REGULAR CITY COUNCIL/SUCCESSOR AGENCY MEETING

Good evening. I'd like to call to order the regular meeting of the Moorpark City Council for September 2nd, 2026 and will Mark Chigars from the Volunteers in Policing please lead us in Would clerk please take roll?

Good evening. Council Member Barrett.

Present.

Council Member Castro. Present. Council Member Delgado. Present. Council Member Means. Present Mayor Inegren.

Present Next item is for proclamations and commendations for a certificate of recognition to Mark Chigaris for attaining over 10,000 volunteer hours with Moorpark Police Department's volunteering in police program Mark, will you come meet me up front? Today we recognize and celebrate a remarkable member of our community, Mark who along with his family made Moorpark his home 38 years ago.

Mark often says that our city's logo could be very well read, welcome you've reached the end of the rainbow. A sentiment that reflects both his love for this community and the spirit he brings to it. In 2011, after observing our volunteers and policing program in action on many occasions, Mark decided to join their ranks. He wanted to contribute directly to the safety and well-being of Moorpark, and over the past 15 years he has done exactly that.

His mission has always been simple—to cheerfully provide whatever support the police department needs. As Mark himself puts it, this is the best job I've ever had. Knowledge transfer and interaction with the Sheriff's Department personnel are fantastics. Mark's contributions have been exceptional, among them which is serving as a VIP field training officer bringing 10 new volunteers on board, coordinating VIP teams and working numerous all-hands call out events that require extended traffic control, scene security and other essential duties, volunteering at every 3rd of July event and surviving the egress each time We gotta fix that someday.

Overseeing weekly testing and calibration by the crime lab for the department, and CHP's portable blood alcohol testing equipment. Responding to hundreds of calls or service assigned to VIPs, issuing parking enforcement citations as needed, conducting more than 50 home security assessments to help keep our residents safe, assisting with numerous registrations for the Cognitive Impairment Registration Program His dedication has not gone unnoticed. Since becoming a volunteer, Mark has received an impressive 13 commendations recognizing his outstanding service, reliability and commitment to our community. When asked how it feels to have achieved this extraordinary milestone of 10,000 hours of service, Mark's response was immediate. Every one of those hours I was accompanied by another VIP.

Being part of a great team is what makes this a great job." Today we honor Mark not only for his service, but for the heart, dedication, humility he brings to Moorpark. His impact is immeasurable and our community is truly fortunate to have him as a part of the team. And Mark I gotta say, I always see you driving around smiling and doing a great job out there. Thank you so much.

Truly it's a pleasure. Thanks. Thank the city council and city management for establishing and supporting the volunteer policing program. It's a real pleasure to be able to directly give back, every volunteer can directly give back to the community in which we live right? And along with that, we also get to work and we have the honor and the privilege of working with the Sheriff's Department Something that not very many people get the opportunity to do. So we're part of the sheriff's team and the city team, and it feels great so thank you all of you for making it happen for all of us.

I'll just say a couple of words. One, my math isn't very good which is why I got into law enforcement in the first place but you know 10,000 hours so just a 40 hour work week that's just under five years worth of volunteering which is profound and we're extremely grateful Mark for all the help that you've given our deputies throughout the years Your knowledge and experience. And you're a mentor also to some of our new deputies in guiding them, so that does not go unnoticed. So thank you very much for everything you've done.

But we're also thankful for all of you, all the volunteer work that you do. You allow us to handle priority issues and concerns in the city. You're helping out with traffic, helping out with parking citations and things that our deputies would be doing otherwise. And so it's greatly appreciated. So thank you to each of you and I'd love to be able to get Mary if you're okay a photo with all of our volunteers and Mark up here, so if we could have y'all come up real quick?

I'm gonna move this mic out of the way

Thank you.

You won't be checking parking in the parking lot right now for citations, right? I'll need to be right back.

All right, next item is five public comment. Are there any speakers?

Yes Mr. Mayor I've received three speaker cards under public comment this evening. Our first speaker will be Daniel followed by Yawashin Organti probably got that wrong so Daniel you have three minutes to address the council under public comment

All right, good evening Council staff. There was a written supplemental for agenda item 10a as well as a written public comment submitted today. Most of my presentation today will be via those so I'm just drawing attention to them now. It's an eight-page fiscal review of item 10A directly to the city clerk for the official record. Highlights key policy concerns regarding uncapped rate escalators and technology pass-through risks. I urge the Council to direct staff to address the explicit recommendations, or at least consider them on page 8 before initiating the CFD formation.

The mayor had previously indicated that FLOC would return as an agenda discussion. It's not on tonight's agenda. I submitted a short illustrated public education exhibit explaining why this cannot remain buried inside contracts, police budgets or vendor substitutions. Please place Flowercreek and any proposed Axon replacement on a properly noticed agenda before renewal, expansion, replacement or further interrogation.

And I see that they already issued a supplemental correcting the math error on 10-D, but there were eight other questions attached with a supplemental that made the public record on that as well. Thank you very much and enjoy the supplementals.

Thank you. The graphics are cool but they don't look like me though. Very wrinkled and old.

And our next speaker is, I'm going to try it again, Yashawan Oregonti. I know how to say the last name. He'll be followed by Siguru Bhopali.

All right. Honorable Mayor, respected City Council members and distinguished members of the mayor's office and everyone else that's listening. My name is Yash Oregonti and I'm part of the Hindu community of Moorpark as well as a team council member or when when the next term comes up but so The reason I'm here today is we celebrate, today we're celebrating Raksha Bandhan which is a festival that holds a very special place in the hearts of millions of Hindus around the world. The word raksha means protection and bandhan means connection. Together it symbolizes a promise, a commitment to care for one another, to stand together and to uphold harmony in our community.

Traditionally, Raksha Bandhan is celebrated between siblings where a sister ties a sacred thread called Rakhi around her brother's wrist. But over time this festival has grown beyond family boundaries and it has become a symbol of unity gratitude and mutual respect. And that is why we are here today. This thread represents our gratitude for your guys' leadership, our respect for your dedication, our trust in the work you guys do every single day and our commitment to stand together as one unified community.

Moorpark is a city where diversity is not just present, it's embraced. We come from different backgrounds, cultures and different traditions yet we share the same streets, the same schools, the same parks and the same hope for our families Festivals like Raksha Bandhan remind us that unity is created by the understanding that we are all one family. In Hindu culture, we believe that leadership is a sacred responsibility.

A leader is someone who protects, guides and uplifts people. By tying this rocket, we symbolically acknowledge that responsibility and express our support for your continued efforts to keeping our cities safe and strong. We also want to express our appreciation for the openness and warmth with which Moorpark welcomes cultural traditions. We thank you for giving us these few minutes to share about our tradition. It means a great deal to us, and we hope this small gesture becomes a symbol of the bond between the Hindi community and the city leadership, a bond of respect, unity, and mutual support.

On behalf of the entire community, thank you for your time, your service, and your commitment to the people of Moorpark. Thank you.

And our last speaker under public comment is, oh boy, Siguru Bonopalli.

Good evening Mayor and members of the City Council. My name is Siguru Bonopalli and I'm currently a freshman at Moorpark High School. It is an honor to be here today. Once again, we would like to sincerely thank the Mayor and City Council for giving us this opportunity to express our gratitude and share traditions. It was a privilege to celebrate Raksha Bandhan with all of you today by tying the Rakhi and sharing the meaning behind this beautiful tradition. We hope we were able to give you a glimpse into the values of family respect love and togetherness that are so important to others and our culture.

As we look ahead, I would also like to speak about another Hindu festival coming up in October and November – Diwali. Diwali represents the victory of light over darkness, knowledge over ignorance, and good over evil. But Diwali is not only about celebration. It is also about giving back and serving others. As part of the Hindu community, we participate in Seva Diwali where communities come together to organize food drives, volunteer activities, donations and other service projects to support those in need.

With Diwali approaching I would like to respectfully request two things from our city. First, we ask the city to support and recognize Seva Diwali and the service activities organized by our community. We would love to work together with the city to encourage residents to participate and give back to our community. Second, as we have previously proposed, we ask the city to consider celebrating Diwali as an official city festival.

This would allow our entire community to come together, learn about Hindu traditions, enjoy cultural performances, and celebrate the values of unity, service, and togetherness. We are grateful for the growing recognition of Hindu traditions and Diwali in California, and we hope our city can continue to be part of that progress. Thank you Mayor and City Council for welcoming our community, listening to us, and giving us the opportunity to share our culture.

We look forward to celebrating Diwali with all of you and bringing its spirit of light and service to our community. Thank you.

And that was the final public speaker under public comment.

Thank you. Next item is 6, reordering of the agenda. Anything need to be pulled or reordered?

I would like to pull 8D please.

Anything else? OK, seeing none.

Thank you, Mr. Mayor. Over the past couple weeks I've done a couple very interesting things. One, I flew to New York City and attended an event at the New York City Public Library It was exceptional. And while it's a much grander scale than even what Moorpark is going to have, their use of collections and using the house of knowledge in the public place in order to engage people and bring them in and create a public discussion was exceptional. I look forward to Moorpark finding a way to do that in its own way so I continue to find myself in those environments exploring.

822. On 826, along with Councilmember Barrett and the Moorpark Morning Rotary we had the pleasure of putting on a police services station barbecue at our station here with both CHP and the deputies as I know all of you know but as a reminder We are the only location in California that has a single building that houses two separate law enforcement agencies, CHP and local deputies. And to see them work together to keep our communities safe every day is something I'm really proud of. So thank

you.

On August 20th, I attended the Economic Development Collaboration meeting. We reviewed EDC's current financial position, several new and continuing regional economic development initiatives including small business support, broadband, Fathomworks and autonomous systems. We also discussed new partnerships and agreements intended to bring additional resources and opportunities to businesses throughout Ventura County.

On August 22nd, I attended the Ventura County Animal Services Clear the Shelters event. 29 dogs several of which were long-term dogs got adopted. 29 cats and kittens 10 bunnies and 3 guinea pigs for a total of 71 animals were adopted that day. On August 28th, I attended Moorpark High School football game which was a nail biter until the end we did end up beating Camarillo.

And on August 29th, they attended the High Street Arts Center Gala Annual gala is incredibly important, and it raises more money for the theater in one evening than all of the shows combined. And it helps to ensure the arts continue to thrive right here in Moorpark. It was a beautiful evening, lots of fun, and a great reminder of how lucky we are to have this historic theater in the heart of our city. That's it.

On August 25th, I attended the Tri-County Chamber Alliance board meeting. On August 26th, along with Council Member Means, I attended the Public Safety Recognition Barbecue. It was a great event and great to thank our wonderful law enforcement for all that they do for us here in Moorpark. On August 29th, I attended the High Street Arts Center Gala along with Councilmember Delgado.

Wonderful event as always they put on a great evening and if you have not been I would highly recommend marking your calendar for next August for that event. On September 1st, I attended the Moorpark Chamber Mixer at Sedora, a home and gift store here in Moorpark. If you have not been to Sedora they are located over in the center where Amazon Fresh used And it is a great, great place to buy gifts and home decor.

And please check that out. This afternoon I attended the Raska Badan ceremony that our local Hindu community did right here at City Hall. and got these threads tied around my wrists, along with Mayor Inegrin. So it was a beautiful ceremony and very nice to hear all the kind words and especially the children speaking up in their involvement in recognizing the city and what happens here.

I do have a future agenda item as well that I would like to add for discussing data centers.

Okay, sounds good.

And if there's a consensus with the council we will address that at future council meeting. All right thank

you. That's it? Okay, so for myself today I attended the Chamber of Government Relations meeting and then I along with Council Member Barrett attended the Raksha Bandhan ceremony which I'm probably gonna butcher this. I've tried to write it down and make sure I knew it right but symbolizes protection gratitude in the bond of goodwill and it's something that they present to public servants. They want to do our council and they also do the police station Services like that, and it's a great tradition.

Really wonderful people came out and really appreciate that. It was really nice to see that. And then I also attended the administrative finance and public safety meeting with council member or Mayor Pro Tem Castro just a minute ago. And that is all I have to report. I've got a few announcements here. Sign up now for fall classes at the Royal Vista Recreation Center. Programs offered include tennis, pickleball, golf, basketball, baking arts and crafts science and more. For details and to register visit city website at moorparkca.gov slash classes Movies in the Park, our USA 250 anniversary American movie road trip continues on Saturday September 12th with a screening of Super 8. The movie will be shown at Royal Vista Park starting at 7 15 p.m.

Admission is free and food is available for purchase. For details including the full road trip schedule visit moorparkca.gov slash movies And finally, put on your blades or quads and join us for Skate Night on Friday, September 18th from 6 to 8 p.m. Enjoy an evening of skating, music and games plus fun activities for non-skaters. The event takes place at the Arroyo Vista Community Park. The theme for September is Moorpark Top 40 so submit your request by September 15th. For more information or to submit a song request visit moorparkca.gov slash skate Next we'll move on to the consent item calendar. We pulled Item 8D, so I'll entertain a motion for the balance. I'll move the balance. Second. We have a motion and a second. We need a roll call vote.

Good evening. Honorable mayor and members of the council. My name is Blake Erickson and I'm the assistant planner for the city. I prepared a brief presentation for this item but first just wanted to ask if there were any specific question that the council had for me or the applicant or if you'd like me to proceed with my presentation.

I mean I have several questions but if you would like to proceed

OK sounds good. You pulled it.

I know yeah that's fine go ahead.

Thank you. Item 8D is a request to approve a two-year time extension for Residential Plan Development Permit Number 2005-02 and Vesting Tentative Tract Map Number 5739, pursuant to Condition of Approval Number 2 of City Council Resolution Number 2022-4121 associated with the Everett Street Terraces Project at the intersection of Everett Street and Walnut Canyon Road.

The applicant first applied for project entitlements in December 2005 and the project was approved by the City Council on September 7th, 2022 for 60 attached multifamily residential condominium units on 2.44 acres. The entitlements were initially set to expire two years after approval with provisions allowing additional extensions based on certain findings.

The community development director previously granted two one year extensions in August 2024 and August 2025. Those extensions bring the current expiration date to September 7th 2026. As the project has exhausted all time extensions that may be granted by the Community Development Director, the applicant Stanley Chu on behalf of John Chu LPN is now requesting a two-year time extension from the City Council.

In their extension request letter, the applicant cites economic disruptions to the construction financing environment caused by the COVID-19 pandemic. Continued financing market headwinds following the pandemic and their efforts to advance the project forward including pursuing prior extensions, participating in annual development agreement reviews, maintaining communications with the city through land use consultants, engaging developers and builders contacting financial institutions regarding construction financing, and continuing to assess project feasibility as market conditions evolve.

In evaluating the request, staff considered the findings contained in Condition No. 2 of Resolution 2022-4121, specifically whether there have been changes in the adjacent area that would warrant reconsideration of the approved project and whether the applicant has demonstrated diligent efforts towards use inauguration. Staff has found that there have been no substantial changes in the adjacent area that would warrant reconsideration of the approved project, and that the applicant has demonstrated diligent efforts towards use inauguration consistent with the basis provided in their extension request.

If the time extension request is approved by the City Council, the existing entitlements would expire on September 7th, 2028 unless a final map is recorded and a building permit issued which would inaugurate the use. The proposed action does not modify the previously approved project and staff has determined that no subsequent environmental review is required under CEQA.

Therefore, staff recommends that the council approve a two-year time extension for Residential Plan Development Permit Number 2005-02 and Vesting Tentative Tract Map Number 5739 pursuant to Condition of Approval Number 2 of City Council Resolution Number 2022-4121. Thereby extending the expiration date to September 7th, 2028. This concludes my presentation. Staff's available for any questions and the applicant, Stanley Chu is here to answer any questions that council has related to their extension request.

Thank you. Are there

any questions of

staff?

Yes, so I don't know maybe this is better for the applicant or you can decide. In the four years since the 2022 approval what tangible milestones or are there any other tangible milestones to be had aside from investigating financing or other developers that would... That makes sense for us to just continue this an additional two years?

Thank you, Councilmember. I'll ask Mr. Stanley Chu to approach on that item.

Boy, thank you for the question and thank you for considering this request for an extension. It's a really viable project that has faced some pretty big headwinds. Council Member Delgado, you asked about tangible milestones in the last four years. We've met with three different development organizations and the challenge we're facing is the pro forma of the project today looks very different than it did When the project was entitled COVID drove escalation in the building industry that is just the cost of doing this job is really different than it was before. The developers brought that to our attention and we are struggling, I mean we're working hard to bring this project to fruition but The reality is between escalation and then, you know as Blake mentioned another pretty significant thing is that the increase in interest rates has not yet come down.

So the cost of getting that we need more money and the cost of getting money has increased. And then on top of that my father has been through a pretty significant illness which really limited our ability to respond to these challenges. We believe in the project, it was I would say in some ways collaboratively created with the City of Moorpark. In response to a need, it's in a fantastic location, it is so close to the transit station and rail line.

It's just we need a little more time to make it happen. Does that answer your question?

Yes, but in two more years we can only predict that costs will probably continue to go up. Are you just hoping for interest rates to come down since it's either cost or interest rates or both?

It's the whole pro forma, getting the thing to pencil. And we're confident that interest rates are going to go down and that our finances will be in a place to get the project started.

So where do they need to come down? At what level do they need to come down to to be able to make this a feasible project?

Yeah I don't know that I can just answer that off the top of my head. We have been seeking development partners so some of this is a kind of dance or collaboration with a development group So it's an extremely viable project, so it's got that going

for us. It's a great project. I've been looking forward to seeing it. If you're

interested in being involved in it we'd invite you too. You can make all this

happen next week! Okay thank you very much. I do have one question for staff. If this project were to expire what could potentially happen with the lot and another developer?

You don't want to know. Thank you, Council Member. So the entitlements that we're talking about, the vesting tentative map and the residential plan development permit, they are also linked to a development agreement which I believe will be valid through 2040. Is that right,

Blake?

2042. 42, thank you. So that would put the applicant in a position if the entitlements were to expire to seek to either re-entitle the project as it was proposed or bring back some alternative project and seek an amendment to their development agreements. Those are kind of the scenarios we'd looking at, but essentially in a lot of ways Mr. Chu would be starting over he would have to design that project go through Planning Commission City Council and environmental review

Okay, thank you What a one-year extension suffice or are you looking for two?

I think two is safer. I think two is safer

okay Where's your plan if we're in the same spot in two years

Well, I think that we are going to be able to adjust the scope of the project to keep that from happening. So it's hard. The only thing I could do is stand here and speculate. So I think we can make it happen.

It's

a great project.

Do we have any other public comment?

No, Mr. Mayor, that is the only speaker card I have on this item.

Okay, thank you. Thank you for considering it.

No, I just wanted to hear if they still thought it would be feasible in two years and what exactly they were waiting for besides interest rates It's fine, I mean, I'm fine with moving it forward. I just wanted to make sure we were gonna continue to extend and extend and extend on a project that might not be viable anymore.

Right, the alternative to approving it doesn't sound

favorable at all. Correct.

Multiple reasons. Any other comments or discussions?

Okay.

You wanna

do it? Nope, sure. We grant the extension

Second. Motion and a second by Means. And we'll need a roll call vote.

Thank you Mayor and members of the City Council. In April of last year, staff presented an agenda report to the City Council regarding the creation of a citywide community facilities district. As you recall this was completed in parallel with the Beltramo Ranch CFD. However because CFDs offer a wide range of facilities and services that could be included in a citywide CFD, the City Council directed staff to bring back a future agenda report regarding The creation of a citywide CFD that also considers funding for future police services that will be necessary as the city nears build-out. So in October of last year, the City Council approved an agreement with SCI Consulting Group to assist the city with the formation of a citywide CFD. The agreement included a three phased approach in which phase one involves the preparation of a financial impact analysis related to police services So with that, I would like to introduce Blair Ross with SCI who will summarize the findings outlined in the FIA.

Blair is attending us via Zoom tonight so and I will go through the presentation for Blair.

Well thank you Jeremy and good evening Mayor Pro Tem and council members. For tonight, I think it'd be best if I just started with the question that this analysis was prepared to answer. So Moorpark does not have its own police department. The city contracts with the Ventura County Sheriff's Office and that contract is really the single largest service cost in the city's general fund As the City approves new development under its General Plan 2050, the Sheriff's Office has to expand what it provides.

So there's going to be more residents, more businesses, more calls, more deployed hours etc., and that expansion has a cost And the city pays that under the contract. So now new development also generates revenue, property tax revenue, sales tax revenue, other reoccurring revenue sources So the question that we are asked, that we're asking is relatively straightforward.

Will the revenue covered by the added police costs generated by city-approved new development projects, will it, will the revenue cover those costs or will there be a shortfall that would negatively impact the City's General Fund and the City's finances? So one point I'd like to emphasize before we go any further, you know whatever comes out of this applies only to future development that hasn't been built yet. There's nothing here that changes what existing residents or businesses pay So to answer that question, the first thing that we need to do is to measure the growth itself. So Jeremy if you could advance the next slide?

So every number in this analysis traces back to the city's general plan We didn't build any of our own growth forecasts. We used the city's adopted forecast, so the analysis rests on that document that's already been approved by the council and that plan projects roughly 5500 new dwelling units and another 7300 new jobs at build out of the plan. So we need So for this analysis, we need one number that captures how much police demand that that growth is going to generate.

And that's what that surface population represents. It's a combination of residents and workers because the police serve the people who live here and who work here and shop here right? So applied to those city projections, new development is projected to add about 19,700 growth in the service population. So from roughly 40,000 to 60,000 and again that's service population. That single number drives everything on the next two slides So that's the, this is the demand side. So the next question is what are the costs to serve that new demand?

What are the cost attributable to that new demand? So the approach here is deliberately simple. We're not projecting a future Police budget. We're not trying to anticipate what that's going to look like in 10, 15, 20 years. What we're asking is what is the cost to serve one person today and then use that to apply to future growth? So there's two things about what's in that costs. So first we've counted only reoccurring costs, so the cost of the current contract and vehicles and equipment that it provides.

So capital facilities like police stations and substations are handled through development impact fees, so they're not included in this analysis. Secondly, we only use part of the budget that actually grows with the city. So some departments grow a lot with service population and some budgets barely at all. So we went through department by department in keeping only that share that responds to growth.

And of course police is at the top of that range but roughly that works out to be total budget about 46% of the total And then breaking that down, that results to about $223 per person per year or roughly 4.4 million dollars annually at build-out. And again we're talking at build-out but again this is in current dollars. That's typical with this type of an analysis.

So that is actually the costs so the next side is the other side of the ledger which is the revenues So, new development of course is gonna generate real revenue and in this analysis we've given it full credit for all of it. Property tax revenue, property tax in lieu of vehicle license fee, transfer taxes, sales taxes and any other reoccurring general fund revenue sources. And that's about $8.3 million a year at build out But not all of that revenue is available for police. It funds a whole range of city services, and so we credited new development with police's share of that which is using the same figure 46.3%. So that comes down to roughly $3.8 million.

So setting against that $4.4 million in cost, and then we credit 3.8, that covers about 87% of its own police costs. So it's close but it doesn't quite get there. There is a short call projected to come from residential development. Commercial and industrial development are approximately cost neutral. So I would characterize them that way, rather than a surplus because the results are sensitive to assumptions about future residential sales that nobody can really pin down at this stage. So that's sort of the gap.

It's not significant but it can add up annually and over time So here's what it would look like on a per unit basis. So this table takes the shortfall and turns it into a per-unit number, so the residential gap is divided by the units that are projected to be generated according to the general plan and that's roughly $111 a year for a new single family home and then $195 a year for a multi-family housing unit.

So two things to note, there's no citywide proposed rate for commercial and industrial because those categories are already sort of covering their police costs. And these rates recover only the gap So they don't really, so they don't recover the full cost of police services. Now if you notice there's a difference between the two housing types single family and multifamily That rate isn't what it costs to serve those residents, those housing units.

It's what's left over after we account for the revenue that's generated by each types of these projects. So multifamily actually costs less to serve, but it also generates a lot less revenue because property tax revenue is based upon assessed value. And so I believe we have a single family home on average is about $950,000 a unit. But a multi-family apartment unit on average is about half a million dollars.

So there's that lot less revenue. So the single family ends up covering about 86% of its own cost But multifamily covers only 60% of the costs. And so that's the difference between the two rates. So next, let me show you that calculation in the three steps really just simply. And so this is really the whole analysis on one slide. So what it takes to serve this new population, again in current dollars, is about $4.4 million a year.

New development is going to generate about 8.3 million in revenue and that share that's attributable to police services is about 3.8 So subtracting that from $4.4 million of cost, you're left with an unfunded amount. And then we simply take for the two, the single family and the multi-family residential categories, we just take those deficits divided by the projected number of units to get the cost per year for each.

So again, I wanna just sort of underline one thing here. So these are just planning level figures. These are not the proposed actual tax rates. So they don't include CFD administration. They don't include annual escalations. They don't include other policy directions from the council. So this is just one phase that sort a foundation for work to occur when we go to start to form the citywide CFD.

And at that citywide formation, the rate and the method of how these special taxes are determined one will be a maximum tax which will set the ceiling and can't be and can be lowered but never raised And then underneath that will be this annual special tax. It's often a formula, which is what the council year after year will use to determine the levies for that upcoming fiscal year and it would be more tied to an analysis like this which supports it.

So the council keeps room at the top But the levy stays anchored to some actual costs. But again, that's work that hasn't been done yet would come in the future. So these are how the numbers are built. Let me close with where we go from here and then the next slide. So again as I mentioned this is Really like the first phase, it establishes an approximate cost basis. The second phase is the council gives direction is to form the citywide CFD conceptually the one that we brought forward due to last year and we paused on it because you wanted to consider incorporating police services as a cost component And so that's the citywide CFDs where the actual rate structure is written.

And so the CFD would be built upon to carry two cost components, if you recall. So there'd be the police services cost component which is what we're discussing today. And then alongside that would be the project-specific components, which would be those services that would be unique to the residential development project in question and so that can vary from project to project depending upon the unique aspects of what's in that development project And then additionally, we would propose creating tax zones.

So that the first development that forms a CFD and then subsequent annexations into that CFD would be put in its own tax zone, and would have its own rate for each based upon the police services component and these project-specific components. And they can vary from tax zone to stack zone with uniformity for the CFD So with that, I'll turn it back to Jeremy.

So thank you, Baylor. So City Council we are simply asking that you would consider this fiscal impact analysis for a citywide community facilities district and provide direction to staff particularly should we move forward with this as we develop the citywide CFD. That concludes our report. Thank you. Are there any questions of staff?

Mr. Meehan?

Okay. Will the CFD rates and assumptions be recalculated periodically? If actual development, city revenues and share of contract costs differ materially from the projections.

Yes as Blair mentioned we're what we would do is we would establish a maximum assessment and that is the maximum we could ever tax. The actual cost that would be levied for each of the homeowners would be based directly on what our contractual costs are So it's the actual cost of what we budget every year for police services. Similar how we structure LMDs in the city, we have an LMD for 20 various communities.

There's a maximum ceiling on those LMDs, which is the maximum rate. That rate escalates every year with CPI. However, every year we put together our budget for every LMD so the amount of money that's actually levied from those property owners is based on our actual budget rather than any assumptions.

Got one more. Can you clarify which developments would be subject to the CFD from the outset and which sorry would be included only voluntary voluntarily?

So right now we have seven developments that have development agreements Those development agreements are very specific to what can be included in the CFD, specifically landscaping storm drain facilities and things like that. They do not include police services, hitch ranch, specific communities, the project we just heard about and several others that have all been entitled and have development agreements.

So we would need voluntary concurrence from those developers to include this police services component into the CFDs as those are developed in the future. We've spoken to some of them already, there's no real objection to it, it's just at the time They didn't know the cost and they didn't know the cost of the CFD, and I think those will be evaluated as we move in towards developing those CFDs.

Thank you for the explanation, I appreciate it a lot. Good to see you again Blair. When you talked about step two annual escalations and the cap with Prop 13 being a thing in California provided that it doesn't change no matter what cap we set our revenues are going to be limited at build out to whatever Prop 13 will allow us to continue to collect at least from that portion of our revenue So if you go in into the future looking far out, we will. Will we eventually hit that

cap? Well, the plan is no getting there is what's going to be tricky and I think Blair could probably describe it a little bit more as we develop the final cap. How would that caps can be established You know, the cap does escalate annually with CPI and we could put a rate of what that escalation can be. I believe we don't have to set it at CPI. It could be a little higher than CPI and that's something I think we'll get into a lot more discussion when we bring that report to you once we've really developed that but ultimately the goal would be that we would never reach that cap That that escalation would cover those costs. And that's again, it's the maximum and we wanna quite frankly want to keep it a little higher so that we never reach it and would have to go out to the homeowners to vote.

I don't give anything additional you wanna add Blair?

Yeah, I agree. The cap is really to... the maximum special tax is really to provide for some sustainability and longevity for the CFD. So you just always want to structure that cap to anticipate contingencies of cost escalation, inflation higher than the CPI if the contract ends up going up 10% for one reason or another above and beyond Inflationary adjustment, you want to be able to recover those costs. And so you don't want ever get to a point where it's outdated or you're having a shortfall that your actual costs exceed the maximum cap.