A G E N D A
SPECIAL MEETING: GLENDALE CITY COUNCIL
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Glendale, CA 91206
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APRIL 30, 2024
ROLL CALL
-
2:00 PM
-
Report of the City Clerk of the City Council, re: Posting of Agenda. The Agenda for the Tuesday, April 30, 2024 Special Public Meeting of the City Council was posted on April 26, 2024, on the Bulletin Board Outside City Hall.
1 TYPED 4/26/2024 11:38:00 AM
04 30 24
SP CC
A
SPECIAL PUBLIC MEETING
of the City Council is hereby called to meet at
2:00
PM
on
Tuesday, April 30, 2024
, in the Council Chamber, 613 E. Broadway,
2 Floor,
Glendale, CA 91206 to consider the following item(s) of business, to wit;
1. Study Session #1: FY 2023-24 General Fund Projection, Proposed FY 2024-25 General Fund Budget, Five-Year General Fund Forecast; Potential Future Revenue Enhancements
2. Community Development, re: Use of City Days at the Alex Theatre: Armenian Fairytale’s 30th Anniversary Show
a. Motion to approve use of one of twelve annual City Days at the Alex Theatre for the Armenian Fairytales 30th Anniversary Show on May 18, 2024
ADJOURNMENT
nd
2 TYPED 4/26/2024 11:38:00 AM
04 30 24
SP CC
City of Glendale
Budget Study Session #1
April 30, 2024
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Slide 2
Session #1 – Tuesday, April 30
• FY 2023-24 General Fund Projection
• General Fund Five-Year Forecast
• FY 2024-25 Proposed General Fund Budget
• Potential Future Revenue Enhancements
Session #2 – Tuesday, May 7
• Fee Study
• Potential Pension Refinancing and Infrastructure Bonds Session #3 – Tuesday, May 14
• FY 2024-25 Proposed Citywide Budget – All Funds
Session #4 – Tuesday, May 21
• Follow-Up Items
Budget Hearing and Adoption - Tuesday, June 4
FY 2024-25 Budget Adoption Calendar
2 4 of 49
Agenda
• FY 2023-24 General Fund Projection
• General Fund Five-Year Forecast
• Proposed FY 2024-25 General Fund Budget
• Potential Future Revenue Enhancements
• Transfer & Parcel Tax
• Business License Tax
• Cannabis Tax
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City of Glendale
FY 2023-24 General Fund
Year-End Projection
4 6 of 49
Category
23-24
Revised
Final
Estimate
Over/
(Under)
%
Received
Property Taxes $80.3 $81.4 $1.1 101.4%
Sales Taxes $91.1 $89.2 ($1.9) 97.9%
Utility Users Taxes $31.5 $30.6 ($0.9) 97.1%
Occupancy Taxes $10.0 $10.3 $0.3 103.0%
Licenses & Permits $10.5 $10.1 ($0.4) 96.2%
Revenue from Other Agencies $0.4 $0.6 $0.2 150.0%
Charges for Services $34.8 $35.4 $0.6 101.7%
Interfund Revenue $19.1 $19.1 $0.0 100.0%
Fines & Forfeitures $3.2 $3.2 $0.0 100.0%
Interest/Use of Money $3.7 $4.4 $0.7 118.9%
Misc. & Non-Operating $0.8 $1.0 $0.2 125.0%
Transfers from Other Funds $22.4 $21.2 ($1.2) 94.6%
Total Revenues $307.7 $306.5 ($1.2) 99.6%
Final Measure S Fund Balance $18.7 $18.7 $0.0 100.0%
Total Resources $326.4 $325.2 ($1.2) 99.6%
FY 2023-24 General Fund Resources
In Millions
5 7 of 49
$190.0
$195.0
$200.0
$205.0
$210.0
$215.0
$220.0
$225.0
$222.9
$215.2
Millions
Salaries & Benefits
Revised Budget Projected Actuals
Under-Expenditures:
$7.7M
Slide 6
FY 2023-24 General Fund Expenditures
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$70.0
$75.0
$80.0
$85.0
$90.0
$95.0
$100.0
$105.0
$110.0
$105.5
$94.8
Millions
Maintenance & Operation, Capital & Transfers
Revised Budget Projected Actuals
Under-Expenditures:
$10.7M*
Slide 7
FY 2023-24 General Fund Expenditures
*Includes projected carryovers of $5.2 million
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Category (In Millions)
Final
Projection
Revenues $306.5
Final Measure S Fund Balance $18.7
Resources $325.2
Expenditures $310.0
Subtotal $15.2
Projected Carryover ($5.2)
Net Surplus/(Use) $10.0
FY 2023-24 General Fund Year-End Projection
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Projected
Year-End Surplus:
$10.0 Million
Proposed Funding For
Central Park Renovation
Slide 9
FY 2023-24 General Fund Year-End Projection
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Category (In Millions)
Final
Projection
Resources $325.2
Expenditures $310.0
Subtotal $15.2
Projected Carryover ($5.2)
Central Park Renovation ($10.0)
Net Surplus/(Use) $0.0
Projected Ending Reserve $123.2
Reserve % 38.5%
*Council Reserve Policy is a floor of 25% with a target of 35% FY 2023-24 General Fund Ending Fund Balance
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City of Glendale
General Fund
Five-Year Forecast
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$ In Millions 24-25 25-26 26-27 27-28 28-29
Resources $314.7 $324.8 $333.7 $333.3 $342.2
Section 115 Trust 0.0 0.0 5.0 5.0 5.0
Total Resources $314.7 $324.8 $338.7 $338.3 $347.2
Appropriations $315.6 $326.6 $339.5 $348.4 $361.0
Capital Improvement 10.0 10.0 10.0 10.0 10.0
Total Appropriations $325.6 $336.6 $349.5 $358.4 $371.0 Net Change ($10.9) ($11.8) ($10.8) ($20.1) ($23.8)
Ending Reserve* $112.3 $100.5 $89.7 $69.6 $45.8
34.5% 29.9% 25.7% 19.4% 12.3%
General Fund Five-Year Forecast
FY 2024-25 Proposed Budget
Without Proposed Fee Study Revenues
*Council Reserve Policy is a floor of 25% with a target of 35% 12 14 of 49
$ In Millions 24-25 25-26 26-27 27-28 28-29
Resources $314.7 $324.8 $333.7 $333.3 $342.2
Section 115 Trust 0.0 0.0 5.0 5.0 5.0
Proposed Citywide Fees 4.0 4.0 4.0 4.0 4.0
Total Resources $318.7 $328.8 $342.7 $342.3 $351.2
Appropriations $315.6 $326.6 $339.5 $348.4 $361.0
Capital Improvement 10.0 10.0 10.0 10.0 10.0
Total Appropriations $325.6 $336.6 $349.5 $358.4 $371.0 Net Change ($6.9) ($7.8) ($6.8) ($16.1) ($19.8)
Ending Reserve* $116.3 $108.5 $101.7 $85.6 $65.8
35.7% 32.2% 29.1% 23.9% 17.7%
General Fund Five-Year Forecast
FY 2024-25 Proposed Budget
With Proposed Fee Study Revenues
*Council Reserve Policy is a floor of 25% with a target of 35% 13 15 of 49
City of Glendale
FY 2024-25 General Fund
Proposed Budget
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Slide 15
Category
23-24
Final Estimate
24-25
Proposed
Increase/
(Decrease)
%
Change
Property Taxes $81.4 $84.0 $2.6 3.2%
Sales Taxes $89.2 $91.1 $1.9 2.1%
Utility Users Taxes $30.6 $32.7 $2.1 6.9%
Occupancy Taxes $10.3 $10.8 $0.5 4.9%
Licenses & Permits $10.1 $11.3 $1.2 11.9%
Revenue from Other Agencies $0.6 $0.4 ($0.2) (33.3%)
Charges for Services $35.4 $38.9 $3.5 9.9%
Interfund Revenue $19.1 $19.7 $0.6 3.1%
Fines & Forfeitures $3.2 $3.3 $0.1 3.1%
Interest/Use of Money $4.4 $3.8 ($0.6) (13.6%)
Misc. & Non-Operating $1.0 $1.2 $0.2 20.0%
Transfers from Other Funds $21.2 $21.5 $0.3 1.4%
Total Revenues $306.5 $318.7 $12.2 4.0%
FY 2024-25 Proposed General Fund Revenues
In Millions
15 *Includes proposed fee study revenues
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Category
23-24
Adopted
24-25
Proposed
Increase/
(Decrease)
%
Change
Salaries & Benefits $223.4 $231.1 $7.7 3.4%
Maintenance & Operation $75.1 $80.0 $4.9 6.5%
Capital Outlay $0.05 $0.1 $0.05 100%
Transfers Out $16.0 $14.4 ($1.6) (10.0%)
Total Expenditures $314.5 $325.6 $11.1 3.5%
FY 2024-25 Proposed General Fund Expenditures
In Millions
16 18 of 49
Category Projection
Resources $318.7
Appropriations $325.6
Net Surplus/(Use) ($6.9)
Plus Beginning Reserve $123.2
Projected Ending Reserve $116.3
Reserve % 35.7%
Slide 17
*Council Reserve Policy is a floor of 25% with a target of 35% FY 2024-25 General Fund Ending Fund Balance
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Potential Future Revenue Enhancements
• Transfer Tax
• Parcel Tax
• Business License Tax
• Cannabis Tax
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City of Glendale
Property Transfer and Parcel Taxes
Presented By: HDL Coren & Cone
Nichole Cone, Vice President
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Potential Property Tax Options
20 Tax Type Description Voter Requirement
Property Transfer Tax General Tax Revenue for any
government purpose Majority Voter Approval
Parcel Tax for funding of public
safety, roads, libraries, parks,
etc.
Special Tax Revenue is restricted
for certain purposes 2/3 Voter Approval
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• General Tax – Majority Voter Approval
• Only an option for Charter cities
• Tax on the price of the property when sold or transferred • Applies to all non-government parcels sold and some long-term leases. There can also be exemptions for low-income housing parcels
• City can determine its own rates, tiers, methodology
• Current rate in Glendale is $1.10 per $1,000 of sales price • City receives $0.55 per $1,000 and LA County receives $0.55 per $1,000 • If an additional tax is passed, LA County will receive $1.10 and the City will receive the rate(s) as passed
Real Property Transfer Tax
21 23 of 49
Model #1 – Santa Monica Model
Using Glendale Data from FY 2022/23
Current Transfer Tax
Rate Glendale County Portion
$1.10 per $1,000 $800k $800k
Scenario with City of Santa Monica Rate Structure
Transfer Value Rate # of Sales
Glendale
Portion
County Portion
($1.10 per $1k)
$0 to <$5 million $3.00 per
$1,000
947 $3.6m $1.3m
$5 million to <$8 million $6.00 per
$1,000
13 $0.5m $0.1m
$8 million & Over $56.00 per
$1,000
10 $7.9m $0.2m
Total 970 $12.0m $1.6m
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Model #2 – Culver City Marginal Model
Using Glendale Data from FY 2022/23
Current Transfer Tax
Rate Glendale County Portion
$1.10 per $1,000 $800k $800k
Scenario with City of Culver City Rate Structure
Transfer Value Rate # of
Sales
Glendale
Portion
County Portion
($1.10 per $1k)
$0 to <$1.5 million $4.50 per
$1,000 687 $2.8m $0.7m
$1.5 million to <$3 million $15.00 per
$1,000 225 $3.0m $0.5m
$3 million to <$10 million $30.00 per
$1,000 51 $4.1m $0.3m
$10 million & Over $40.00 per
$1,000 7 $3.5m $0.1m
Total 970 $13.4m $1.6m
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Model #3 – Alternate Marginal Model
Using Glendale Data from FY 2022/23
Current Transfer Tax
Rate Glendale County Portion
$1.10 per $1,000 $800k $800k
Scenario with Alternate Marginal Structure
Transfer Value Rate # of Sales Glendale
Portion
County Portion
($1.10 per $1k)
$0 to <$2 million $0.55 per
$1,000 832 $0.5m $1.0m
$2 million & Over $10.00 per
$1,000 138 $2.9m $0.6m
Total 970 $3.4m $1.6m
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Secured Parcel Tax
• 2/3 Voter approval needed
• The tax must be for a specific purpose. Common special taxes are for library, public safety, parks, ambulance services, etc.
• Applies to all non-exempt parcels. Some parcels may be taxed at different rates based on their benefit.
• A parcel tax cannot be value-based.
• Flat taxes are an option.
• Most popular option is a characteristics-based tax. The Assessor-supplied use code, lot or living square footage, and unit count are all common options.
25 27 of 49
Scenario #1 – Flat Rate Per
Use Category
Use Category Count Tax Per Parcel
Total Tax
Per Category
Commercial 2,119 $69.03 $146,277
Cross-Reference 82 $69.03 $5,661
Industrial 618 $69.03 $42,661
Institutional 187 $69.03 $12,909
Miscellaneous 1 $69.03 $69
Recreational 53 $69.03 $3,659
Residential - Multi-Unit 5,849 $69.03 $403,763
Residential - Single-Family Attached 9,709 $ 11.51 $111,704 Residential - Single-Family Detached 23,321 $ 11.51 $268,312 Vacant 1,757 $ 11.51 $20,215
Total: $1,015,228
Less Delinquencies: $1,000,000
26 28 of 49
Scenario #2
Characteristic Based
Use Category Rate Type Count Tax
Total Tax
Per Category
Commercial Flat 2,119 $91.03 $192,893
Cross-Reference Flat 82 $9.90 $812
Industrial Flat 618 $101.85 $62,944
Institutional Flat 187 $54.29 $10,152
Miscellaneous Flat 1 $81.22 $81
Recreational Flat 53 $57.47 $3,046
Residential - Multi-Unit Units 43,089 $8.95 $385,787
Residential - Single-Family Attached Flat 9,709 $10.45 $101,442 Residential - Single-Family Detached Flat 23,321 $10.45 $243,655 Vacant Flat 1,757 $8.21 $14,416
Total: $1,015,228
Less Delinquencies: $1,000,000
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Questions & Comments
28 30 of 49
City of Glendale
Business Tax
Presented By: HDL Companies
Eric Meyers, Operations Director
29 31 of 49
The Basis of the Tax
• The business tax is imposed on the privilege of transacting or carrying on a business.
• It cannot be imposed on net income.
• It is imposed for the purpose of generating revenue and not recouping the costs of regulatory activities.
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Five Key
Components of A
Business License
Tax
1. The taxable activity.
2. The measure of the taxable activity.
3. The rate.
4. The classification.
5. The results.
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Major Types of Measurements
Pros & Cons
Measure Pro Con
Per Employee • Maybe less volatile than
gross receipts
• Higher burden on businesses with more labor inputs (like restaurants) that have already seen their costs of goods sold increase. • Doesn't capture per-employee productivity gains from technology.
Square Footage • Fixed amount for
calculation
• Can be tricky to calculate.
• Tends to miss the business activity occurring at other than floor level. • Is limited to only businesses with a location in the city, reducing the tax base.
Unit • The units of input may
already be tracked
• Does require pro-ration and have a low relation to the amount of activity.
Flat Rate • Easy to calculate • No clear relationship to the amount of taxable activity.
Gross Receipts • Closer relationship to the
amount of business
• Can include alternative
measures for the cost of
operations
• Increase in the volatility of revenues since they are pegged to the outputs of the business activities.
• In some cases, may be harder to calculate.
• Under State law, it cannot be based on net income.
32 34 of 49
Jurisdictions Comparison Summary
Jurisdiction Name Est. Population Population
Density
Estimated
Businesses
Tax Schedule
General
Annual
Revenue
Pasadena 134,211 6,040 19,000 Base + Per
Employee $5.9 Million
Burbank 103,920 6,198 16,000 Base + Per
Employee $2.7 Million
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Pasadena Model Rates Applied to Glendale Data
Categories
# of
Businesses Base Rate Unit Rate Unit Type
Est #
of
Employees
Estimated
Revenue
General Business Tax 1,855 186.82 $37.08 Employee 27,599 $1,301,120 Professional Business Tax 432 496.15 $247.44 Employee 1,631 $510,894 Service Business Tax 5,620 186.82 $37.08 Employee 37,467 $2,230,815 Theater Tax 12 -- $2.51 Seat 72 $5,120
General Contractor 72 997.13 -- Per Business 170 $71,793 Specialty Contractor 90 748.19 -- Per Business 135 $67,337 Hotel Motels 60 183.73 $19.84 Rooms over 3 2,061 $115,469 Non Residential Rental < 1,000 SqFt 165 100.69 -- Per Business 165 $16,614 Non Residential Rental > 1,000 SqFt 1,170 100.69 $19.84 Per 1,000 Sq. Ft. 2,796 $521,364 Total: $4,840,526
34 36 of 49
Burbank Model Rates Applied to Glendale Data
Categories
# of
Businesses Base Rate Unit Rate Unit Type
Est #
of
Employees
Estimated
Revenue
Manufacturing, Wholesaling, Retailing 1855 $112.85 $6.75 Employee 27,599 $383,105 Business Services 4175 $112.85 $10.55 Employee 34,975 $796,089 Professions and Related Occ. 658 $112.85 $13.70 Employee 2,298 $96,723 Unclassified 1085 $112.85 $10.55 Employee 1,663 $128,535 Contractors 162 N/A 0.001 Gross Receipts
(Max: $530) 305 $60,288
Apartments 126 N/A $11.30 Per Unit 189 $12,814
Hotels and Motels 60 N/A $22.60 Per Unit 2,061 $135,600 Commercial Rental 1355 $112.85 $2.25 Per 100 Sq. Ft. 3,006 $495,662 Total: $2,108,816
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Questions & Comments
36 38 of 49
City of Glendale
Cannabis Retail Tax
Presented By: HDL Companies
Mark Lovelace, Senior Advisor
37 39 of 49
Background
• The City of Glendale currently prohibits cannabis businesses. • This analysis seeks to develop estimates for the amount of revenue that may be generated through a retail cannabis tax. • All revenues from a cannabis tax would be available for general City expenses.
38 40 of 49
Cannabis Retailers in the Glendale Region
39 39
41 of 49
Cannabis Taxes/Fees in the Region
40 42 of 49
Cannabis Retail Tax Revenue Projections
41 43 of 49
IF THE MEASURE PASSES
• City under no obligation to allow cannabis businesses • Tax measure would provide protection in the event
the state requires the City to allow cannabis retailers • The Council could adjust the tax rates as it sees fit, up to the maximum rate
• If the City wanted to allow some types of cannabis
businesses, the City would have a great deal of
control over the time, place and manner of regulations
42 44 of 49
Questions & Comments
43 45 of 49
2 CITY OF GLENDALE, CALIFORNIA
REPORT TO THE SPECIAL CITY COUNCIL
AGENDA ITEM
Report: Use of City Days at the Alex Theatre: Armenian Fairytale’s 30th Anniversary Show
1. Council motion to approve use of one of twelve annual City Days at the Alex Theatre for the Armenian Fairytales 30th Anniversary Show on May 18, 2024.
COUNCIL ACTION
Item Type: Action Item
Approved for April 30, 2024 calendar
EXECUTIVE SUMMARY
The City of Glendale’s Community Development Department is requesting use of one of the City’s 12 annual rent-free dates at the Alex Theatre to sponsor the Armenian Fairytale’s 30th Anniversary Show at the Alex. This request would represent the third of twelve dates.
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22 5
1 0
3 RECOMMENDATION
Provide direction for utilization of one rent-free date at the Alex Theatre.
ANALYSIS
As part of the Management Agreement, SAS agreed to provide the City with 12 annual days of Theatre use, free of facility rental charge. In addition to events actually hosted by the City, the City may sponsor community groups, who meet the minimum criteria and receive City Council approval, by providing them use of one of these 12 dates. The facility rental fee is waived by the Theatre for these groups, but all other costs associated with the use of the Theatre will be covered by the group requesting the sponsorship.
This request comes from Armenian Fairytales, a non-profit organization and after school program which has been serving the Glendale community for 30 years. Their mission is to provide children of all ages an opportunity to experience musical theatre and to stay close to their heritage, including old time stories and history of Armenian culture in the Armenian language.
Throughout the year, Armenian Fairytales has acting, vocal lessons, and dance classes to prepare for the annual holiday shows held every December at the Alex Theatre. This year, marking the 30th Anniversary, the group will be hosting two shows, in May and December.
Pre-pandemic, most shows sold out the Theatre. Post-pandemic, audiences have reduced to 900-1,000, but still surpass the requirements to request the sponsorship.
The upcoming event will be held Saturday, May 18, 2024 at 5:00 pm. The request of a weekend event has been vetted with Alex Theatre staff and agreed upon due to the organization’s long-standing history with the Theatre – producing annual shows at the Alex for 30 years.
STAKEHOLDERS/OUTREACH
Marketing for the event will take place through the organization’s large base, and all regular Alex Theatre ticket marketing outlets.
Details for those interested in requesting sponsorships can be found on the City website at: glendaleca.gov/government/departments/community-development/cdd- administration/alex-theatre-sponsorship
And the Alex Theatre website at: https://www.thealex.com/sponsorship
FISCAL IMPACT
There are no costs to the City of Glendale for sponsoring this event.
ENVIRONMENTAL REVIEW (CEQA/NEPA)
CEQA does not apply to projects where the lead agency determines "with certainty that 47 of 49
32 5
1 0
3 there is no possibility that the activity in question may have a significant effect on the environment." CEQA Guidelines (14 Cal. Code Regs.) § 15061(b)(3). Here, the action involves hosting two shows within a built environment. There is no possibility that the action of hosting continued shows within the Theatre may have a significant effect on the environment.
CAMPAIGN DISCLOSURE
This item is exempt from campaign disclosure requirements.
ALTERNATIVES TO STAFF RECOMMENDATION
Alternative 1. Do not approve utilization of one of twelve of the City days at the Alex Theatre. The show will continue without City sponsorship.
Alternative 2. Consider another alternative not proposed by staff.
ADMINISTRATIVE ACTION
Submitted by:
Bradley Calvert, Director of Community Development
Prepared by:
Tamar Sadd, Deputy Director of Community Development
Approved by:
Roubik R. Golanian, P.E., City Manager
EXHIBITS/ATTACHMENTS
48 of 49
spcc_04302024_motion_1a.pdf
MOTION
Moved by ______________, seconded by _____________, that the City Council of the City of Glendale hereby approves use of one of twelve annual City Days at the Alex Theatre for the Armenian Fairytales 30th Anniversary Show on May 18, 2024.
Vote as follows:
Ayes:
Noes:
Absent:
Abstain:
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