1306 00:49:06,559 --> 00:49:08,640 thing on our special agenda item. So at 1307 00:49:08,640 --> 00:49:13,079 4:47 we are adjourned.