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�„ S'SSfk c 0 $513.7 530.0 b5t14 S497. i $452.5 $439.9 Sd5'6, 9 S47p 54554 S474.7 $440.2 458.5 S460.2 5453.3 $420.6 $446.8 $436 S413.0 S 438.2 $399.8 S426.5 $404-0 S390 S397.3 $350 FY23.24 FY24,25 FY25-26 FY26-27 FY27-28 FY28-21 FY29 3d FY30-31 FY31-32 FY32-33 --Rcyerrut� -41--Spunding I ask that our city consider a few action items now in order to prepare for the drop: 1. Direct staff to prepare a big picture pro -forma budget (not line by line but big picture) to illustrate what our city services will look like based upon the drop. What services will need to be lessened, how this will impact our residents/business, etc... By doing this, we will see what our city will look like after the MX rate reduction. 2. Direct staff to come up with a MX Sunset Plan with goals of such plan and concreate action steps to achieve those goals. Presumably, this council's feedback is imperative in coming up with any Sunset Plan. I would anticipate that this plan would include both spending reductions AND also revenue generation. 3. Create a MX Sunset Stabilization Reserve Fund now. Build it in to the 23/24 budget. Build it into any surpluses from the 22/23 fiscal year (if any). Our city needs to put money away now to prepare for the MX rate reduction to lessen the impact and absorb such impact over multiple years instead of at once. MX revenue is such a large amount and if we truly are favoring one-time spending on MX revenue, we certainly should be able to come up with a plan now to put aside some of the revenue generated to help with the sunset. 4. Although I am not in favor of extending the 1.5% rate for MX and I believe I have heard current councilmembers (and past) indicate that they are looking forward to a lower MX sales tax rate, IF the council is going to count on the full 1.5% of MX revenue in 2029 and forward, they need to be honest with our residents, businesses, and visitors and tell us now. Obviously, it is not up to the council to make this decision but the council likely will be the body that would put it on a ballot for the residents to vote upon. IF the current council wants to go that direction, then they should say so. IF the current council does not want to have a 1.5% MX rate, then they need to begin take financially prudent steps NOW ... to do otherwise is not financially wise in my opinion. 5. Consider forming a MX Sunset council committee to meet, in public, to discuss and recommend a MX Sunset Plan. I would prefer that this committee meet in public but if that is not the council's desire, I would ask that such a committee be tasked with regular reporting to the council and the public. City Debt (Unrestricted Net Position Deficit)