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remaining in its balance. Also identified $1.0M from the opening of dispensaries for <br /> the medical marijuana tax, for FY 18-19 it will include change in ordinance to <br /> broaden operation hours and such, and will be reflected in outer year. <br /> Robert Cortez, Deputy City Manager, added this is a conservative number that will <br /> be brought to the City Council at first meeting in June; which will include Bowers, <br /> signage. Anticipate numbers will be increasing, conservative ballpark number to be <br /> used at this time. Change in operation hours will provide operators about 40% <br /> more opportunity to be open and sale their medical marijuana, anticipating <br /> generated increases. <br /> In moving from a Type II to holding facility, intent would then be to close the Bureau <br /> of Prisons and Marshals contract. Would technically use $2.5M from moving to a <br /> holding facility, so that would have to be included. City attorney has expressed <br /> including some type of ordinance that would recover legal fees in terms of <br /> development, so placeholder for $100,000 placed, which would mean that our <br /> budget gap would narrow to $9.3M and if you use one-time monies of $9.3M then <br /> you would have a balanced budget. This is a placeholder for now as priories have <br /> and will be discussed, so those can be included as additions to FY17/18. <br /> Looking at Budget Gap for FY 18/19 the plan shows: full value of jail recognizing <br /> close of Type II jail and there would be no Strategic Plan funds, Medical marijuana <br /> tax changes will be recognized, sale of land on Main Street related to hotels, <br /> Citywide Fee Study approved by council, recognize full value of jail revenue, <br /> identified revenue sources of two new hotels [Holiday Inn Express and Hampton <br /> Inn], expanding parking enforcement, potential economic development and jail <br /> reuse revenue, and legal expense reimbursement. The adjusted budget gap for <br /> year 2 would be $8.9M; use of remaining one-time monies and if economic <br /> uncertainty funds tapped; budget gap then would be $0.7M. <br /> If the Economic Uncertainty of $3.M is used, funds would be exhausted. Intent is to <br /> not use operating reserves as per fiscal policy; balance out any variations as they <br /> may occur to revenues (Prop 6). Use of operating reserves would require 2/3 <br /> council approval. Uncertainty funds allows you to use those monies for a two-year <br /> period and develop a plan to recover those monies and build up reserves. <br /> Mayor Pro Tem Martinez: Use of one-time funds to balance budget is not good <br /> practice. Not in favor of amending fiscal policy. Willing to support a resolution for <br /> one-time monies. Need ongoing sources of revenues to fulfill budget expenses, <br /> unless we make serious cuts. <br /> Mr. Gutierrez added: Policy not required to be changed as it relates to operating <br /> reserves. The one-time element specifically indicates you can only use for term <br /> specific or as one-time expenditure. No trigger that allows council to split or change <br /> that. However council has to take action, as policy does not currently allow monies <br /> May 15, 2017 I Economic Development, Infrastructure, Budget & Technology Minutes 4 <br />