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City Council Finance Committee <br />Meeting Minutes <br />09/11/18 <br />Page 4 of 7 <br />they are presented to City Council for approval. City Manager Balser stated the <br />BAP agreements also discuss revenue possibilities and should not just be seen as <br />a rebate expense. <br />Finance Committee Chairperson Maloney asked how the calculation of building <br />fees is impacted by a BAP approved by Council, stating that there may need to be <br />a policy to articulate which funds will be tapped to backfill the revenue. Director <br />DeJong stated that Planning Director Zuccaro collects 100% of the building fees <br />upfront, and that any BAP rebate is provided after all the fees have been paid. The <br />fees when collected are allocated across various funds. Finance Committee <br />Member Lipton stated that the rebates distort the pricing of the service and the <br />process is not transparent. Mayor Muckle stated that he wants a policy that would <br />make clear that any revenue paid to satisfy a BAP is not a fee rebate. <br />Member Lipton stated that he struggles with offering incentives, noting that sales <br />tax rebates are okay. Member Lipton stated he is opposed to subsidizing property <br />owners or landlords to fill empty spaces. Member Lipton stated that these owners <br />can offer rent reductions or other concessions to their tenants. Member Lipton <br />stated that BAP incentives are a tool that are only appropriate when a business <br />cycle is low, and should not be used all the time. Finance Committee Member <br />Lipton stated that the City needs to establish an incentives account that would <br />come out of the General Fund. Member Lipton stated that he wants the BAP's to <br />compete with other General Fund needs. <br />Chairperson Maloney stated that other benefits a BAP may offer to the City can <br />sometimes outweigh the current business climate. Director DeJong stated that <br />vacant spaces are always the most nagging issue. Director DeJong continued that <br />the City of Lafayette's BAP program operates in the same manner, but that the <br />City of Boulder annually appropriates a certain dollar amount from their General <br />Fund. Director DeJong stated his concern that, if in addition to reviewing the <br />criteria and qualifications of a project, he has to then contemplate whether or not <br />there is funding, it could force choosing one project over another and be seen as <br />preferential to applicants of the BAP program. <br />City Manager Balser stated that staff can review the trends and recommend an <br />annual amount to fund the BAP program. Director DeJong stated that setting limit <br />will create extra steps. Director Watson stated that needs in excess of the amount <br />appropriated in an incentives account would require a budget amendment and <br />public hearing. Finance Director Watson stated that using a contra -revenue <br />account is a compromise between budgeting an expenditure account and netting <br />against a revenue account. <br />Finance Committee Chairperson Maloney stated that the City needs to rethink how <br />the BAP program is structured and that he would be in favor of having the City <br />Manager authorize BAP agreements. Finance Committee Member Lipton stated <br />his agreement with the City Manager's Office approving BAP's up to $100K, with <br />5 <br />