15-8105 Background/Attachments 1.A proposal to decrease the solid waste fee by $50 and reinstate the tax increase at 3.96%. (Affa, Hendricks, Santo) Background: On November 19th City Council amended the General Fund Budget to remove the mayor's proposed 3.96% tax increase. At that time, the Mayor proposed a compromise that would reduce the solid waste fee by $25. President Hendricks scheduled a special meeting on December 3 to review the mayor's compromise. After reviewing the compromise and reviews by the Finance Director and the City Controller, Councilpersons Affa, Hendricks and Santo are proposing a reduction in the solid waste fee by $50 and reinstatement of the mayor's proposed tax increase. The General Fund would lend funds to the Solid Waste fund which would be paid back over time - a common practice this city has used multiple times. In the recommended alternate proposal the property owners least able to absorb increases remain protected. In the new proposal fixed-income taxpayers are NOT disproportionately impacted. The City still generates the revenue needed to sustain services. The alternate proposal lowers the garbage fee and results in little to no increase for lower-valued homes and some even pay less than they are paying currently. Higher-valued properties contribute slightly more, which reduces the burden on residents living on fixed or limited income. This makes the alternate proposal a more equitable option for our community while maintaining essential revenue for services. The new proposal would have a positive impact on 23,000 single family residents - out of a total of 26,000. The impact is presented on the spreadsheet attached to the agenda. This policy would retain cash reserves and a fund balance that would lower borrowing costs for projects everyone on this dais has approved. It follows recommendations from our Finance Team, Controller and Financial Advisor. 2.Proposal submitted by the Mayor found on Budget Memo 2: Increase the Mayor's operating budget by $50,000 to support the Conference of Churches in providing an additional day of weekly services for homeless support. 000-09-00908-0091-50040 - $50,000 $50,000