Finance Committee Agenda and Packet 2016 08 15

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City Council Finance Committee Meeting Minutes 07/18/16 Page 3 of 6 Finance Committee Member Maloney restated his concern with some of the assumptions used in the model and questioned whether it is prudent to rely solely on the output of the model when evaluating land use decisions. Member Maloney stated his opinion that the Fiscal Impact Model is just one approach of many that should be considered, and his concern that the public, the press, and other City committees rely solely on the use and outcomes of the Model. Director Zuccaro stated that further efforts need to be made to educate City Council Members and other City committee members interested in the process, on using the Model and running scenarios through one-on-one training. Member Maloney stated that the revenue and expense information currently being utilized in the Fiscal Impact Model is for different years and is not auditable. Further, Member Maloney questioned the use of average costs over marginal costs for housing revenue and whether those values were inflated. Member Stolzmann discussed changing the methodology to one based on land use instead of housing and population data, stating that office worker impact and spending is not effectively being captured and incorporated in the existing Fiscal Impact Model. Ms. Stolzmann stated that she would like to see additional assumptions added and that the final Model needs to be sound and instill the confidence of the public in the process. Mr. Carson Bise joined the conversation by phone and stated his concern in changing the Fiscal Impact Model to a land use methodology and to include an assumption of office worker spending. Mr. Bise stated that sales tax revenue would need to be redone and established for each land use. Further that there is no statistical basis for such data and that too many factors would be needed to prevent "double counting". Mr. Bise stated that they were not engaged to perform a market study which information is typically needed for such a change. The Finance Committee Members and staff discussed the land use approach and what factors could be used to determine office workers that are also residents and how outside or pass-through spending could be factored. Members also discussed using national average assumptions and data as well as income level based spending and property values. Finance Director Watson stated that previous average costs estimates of office worker spending were obtained from the ISCS Publication. Mr. Carson Bise stated that additional assumptions or data could be obtained from the latest publication and added to the Fiscal Impact Model for the Finance Committee and staff to review. 4