AgdaPkt 2018-02-26 Joint SA PFA - Laserfiche WebLink

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7.A - Page 12 the reductions by department, along with the associated impacts, is found in the chart below. Seeking New Revenue Sources In concert with cost reductions, the City is currently seeking new revenue options. Last fiscal year, the City Council took the first step in generating new revenue by approving fee increases that will generate an estimated $2.0 million in new revenue annually. It is important to note that most of this revenue is associated with development activity, and the pace of that activity will slow in the future. Because of the cyclical nature of development, many services are provided via contracts with professional firms, rather than regular employees. In addition, based on City Council direction last fall, staff is developing a phased approach to establishing local cannabis regulations, which could generate a conservative estimate of $300,000 in new annual revenue. This spring, staff are determining the feasibility of locally controlled funding from community -supported revenue measures in an effort to prevent cuts that would more drastically affect essential City services. In March, the Council will receive a presentation on the feasibility of placing revenue measures on the November 2018 ballot. Many residents have expressed concern about street sweeping and parking enforcement, and staff is exploring the possibility of dedicated fees that would enhance these services without affecting the General Fund. These services could be provided through solid waste fees, and results of a solid waste fee study will be brought to the Council in March. Staff is also exploring a new stormwater fee, which would free up gas tax revenue for other uses. Without new revenues, staff projects deficits beginning in FY 2019-20. Creating Efficiencies and Increasing Internal Controls Staff is also seeking out opportunities to create efficiencies (such as evaluating citywide contracts and implementing a new finance system), increase internal controls (such as updating financial policies), and seeking out new ways of performing tasks (such as utilizing shared services and seeking new partnerships). Overall, the Financial Sustainability Plan is designed as a forward -thinking, long-term approach to tackling the fiscal challenges the City is currently facing, and to preparing for risks that are on the horizon.