Others present: City Manager Josh Copley and City Attorney Sterling Solomon.

Management Services Director Rick Tadder provided a PowerPoint presentation that covered the following:
 
OVERVIEW
WHAT’S THE PURPOSE OF TONIGHT’S DISCUSSION?
TONIGHT’S AGENDA?
WHY IS THIS URGENT?
 
Capital Improvements Senior Project Manager James Duval continued the presentation.
 
100 YEAR FLOOD IMPACT MAP
HISTORY
PROJECT AREA MAP
CURRENT CITY COST SHARE
 
Councilmember Barotz asked the likelihood of a 100-year flood event from just heavy rain or post-fire flooding. Mr. Duval stated that it is difficult to know, when the Army Corp of Engineers (ACE) develops their hydrology and hydrological studies they have run off co-efficients they use to develop a 100-year event, they do not have specific events such as forest fire or heavy rain on a high snowpack.
 
Mr. Tadder continued the presentation.
 
FUNDING RECOMMENDATION: NEW SALES TAX
IMPACT TO RESIDENT
SALES TAX COMPARISON
TOTAL TAX BY TYPE BASE RATE
TOTAL TAX BY TYPE BASE RATE INCLUDING PROPOSED STORMWATER TAX
CURRENT SALES TAX RATES FOR SELECTED CITIES
CURRENT SALES TAX RATES FOR SELECTED CITIES WITH NEW TAX
CURRENT SALES TAX RATES FOR CITIES IN NORTHERN ARIZONA
NEW SALES TAX
PERCENTAGE OF THE VALUE OF PROPERTIES GREATER THAN 2 ACRES IN THE RIO DE FLAG FLOOD PLAIN
SECONDARY PROPERTY TAX – G.O. BONDS? (NOT RECOMMENDED)
STORMWATER FEE (NOT RECOMMENDED)
 
Councilmember Barotz asked about the County Flood Control District. Mr. Tadder explained that the City did not opt into the District. One of the downfalls to opting in would be that the City would not be able to charge a stormwater fee.
 
Mr. Tadder concluded the presentation.
 
IMPACT TO RESIDENT
 
Vice Mayor Whelan clarified that this would be a proactive action to make sure funding is available if and when ACE says they are ready to go with the project. Mr. Copley stated that the need persists whether ACE does the project or not. Staff recommends a ballot question with funds directed to a Rio de Flag Flood Control project. The funding would then be available for the project regardless of whether ACE is lead or it is a City only project.
 
Vice Mayor Whelan asked about the 20% fund balance. Mr. Tadder indicated that the City’s current fund balance is at 20% and really should not go below that. Vice Mayor Whelan asked if staff could evaluate what the figures would be should the fund balance be reduced to 19% for a two-year period and if that would lessen the burden on the taxpayer.
 
Mr. Copley explained that the reason this is coming to Council is because without clear direction from Council it is difficult for staff to educate the public. It is a broader community need and the more time there is for outreach the better informed the public can be.
 
Councilmember McCarthy asked about any discussions with NAU about contributing to the cost of the project. Mr. Copley stated that there have been discussions with NAU but they have been focused on bringing them up to speed on the project. There has been no request for them to participate in a monetary way however, the recent increase in the stormwater fee does apply to them and they are contributing in that way.
 
Councilmember Odegaard stated that he is not in favor of moving a possible ballot question forward; he is more interested in a stormwater fee so there can be equal footing to get NAU involved.
 
Councilmember Barotz stated that she is supportive of looking at a combination of different strategies including sales tax and a stormwater fee; she does not want to rule either one out at this point without getting more information.
 
A majority of Council was supportive of moving forward with looking into a possible ballot question.
 
Mr. Copley clarified that the City Council would call the election at a later date, direction to look at a possible question does not obligate the Council to place a question on the ballot.