REVENUE DISCUSSION FOLLOW UP DIRECTION AGENDA ITEM 12

REVENUE DISCUSSION FOLLOW UP & DIRECTION AGENDA ITEM 12. 1 CITY COUNCIL MEETING APRIL 20, 2016

CITY FUNDING/REVENUE STRUCTURE BY GENERAL FUND DEPARTMENT CFD*, CSA*, LLMD*, DIF* -ADMINISTRATION & GEN SUPPLIES & OVERHEAD -BUILDING & SAFETY -CITY CLERK -CODE ENFORCEMENT -COMMUNITY SERVICES (ADMIN) COMMUNITY SERVICES PROGRAMMING, CIP, STAFFING, OPERATIONS & MAINTENANCE, LIGHTING & LANDSCAPING GAS TAX*, MEAS. A*, CFD*, LLMD*, DIF* PUBLIC WORKS -ECONOMIC STREET REPAIR & MAINTENANCE, DEVELOPMENT ROW IMPROVEMENTS, PROJECTS, CIP, STAFFING, OPS. & MAINT. , -ENGINEERING STREET SWEEPING -FINANCE DEVELOPMENT FEES -PLANNING BUILDING & INSPECTION ENGINEERING & INSPECTION PLANNING & COMMISSION *FUNDS CANNOT BE USED FOR POLICE OR FIRE PERSONNEL/CONTRACT COSTS

REVENUE DISCUSSION FOLLOW UP & ON APRIL 6, 2016, THE CITY COUNCIL WAS PRESENTED DIRECTION INFORMATION REGARDING CITY’S GENERAL FUND REVENUE GENERATING POSITION VS EXPENDITURES OVER THE NEXT 5 YEARS: (7) MAJOR EXPENDITURE GF ASSUMPTIONS (12) MAJOR REVENUE GF ASSUMPTIONS: NO VLF = $4. 4 M/YR (16/17*); $4. 5 M (17/18)** *88, 000 POP; **90, 000 POP X $50 POLICE SERVICES + @ 5 – 7 1/2%/YR ($11. 4 M) 19% + OVER THE PAST 3 YEARS ALONE … (NO ADDITIONAL OFFICERS) FIRE SERVICES + @ 5% PER YEAR ($8. 3 M) COUNTY 2 -YR PROPOSAL FY 16/17 ($9. 46 M) & FY 17/18 ($9. 975) (NO ADDITIONAL FIREFIGHTERS) NEW HOME PRICES 3% +/YR ($372, 000) ASSESSED VALUE + 1. 5% EACH YEAR 500 NEW HOMES/YR 2. 9 PERSONS P/SF DU SALES TAX REVENUE INCREASE 8%/YR ALL NEW STAFFING MOVED FROM GF OR REDUCED/COMBINED POSITIONS TO SAVE $ FRANCHISE FEES INCREASE 4%/YR BLDG PERMITS: $4, 200/HOME; $1. 3 M COM PLAN CHECK REVIEWS $2. 5 M/YR ENGINEERING, PLAN CHECK $1. 5 M/YR TOT + 8%/YR ALL OTHER GF REVENUES + 5. 0%/YR COUNTY AUGMENTATION: $1. 0 M/YR (SUNSETS IN FY 2018). NO GF + IN STAFFING NO + CITY SERVICES 3 YR (CODE) EMPLOYER’S PERS RATE + @ 1% PER YEAR. CURRENT RATE OF 11. 99%, FY 2016/17 @12. 7%. ELIGIBLE EMPLOYEES RECEIVE NORMAL 5% STEP UNTIL TOP STEP ~NO COST OF LIVING ADJUSTMENTS (COLA) TO EMPLOYEES IN CITY’S HISTORY ~WILL ATTEMPT TO + SALARY SCHEDULE W/CC STUDY 2016 NO NEW CAPITAL EQUIPMENT FROM THE GENERAL FUND – DIF FUNDED TOTAL GF EXPENDITURES INCREASING 5. 5%/YR

AG GR FINANCIAL FORECAST $20 EG A MIL TE DE FIC LION IT 5 YEAR PROJECTIONS A e k a y. T *Ke -$5, 754, 506 way Annual Gap -$2, 699, 996 -$2, 145, 695 $36. 3 MILLION $34. 4 MILLION $30. 5 MILLION $29. 6 MILLION Current Year County Augmentation Sunsets * STATUS QUO=NO INCREASE IN STAFF/PUBLIC SAFETY OR SERVICES • • SLOW GROWING REVENUES {PROPERTY TAXES (3%), SALES TAXES (8%), MISC REVENUE (5%)} • NO NEW REVENUE GROWTH BASE

REVENUE DISCUSSION FOLLOW UP & DIRECTION SOURCES REVENUE MENIFEE DOES NOT RECEIVE NO VEHICLEOF LICENSE FEE (VLF) REVENUE – NOW $4, 269, 250* & RISING. 482 CA MUNICIPALITIES & ONLY MENIFEE, WILDOMAR, EASTVALE & … JURUPA VALLEY ARE EXCLUDED FROM THESE FUNDS *FY 2015/2016 (BASED ON $50 PER/CAPITA ON POPULATION OF 85, 385) NO CFD PUBLIC SAFETY REVENUE – THE FOLLOWING LOCAL CITIES HAVE CREATED CFD’S FOR PUBLIC SAFETY ON NEW HOUSING DEVELOPMENTS: ✦ ✦ ✦ PERRIS (2) (2001 -3, $317/$63 P/DU); **LAKE ELSINORE (2) (2003 -1, $373/$186 P/DU); (2007 -1, $477/$238 P/DU); WILDOMAR (1) (2013 -1, $244/$173 P/DU); SAN JACINTO (1) (2003 -1, $473/$354 P/DU); PALM SPRINGS (1) (2005 -1, $357/$300 P/DU); DESERT HOT SPRINGS (1) (PTAX-2, $277/$155 P/DU) **FASTEST GROWING CITY IN RIVERSIDE COUNTY NOT STUNTED BY CFDS NO WATER, SEWER OR ELECTRIC UTILITIES - TO SHIFT EXPENSES FROM GENERAL FUND OR COMBINE W/ RATER PAYER SERVICES

CO RECOMMENDATION FROM APRIL 6, 2014 UN 1. RECEIVE PRESENTATION AND PROVIDE DIRECTION CIL 2. AUTHORIZE THE CITY A MANAGER TO ENGAGE CONSULTANTS PP AREA TO DESIGN AND CONDUCT AND/OR EXPERTS IN SUBJECT OV IN AN AMOUNT NOT TO COMMUNITY OUTREACH EFFORTS, E D& EXCEED $50, 000 DIR 3. DESIGNATE THE PUBLIC SAFETY COMMITTEE TO PROVIDE EC TO STAFF FEEDBACK AND GENERAL PROJECT GUIDANCE TEWOULD RETURN AS PER THE STAFF REPORT, THE CITY MANAGER D TO CITY COUNCIL WITH REPORT DETAILING THE FINDINGS OF COMMUNITY SUPPORT FOR A SALES TAX BALLOT MEASURE FOR NOVEMBER 2016. MPT AUGUST MOTION 1. STAFF TO RETURN AT THE NEXT COUNCIL MEETING TO DISCUSS AND PROVIDE FOR A VOTE ON 3 OPTIONS, INCLUDING NOVEMBER BALLOT OR SPECIAL ELECTION NEXT YEAR: SALES TAX MEASURE (GENERAL OR PUBLIC SAFETY) & UUT MEASURE); ALSO APPROVAL FOR A CITYWIDE CFD FOR PUBLIC SAFETY THAT WOULD REQUIRE AN ORDINANCE TO FOLLOW 2. DESIGNATE THE PUBLIC SAFETY COMMITTEE TO PROVIDE FEEDBACK AND GENERAL PROJECT GUIDANCE TO STAFF

REVENUE DISCUSSION FOLLOW UP & CITY MANAGER DRAFTED DIRECTION A MEMO THAT SUPPORTED MPT AUGUST’S REQUEST AND PRESENTED TO THE PUBLIC SAFETY COMMITTEE. THE COMMITTEE RECOMMENDED THAT THE COUNCIL DISCUSS AND APPROVE: 1. CITYWIDE CFD FOR PUBLIC SAFETY ($516/$381) 2. 1% GENERAL SALES TAX MEASURE FOR NOVEMBER 8, 2016 BALLOT AS PER THE COUNCIL ON APRIL 6, 2016, THE CITY MANAGER ENGAGED A CONSULTANT FOR, FM 3, FOR $29750, WHICH HAS LED ME TO RECOMMEND THE FOLLOWING CHANGE TO THE REQUEST FROM MPT AUGUST: 1. DISCUSS AND CONSIDER APPROVAL OF A CITYWIDE CFD FOR PUBLIC SAFETY ON NEW RESIDENTIAL DEVELOPMENT (SINGLE FAMILY & MULTI FAMILY DWELLING UNITS) ($516/$381) 2. CONTINUE TO ASSESS OPPORTUNITIES FOR A BALLOT MEASURE PROPOSAL AND RETURN TO THE CITY COUNCIL ON MAY 18, 2016

REVENUE DISCUSSION FOLLOW UP & DIRECTION NEW INFORMATION FROM CONSULTANT (FM 3): 1. TIME IS NEEDED TO POLL THE COMMUNITY & GAIN VALUABLE PUBLIC OPINION: A. SEEK INFORMATION ABOUT WHAT IS MOST IMPORTANT: • PUBLIC SAFETY • CODE ENFORCEMENT • ROAD/STREET REPAIR • INFRASTRUCTURE PROJECTS • TRAFFIC SOLUTIONS • EXPANDED/ENHANCED CITY SERVICES B. WHAT TYPE OF BALLOT MEASURE MAY BE SUPPORTED: • 1% PUBLIC SAFETY SALES TAX | ½% PS SALES TAX • 1% GENERAL SALES TAX | ¾% | ½% • UTILITY USER TAX | WHAT % 2. FM 3 WOULD PROVIDE FEEDBACK ON PUBLIC OPINION 3. FM 3 WOULD PRODUCE BALLOT MEASURE LANGUAGE

REVENUE DISCUSSION FOLLOW UP & DIRECTION REVISED RECOMMENDATION, THAT THE CITY COUNCIL: 1. DISCUSS AND CONSIDER APPROVAL OF A CITYWIDE CFD FOR PUBLIC SAFETY ON NEW RESIDENTIAL DEVELOPMENT (SINGLE FAMILY & MULTI FAMILY DWELLING UNITS) ($516/$381) 2. CONTINUE TO ASSESS OPPORTUNITIES FOR A BALLOT MEASURE PROPOSAL AND RETURN TO THE CITY COUNCIL ON MAY 18, 2016