The URL can be used to link to this page

Home My WebLink About2006-1109 Study Session Packet CITY OF ASHLAND CITY COUNCIL STUDY SESSION AGENDA Thursday, November 9, 2006 at 5:15 p.m. Council Chambers, 1175 East Main Street 1 . Discussion of Long-Term Revenue Planning 2. Discussion of AFN General Obligation Debt Service In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Administrator's office at (541) 488-6002 (ITY phone number 1-800-735-2900). Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to the meeting (28 CFR 35.102-35.104 ADA Title 1). ~~, CITY OF ASHLAND Council Communication Study Session - Discussion of Long-term Revenue Planning Meeting Date: November 9, 2006 Department: Administrative Servic s Contributing Departments: Approval: Martha Benne Staff Recommendation: Staff requests that Council review the information provided and be prepared to identify the areas of concern and information they would like to receive in subsequent meetings to adequately prepare for the upcoming budget process. Primary Staff Contact: Lee Tuneberg ,~dJ.- E-mail: tuneberl@ashland.or.us fJ U U Secondary Staff Contact: NA E-mail: Estimated Time: 60 minutes Statement: This study session was requested in order to look at the next fiscal year. It is an opportunity for Council and staff to begin to discuss anticipated trends and the potential impact on City services. This discussion will help the City prepare for the 2007-2008 budget preparation process and establish guidelines and goals to aid in developing an operations and financial plan for the next year and beyond. Likely areas for discussion are: 1. What disconnects do we see between services provided and related revenue streams? 2. Will the City need to discontinue any services in FY 2007-2008 due to: . Excessive increased costs . Diminishing or disrupted revenue streams . Other needs or services of a higher priority 3. What capital projects are in the near future and how will they be funded? 4. What can be done now to plan for future projects and significant changes in revenue? 5. Besides the AFN debt, what other obligations and commitments are there and how are they paid. Items 3 - 5 should be the subject of discussion at the December 4, 2006, study session. Background: There are many ways to view the budget, some are: . By fund . By service type . By revenue streams . By expenditure categories r~' For informational purposes, examples of the budget by these different perspectives are attached and each can be telling in their own way and the subject of lengthy discussion. In part, that is what happens during the budget process so many things you see in the budget document and staff presentations are included here. To provide focus on this initial discussion and to set the path for future meetings, this report is based on a few assumptions. Primary areas of concern are: 1. The General Fund's balance between revenue streams and services (and levels of service) provided. 2. City-wide debt and its impact or limitation on daily operations or future improvements. In order to focus on these two in the time allowed in this meeting we will set the following items aside and only refer to them as needed. A. Service provided through enterprise funds are ongoing and generally pay for themselves through charges to customers who use or benefit from the service. B. Other funds like Street, Insurance Services, Capital improvements, etc. may require a separate discussion on what is included in their operations and funding mechanisms. C. Internal services are support functions (sometimes steering functions) necessary for operations and appropriately paid for by line departments and divisions. D. Parks Commission will continue to require property taxes to fund at least 75% of their activities and 100% of the Youth Activity Levy if continued. E. Miscellaneous services are provided as needed in the community and require a variety of funding mechanisms to be sustainable. There probably are many more areas for discussion and they will be addressed as raised but efficient use of time may require them to be held until a later meeting. THE GENERAL FUND All agencies have a general fund even though they may have a different name. A general fund is the place where any activity that does not fit well into some other category is included. The revenues and reserves captured in this fund are the least restricted giving the agency necessary flexibility to provide the general health, safety and welfare services expected by the community. Generally speaking, many of these activities (services) are such that a fee for service cannot be charged or may not cover the total cost of providing the service. Ashland's general fund includes Police, Fire, Community Development, Municipal Court, Cemetery and other activities that meet this description. In order to balance this fund, the shortfall between the amounts that are charged (if any) for a service and the cost to provide it is funded through indirect revenues and taxes. A comparison of revenues and cost follows: ~A' $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $- o Other . Fines o Charges for Serv ices ~ Intergov ernm ental . Licenses and Permits II1II Taxes $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 . Other o Community Development . Public Works o Fire and Rescue ~ Police . Administrative Services II1II Administration General Fund Revenue Comparison 2005 Actual 2006 Actual 2007 Adopted $186,000 ^_. ~.~-~ - $157,000 $1,654,456 $863,994 $97,536 $133,170 $1,650,211 ---- -- $467,227 $1,489,379 $8,069,464 $550,892 $137,460 $1,517,574 $810,908 $1,106,317 $8,517,028 $1,713,541 ---- --- $9,742,360 General Fund Expense Comparison $- 2006 Actual 2007 Adopted $500 ----- $2,115,347 $355,375 $5,262,372 --_._-----_._..~_.- - $5,325,774 ~-- $1,083,599 -..--- $253,780 2005 Actual $258,833 $1,482,363 -_.._-------_.._--~. $240,279 $4,230,616 ----- $4,233,855 $909.950 $212.845 $25,451 $1,773,135 $277,497 - ---- $4,632,526 ----,-- $4,606,337 ~-_._--- $1,024,549 $104,838 * $1,000,000 was budgeted in Community Development for land purchase, which is not shown in this table. r~' Resources and revenues The General Fund revenue structure is fairly complex so a little explanation is appropriate. Taxes - The tax category makes up 67% of the total revenues. Taxes include property taxes, Electric Utility Users tax, Hotel/Motel taxes and franchise fees. Property taxes for the city are also distributed to the Parks and Recreation Fund, Ashland Yo.uth Activity Fund (Parks) and other funds for debt service. GENERAL FUND Description 2004 Actual 2005 Actual 2006 Actual 2007 Adopted Taxes Property Taxes Current Prior Electric Utility User Tax Franchises License Hotel/Motel Tax Total Taxes 2,071,096 2,180,490 2,595,000 2,887,760 98,938 85,064 80,000 97,800 2,102,550 2,277,178 2,323,390 2,648,800 1,985,361 1,982,757 2,104,177 2,417,800 162,357 153,761 205,220 176,100 1,309,013 1,390,212 1,414,218 1,514,100 7,729,315 8,069,462 8,722,005 9,742,360 Projections show that this level of property tax may not be sufficient to meet operational needs for ongoing service levels in the near future of the General Fund. Tax rate comparisons can be seen later in this document. Charges intended to recognize the use of, and the impact on, right-of-ways are called franchise fees. The city's enterprise activities and private companies all pay franchise fees with most of the proceeds going to the General Fund in recognition of general ownership and the value added by the activities managed there. However, the other fund that is significantly impacted by the utilities having access to the right-of-way is the Street Fund and a portion of the total franchise fees is allocated there. Below is a table that shows the franchise fee revenue distribution. City of Ashland Franchise Revenue Actual FY 2005-06 Actual Rate 2006 General Fund Street Fund Cable Television 5% $ 346,319 $ 193,824 $ 152,496 Electric Utility 10% 1,110,989 1,110,989 Natural Gas 5% 258,105 258,105 Sanitary Service 5% 76,596 76,596 Telecom m unications 7% 137,264 137,264 Water Utility 7% 276,540 197,528 79,011 Wastewater Utility 7% 181,819 129,871 51,948 $ 2,387,632 $ 2,104,177 $ 283,456 Charges for service- Charges for services account for 12% and examples of services charged for are ambulance, building, planning, cemetery and court fees. rj.' GENERAL FUND Estimate Description 2004 Actual 2005 Actual 2006 Actual 2007 Adopted Charges for Services Police 172,543 193,128 185,000 187,000 Court 376,620 331,761 400,000 337,150 Fire and Rescue 798,853 963,065 750,000 926,800 Cemetery 45,959 37,969 60,000 52,656 Planning Division Services 80,217 97,577 103,000 125,000 Building Division Services 114,848 25,679 25,000 25,000 Rent 1,124 1,033 1,020 850 Total Charges for Services 1,590,164 1,650,210 1,524,020 1 ,654,456 Each year the city must evaluate the appropriate level of its fees and charges. Licenses and permits- Licenses and permit fees for plan review, building and fire inspections represent 12% of the revenue in the General Fund. Other revenues- Interest, fines, intergovernmental revenues, transfers and grants comprise a final other category. In total they represent 3% of the current budget and that percentage varies greatly depending upon annual activities. These revenue streams are difficult to predict. Other Resources- Fund balance carried forward from the prior year is a significant portion of the ongoing budget and primarily represents unreserved monies to ensure financial stability of the fund during economic or seasonal variations. Requirements and expenditures Personal services- Personal services costs represent 63% of the total General Fund budget and 37.7% of the total city-wide operational budget. The increase of 6.7% includes a 4.2% growth in general compensation and benefits, 1.1 % more in health care premiums, 0.8% more for two new positions. Materials and services- This category represents 31.9% of the total General Fund budget and is budgeted to increase 9.1 % primarily due to petroleum based products (like fuel and asphalt) increases and internal charges for shared services including administration, legal, finance, information technology, building maintenance equipment and insurances services. Capital outlay- Capital expenditures are a very small portion of the General Fund. Quite often, most of the expended amount in this category is significantly offset by a grant. Other requirements- Things like transfers to other funds (Cemetery Trust) are budgeted here and usually are nominal. Ending Fund Balance- Fund balance to be carried forward represents the estimated amount set aside for the coming year. The estimated amount cannot be appropriated in the current year except under emergencies. ~.t. 1 MATCHING RESOURCES AND REQUIREMENTS As can be seen above, the General Fund is reliant on a variety of taxes to balance. Without those taxes, services would probably cease or be curtailed. Annually the city develops assumptions meant to help guide the creation of the next year's budget and to estimate the impact extending five more years into the future. Some of those assumptions are: Revenues . Planning fees will fund approximately 75% of division activities. . Building permits will fund division activities at 100%. . Property tax rate will be held to $1.72 City, $2.09 Parks, approximately $3.81 combined. . Property tax assessed valuation growth will be 3% under Measure 50 and new construction will be 2% for a total assessed valuation growth of 5% Expenses . Health care premiums will increase 7 - 9%. . Inflation for general Materials & Services will be 3.0% for 2006-07. (Exceptions for industry trends where appropriate and fuel at 50%) When modeling the General Fund financial picture it becomes important to consider the "growth" of revenues as compared to the rise in costs. If we assume the following: o Assessed property values will increase 3% and a 2% growth o All other taxes and revenue streams will grow at 3% o Staff costs will grow at 7% o General materials & services will increase at 3% o Petroleum based materials will rise 10% o Internal charges will increase 5% Other costs and expenses remain constant, the projection from FY 2005-06 for the General Fund would look like this: Projected Revenues and Expenditures 2006 2007 2008 2009 GENERAL FUND Actual Projected Projected Projected Revenues Property Taxes 2,436,234 2,558,045 2,685,948 2,820,245 All Other Taxes 6,080,805 6,263,229 6,451,126 6,644,660 All Other Revenue' 4,148,593 4,273,051 4,401,242 4,533,280 Subtotal 12,665,632 13,094,325 13,538,316 13,998,184 Expenditures Personal Services 7,873,693 8,424,851 9,014,591 9,645,612 Materials & Services- General 2,688,264 2,768,912 2,851,980 2,937,539 Materials & Services- Fuel 102,310 112,541 123,795 136,174 Materials & Services- I ntemal Charges 1,453,757 1,526,444 1,602,767 1,682,905 Capital Outlay 300,858 300,858 300,858 300,858 Su btotal 12,418,882 13,133,607 13,893,990 14,703,089 Excess (deficiency) of revenues over expenditures 246,750 (39,282) (355,675) (704,905) 'Includes Transfer In from Cemetery Trust ~~, The trend shows a disconnect between revenues and expenditures may occur within two years, if the assumptions are correct. Please note that assumptions are seldom 100% accurate, departments strive to spend less than the amount budgeted, revenue streams fluctuate due to many variables and a fund balance is used to smooth out these variations. This is a potential disconnect. Departments strive to under-spend their budgets without compromising services. Five years ago most departments were using 90% to 95% of their annual budget. In the last few years many departments have recorded in the 95% to 97% range because of tighter budgets, rapidly rising costs and unanticipated program or projects requiring resources. This has increased the need and use of Contingency each year. Thus, in the scenario above, if departments spent only 97% of the budget in 2008, the resulted would be a $416,820 offset to the negative $355,675 for a balance of a positive $61,145 (all other things being equal). The cumulative effect of such savings from 2006 through 2009 would be an increase in fund balance of $337,663 for all years combined. This scenario relies upon continued, stable revenue streams. As mentioned above, Council has the ability to change revenue streams to affect the outcome. The end goal is to maintain an ending fund balance sufficient in size to minimize the impact of sudden disruptions or annual shifts in resources or requirements. A short history of fund balances is shown below. For the Fiscal Year Ended June 30, 2003 2004 2005 2006 Fund Balances Actual Actual Actual Actual City Component General Fund $ 1,715,220 $ 1,755,145 $ 2,093,388 $ 2,326,936 Community Development Block Grant Fund (32,433) 33,018 (8,492) 4,599 Street Fund 2,528,750 315,846 1,186,028 1 ,464,044 Airport Fund 32,135 218,377 122,942 54,874 Capital Improvements Fund 67,583 396,855 924,554 803,171 Debt Service Fund 282,293 433,278 423,842 459,095 Water Fund 4,662,028 5,002,748 6,458,230 6,179,246 Wastewater Fund 2,356,054 1,541,125 5,664,182 5,301,598 Electric Fund 1,497,827 1,539,766 2,527,430 2,116,269 Telecommunications Fund 388,018 62,635 898,750 518,687 Central Services Fund 947,953 569,013 185,137 439,010 Insurance Services Fund 145,978 934,499 1,036,331 1,060,790 Equipment Fund 1,121,598 1,224,311 1,489,055 1,510,170 Cemetery Trust Fund 679,646 684,476 702,629 719,429 Total City Component 16,392,650 14,711,092 23,704,006 22,957,918 Parks Component Parks and Recreation Fund 1,403,171 1,558,332 1,621,679 1,507,367 Youth Activities Levy Fund 36,403 122,588 103,733 35,374 Parks Capital Improvements Fund 367,733 300,331 207,375 165,326 Total Parks Component 1 ,807,307 1,981,251 1,932,787 1,708,067 Total Budget $18,199,957 $16,692,343 $25,636,793 $24,665,985 Finally, beyond the ability to curtail spending (minimize or discontinue some services) and increase some revenues or create others to help with balancing, Ashland is levying less than the permanent rate of $4.2865. An estimated $500,000 in additional property tax revenue could be generated annually. However, although this additional amount provides a "cushion" it is likely that General Fund operating costs will continue to increase at a faster rate than property tax revenue. Below is a table four years of history on property taxes. r~' City of Ashland Property Tax Rate and Revenue Property Tax Rate 2003-04 2004-05 2005-06 2006-07 General Fund 1.47194 1.47190 1.62190 1.70690 Debt Service Fund 0.17500 Parks 2.09247 2.09280 2.09280 2.09280 Total 3.56441 3.56470 3.71470 3.97470 Permanent Rate Limit 4.28650 4.28650 4.28650 4.28650 Rate not levied 0.72209 0.72180 0.57180 0.31180 Property Tax Revenue General Fund $ 2,170,033 $ 2,265,556 $ 2,436,234 $ 2,985,560 Current 2,071,095 2,180,492 2,307,930 2,887,760 Prior 98,938 85,064 128,304 97,800 Dollar amount not levied $ 1,064,554 $ 1,110,998 $ 858,893 $ 545,373 Assessed Valuation $ 1,511,835,569 $ 1,593,607,600 $ 1,677,271,999 $ 1,761,135,599 The city is in the enviable position of having room left in available property tax revenue and still maintaining a reasonable fund balance in the General Fund. At the same time, the cost for providing services has been increasing, often outside the city's control. As explained in the budget message over the last several years, the city should continue evaluating the services provided, the quality of those services and how they are to be funded. DEBT AND DEBT SERVICE There is no direct debt service funded by the General Fund. To discuss debt we will segregate the types of debt, where they are located in the city-wide budget and how the debt service is paid. Debt service - The budget includes the payment of all current debt obligations of the city. These obligations include bonds, loans from the state and banks, notes with private parties and sometimes internal borrowing. In general, we separate enterprise related debt from general debt but sometimes they overlap. Years ago, bonds that were issued for enterprise infrastructure were sometimes backed by the general tax authority of the city and were often referred to as "double barrel bonds." That meant there were two separate ways to pay for them. This is not done very often today. The city did choose to back the refinancing of the Ashland Fiber Network debt with the ability to pay from other general revenues since the telecommunications system could not demonstrate a sufficient ability to pay the debt service totally through operating revenue. ~~, The table below shows General Obligation bonds found in the Debt Service Fund: DEBT SERVICE Date Due 2004 Actual 2005 Actual 2006 Amended 2007 Adopted Debt Service Fund 1997 Flood Restoration Bonds - Principal Payment December 1 $ 65,000 $ 65,000 $ 70,000 $ 75,000 1997 Flood Restoration Bonds - Interest Payment December 1 16,409 15,552 13,871 3,392 1997 Flood Restoration Bonds - Interest Payment June 1 15,253 13,870 12,366 1,760 2000 Flood & Fire Station Bonds - Principal Payment June 1 120,000 120,000 125,000 130,000 2000 Flood & Fire Station Bonds - Interest Payment December 1 18,061 14,843 2000 Flood & Fire Station Bonds - Interest Payment June 1 164,483 158,483 18,061 14,843 2005 Refunding Series - Principal Payment NA NA 2005 Refunding Series - Interest Payment December 1 59,879 56,363 2005 Refunding Series - Interest Payment June 1 56,363 56,363 Telecommunications Fund 2004 Revenue Bonds - Interest Payment* July 15 NA NA 802,021 432,227 January 15 432,227 432,227 Total General Obligation Debt Service $ 381,145 $ 372,905 $ 1,607,849 $ 1,217,016 *These Revenue Bonds are also backed by the Full Faith and Credit of the City of Ashland General Obligation debt is limited by the state to 3% of the assessed value of property in the city's boundaries but the city is well under that cap. CITY OF ASHLAND, OREGON COMPUTATION OF LEGAL DEBT MARGIN True cash value 3% of the true cash value $3,266,109,773 0.03 $97,983,293 NET BONDED DEBT: Gross bonded debt Less amounts exempted: Water Water Refunding Total debt applicable to margin LEGAL DEBT MARGIN 19,780,000 (60,000) (940,000) 18,780,000 $79,203,293 Most all of Ashland's other outstanding debt is either Revenue bonds or General Obligation debt backed by the city's ability to tax. Except for the refinancing of the AFN debt, most all other enterprise debt is revenue based thus accounted for and paid out of the corresponding utility fund. The AFN debt did not greatly reduce the city's ability to finance other improvements via general obligation debt but the annual debt service of $1.4 million does require allocating resources to make the payments. All other debt of the city has identified revenue streams to pay the annual service amounts whether it is through approved property taxes, rate revenues or other fees designed to generate sufficient amounts. Council has discussed this debt on many occasions but a long term solution has not been adopted. In the current budget the debt service of $865,000 in interest only is scheduled to be paid from a reserve transfer of $570,000 from the Capital Improvement Fund and $295,000 from property tax levied at $.175/$1000 within the city's permanent rate. Next year's debt service will be $1.1 million and will r., climb to $1.43 million by 2010 as payment of principal increases. Funding solutions for these bonds are part of another agenda item. Reserves and surpluses cannot be relied upon to pay ongoing debt service. The City needs to identify a permanent solution to finance these debt payments. We can then permanently plan for the additional revenues or reduced services needed to meet this obligation. Related City Policies: Financial Management Policies Accounting Methods Council Options: Accept the information provided, request additional information and/or schedule additional meetings for discussion. Potential Motions: This is a study session so there are no formal decisions to be made. Attachments: Revenue and Expense Pie Charts r~' g LLrf!. $~ ",~ (/) - \ ....?ft 0)1'- -"'0 O~ ~ >- ~ "C C ::;, LL. ~ 1) C) "C ::;, D:I ...... CI th CI CI N >- LL. g u. E~ 0) . <=CD O)~ CJ <= 0) E "'-.., o <= Q; => >u. c3Erf! ~~~ "2 t9 ci => ~ E g goo o -g => ~~ e-"'"' ._ 0 <( "C C ::;, LL. >- ..c 1) C) "C ::;, D:I ...... CI th CI CI N it ~ ...J o ~ j ~"'C?ft ~<=N 5~~ >- .., <= '" ~ <( .., 5 u. <= tel "'N 0::0 -g<D '" o ~ ~ u. ~ ~ ~ LL c..~ "S N C" W o ~#. ~~ mo t!1 '" o ~~ '" oo Cl....; UI C cu E cu ... ":; 0- cu 0:: >- ..c 1) C) "C ::;, D:I "'jij '0 ~ ...... c:;> <0 CI CI N >- LL. "' ~ :;;: Ji~ O)~ .~ N e.'O;t" ~ w .., <= => u. -E t!1 ~?fl. ~~ ECD ]j "a. '" o -l@ 0) ~ ~ u. ~ ~ '" I'- .~ ~ <= 0 0 "'oo 0 (/)..-' cu ~ :E .9l '" U Cl ... .s ::;, 0 UI cu .., 0:: <= >- ~rf! ..c - CD J!!C"":! 1) "'oo ;;:~ C) .., "C <= ::;, " u. D:I ~~ "'jij - "," 0 13'" ~ ~ ;;: ...... u.~ CI ~rq th ",oo CI w~ CI N .., >- <= LL. " u. 0 <= ,2 .~ rf! <=", ~ 0 N E ~ Q; I- ~ .~ ;,e en ~ _ CD g~ ~ '" Cl.. g> 'g g w~~ ~~~ ~-gcri '" ::> e:'LL <= ::> ~~ LDffi~ -g~~ :g-g~ - ::> &LL '" Q) .13 m~ g~ ~-r- o U "' ~ ~~ u.~ -go '" '" Q) <= u: ~ "2: Q) CfJr;f!. -.. o " -:;;~ Q) e' ~ o "' "' ~ ~ -'" ~ o '" ~ ~ #. ~~~ Ci5....-ffi 8 ~ E ~ "* >- (/) ~ o (/) g# '(3 ~ <= CD "'~ <= u: ~ o .!!l .E l;; Cl.. ~~ "'~ Q) "' ~ :::i "' ~ Q) > Q) a:: ~~ Q) . ~M Q) > ~ ~ ~~ 2:d!; ",0 en"" 2l .~ ~ ~~ .Eooi '" o >. '" 8~ - ..,. .!!!r-...: "0.. ...- '" u ~ '* U) ~~# t-.9~ 0;"0 E ffi .9l .s ~~ "'co I-~ CITY OF ASHLAND Council Communication Study Session - AFN General Obligation Debt Service Discussion Meeting Date: November 9,2006 Department: Administrative Services Contributing Departments: N/A Approval: Martha Bennett Primary Staff Contact: Lee T uneberg E-mail: tuneberl@ashland.or.us Secondary Staff Contact: E-mail: Estimated Time: 45 Minutes ~o-- Staff Recommendation: Staff requests that Council identify what additional information or discussion items are needed to assist with analysis or to help determine which revenue stream(s) is to be used for the short and long- term payment of the annual debt service. Statement: This communication provides Council with background information to facilitate a discussion on the General Obligation Debt service relating to Ashland Fiber Network. Background: Last Spring the payment of debt service requirements for 2006-2007 was developed as part of the Budget Committee process utilizing a combination of operational property taxes and internal transfer from the Capital Improvement Fund. A long term solution has not been identified and adopted. In preparation for the next budget process that will begin by February, 2007, staff is providing the previous information for discussion and to propose three concept options: 1. Use a utility bill service charge to fund the annual debt service for technology used by enterprises. 2. Assess an internal charge on all departments and funds for technology use. 3. Create a new revenue stream or divert an existing to pay the debt. A utility bill service charge was enacted and repealed last year. It can be constructed to vary by customer class and adjusted to minimize the impact on low income families but will require the disconnection of utility services if not paid. Internal charges for technology are not uncommon and replicate Ashland's process for many other charges. It will eventually impact services provided or rates and fees charge in all funds that pay but could be adjusted to have a minimal impact on some funds. Any new revenue stream will have a lead time in approval and development. Consensus will be needed to proceed. Diverting a revenue stream may impact other services. Discussions have included the BPA surcharge, Food & Beverage or Transient Occupancy Tax revenues as possible sources. ~~, Debt service will be $1.06 million in 2007-2008, $1.3 million in 2008-2009 and $1.43 million thereafter. In 2005-2006 meetings, Council said it prefers a "cafeteria" solution for next year and also extending into the future but consensus was not reached on what the elements would be. The subsequent survey indicated that Council supports both a utility bill surcharge and some element of property tax going into the future. The Budget Committee proposed solution was part of a cafeteria approach with the property tax as part of the city's permanent rate and is intended for one year only. A surcharge could be imposed to further diversify the revenue stream and potentially reducing the reliance next year on transfers or taxes. If Council should so choose, any portion of the current, or future, property tax or operating transfer could be reduced by a utility fee as previously discussed. The survey is provided to help Council reconsider the options. Related City Policies: None Council Options: Request additional information for discussion at another meting Ask staff to bring a recommendation back to Council at future meeting. Potential Motions: This is s Study Session so no formal action can be taken. Attachments: Council member choices on AFN debt payment options Short-term Council member choices on AFN debt payment options Long-term ~;., Oi <F- <F- a a Cl ... <D :0 U; l: a l/l "-= 5 ::< l: <F- a a l/l a "" ~ U III ...., ~ <F- <F- <F- <F- a; a a a a ~ (0") N ~ ... III J: N (0") ... ~ ~ <F- <F- l/l Ql <0 N 1: l[) ... III J: ...., l: <F- <F- III a E a ". a. ~ III .l: (,) ~ N a <F- <F- <F- u e a l[) l[) l[) N N III E < ~ ~ ~ (0") (0") ... ... N ... ... ... ... ... ... ... III I;::: '0 OJ OJ 01- :0 :0 I.... <F- <F- ~ 'Uj 'Uj (J:) a 0 <f) <f) 0 c: l() l() '" 0 0 0 N N l() a. a. Ql 0 0 N l: >- Ql Z z !: 0.. E ~ OJ OJ Q) :0 :0 I- ~ Uj 'Uj t:: .~ N .... <f) <f) ..... 0 0 0 ;t a. a. .c 0 0 CJ) Z Z , l/l l: a ~ 0 <f) c: (/) Qj o/l ~ Ql :2: <f) Ci5 E 0> Qj >- e "" E III '(3 ~ g 0.. :J 15 OJ u OJ 2 OJ ~ U <f) Ql e C LL <f) >- ro Qj <f) >: OJ c .D E "" e Z > <f) ro <f) 0 .g ~ LL J!! :::> (j, u < "t: ~ - .~ l- e OJ .~ e ro .2 <f) m .~ OJ 0 Qj a. a (3 0> I- Q; OJ OJ ro l/l Y:.- O> ro ro "" ~ 5 a. >- .l: ,<,? ~ Ql > e LL .l: "0 0 - OJ u J!! e '(3 "0 (,) <f) <f) LL Q; S 0> "0 '2 e OJ u E OJ (/) .l: 0 e .l: 0> 0. ro OJ OJ t 'Uj ~ ~ ~ ,S c OJ (j (j g 0 0 E (,) 0 ~ Ol ro '~ OJ ro <f) m (j c c c 0 '- QI QI QI ro 0. 0 2 a t Ql ~ ~ E Q; ro C OJ OJ Ci <F- a 0 0 0 .D (j 0 ,S (/) x x x :> :> :> a. 0 OJ 2 x <f) m n:: E 0 0 0 0 ...J l'J (j OJ ~ C OJ c OJ l'J l'J l'J n:: Ql <I> Sl <I> Q; ro Ol c ~ ~ ~ (j c c c >- ::< QI QI a. u:: ro ';:: x x x OJ - ~ OJ OJ OJ ro D: D: D: l'J l'J l'J .l: (,) :J I- ro E E E x CD 'u (,) (j e l'J QI <II QI >- >- >- x x 0 .'2 OJ c e c x 0 e C. C. C. t:: t:: t:: l'J l'J ro u u I- a. 'm m 'm x l'J OJ :> E E E OJ OJ OJ ~ ~ e ~ ~ OJ ro E t:: t:: t:: l'J <f) E Q; Q; a a. a. a. Q; '6 '6 <f) Q; OJ OJ OJ OJ 0 (,) <II <II <II <f) .l: .l: 0 0 0 OJ OJ 'm a. CD C C C ro ro (j )( )( )( 0: 0: 0: 5 5 c 6 6 III III III n:: n:: n:: 0 (/) w w w l'J (/) .s ;::-iii 90 (DI- 0- 00 N'E >- .. l1.. ~ .. Gio. ;t:: ~ E~ Q) ".: I- .9 ~Q: c: o ...J ~ .. Ol ;e Ui c o .~ o :; c o .. "" u .. ..., Qj t! .. J: ~ .. .. "E .. J: ..., c .. E a. .. .r; u o .!:1 e .. E <( ~ . ltl '" ~ . ltl '" N .. c .9 C. o 'E .. E >- .. 0. 1> .. Cl Z u. <( c o .. .. u .0 .r; u :;; .0 E .. :; ;;j; ~ ~ Q) Cl) lit ~ ~ e ~ :s ::s 000 .. Ul III III III III Ct: Ct: Ct: Q.I Q) Q) is. is. is. E E E co ca 1lU. )( )( )( w w Ul .u C ::l o U ~ . o ltl .... ~ (' <!) N >- > .!!! OJ "S ro Q; a. a x 2 >- to (j) a. o Q: ~ <!) N ~ o o ~ N ~ o N N N <D :0 "Vi Vl o D- o Z <D :0 "Vi Vl o D- o Z >: > .!!! ro .~ ~ c o '6. a ro u o ....J x 2 >- to <D a. o Q: ~ o o ~ :of!. a N :of!. fo CD <D :0 "Vi Vl o D- o Z <D :0 "Vi Vl o D- o Z OJ C o c ro c '" ~ a <.9 x 2 >- t <D a. o Q: :of!. u., .... N <D OJ ro C (j) u Q; D- x 2 ~ :5 :of!. a o ~ C') :of!. a N 1D N <D .!!! ro u: x 2 ~ 5 C') (j) <D LL <D Vl ::J :~' o ro LL a <D u ro 0. "S (j) OJ OJ .r; u ro c Q; C C') <D OJ OJ .r; U <D u "~ <D (f) ~ C <D U 13 ~ 15 <D 0:: ~ o :of!. a ~ C') ~ ('" N .... Vl C ro 0, I- a I- a Vl Cl <D <D u o C. C ~ ::l U 13 ~ 15 <D 0:: .... ~ x (j) ~ I- a I- (j) Vl "cu 0:: :of!. c:, C') (f) o/l :; OJ C "0 ::l Cl ~ >- .0 Vl Cl c .2 Q; .r; o E .g Q; u; c ~ ro c o ~ Q; a. a .... Vl <D t; ro o o (J) <D U "C ~ <D a. E Qj (f) :of!. u., ~ :of!. c." C') .... Vl Qj ~ u -- LL (f) a c o x 2 C <D E c "cu to (j) C w ~ <!) .... Vl Qj ~ ~ <D U C ro E (; 't <D a. <D "2: Q; .c o c o x 2 C <D E c cu to (j) C w .... Vl Qj ~ 1? ~ ro (j) -5 <D S o E c o x 2 C (j) E c "cu to (j) C w .... x 2 Vl ro <.9 .... x 2 Vl <D ro (f) .... x 2 (j) E o u c ~ C') N o.!2. (' o o 0. o o C') ... .... Q; u; c ro ~ Cl c ro ....J (j) :0 "Vi Vl o a. c <D .c ); Z u. <( E e LL Q; .c 6 Q; .c 6