All right, we're gonna call this meeting uh to order of the City of Sacramento budget and audit committee report at uh 103 p.m.

If the clerk could um uh uh call the role and establish a quorum.

My gosh.

Thank you.

Councilmember Jennings here, Councilmember Vang here, Mayor Steinberg expected momentarily, and Vice Chair Gedda.

Here.

Thank you, madam clerk.

Um, if uh we could start uh with the land acknowledgement.

Uh Councilmember Vang, can you lead us in the land acknowledgement and then the Pledge of Allegiance?

Please rise for the opening acknowledgement in honor of Sacramento's indigenous indigenous peoples and tribal land.

To the original people of this land, the Nissanon people, the Southern Maidu Valley and Plains Miwok, Patwin and Wintus peoples, and the people of Walton Rancher, Sacramento's only federally recognized tribe.

May we acknowledge and honor the native people who came before us and still walk besides of today on these ancestral lands by choosing to gather today in the active practice of acknowledgement and appreciation for Sacramento's indigenous peoples, history contributions, and lives.

Let's also do the Pledge of Allegiance, which please salute.

I pledge allegiance to the flag of the United States of America and to the Republic for which it stands.

One nation under God, indivisible with liberty and justice for all.

Thank you very much.

Uh okay, Madam Clerk, if you could read the first item.

First item is funding of the reduced residential development impact fees for affordable dwelling units program.

Good afternoon, Chair and members of the committee.

Matt Hurdle, long-range planning manager.

In October 2018, council approved the reduced development impact fees for affordable dwelling units.

This program reduces development impact fees for new affordable dwelling units to a zero dollar rate, thereby reducing financial barriers and stimulating affordable housing production.

As a reminder, the mitigation fee act in Sacramento City Code authorizes the City of Sacramento to impose fees on development projects to fray the cost to the city of new or additional public facilities that are needed because of the development project.

These impact fees pay for critical infrastructure that supports infill development and affordable housing throughout the city.

A few representative examples include the Third Street Sewer Relief Project.

This backbone infrastructure was necessary for the initial phase of the development for the rail yards and river district.

This infrastructure will support the development of these areas, including the AJ mixed use development opening in 2023, with 345 units of housing, 69 of which are affordable.

Located in the southern southeastern portion of the city, the Shasta Water Facility is increasing water supply and water pressure, especially for fire suppression throughout the city.

And the Central City Specific Plan and Public Facilities Plan adopted in 2018, establish a fee to fund public improvements to local transportation, utilities, and infrastructure to support infill development.

From the start of the program on October 30th, 2018 through June 30th, 2022, 2,076 affordable dwelling units participated.

This has resulted in impact fee revenue losses of over 9.9 million.

However, this only equates to $4,800 per affordable unit.

At the October 25th, 2022 council meeting, staff recommended the funding allocations contained in today's report.

However, council directs the staff to first take the funding request to the budget audit committee for consideration.

And if approved by committee today, the item will go to council for consideration on December 6th.

In conclusion, staff recommends that the budget audit committee pass a motion recommending the city council adopt a resolution authorizing the city manager to use year-end resources from fiscal year 21-22 and or fiscal year 22-23 to cover the impact fee revenue losses between fiscal year 18-19 through fiscal year 21-22.

And authorize three million dollars from the comprehensive siding plan to continue the program through the end of this fiscal year and beyond if funds are not fully exhausted.

The resolution going to council on December 6th will specify that once the three million dollars of the comprehensive study plan funds are expended, the program will sunset to continue the program.

Additional funding sources will need to be identified.

And going forward, staff anticipates the program will cost up to two and a half million dollars annually.

Staff will be tracking program participation and costs regularly.

This concludes my presentation and happy to take any questions.

Thank you.

Thank you, Mr.

Hurdle, and I just wanted to publicly uh recognize your work and that of your team on uh this housing effort.

I think the recent reports and the amount of construction that we've had for a variety of housing, both not just affordable permanent housing, but also mixed income has been uh I think uh uh critically needed for our city.

Um with that, madam clerk.

Do you mind if we uh go to members of the public on uh on this item?

Yes, I have one speaker in chambers, Peter Cohen.

Mr.

Cohen.

Hey, do you want to remember uh remind members of the public if you want to speak on this item, please raise your hand at this time?

Good afternoon.

I do have a letter to submit if I could leave it here on the front table.

Yeah.

Uh my name is Peter Cohen.

I'm with the Sacramento Housing Alliance.

Um relatively new to the organization, so I look forward to meeting all of you and working with you.

Uh we're here today to follow up on our support from August when uh the council was considering this item and wanted to just encourage you again to proceed.

This has been an excellent program that's produced results.