FY 2018-19 and 2019-20 Adopted Operating and CIP Budget

Funding Gap for Infrastructure and Services and Unfunded Needs The City has been able to continue offering a high level of services to the community. While expenditures are being held relatively flat in the General Fund, it is imperative that the Council and the community understand that the City is not yet in the financial position to fully address its aging public infrastructure (buildings/facilities, Downtown, parks, storm water, streets, wastewater (non General Fund), and water (non General Fund)). This needs to be addressed in an ongoing manner that significantly reduces the deferred maintenance backlog. For Fire Services, funding is needed to address the increased call volume and staff resources, as well as construct the third fire station building and provide staffing and equipment for that station. For Police Services, funding is needed in crime prevention and responding to the public safety needs of our growing community. To address the reality of the infrastructure and other funding gaps, in July 2015, the City Council directed staff to engage the Community on quality of life services and fiscal issues, exploring the viability of a ballot measure in the 2016 elections. Guided by The Lew Edwards Group and the services of Godbe Research, staff embarked on an extensive community outreach campaign to learn about the community’s priorities and to educate the community on the City’s police services, infrastructure, and financial needs. Godbe Research conducted two statistically valid surveys: one in November/December 2015 and the final survey in July 2016, both exploring the community’s priorities and the support for a potential ballot measure to provide funding for police services, infrastructure, and general services. Based on lack of support recognized from survey results of the July 2016 survey, Godbe Research recommended not moving forward with any type of ballot measure. The City Council accepted this recommendation and did not move forward with a ballot measure in 2016. In March and April 2018, Godbe Research performed a survey to assess the Community’s interest in allowing medicinal and recreational cannabis in the City, as well as a possible cannabis tax and increase in the transient occupancy tax. City Council will soon decide whether to move forward with a November 2018 ballot measure for these potential revenue sources. Using the April 2018 Infrastructure Update Report and Master Plans as guides for policy discussions, City staff will continue to engage the City Council and the Community to both educate and strategize the best way to move forward with a sustainable funding source for the General Fund for infrastructure, public safety, and general services, looking ahead to the possibility of a ballot measure in 2020. This will require significant staff resources, consulting services, and City Council resources to develop and implement consistency of messaging and decision making using the priorities of infrastructure funding and financial stewardship as the lens through which projects and initiatives are viewed.

30 RECOMMENDED BUDGET MESSAGE