Alderman Garnholz moved to approve the CRSWC FY2017 Budget. Alderman Winings seconded.

September 13, 2016 09-13-16 BOA Minutes Page 2 of 9

The motion passed unanimously on a voice vote.

AN ORDINANCE SETTING THE TAX YEAR 2016 PROPERTY TAX LEVIES FOR FISCAL YEAR 2017 BUDGET AND TO HOLD A PUBLIC HEARING- 2nd READING

City Manager Owens reported that as part of the property tax levy process, the Board held a public hearing to seek public input on the proposed tax rates on August 23, 2016. There were some slight revisions since the first reading which will require an amendment for passage.

The property tax levy process is somewhat complex in that as assessments increase the City is not allowed to gain any more revenue. Therefore the maximum tax rates we are allowed to levy actually go down or “roll back” to generate no more revenue than the past year. The only ability to gain revenue is through growth in the CPI (listed above), new construction, and through recoupment of taxes from successful protests that have been resolved in the past year.

We are addressing the recoupment process this year due to the significant revenue the City has lost through successful protests over the past few years. In each year, the City is allowed to “recoup” the lost revenue which was due to assessed valuation reduction through protests adjudicated by the Missouri State Tax Commission after the City’s higher (pre-protest) assessed value had been used to calculate the permissible tax rate in prior years. The City is allowed to increase our levies to generate the revenue lost from having used an incorrect total assessed value in the last year only. The Clayton School District has used this recoupment process for several years. This recoupment process is the only method for the City to receive the revenue it should have received had prior rates been calculated on the basis of the correct total assessed value.

Thus the City’s maximum levies this year are projected to generate the amount of revenue from the previous year, plus CPI and revenue related to new construction, plus the amount available for recoupment which we are incorporating this year. These levies as presented are subject to change by the Board of Equalization and through the Missouri State Auditor’s certification process, therefore there is the potential for them to still change slightly. If this occurs, staff will inform you of our options at that time.

The assessments on which the General Fund, Police Building Debt Service and General Obligation Debt Service levies are applied changed by an increase of 0.7% for residential and reduced by 0.6% for commercial. The General Fund tax levy, which may be used for any general purpose, is projected to generate nearly $6.3 million, or approximately $380,000 higher than last year. The City also has a levy to support the debt service of the police building. This levy was approved by voters in 2010 and implemented in 2013 when a previous general obligation bond issue matured. This levy will generate nearly $1.1 million which is similar to last year.

In April 2014 voters approved a general obligation bond issue supported by property tax to be used for neighborhood street resurfacing, street lighting and alley improvements. The City issued these bonds in 2014 and implemented the related levy last year. For this year, the levy will generate nearly $1.1 million, which is slightly lower than last year.

The following rates are proposed to be levied for the 2016 calendar year (FY 2017 budget year), and all rates are per $100 of assessed valuation. Rates are also presented for the recent tax history and are listed under the calendar year for which the rates apply.

Property Category 2013 Tax Rate 2014 Tax Rate 2015 Tax Rate 2016 First Reading 2016 to be Amended 2015 Rate to 2016 Amended Rate Change General Revenue

Rates are also presented for the recent tax history and are listed under the calendar year for which the rates apply. Property Category 2013 Tax Rate 2014 Tax Rate 2015 Tax Rate 2016 First Reading 2016 to be Amended 2015 Rate to 2016 Amended Rate Change General Revenue

September 13, 2016 09-13-16 BOA Minutes Page 3 of 9

Residential $0.659 $0.646 $0.614 $0.632 $0.629 $0.015 Increase

Commercial $0.692 $0.717 $0.687 $0.789 $0.792 $0.105 Increase Personal $0.707 $0.707 $0.707 $0.707 $0.707 No Change General Obligation Debt

Residential - $0.124 $0.129 $0.121 $0.121 $0.008 Decrease

Commercial - $0.124 $0.129 $0.121 $0.121 $0.008 Decrease Personal - $0.124 $0.129 $0.121 $0.121 $0.008 Decrease Police Building Debt Service

Residential $0.128 $0.128 $0.122 $0.123 $0.123 $0.001 Increase

Commercial $0.128 $0.128 $0.123 $0.124 $0.124 $0.001 Increase Personal $0.123 $0.123 $0.123 $0.120 $0.120 $0.003 Decrease

The schedule below provides the total rate, including the debt levies, for residential, commercial and personal property.

Property Category 2013 Total Tax Rate 2014 Total Tax Rate 2015 Total Tax Rate 2016 First Reading 2016 to be Amended 2015 Rate to 2016 Amended Rate Change Residential $0.787 $0.898 $0.865 $0.876 $0.873 $0.008 Increase Commercial $0.820 $0.969 $0.939 $1.034 $1.037 $0.098 Increase Personal $0.830 $0.954 $0.959 $0.948 $0.948 $0.011 Decrease

For a home valued at $600,000, it is expected that the homeowner would pay approximately $995 on property taxes for the City of Clayton portion only. Based on last year’s rate, the same homeowner would pay $9 more than last year.

The assessments on which the Special Business District levies are applied were nearly the exact same amount as last year. The 2016 proposed tax rates are at the maximum allowable rates, including recoupments. The 2016 Special Business District (SBD) tax levy for the FY 2017 budget is projected to generate $505,000 which is approximately $58,000 more than last year. The following rates have been levied or are proposed to be levied and all rates are per $100 of assessed valuation:

Property Category 2013 Tax Rate 2014 Tax Rate 2015 Tax Rate 2016 First Reading 2016 to be Amended 2015 Rate to 2016 Amended Rate Change Residential $0.125 $0.121 $0.114 $0.108 $0.107 $0.007 Decrease

In the General Fund, $5,000 per year was added to the contribution toward the Art Fair, and increased the property tax revenue based on the proposed rates. In

September 13, 2016 09-13-16 BOA Minutes Page 5 of 9 addition, the Equipment Replacement Fund was reduced by $11,000. The result for FY 2017 is a General Fund budget surplus of $284,702.

Recommendation is to adopt the Fiscal Year 2017 Operating and Capital Improvements Budget as presented in the proposed budget, adjusted by the reconciliation.

Alderman Garnholz introduced Bill No. 6573, an ordinance as amended Adopting an Annual Budget for Fiscal year 2017 Commencing on October 1, 2016 and Appropriating Funds Pursuant Thereto to be read for the second time by title only. Alderman Winings seconded.

City Attorney O’Keefe reads Bill No. 6573, an ordinance as amended Adopting an Annual Budget for Fiscal year 2017 Commencing on October 1, 2016 and Appropriating Funds Pursuant Thereto for the second time by title only.

Alderman Garnholz – Aye; Alderman Winings – Aye; Alderman Boulton – Aye; Alderman Berger – Aye; Alderman Lintz – Aye; Alderman Berkowitz – Aye; and Mayor Sanger – Aye. The bill was adopted and became Ordinance No. 6443 of the City of Clayton.

AN ORDINANCE TO CONSIDER AMENDING CHAPTER 350 OF THE CLAYTON CITY CODE TO ALLOW THE CITY MANAGER TO SET PARKING METER RATES, PARKING TIME LIMIT ZONES, AND ESTABLISH PARK ONCE ZONES

City Manager Owens reported that the proposed ordinance amends several sections in Chapter 350 of the Clayton City Code relating to parking restrictions and enforcement.

On July 8, 2016 Walker Parking Consultants finalized a Downtown Clayton parking study. Walker Parking Consultants studied both current and future parking conditions. They determined that Downtown Clayton has ample parking but that the City should adjust its policies so that the current parking supply is better utilized. Walker’s specific recommendations are as follows:

 Implement a mobile app  Implement park once districts  Increase on-street parking rates  Increase parking fines  Extend enforcement times  Use mobile license plate recognition technology

The contract for a mobile app was approved on July 26, 2016 and staff is currently reviewing and cost estimating mobile license plate recognition technology.

The proposed ordinance now being considered would allow the City Manager to implement park once districts, increase parking rates, and adjust current parking zone time limits.

Staff would like to study the benefits and costs of extended enforcement times before implementing the change. In addition staff would like to examine the change in parking behavior brought about with increased parking rates and fines before increasing enforcement hours.

The attached ordinance changes the existing parking code as follows:

 Adds the concept of a parking app to Chapter 350  Amends the Chapter to allow the City manager to change parking time limits based on specific criteria  Amends the Chapter to allow the City Manager to implement park once zones

In addition staff would like to examine the change in parking behavior brought about with increased parking rates and fines before increasing enforcement hours. The attached ordinance changes the existing parking code as follows:

 Adds the concept of a parking app to Chapter 350  Amends the Chapter to allow the City manager to change parking time limits based on specific criteria  Amends the Chapter to allow the City Manager to implement park once zones

September 13, 2016 09-13-16 BOA Minutes Page 6 of 9  Eliminates the cap of $20 per day that the Director of Public Works may charge for daily rental of a parking meter

If this ordinance is approved it is anticipated that the City Manager would increase the hourly parking rate to $2.00 per hour based on the recommendation of the Walker Parking Consultants study.

Staff posted the proposed changes on the City website on August 26, 2016. On September 1, 2016 staff sent 141 invitations to Clayton retailers and restauranteurs to attend an informational meeting about the proposed changes. On September 2, 2016 the proposed changes were included in the Clayton Connection email. Public input was limited. Only 10 people attended the retail and restaurant meeting and as of September 6, 2016 staff has received only 4 comments based on the website posting and email. Other concerns included the need for equitable and fair enforcement of parking spaces, parking meter rates that do not discourage customer traffic, and the lack of handicap accessible on-street parking.

Recommendation is to approve the ordinance.

In response to Alderman Winings’ question, City Manager Owens stated that the approval of setting the rates is decided each time by the Board. What’s been discussed is that sometimes there may be a need for longer time zones, but currently it would require an ordinance to be submitted to the Board. The proposed authorization would provide the ability to make those changes (time restriction only not the fees) administratively.

Alderman Garnholz expressed that she does not like the “park once” idea and felt that the decisions for rates and zones should come before the Board for approval. She noted that she is not in favor of the ordinance.

Mayor Sanger expressed his concerns regarding communicating information to its citizens.

Alderman Berger expressed his concerns with regard to the $2 rate. He said that what is important is the Wayfinding signage and hopes that it is a tremendous benefit to people who are driving to the downtown as to where they can park.

Mayor Sanger commented that there are a lot of pieces to this issue which makes it complex. He suggests that they broaden the scope on what they are looking at and discuss the issue further. One of the main issues is where restaurant employees are to park and working on getting them to park off-street.

Alderman Winings clarified that this ordinance would give the authority to set parking rates.

Alderman Boulton commented with regard to the issue that she makes the calculation each time she is parking downtown – it’s cheaper to park on the street versus a garage. She said that if it costs $2 at a meter than she would choose a garage. She feels that we will not get people to park off-street unless we incentivize them to park in garages. If we are really going to make a difference in the downtown parking it will involve a myriad of “tools” and this is one of the important “tools” and also to address issues on a timely manner in making changes. She expressed that she is in support of the ordinance. She added that the $2 rate is following the market.

In response to Alderman Winings questions, City Manager Owens stated that with the app and the technology we could go to dynamic pricing which is being done now through metropolitan areas and that would be something that would change on policy basis or demand. During certain hours the rate would go up because of certain demand and the app allows us to have those conversations. In response to Mayor Sanger’s comment, Alderman Berkowitz explained that his understanding is that it depends on the parking zone whether or not you can automatically add additional time via the app. City Manager Owen’s confirming that the “park once” zones are already in use.