Finance Committee Agenda and Packet 2023 08 17

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City Council Finance Committee Meeting Minutes June 15, 2023 Page 3 of 4 There was a discussion around how to estimate the right utility rates to charge enough to provide services and complete needed projects without charging too much. There was also a discussion around the historical rate increases and why there were 0% years during Covid and the Marshall Fire in an effort to try to provide relief for residents. Councilmember Hamlington noted that the City needs consider the user's entire, comprehensive, experience with service changes such as the waste service RFP and utility rate increases and how to best prepare residents for these changes. She noted that steady increases over time might be more manageable than more erratic changes for residents. Councilmember Hoefner noted that the City needs to be sensitive about this real price increase and get messaging right and reminded the committee that, if we had a serious water system problem, it would raise a lot of concerns from residents. Questions from the Public: None. Open Space and Parks Sales and Use Tax Extension Update: The Director of Parks, Recreation and Open Space presented the draft Finance Committee Communication which will be presented at the June 20 Council meeting. The City is taking the Task Force recommendations and will be requesting an increase to the sales tax rates to support Parks, Recreation and Open Space. According to the polling results, there is a strong desire for the public to establish an acquisition reserve as part of this process which will eventually come to the Finance committee. There was a lot of discussion about calling out the 50% split between Parks and Open Space departments in receiving the revenues. It was determined that including this information would make the ballot language more confusing. Questions from the Committee: Chair Dickinson noted that it sounds like the process has gone smoothly with the Task Force and polling process and there is a united front without an opposition to the concept of the PROS Tax Extension. Questions from the Public: None. Marshall Fire Update: The Director of Finance presented the June Marshall Fire update. A Comprehensive report will be provided at the June 20 Council meeting. Questions from the Committee: Councilmember Hoefner asked what the basis for denial of park and median costs was. It was noted that FEMA generally covers losses to the built environment. Councilmember Hamlington asked how much of the estimated unrecoverable losses was already part of the long-term plan to replace end of life equipment that was damaged in the fire. Staff noted that just because something was on a schedule to be repaired/replaced, the fire accelerated the need for repairs which caused other projects to be delayed. There isn't currently quantified data to address this question. Questions from the Public: None. 5/57