Finance Committee Agenda and Packet 2019 07 19

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City Council Finance Committee Meeting Minutes 06/07/19 Page 2 of 6 None. BUSINESS ASSISTANCE PROGRAM Economic Development Director Aaron DeJong presented to the Finance Committee a review and analysis of the City's Business Assistance Program (BAP). Finance Committee Chairperson Maloney asked how the BAP rebates for building permit fees are funded. Director Watson stated that they come out of the General Fund reserves. Finance Committee Member Lipton stated that a municipal code change is necessary to provide transparency, and to identify that the source of building permit fee rebates is from the General Fund. Member Lipton stated his concern over the perception that other contractors pulling permits are subsidizing those who obtain a BAP rebate of permit fees. Chairperson Maloney stated the rebate portions should be taken out when permit fees are calculated. Staff indicated that this matter has been addressed and resolved. Mayor Muckle suggested a statement in the policy which identifies that other builders are not paying for the program rebates. Finance Committee Members discussed the job and sales tax revenue creation statistics provided. Director DeJong stated that the BAP program incentives equate to a cost of $366 per new job, per year. Finance Committee Members and staff discussed possible changes for the BAP program which could streamline the approval of certain projects without City Council approval. A preliminary redline of Chapter 3.24 Tax and Fee Business Assistance Program was presented to the Finance Committee by Director DeJong for discussion. Finance Committee Chairperson Maloney stated that the rules set forth in the Code are there for good reason and remove judgement by the City Manager's Office and City Council. Chairperson Maloney stated that he would be in favor of providing some flexibility to the City Manager that would allow for quicker action and avoid missed opportunities. Mayor Muckle stated that keeping the approval of BAP agreements with City Council protects staff and eliminates claims of staff being too subjective by providing a public venue in which these agreements are discussed.