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I 8.A.a I <br /> Tactics: "Bankruptcy not an option", appropriate constituents, message development <br /> and employment. <br /> 3. Legislative relief(impact fees) and revenue/expense flexibility. <br /> Moderator Barry Aarons gave an overview of expectations for the 2018 Legislative <br /> session. This is an election year session. The budget is in a little pain with revenues <br /> projected to be $35 million cash to carry forward and there is a $25 million short fall <br /> Tic <br /> which leaves $100 million in structural deficit. Corporate income taxes were well below r <br /> expected amounts. There was a 3% growth in the 3rd quarter in the country and Arizona cc <br /> is tracking close to the national averages. Sales taxes and user taxes are expected to i <br /> be higher over the holidays and could make up for shortfalls in corporate income taxes. ° <br /> The Legislature is not panicking yet about what the budget will be. The Governor's c <br /> budget is expected to be flat. o. <br /> a <br /> Q <br /> Last year the city participated in the GPLET (Government Property Lease Excise Tax). 01 <br /> The GPLET twenty-five year abatement was modified and now has an eight year <br /> GPLET. Last year the question of the definition of slum and blithe didn't get resolved. It H <br /> is a subject judgment call and hard to define. 2 <br /> c <br /> One of the issues that will dominate the session is water. Governor Ducey is looking at c <br /> potential changes. It might be a good idea to have a discussion at a future study <br /> session. Mr. Aarons said he is deeply involved with that and could come back for a d <br /> session before the legislative session begins. Exempt wells will also be an issue which >. <br /> includes the purchase and sale of access water among the tribes, SRP (Salt River <br /> Project), cattle growers and CAP (Central Arizona Project). N <br /> 0 <br /> Mayor Oberg asked if he sees them continuing to ignore the $43 million for the 6' <br /> ti <br /> requirement to EORP (Elected Officials Retirement System)? Mr. Aarons said they o <br /> won't be able to ignore EORP and it will need to be addressed by the political N <br /> 0 <br /> subdivisions as a group. How they address them will be a problem. <br /> d <br /> Mr. Lamar said there is concern about the new legislation for CFD's (Community 15 <br /> Facilities Districts) and the new physical make-up of the board. There was contradictory 0 <br /> language in the legislation that was passed last year. Mr. Paladini said there are d <br /> conflicting legal conclusions whether or not a CFD board with two non-council or does it s <br /> have to a stand-alone committee with four citizens. The city and developers don't want 0 <br /> the latter. There is some discussion if that needs to be re-opened to clarify who should a <br /> be on the board. There is a question if the legislator could ask for an AG opinion. <br /> There are a bunch of CFD's on hold because of this issue so clarification is needed. <br /> Mr. Lamar said if you add a CFD, you want council input and decision. Mr. Lamar said if <br /> the city manager is their employee and administers the CFD, this could be problematic. <br /> Mr. Aarons said his guess would be that the board of supervisors actually serves as the <br /> board of the special district. He will follow up to find out what the intention is. There are <br /> avenues to take when asking the AG for a formal opinion. <br /> 2 <br /> I Packet Pg.9 I <br />