Finance Committee Agenda and Packet 2019 05 17

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City Council Finance Committee Meeting Minutes 04/22/19 Page 3 of 8 Finance Committee Member Lipton asked Director Watson if the interest income from investments is forecasted. Director Watson confirmed that the long-term financial plan is updated quarterly based on the data received from Chandler. The reports and corresponding narrative can be located in the packet of the April 22, 2019 Finance Committee Meeting. EXCISE TAX FOR MARIJUANA CULTIVATION City Attorney Kathleen Kelly presented ballot language options drafted for proposed marijuana excise taxes to the Finance Committee. Ms. Kelly stated that the drafts contain different revenue spending options and both long form and short form de-Brucing language. Ms. Kelly also stated that the question of whether or not marijuana cultivation should be allowed, can be referred to voters or City Council could decide. Mayor Muckle stated he would want the matter referred to voters. Attorney Kelly stated that she would draft an ordinance referring the matter to voters. City Manager Balser stated that she looked back over the excise tax ballot questions, and that she likes Breckenridge's question. Ms. Balser stated that it offers a tax rate range between 5-10%, and that the use of funds is broad. Manager Balser stated she is hesitant about starting or having to fund new programs. Finance Committee Chairperson Maloney asked Attorney Kelly about the difference between the long form and short form de-Brucing language. Ms. Kelly stated that legally, they are the same, but strategies could be employed as to the length of the ballot questions. Chairperson Maloney stated that he was not in favor of language that would create new programs. Finance Director Kevin Watson stated he would prefer no voter restrictions, but rather for City Council allocate funds annually by Resolution. Director Watson provided an example of Highway User revenue which is restricted but still placed in the General Fund. Finance Committee Members and staff determined the issue of whether or not to create a separate fund can be determined later, noting there would be challenges in the allocation of expenses. Finance Committee Chairperson Maloney stated that he liked draft question #2, which includes the tax rate range and utilizes the short form de-Brucing language. Mayor Muckle agreed. Finance Committee Members and staff discussed the phrasing for the use of the revenue in Draft #2. City Manager Balser stated her preference of for the language to read for "enforcement, administration and regulation". Finance Committee Member Lipton stated he does not like the use of "and other general purposes of the City", stating there needs to be better transparency. Member Lipton stated that he would like there to be a separate fund, 4