R EVENUE D ISCUSSION F OLLOW U P & D IRECTION A GENDA I TEM 12.1 C ITY C OUNCIL M EETING A PRIL 20, 2016

C ITY OF M ENIFEE I LOVE EVERYTHING ABOUT WHAT WE ARE DOING IN THIS CITY, NEW POLICY (GP, EDC, ETC.), NEW DEVELOPMENT (CIP PROGRAM, CONSTRUCTION EVERYWHERE ), NEW AMENITIES ( NEW PARKS, NEW SHOPPING ), OUR INCREDIBLE STAFF ALWAYS FINDING A WAY TO DO MORE WITH LESS, THE COUNCIL ’ S CLEAR DIRECTION AND SUPPORT, THE CREATION OF A M ENIFEE WAY OF DOING BUSINESS - FRIENDLY … SO DELIVERING THIS REPORT IS A BIT TROUBLING … ITS LIKE WHEN YOU START TALKING ABOUT YOUR CHILDREN AND WHAT YOU WANT FOR THEM BUT YOURE JUST NOT SURE HOW THEY ARE GOING TO TURN OUT WITHOUT THE RIGHT TOOLS … AND OPPORTUNITIES … T HE C ITY HAS SEEN THE FOLLOWING IN EVERY YEAR OF ITS EXISTENCE AND STILL PUSHED THROUGH TO BUILD A WONDERFUL COMMUNITY … I NCREASED COST OF DOING BUSINESS P OLICE AND FIRE INCREASES R OAD MONEY REDUCED I NFRASTRUCTURE FINANCING ASSISTANCE DIFFICULT TO GET M ENIFEE HAS MANY NEEDS AND OUR RESIDENTS DESERVE THE BEST FROM OUR GROWING, BEAUTIFUL CITY … T HOUGHTS ABOUT THIS REPORT …

C ITY F UNDING /R EVENUE S TRUCTURE BY D EPARTMENT G ENERAL F UND -A DMINISTRATION & G EN S UPPLIES & O VERHEAD -B UILDING & S AFETY -C ITY C LERK -C ODE E NFORCEMENT -C OMMUNITY S ERVICES (A DMIN ) -E CONOMIC D EVELOPMENT -E NGINEERING -F INANCE -P LANNING CFD*, CSA*, LLMD*, DIF* C OMMUNITY S ERVICES P ROGRAMMING, CIP, S TAFFING, O PERATIONS & M AINTENANCE, L IGHTING & L ANDSCAPING G AS T AX *, M EAS. A*, CFD*, LLMD*, DIF* P UBLIC W ORKS S TREET REPAIR & MAINTENANCE, ROW I MPROVEMENTS, P ROJECTS, CIP, S TAFFING, O PS. & M AINT., S TREET S WEEPING D EVELOPMENT F EES B UILDING & I NSPECTION E NGINEERING & I NSPECTION P LANNING & C OMMISSION *FUNDS CANNOT BE USED FOR POLICE OR FIRE PERSONNEL/CONTRACT COSTS

R EVENUE D ISCUSSION F OLLOW U P & D IRECTION O N A PRIL 6, 2016, T HE C ITY C OUNCIL WAS PRESENTED INFORMATION REGARDING C ITY ’ S G ENERAL F UND REVENUE GENERATING POSITION VS EXPENDITURES OVER THE NEXT 5 YEARS : (12) M AJOR R EVENUE GF ASSUMPTIONS:  NO VLF = $4.4M/YR (16/17*); $4.5M (17/18)** *88,000 POP ; **90,000 POP X $50  N EW H OME PRICES 3% +/ YR ($372,000)  A SSESSED VALUE + 1.5% EACH YEAR  500 NEW HOMES / YR  2.9 PERSONS P /SF DU  S ALES T AX REVENUE I NCREASE 8%/ YR  F RANCHISE F EES INCREASE 4%/ YR  B LDG P ERMITS : $4,200/ HOME ; $1.3M COM  P LAN C HECK R EVIEWS $2.5M/ YR  E NGINEERING, P LAN C HECK $1.5 M/ YR  TOT + 8%/ YR  A LL OTHER GF REVENUES + 5.0%/YR  C OUNTY A UGMENTATION : $1.0 M/YR ( SUNSETS IN FY 2018). (7) MAJOR EXPENDITURE GF ASSUMPTIONS  POLICE SERVICES 5 – 7 1/2%/YR ($11.4M) 19% + OVER THE PAST 3 YEARS ALONE … (NO ADDITIONAL OFFICERS)  FIRE SERVICES 5% PER YEAR ($8.3M) COUNTY 2-YR PROPOSAL FY16/17 ($9.46M) & FY17/18 ($9.975) (NO ADDITIONAL FIREFIGHTERS)  NO GF + IN STAFFING NO + CITY SERVICES 3 YR (CODE) ALL NEW STAFFING MOVED FROM GF OR REDUCED/COMBINED POSITIONS TO SAVE $  EMPLOYER’S PERS RATE 1% PER YEAR. CURRENT RATE OF 11.99%, FY  ELIGIBLE EMPLOYEES RECEIVE NORMAL 5% STEP UNTIL TOP STEP ~NO COST OF LIVING ADJUSTMENTS (COLA) TO EMPLOYEES IN CITY’S HISTORY ~WILL ATTEMPT TO + SALARY SCHEDULE W/CC STUDY 2016  NO NEW CAPITAL EQUIPMENT FROM THE GENERAL FUND – DIF FUNDED  TOTAL GF EXPENDITURES INCREASING 5.5%/YR

F INANCIAL F ORECAST 5 Y EAR P ROJECTIONS AGGREGATE $20 MILLION DEFICIT -$2,145,695 -$2,699,996 -$5,754,506 S TATUS Q UO =N O I NCREASE IN S TAFF /P UBLIC S AFETY OR S ERVICES S LOW G ROWING R EVENUES {P ROPERTY T AXES (3%), S ALES T AXES (8%), M ISC R EVENUE (5%)} N O N EW R EVENUE G ROWTH B ASE Annual Gap Current Year $34.4 M ILLION $36.3 M ILLION $29.6 M ILLION $30.5 M ILLION * County Augmentation Sunsets *Key Take-Away

NO V EHICLE L ICENSE F EE (VLF) R EVENUE – NOW $4,269,250* & RISING. 482 CA MUNICIPALITIES & ONLY M ENIFEE, W ILDOMAR, E ASTVALE & J URUPA V ALLEY ARE EXCLUDED FROM THESE FUNDS *FY2015/2016 ( BASED ON $50 PER / CAPITA ON POPULATION OF 85,385) NO CFD P UBLIC S AFETY R EVENUE – T HE FOLLOWING LOCAL CITIES HAVE CREATED CFD’ S FOR P UBLIC S AFETY ON N EW H OUSING D EVELOPMENTS : ✦ P ERRIS ✦ P ERRIS (2) (2001-3, $317/$63 P / DU ); ✦ **L AKE E LSINORE ✦ **L AKE E LSINORE (2) (2003-1, $373/$186 P / DU ); (2007-1, $477/$238 P / DU ); ✦ W ILDOMAR ✦ W ILDOMAR (1) (2013-1, $244/$173 P / DU ); ✦ S AN J ACINTO ✦ S AN J ACINTO (1) (2003-1, $473/$354 P / DU ); ✦ P ALM S PRINGS ✦ P ALM S PRINGS (1) (2005-1, $357/$300 P / DU ); ✦ D ESERT H OT S PRINGS ✦ D ESERT H OT S PRINGS (1) (PTAX-2, $277/$155 P / DU ) **F ASTEST GROWING C ITY IN R IVERSIDE C OUNTY NOT STUNTED BY CFD S NO W ATER, S EWER OR E LECTRIC U TILITIES - TO SHIFT EXPENSES FROM GENERAL FUND OR COMBINE W / RATER PAYER SERVICES S OURCES OF R EVENUE M ENIFEE D OES N OT R ECEIVE … R EVENUE D ISCUSSION F OLLOW U P & D IRECTION

R ECOMMENDATION FROM A PRIL 6, R ECEIVE PRESENTATION AND PROVIDE DIRECTION 2. A UTHORIZE THE C ITY M ANAGER TO ENGAGE CONSULTANTS AND / OR EXPERTS IN SUBJECT AREA TO DESIGN AND CONDUCT COMMUNITY OUTREACH EFFORTS, IN AN AMOUNT NOT TO EXCEED $50, D ESIGNATE THE P UBLIC S AFETY C OMMITTEE TO PROVIDE FEEDBACK AND GENERAL PROJECT GUIDANCE TO STAFF A S PER THE STAFF REPORT, THE C ITY M ANAGER WOULD RETURN TO C ITY C OUNCIL WITH REPORT DETAILING THE FINDINGS OF COMMUNITY SUPPORT FOR A SALES TAX BALLOT MEASURE FOR N OVEMBER COUNCIL APPOVED & DIRECTED 1. S TAFF TO RETURN AT THE NEXT C OUNCIL M EETING TO DISCUSS AND PROVIDE FOR A VOTE ON 3 OPTIONS, INCLUDING N OVEMBER B ALLOT OR S PECIAL E LECTION NEXT YEAR : S ALES T AX M EASURE ( GENERAL OR PUBLIC SAFETY ) & UUT M EASURE ); A LSO A PPROVAL FOR A CITYWIDE CFD FOR P UBLIC S AFETY THAT WOULD REQUIRE AN ORDINANCE TO FOLLOW 2. D ESIGNATE THE P UBLIC S AFETY C OMMITTEE TO PROVIDE FEEDBACK AND GENERAL PROJECT GUIDANCE TO STAFF MPT A UGUST M OTION

C ITY M ANAGER DRAFTED A MEMO THAT SUPPORTED MPT A UGUST ’ S REQUEST AND PRESENTED TO THE P UBLIC S AFETY C OMMITTEE. T HE C OMMITTEE RECOMMENDED THAT THE C OUNCIL DISCUSS AND APPROVE : 1. C ITYWIDE CFD FOR P UBLIC S AFETY ($516/$381) 2. 1% G ENERAL S ALES T AX M EASURE FOR N OVEMBER 8, 2016 BALLOT R EVENUE D ISCUSSION F OLLOW U P & D IRECTION A S PER THE C OUNCIL ON A PRIL 6, 2016, THE C ITY M ANAGER ENGAGED A CONSULTANT FOR, FM3, FOR $29750, WHICH HAS LED ME TO RECOMMEND THE FOLLOWING CHANGE TO THE REQUEST FROM MPT A UGUST : 1. D ISCUSS AND CONSIDER APPROVAL OF A CITYWIDE CFD FOR P UBLIC S AFETY ON NEW RESIDENTIAL DEVELOPMENT ( SINGLE FAMILY & MULTI FAMILY DWELLING UNITS ) ($516/$381) 2. C ONTINUE TO ASSESS OPPORTUNITIES FOR A BALLOT MEASURE PROPOSAL AND RETURN TO THE C ITY C OUNCIL ON M AY 18, 2016

N EW I NFORMATION FROM C ONSULTANT (FM3): 1. T IME IS NEEDED TO POLL THE COMMUNITY & GAIN VALUABLE PUBLIC OPINION : A. S EEK INFORMATION ABOUT WHAT IS MOST IMPORTANT : P UBLIC SAFETY C ODE ENFORCEMENT R OAD /S TREET R EPAIR I NFRASTRUCTURE P ROJECTS T RAFFIC S OLUTIONS E XPANDED /E NHANCED C ITY S ERVICES B. W HAT TYPE OF BALLOT MEASURE MAY BE SUPPORTED : 1% PUBLIC SAFETY SALES TAX | ½% PS S ALES T AX 1% G ENERAL S ALES T AX | ¾% | ½% U TILITY U SER T AX | W HAT % 2.FM3 WOULD PROVIDE FEEDBACK ON PUBLIC OPINION 3.FM3 WOULD PRODUCE BALLOT MEASURE LANGUAGE R EVENUE D ISCUSSION F OLLOW U P & D IRECTION

R EVISED R ECOMMENDATION, THAT THE C ITY C OUNCIL : R EVENUE D ISCUSSION F OLLOW U P & D IRECTION 1. D ISCUSS AND CONSIDER APPROVAL OF A CITYWIDE CFD FOR P UBLIC S AFETY ON NEW RESIDENTIAL DEVELOPMENT ( SINGLE FAMILY & MULTI FAMILY DWELLING UNITS ) ($516/$381) 2. C ONTINUE TO ASSESS OPPORTUNITIES FOR A BALLOT MEASURE PROPOSAL AND RETURN TO THE C ITY C OUNCIL ON M AY 18, 2016

R EVENUE A SSUMPTIONS IN B UILDING THE F ORECAST M ODEL FOR THE G ENERAL F UND ASSUMPTIONS ALL RELATING TO THE G ENERAL F UND :  SALE PRICE OF N EW H OME PRICES INCREASE 3% EACH YEAR (N OW $372,000)  A SSESSED VALUE INCREASES 1.5% EACH YEAR  500 NEW HOMES EACH YEAR  2.9 PERSONS PER SINGLE FAMILY HOME  S ALES T AX REVENUE WILL I NCREASE 8% EACH YEAR  F RANCHISE F EES INCREASE 4% PER YEAR  B UILDING P ERMITS : $4,200/ HOME ; $1.3M TOTAL FOR COMMERCIAL  P LAN C HECK R EVIEWS $2.5 M ILLION EACH YEAR  E NGINEERING D EPARTMENT, P LAN C HECK R EVIEW 1.5 M ILLION EACH YEAR  TOT INCREASE 8% PER YEAR  A LL OTHER G ENERAL F UND REVENUES INCREASE 5.0%/YR  C OUNTY A UGMENTATION : $1.0 M ILLION /YR ( SUNSETS IN FY 2018). (5 Y EAR P ROJECTION )

E XPENDITURE A SSUMPTIONS IN B UILDING THE F ORECAST M ODEL FOR THE G ENERAL F UND  P OLICE S ERVICES 5 – 7 1/2% PER YEAR ($11.4M) 19% INCREASE OVER THE PAST 3 YEARS ALONE … (N O ADDITIONAL O FFICERS )  F IRE S ERVICES 5% PER YEAR ($8.3M) – NEW C OUNTY 2- YEAR PROPOSAL FY16/17 ($9.46M) & FY17/18 ($9.975) (N O ADDITIONAL F IREFIGHTERS )  N O GF INCREASE IN STAFFING / NO INCREASE IN C ITY S ERVICES PAST 3 YEARS ALL NEW STAFFING MOVED FROM GF OR REDUCED / COMBINED POSITIONS TO SAVE $  E MPLOYER ’ S PERS RATE 1% PER YEAR. C URRENT RATE OF 11.99%, AND FY  E LIGIBLE EMPLOYEES RECEIVE NORMAL 5% STEP INCREASE UNTIL TOP STEP – ~N O COST OF LIVING ADJUSTMENTS (COLA) TO EMPLOYEES IN C ITY ’ S HISTORY ~W ILL ATTEMPT TO INCREASE SALARY SCHEDULE VIA C LASS /C OMP S TUDY 2016  N O NEW C APITAL E QUIPMENT FROM THE G ENERAL F UND – DIF FUNDED  T OTAL G ENERAL F UND E XPENDITURES INCREASING 5.5% PER YEAR (5 Y EAR P ROJECTION )

2015/16 E XPENDITURES 2015/16 R EVENUES T WO -P RONGED A PPROACH TO C HALLENGE 1) E XPENDITURE R EDUCTIONS (R EDUCED IN 2013/14, 2014/15 & 2015/16) 2) R EVENUE G ENERATING O PTIONS Police 36% Fire 28% Police 36% 13% I NCREASE IN 64% OF TOTAL BUDGET CANNOT BE OVERCOME BY 8% INCREASE IN SALES TAX & 2% INCREASE IN PROPERTY TAX ANNUALLY

O N -G OING A NNUAL S OLUTIONS E XPENDITURE R EDUCTION E FFORTS ✦ N O N EW G ENERAL F UND P OSITIONS *** W / O EITHER STAFF REDUCTIONS VIA REORGANIZATIONS OR CONVERTING CONSULTANTS TO FULL TIME STAFF OVER THE PAST 3 YEARS ***(D OES NOT INCLUDE CSD OR PW/E NG. – FUNDED OUTSIDE GF) ✦ R EDUCED TRAINING & EDUCATION OPPORTUNITIES ✦ R EDUCED EXPENSES IN ALL CATEGORIES IN ALL DEPARTMENTS ✦ S HIFTED AS MANY EXPENSES POSSIBLE OFF G ENERAL F UND ✦ N EGOTIATED C ONTRACT C OST R EDUCTIONS

✦ U PCOMING C OST OF S ERVICES S TUDY U PDATE ✦ P ERFORMED U TILITY E FFICIENCY S TUDY /U TILITY A UDIT IN C ITY - OWNED F ACILITIES ✦ U PCOMING D EVELOPMENT I MPACT F EE U PDATE ✦ S TAFF /C ONSULTANT C ONSOLIDATIONS ✦ R EVIEWING ALL CONTRACTS TO IDENTIFY COST SAVING OPPORTUNITIES ✦ C OLLABORATING C ITIES RFP FOR JPA S ERVICES ✦ S HERIFF ’ S D EPARTMENT OFFERED TO DISCUSS RATE ISSUES WITH EACH CITY SEPARATELY (Continued) O N -G OING A NNUAL S OLUTIONS E XPENDITURE R EDUCTION E FFORTS

E CONOMIC R ELATED S TUDIES : ✦ H OTEL F EASIBILITY S TUDY ✦ A UTO M ALL F EASIBILITY S TUDY ✦ I NDUSTRIAL P ARK O VERLAY /B USINESS P ARK P LAN ✦ B USINESS I NCENTIVE O RDINANCE ✦ M C C ALL M EDICAL C ORRIDOR O VERLAY ✦ HDL S TUDIES ✦ D ERRIGO S TUDIES O THER E FFORTS : ✦ W EBSITE OVERHAUL ✦ U PDATED ED M ATERIALS / C ITYWIDE B RANDING ✦ I NFRASTRUCTURE I MPROVEMENTS ✦ C OMMUNITY S ERVICES D EPT IMPROVING Q UALITY OF L IFE P OTENTIAL S OLUTIONS E FFORTS TO S TIMULATE L OCAL E CONOMY & G ENERATE R EVENUE *ICSC RECON *ICSC S AN D IEGO *M ENIFEE M ATTERS * E N EWSLETTERS *E CONOMIC D EVELOPMENT N EWSLETTERS *B ROKER M EETINGS *S PEAKING E VENTS *M AYOR R OUND T ABLES *EDC M EMBERSHIP *C HAMBER R IBBON C UTTINGS *B RANDMAN U NIVERSITY C OLLABORATION *M T. S AN J ACINTO C OLLABORATION

P OTENTIAL S OLUTIONS “N EW ” R EVENUE G ENERATING O PTIONS 1. P UBLIC S AFETY S ALES T AX : WOULD ENHANCE REVENUE SPECIFICALLY FOR PUBLIC SAFETY. R EQUIRES 2/3 VOTER APPROVAL AND WOULD BE PAID BY RESIDENTS ONLY. S EEN AS AN ADDITIONAL PARCEL TAX. O NLY TO BE USED FOR PUBLIC SAFETY COSTS ( POLICE & FIRE ). R EVENUE G ENERATING O PTIONS : A NNUAL R EV 5 Y EAR ( ) P UBLIC S AFETY T AX : $2-3M$10-15M T HE C ALCULATION COULD BE BASED ON $50 PER RESIDENTIAL DWELLING UNIT AT 40,000 DWELLING UNITS = $2,000,000, OR ALL PROPERTIES WITHIN THE CITY LIMITS, WHICH MAY BY SOME 60,000 X $50 = $3,000,000.

P OTENTIAL S OLUTIONS “N EW ” R EVENUE G ENERATING O PTIONS 2. S ALES T AX M EASURE : WOULD INCREASE CURRENT LEVY ON RETAIL SALES OF TANGIBLE GOODS PAID BY PURCHASER OF GOODS AT POINT OF SALE INSIDE THE CITY LIMITS. A DDITIONAL 1% WOULD RAISE A MINIMUM OF $7M ANNUALLY AND INCREASES AS SALES TAX INCREASES – SIMPLY DOUBLES CITIES CURRENT RATE OF SALES TAX COLLECTION. G ENERAL BALLOT MEASURE WOULD REQUIRE 50% +1 VOTER APPROVAL AND COULD BE USED FOR ANY G ENERAL F UND NEED : ROADS, INFRASTRUCTURE, POLICE, FIRE, CODE ENFORCEMENT, PERSONNEL, ETC. T HE C ITY ’ S CURRENT ANNUAL SALES TAX REVENUE IS $7,000,000. A SALES TAX MEASURE WOULD CAPTURE SPENDING FROM ANYONE INSIDE THE CITY LIMITS. T RAFFIC COUNTS ALONG THE I215 CORRIDOR (85,000 VEHICLE TRIPS PER DAY ) AND THE N EWPORT C ORRIDOR (~50,000 VEHICLE TRIPS PER DAY ) SUGGEST LARGE GAINS IN THIS AREA FOR THE C ITY. R EVENUE G ENERATING O PTIONS : A NNUAL R EV 5 Y EAR ( ) S ALES T AX M EASURE :1 %$ 7.0M$ 35.0M ½ % $ 3.5M$ 17.5M ¼ % $ 1.75M $ 8.75M

P OTENTIAL S OLUTIONS “N EW ” R EVENUE G ENERATING O PTIONS 3. U TILITY U SER T AX (UUT): WOULD PLACE A LEVY ON USE OF VARIOUS UTILITIES ( I. E. GAS, ELECTRIC, TELECOMMUNICATIONS, ETC.) PAID FOR BY THE UTILITY USER INSIDE THE CITY LIMITS. R EQUIRES 2/3 VOTER APPROVAL, IF SPECIFIC TO AN ENTITY ( POLICE OR FIRE ) OR 50%+1 FOR GENERAL USE. R EVENUE G ENERATING O PTIONS : A NNUAL R EV 5 Y EAR ( ) U TILITY U SERS T AX (UUT) $ 7.2M$36M T HE C ALCULATION COULD BE BASED ON AN AVERAGE MONTHLY BILL FOR ALL UTILITIES WITH A DWELLING UNIT. F OR THE EXAMPLE, $300 PER MONTH, 5% UUT = $15 P / MO. PER DWELLING UNIT = $180 P / YEAR X 40,000 DWELLING UNITS = $7,200,000.

P OTENTIAL S OLUTIONS “N EW ” R EVENUE G ENERATING O PTIONS 5. C OMMUNITY F ACILITY D ISTRICT FOR P UBLIC S AFETY : WOULD ASSESS THE PURCHASERS OF NEW HOMES IN THE CITY AN ANNUAL FEE TO FUND PUBLIC SAFETY COSTS. T HE C ITY C OUNCIL HAS THE AUTHORITY TO ENACT THIS NEW REVENUE OPTION AS A POLICY MATTER ON NEW DWELLING UNITS. R EVENUE G ENERATING O PTIONS : A NNUAL R EV 5 Y EAR ( ) CFD FOR P UBLIC S AFETY $200,000$3M D EPENDS ON # OF NEW HOMES OBTAINING CERTIFICATE OF OCCUPANCY Y EAR 1 = 400 X $500 = $200 K Y EAR 2 = 400 X $500 = $200,000 NEW + $200 K EXISTING = $400 K Y EAR 3 = 400 X $500 = $200 K NEW + $400 K EXISTING = $600 K Y EAR 4 = 400 X $500 = $200 K NEW + $600 K EXISTING = $800 K Y EAR 5 = 400 X $500 = $200 K NEW + $800 K EXISTING = $1M AND SO ON AND SO ON AND SO ON P RECEDENT HAS BEEN SET IN THE REGION BY L AKE E LSINORE, P ALM S PRINGS, P ERRIS, S AN J ACINTO, W ILDOMAR AND D ESERT H OT S PRINGS.

1. VLF – ATTEMPTED THREE TIMES ( SO FAR ) WITH MORE ATTEMPTS ON THE WAY. G OVERNOR HAS VETOED LAST TWO ATTEMPTS. M ENIFEE SHOULD CONTINUE THIS FIGHT TO CONTINUE THE TRACK RECORD AND DOCUMENTATION OF NEEDED FUNDS AND EQUITY ISSUE … AB2277 (M ELENDEZ ) AND SB817 (R OTH ) … 2. R ESULTS FROM THE KPMG S TUDY ARE STARTING TO TRICKLE DOWN. U NSURE THAT THIS IS THE ANSWER TO REDUCING OUR EXPENDITURES FOR S HERIFF ’ S C ONTRACT. 3. C OOPERATING C ITIES RFP FOR P OLICE S TUDY – T HE STUDY WILL NOT BE COMPLETE FOR ANOTHER FIVE MONTHS. U NSURE OF WHAT INFORMATION IT WILL PROVIDE AND MAY NOT LEAD TO ANY COST REDUCTIONS. 4. U PCOMING REPORT S TANDARDS OF C OVER S TUDY FROM CALFIRE. C ITIES ARE ANTICIPATING ADDITIONAL COSTS FOR F IRE S ERVICES. 5. M ISSED OPPORTUNITY FOR P UBLIC S AFETY CFD ON 1,115 (M ENIFEE H EIGHTS = 359; C IMARRON R IDGE = 756) NEWLY APPROVED HOUSING UNITS = $570,880 ANNUALLY WHEN OCCUPIED. 6. M ENIFEE HAS ROUGHLY (14 NEW TRACT MAPS UNDER REVIEW IN P LANNING NOW ) 3,525* NEW SFU AND 150 MFU COMING THROUGH APPROVAL PROCESS NOW TOTALING $1,861,950 ANNUALLY WHEN OCCUPIED. *3525 X 2.9 PEOPLE = 10,222 NEW RESIDENTS /10 NEW OFFICERS ? T AKE -A WAY S UMMARY

✦ C ALIFORNIA S ALES T AX B ALLOT M EASURES HAVE BEEN VERY SUCCESSFUL OVER THE PAST TWO YEARS ✦ 2015: T HE S TATE HAD 11 L OCAL S ALES T AX M EASURES WITH 9 BEING APPROVED = 81% ½% 1% ¾% ¼% ✦ 2014: T HE S TATE HAD 65 L OCAL S ALES T AX M EASURES WITH 50 BEING APPROVED = 77% T AKE -A WAY S UMMARY (C ONTINUED )

C OMMUNITY O UTREACH P LAN ✦ E DUCATION : ✦ E DUCATION : T OWN H ALL M EETINGS, M ENIFEE M ATTERS, B ILLBOARDS, S PEAKER ’ S B UREAU, C HAMBER OF C OMMERCE, R OTARY, P RESS R ELEASES, E N EWSLETTER, C OUNCIL UPDATES ✦ P ARTICIPATION : ✦ P ARTICIPATION : A SK OUR COMMUNITY TO BECOME INVOLVED IN THE PROCESS, QUESTIONNAIRES, SURVEYS ✦ S OLICITATION : ✦ S OLICITATION : A SK OUR COMMUNITY WHAT THEY THINK, BE PUBLIC, ASK THE QUESTION “ WHAT SHOULD WE DO ?”, WHAT WOULD YOU DO ? ✦ C ONSIDERATION : ✦ C ONSIDERATION : Q UESTION, DISCUSS & REFLECT ON THE INFORMATION RECEIVED FROM ALL POINTS OF VIEW ✦ I MPLEMENTATION : ✦ I MPLEMENTATION : PROPOSE SOME TYPE OF BALLOT MEASURE FOR N OVEMBER 2016 TO THE VOTERS DECIDE