Committee, which of course is a committee of the whole will come to order.

Would the clerk please call the role so that we might establish a quorum?

Thank you, Councilmember Warren, Councilmember Harris, Councilmember Carr, Councilmember Jennings, Council Member Garrett.

Councilmember Schneer and Mayor Steinberg.

I am here.

Very good.

We do have a quorum, and um we'll think the other members will be here soon.

So we have um several items here.

Um and again, the way this works for members of the public is in large part because of the measure you uh the passage measure you and the extra importance of the budget.

We made the budget committee, the committee of the whole.

And so we meet now, and what we hear now may uh go to the consent calendar for the full city council, or it may be a discussion item for the full city council, depending upon what the what the requested report backs are and and and how we might want to continue the discussion.

But this is not the full city council, it's the budget and audit committee, which is the full city council.

And round and round we go.

Okay.

Are there any members of the public uh here to testify?

Okay, what time is the next session?

Move consent.

The consent calendar has been moved.

Uh the city auditors report for the fourth quarter, moved and seconded.

Uh all in favor, please say aye.

Aye.

Aye, opposed abstain.

That passes.

We now move to item two, which is the auditors fiscal impact analysis of the general plan at build out in the year 2035.

Thank you very much.

All right.

Good afternoon, Mayor Steinberg and members of the budget and audit committee.

My name is Jorge Seguera.

I'm the Sacramento City Auditor.

With me today is um Amy Lapkin, uh, the project manager for uh EPS, who will be presenting uh this report.

Uh their firm uh provided uh the analysis and work to create the model that you'll be hearing about today and to do the analysis.

Uh the recommendation that is before you is that you pass a motion accepting the city auditors fiscal impact analysis of the 2035 general plan use at build out and to forward to the city council for final approval.

With that said, I'm gonna have uh Amy come in and uh actually present the presentation okay.

Good afternoon, Mayor and members of the budget and audit committee.

As Jorge mentioned, my name is Amy Lappin, and I'm an executive vice president at Economic and Planning Systems.

I served as project manager overseeing the day-to-day operations of this project over the last year.

I am pleased to present this overview of the fiscal impact analysis of the 2035 general plan uses at build-out, and I'm happy to answer any detailed questions you may have at the end of this presentation.

Following the an introduction of the team and city staff who contributed review and input, I'll provide an overview of the project background methodology and timeline and project deliverables, including the recently completed final report, the envisioned tomorrow fiscal impact analysis model, and the project website.

The consulting team consisted of EPS as the lead consultant and Cascadia partners as a subconsultant to EPS.

EPS is a full-service urban economics consulting firm with decades of experience in public finance, real estate economics, regional economics, and land use policy with an office here in Sacramento.

Cascadia Partners, based in Portland, Oregon, is a firm whose staff has significant experience in the fields of planning, design, development, finance, and urban analytics.

Cascadia Partners had developed a mapping tool which allowed for the use of evaluating the impacts of different land use scenarios called envision tomorrow.

Envision tomorrow was customized with city-specific data and integrated with EPS's fiscal impact analysis model for this project.

The EPS team collaborated closely with city staff throughout the duration of this project to review and inform assumptions contained in the analysis.

We worked closely with the auditor's office, the mayor's office, council member Steve Hansen's office, and the city departments of finance, community development, police, fire, economic development, and information technology.

EPS and Select City staff also met with the Sacramento Area Council of Governments as they are currently using a customized version of Envision Tomorrow to develop their 2020 MTP SCS and could be a resource to staff in their use of Envision Tomorrow.

The impetus for this project was that the city desired the development of a fiscal impact analysis modeling tool that could be used as an input for evaluating discretionary land use decisions and prioritizing economic development investments while achieving economic sustainability in the city.

The intention of the project for the city was to answer key questions, including where will the city's key revenues and expenditures be derived geographically.

How do different areas in the city compare when tax revenues are normalized on a per acre basis?

And what are the impacts of various land uses on the city's municipal budget?

So the EPS team developed the envision tomorrow fiscal impact analysis modeling tool to be responsive to these questions.

The primary deliverable is an interactive and modifiable spreadsheet and mapping tool to be used by city staff to review the fiscal impacts of development, which is one of the many metrics that can be used to evaluate both near-term and long-term economic development efforts.

The model developed for the city and described in the final report estimates the overall fiscal impacts to the city's general fund as well as other land use details based on incremental new development between 2016, which was the most recent year for which our team could obtain existing development totals in the city at a parcel level throughout through build-out of the 2035 general plan.

As such, key inputs into the model included determining the net new development associated with build out of the 2035 general plan, as well as performing a detailed but uh general fund budget analysis in order to understand how new residential and non-residential development impacts city general fund revenues and expenditures based on existing fiscal conditions.

As mentioned, our team worked closely with city staff throughout the project, reviewing assumptions, vetting results, and refining the narrative contained in the final report and the project website.

We also conducted a half-day training session with staff to walk through the model and mapping tool in order to provide guidance for future analysis.

This slide is a timeline which illustrates the project schedule, identifying the commencement of the project last August, various meetings with city staff and other stakeholders to discuss the components of the analysis, preparation of draft models and reports, additional review and comment, and then preparation of the final report, model, and website over the last few months.

So one of the deliverables, as I mentioned, for this project was the final report.

The EPS team prepared the final report this month, which summarizes the impacts of the base land use scenario, which is what we called net new build-out of the 2035 general plan on the city's general fund, including both revenues and expenditures associated with the half cent measure U sales tax rate, which was in place during the fiscal year 1819 budget.

I realize that's not the rate now.