ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1D6- 2ABE915A0C1C ak.;• tl
Los GATOS— PROPOSAL FOR STUDY 1( FISCAL CONDITION) AND STUDY 2( FISCAL IMPACT) Statement Regarding Insurance Coverage and Worker' s Compensation Insurance Acknowledgement Certificate ( Willdan)
ATTACHMENT 4- STATEMENT REGARDING L\ SLTR . NC:E COVERAGE AND
WORKER' S COMPENSATION INSURANCE ACKNOWLEDGMENT CERTIFICATE THIS FORM'_4fLTST BE PRINTED OUT, COMPLETED AND SUBMITTED WITH THE
PROPOSAL
FISCAL CONDITION ANALYSIS WITH FIVE-YEAR AND LONG-TERM FORECAST,
FISCAL IMPACT ANALYSIS, AND ASSET LIABILITY MANAGEMENT STUDY PROPOSER HEREBY CERTIFIES that the Proposer has reviewed and understands the insurance coverage requirements specified in the REP. Should the Proposer be awarded a contract for Services, Proposer further certifies that the Proposer can meet the specified requirements for insurance, including insurance coverage of any subcontractors, and agrees to name the Town as additional insured for the Services specified.
By certifying this form_the Proposer also understands the Worker' s Compensation insurance requirement per the California Labor Code_ Sections 1860 and 1861:
I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for worker' s compensation or to undertake self-insurance in accordance with the provisions ofthat code, and I will comply with such provisions before commencing the performance of the work of this contract.
Willdan Financial Services
Name of Proposer( Person, Finn. or Corporation)
Si ature of Proposers Authorized Representative
Chris Fisher, Vice President/Director
Name Title ofAuthorized Representative
09- 22- 202 5
Date of Signing
NHA IADVISORS Page15
Financial& Policy Strategies.
Delivered. R A F T E L I S frWILLDAN Page 356
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C ct.ci Los GATOS— PROPOSAL FOR STUDY 1( FISCAL CONDITION) AND STUDY 2( FISCAL IMPACT)
3. SCOPE COMMENTS AND METHODOLOGY
Introduction: How This Proposal is Organized
This proposal, in response to the requirements of the Town' s RFP, is organized as two separate proposal documents. The first proposal document ( this document) contains the material required by the RFP for Study 1 and Study 2. The second proposal document( submitted separately from this document) contains the material for Study 3, and our proposed optional Study 4 for Wildfire Risk Mitigation.
Raftelis, a public sector management consulting firm with a national practice, is responsible for Study 1.
Willdan, a public sector focused civil engineering and financial consulting firm, also with a national practice, is responsible for Task 2. NHA Advisors, a municipal advisor with a statewide practice, is responsible for Study 3. We believe that all three (and potentially four) studies are integrated and inform each other. The outputs from both Study 2 and the Study 3 will inform Study 1. Furthermore, we see the best way of delivering Study 3, Task 3(" Reserves Guidance") is through careful scenario design for outputs of the Study 1 fiscal condition analysis model.
Consequently, we have added to this Study 1 and Study 2 proposal document an additional task, " Task 0:
Team Management." We see this as key to delivering the outcomes that the Town wants from this work.
This also means that the bulk of the background information and certifications required for NHA Advisors is in the second proposal document for Study 3, not in this Study 1 and Study 2 proposal document.
We acknowledge that our team' s combined cost for all three studies is large. The Town is asking for a lot.
We believe our team is capable of delivering everything the Town is requesting. With respect to cost, please consider this: public agencies pay amounts greater than our combined proposal cost for engineering/ design for major public works projects. The Town' s RFP is analogous to the Town retaining a team to engineer and design a major project. In this case, the major project is a financial management structure designed to work for years into the future. That is the ultimate deliverable for our combined proposals for Studies 1, 2 and 3. We commit to delivering this financial management tool and structure within the proposed costs for both the Study 1 and Study 2 proposal, and the Study 3 proposal.
Task 0: NHA' s Role as Team Manager
We see team management as crucial to delivering the outcomes that the Town wants from this effort. As explained in " Scope and Methodology", we see two key elements for team management:
Communication amongst all team members, Town staff and other stakeholders Careful scenario design for the outputs of the Study 1 Fiscal Condition Analysis NHA' s qualifications to take the role of Team Manager for this assignment are robust:
As a municipal advisor to multiple public agencies bringing large projects out of the ground we have learned how to coordinate and collaborate with multiple consultants and stakeholders to deliver funding for these projects. We know how to manage complex and disparate teams to deliver money. We believe this experience is very analogous to what the Town needs through their RFP.
NHA IADVISORS Page16
Financial& Policy Strategies. R R A F T E L I S 'WWI LLDAN Delivered.
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C ct. Itia o) Los GATOS— PROPOSAL FOR STUDY 1( FISCAL CONDITION) AND STUDY 2( FISCAL IMPACT) NHA staff has comparable experience to what both Raftelis and Willdan are responsible for.
NHA does a much lighter version of the Study 1 fiscal condition analysis for our client base.
While we do not typically do the granular, comprehensive modeling that Raftelis will deliver, we understand how such models work. With respect to Willdan' s analysis for Study 2, Mark Northcross, our proposed team manager, spent 5 years at the beginning of his career preparing fiscal impact analysis for Environmental Impact Reports on new development. He has a fundamental understanding of Willdan' s deliverable for Study 2.
NHA' s core expertise is in delivering funding for public projects, including operational needs.
We understand the constraints and opportunities available to local government in California for raising new funding - whether grants, taxes through ballot measures, impact fees or public/ private partnerships. We believe that Mark Northcross' expertise is important in outlining potential long-term financial management practices and strategies for the Town.
Scope and Methodology: We see two core functions for NHA' s role in Team Management, as described below:
1. Facilitating Good Communication. Based on long experience, we believe that the best way of facilitating good communication for the team is to have pre- scheduled standing Teams/ Zoom calls on a regular basis. It does not matter whether the call is very short, or goes on for an hour. Regular calls ensure that we keep momentum going and keep everyone fully informed on what other team members are doing. In that spirit, we suggest the following protocol for standing calls:
o Town staff and NHA Advisors - once per week
o Town staff, NHA Advisors, Raftelis and Willdan - biweekly o Town staff, NHA Advisors, Raftelis, Willdan and other potential stakeholders - once per month.
2. Scenario Design. Once both Raftelis and Willdan have completed their work, we see Scenario Design as the key next step in delivering what the Town wants. Scenario Design is a key component for Activity 3 in the Raftelis Study 1 proposal. We also see the Task 3 deliverables of both Funding Needs & Risk Reduction and Reserve Guidance as being integral to Scenario Design. As Team Manager, NHA will facilitate the dialogue between Town staff, team members and other stakeholders to develop multiple scenarios for the fiscal condition model.
Cost: NHA' s incremental cost for serving as Team Manager is not-to-exceed $ 17, 500, whether or not NHA is selected for the Task 3 work. This will be billed on a time and materials basis, providing the Town control over this expense.
NHA IADVISORS Page17
Financial& Policy Strategies. R R A F T E L I S 'WWI LLDAN Delivered.
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Los GATOS- PROPOSAL FOR STUDY 1( FISCAL CONDITION) AND STUDY 2( FISCAL IMPACT) Study 1: Fiscal Condition Analysis— Raftelis
The following material is provided by Raftelis for Study 1. As required by the RFP, this material can be considered as a stand-along proposalfor Raftelis to prepare Study 1, should the Town choose to retain Raftelis, but not Willdan and/ or NHA.
Fiscal Condition Assessment Methodology
The Town of Los Gatos is seeking a consultant to conduct a Fiscal Condition Analysis with Five-Year and Long- Term Forecast. This effort will provide a transparent assessment of the Town' s current fiscal health, develop projections of future revenues and expenditures, and identify risks and opportunities that could impact long-term financial sustainability. The resulting forecast will serve as a living tool for Town staff, elected officials, and the Finance Commission to evaluate fiscal strategies, plan for uncertainty, and communicate clearly with the public.
Our team brings extensive experience working with local governments in California and across the country to develop may. long-term financial forecasts and plans. We understand that the most effective solutions are those that are practical,
implementable, and aligned with the culture and capacity of the organization. Innovative recommendations only add value if they can be put into practice and embraced by both staff and the 14) community.
We pride ourselves on our ability to listen, analyze, and collaborate with our clients to develop actionable solutions. Our prior engagements have resulted in the adoption of
recommendations that were not only technically sound but also politically and operationally feasible. We do not bring a prepackaged approach; instead, we tailor our methodology to the specific needs and priorities of each client.
Los Gatos, like many California communities, faces a challenging fiscal outlook. Rising costs of public services, increasing pension and OPEB obligations, and infrastructure demands place ongoing pressure on limited resources. At the same time, State housing mandates and the broader economic environment introduce uncertainty in both revenues and expenditures. The Town has long demonstrated sound fiscal management, but to maintain that strength in the years ahead requires careful planning, transparent forecasting, and proactive risk assessment.
Our approach builds on the Town' s existing capacity, while providing the tools, analysis, and training necessary for staff to sustain the forecasting model into the future. By combining rigorous financial analysis with stakeholder engagement and scenario testing, we will deliver a forecast that is not only technically robust but also aligned with the Town' s decision- making needs.
We are excited about the opportunity to assist Los Gatos in strengthening its fiscal planning capacity. Our intentional approach — grounded in respect for the staff who serve the community and focused on collaboration — ensures that the results of this project will be meaningful, actionable, and sustainable.
NHA IADVISORS Page18
Financial& Policy Strategies. R A F T E L I S LLDAN
Delivered.
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C 114,
Los GATOS— PROPOSAL FOR STUDY 1( FISCAL CONDITION) AND STUDY 2( FISCAL IMPACT) Activity 1: Project Initiation
We will begin this engagement by facilitating a virtual kick-off meeting with the Town' s project team to review the details and expectations of this effort and to finalize the project schedule. During this session, we will confirm deliverables, establish communication protocols, and identify milestones for internal staff review, Finance Commission briefings, and Town Council presentations. We will also discuss the Town' s objectives for the long-term financial planning process, the anticipated uses of the model, and any initial concerns or issues that may shape the work.
We will conduct one- on- one meetings with the Town Manager and Finance Director to understand their perspectives on fiscal priorities, risks, and the intended role of the forecasting model in the Town' s planning and policy discussions. To ensure elected leadership perspectives are fully incorporated, we will also meet individually with the Mayor and Town Council members. These conversations will provide valuable insights into fiscal priorities, service expectations, and community needs, helping to shape assumptions and test scenarios later in the process.
We will request and review all relevant background information, such as budgets, audited financial statements, financial policies, actuarial reports, capital improvement plans, previous studies, and other supporting documentation. Early review of these materials will provide a foundation for the Fiscal Condition Assessment and help ensure the forecasting model is built on accurate and comprehensive information.
Throughout the project, we will provide the Town with regular status reports designed to maintain project progress and budget, identify and resolve emerging issues, and review interim work products. In addition to formal reporting, we anticipate numerous informal opportunities for Town staff to raise questions, share updates, or clarify assumptions with our project team. We welcome this open communication, as it will contribute to a more effective and successful project.
Meetings: Deliverables:
Kick- off meeting with Town' s project team Kick- off meeting agenda Draft and final project schedule
Data/ document request
Activity 2: Assess Fiscal Condition
Following the kick-off, we will conduct a comprehensive assessment of the Town' s current fiscal condition to establish the baseline for the long- term financial forecast. This activity begins with a detailed review of financial data to identify historical trends and current pressures, followed by structured engagement with Town staff and external partners to validate assumptions and incorporate operational and capital planning needs. The result will be a complete and transparent understanding of Los Gatos' fiscal health that can serve as the foundation for modeling and scenario analysis.
NHA IADVISORS Page19
Financial& Policy Strategies. R A F T E L I S 1IWI LLDAN Delivered.
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C ct.ci Los GATOS— PROPOSAL FOR STUDY 1( FISCAL CONDITION) AND STUDY 2( FISCAL IMPACT) Financial Data Review— Examine audited financial statements, budgets, interim financial reports, reserve policies, actuarial valuations, and cash flow records to identify revenue and expenditure trends, assess structural balance, and capture major fiscal pressures.
Finance & Budget Staff Sessions — Conduct two full days of virtual meetings with Finance and Budget staff to validate our interpretation of trends, confirm assumptions, and understand the Town' s forecasting methodologies and internal budget processes.
Department Director Discussions— Facilitate two full days of virtual meetings with department directors to gather insights on operational pressures, long-term service delivery needs, capital planning requirements, and other anticipated budget drivers.
External Agency Interviews— Meet with agencies such as the Fire District and Sewer District to incorporate intergovernmental obligations and cost-sharing arrangements into the fiscal assessment.
Capital Improvement Program Review — Analyze the Town' s CIP to evaluate funded and anticipated projects, align infrastructure investment needs with available resources, and identify future fiscal pressures.
Debt and Reserve Assessment— Evaluate the Town' s debt structure, repayment schedules, debt ratios, and reserve adequacy to determine capacity and resilience.
Unfunded Liability Analysis — Identify long-term obligations such as pensions, OPEB, and labor costs, along with structural cost drivers that could impact sustainability.
Environmental Scan — Review regional economic conditions, demographic trends, and State mandates ( e. g., housing requirements, revenue shifts) that may influence future fiscal outlook.
Benchmarking Against Peers — Compare Los Gatos' fiscal condition to comparable California municipalities using State Controller and GFOA data to highlight areas of strength and vulnerability.
We will prepare a draft Fiscal Condition Assessment memorandum that synthesizes these analyses into a clear picture of the Town' s current fiscal position. This draft will be reviewed virtually with the Town' s project team, allowing staff to validate assumptions, suggest refinements, and ensure accuracy. Following these discussions, we will make necessary adjustments and finalize the memorandum. This finalized assessment will serve as the baseline understanding of Los Gatos' fiscal position — the foundation for the long- term financial forecasting model and a reference point for evaluating future policy scenarios.
Meetings: Deliverables:
Two days of virtual meetings with Finance and Draft and Final Financial Condition Assessment Budget staff memoranda
Two days of virtual meetings with department
directors
Interviews with external partners( e. g., Fire
District, Sewer District)
Virtual review session with the Town' s project
team on draft Fiscal Condition Assessment
NHA IADVISORS Page20
Financial& Policy Strategies. R R A F T E L I S 'WWI LLDAN Delivered.
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C eVLos GATOS— PROPOSAL FOR STUDY 1( FISCAL CONDITION) AND STUDY 2( FISCAL IMPACT) Activity 3: Develop Forecasting Model
In this Activity, the project team will develop a robust but user-friendly financial model that projects revenues and expenditures across a ten-year horizon for the Town' s General Fund, while also accounting for interrelationships with other funds and external obligations. The model will build directly on the Fiscal Condition Assessment and will serve as both a technical forecasting tool and a decision- support resource for Town leadership. It will be detailed enough to capture the complexity of Los Gatos' fiscal structure, yet designed to be intuitive and easy to use for staff and policymakers.
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This activity will accomplish the following goals: ii
Financial Model Goal 1 — Baseline
Projections: Identify reasonable baseline assumptions based on historical revenue and expenditure trends, validated with Finance and Budget staff. This ensures the model accurately forecasts the Town' s fiscal trajectory and provides a reliable foundation for comparison.
Financial Model Goal 2— Projection Scenarios: Develop alternative scenarios that reflect a range of revenue growth and expenditure pressures. These will allow the Town to compare impacts across varying conditions and evaluate the implications of policy and investment choices. Initial scenarios will include:
o Probable Scenario: Reflecting historical trends adjusted for known economic and demographic factors.
o Policy Scenario: Based on assumptions in the Town' s existing Financial Plan and adopted budgets.
o Constrained Scenario: Illustrating conservative revenue conditions to stress-test sustainability.
Financial Model Goal 3 — Sensitivity Analysis: Create a functional and dynamic tool that can be used to test the fiscal impact of policy alternatives and external conditions in real time. The model will visually illustrate the impact of service, capital, or revenue decisions, enabling informed choices by Town leadership and the governing body.
Financial Model Goal 4— Integration with Related Studies: Work closely with Wildan and NHA Advisors, our proposed partners on Studies 2 and 3, to incorporate their concurrent findings into NHA IADVISORS Page21
Financial& Policy Strategies. R R A F T E L I S 'WWI LLDAN Delivered.
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C 114,
Los GATOS— PROPOSAL FOR STUDY 1( FISCAL CONDITION) AND STUDY 2( FISCAL IMPACT) the model. This collaboration ensures that long-term forecasts reflect both fiscal impact analyses and asset/ liability considerations.
Financial Model Goal 5 — Usability and Staff Training: Ensure the model produces clear, usable dashboards and outputs that support Finance Commission discussions, Town Council deliberations, and public communication. We will train Finance staff on the model, tailor its functionality to staff preferences, and provide documentation so that the tool can be maintained as a living resource into the future.
Our team will prepare a draft model and review its structure, presentation, and functionality with Finance staff and the Town' s project team. We will then develop and vet recommended assumptions under each scenario with staff before incorporating them into the model. Once validated, we will project the Town' s fiscal condition and review results with staff.
The finalized model will be shared in a presentation that highlights the key dashboards, findings, and implications for long-term fiscal sustainability. This will not only meet internal forecasting needs but also provide elected officials and the public with a clear, transparent tool for understanding the Town' s fiscal future.
Meetings: Deliverables:
Workshops with Finance and Budget staff to Draft 10- year financial forecasting model review draft model and assumptions Final 10- year financial forecasting model with Coordination meetings with Wildan and NHA scenario dashboards Advisors Validated scenario assumptions and outputs
Review sessions with the Town' s project team Training sessions and documentation for Finance staff
Activity 4: Final Reporting and Knowledge Transfer
As the culmination of the Fiscal Condition Assessment and financial modeling process, the project team will prepare a comprehensive Long-Term Financial Plan ( LTFP) Report. This report will synthesize the findings of the condition assessment, incorporate the validated assumptions and scenarios from the forecasting model, and present a clear roadmap for sustaining the Town' s financial health over the next decade.
The report will not only document the technical analyses completed during the project, but also translate them into actionable strategies that Town staff, elected officials, and community stakeholders can use to guide decision- making. The document will emphasize clarity, accessibility, and alignment with Los Gatos' fiscal priorities and policy objectives.
This activity will accomplish the following goals:
NHA IADVISORS Page22
Financial& Policy Strategies. R A F T E L I S LLDAN
Delivered.
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C I;
Los GATOS— PROPOSAL FOR STUDY 1( FISCAL CONDITION) AND STUDY 2( FISCAL IMPACT) Report Integration: Summarize the findings of the Fiscal Condition Assessment, baseline projections, and scenario analysis into a single, cohesive document that provides context and direction for the Town' s financial future.
Policy Implications: Highlight the long-term implications of current fiscal trends and alternative scenarios, clearly identifying where risks may emerge and where opportunities exist to strengthen sustainability.
Strategies and Recommendations: Present recommended fiscal strategies, including reserve policies, debt management approaches, and expenditure prioritization, that support sustainable long-term planning.
Alignment with Related Studies: Integrate findings from Wildan' s Fiscal Impact Analysis and NHA Advisors' Asset Liability Study to ensure consistency across all three efforts and provide Town leadership with a unified financial planning framework.
Accessibility and Communication: Develop a report that includes clear charts, tables, and dashboards drawn from the model, designed for use by both internal staff and external audiences such as the Finance Commission, Town Council, and the public.
Leadership Work Session: Facilitate a dedicated work session with the Town Council to review long-term fiscal trends, discuss key decision points identified in the model, and explore the policy trade- offs that will shape the Town' s financial future. This session will provide elected leaders with the opportunity to engage directly with the analysis and consider how best to align fiscal strategies with community priorities.
The draft Long-Term Financial Plan will be reviewed with Town staff to confirm accuracy and relevance.
Following revisions based on staff feedback, the final report will be produced and presented to Town leadership. A summary presentation will also be provided for the Town Council to ensure findings are communicated effectively and transparently.
E
Meetings: Deliverables:
Virtual review session of the draft Long- Term Draft Long-Term Financial Plan Report Financial Plan with Town staff Final Long- Term Financial Plan Report Work session with the Town Council on trends Presentation materials summarizing findings, and decision points trends, and strategies
Presentation and discussion with the Town
Council on the final report
NHA I ADVISORS Page23
Financial& Policy Strategies. R A F T E L I S 1I W I LLDAN Delivered.
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Los GATOS— PROPOSAL FOR STUDY 1( FISCAL CONDITION) AND STUDY 2( FISCAL IMPACT) lek,\ ofk 7111
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11 11111
Optional Activity 5: Develop Gap Closure Strategies
This optional activity is designed to connect long- term financial planning directly to the operating and capital realities of each department. Its core value is enabling department directors to develop long-term budget adjustment strategies that are explicitly tied to service levels, workload growth, and capital needs emerging from the development patterns identified in Study 2.
Department-Level Strategy Sessions
Before convening the broader workshop, Raftelis will conduct individual strategy sessions with each department director and their key staff. These sessions will:
Identify Development-Driven Impacts: Discuss how the land use and growth assumptions in Study 2 will translate into service demand increases and operational pressures.
Preliminary Costing: Work with each department to outline anticipated operating and staffing needs, as well as capital investment requirements, that may emerge over the 10- year planning horizon.
Service- Level Implications: Pair anticipated investments and budget needs with expected impacts on service levels, customer outcomes, and workload capacity.
Scenario Development: Begin to frame potential strategies ( cost containment, service delivery adjustments, or new revenue sources) that can be tested in the financial model.
Cross-Department Gap Closure Workshop
Following these department-level sessions, Raftelis will facilitate a one-day in- person workshop with Town leadership, division managers, and program managers to:
Synthesize Department Input: Integrate operating and capital estimates across departments into a shared view of Townwide financial needs.
Develop Coordinated Strategies: Refine cost and revenue strategies to address identified structural gaps, ensuring they reflect service- level tradeoffs and cross-department interdependencies.
NHA IADVISORS Page24
Financial& Policy Strategies. R A F T E L I S LLDAN
Delivered.
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Los GATOS— PROPOSAL FOR STUDY 1( FISCAL CONDITION) AND STUDY 2( FISCAL IMPACT) Link to Financial Model: Incorporate these strategies into the Town' s financial model, testing feasibility under multiple projection scenarios.
Assign Ownership: Confirm departmental ownership of strategies for continued refinement and validation, supported by Raftelis' technical expertise.
Value for Leadership and Council
The outcome of this activity is not just a set of abstract fiscal strategies, but a grounded, departmentdriven understanding of how to align operating and capital budgets with development-driven service demands. These strategies will be presented to the Town Council in a structured format during the financial model review, enabling Councilmembers to make informed decisions about fiscal sustainability in the context of community growth and service expectations.
Meetings: Deliverables:
Department strategy sessions( virtual, with each Department- level service impact and cost director) estimate memos
One- day Gap Closure Strategies Workshop Workshop facilitation and support materials Presentation of refined strategies to the Town Gap closure strategies linked to service levels and Council workload expansions
Refined scenarios integrated into the financial
model
Optional Activity 6: Facilitated Decision- support for Town Council
The Town may also find it prudent to engage with a broader group than Town staff and the governing body by forming a stakeholder review committee. A critical step in ensuring the long-term usefulness of the financial plan is helping the Town Council directly connect technical analysis with actionable policy decisions. This optional activity is designed to guide the governing body through a structured decisionmaking process that translates financial trends, gap- closure strategies, and cross- study findings into clear and publicly digestible choices.
Facilitated Council Workshop
Raftelis will facilitate a dedicated decision- making workshop with the Town Council that will:
Integrate Cross- Study Findings: Bring together the results of the financial model ( Study 1), fiscal impact analysis ( Study 2), and asset/ liability review ( Study 3) to ensure Councilmembers are considering the full picture of the Town' s long-term fiscal outlook.
Present Gap- Closure Strategies: Summarize the department- driven strategies developed in Optional Activity 5, highlighting associated service- level tradeoffs, capital requirements, and fiscal outcomes.
NHA IADVISORS Page25
Financial& Policy Strategies. R A F T E L I S 1IWI LLDAN Delivered.
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Los GATOS— PROPOSAL FOR STUDY 1( FISCAL CONDITION) AND STUDY 2( FISCAL IMPACT) Decision Support Tools: Provide structured " decision packages" that synthesize technical analysis into accessible formats, ensuring elected officials and the public understand the trade- offs, risks, and opportunities associated with each option.
Prioritization Process: Facilitate discussions that allow the Council to evaluate and prioritize options, ensuring clear alignment between fiscal capacity, policy goals, and community expectations.
Direction Setting: Capture Council decisions and provide Town staff with clear, documented guidance to support long-term planning, budgeting, and implementation efforts.
Value for Leadership and the Community
This workshop represents an opportunity to bridge detailed technical analysis with strategic decisionmaking. By translating the results of Studies 1, 2, and 3 into actionable choices and providing facilitation expertise, Raftelis will ensure that the Town Council is empowered to set a clear direction for staff and communicate trade- offs effectively to the community.
Meetings: Deliverables:
Governing Body Decision- Making Workshop Council workshop agenda and facilitation materials Decision- support packages synthesizing financial,
service level, and workload trade- offs
Summary of Council decisions and direction for
staff Budget Task Force recommendations
NHA IADVISORS Page26
Financial& Policy Strategies. R A F T E L I S 1IWI LLDAN Delivered.
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Los GATOS— PROPOSAL FOR STUDY 1( FISCAL CONDITION) AND STUDY 2( FISCAL IMPACT) Study 2: Fiscal Impact Analysis - Willdan
The following material is provided by Willdan for Study 2. As required by the RFP, this material can be considered as a stand- along proposal for Willdan to prepare Study 2, should the Town choose to retain Willdan, but not Raftelis and/ or NHA.
Project Understanding
The Town of Los Gatos (" Town") is seeking a Fiscal Impact Analysis ( FIA) to evaluate the potential fiscal effects of multiple large development proposals on the Town' s General Fund. The analysis will estimate recurring revenues and costs under best- case, baseline and worst-case scenarios through 2040.
The team members assembled for this engagement have extensive experience with financial modeling in Excel for a broad range of financial analyses. Stemming from the team' s experience managing long-term financial models of all types for cities, counties, school districts, toll road agencies, port authorities and other public entities, Willdan uses a modified version of the F1F9 financial modeling style to allow for the analysis of just about any type of cost or revenue, from the simplest to the most complex. Using the principles of structured design, transparency, robust annotation and adherence to sound financial modeling principles, our models are built to be flexible, auditable and easy to maintain and adjust to match the needs of the client.
Quality Control/ Quality Assurance ( QA/ QC) is integrated into our team' s process. However, when dealing with large, complex financial models, the importance of adhering to time- tested financial modeling principles cannot be underestimated. This makes the initial modeling process less likely to result in errors and also makes errors easier to identify and fix during the QA/ QC process.
The core of the financial model is a " back-end" simply formatted horizontal cash flow worksheet that contains all necessary calculations, assumptions and formulas. The formula- based back-end model can be easily audited and reviewed for assumptions and consistency. From there, we transpose the data into a more readable vertical format so that it can be presented in the report and/ or the presentation. These tables will be robustly annotated and formatted for visual appeal and readability.
The draft report will be provided to the City in MS Word format. For each round of comments/ edits, clean and redline versions will be distributed. When the report is finalized, a final Word file and PDF will be provided so that text and tables can be added to staff reports and/ or other City documents, as needed.
Willdan uses Enterprise Artificial Intelligence (Al) occasionally and sparingly when developing work products. Examples may include the following:
To accelerate the process of finding a specific law or industry best practice.
To receive suggestions for word choice, formatting and/ or visual presentation of results.
Discovering lesser- used functions in Excel or save time developing regular expressions, conditional formatting formulas or similarly complex tasks.
Willdan does not use Al output directly in reports or use any suggestion provided by Al without first verifying, validating and/ or auditing the results. Furthermore, the Enterprise Al software that we use does not share, store, or train on our data, ensuring complete confidentiality and compliance with client privacy requirements.
NHA IADVISORS Page27
Financial& Policy Strategies. R A F T E L I S LLDAN
Delivered.
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Iti
Los GATOS— PROPOSAL FOR STUDY 1( FISCAL CONDITION) AND STUDY 2( FISCAL IMPACT) Work Plan
If selected, Willdan will provide fiscal impact analysis consulting services for the Town of Los Gatos. This scope of services is designed to directly respond to the Town' s request and will remain flexible in collaboration with Town staff as the project evolves.
Willdan' s scope of services and project approach incorporates the following:
Regular meetings, email communication, and telephone conversations with Town staff as needed during the course of the engagement.
Review and synthesis of all available financial, entitlement, and planning documentation.
Development of fiscal impact scenarios, including baseline, optimistic, and conservative cases, projecting through 2040.
Inclusion of both recurring and specified one-time revenues, operating and capital costs, and net fiscal results.
Preparation of a clear, accessible final report and presentation materials for Town staff, elected officials, and the community.
Task 1: Data Collection and Review
Description: Obtain the following data associated with the proposed fiscal impact analysis, as well as review the documentation.
Town budget, CAFRs, and other relevant financial data.
Current and planned land uses, zoning, and development schedules.
Demographic and employment data related to residential and commercial growth.
Assessor parcel data and tax rate area information.
Service level data, departmental cost information, and historical capital investment records.
Selected project plans, entitlement documents, and construction timelines.
Anticipated construction schedules and occupancy timelines related to the selected projects.
Meeting: Kick- off meeting with Town staff to confirm assumptions, communication protocols, and project deliverables.
Deliverables: Initial data request and meeting summary.
Task 2: Develop Fiscal Revenue and Cost Inputs
Description: Develop fiscal model inputs using a per capita and/ or case study approach based on the Town' s revenue and service structure.
Calculate recurring revenue assumptions ( property tax, sales tax, TOT, utility users tax, franchise fees, licenses, permits, fines, and other sources). Revenue modeling will generally be calculated using project-specific assumptions in a case study format.
Estimate service costs for major departments, including police, fire, parks, public works, and general government. Cost models will generally be growth- based.
Incorporate service population assumptions, using weighted employment equivalents where appropriate.
NHA IADVISORS Page28
Financial& Policy Strategies. R R A F T E L I S 'WWI LLDAN Delivered.
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C ct. Itici Los GATOS— PROPOSAL FOR STUDY 1( FISCAL CONDITION) AND STUDY 2( FISCAL IMPACT) Incorporate other locally controlled revenues ( e. g. from third- party partners) at City' s request.
Deliverables: Revenue and cost input, formatted in summary tables.
Task 3: Fiscal Modeling and 20-Year Impact Analysis
Description: Produce a fiscal impact model using the assumptions and revenue/ cost inputs. The model will analyze the fiscal impacts of growth through 2040 using three scenarios.
Best- case, baseline, and conservative scenarios will be produced.
Capital cost estimates based on discussions with Public Works staff and review of historical investments. Willdan will discuss assumptions incorporated into capital cost estimates and confirm with City staff to arrive at preferred methodology.
Sensitivity testing will consider range of possibilities for service- population growth, property values, cost escalation and revenue volatility to highlight fiscal risks and ranges of potential outcomes.
Deliverables: Tables and visualizations showing net fiscal impacts, breakdowns of revenue and cost categories, and scenario results through 2040.
Task 4: Report Preparation and Presentation
Description: Prepare administrative draft report that updates and explains the results, description of approach and assumptions. Based on discussions with project team and City staff, a final report and presentation will be produced. The report will contain the following elements:
Annual fiscal impact model that estimates revenues, costs and net impacts for each year through 2040 for each scenario.
Charts and tables that present the data and assumptions clearly and in a visually appealing manner.
Qualitative analysis of the fiscal impacts of each type of development and level of density.
Meeting: Presentation of results to Town staff, Council, or designated commissions, as needed.
Deliverables: Fiscal Impact Analysis Report and presentation materials (PowerPoint or similar).
Willdan will rely on the validity and accuracy of Town and developer data and documentation to complete the analysis. The capital cost analysis will be based on discussions with staff and past investment levels, not an engineering or infrastructure capacity analysis.
Willdan will not independently verify the accuracy of data provided by the Town or third parties and will not be responsible for errors that result from inaccurate data.
Client Responsibilities
To complete our tasks on schedule, we will need the cooperation of Town staff. We suggest that the Town assign a key individual as project manager. We will expect the Town' s project manager to:
Help resolve policy issues;
Coordinate responses to requests for information; and
NHA ' ADVISORS Page29
Financial& Policy Strategies. R R A F T E L I S 'WWI LLDAN Delivered.
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C bcitLos GATOS— PROPOSAL FOR STUDY 1( FISCAL CONDITION) AND STUDY 2( FISCAL IMPACT) Coordinate review of work products.
Project Disclaimer
Willdan is a registered municipal advisory firm with the U. S. Securities and Exchange Commission(" SEC'), as such the Town of Los Gatos represents, acknowledges, and agrees that Willdan is not acting as a municipal advisor" ( as defined by the SEC), to the Town, in any capacity as it relates to the project proposed in this Fiscal Analysis proposal.
i) The Town uses, or may use, the services of one or more municipal advisors registered with the SEC to advise it in connection with municipal financial products and the issuance of municipal securities; ii) The Town is not looking to Willdan to provide, and the Town shall not otherwise request or require Willdan to provide any advice or recommendations with respect to municipal financial products or the issuance of municipal securities ( including any advice or recommendations with respect to the structure, timing, terms, and other similar matters concerning such financial products or issues); iii) The provisions of this proposal and the services to be provided hereunder as outlined in the scope of services are not intended ( and shall not be construed) to constitute or include any municipal advisory services within the meaning of Section 15B of the U. S. Securities Exchange Act of 1934, as amended the " Exchange Act"), and the rules and regulations adopted thereunder; iv) For the avoidance of doubt and without limiting the foregoing, in connection with any revenue projections, cash- flow analyses, feasibility studies and/ or other analyses Willdan may provide the Town with respect to financial, economic or other matters relating to a prospective, new or existing issuance of municipal securities of the Town , ( A) any such projections, studies and analyses shall be based upon assumptions, opinions or views ( including, without limitation, any assumptions related to revenue growth) established by the Town , in conjunction with such of its municipal, financial, legal and other advisers as it deems appropriate; and ( B) under no circumstances shall Willdan be asked to provide, nor shall it provide, any advice or recommendations or subjective assumptions, opinions or views with respect to the actual or proposed structure, terms, timing, pricing or other similar matters with respect to any municipal financial products or municipal securities issuances, including any revisions or amendments thereto; and
v) Notwithstanding all of the foregoing, the Town recognizes that interpretive guidance regarding municipal advisory activities is currently quite limited and is likely to evolve and develop during the term of the potential engagement and, to that end, the Town will work with Willdan throughout the term of the potential Agreement to ensure that the Agreement and the services to be provided by Willdan hereunder, is interpreted by the parties, and if necessary amended, in a manner intended to ensure that the Town is not asking Willdan to provide, and Willdan is not in fact providing or required to provide, any municipal advisory services.
NHA ' ADVISORS Page30
Financial& Policy Strategies. R A F T E L I S 1IWI LLDAN Delivered.
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Los GATOS— PROPOSAL FOR STUDY 1( FISCAL CONDITION) AND STUDY 2( FISCAL IMPACT)
4. EXPERIENCE AND EXPERTISE NHA Clients Served*
Firm Qualifications — NHA Advisors
https:// nhaadvisors. com/ to BONDS
NHA Advisors, LLC is an Independent Registered Municipal
CONSULTING
Advisor registered with the SEC and MSRB and headquartered I
in San Rafael, California. NHA has been providing municipal et • A
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advisory services ( like the size and scope requested by the 0001 - Town' s RFP) to California cities, special districts, and other 0 0
public agencies since 2000 ( formerly known as Northcross Hill 041 Ach, Inc. from 2000- 2011). NHA has provided
comprehensive financial and consulting services to over 170 0 public agencies throughout California, with a primary focus on California cities and special districts. r®
NHA' s experience with California cities spans from rural, small cities to major metropolitan agencies, which informs NHA of * Dots represent client engagements from 2012- Present
the problems facing public agencies across the State and allows NHA to bring creative examples and solutions to our clients. We understand the time and staff resource constraints required to develop funding strategies and financing plans and believe our holistic approach allows us to be an " extension of staff" that will integrate with Town staff to provide the best solution and process for projects.
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With an eye toward providing un- matched MUNICIPAL ADVISOR RANKINGS FOR CALIFORNIA CITIES service levels, NHA has developed eight Transactions( January 2020- Present) y specialized practice groups that focus on key
areas within municipal finance. These groups
enable us to provide guidance on a wide
range of municipal finance issues.
Since 2020, NHA has been the top municipal
advisor, by number of bond transactions for
California cities ( Source: California State
Treasurer as of July 15, 2025; excludes
commercial paper and conduit financings;
January 2020-present).
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Source: raujormasm( e reomrera+ of7/ ts/ 2025, erou&,< ammer ial p psrond< and finoncngs NHA I ADVISORS Page31
Financial& Policy Strategies. R A F T E L I S 1I W I LLDAN Delivered.
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C S) Los GATOS— PROPOSAL FOR STUDY 1( FISCAL CONDITION) AND STUDY 2( FISCAL IMPACT) Firm Qualifications — Raftelis
https:// www. raftelis. com/
Since our founding in 1993, local government and utility leaders have partnered with Raftelis to transform their organizations by enhancing performance, planning for the future, identifying top talent, improving their financial condition, and telling their story. At Raftelis, we know that the people who lead local governments and utilities are constantly seeking ways to provide better service to the communities that rely on them. That' s why we provide the best insights and expertise, exceptional talent, and trusted advice and experience—so your organization and your community can thrive. Local government leaders partner with Raftelis to transform their organizations by improving their financial condition, enhancing performance, planning for the future, identifying top talent, and telling their story. With more than 190 consultants, we' ve worked with more than Raftelis: HELPING LOCAL 1, 700 local governments and utilities across the country. GOVERNMENTS AND UTILITIES THRIVE.
Raftelis is a subchapter 3- Corporation incorporated in the state of North Carolina on April 23, 2004. The predecessor to Raftelis, Raftelis Environmental Consulting Group, Inc., was established by George A. Raftelis to provide financial and management consulting services of the highest quality to public-sector clients. In 1999, the firm' s name was changed to Raftelis Financial Consulting, PA. Following the sale of a portion of the firm to a group of employees on April 22, 2004, the firm' s name changed to Raftelis Financial Consultants, Inc., which remains the firm' s legal name.
We currently do business as Raftelis and are headquartered in Charlotte, NC, with 15 offices nationwide.
This project will be managed from our Los Angeles office.
We believe that Raftelis is the for this project. We provide several key factors that will benefit Town and help to make this project a success.
FSOURCES AND EXPERTISE, This project will require the resources necessary to effectively staff the project and the skillsets to complete all required components. With more than 190 consultants, Raftelis has one of the largest local government management and financial consulting practices in the nation. Our depth of resources will allow us to provide the Town with the technical expertise necessary to meet your objectives. In addition to having many of the industry' s leading management and financial consultants, we also have experts in key related areas, like stakeholder engagement and data analytics, to provide additional insights as needed.
DECADES OF COLLECTIVE EXPERIENCE• Our associates and subject matter experts have decades of experience strengthening local municipalities and nonprofit organizations. They' ve served in a wide range of positions, from city manager to budget manager to fire chief.
PERSONAL SERVICE FROM c'ENIOR- LEVEI CONSULTANTS: You appreciate it when deadlines are met, phone calls are returned, and your challenges are given in- depth, out-of-the- box thinking. While other firms may assign your business to junior-level people, our approach provides exceptional service from senior- level consultants.
NICHE EXPERTISE: Our expertise lies in strengthening public-sector organizations. We' re consulting specialists rather than generalists, focusing our strengths to do a highly effective job for a specific group of clients.
NHA I ADVISORS Page32
Financial& Policy Strategies. R R A F T E L I S 'WWI LLDAN Delivered.
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C 4 Los GATOS- PROPOSAL FOR STUDY 1( FISCAL CONDITION) AND STUDY 2( FISCAL IMPACT)
RAFTELIS,,
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FIRM CAPABILITIES
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FINANCE: Promote financial integrity and the ORGANIZATIONAL ASSESSMENT: Identify needs, plan equitable recovery of costs to achieve your objectives for the future, and implement positive changes Rate, charge, and fee studies
Organizational and operational assessments
Financial and capital planning
Performance measurement
Cost of service and cost allocation Staffing analysis
Customer assistance programs Sustainability
Affordability analysis
Organizational climate and culture
Utility valuation
Asset management and operations
Budget development Regional collaboration and service sharing Financial condition assessments
Debt issuance support
TECHNOLOGY: Gain insights from your data and
Economic feasibility and analysis develop tools to increase effectiveness and Regulated utility support engagement
Cybersecurity services
Strategic technology planning services
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COMMUNICATION: Inform and engage with your
Financial management technology services
stakeholders to build understanding and support Customer management technology services Strategic communication planning Maintenance and asset management technology services Public involvement and community outreach Data management, analytics, and visualization Public meeting facilitation Custom software solutions
Graphic design and marketing materials
Media and spokesperson training O O EXECUTIVE SERVICES: Identify and develop top talent Risk and crisis communication to lead local governments and utilities Social media strategy Executive recruitment
Visual facilitation Executive coaching
Virtual engagement Executive performance evaluations
Technical writing and content development
SOLID WASTE SERVICES: Deliver effective solid
t STRATEGIC PLANNING/ FACILITATION: waste services while ensuring financial Plan for the future to guide your organization to success sustaina bility and customer engagement Organization, department, and community- based strategic Solid waste plans& sustainable materials management planning planning& implementation
Climate action planning Grant application assistance
Effective Board/ Commission/ Council governance Billing technology planning and implementation Retreat planning and facilitation Collection/ routing and disposal/ processing planning, procurement, and implementation
Rates and financial modeling
C;;;") Benchmarking and best practices
it*.
UTILITY SERVICES: Implement Regulation and compliance
sustainable financial practices to equitably fund
Communications and public engagement
your stormwater program
Stormwater utility development and implementation
support
NHA IADVISORS Page33
Financial& Policy Strategies. R A F T E L I S LLDAN
Delivered.
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C S14, 1
Los GATOS— PROPOSAL FOR STUDY 1( FISCAL CONDITION) AND STUDY 2( FISCAL IMPACT) Firm Qualifications — Willdan
https:// www. willdan. com/ index
Fiscal Impact Analysis Project Experience
Willdan has completed fiscal and economic impact analyses for a variety of projects and public agencies across California. The team proposed for this engagement has prepared dozens of such studies to support planning efforts, development reviews, incorporations, and annexations. A representative selection of project examples is provided below.
Gilead, Chess-Hatch, Mirabella, and Pilgrim- Triton Fiscal Impact Studies, City of Foster City — evaluated the fiscal impact of three specific plans in the City, analyzing the effect of these plans on services, anticipated new revenues and expenditures, and the necessity for new public facilities to serve each proposed project.
Hayward Highway 238 Sites Analysis, City of Hayward — analyzed parcels available to the City for purchase from CalTrans under a number of development assumptions ( such as housing or a commercial center) to determine residual land values and the possible use of public finance mechanisms for infrastructure.
Monterey Downs Fiscal and Economic Impact Analysis, County of Monterey—prepared an analysis of the fiscal and economic impacts of the Monterey Downs project on the City of Seaside and the County of Monterey. Project included residential, retail, hotel and an equestrian facility that includes an event arena.
Imperial Valley Solar Economic Impact Analyses, County of Imperial — evaluated the fiscal and economic impacts of a series of proposed solar voltaic facilities ( or " solar farms") on land near the City of Calipatria. Calculated the tax revenues and service expenditures accruing to the County from development of the project, and estimated the economic impacts, including the impact of the construction and ongoing operation of the solar farm, along with the negative impact of the removal of the project site from agricultural production.
Alameda Point Conceptual Plan Fiscal Impact Analysis, City of Alameda — prepared an estimate of the fiscal impact of the development to provide guidance specific to the range of negotiation of incentives for development. Examined expected project revenues and expenditures required to provide municipal services.
Napa Pipe Specific Plan Analysis, County of Napa — analyzed the fiscal and economic impact of the project on Napa County, as well the City of Napa, and prepared an urban decay analysis.
Loma Rica Specific Plan, City of Grass Valley — prepared a market study, fiscal impact study, and implementation plan for the Loma Rica Specific Plan.
Newark Dumbarton Station Area Plan, City of Newark ( CA) — prepared a market study, economic impact analysis, fiscal impact analysis, and infrastructure implementation plan.
Revenue Enhancement OptionsStudy, City of Duarte—examined options to seek additional revenue as well as realize savings on City services. Analyzed the feasibility and approximate revenue from several sources, including parcel taxes, special taxes, utility user fees, sales tax measures, and others.
Downtown Revitalization Plan, City of Salinas— prepared a market study for the downtown area to identify opportunities for development. Provided advice on fiscal impact issues and financing tools available to assist with construction and rehabilitation of infrastructure in the downtown area.
NHA IADVISORS Page34
Financial& Policy Strategies. R A F T E L I S LLDAN
Delivered.
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Los GATOS— PROPOSAL FOR STUDY 1( FISCAL CONDITION) AND STUDY 2( FISCAL IMPACT)
5. KEY PERSONNEL AND RESUMES
NHA Advisors ( Team Manager)
NHA' s Mark Northcross will serve as Team Manager to coordinate the efforts on Studies 1 and 2, facilitate good communication among the teams, and provide oversight on scenario design for the studies. A summary of Mark' s bio is provided below and full resume is provided in Appendix A.
Mark Northcross, Principal. Role: Team Manager
Mr. Northcross has more than 40 years of public finance experience in California. He is a leading advisor on climate change infrastructure and leads NHA' s alternative financing practice that focuses on " holistic" funding solutions, with special emphasis on SRF, WIFIA, Federal and State grants. Mr. Northcross has also managed the formation of CFDs for P3' s throughout the State since 1987 and is a leader in California in negotiating both public- private partnerships for both land- secured debt and redevelopment. He holds a B.A. in Social Sciences from the University of California, Irvine. He maintains his MSRB Series 50 License.
Raftelis (Study 1)
A summary of the Raftelis Team assigned to perform the scope of work for study 1 is provided in the organizational chart below. Full resumes for the assigned Raftelis team are provided in Appendix B.
Town of Los Gatos
PROJECT MANAGER/ PRINCIPAL IN CHARGE/
LEAD FACILITATOR
Jonathan Ingram
FINANCIAL MODLL STAFF
FACILITATION DEVEP ^ Plh! 1F1. 1F CONSULTANTS
SUPPORT
Emily Uselton Claire Pritchard
Nancy Hetrick Chad Cowan Polly Englot
Willdan (Study 2)
In order to perform the scope of services for Study 2 ( Fiscal Impact Study), Willdan proposes to assign the following team to the Town:
James Edison Managing Principal
Mike Medve Principal Consultant
Jasper Andrade Lead Analyst
Complete resumes for the Willdan team assigned to the Study 2 project are included in Appendix C.
NHA I ADVISORS Page35
Financial& Policy Strategies. R A F T E L I S 1IWI LLDAN Delivered.
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Los GATOS— PROPOSAL FOR STUDY 1( FISCAL CONDITION) AND STUDY 2( FISCAL IMPACT)
6. TIMELINE AND WORK PLAN
Based on the scope of services discussed under Section 3 of this combined Study 1 and Study 2 proposal, our team proposes the timeline in the table below. Based on the schedule in the RFP, we understand that the Town intends to begin the contracting process with its selected consultants the week of September 2029.
Months After Study 1: Fiscal Condition Study 2: Fiscal Impact Study 3: Asset Liability Contract Analysis and Five- Year Analysis Management
Execution Forecast NIA Proposal Provided
Under A Separate Cover)
1 Project Initiation Project Initiation Project Initiation 2 Data Collection and Inventory and Evaluate
Review Liabilities
3 Assess Financial
Condition
4 Develop Forecasting Develop fiscal revenue Funding Needs and Risk Model and cost inputs Reduction Analysis
5 Complete 20- Year Fiscal
ALM Modeling
Impact Analysis
Final Reporting and Finalize Fiscal Impact
6 Reserves Guidance
Knowledge Transfer Model
7 Study 1: Fiscal Condition Analysis ( Raftelis) Additional Project Schedule Details
NOV DEC JAN FEB MAR APR
Activity 1- Proiect Initiation
Activity 2- Assess Financial Condition 410,
Activity 3- Develop Forecasting
Model
Activity 4- Final Reporting&
Knowledge Transfer
In- Person Meetings
Web Meetings
Deliverables
NHA IADVISORS Page36
Financial& Policy Strategies. R A F T E L I S LLDAN
Delivered.
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C ct.ci Los GATOS— PROPOSAL FOR STUDY 1( FISCAL CONDITION) AND STUDY 2( FISCAL IMPACT)
7. SAMPLES OF COMPARABLE PROJECTS
Study 1: Fiscal Condition Analysis ( Raftelis)
Waukesha County Wisconsin
Waukesha County (County) contracted with Raftelis in early 2024 to conduct analyses related to County budget forecasting, gap identification and closure, and facilitation of a Budget Task Force comprised of community leaders to advise on gap closure recommendations. The goal of this engagement was to develop the information and understanding necessary to identify opportunities for improved efficiency and effectiveness of operations, staffing, structure, technology, processes, and policies necessary to provide desired services while operating within the County' s financial constraints. Raftelis completed detailed financial modeling and analysis and facilitated four budget task force meetings comprised of over 30 community members, stakeholders, and municipal and public safety leaders. The Budget Task Force Report for Waukesha County is included in Appendix D to this proposal.
Study 2: Fiscal Impact Study ( Willdan)
Richards Ranch Fiscal Impact Study
The City of Santa Maria and the County of Santa Barbara engaged Willdan in 2025 to perform a fiscal impact study for a mixed- use Richards Ranch Project on the border of the City of Santa Maria in the unincorporated community of Orcutt. The analysis reviewed potential impacts of the Richards Ranch project on the city of Santa Maria General Fund and the County of Santa Barbara general fund. The fiscal impact analysis report is included in Appendix E to this proposal.
8. DISCLOSURE OF ABSENCE OF LITIGATION OR DISCIPLINE OVER LAST FIVE YEARS NHA Advisors ( Team Manager)
There have been no instances in the last five years where NHA Advisors has been terminated in providing advisory services. There are no pending legal actions alleging violations of law against the firm, any partner of the firm, or any employee of the firm by any Federal or State regulatory agency.
Additionally, NHA does not have any legal events and disciplinary history on its Form MA and Form MA- I, which includes information about any criminal actions, regulatory actions, investigations, terminations, judgments, liens, civil judicial actions, customer complaints, arbitrations and civil litigation. The Town may electronically access NHA' most recent Form MA and each most recent Form MA- I filed with the Commission at the following website:
www. sec. gov/ edgar/ searchedgar/ companysearch. html
There have been no material changes to a legal or disciplinary event disclosure on any Form MA or Form MA- I filed with the SEC.
Raftelis ( Study 1)
Description: Raftelis has been joined as a third- party defendant in a lawsuit filed by local developers against the Town of Fuquay- Varina, North Carolina. The subject of this currently pending litigation is development impact fees assessed by the town and developed by Raftelis. This is the only legal case in which Raftelis has been joined as a party in the history of our firm. Raftelis intends to vigorously defend the allegations and claim.
NHA IADVISORS Page37
Financial& Policy Strategies. R R A F T E L I S 'WWI LLDAN Delivered.
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Al
ci Los GATOS— PROPOSAL FOR STUDY 1( FISCAL CONDITION) AND STUDY 2( FISCAL IMPACT) Willdan ( Study 2)
Willdan Financial Services has not been involved in any litigation, arbitration, regulatory proceeding, or disciplinary action within the past five ( 5) years that would affect its ability to perform the services described in this proposal. Willdan is not subject to any conditions ( e. g., bankruptcy, pending litigation, planned office closures, impending merger) that would impede completion of this engagement.
9. REFERENCES
NHA Advisors References ( Team Manager)
Reference For Team Manager Services: Tahoe Douglas Visitors Authority Contact: Carol Chaplin, President & CEO
Contact Address: 4114 Lake Tahoe Blvd. South Lake Tahoe, CA 96150 Contact Phone& Email Address: ( 775) 589 - 2055 I carol@visitlaketahoe. com Start & End Date of Services: 2017 - Present
Coordination between multiple consulting teams, legal counsel, and public agency staff to finance a $ 100 million events center in Stateline Nevada.
NHA' s role in this project was Municipal Advisor to the Tahoe Douglas Visitors Authority. However, that role included a project/ team manager component to coordinate efforts from Description of Services:
consultants ( preparation of multiple studies to support the financing), legal counsel ( efforts among TDVA' s general counsel, bond counsel, and disclosure counsel firms), construction contractors and engineers, and public agency staff at multiple public agencies.
IFee Charged: $ 309, 788 ( total fee charged over 2+ year engagement) Raftelis References ( Study 1)
Commerce City CO
Reference: Theresa Wilson, CFO
P: 303. 289. 3627/ E: twilson@c3gov. com
Cost: $ 153, 610
Raftelis was engaged by the City of Commerce City, Colorado, to develop a comprehensive 10- year LongTerm Financial Plan. Our work included a thorough assessment of the City' s financial condition, analysis NHA IADVISORS Page38
Financial& Policy Strategies. R R A F T E L I S 'WWI LLDAN Delivered.
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Los GATOS— PROPOSAL FOR STUDY 1( FISCAL CONDITION) AND STUDY 2( FISCAL IMPACT) of historical and projected revenues and expenditures, evaluation of debt capacity and reserve policies, and review of the City' s Capital Improvement Program. We developed a robust yet user- friendly financial model that enabled staff to test multiple projection scenarios and evaluate the fiscal impact of different policy and investment choices. The model was designed not only to serve as a forecasting tool but also as a decision- support resource for City leadership and the governing body.
Through a collaborative process that included staff interviews, department-level engagement, and workshops with the City Council and the public, we ensured that the plan reflected both operational realities and community priorities. The final Long-Term Financial Plan provided a clear roadmap for fiscal sustainability, equipping the City with the tools and strategies needed to balance service delivery expectations with underlying revenue growth. The project demonstrated our ability to integrate technical analysis with facilitation and decision- making support—helping Commerce City leadership make informed, transparent, and actionable fiscal choices.
Waukesha County
Reference: Shawn Lundie, Chief of Staff
P: 262. 548. 7902/ E: Slundie@waukeshacounty. gov
Cost:$ 124, 550
Waukesha County ( County) contracted with Raftelis in early 2024 to conduct analyses related to County budget forecasting, gap identification and closure, and facilitation of a Budget Task Force comprised of community leaders to advise on gap closure recommendations. The goal of this engagement was to develop the information and understanding necessary to identify opportunities for improved efficiency and effectiveness of operations, staffing, structure, technology, processes, and policies necessary to provide desired services while operating within the County' s financial constraints. Raftelis completed detailed financial modeling and analysis and facilitated four budget task force meetings comprised of over 30 community members, stakeholders, and municipal and public safety leaders.
City of Irvine
Reference: Dahle Bulosan, Director of Administrative Services P: 949. 724. 6263/ E: dbulosan@cityofirvine. org
Cost:$ 65, 000
In 2025 the City of Irvine engaged Raftelis to perform an assessment of its funding for fire services from the Orange County Fire Authority ( OCFA). The City believed that its special district tax dollars were in excess of services received and sought an independent review and determination. Project work included meeting with City and OCFA leadership, and an extensive and detailed review of OCFA expenditures and revenues, including capital improvement expenditures in particular.
Raftelis concurred with the City that its contributions to OCFA exceeded services received and outlined the pros and cons of various models and alternatives for fire service provision, including estimates for standing up a City- run department and creating a City- specific fire district, among others. The City is undergoing internal discussions as to which method or methods to pursue going forward.
NHA IADVISORS Page39
Financial& Policy Strategies. R A F T E L I S LLDAN
Delivered.
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Los GATOS— PROPOSAL FOR STUDY 1( FISCAL CONDITION) AND STUDY 2( FISCAL IMPACT) City of Centennial
Reference: Jeff Cadiz, Finance Director
P: 303. 754. 3440/ E: lcadiz@centennialco. gov
Cost:$ 38, 800
The City of Centennial ( City) engaged Raftelis to develop an interactive, dynamic, and sustainable model to support a better understanding of past resource availability and resource use, as well as provide mechanisms to forecast future requirements over a 10- year period. The model supports the use of both historical and current information as a basis for projecting revenues, expenditures, and fund balances in the major operating funds. The model is based on budgeted and actual revenue, expenditure, and fund balance data provided by the City of Centennial. Projections are based on a variety of factors, including historical data, the projected future cost of living increases, and other operating information provided by the City. The model is intended to serve as a living document and support updates by the City over time.
City of Loveland
Reference: Tim Sendelbach, Fire Chief
P: 970. 962. 2827/ E: Tim. Sendelbach@lfra. org
Cost:$ 59, 800
The Loveland Fire and Rescue Authority ( LFRA) engaged Raftelis to assist the organization and its supporting partners, the City of Loveland and the Loveland Rural Fire Protection District, with the development of a comprehensive financial plan in the form of an interactive, eight-year financial sustainability model. The model will be used to evaluate the financial environment for the LFRA under current service levels, as well as testing assumptions regarding future impacts from growing service demands and initiatives.
In addition to the comprehensive model, the effort includes an assessment of financial impacts on the baseline and forecasting operating levels, including the following: developing a recommended property tax mill levy for the Loveland Rural Fire Protection District, investigating a proposed Fire Safety Tax, and reviewing the LFRA fee schedule for recommended changes and additions. The result is a comprehensive understanding of LFRA operations and services supported by a sustainable financial approach in order to support executive and Board decisions, as well as incorporation into the intergovernmental agreement for fire and rescue services.
The Woodlands Township T
Reference: Monique Sharp, President and CEO
P: 281. 210. 3831/ E: msharp@thewoodlandstownship- tx.gov Cost:$ 333, 300
The firm has enjoyed a 20- year history of engagements in The Woodlands (Township), with the former Woodlands Community Service Corporation and The Woodlands Township. Our previous experience with The Woodlands includes strategic planning, Board retreat facilitation, development of customer service standards, and the establishment of a performance evaluation system.
NHA IADVISORS Page40
Financial& Policy Strategies. R A F T E L I S LLDAN
Delivered.
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Los GATOS— PROPOSAL FOR STUDY 1( FISCAL CONDITION) AND STUDY 2( FISCAL IMPACT) The Novak Consulting Group, now Raftelis, conducted a detailed financial analysis of incorporation alternatives for the Township. The Township selected us as the sole consulting firm to facilitate its incorporation process. Service sharing—contracting with local municipal utility districts and Montgomery Count — was a critical part of the incorporation assumptions. In 2020, we completed a report on governance planning in anticipation of an upcoming ballot measure on incorporation. This included extensive work on development review and land use plans and forecasts as the community moves forward.
City of Boulder CO
Reference: Jane Brautigam, Former City Manager( retired) P: 720.425. 9757/ E: icbrautigam@gmail. com
Cost:$ 114, 500
The City of Boulder ( City) has engaged the firm for a variety of services since 2010. Part of that effort included the development of a dynamic, user- friendly 10- year financial model to anticipate revenue and expenses and prioritize investments within the context of their long-term financial impact. This effort was later followed by the development of detailed financial and cost-allocation analysis of technology and facilities.
Willdan References ( Study 2)
City of Lancaster, CA
Special Tax Consultant and Community Facilities District Formation Services Willdan assisted the City of Lancaster with a cost of service and fiscal study, and subsequent CFD formation, to fund maintenance services associated with new development projects in the City. The City requested that the special tax rates be lower in the City center to account for the existing availability of resources and lower demand for services within that region. Areas external to the City center generally would require the construction of new public facilities ( community centers, corporation yards, parks, trails, etc.) and would incur greater maintenance demand. Only limited guaranteed revenues were considered in the fiscal analysis. The CFD was formed in early 2021.
Willdan completed special tax analysis and cash flow pro forma analysis for the project, developed a taxing methodology that suited anticipated development, and which apportioned the tax burden among the types of development expected in the areas proposed for inclusion in the CFD, and we prepared the Rate and Method of Apportionment and CFD Report. The first annexation to the CFD took place in Summer 2022.
Fees Charged: $ 45, 000
Client Contact: George N. Harris II, MPA, Director of Finance Tel #: ( 661) 723- 5988 I Email: aharris@cityoflancasterca. org City of Alameda, CA
Fiscal & Economic Impact Analysis
NHA I ADVISORS Page41
Financial& Policy Strategies. R A F T E L I S 1IWI LLDAN Delivered.
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Los GATOS— PROPOSAL FOR STUDY 1( FISCAL CONDITION) AND STUDY 2( FISCAL IMPACT) The City of Alameda engaged Willdan to support the redevelopment of Alameda Point, a former naval air station comprising roughly 1, 400 acres. Willdan' s work included preparing a fiscal impact analysis of the planned development, a facilities financing plan, and a feasibility analysis to evaluate whether projected development could sustain the infrastructure needed to rehabilitate the base. The team also assisted the City in negotiations with developers of the first two parcels and presented findings at several public meetings.
Willdan' s fiscal analysis modeled anticipated General Fund revenues ( property tax, sales tax, and other sources) and expenditures (public safety, maintenance, and park services) at full buildout and for an initial phase. The infrastructure financing plan assessed potential funding sources— including developer equity, assessments, and special taxes— and phased infrastructure costs. The feasibility analysis then evaluated the tax and assessment burden relative to projected land values to determine whether development could reasonably support the City' s long-term financing strategy.
Fees Charged: $ 75, 800
Client Contact: Jennifer Ott, Alameda City Manager
Tel#: ( 510) 747-4700 I Email: manageraalamedaca.gov
City of Hayward, CA
Fiscal Impact Analysis
The City of Hayward had an option to acquire several parcels from CalTrans that had been purchased as right of way for the expansion of Highway 238, connecting Interstate 580 and Interstate 880 through the City. The plan was stopped and CalTrans began the process of selling the land. Hayward reserved an option on certain parcels and needed assistance with the understanding the development potential of the parcels, including fiscal impacts, public finance, land uses, and residual value. This project is ongoing as Willdan assists the City and its elected officials in understanding each parcel and its potential, along with the tradeoffs inherent in City policy goals such as the provision of affordable housing or fostering a vital downtown.
To date Willdan has analyzed five of the parcels under a number of development assumptions to determine residual land value and the possible use of public finance mechanisms for infrastructure. As part of this effort Willdan has provided a sensitivity analysis showing the tradeoffs of various development and policy scenarios ( primarily the effect on residual land value and project feasibility).
Fees Charged: $ 118, 230
Client Contact: Nicole Gonzales, Finance Director, City of San Leandro( Formerly City of Hayward Finance Director)
Tel #: ( 510) 577- 3376 I Email: ngonzales@sanleandro. org NHA IADVISORS Page42
Financial& Policy Strategies. R A F T E L I S 1IWI LLDAN Delivered.
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Los GATOS— PROPOSAL FOR STUDY 1( FISCAL CONDITION) AND STUDY 2( FISCAL IMPACT)
10. PRELIMINARY FEE SCHEDULES
NHA Advisors ( Team Manager)
For work as Team Manager facilitating Studies 1 and 2 described in this proposal, NHA proposes to be compensated based on time and materials required at the hourly rate schedule shown below. We propose a not-to- exceed budget for these services of$ 17,500. This budget equates to approximately 50 hours of time serving in this capacity.
Fixed Fee Fee
Engagement/ Administrative Setup
500
Contract, Insurance, etc.)
Professional Services ( Hourly)
2025
Rates( 1) c2
Principal 360
Director/ Senior Vice President 335
Vice President 310
Assist. Vice President/ Sr. Associate 285
Associate 260
Senior Analyst 230
Analyst 205
Administrative 130
1) Hourly rates will escalate by 3% annually each January 1st( rounded to the nearest five dollars based on the
prior year' s rounded amount).
2) Effective hourly rates shown in invoices may be reduced to incorporate non- billable time.
NHA I ADVISORS Page43
Financial& Policy Strategies. R A F T E L I S 1I W I LLDAN Delivered.
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1D6- 2ABE915A0C1C 0ci Los GATOS— PROPOSAL FOR STUDY 1( FISCAL CONDITION) AND STUDY 2( FISCAL IMPACT) Raftelis Proposed Fees for Study 1
A breakdown of costs for Study 1 by project activity is provided in the table below.
Activity Description
Consultant
Expenses Total Cost
Labor
1 Project Initiation 9, 100 1, 250 10, 350
2 Assess Financial Condition 24, 250 4, 900 29, 150
3 Develop Forecasting Model 39, 250 3, 200 42, 450
4 Final Reporting & Knowledge Transfer 20, 750 2, 800 23, 550 BASE SUBTOTAL $ 93, 350 12, 150 105, 500
5 OPTIONAL— Develop Gap Closure Strategies 26, 450 3, 600 29, 750 6 OPTIONAL— Decision- Support for Town Council 24, 750 5, 280 29, 750 TOTAL WITH BOTH OPTIONS $ 144, 550 21, 030 165, 000
NHA IADVISORS Page44
Financial& Policy Strategies, R A F T E L I S 'WWI LLDAN Delivered.
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Los GATOS— PROPOSAL FOR STUDY 1( FISCAL CONDITION) AND STUDY 2( FISCAL IMPACT) Willdan Proposed Fees for Study 2
Based on the Scope of Services presented herein, we propose a fixed fee of$ 18,000. This fee includes attendance at a total of two meetings with Town staff and/ or a Town Council meeting. Attendance at more than two meetings will require additional billing at the applicable hourly rate identified in the table below. Additionally, comprehensive written responses to resolve conflicts, and preparation of more than one set of major revisions to the report, will be classified as additional services, and may require additional billing at the stated hourly rates. These additional fees shall only take effect once the fixed fee stated above has been exceeded.
Town of Los Gatos
Fiscal Impact Analysis
EMr WFS Fee Proposal
J. Edison M. Medve J. Andrade
Principal-in- Project Lead
Charge Manager Analyst Total
310 $ 270 $ 120 Hours Cost
Scope of Services
Task 1: Data Collection and Review 4. 0 8. 0 12. 0 24. 0 $ 4, 840 Task 2: Develop Fiscal Revenue and Cost Inputs 2. 0 8. 0 14. 0 24.0 4,460 Task 3: Fiscal Modeling and 20-Year Impact Analysis 4. 0 10. 0 12. 0 26. 0 5, 380 Task 4: Report Preparation and Presentation 2. 0 6. 0 9. 0 17. 0 3, 320 Total— Fiscal Impact Analysis 12.0 32.0 47.0 91. 0 $ 18,000 Hourly Rates/ Additional Services
Willdan' s hourly rates are listed below.
Willdan Financial Services
Hourly Rate Schedule
Position r-- am Member Hourly Rate
Vice President/ Director 310
Managing Principal James Edison 300
Principal Consultant Mike Medve 270
Senior Project Manager 250
Project Manager 210
Senior Project Analyst 150
Senior Analyst 135
Analyst II Jasper Andrade 120
Analyst I 110
NHA IADVISORS Page45
Financial& Policy Strategies. R A F T E L I S 1IWI LLDAN Delivered.
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C At
i.k. ) c,( Los GATOS— PROPOSAL FOR STUDY 1( FISCAL CONDITION) AND STUDY 2( FISCAL IMPACT)
11. STATEMENT OF INSURANCE COVERAGE
The tables below summarize each member of our team' s insurance coverage compared to the Town' s Sample Consultant Services Agreement. Each team member will maintain the required coverage for the term of the contract if selected by the Town for this engagement.
NHA' s Insurance Coverage
Coverage Type
Town' s Requirements
NHA' s Coverage
in Sample CSA
Valley Forge Insurance Company
Carriers N/ A Hartford Casualty Insurance Company
Underwriters at Lloyd' s, London
General Liability
per occurrence)
2M 2M
General Liability
Not specified 4M
aggregate)
Auto Liability 1M ( per accident) 1M ( per accident)
Worker' s Comp( per
occurrence)
1M 1M
Professional Liability 1M per occurrence 1M per occurrence/$ 2M aggregate Raftelis' Insurance Coverage
Coverage Type
Town' s Requirements
Raftelis' Coverage
in Sample CSA
Federal Insurance Company
Chubb National Insurance Company
Carriers N/ A
ACE American Insurance Company
Hanover Insurance Company
General Liability
per occurrence)
2M 1M
General Liability
Not specified 2M
aggregate)
Auto Liability 1M ( per accident) 1M ( per accident)
Worker' s Comp (per
occurrence)
1M 1M
Professional Liability 1M per occurrence 5M
Additional Coverage 5M Excess Liability ( Umbrella Coverage) NHA IADVISORS Page46
Financial& Policy Strategies. R R A F T E L I S 'WWI LLDAN Delivered.
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C ct. Itici Los GATOS— PROPOSAL FOR STUDY 1( FISCAL CONDITION) AND STUDY 2( FISCAL IMPACT) Willdan' s Insurance Coverage
Town' s Requirements
Coverage Type Willdan' s Coverage
in Sample CSA
Travelers Property Casualty Company
of America
Carriers N/ A Allied World Surplus Lines Insurance
Company
General Liability
per occurrence)
2M 1M
General Liability
Not specified 2M
aggregate)
Auto Liability 1M ( per accident) 1M ( per accident)
Worker' s Comp( per
occurrence)
1M 1M
Professional Liability 1M per occurrence 1M per claim
12. TOOLS, DATA SOURCES, AND USE OF Al
Raftelis' Response for Study 1 ( Fiscal Condition Analysis) The fiscal condition assessment and financial projections will be developed using a flexible Excel- based model, which will be transmitted to the City. The model will be built on the City' s existing revenue and expenditure data, both current and historical. Artificial intelligence will not be used in the development of this model.
Willdan' s Response for Study 2 ( Fiscal Impact Analysis) The team members assembled for this engagement have extensive experience with financial modeling in Excel for a broad range of financial analyses. Stemming from the team' s experience managing longterm financial models of all types for cities, counties, school districts, toll road agencies, port authorities and other public entities, Willdan uses a modified version of the F1F9 financial modeling style to allow for the analysis of just about any type of cost or revenue, from the simplest to the most complex. Using the principles of structured design, transparency, robust annotation and adherence to sound financial modeling principles, our models are built to be flexible, auditable and easy to maintain and adjust to match the needs of the client.
Quality Control/ Quality Assurance( QA/ QC) is integrated into our team' s process. However, when dealing with large, complex financial models, the importance of adhering to time-tested financial modeling principles cannot be underestimated. This makes the initial modeling process less likely to result in errors and also makes errors easier to identify and fix during the QA/ QC process.
The core of the financial model is a " back-end" simply formatted horizontal cash flow worksheet that contains all necessary calculations, assumptions and formulas. The formula- based back-end model can be NHA IADVISORS Page47
Financial& Policy Strategies. R R A F T E L I S 'WWI LLDAN Delivered.
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C ct. Itia o) Los GATOS— PROPOSAL FOR STUDY 1( FISCAL CONDITION) AND STUDY 2( FISCAL IMPACT) easily audited and reviewed for assumptions and consistency. From there, we transpose the data into a more readable vertical format so that it can be presented in the report and/ or the presentation. These tables will be robustly annotated and formatted for visual appeal and readability.
The draft report will be provided to the City in MS Word format. For each round of comments/ edits, clean and redline versions will be distributed. When the report is finalized, a final Word file and PDF will be provided so that text and tables can be added to staff reports and/ or other City documents, as needed.
Willdan uses Enterprise Artificial Intelligence ( Al) occasionally and sparingly when developing work products. Examples may include the following:
To accelerate the process of finding a specific law or industry best practice.
To receive suggestions for word choice, formatting and/ or visual presentation of results.
Discovering lesser- used functions in Excel or save time developing regular expressions, conditional formatting formulas or similarly complex tasks.
Willdan does not use Al output directly in reports or use any suggestion provided by Al without first verifying, validating and/ or auditing the results. Furthermore, the Enterprise Al software that we use does not share, store, or train on our data, ensuring complete confidentiality and compliance with client privacy requirements.
The following is a list of resources commonly used in fiscal impact studies:
Microsoft Excel
County Auditor data related to ABS apportionment factors for each Tax Rate Area ParcelQuest for Assessed Values and other property information Bureau of Labor Statistics data related to the number of jobs within the City Census and/ or American Community Survey data
California Department of Finance population and persons per household data Other data points originating from government, NGO and qualified private sources as needed.
NHA IADVISORS Page4S
Financial& Policy Strategies. R R A F T E L I S 'WWI LLDAN Delivered.
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Los GATOS- PROPOSAL FOR STUDY 1( FISCAL CONDITION) AND STUDY 2( FISCAL IMPACT) APPENDIX A: NHA RESUMES
N HA I ADVISORS Financial& Policy Strategies.
Delivered.
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1D6- 2ABE915A0C1C Staff Resumes — NHA Advisors, LLC
Mark Northcross, Principal
During a California public finance career that spans back to 1981, Mark Northcross has structured debt for nearly every kind of issuer and nearly every kind of revenue source legally available in the State.
Mr. Northcross is a leader in statewide work on climate change adaptation.
He managed the delivery of a comprehensive funding guide for Resilience by Design, a Rockefeller Foundation funded program for the Bay Area. He works Public Finance
Professional Since: with the Bay Conservation and Development Commission, Bay Area Regional 1981
Collaborative, the Southern California Association of Governments and the Resources Legacy Fund on climate change adaptation issues. Mr. Northcross Expertise also serves on special climate change committees under the aegis of the City of Sacramento, the West County Wastewater District and the Coastal Public Policy Hazards Adaptation Resiliency Group. With expertise in wildfire risk Utility Financing mitigation and funding, Mr. Northcross was invited by the Federal Reserve Climate Change Bank of San Francisco to prepare an article on that subject for their Infrastructure
Community Development Innovation Review publication, which was Development/ Land—
published in October 2019. A link to that article is available here:
Secured Financing
https:// www. frbsf. org/ community- development/ publications/ community- development_ Economic investment- review/ 2019/ october/ rebuild-to-fail- or-rebuild- to-adapt- how-cra- lending- canDeve to pment guide- climate-change- disaster- response/ Developer
Mr. Northcross was an integral team member for the California Resilience Negotiations
Pension Financing
Challenge project in the Town of Paradise. That project was completed in April 2023 and featured groundbreaking work quantifying potential reductions in fire related losses and in insurance premiums in the wildlandEducation urban Interface through fire mitigation methods. More detail about that T T T project can be found here: httrs:// www. bavareacouncil. org/ press- releases/ new- studvUU1RVINE shows- haw- communities- in- the- wiIdland- urban- interface- can- drastically- reduce- fire- risk- andreduce- i nsura nce-° rem i ums/ B. A. Social Sciences Mr. Northcross is also leader in negotiating both public- private partnerships and the workout of defaulted debt. He has negotiated public- private Licenses & Registrations partnerships for the successful development of major mixed- use projects, including such diverse communities as Davis, Fort Ord Reuse Authority, Registered with the
Hemet, Mammoth Lakes, Palmdale, Rocklin, South Lake Tahoe, and West SEC and MSRB
Covina. He is also a leader in negotiating joint ventures between different Series 50 License public agencies — with notable success in putting together bond funded risk sharing programs for cities, counties, and school districts in California.
With a practice in water and sewer financing dating back to 1983, Mr.
Northcross is very active in water and sanitation policy issues in California.
He presently serves on the California Association of Sanitation Agencies SRF committee.
Mr. Northcross also has hands- on experience as a CFO, serving since 2001 as N H A I ADVISORS treasurer for the West Point Inn Association, which runs a 117- year- old hikeFinancial& Policy strategies. in hotel in the parklands of Marin County.
Delivered.
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Los GATOS- PROPOSAL FOR STUDY 1( FISCAL CONDITION) AND STUDY 2( FISCAL IMPACT) APPENDIX B: RAFTELIS RESUMES
N HA I ADVISORS Financial& Policy Strategies.
Delivered.
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Jonathan Ingram arT-444‘-
PROJECT MANAGER / PRINCIPAL IN CHARGE / LEAD
1 FACILITATOR
Vice President
Professional History
ROLE
Raftelis: Vice President
2024- present); Senior
Jonathan will manage the day-to- day aspects of the project ensuring it is Manager( 2021- 2023); within budget, on schedule, and effectively meets the City' s objectives. He Manager( 2020- 2021); will also lead the consulting staff in conducting analyses and preparing Senior Associate, The Novak
deliverables for the project. Jonathan will serve as the City' s main point of Consulting Group ( 2012- 2020)
contact for the project. City of Cincinnati, Ohio:
Budget Manager( 2010-
PROFILE 2012)
Jonathan has 20 years of experience in management consulting and local Management Partners:
Senior Management Advisor
government management, most recently as budget manager in the City of 2005- 2010) Cincinnati, Ohio, budget office. Before that, Jonathan served as a management consultant and worked in the city manager' s office for the City Education of Highland Park, Illinois. Master of Public
Administration - Northern
Illinois University ( 2005)
Jonathan is a skilled financial analyst in the areas of budget and revenue Bachelor of Arts in Political
analysis and has led our work with fiscally distressed communities, Science - Aurora University supporting their efforts to restore operational and financial sustainability. 2003) Additionally, he has extensive experience as a management and operations consultant to local governments in the United States and abroad. Professional Memberships International City/ County
As a consultant, Jonathan has completed operations reviews for over 200 Management Association
ICMA)
local governments and has helped to improve service delivery for a broad Ohio City/ County
range of departments— from police to public works. He has developed staffing Management Association and deployment plans for city operating departments, analyzed and facilitated OCMA) intergovernmental consolidations, helped local governments develop custom performance management systems, and facilitated the development oflong-term strategic plans and financial models.
Jonathan' s areas of expertise are in local government budgeting and finance, operations analysis, project management, public safety staffing analysis, process improvement, and performance measurement. He is adept at quickly assessing strengths and opportunities within a municipality, analyzing and developing actionable recommendations for improvement, and communicating findings and next steps to a wide variety of audiences, including staff, elected officials, and the public. During his tenure with the City of Cincinnati, Jonathan managed the development and administration of a$ 1 billion operating budget. He also conducted special analysis projects, served on the City's collective bargaining team, and co-managed the implementation of an enterprise budget system.
Jonathan earned a bachelor's degree in political science from Aurora University and a master's degree in public administration from Northern Illinois University. He is a member ofthe International City/ County Management Association and the Ohio City/ County Management Association.
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Nancy Hetrick f=`
FACILITATION SUPPORT
Vice President
ROLL Professional History
Raftelis: Vice President ( 2023-
Nancy will work at the direction of Jonathan in assisting with facilitation of present) meetings and workshops. Baker Tilly LLC: Managing
Director( through acquisition)
PROFILE
2022- 2023
Management Partners: Vice
Nancy has nearly 30 years of experience as a local government management President, Partner, Senior consultant and practitioner. Her lifelong commitment to the value and Manager, Senior Management importance of public service underscores her work with local government Advisor( 2006- 2022)
clients. She invests time to understand both the human dynamic and the County of San Mateo, County
Manager' s Office: Principal
systems and culture within an organization to ensure project outcomes that Management Analyst,
will best service the unique needs of the organization. Management Analyst III ( 2001- 2006)
Nancy has extensive experience as a facilitator and trainer. She has worked Management Partners:
with both elected and appointed officials from jurisdictions throughout the Management Advisor( 1996- western United States to conduct goal- setting, develop strategic plans, and 2001) prioritize service delivery. She has led engaging strategic planning processes Norman Roberts and
Associates ( Executive
that sharpen focus while strengthening teamwork. The strategic plans that are Recruiters): Research
developed offer a meaningful and implementable road map for the Associate ( 1995- 1996) organizations she serves. In addition, Nancy has worked with leadership teams in all local government service areas to improve team effectiveness. Education Coursework complete toward
In addition to her work in organizational development and strategic planning Master of Public Administration,
California State University, San
Nancy has led hundreds of local government consulting engagements Francisco ( 1996- 1997)
spanning all areas of general management consulting support, including Bachelor of Arts, Political executive recruitment, organization assessment, workforce and succession Science with concentration in planning, performance management system design, and financial Public Administration, California sustainability planning. State University, Chico ( 1994) Nancy is active in professional associations that support the advancement of Cer
Myers- Bonsriggs Type Indicator
local government professionals. She served as the President of the Municipal DiSC Management Association of Northern California( MMANC), founded the CPI 260 California Women' s Leadership Summit, and sits on the board of Cal-ICMA, where she Psychological Inventory chairs the Cal-ICMA Talent Initiative.
Professional Memberships
Nancy studied political science with a concentration in public administration ICMA
Cal- ICMA
as an undergraduate and continued her studies in a Master of Public Women Leading Government
Administration program. She has participated in an executive leadership Municipal Management program and received certifications in leadership and style assessment tools Association of Northern such as the Myers- Briggs Type Indicator( MBTI), DiSC, and the CPI 260 California, Past President, Psychological Inventory. founder, Women' s Leadership
Summit
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Emily Uselton
FINANCIAL MODEL DEVELOPMENT
Senior Manager if". it
ROLE Professional History
Raftelis: Senior Manager
Emily will work at the direction of Jonathan in developing the financial 2025- present); Manager
model for the City. 2023- 2024)
City of Norfolk, Virginia; Interim
PROFILE Budget Director( 2022);
Assistant Budget Director
Emily joined Raftelis in 2023 after more than seven years of direct service to 2021- 2022); Budget and the City of Norfolk, Virginia. Emily has over 15 years of finance experience Policy Manager( 2019- 2021); in both the private and public sectors. As Norfolk' s Budget Director and Budget Analyst/ Senior Analyst Assistant Director, Emily was responsible for overseeing the City' s strategic 2015- 2019) financial and policy planning, including managing the development and Welltower( formerly Healthcare administration of a$ 1 billion operating budget. Her leadership helped REIT): Director Relationship provide effective resource recommendations, leading to better performance Accounting ( 2010- 2013)
Crowe Horwath LLP: External
outcomes and the ability to solve challenging policy issues. Emily led several Auditor, Financial Institutions
citywide initiatives, including public workforce recruiting and retention Group ( 2008- 2010) strategies, the development of a program budget, as well as budget development public engagement efforts. Emily' s direct service experience and Education breadth of exposure to relevant local government and utility policy issues Master of Public Policy— make her skillful at asking thought- provoking questions, inspiring innovation College of William and Mary 2015)
and creativity in the problem- solving process, and yielding results that are as Bachelor of Science in
pragmatic as they are valuable. During her time in local government, she Accounting and Finance— presented to avariety of stakeholders, including the City Council, executive Xavier University leadership teams, community groups, and a cross- section of department- level 2008) staff.
Certifications
Certified Public Accountant,
Since joining Raftelis, Emily has continued to assist utility and local CPA ( inactive— 2009)
government clients across an array offocus areas, encompassing strategic planning, facilitation, and organizational assessments. Emily' s areas of Professional Memberships expertise are in budgeting and finance, workforce planning, operations Government Finance Officers analysis, internal service functions, project management, and performance Association ( GFOA)
measurement. She is a quick study of organizational context, providing International City/ County
relevant and achievable recommendations that appreciate the unique Management Association
ICMA)
considerations of each organization. Engaging Local Government Leaders ( ELGL)
Previously, Emily worked in private- sector finance and accounting. She began her career as an auditor for mid-size financial institutions before transitioning to a commercial healthcare real estate company, where she built a team of accountants responsible for overseeing multiple mergers and acquisitions between the company and seniors housing operators across the U.S. and abroad.
Emily earned a master' s degree in Public Policy from the College of William and Mary, and a Bachelor of Science with concentrations in Accounting and Finance from Xavier University—Cincinnati. Since 2009, she has held a certified public accountant, CPA certification ( inactive).
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Chad Cowan
FINANCIAL MODEL DEVELOPMENT
Senior Manager
ROLE Professional History
Raftelis: Senior Manager
Chad will work at the direction of Jonathan in developing the financial 2023- Present) model for the City. DebtBook: Director( 2022-
2023)
PROFILE HilltopSecurities, Inc.:
Managing Director( 2022-
Chad joined Raftelis in August of 2023. Chad has over 24 years of experience 2023); Director 2016- 2022 working with local governments, utilities, non-profits and Higher Education City of Durham, NC:
clients. He spent the majority of his career working as a municipal advisor, Treasurer( 2013- 2016); investment banker and local government official and has executed over$ 5 Treasury Manager( 2011- billion in financing. During this time, he has assisted clients in evaluating 2013)
their long-term financial needs and the impact that current decisions have on D. A. Davidson: Vice
President ( 2008- 2011)
their long-term financial health.
Education
Through his work and education, Chad has developed a broad knowledge of Master of Public long-term financial planning for his clients, including building unique models Administration - University of for his clients to help facilitate the decision- making process. As a Consultant Southern California ( 1999) with Raftelis, Chad is responsible for delivering client services across a range Bachelor of Science in
Planning, Public Policy &
of activities, including long-term financial planning, feasibility studies, and Management- University of
other studies. Oregon ( 1996)
Chad earned a Master of Public Administration from the University of Certifications Southern California. He also earned a Bachelor of Science in Planning Series 50 Municipal Advisor Public Policy and Management.
Representative
KEY PROJECT EXPERIENC
North Carolina DEQ ( NC): Regional Water and Wastewater Infrastructure Concept Plan Chad served on the team that developed a methodology to evaluate the overall financial strength ofthe entities identified for approximately 40 individual utilities within the Study Area. The team developed a Utility Health Scorecard which provides a high-level overview ofthe health of each entity, considering various system characteristics and both financial and affordability metrics. Specifically, the Scorecard developed for this study leveraged the Environmental Protection Agency' s ( EPA) Financial Capability Assessment( FCA) Guidance as well as commonly used financial metrics and metrics related to the overall strength ofthe subject utilities.
Piedmont Triad Regional Water Authority ( NC): Long- term Financial Planning Model Chad served as the project manager for the development of a new long-term financial planning model for PTRWA in 2023 and 2024 to assist in the evaluation of significant expansion ofthe water treatment plant and implementation of new capital projects to deal with the treatment PFAs. Through the evaluation ofthe model in 2023 and 2023, the Authority worked with partners to evaluate the issuance of a significant increase in the Authority' s debt and adjustments to rates that support the Authority.
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1D6- 2ABE915A0C1C City of Bartow( FL): General Fund Development Study
Chad served as the project manager for the development ofthe General Fund Sustainability model for the City of Bartow in 2023 and 2024. The long-term financial plan leveraged Raftelis' Decision Panel Model, which allowed the City to evaluate multiple millage rates, capital funding plans, and staffing options. Through the evaluation ofthe model in 2023, the City Council voted to increase its millage rate to fund long-overdue capital projects throughout the City. In 2024, the City hired Raftelis to update the analysis. The update confirmed the course set forth in the prior year' s review and allowed the City to move forward with the implementation of its plan.
Village of Palm Springs ( FL): Utility Rate Studies, General Fund Sustainability Model, CRA Sustainability Model
Chad served on the team that developed multiple models for the Village ofPalm Springs. Throughout the summer and fall of 2024, Raftelis partnered with the Village to complete four separate long-term models, including General Fund Sustainability, a CRA Fund Sustainability Model, a Stormwater Rate Study, and a Water and Sewer Rate Study. The team leveraged Raftelis' Decision Panel Model for each of the models, which allowed the Village to evaluate multiple solutions for each fund. The project is ongoing and expected to be completed in the next several weeks.
City of Valdosta (GA): Water and Sewer Rate Studies
Chad led the Raftelis effort on the creation of a new Water and Sewer Rate Study and Bond Feasibility analysis for the City of Valdosta( City) in 2023 and 2024. He conducted a 10- year revenue sufficiency analysis update for the water and sewer system including evaluating the City' s upcoming capital plans and drafted the bond feasibility report related to the City' s 2024 Bond issuance.
Mecklenburg County ( NC): Development of Long- term Financial Models for Solid Waste and Storm Water Departments
In a prior position, Chad served as the municipal advisor for the County and was tasked with developing long-term financial plans for the County' s Department of Solid Waste& Recycling and the Department ofStormwater Services. Each department had historically funded its capital plans with a Pay-Go model. With significant capital plans for each department, the proposed rate increases for each department were unacceptable to senior management. In conjunction with the finance team, Chad developed a long-term financial model for each department. The models provided the ability for each department to quickly adjust projected capital projects, fees and financing options. The models provided the ability for each department to partner with finance to develop proposed fee structures acceptable to senior management and adopted by the Board of County Commissioners.
City of Durham ( NC): Served as City Treasurer— Responsibilities including Debt Structuring and Analysis, Management of the City' s Investment Portfolio, Traditional Banking Relationships, and Management of the Risk Management Team
Chad served as the Treasurer for the City of Durham, NC, from 2011 through 2016. During his tenure, he managed the issuance of over$ 400 million in debt, including general obligation bonds, limited obligation bonds, water revenue bonds( including interim financing solutions), and finalizing a Section 109 HUD Loan. During this time, he also managed the City' s investment portfolio and banking relationships— including the roll-out of a new online payment platform. Over the last two years of his tenure, he led the restructuring ofthe City' s Risk Management Team, including the implementation of a new Risk Management Information System, replacing the City' s ThirdParty Administrators for workers' compensation and general liability and making significant improvements to the Department' s internal reporting process. Additionally, he assisted in the development of a long-term financial model for the City' s general fund and the evaluation of economic development proposals.
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Claire 'ritchard
STAFF CONSULTANT
SeniorConsultantAL'
4't
4OLE Professional History
Raftelis: Senior Consultant
Claire will work at the direction of Jonathan in conducting interviews, 2023- present); Consultant directing research and analysis, preparing recommendations, and drafting 2021- 2022); Associate deliverables. Consultant ( 2020- 2021);
Associate Consultant, The
PROFILE Novak Consulting Group
2018- 2020)
Claire has more than 10 years of experience in management consulting and Dakota County, Minnesota:
local government management. She began her consulting career following Assistant to the County five years of service with Dakota County, Minnesota, where, most recently, Manager( 2013- 2017)
she held the position of assistant to the county manager. While with Dakota National Association of
County, Claire coordinated the County' s legislative agenda, assisted in the Regional Councils: Policy
Intern ( 2012)
development of the annual budget, and conducted financial impact analyses Congressional Research and process improvement efforts for a
variety of County functions. Claire also Service ( 2010- 2011) coordinated the County' s transition to a new form of government in 2013.
Education
As a consultant, Claire has worked on organizational and staffing analyses for Master of Public Policycommunities around the country, such as the Town of Nantucket, University of Chicago ( 2013) Bachelor of Arts in Political
Massachusetts, the City of Allentown, Pennsylvania, and the City of Science - University of
Bloomington, Indiana, as well as several utilities, including Fairfax Water, Chicago ( 2009) Virginia, Pinellas County Utilities, Florida, the San Diego Public Utilities Department, California, and Tampa Bay Water, Florida. Professional Memberships International City/ County
Claire has assisted in developing financial models to analyze revenue and Management Association
ICMA)
expenditure trends, as well as conducting detailed staffing and workload Engaging Local Government
analyses to determine optimal organizational structures. She has developed Leaders ( ELGL) and analyzed an array of employee and community- based surveys. Claire has International Facility conducted several of the best practice and benchmarking research projects and Management Association has assisted in creating strategic planning and implementation deliverables. IMFA) As a student at the University of Chicago, Claire served as a policy intern with the National Association of Regional Councils, where she developed an educational program on the work of regional councils. She was also the associate editor for international development for the Chicago Policy Review.
Claire earned a bachelor' s degree in political science from the University of Chicago and a master' s in public policy from the University of Chicago Harris School of Public Policy. She is a member ofthe International City/ County Management Association and is a former ICMA Local Government Management Fellow.
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Polly Englot
STAFF CONSULTANT
Associate Consultant
ROLE Professional History
Raftelis: Associate
Polly will work at the direction of Jonathan in conducting interviews, Consultant ( 2024- present) directing research and analysis, preparing recommendations, and drafting Broward County: Budget and deliverables. Management Analyst ( 2022-
2023)
PROFILE
Food Bank for New York
City: Marketing and Events
Polly has robust analytical experience throughout the public sector, having Coordinator( 2018- 2020) worked in local government, nonprofit, and international development Population Services settings. She is proficient in the areas of budget planning and analysis, process International: Program
improvement, and project management. Polly is a detail-oriented problem Coordinator( 2016- 2018)
solver who leverages data and organizational analysis to identify trends and Education actionable solutions. Master of Public PolicyDuke University, Sanford Prior to joining Raftelis, Polly worked in Broward County' s Office of School of Public Policy Management and Budget in southern Florida. She supported the monitoring 2022)
and development of over 100- million- dollar annual operating budgets for Bachelor of Arts in
Geography, minors in Arabic
judicial offices and the county' s extensive environmental agency. This work and French - Bucknell
included forecasting for a dozen special revenue funds, monitoring state and University ( 2016) federal grants, assessing payroll and benefit costs for over 500 employees, and evaluating new staffing and capital project requests.
Throughout her academic studies, Polly developed highly functional skills in GIS analysis, data visualization and communication, evaluation design, and public budgeting. She strengthened these skills in the classroom by learning from her prior tenure at Food Bank for New York City, where she supported planning and content development for over 90 marketing campaigns and events annually. In addition, she collaborated with stakeholders and donors at all levels to raise awareness, fundraise, and support the Food Bank' s clients.
Polly began her career in program operations supporting international public health programs based in West Africa, funded by major public and private grantors. Programs ranged from women' s health information campaigns to sanitation service delivery research, and she completed technical assistance trips to Ghana and Liberia.
Polly earned a master' s degree in public policy from Duke University' s Sanford School of Public Policy and a bachelor' s degree in geography, with minors in Arabic and French, from Bucknell University in Pennsylvania.
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Los GATOS- PROPOSAL FOR STUDY 1( FISCAL CONDITION) AND STUDY 2( FISCAL IMPACT) APPENDIX C: WILLDAN RESUMES
N HA I ADVISORS Financial& Policy Strategies.
Delivered.
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1D6- 2ABE915A0C1C Town of Los Gatos, CA
James Edison
Managing Principal
Education
Mr. James Edison specializes in the nexus between public and private, with expertise in publicJuris Doctorate, University private partnerships, and the benefits of economic development to municipalities and state, of California, Berkeley, provincial, regional and national governments. He possesses deep expertise in land use School of Law
economics, with a specialty in finance and implementation, including fiscal impact and the Master of Public Policy, public and private financing of infrastructure and development projects, both in the U. S. and Goldman School of Public internationally. Mr. Edison' s public-sector experience includes local and regional economic Policy, University of impact studies; fiscal impact evaluations; new government formation strategies; and the California, Berkeley creation of impact fees, assessments, and special taxes to fund infrastructure and public facilities. He has conducted numerous evaluations of the economic and fiscal impact of specific Bachelor of Arts, plans and consulted on a wide variety of land use planning topics related to community magna cum laude, Harvard revitalization and the economic and fiscal impacts of development.
University
As a former bond attorney, Mr. Edison understands the legal underpinnings and technical Professional Registrations requirements of public financing instruments and has advised both public and private clients on Member of California the use of individual instruments, and the interaction between those instruments and the needs State Bar( inactive) of developers and project finance.
Affiliations Relevant Project Experience
Council of Development
Finance Agencies City of Foster City, CA — Gilead, Chess- Hatch, Mirabella and Pilgrim- Triton Fiscal Impact Studies: The City of Foster City hired Mr. Edison, while at Economics Research Associates CFA Society of (" ERA"), to provide an evaluation of the fiscal impact of three specific plans. He evaluated the San Francisco impact on services of each plan, the anticipated new revenues and expenditures, and the necessity for new public facilities to serve the projects.
Congress for the
New Urbanism Alameda Point Development Corporation, CA— Alameda Point Conceptual Financing Plan: Mr.
Edison is assisted the Alameda Point Development Corporation on a number of assignments Urban Land Institute related to the financing of infrastructure at Alameda Point, the feasibility of development, the financing of services, fiscal impacts and mitigation, and selection of developers. Alameda Point Seaside Institute is a former naval air station that was closed in 1997 and the City took title to the land on June 4, 2013.
International Economic
Development Council County of Monterey, CA — East Garrison Specific Plan Financing and Implementation: East Garrison, located on the easternmost portion of the former Fort Ord in Monterey County, 25 Years' Experience consisted of approximately 1, 400 residential units, including single- family detached, town homes, apartments, and affordable housing, a town commercial center, and arts facilities. Mr.
Edison assisted the developer and the County with a wide range of financing issues, including the availability and structuring of public finance, fiscal mitigation measures, economic impacts, the implementation of affordable housing, and the negotiation of business terms between the developer and the County. He also assisted the developer in negotiations with the Fort Ord Reuse Authority regarding the base wide capital improvement program and the structuring of the payment of impact fees generated by the development.
County of Napa, CA — Napa Pipe Specific Plan Analysis: Mr. Edison evaluated infrastructure finance requirements for the Napa Pipe project in southern Napa County, consisting of approximately 500,000 square feet of commercial development, 3, 000 residential units, and a hotel. An infrastructure financing strategy was provided that drew upon the resources of the project itself and other financing mechanisms such as special assessments.
W'WILLDAN Fiscal Impact Analysis for Proposed and Planned Growth 6
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Town of Los Gatos, CA
The fiscal and economic impact of the project on the County was analyzed, also prepared an J. Edison urban decay analysis evaluating the impact on retail businesses in the City of Napa. Mr. Edison Resume Continued presented the findings to the County Board of Supervisors and Napa' s City Council.
County of Imperial, CA— Solar Farm Fiscal and Economic Analysis: Mr. Edison was engaged by the County of Imperial to evaluate the fiscal and economic impacts of a series of proposed solarvoltaic facilities ( or" solar farms") on land near the Town of Calipatria in Imperial County.
For each, Mr. Edison calculated the tax revenues and service expenditures accruing to the County from development of the project, and also estimated the economic impacts of the project using IMPLAN, including the impact of the construction and ongoing operation of the solar farm, along with the negative impact of the removal of the project site from agricultural production.
City of Redding, CA— Oasis Towne Center Financing and Fiscal Analysis: Hired by the Levenson Development Company ( LDC) to assist with an economic/ fiscal impact study and a financing plan for the Oasis Towne Center, a retail development of approximately one million square feet in Redding, California. Mr. Edison advised LDC on how to structure the financing of the development in order to provide public benefits from the project and minimize the need for public resources. He prepared an economic and fiscal analysis and negotiated a series of service plans and fiscal mitigation measures with the City of Redding. Mr. Edison also prepared a financing plan for infrastructure needed not only for the immediate project but also for development within the entire Oasis Road Specific Plan area.
City of Fort Lauderdale, FL — Citywide Economic Development Strategic Plan: Mr. Edison served in the role of Senior Public Incentives Advisor for the City' s economic development strategic plan. This citywide Economic Development Strategic Action Plan includes an Economic Development Profile Report; as well as identification and recommendation of potential citywide economic development incentive programs for business retention and recruitment that are applicable to six geographic sub- areas and citywide; an entrepreneurial development and empowerment strategy, a targeted industry growth strategy, and a retail recruitment strategy; an implementation program and " economic dashboard" benchmarking metrics to measure the success of strategies and initiatives; and sources and uses of funding to support plan implementation ( grants and other alternative funding opportunities allocated to each of the plan' s five- year implementation horizon).
City of Vallejo, CA— Costco Expansion Urban Decay, Economic and Fiscal Impact Analysis: In response to the City' s request, Mr. Edison examined the economic impact of a proposed expansion of an existing Costco. The analysis included projections of the impact on sales tax, employment, property tax and the net impact to the City' s budget. Based on the analysis, the City Planning Commission approved the Costco expansion.
County of Placer, CA — Bohemia Lumber Site, Fiscal Impact and Urban Decay Analysis: The County of Placer engaged Mr. Edison to examine the fiscal impact and potential urban decay effects from the development of the former Bohemia Lumber site into a retail center. He prepared the analysis and presented the results to the County Board of Supervisors.
City of Salinas, CA— Salinas Downtown Revitalization Plan: Prepared a market study for the downtown area to identify opportunities for development. Advised the City of Salinas on fiscal impact issues and financing tools available to assist with construction and rehabilitation of infrastructure in the downtown
WWI LLDAN Fiscal Impact Analysis for Proposed and Planned Growth 7
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1D6- 2ABE915A0C1C Town of Los Gatos, CA
Mike Medve
Principal Consultant
Education Mr. Mike Medve is a principal consultant, with 18 years of experience, in the Financial Bachelor of Science Consulting Services group, with expertise in public finance, including special district formation information and and administration, fiscal impact analysis, public facilities financing plans, integrated financing Computer Science, districts, Proposition 218, tax credit financing, state and federal grant and loan programs, sales tax revenue bonds, and infrastructure financing districts. He has developed financial pro Management and formas and cash flow analyses for numerous types of public and private project financing Mathematics Minors, programs. Prior to joining Willdan, Mr. Medve was a consultant in the field of public finance for Parsons Brinckerhoff and David Taussig & Associates. Over the years, he has been a Cum Laude financing team member for over$ 150 million in limited obligation bonds and over$ 50 million in grant funds. He has served as the lead consultant for over two dozen clients, both public University of and private, throughout the country.
California Irvine Relevant Project Experience
Areas of Expertise City of Oceanside, CA — Tax Increment/ Special Tax Consulting: Mr. Medve provided Public Finance consulting services related to the formation of one of the State' s first Enhanced Infrastructure Financing Districts ( EIFD). The ElFD' s tax- sharing plan has been approved by both the City of Public Facility Financing Oceanside and the County of Monterey, bringing millions in funding to an area that will be annexed to the City and developed into a high-tech office park and research center. He also Special District Formation assisted the City with its Cost Allocation Plan and Comprehensive User Fee update. and Administration
City of Rancho Mirage, CA— Special Tax Consulting: In 2018 and 2019 Mr. Medve assisted Proposition 218 the City with the formation of CFD 4A and CFD 4B, both of which were formed in association with the development of a Del Webb residential project in the City. He is also working on the New Markets Tax Credits current formation of CFD 4C. The CFDs were formed to provide for funding of backbone infrastructure required for the development, and for payment of certain development fees Grant Writing required by the City. Willdan' s work included preparation of the special tax and pro forma analyses, development of the tax methodology and preparation of the Rate and Method of 20 Years' Experience Apportionment of Special Tax document, preparation of the CFD Report and other associated documents, and coordination of the formation process.
City of Upland, CA— Special Tax Consulting: In 2015 through 2019 Mr. Medve assisted the City of Upland with the initial formation of a CFD, the change proceedings that were subsequently conducted to amend the CFD to accommodate a change in the plan of development, and finally with the issuance of bonds associated with the CFD. He worked closely with the City and its financial advisor to ensure the CFD was formed in a manner that met the City' s requirements and financing objectives. The CFD was created to equitably spread the cost of the infrastructure being financed through a methodology that was equitably applied to various types of residential development in the project.
County of San Diego, CA— Special Tax Consulting: Mr. Medve is currently assisting the County with special tax consulting projects, specifically CFDs in unincorporated areas. He helped form the Horse Creek Ridge and Hillside Meadows CFDs and is now involved with the review and early steps of forming three additional CFDs to fund flood control, fire protection, and capital improvements. He is also assisting with replacing an existing Permanent Road Division special assessment with a special tax to fund street rehabilitation and maintenance. 1i( WILLDAN Fiscal I m pact Analysis for Proposed and Planned Growth 8
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1D6- 2ABE915A0C1C Town of Los Gatos, CA
Jasper Andrade
Lead Analyst
Education
Mr. Jasper Andrade is an Analyst II and will serve as the lead analyst for this fiscal analysis Accounting,
Mt. San Jacinto p ro ect. His role includes data gatheringand research, report preparation, p peer reviews, and College fiscal analysis to support the evaluation of revenues, expenditures, and long-term funding strategies.
Areas of Expertise
Community Facilities Mr. Andrade possesses experience with various special tax financing mechanisms, including Districts Community Facilities Districts ( CFDs), fire taxes, parcel taxes, landscape and lighting districts, and standby charges. His responsibilities have included updating Engineer' s Reports, preparing Landscaping and resolutions for hearings, maintaining and analyzing parcel data, researching parcel changes, Lighting Districts
reviewing exemptions, and developing applied reports. These assignments have provided him Standby Charges with direct experience evaluating fiscal conditions, modeling tax and assessment impacts, and supporting decision- making through accurate financial reporting.
Assessment
Mr. Andrade regularly coordinates with title companies, real estate agencies, appraisal firms, Districts
and public agencies. Leveraging Willdan' s proprietary MuniMagic+ system, he efficiently Geographic
accesses ownership records, assessed values, and parcel tax data, which enhances his ability to perform accurate fiscal analysis and deliver timely project support.
Information
System Relevant Project Experience
6 Years' Experience Mr. Andrade currently works with the following agencies encompassing various annual administration services including 1972 Act Districts, Community Facilities Districts, Assessment Districts and Standby Charges.
City of Coachella, CA
Desert Recreation District, CA ( Indio, CA)
Valley Sanitary District, CA ( Indio, CA)
City of Arcadia, CA
City of Artesia, CA
City of Brea, CA
City of California City, CA
City of Indian Wells, CA
City of Irwindale, CA
City of La Puente, CA
City of Lafayette, CA
City of Lancaster, CA
City of McFarland, CA
City of Reed ley, CA
City of Rialto, CA
City of San Fernando, CA
City of Santa Fe Springs, CA
West Contra Costa Healthcare District, CA
WWI LLDAN Fiscal Impact Analysis for Proposed and Planned Growth 9
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Los GATOS- PROPOSAL FOR STUDY 1( FISCAL CONDITION) AND STUDY 2( FISCAL IMPACT) APPENDIX D: WAUKESHA COUNTY WI BUDGET TASK FORCE REPORT N HA I ADVISORS Financial& Policy Strategies.
Delivered.
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C 1 C Waukesha
County ,
Budget Task Force Analysis and Facilitation
Report / August 2024
R RAFTELIS
ITEM NO. 11.
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WAUKESHA COUNTY, WI BUDGET TASK FORCE ANALYSIS AND FACILITATION Page 407 ITEM NO. 11.
Docusign Envelope ID: 8463 BA3 F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C
RAFTELIS
August 27, 2024
Paul Farrow
Waukesha County Executive
Waukesha County Administrative Center
515 W. Moreland Blvd.
Room 320
Waukesha, WI 53188
Subject: 2024 County Budget Task Force
Dear Paul Farrow:
We are pleased to present this final report summarizing the County fiscal health assessment results and the 2024 Budget Task Force. This report includes a detailed review of the County' s current financial condition and financial management practices, future financial projections for the County' s operating budget, and a summary of the key themes and topics discussed during the Task Force facilitation sessions.
The fiscal health assessment included in this report provides both historical and future financial trend analysis designed to provide an objective review and context for the work of the Task Force. The assessment included development of an independent financial model projecting anticipated budget needs and gap closure scenarios for the County to consider. Applicable industry standards and best practices were used with input and information provided by County staff to inform the financial trend analysis. Key themes from the four Task Force sessions, including values and policy priorities, are also provided to help guide and inform the County Executive and the Board of Supervisors in future policy decisions.
We are confident that this report can serve as a framework for informing policy recommendations to you and the County Board. The Task Force provided invaluable insight regarding community priorities and strategies for the County to consider when making future budgetary decisions.
Thank you for the opportunity to work with Waukesha County. We enjoyed engaging with County staff and Task Force members throughout this project.
Sincerely,
4-4Nrir
Jonathan Ingram
Vice President- Organizational Assessment
19 Garfield Place, Suite 500 Cincinnati, OH 45202
www. raftelis. com
ITEM NO. 11.
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WAUKESHA COUNTY, WI BUDGET TASK FORCE ANALYSIS AND FACILITATION Page 409 ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Table of Contents
EXECUTIVE SUMMARY 1
INTRODUCTION 3
BACKGROUND AND METHODOLOGY 3
ABOUT WAUKESHA COUNTY, WI 3
Structure 4
Budget 5
Core Services Matrix 8
Staffing 10
FISCAL HEALTH ASSESSMENT 11
FINANCIAL CONDITION ASSESSMENT 11
General Fund Historical Overview 15
Peer Benchmarking 16
FINANCIAL TREND ANALYSIS 19
Key Assumptions 19
Future Projections 20
GAP CLOSURE SCENARIOS 22
Expenditure Reductions 22
Revenue Enhancements 24
BUDGET TASK FORCE 31
Composition 31
Session 1: Setting the Stage — Developing Values and Service Priorities 32 Session 2: Service Level Reductions 35
Session 3: Revenue Generating Options 39
Session 4: Guidance for County Executive and Board of Supervisors 42 CONCLUSION 47
WAUKESHA COUNTY, WI BUDGET TASK FORCE ANALYSIS AND FACILITATION Page 410 ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C List of Tables
Table 1: Waukesha County Demographic Characteristics, 2022 3 Table 2: Budgeted Expenditures by Functional Area, All Funds, FY2020 - FY2024 7 Table 3: ARPA Allocation by Functional Area 7
Table 4: County Core Services 9
Table 5: Authorized Staffing Level by Functional Area, FY2010 and FY2024 10 Table 6: County Operating Revenues by Category, FY2019 - FY2023 12 Table 7: County Expenditures by Category FY2019 - FY2023 15 Table 8: General Fund Budget to Actual Expenditures, FY2019 - FY2023 16 Table 9: Peer Counties Demographic Comparison 17
Table 10: Peer Counties Spending Per Capita 17
Table 11: Base Annual Change Assumptions for Operating Expenditures by Category 19 Table 12: Base Annual Change Assumptions for Non- Tax Operating Revenues by Category 20
Table 13: Projected Operating Expenditures by Category, FY2024 - FY2030 ($ M) 21 Table 14: Projected Operating Revenues by Category, FY2024 - FY2030 ($ M) 21 Table 15: Results of Levy Increase Referendums in 2024 24 Table 16: County Wheel Tax Rates in 2024 26
Table 17: Sales Tax Revenue in Benchmark Counties 28
Table 18: Average Taxable Expenditures by Category per Midwest Household, 2022 29 Table 19: County Budget Task Force Members 32
Table 20: Task Force Service Priority Voting Results 35 Table 21: Value- added Service Level Reductions 37
Table 22: Advantages and Disadvantages of New Tax Revenue Options 40 Table 23: Summary of Sales Tax Structure Considerations 42 List of Figures
Figure 1: Waukesha County, WI 2024 Budget Task Force Timeline 2 Figure 2: Waukesha County, WI Organizational Chart, FY2024 5 Figure 3: 2023 Property Tax Rates by County 6
Figure 4: Waukesha County Property Tax Rates and Property Value, 2015- 2024 13 Figure 5: 2024 Tax Levy Allocation by Function, as $ 1 13 Figure 6: 2024 Revenue Sources for Counties That Budget with Comparable Categories18 Figure 7: Projected Operating Expenditures and Revenues Under Base Scenario, FY2024 FY2030 22
Figure 8: Scope of Expenditure Reductions 23
Figure 9: Scope of Expenditure Reductions by Functional Area 24 Figure 10: Estimated Levy Increase Revenue, FY2025 - FY2030 25 Figure 11: Estimated Wheel Tax Revenue, FY2025 - FY2030 27 Figure 12: Task Force Value Voting Results 34
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Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Figure 13: Service Level Adjustment Pyramid 36
Figure 14: Task Force Service Prioritization and County Tax Levy Spending 38 Figure 15: Sales and Wheel Tax Timeline — Adoption by Year 41 Figure 16: Average Task Force Agreement Rating by Strategy to Address Budget Gap 43 Figure 17: Average Task Force Agreement Rating by Revenue Option 44 Figure 18: Average Task Force Agreement Rating by Revenue Option 45 Figure 19: Task Force Agreement Rating on New Revenue 50 Figure 20: Task Force Agreement Rating on Service Reductions 50 Figure 21: Task Force Agreement Rating on New Revenue and Service Reductions 51 Figure 22: Task Force Agreement Rating on the Current Budget 51 Figure 23: Task Force Agreement Rating on a 9- 1- 1 Fee 52 Figure 24: Task Force Agreement Rating on a Levy Increase Referendum 52 Figure 25: Task Force Agreement Rating on a Wheel Tax 53 Figure 26: Task Force Agreement Rating on a Sales Tax that Funds Property Tax Relief 53 Figure 27: Task Force Agreement Rating on a Sales Tax of Less Than 0. 5% 54 Figure 28: Task Force Agreement Rating on a Sales Tax that Funds Property Tax Relief and General Municipal Aid 54
Figure 29: Task Force Agreement Rating on a Sales Tax that Funds Property Tax Relief and Municipal Aid for Infrastructure 55
Figure 30: Task Force Agreement Rating on a Sales Tax that Funds Property Tax Relief and Municipal Aid for Public Safety 55
Figure 31: Task Force Agreement Rating on a Sales Tax that Funds Property Tax Relief and Municipal Aid for Economic Development 56
Figure 32: Task Force Agreement Rating on a Sales Tax that Funds Property Tax Relief and Economic Development 56
Figure 33: Task Force Agreement Rating on the Effectiveness of the Task Force Process 57 List ofAppendices
APPENDIX A: 49
APPENDIX B: 59
WAUKESHA COUNTY, WI BUDGET TASK FORCE ANALYSIS AND FACILITATION Page 412 ITEM NO. 11.
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Docusign Envelope ID 8463 BA3 F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Executive Summary
Property tax levy is the largest local revenue source to fund services provided by Waukesha County. Like other counties in the state of Wisconsin, the annual growth for this revenue is capped based on the growth in net new construction. Over the past several years, net new construction has grown at a rate of less than 2% each year.
Meanwhile, and especially after the Global Pandemic, the cost to continue providing services to County residents has increased, on average, between 3- 4%. In order to meet balanced budget requirements, the County has had to identify efficiency gains, maximize other revenue sources where possible, and trim staffing levels. Recent economic trends, including above-average inflation, rising wages, and supply chain disruptions, have placed significant financial constraints on County operations.
The County engaged Raftelis to provide an independent fiscal health assessment and facilitate multiple sessions for a Budget Task Force comprised of community leaders. The Task Force was asked to advise the County Executive and County Board of Supervisors on policy actions in the near term that will help shape the County' s financial future by ensuring resources are allocated in a manner that best serves the community.
The fiscal health assessment included a financial condition assessment comprised of a historical review of past revenue and expenditure trends, interviews with County staff across each major department to understand core service functions and budgetary challenges, as well as peer benchmarking analysis for similar demographic counties in the state to assess revenue sources and budgetary practices. The financial condition assessment provided relevant context to inform the financial trend analysis. This analysis included developing a six- year financial forecast for the County' s operating budget that reflected an annual gap ( e. g., budget gap) between projected revenues and estimated expenditures required to maintain services provided today. The forecast model relied upon key assumptions for revenue growth and cost of service inputs. Raftelis' financial model yielded similar results to the County' s long-term forecast disclosed in the annual budget document. This financial backdrop was then used to develop and understand potential solutions to address future budget gaps, considering both service level reductions and revenue- generating options.
Raftelis facilitated four in-person Budget Task Force sessions from May to July 2024. The County' s Budget Task Force comprised of more than 30 community leaders charged with quickly understanding the County' s fiscal health and engaging in discussions and exercises that aimed to provide direction and guidance to the County Executive and County Board of Supervisors regarding the County' s financial future. A summary ofthe Task Force timeline and session topics is provided below.
BUDGET TASK FORCE ANALYSIS AND FACILITATION 1
ITEM NO. 11.
Docusign Envelope ID 8463 BA3 F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C 0-0- 0-
O O O I
0- 00-
7/*/*
0-a
N
SERVICE LEVEL REVENUE
DEVELOP VALUES REDUCTION GENERATING TASK FORCE
AND PRIORITIES SCENARIOS SCENARIOS GUIDANCE
Major Activities Major Activities Major Activities Major Activities Share fiscal context Connect values and Recap service level Recap themes from and build mutual priorities to County reduction prioritization each of the Task understanding resource allocation Present revenue- Force sessions Work together to set Share service level generating scenarios Review scenario values that will guide reductions that Work together to voting results decision- making address the budget prioritize optimal Develop guidance for Understand Task gap scenario( s) that the County Executive Force priorities as it Work together to address the budget and Board of relates to core prioritize reductions gap Supervisors
services provided by
the County
Tuesday, May 14 Wednesday, May 29 Tuesday, June 4 Tuesday, July 30 Figure 1: Waukesha County, WI 2024 Budget Task Force Timeline Details of the Task Force discussions and individual and group exercises are captured in this report. The density of financial information to review and understand during this short time horizon was challenging; nevertheless, the Task Force did a remarkable job of absorbing all the details, engaging in productive conversation, and ultimately crafting meaningful guidance for the County' s elected officials. This process also provided the County an opportunity to assess and confirm that current resource allocation aligns with community values and priorities.
Engaging the public regularly regarding policy priorities as part of the budget development process is both a best practice and a vehicle for maintaining trust among local governments and the residents they serve. Task Force members learned how well the County staff have navigated these fiscal challenges in the past and their ongoing dedication to prudent financial management oftaxpayer resources.
Given the complexity and competing interests of individual Task Force members, reaching a consensus about addressing future budgetary challenges was unrealistic. Instead, the group reached a shared agreement regarding the values, priorities, and areas of focus over the next few years to provide sound guidance for elected officials as they navigate difficult policy decisions. The key themes that emerged from the work of the Budget Task Force are reflected below. The report provides more details regarding each ofthese themes.
Importance of fiscal responsibility
Targeted budgetary service level reductions and enhancements Desire to explore revenue options
Support for infrastructure and economic development
Evaluate shared services and shared revenue
2 WAUKESHA COUNTY, WI
ITEM NO. 11.
Docusign Envelope ID: 8463 BA3 F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Introduction
Background and Methodology
In March 2024, Waukesha County engaged Raftelis to conduct a fiscal health assessment and facilitate the work of a Budget Task Force charged with providing guidance and policy priorities to the Board of Supervisors to inform how the County can navigate short and long-term financial challenges.
To accomplish this, the project team held a kickoff meeting with key members of the County' s leadership and finance team to discuss the engagement. The project team then conducted individual and small group interviews with each of the major departments in the County to understand service level expectations, resourcing requirements, fiscal challenges, workload drivers, and opportunities to adjust resource allocation.
The project team reviewed and analyzed a variety of financial data and information provided by the County to understand organizational structure, authorized staffing levels, the budget development process, and core services provided by the County. As part of the financial condition assessment, historical financial data was analyzed to inform trends and key assumptions used to develop an independent financial model projecting estimated revenues and expenditure requirements to continue providing the same level of service today over the next several years.
Benchmarking analysis of peer counties selected based on geographic or demographic similarity was also conducted to provide important context during the Task Force sessions.
Members of the project team then developed and led four in-person Task Force sessions from May to July 2024 to discuss the results of the fiscal health assessment, viable gap closure scenarios, and guidance for how County elected officials should navigate the financial challenges to achieve fiscal sustainability over the next decade.
About Waukesha County, WI
Waukesha County is Wisconsin' s third- largest county, located directly west of Milwaukee and 70 miles east of Madison, the state capital. The County population is 411, 538, according to the Wisconsin Demographic Services Center' s 2023 population estimates, which represents a 5. 6% increase from the 2010 Census. Relative to the state at large, Waukesha County has higher median income, median home values, and educational attainment levels.
Table 1: Waukesha County Demographic Characteristics, 20221 Demographic Category Waukesha County State of Wisconsin Median age 43. 8 40. 4
Median household income 98, 849 70, 996
Median home value 379, 700 252, 800
Below federal poverty level 5. 2% 10. 7%
Homes owner-occupied 76. 9% 68. 1%
High school graduate equivalent or higher 97. 8% 93. 5% Bachelor' s degree or higher 48. 7% 33. 2%
Graduate or professional degree( 25+) 17. 8% 11. 6%
1 2022 American Community Survey, U. S. Census Bureau.
BUDGET TASK FORCE ANALYSIS AND FACILITATION 3
ITEM NO. 11.
Docusign Envelope ID 8463 BA3 F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Waukesha has a County Executive form of government, and the legislative body consists of a 25- member Board of Supervisors ( Board). The County Board is elected for two- year terms to represent separate geographic districts with populations of around 16, 500 each. The Board of Supervisors sets policy by adopting ordinances and resolutions, including reviewing and adopting the annual budget. The County Executive, who is elected to a four- year term, oversees the day-to-day operations of the County and appoints the heads of all County departments except those led by elected officials or state statutory boards and commissions. Elected positions in the County beyond legislative and executive roles include the Circuit Court Judges, Clerk of Courts, County Clerk, District Attorney, Register of Deeds, Sheriff, and Treasurer.
STRUCTURE
Waukesha County' s operations are organized by six functional areas depicted in the chart below. Departments led by an elected position are shown in grey. Attorneys in the District Attorney' s Office and judges within the Circuit Court are state employees, while support staffwithin these departments are funded by the County. The other departments are led by members of the County Executive' s cabinet. Law enforcement services are provided by the Sheriffs Office for unincorporated areas of the County and by contract for select municipalities. The County operates a regional 911 dispatch center providing Police, Fire, and Emergency Medical( EMS) dispatch service to 34 of the 37 municipalities in the County. The Extension— Waukesha County is administered through county and state shared governance, and the Bridges Library System— a state- funded, combined two-county system with neighboring Jefferson County— is governed by a Board of Trustees composed of each county' s residents? 2 As part of library system funding required under state statute, the County administers a separate library property tax levy applied on non-library municipalities that is used to reimburse library communities for non-resident use. 4 WAUKESHA COUNTY, WI
ITEM NO. 11.
Docusign Envelope ID: 8463 BA3 F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Waukesha County
I I I I I I
Parks,
Justice and Public Health and Human Environment, General Safety Services
Public Works
Education,& Land Administration
Non- Departmental
Use
Corporation
Sheriff Counsel: Child Register of Deeds Canty Executive Support
Emergency Health and Human Bridges Library _
Preparedness Services System County Board
District Attorney UW- Extension — County Clerk
and
Circuit Court
Parks
Use
Land
County Treasurer
Medical ExaminerF Corporation
Counsel
Department of
Administration
Figure 2: Waukesha County, WI Organizational Chart, FY2024 BUDGET
Each year, at the beginning of budget development, the Budget division estimates tax levy revenue and makes recommendations to the County Executive for allocating new levy among departments. The allocation is based on the County' s Strategic Plan and service priorities, with Public Safety typically receiving the largest allocation oftax levy dollars. The Budget division also factors in anticipated spending growth and the ability of departments to generate non-tax levy revenues ( e. g., user fees) to offset programmatic costs. From there, departments prioritize their estimated revenue and tax dollars to support core operations.
BUDGET TASK FORCE ANALYSIS AND FACILITATION 5
ITEM NO. 11.
Docusign Envelope ID: 8463 BA3 F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C The County' s budget philosophy is to " balance spending with people' s ability to pay," and County management indicates that it has traditionally strived to keep taxes low, resulting in Waukesha County consistently maintaining one of the lowest property tax rates among the 72 Wisconsin counties. At the beginning of this assessment, Waukesha County was one of four counties that had not enacted a 0. 5% sales tax. Recently, Manitowoc County adopted the 0. 5% sales tax to take effect on January 1, 2025. Waukesha has the lowest property tax rate among counties without a sales tax.
2023 Property Tax Rates by Wisconsin County
9. 00
0 $ 8. 00
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To $ 7. 00
W $ 76 6. 00
0 o $ 5. 00
0 74 $ 4. 00 1 i-• ----• -• ----• -• ----• -• - - •
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H $ 1. 00 1111111111111111.' 0. 00 i : iiiiilllllllllll 1))MC tlN NJNXAON CY'-'
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R 0 E er lace uFigure 3: 2023 Property Tax Rates by County3 The County' s conservative budget approach was further affected by state- imposed property tax levy limits.
Wisconsin State law caps counties' annual property tax levy increase at the percent increase in equalized property value due to new construction, with the exception of levy used to fund debt service. 4 The 2005 Wisconsin Act 25 limited the ability of localities to increase property tax, the single largest local revenue source. The initial legislation included minimum growth of at least 2%; however, the legislation was modified in 2011 ( after the Great Recession) to lower the minimum growth to 0%. Additional details and analysis regarding this state policy are included in the financial condition assessment; nevertheless, it is worth noting the impact of the revenue cap for annual budget development purposes.
3 Property tax rates shown include library system and other special taxing authorities. 4 Wisconsin Statutes§ 66. 0602( 3).
6 WAUKESHA COUNTY, WI
ITEM NO. 11.
Docusign Envelope ID: 8463 BA3 F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Budgeted expenditures by functional area are illustrated in the table below. Data is presented based on financial information disclosed in the County' s Budget Document. It is important to highlight that the figures include all funds, including funds supplemented through user fees and other non- tax revenue sources. For example, included in the amounts below is the County' s special purpose grant fund, which was set up to accept and budget for the
78. 5 million of one- time funding received from the American Rescue Plan Act (ARPA). As a result, expenditure trends reflect the temporary boost in budget levels from these one- time sources provided following the onset of the pandemic. Additional details regarding the allocation ofARPA funds by functional area are provided below.
Table 2: Budgeted Expenditures by Functional Area, All Funds, FY2020— FY2024 FY2020 FY2021 FY2022 FY2023 FY2024 Average
Functional Area Adopted Adopted Adopted Adopted Adopted Annual Budget Budget Budget Budget Budget Change
Justice and Public Safety $ 66, 932, 509 $ 68, 341, 029 $ 71, 650,398 $ 76, 479, 249 $ 78,062, 531 4% Health and Human
88, 837, 237 $ 89, 612, 129 $ 92, 065,962 $ 101, 654,563 $ 105, 559,022 4% Services
Parks, Environment,
35, 063, 785 $ 33, 498, 114 $ 38, 723, 077 $ 44, 724, 903 $ 43, 620, 188 6% Education, and Land Use
Public Works 33, 905, 037 $ 34,413, 700 $ 34, 827,094 $ 36, 510,406 $ 37,733, 516 3% General Administration $ 23, 270, 556 $ 23, 362, 925 $ 25, 294, 740 $ 26, 125, 174 $ 27, 302, 374 4% Non- Departmental 29, 531, 600 $ 30, 749, 479 $ 31, 245, 776 $ 29, 715, 040 $ 29, 329, 791 0% Debt Service( General) 14, 944, 779 $ 14, 873, 594 $ 15, 081, 796 $ 16, 135, 115 $ 16, 839, 088 3% Total Operating Budget $ 292, 485, 503 $ 294, 850, 970 $ 308, 888, 843 $ 331, 344, 450 $ 338, 446, 510 4% ARPA Allocation
Waukesha County, like other local governments around the country, received one- time federal ARPA funds to help offset impacts of the C OVID- 19 pandemic. The County' s allocation of ARPA funds totaled $ 78. 5 million, to be spent or obligated by December 31, 2024, and completed by December 31, 2026. The County generally manages ARPA funds in the Special Purpose Grant fund. ARPA projects were chosen by prioritizing a number of long-term County objectives, addressing both near- term pandemic impacts and investments in infrastructure. The budgeting of ARPA funds by functional area is captured in the table below.
Table 3: ARPA Allocation by Functional Area
Functional Area Total
Justice and Public Safety 44, 371, 355
Health and Human Services 8, 045, 870
Parks, Environment, Education, and Land Use 10, 235,000 Public Works 1, 327, 164
General Administrations 14, 531, 334
Grand Total 78, 510, 723
5 Includes multiple allocations that fund countywide initiatives but are recognized in " General Administration" for simplified reporting.
BUDGET TASK FORCE ANALYSIS AND FACILITATION 7
ITEM NO. 11.
Docusign Envelope ID 8463 BA3 F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C In general, following best practices, the County used one- time ARPA funds for one- time expenses. At times though, and because it was authorized by the federal government, ARPA funds were strategically used to support ongoing costs in order to avoid major service impact on residents. Short- term use of one- time funds for ongoing expenses has its place; however, prolonged reliance on such funds increases financial risk. The County appropriately developed a phased- in approach where ARPA funds would be replaced by ongoing levy revenue over a multi- year window to avoid structural imbalance. Structural imbalance refers to ongoing operational costs that are not supported by ongoing revenues. Some examples of ARPA funding used to avoid major operational disruption( e. g., ongoing operating costs) in the short run include:
1. 3 million to support recommendations outlined in the compensation study
2. 5 million to phase in Sheriff Department sworn officer pay increases o Funding spans three years, with a budget of$720, 000 in 2024
1. 6 million to phase in higher fuel, utility, and vehicle parts o Funding spans three years with a budget of$327, 000 in 2024 The Justice and Public Safety functional area received the largest total share of ARPA funds: more than $ 44 million. Most of this, $ 36 million, supported the Courthouse renovation project with an additional$ 2. 5 million for renovations to the Medical Examiner' s Office. Additionally, a civil court was converted to a sixth criminal court to help address the pandemic- driven backlog, with nearly$ 2. 5 million of ARPA funds supporting Circuit Court and District Attorney costs. Finally, $ 2. 5 million supported increases in Public Safety personnel costs to maintain competitive wages and avoid service disruptions.
An additional $ 14. 5 million supported countywide initiatives and is categorized as " General Administration" for simplicity purposes because of its effect on multiple county departments. This category includes about$ 4. 8 million for implementation of an Enterprise Resource Planning( ERP) system, $ 4. 3 million for recovery of administrative costs carrying out the grant initiatives, $ 3. 0 million for salary and benefit adjustments to improve worker retention e. g., phasing in the compensation study, mentioned previously), and $ 1. 6 million in higher fuel, utility, and vehicle parts( mentioned previously).
Parks, Environment, Education, and Land Use share of funding was $ 10. 2 million, including$ 7. 5 million used to expand the County' s revolving loan GROW fund to promote economic development by retaining, expanding, and attracting businesses, as well as to increase workforce housing stock to meet projected employment growth in Waukesha County. Health and Human Services received more than $ 8 million for programs and infrastructure investments that supported response to emerging public health services. ARPA- funded initiatives in both areas were generally one- time, rather than ongoing, with the exception of a Crisis Services in Law Enforcement project that added positions to a grant-funded pilot of embedded mental health clinicians in public safety agencies. Finally, ARPA funded$ 1. 3 million of one-time costs related to projects in Public Works.
CORE SERVICES MATRIX
The following table provides an overview of the County' s core services by functional area. It is meant to provide a high-level summary and is not inclusive of all County services. The programs outlined below provide a basis for understanding potential service level reductions or enhancements, including estimated fiscal and constituent impact.
8 WAUKESHA COUNTY, WI
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Table 4: County Core Services
Functional Area Department Programs
Radio Services
Emergency Communication Center
Preparedness
Emergency Planning
Prosecution/ Administrative Services
District Attorney • VictimlWtness Program
VOCA Grant Program
Clerk of Circuit Court Office
Justice and Public Circuit Court Juvenile/ Probate Division Safety Court Commissioners and Family Court Services
Medical Examiner • Medical Examiner Services
Administrative Services
General Patrol
Sheriff
Investigation
Inmate Security and Services
Court Security
Process Service
Corporation Counsel'
Child Support
Child Support
Administrative/ Information Services
Children and Family Services
Health and Human Adolescent and Family Services
Services Health and Human • Clinical Services
Services Public Health
Aging and Disability Resource Division
Criminal Justice Collaborating Council
Veterans' Services
Administrative Services
Register of Deeds
Land Records
Recording
Vital Records
Extension—
Strengthening County Citizens, Families, and Communities Waukesha County Administrative Services
Resource Sharing
Bridges Library • Education and outreach
Parks, Environment, System Automation Technology
Education, and Land Payments to Member Libraries/ Systems Use CAFE Shared Automation Fund
Parks
Administrative Services
Golf Courses
Ice Arenas
Parks and Land Use • Workforce Innovation and Opportunity Planning and Zoning
Land Resource
Environmental Health
Community Development
Airport Operations
Engineering Services
Highway Operations
Public Works Public Works Transit Services
Central Fleet
Facility Operations
Administration
BUDGET TASK FORCE ANALYSIS AND FACILITATION 9
ITEM NO. 11.
Docusign Envelope ID: 8463 BA3 F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Functional Area Department Programs
Advisory Boards
County Executive • County Administration
Customer and Community Services
County Board County Board and Committee Operations
Legislative Support
Licensing
County Clerk Legislative Support and Administrative Services Elections
Tax Collections
General County Treasurer • Investments
Administration Administrative Services
Human Resources
Budget Management
Department of Purchasing and Risk Management
Administration Information Technology/ Communications
Accounting Services
Administrative and Business Services
American Job Center
Corporation Counsel • General Legal Services
General
Non- Departmental Non- Departmental • Health and Dental Insurance Contingency
STAFFING
Personnel-related costs are a key expenditure driver for the County' s budget. Salaries and benefits represent nearly half ofthe County' s annual spending. The table below provides a historical overview of funded positions before the state- imposed levy limits and funded positions in 2024. The data reflects staffing resources, where ongoing revenue is needed to support the position cost. Sunset positions, such as grant- funded or project- based, are excluded from the summary. Four of the County' s five Functional Areas with authorized positions experienced a decrease in staffing from FY2010 to FY2024. Health and Human Services, which is the only functional area that experienced a staffing increase, is shown separately because it receives more than 70% of its funding from non- tax levy sources, such as user fees and state pass- through revenue. Position growth in this area is correlated with higher revenue reimbursement.
Table 5: Authorized Staffing Level by Functional Area, FY2010 and FY2024 FY2010 FY2024 Total Change Total Change
Functional Area
Budget Budget Positions) oo )
Justice and Public Safety 539 527 12) 2%
Parks, Environment,
214 171 43) 20%
Education, and Land Use
Public Works 161 142 19) 12%
General Administration 139 128 11) 8%
Subtotal
Health and Human Services 399 426 27 7%
Total Regular Positions 1, 452 1, 394 58) 4%
10 WAUKESHA COUNTY, WI
ITEM NO. 11.
Docusign Envelope ID 8463 BA3 F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Fiscal Health Assessment
As part of the annual budget development process, County staff conduct a comprehensive long-term forecast to inform future policy decisions based on anticipated revenue and spending levels. As part of the project scope, Raftelis conducted an independent, objective review of the County' s forecast model to determine future budget needs.
The Financial Condition Assessment reviewed five- year historical financial data( 2019— 2023) for all County funds to establish a financial baseline. It is important to note that the analysis excluded enterprise funds that are funded entirely through user fees or other non-tax sources as well as the capital budget except as it relates to debt service expenditures and financial policies dictating the percentage of cash contribution for bond- financed capital projects.
Raftelis also conducted a benchmarking analysis by identifying peer counties in Wisconsin based on similar demographic indicators. The analysis reviewed revenue sources and budgetary practices to help inform the County' s financial context.
The Financial Trend Analysis draws upon the findings of the Financial Condition Assessment, as well as other factors explained later in this section, to project future revenue and expenditure trends for the next five fiscal years.
The following sections summarize key historical findings and the financial trends anticipated to impact future budget needs for the County.
Financial Condition Assessment
The examination of Waukesha County' s financial condition spanned budgeted and actual staffing, spending, and revenues from fiscal years 2019 through 2023, as well as the 2024 adopted budget. The data considered included published budgets, internal and audited financial reports, and interviews with County leadership. Part of the fiveyear analysis reflects the economic and service impacts of the COVID- 19 Global Pandemic, which began in March 2020 and ended in May 2023. This period was characterized by suspending or altering many private and public services and stimulus funding from the federal government to avoid economic recession. As a result, the actual financial data during this period experienced greater variation than previous historical averages.
Summary of County Funds
More than 55% of the County' s budget is organized within the General Fund. The three largest revenue sources comprising the General Fund are, in order, the property tax levy, intergovernmental contracts/ grants, and charges for services. The County also maintains Debt Service and Capital Projects funds, distinct from the General Fund.
Debt Service is the third-largest recipient of tax levy, and capital projects are funded through a combination of available operating revenues ( cash) and bond issuances( debt).
County operations include five Enterprise Funds where operating and capital costs are entirely or mostly recovered through user charges. As of 2024, these include a fund for two golf courses, a fund for two indoor ice arenas, a fund for a materials recycling facility managed by the Department of Parks and Land Use, a fund for the airport managed by the Department of Public Works, and a Radio Services Fund managed by the Department of Emergency Preparedness. Two relevant changes occurred in 2020 when the airport became self- sustaining without property tax levy support, and the County sold a third golf course.
BUDGET TASK FORCE ANALYSIS AND FACILITATION 11
ITEM NO. 11.
Docusign Envelope ID: 8463 BA3 F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Finally, the County manages financing for interdepartmental goods and services through Internal Service Funds.
The Vehicle/ Equipment Replacement, Central Fleet Maintenance, and Collections Management funds manage respective services for all County departments, who are then charged a usage- equivalent fee for service. The Risk Management, Health and Dental Insurance, and End User Technology Funds allocate most costs to departments or users, with certain centralized subsidies.
Major Revenue Sources and Recent Trends
The following table summarizes County revenues by category for the past five fiscal years.
Table 6: County Operating Revenues by Category, FY2019— FY20236 Average
Revenue Category FY19 Actual FY20 Actual FY21 Actual FY22 Actual FY23 Actual' Annual Change
Tax Levy- General
89 338,540 $ 90, 609, 579 $ 92, 062,880 $ 93, 696, 377 $ 95, 635,790 2% Operations8
Tax Levy- Library 3, 523, 524 $ 3, 538, 749 $ 3, 659, 778 $ 3, 706, 706 $ 3, 999, 607 3% Intergovernmental9 II $ 61, 730,518 $ 75,515, 929 $ 82,069, 763 $ 84, 115, 231 $ 92, 208, 134 11% Fines, Licenses, and
Charges for 36, 427, 997 $ 35, 484, 735 $ 40, 605, 130 $ 37, 985, 293 $ 38, 001, 986 1% Services
Interdepartmental
37,284,088 $ 38, 086, 965 $ 40, 828, 287 $ 41, 708, 475 $ 42, 163, 746 3% Charges
Other10 17, 296, 583 $ 23, 185, 832 $ 17, 989, 986 $ 21, 109, 417 $ 23, 957, 337 11% Total 245, 601, 251 $ 266, 421, 789 $ 277, 215, 823 $ 282, 321, 499 $ 295, 966, 600 5% The County currently levies tax through property values. As mentioned previously, state statute limits annual property tax levy increases to the prior year' s change in value owing to net new construction, which incorporates both new and demolished buildings. There is some flexibility beyond the limit, primarily for unused tax levy from the prior year and to support debt service obligations. The County apportions the levy across taxable properties based on their equalized values. With the state- imposed cap on levy growth, the effective tax rate has decreased in recent years. The County' s total equalized property value has consistently increased, often at a much higher rate than the rate of tax levy growth. From 2019 to 2024, equalized property value rose from $ 55 billion to nearly $ 83 billion, while the effective tax rate per$ 1, 000 of equalized value fell 26%, from$ 1. 89 to$ 1. 39.
The following figure illustrates trends in property value and property tax rates over the past 10 years. 6 Excludes enterprise funds, debt, and capital.
Preliminary unaudited figures
Does not include levy dedicated to capital or debt service. 9 FY 2021— FY 2023 included ARPA funding for operations. 1° Market value adjustment on investment income is excluded. 12 WAUKESHA COUNTY, WI
ITEM NO. 11.
Docusign Envelope ID 8463 BA3 F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Waukesha County Property Tax Value and Tax
Rate, 2015- 2024
90 2. 50
80 $ 2. 08
70 2. 00
60 1. 39
50 1. 50
m
40 1. 00
30 20 0. 50
10 0 0. 00
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Total Equalized Value .— Effective County Tax Rate
Figure 4: Waukesha County Property Tax Rates and Property Value, 2015- 2024 Justice and Public Safety receive the greatest share oftax levy (41. 3% in 2024). The Sheriffs Office receives nearly two-thirds of the levy allocated to this area, with the remaining allocated to the District Attorney, Emergency Preparedness, Circuit Court Services, and Medical Examiner. Tax levy supports the majority of service delivery costs for each of these five departments. Public Works is equally reliant on intergovernmental funds( most of which is funding for maintenance of state highways) as it is tax levy, followed by interdepartmental funding for vehicles and equipment. Tax levy is only the third largest revenue source for Parks, Environment, Education, and Land Use, as nearly two-thirds of services are funded by intergovernmental and service charge revenues. Lastly, less than 10% of the General Administration budget is funded through tax levy, with the balance supported by interdepartmental and other sources. Total tax levy allocation by functional area, as a share of one dollar, is reflected in the figure below.
9¢
47¢ 24¢
Parks, Env.,
Justice and Public Health and 24¢
Safety Human Services Infrastructure Educ. and Other
Land Use
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Figure 5: 2024 Tax Levy Allocation by Function, as$ 1
BUDGET TASK FORCE ANALYSIS AND FACILITATION 13
ITEM NO. 11.
Docusign Envelope ID 8463 BA3 F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Intergovernmental revenue increased by 10. 6%, on average, over the past five years, the largest among each ofthe revenue categories. Much of this growth is driven by pandemic- era federal funding that cannot be relied upon in future budgets. County departments try to maximize state and federal funding resources to meet County priorities.
However, nearly all the funding— whether from grants, contracts, or aid— is restricted to specific purposes. Shared revenue from the state is the only major unrestricted intergovernmental funding available, and it generally comprises less than two percent of funding countywide ( and even a portion of this is restricted to transportation and certain public safety functions). The state appropriation comes through a combination of programs and is derived from state taxes. Other intergovernmental funding includes federal entitlement programs like the Community Development Block Grant from the Department of Housing and Urban Development, state support for mandated services like the Courts, and grants that County staff pursue. State funding for mandated services is often flat or grows minimally, not keeping up with the cost of providing services. As a result, approximately 40% of local tax levy in the 2024 budget was used to meet state- mandated service obligations.
Interdepartmental revenues are primarily associated with the internal service funds described earlier for End User Technology, Vehicle/ Equipment Replacement, Central Fleet Maintenance, Risk Management, Collection Management, and Health and Dental Insurance. Other interdepartmental revenues are also for internally provided goods and services, such as Court Security supplied by the Sheriff and paid from the Circuit Court budget.
Recognizing the fiscal constraints that many user departments are facing, most of these charges have been limited to 2- 3% increases each year, despite the growing costs of providing these services. This has required significant subsidies to artificially lower interdepartmental charges through the use of internal service and general fund balance, including$ 613, 000 in the End User Technology Fund and$ 268, 000 in the Risk Management Fund in the 2024 budget. The use of one- time funds to bridge the gap between the cost of services and charges to departments will not be sustainable in the long term. From 2019 to 2023, these interdepartmental revenues increased by 3. 1% on average, which still exceeds the average growth in the allowable property tax levy to support them.
Fines, licenses, and charges for services capture user-based revenue, whether they are imposed for compliance, authorization to operate, or in exchange for accessing a program or activity. Excluding Enterprise Funds, this revenue source has grown 4% from 2019 to 2023. Certain user fees are set by the state or an external agency with limited ability to change as operating costs evolve. Other fees that the County exerts greater control over— like golf course fees— are carefully balanced between cost recovery needs and remaining competitive in the regional market.
Where possible, the County has prioritized increasing user fee revenues to keep pace with the cost ofproviding the service. For example, Parks and Land Use, where a majority of programs are discretionary, achieves 77% cost recovery across all of its funds. This minimizes the reliance on tax levy support. Additionally, the outpatient clinic from Health and Human Services, which receives governmental reimbursement for eligible Medicaid patients, is able to charge patients who can pay higher commercial insurance reimbursement rates, increasing revenue to support other programs where cost-recovery is more challenging.
Expenditure Trends
The following table shows County expenditures by category for the past five fiscal years. 14 WAUKESHA COUNTY, WI
ITEM NO. 11.
Docusign Envelope ID 8463 BA3 F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Table 7: County Expenditures by Category FY2019 — FY2023 Expenditure
FY19 Actual FY20 Actual FY21 Actual FY22 Actual
FY23 Average
Category Actual Annual Change
Salaries 94, 861, 283 $ 99, 997, 477 $ 101, 143, 489 $ 101, 500, 262 $ 107, 139, 325 3% Benefits 32, 385, 290 $ 33, 956, 966 $ 35, 705, 532 $ 34, 486, 102 $ 36, 234, 191 3% Operating 1FIr 76, 998, 367 I $ 85, 984, 344 $ 78, 553, 630 $ 87, 890, 381 Expenses
Contracted
31, 550, 677 $ 32, 136, 358 $ 32, 748, 678 $ 34, 850, 104 $ 37, 929, 098 5% Services
Debt Service $ 13, 904, 500 $ 14, 254, 500 $ 14, 312, 719 $ 14, 520, 921 $ 15, 842, 737 Utilities 2, 943, 744 $ 2, 837, 667 $ 3, 226, 256 $ 3, 523, 124 $ 3, 535, 724 5% Interdept. 21, 032,319 $ 21, 115,483 $ 22,375, 468 $ 24,290,762 $ 24, 265, 908 4% Total 272, 330, 829 $ 281, 296, 818 $ 295,496, 486 $ 291, 724, 905 $ 312, 837, 364 4% The modest average annual increase in expenditure primarily reflects the increasing cost of providing existing services and increased temporary federal funding. The County has had limited- service expansion over the past five years. High- quality service delivery relies on talented staff, and the County has worked diligently to remain a competitive employer. As previously discussed, salary and benefit costs have risen nationwide, and municipal employers are facing competitive pressure from not only private sector jobs but also neighboring localities. The County strives for cost- effective and competitive employee benefits by self-insuring health and dental insurance coverage and participating in the Wisconsin Municipal Mutual Insurance Company for eligible liability coverage.
For an organization with more than 1, 000 employees, this is a best practice12; however, managing healthcare costs within a constrained revenue generating capacity is a challenge. Nationwide medical inflation was 7% in 2023, and the County has effectively managed to stay at or below this threshold. 13 Non- personnel operation costs increased between 15% to 20% over the past five years, well above the 7% growth in property tax levy revenue over the same period. Historically, the County has relied on a contract- based service model to increase efficiency and effectively manage resources. As large contracts have come due for renewal, the underlying labor and supply costs impacting contract pricing have resulted in significant renewal increases. For example, the jail medical services budgeted contract costs increased 25% between 2019 and 2024. The County' s utility costs jumped up 20% from FY2019 to FY2023, largely driven by a 14% increase in 2021 and a 9% increase in 2022. Finally, interdepartmental spending increased by approximately 4% per year on average, reflecting growing costs for essentials like software licenses, risk management charges, and bailiff services. One key contributor to rising costs is inflation.
GENERAL FUND HISTORICAL OVERVIEW
Budgeted and actual General Fund expenditures both increased, on average, between 3- 4% each year over the past five years. A summary of actual revenue and expenditures by fiscal year is illustrated in the table below. The relatively small variance between these amounts is indicative ofthe County' s ability to both accurately forecast and adjust as needed based on revenue collections throughout the year. 11 Preliminary unaudited.
12 Sammer, Joane. Is Self-Insurance for you? Society for Human Resources Manager ( SHRM). May 2011. https:// www. shrm. org/ topics-tools/ news/ hr-magazine/ self-insurance 13 Kaiser Family Foundation ( KFF). Employer Health Benefits; 2023 Summary of Findings. hops:// files.kff.org/ attachment/ Employer-Health-Benefits-Survey-2023-Annual-Survey-Summary uf-Findings.pdf BUDGET TASK FORCE ANALYSIS AND FACILITATION 15
ITEM NO. 11.
Docusign Envelope ID 8463 BA3 F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Table 8: General Fund Budget to Actual Expenditures, FY2019— FY2023 Favorable/ Variance to
Year Actual Revenues Actual Expenditures Unfavorable Variance Modified Budget(%)
2019 174, 375, 559 174, 943, 194 567, 635 0. 3%
2020 183, 677, 936 189, 168, 729 5, 490, 793 2. 7%
2021 189, 565, 729 195, 778, 871 6, 213, 142 3. 2%
2022 187,959, 054 195, 545, 024 7, 585, 970 3. 8%
2023 199,356,512 206, 591, 220 7, 234,708 3. 4%
Average 5, 418, 450 2. 7%
PEER BENCH MARKING
The project team compared Waukesha County' s financial profile to that of other Wisconsin counties to help provide context to the County' s financial position. Given the unique nature of local governments within each state, the benchmarking analysis focused on other counties in Wisconsin. Benchmarking can be a useful tool to identify shared challenges and opportunities. However, it is important to note that any municipal entity can vary significantly from its neighbors or similarly sized counties due to a variety of social and economic factors, and benchmarking should be considered as one data point in a more holistic analysis.
For this analysis, counties in Wisconsin were first reviewed based on population size. Waukesha is the third largest County in the state, within the top tier range of population size from around 170,000 in Kenosha County to more than 930, 000 in Milwaukee. Population is a useful comparative metric because a County' s size typically impacts the resources available from the tax base, as well as the service level demands. Other comparative factors that were analyzed included whether the County had adopted the 0. 5% sales tax; median income and house value; percent of the population below the federal poverty level; and crime rates. These factors were important given Waukesha' s strong property tax base, conservative financial policies, and prioritization of public safety services by residents.
The analysis also considered geographic proximity to Waukesha, as Wisconsin' s population tends to be concentrated in its southern region where the County is located.
As captured in the table below, Waukesha' s population size is closest to Brown County, which is located in northern Wisconsin near Green Bay. Although further north, Green Bay has both a major professional sports team and Lake Michigan waterfront, attributing similar socioeconomic characteristics to Waukesha. Waukesha' s median income and home values aligned closest to Dane County, where the state capital of Madison is located.
When examining the prevalence of poverty and crime, Waukesha ranks closer to Racine, which also happens to be the only other benchmark peer without a county sales tax. 16 WAUKESHA COUNTY, WI
ITEM NO. 11.
Docusign Envelope ID: 8463 BA3 F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Table 9: Peer Counties Demographic Comparison14
Adopted Median %
Below Violent Property
County
2023
Sales
Median
House
Federal Crimes per Crimes per
Population15
Tax
Income
Value Poverty 1, 000 1, 000
Level Residents16 Residents17
Brown 273, 333 1986 71, 127 251, 900 9. 9%0 8
i 12
Dane 590, 056 1991 84, 831 373,500 10. 4% 7 16
Kenosha 170, 243 MIEM1 ! 253, 200 dilliME a Jicri
Milwaukee 937, 259 1991 58, 214 216, 900 17. 1% 20 29
Racine 197, 422 No 238,200 8. 0% 7 10
Waukesha 411, 538 None 98, 849 379, 700 5. 2% 3 7
To gauge the overall resource allocation and spending of taxpayer dollars, the table below compares the budget, property tax levy, and state- shared revenue per capita for each of the peer counties. Among peer counties, Waukesha has the lowest per capita amounts across all three categories ( although Dane County receives similar shared revenue per capita). To meet resident service level expectations with fewer resources year after year requires persistent operational efficiency.
Table 10: Peer Counties Spending Per Capita
County
Total 2024 Budget Per 2024 Tax Levy Per 2024 Shared Revenue Ca• ita Ca. ita Per Ca• ita
brown 1, 702 347 $ 17
Dane 1, 641 431 10
Kenosha 7
1. 1 $ 1, 657 457 MI $16
Milwaukee 1, 464 311 58
Racine 1, 233 327 IMP $19
Waukesha 916 279 10
Comparison of Revenue Sources
The primary revenue source for all Wisconsin counties is tax revenue. All counties collect property taxes, and they also have the option to collect vehicle registration fees( also known as a wheel tax) and/ or a 0. 5% sales tax. Four of the five benchmark counties collect sales tax, as illustrated in Table 9. Milwaukee County also received special approval from the state legislature to increase its county sales tax and add a city sales tax beginning in January 2024. 18
14 Unless otherwise specified, all data is from 2022 ( most recent available) and the 2022 U. S. Census American Community Survey.
15" Demographic Services Center' s 2023 Population Estimates." Wisconsin Department ofAdministration, https:// doa.wi. gov/ DIR/ Final Ests Summary 2023. pdf. 16" UCR Offense Data." Wisconsin Department ofJustice, https:// www.doj. state.wi.us/ dles/ bjia/ ucr-offense-data. 17 Ibid.
18" Tax Rates." Wisconsin Department ofRevenue, https:// www.revenue. wi. gov/ Pages/ FAOS/ pcs- taxrates. aspx# txratell.
BUDGET TASK FORCE ANALYSIS AND FACILITATION 17
ITEM NO. 11.
Docusign Envelope ID 8463 BA3 F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Waukesha, at the beginning of this assessment, was one of only four counties, out of 72 total, without the county sales tax. Recently, Manitowoc County adopted the sales tax with an effective collection date of January 1, 2025.
Among the remaining three counties without sales tax, Waukesha is certainly not alone in experiencing growing fiscal pressure. In the previous three other counties without the sales tax— Manitowoc, Racine, and Winnebago— the FY2024 budget development processes identified an average shortfall of$ 8. 3 million. Further, in the 2024 budget messages for both Winnebago and Racine counties, the respective County Executive took the opportunity to highlight their mounting constraints and foreshadow seeking additional revenues. 19 Waukesha has maintained its Aaa/ AAA bond ratings despite fiscal constraints. The bond rating agencies acknowledge the availability of the additional revenue source( sales tax) and spending growth that has outpaced restricted revenue growth, noting they expect spending to grow in line with, to slightly above, revenue growth in the absence of policy action." 2° The chart below illustrates the distribution of major revenue sources among each ofthe peer counties. 21 Ofthe four counties with comparable data, 22 not surprisingly, Waukesha relies the most on a property tax levy and other revenues ( including user fees). The addition of sales tax in the other three counties contributes to less reliance on the property tax levy. Intergovernmental revenue is a significant source ofrevenue for all counties in the state, with similar proportions among the four counties shown below. As mentioned previously, much of this revenue is restricted in use to support specific, often mandated, services provided by the County.
Waukesha 30%
Intergovernmental
Milwaukee 14% Property Tax Levy
Kenosha i/M
8% 8% Sales Tax
Dane 26% 9% MI7% I Other Revenues
0% 100%
Figure 6: 2024 Revenue Sources for Counties That Budget with Comparable Categories 19" Racine County 2024 Budget." Racine County,
racinecounty.com/ home/ showpublisheddocument/ 46848/ 638428279760830000; " 2024 Approved Budget Book." Manitowoc County, https:// manitowoccountywi. gov/ wp-content/ uploads/ 2024/ 05/ 2024-Approved- Budget-Book.pdf; Adopted Budget 2024." Winnebago County, https:// www. co. winnebago. wi.us/ sites/ default/ files/ uploadedfiles/ 2024% 20ADOPTED% 20Budget. pdf. 20 " Fitch Rates Waukesha County, WI' s Series 2023A GO Notes ` AAA'; Outlook Stable." Fitch Ratings, https:// www.fitchratings. com/ research/ us- public-finance/ fitch-rates-waukesha- county-wi-series- 2023a- go- notes- aaaoutlook-stable- 12- 04- 2023. 21 " 2024 Adopted Operating Budget." Milwaukee County, https:// county. milwaukee. gov/ files/ county/ administrativeservices/ PS B/ BudgetsCopy- 1/ 2024- Budget/ 2024- Adopted-Budget/ 2024- Operating-Budget2025. pdf; " 2024 Budget." Kenosha County, https:// www. kenoshacounty. org/ DocumentCenter/ View/ 17819/ 2024- County-Budget; " 2024 Adopted Budget." Dane County, https:// admin.danecounty. gov/ documents/ pdf/ Budget/ 2024/ Adopted-Budget-Report.pdf. 22 Counties are only shown if their revenue categories align with Waukesha closely enough for comparison. 18 WAUKESHA COUNTY, WI
ITEM NO. 11.
Docusign Envelope ID: 8463 BA3 F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Financial Trend Analysis
After reviewing historical financial results for revenue and expenditures, the project team created a financial model incorporating the historical trends along with anticipated future trends to forecast budget needs over the next six years, FY2025 — FY 2030. This independent analysis provided an objective review of the County' s annual forecasting process, and it began to identify some of the key challenges associated with achieving a balanced budget in future years.
KEY ASSUMPTIONS
The adopted FY2024 budget was used as the base year of data for the financial model. The financial model excluded Enterprise Funds and the Capital Improvement Fund, focusing on operating budget requirements for all other funds, including Special Revenue and Internal Service Funds. Key assumptions used in the model are detailed below.
Fund Balance
The starting fund balance for FY2024 is assumed to be $ 60. 9 million, based on the adopted FY2024 County budget, and the starting fund balance for FY2025 is assumed to be$ 57. 4 million, based on County staff projections.
These figures represent the unassigned fund balance for General and Special Revenue Funds only.
The annual target fund balance is assumed to be 15% of annual General and Special Revenue Fund expenditures, and the minimum is assumed to be 11% ofannual expenditures, based on adopted County financial policies. 23 Operating Expenditures
The model identifies assumptions for annual changes in base operating expenditures based on expenditure category. These assumptions were developed based on historical trends and input from County staff. The list of assumptions by category is shown in the table below.
Table 11: Base Annual Change Assumptions for Operating Expenditures by Category Category
Assumed Annual
Percent Change
Salaries24 5%
Benefits 5%
Operating Expenses 4%
Capital Assets 5%
Contracted Services 8%
Utilities 10%
Interdepartmental Charges 4%
A total of 98% of budgeted operating expenditures are projected to be spent per year. Historically, the number has been closer to 97%, but this is largely due to high vacancy rates, and the model assumes a lower vacancy rate going forward.
23" Financial Management Policies." Waukesha County.
24 Includes across- the- board salary range adjustments, progression through step ranges, and performance pay, similar to recent years.
BUDGET TASK FORCE ANALYSIS AND FACILITATION 19
ITEM NO. 11.
Docusign Envelope ID 8463 BA3 F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Capital Expenditures
Assumptions for annual capital expenditures, as well as revenue offsetting the cost of these expenditures, are based on the County' s adopted capital plan. Based on past County practice, the model assumes that the County will pay for at least 20% of all capital costs directly( as down payment) and that the rest of the cost, aside from any offsetting revenue, will be financed through 10- year bonds. The annual interest rate for the bonds is assumed to be 4%, based on standard County assumptions.
Non- Tax Revenues
The model identifies assumptions for annual changes in base non-tax operating revenues based on revenue category. These assumptions were developed based on historical trends and input from County staff. The list of assumptions by category is shown in the table below.
Table 12: Base Annual Change Assumptions for Non- Tax Operating Revenues by Category Category
Assumed Annual
Percent Change
Intergovernmental 2%
Fines, Licenses, and
30/0
Charges for Services
Interdepartmental Revenues 4%
Other Revenues 3%
Tax Revenues
The model assumes that all debt service will be paid for via property tax levy, and that the remaining portion ofthe tax levy, which is subject to state restrictions on the annual increase, will increase by 1. 4% per year. The 1. 4% figure is based on County projections of future development and is supported by historical trends. Property appreciation has increased significantly, while net new construction is limited by the availability of developable properties and is affected by the economic cycles.
FUTURE PROJECTIONS
Based on the assumptions detailed in the previous section, projected operating revenues and expenditures are shown in the tables below. Numbers are rounded to the nearest million. 20 WAUKESHA COUNTY, WI
ITEM NO. 11.
Docusign Envelope ID: 8463 BA3 F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Table 13: Projected Operating Expenditures by Category, FY2024- FY2030 ($ M) 25 Category FY24 FY25 FY26 FY27 FY28 FY29 FY30
Average
Annual Change
Salaries 111. 7 $ 116. 9 $ 122. 7 $ 128. 8 $ 135. 3 $ 142. 0 $ 149. 1 5% Benefits 40. 2 $ 42. 0 $ 44. 1 $ 46. 3 $ 48. 6 $ 51. 0 $ 53. 6 5% Operating Expenses 92. 1 $ 90. 9 $ 94. 6 $ 98. 4 $ 102. 3 $ 106. 4 $ 110. 6 3% Capital Assets 1. 8 $ 1. 9 $ 2. 0 $ 2. 0 $ 2. 2 $ 2. 3 $ 2. 4 5% Contracted Services 37. 8 $ 40. 8 $ 44. 1 $ 47. 6 $ 51. 4 $ 55. 5 $ 60. 0 8% Utilities 3. 3 $ 3. 7 $ 4. 0 $ 4. 4 $ 4. 9 $ 5. 4 $ 5. 9 10% Interdept. Charges 24. 2 $ 25. 0 $ 25. 9 $ 26. 8 $ 27. 8 $ 28. 7 $ 29. 8 4% Transfers to Other Funds26 $ 1. 0 $ 0. 9 $ 1. 0 $ 1. 1 $ 1. 2 $ 1. 3 $ 1. 4 6% Debt Service 16. 8 $ 17. 3 $ 19. 8 $ 21. 4 $ 22. 0 $ 22. 4 $ 21. 8 5% Total 328. 9 $ 339. 4 $ 358. 1 $ 376. 9 $ 395. 6 $ 415. 0 $ 434. 6 5% Table 14: Projected Operating Revenues by Category, FY2024 - FY2030 ($ M) 27 Category FY24 FY25 FY26 FY27 FY28 FY29 FY30
Average
Annual Change
Tax Levy 119. 0 $ 122. 4 $ 126. 3 $ 129. 5 $ 131. 5 $ 133. 5 $ 134. 4 2% Intergovernmental 85. 9 $ 88. 2 $ 90. 0 $ 91. 8 $ 93. 6 $ 95. 5 $ 97. 4 2% Fines, Licenses, and
41. 6 $ 42. 8 $ 44. 1 $ 45. 4 $ 46. 8 $ 48. 2 $ 49. 6 3% Charges for Services
Interdept. Revenues 46. 3 $ 47. 9 $ 49. 6 $ 51. 3 $ 53. 1 $ 55. 0 $ 56. 9 3% Dedicated Fund Balance 8. 9 $ 7. 1 $ 7. 3 $ 7. 5 $ 7. 7 $ 7. 9 $ 8. 1 1% ARPA 8. 8 $ 0. 0 $ 0. 0 $ 0. 0 $ 0. 0 $ 0. 0 $ 0. 0 N/ A Other Revenues 18. 5 $ 19. 0 $ 19. 6 $ 20. 2 $ 20. 8 $ 21. 4 $ 22. 0 3% Carryforward28 0. 0 $ 6. 8 $ 7. 2 $ 7. 5 $ 7. 9 $ 8. 3 $ 8. 7 N/ A Total 328. 9 $ 334. 2 $ 344. 0 $ 353. 2 $ 361. 4 $ 369. 7 $ 377. 1 2% Operating expenditures are projected to outpace earnings each year, based on the base model assumptions. The gap is also expected to grow over time, as illustrated in the figure below. 25 Figures may not sum due to rounding.
26 Levy transferred to capital projects as part of down payment. 27 Figures may not sum due to rounding.
28 The model assumes that 2% of budgeted operating expenditures in 2025 onward are not expended, based on past trends, and these funds are carried forward.
BUDGET TASK FORCE ANALYSIS AND FACILITATION 21
ITEM NO. 11.
Docusign Envelope ID 8463 BA3 F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Total Projected Operating Revenues and
Expenditures
Base Scenario ($ Millions)
358 377 396 415 435
329 339
329 334 344 353 361 370 377
0 5 14 24 34 45 58
2024 2025 2026 2027 2028 2029 2030
Funding Gap Total Operating Expenditures
Total Operating Revenues
Figure 7: Projected Operating Expenditures and Revenues Under Base Scenario, FY2024 — FY2030 The baseline forecast provided above aligns with the County' s financial forecast provided in the budget document as part of budget development each year. The results indicate a structural deficit, where primary ongoing revenue sources are growing at a rate that is below the cost to continue providing the same level of service residents receive now over the next six years. Structural deficits can lead to decreased reserve balances, limit capacity for future capital investment, and require significant service level reductions to meet balanced budget requirements.
Gap Closure Scenarios
The difference between estimated revenue and cost to continue providing services ( baseline) is referred to as the budget gap. As part of the financial analysis, Raftelis worked with County staff to identify gap closure options that either reduce services ( expenditure savings) or increase revenue ( revenue- generating options). Collectively these options will be needed to address the projected budget gap over the next several years. It is important to note that the structural imbalance experienced by the County is not new. Since 2019, the County has faced preliminary base budget gaps ranging from$ 3 to$ 8 million annually.
EXPENDITURE REDUCTIONS
Under the state- imposed levy limits, the " new" revenue provided through tax levy growth is usually insufficient to cover the increasing cost of providing core services, often resulting in staff reductions and other expenditure cuts.
As such, departments have identified cost savings by reducing non- mandated services and trimming support for mandated services. The anticipated budget gap starts at approximately $ 5 million in 2025. It grows to approximately$ 58 million in six years as inflationary pressure for operational costs increases an average of 3— 5%, higher than historical averages of 2 — 3%. The financial model included a targeted analysis of needed expenditure reductions or revenue enhancements to solve for the next six years. The estimated savings target is approximately 30 million, which would help mitigate the inflationary impact that results in the$ 58 million gap. 22 WAUKESHA COUNTY, WI
ITEM NO. 11.
Docusign Envelope ID 8463 BA3 F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C To assist with identifying potential expenditure reduction scenarios, the project team leveraged the County' s program- based budget. This data allowed for easier translation of estimated savings amounts and service level impact. This relationship is critical for policymakers to have a clear understanding of the trade- offs associated with no longer providing a service or reducing the current service level. Given a much shorter time horizon for the financial analysis and Task Force facilitation( three months) compared to traditional budget development ( nine or more months), the savings estimates required simplified assumptions and instead focused on understanding what programs might be feasible to reduce ( e. g., are not mandated) and the net tax levy support that could be realized as potential savings. This information was then used to help guide the Task Force discussion around service level priorities and willingness to reduce certain services.
The figure below provides the scope of service level reductions following the logic described above, beginning with the adopted FY2024 Budget to the approximately $ 38 million of discretionary services where tax levy savings could be achieved. Nearly all of these services would need to be reduced/ eliminated to achieve the $ 30 million of targeted expenditure reductions that solve the County' s projected budget gap over the next six years. Discretionary is a subjective term. Many of the programs included in this amount still include core services that may have mandated components. For example, law enforcement is mandated for unincorporated areas of the County and, based on resident priorities, would likely not be classified as " discretionary;" however, tax levy support is highest among this functional area, and as such, resource allocation could be reduced by adjusting staffing levels, which may in turn increase response time or limit availability to respond to non- violent calls for service. What constitutes a core service is unique to each locality. Core services are the essential functions and services provided to ensure the well- being, safety, and effective functioning of the community. r-$
391. 4 M 119. 0 M 37. 6 M
General Fund
Enterprise Funds
Special Revenue
Local Tax Levy Discretionary programs
Funds
supported programs Potential tax levy
Internal Service Funds
Includes both savings, after
mandated and considering other lost
Debt Service& Capital discretionary services revenue
Projects
Bridges Library System
I
Figure 8: Scope of Expenditure Reductions
The nearly$ 38 million of potential service reductions was also broken down by functional area, as shown below.
This was based on underlying program budget data. The proportion of savings is correlated with how the County spends tax levy revenue by functional area.
BUDGET TASK FORCE ANALYSIS AND FACILITATION 23
ITEM NO. 11.
Docusign Envelope ID: 8463 BA3 F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Justice & Public', Health& Huma IGeneral
Safety Services Administration
78. 1M Budget S105. 6M Budget $ 43.6M Budget 37. 7M Budget 27.3M Budget
49. 2M Levy 28.4M Levy 10. 1 M Levy 12.4M Levy 2. 5M Levy
11. 9M 11. 2M 6.4M 7.OM 1. 2M
Discretionary Discretionary Discretionary Discretionary Discretionary Figure 9: Scope of Expenditure Reductions by Functional Area
REVENUE ENHANCEMENTS
The County has three tax-related revenue enhancements it could consider to address the budget gap. There are also non-tax revenue enhancements, though many are less impactful on the $ 30 million target based on the scale of fees or charges that the County has the authority to adjust. Each available revenue option is described in greater detail below.
Exceed Allowable Levy Increase
Waukesha County staff estimate that the value of new construction will increase by approximately 1. 4% annually between 2024 and 2030, which means that the County' s levy increase is estimated to be capped at 1. 4% per year per State law. However, counties do have the option of increasing their levy limit if a resolution is approved by the County Supervisors, and then voters approve the increase in a referendum. Referendums must specify the amount ofthe increase, whether the increase is one- time or ongoing, and the purpose for the increase. 29 Other counties in the state have requested levy increases in public referendums, with mixed responses from voters.
The following table lists examples of four recent referendums, along with the results of the votes.
Table 15: Results of Levy Increase Referendums in 2024
County
Requested Funding Duration Purpose Adopted?
Increase
Forest 2 million ( 32% of levy) Ongoing
Fund ongoing NO; failed 70/ 30
operations
Green 800, 000 ( 5%) Through 2030
Fund County- owned
YES; passed 65/35 nursing home
St. Croix 900, 000 ( 2%) Ongoing
Fund public safety YES; passed 54/ 46
positions
Washington 4 million ( 10%) Ongoing Fund Anti- Crime Plan NO, failed 56/ 44 29 Wisconsin Statutes§ 66. 0602( 4).
24 WAUKESHA COUNTY, WI
ITEM NO. 11.
Docusign Envelope ID 8463 BA3 F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Estimated Revenue
The basic rule of thumb for new levy growth in the County is a 1% increase which equals approximately$ 1 million in new revenue. Based on the expenditure and revenue trends discussed in the Financial Trend Analysis section, the County would need to increase total tax levy by approximately$ 30 million above allowable levy growth under state levy limits to close the budget gap between 2025 and 2030. Even with the infusion of additional levy dollars through a referendum, the underlying limits on levy growth would likely yield future budget gaps.
With a noteworthy history of managing budgets and minimizing taxpayer impact, the County would likely request a levy increase between 2% and 10%. The structure of the requested increase would be ongoing and cite a specific policy purpose. It is worth noting that the calculated amount of increase for the referendum would remain the same each year until ended by the Board of Supervisors or until a new amount was approved by voters in a referendum.
The base levy, inclusive of the additional ongoing referendum amount, would be subject to the net new construction growth factor each year. The following table illustrates what the estimated revenue would be with an increase of$ 3 million per year in 2025 ( 3% increase over the 2024 levy) or$ 6 million per year( 6% increase).
Revenue Generated by a 3% and 6% Increase,
2025 — 2030
160
140
120
o $ 100
80 60
40 20
2025 2026 2027 2028 2029 2030
Figure 10: Estimated Levy Increase Revenue, FY2025— FY2030 Impact on Taxpayers
The median home value in Waukesha County is estimated to be approximately $ 417, 000 in 2025, based on past trends. If the levy is increased by $ 3 million ( 3%) in 2025, the median homeowner is projected to pay $ 566 in County property taxes, which is $ 14 more than they would pay without the levy increase. Ifthe levy is increased by 6 million, the median homeowner' s taxes are projected to increase by$ 28 per year.
Vehicle Registration Fee ( Wheel Tax)
Another revenue generation option afforded to counties by the legislature is a vehicle registration fee, known colloquially as a wheel tax. The state allows counties and municipalities to enact an annual flat fee via ordinance affecting most vehicles weighing 8, 000 pounds or less. 30 There is no limit to the fee charged, but funds may only be used for transportation- related purposes.
3° Wisconsin Statutes§ 341. 35.
BUDGET TASK FORCE ANALYSIS AND FACILITATION 25
ITEM NO. 11.
Docusign Envelope ID: 8463 BA3 F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C As of June 2024, 13 Wisconsin counties along with 41 municipalities have adopted wheel taxes. The counties with wheel tax are listed below, along with their annual fee. Fees range from $ 15 to $ 30, with an average fee of$ 23.
None of the municipalities that have enacted wheel tax are in Waukesha County.
Table 16: County Wheel Tax Rates in 2024
County Wheel Tax Amount
Langlade AL $ 15
Crawford 20
Dunn M $20
Green 20
Iowa 20
Richland 20
Marathon 25
Vernon
Dane 28
Eau Claire1111111. 30
Milwaukee 30
PortageM$30
Estimated Revenue
According to the Wisconsin Department of Transportation, Waukesha County had approximately 341, 000 registered vehicles eligible for a wheel tax, as of 2023, and the number of vehicles increased by an average of 0. 7% per year between 2013 and 2023. 31 Based on these factors, a $ 30 wheel tax would generate the County approximately$ 10. 5 million per year, as illustrated in the following figure. 31 " Vehicle Registrations." Wisconsin DOT, https:// wisconsindot. gov/ Documents/ dmv/ shared/ rpt- 12- cal- 23. pdf. 26 WAUKESHA COUNTY, WI
ITEM NO. 11.
Docusign Envelope ID 8463 BA3 F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Estimated Wheel Tax Revenue, 2025 — 2030
12 10. 4 $ 10. 4 $ 10. 5 $ 10. 6 $ 10. 6 $ 10. 7
10 8
6 4
2 0
2025 2026 2027 2028 2029 2030
Figure 11: Estimated Wheel Tax Revenue, FY2025— FY2030
It is important to note that this figure assumes that the County would have at least$ 10. 5 million in transportation expenditures per year that could be funded by the wheel tax. The County' s FY2024 Transportation Fund budget is
18. 1 million, but only$ 3. 6 million is funded through levy. However, this figure does not consider capital spending on transportation projects or any deferred maintenance needs that could be funded with the new revenue.
Impact on Taxpayers
Waukesha County vehicle owners already pay$ 85 per year in state fees. If the County imposed a wheel tax of$ 30, the total cost would rise to $ 115 per vehicle. There is also the potential for costs to further increase if any Waukesha County municipalities opt to enact a wheel tax.
Sales Tax
Another option for generating additional revenue is for the County to adopt a sales tax. Wisconsin state law allows counties to adopt a 0. 5% sales tax via an ordinance passed by the County Board of Supervisors. Per state law, the tax may only be used " for the purpose of directly reducing the property tax levy," 32 which can be implemented in multiple ways, including replacing property tax levy in the operating budget; reducing borrowing for capital projects, which lowers levy- funded debt principal and interest payments in the future; or defraying the cost of budgetary items that otherwise would be funded with property tax levy. However, state law also allows for counties to " distribute all or a portion of the amount it receives to the towns, villages, cities, and school districts in the county." 33 The county sales tax rate is fixed at 0. 5% and would require state legislation to enact a different amount.
Recently the state allowed Milwaukee County to increase its tax to 0. 9% and the City of Milwaukee to enact a sales tax of 2%. 34 As of August 2024, 69 of the 72 Wisconsin counties have adopted the sales tax, including Manitowoc County' s recent adoption. The three counties that have not adopted the tax are Racine, Winnebago, and Waukesha.
32 Wisconsin Statutes§ 77. 70( 1).
33 Wisconsin Statutes§ 77. 76( 3).
34" Tax Rates." State of Wisconsin Department ofRevenue, https:// www. revenue. wi.gov/ Pages/ FAQS/ pcs- taxrates. aspx.
BUDGET TASK FORCE ANALYSIS AND FACILITATION 27
ITEM NO. 11.
Docusign Envelope ID: 8463 BA3 F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C The sales tax has been a significant source of revenue for the counties that have adopted it. The following table illustrates revenue for some benchmark counties, chosen because they have adopted the 0. 5% sales tax and because they have a population of at least 150, 000 and/ or are in the Milwaukee metropolitan area. Benchmark counties' sales tax revenue increased by between 6. 9% and 7. 7% per year between 2019 and 2023 Table 17: Sales Tax Revenue in Benchmark Counties
County
2023 Sales Tax Revenue Average Annual Change,
M 2019— 2023
Brown 38. 0 7. 5%
Dane 83. 3 7. 5%
Kenosha
11. 11 20. 4 6. 9%
Outagam ie35 25. 8 7. 6%
Ozaukee 11= 11. 6 7. 3
Rock 19. 4 6. 9%
Washington
11. 11M_$ 16. 8
11. 111.
Estimated Revenue
If Waukesha County adopted a 0. 5% sales tax and revenue trends were similar to its peers, Raftelis analysis indicates the tax could be expected to generate approximately $ 50 to $ 60 million in revenue in 2025, enough to close the projected budget gap. Alternatively, the County could petition the legislature to adopt a lower sales tax rate. This action may result in the state transitioning to a range of allowable sales tax, given the recent legislative adjustment for Milwaukee County and the City of Milwaukee.
Impact on Taxpayers
The average Waukesha County household is estimated to spend approximately $32,00036 on taxable purchases in 2025, based on Bureau of Labor Statistics ( BLS) data on purchasing patterns in the Midwest. The following table illustrates taxable expenditures by category for the median household in 2022, per the BLS. 3s Outagamie County did not adopt a sales tax until 2020. 36 Total expenditures were $ 32, 178 for the median household. in 2022; the model increases the figure to $ 35, 000 to account for inflation.
28 WAUKESHA COUNTY, WI
ITEM NO. 11.
Docusign Envelope ID: 8463 BA3 F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Table 18: Average Taxable Expenditures by Category per Midwest Household, 202237 Category Expenditures
Percent of Taxable Percent of Total
Expenditures Expenditures
Alcohol 667 2% 1%
Apparel and services 1, 757 5% 3%
Entertainment 3, 688 11% 5%
Food away from home 3, 128 10% 5%
Household furnishings and equipment 2, 754 9% 4%
Household operations 1, 592 5% 2%
Housekeeping 773 2% 1%
Personal care 813 3% 1%
Reading 111 0% 0%
Tobacco/ smoking 435 1% 1%
Transportation 11, 059 34% 16%
Utilities, fuels, and public services 1, 021 3% 2%
Miscellaneous other taxable spending 4, 380 14% 7%
Total Taxable Spending38 32, 178 100% 48%
Other non-taxable expenditures( e. g., 35, 149 N/ A 52% housing, healthcare, groceries)
If a household makes 85% ofits purchases in the County, this would translate to approximately$ 142 in additional sales tax cost per year for a 0. 5% sales tax. However, this figure does not account for the cost savings associated with property tax relief. It is also important to note that this is a general estimate based on expenditure data for the Midwest overall, not specifically Waukesha County or the Milwaukee metropolitan area.
Economic Analysis
A portion of the sales tax generated would come from non-residents spending money in the County. The exact portion contributed by non- residents is difficult to quantify, but the United States Census reports that as of 2021, 151, 673 individuals, the equivalent of approximately 37% of the County population, live outside of Waukesha County but come into the County to work. Additionally, the Wisconsin Department of Tourism estimates $ 852. 2 million in direct tourism spending in Waukesha County in 2022. 39 Ifthe sales tax had been in place, this would have translated to approximately$ 4. 3 million in sales tax revenue, or 7% of the estimated total sales tax revenue. 37" Consumer Expenditure Surveys." Bureau ofLabor Statistics, www. bls. gov/ cex/ tables/ geographic/ mean. htm. 38 Figures may not sum due to rounding.
39 " Economic Impact." Wisconsin Department of Tourism, www.industry.travelwisconsin.com/ research/ economicimpact/.
BUDGET TASK FORCE ANALYSIS AND FACILITATION 29
ITEM NO. 11.
Docusign Envelope ID 8463 BA3 F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Other Potential Revenue Generating Options
There may be other potential non-tax options to generate revenue. One consideration is opportunities to raise or implement fees to offset service costs. The County provides police and/ or fire/ EMS dispatch services for 34 communities and the Sheriff' s Department, with a budgeted operating cost of$ 7. 6 million in FY2024. The vast majority of support for this service comes from a tax levy of$ 6. 6 million. One option for generating revenue would be to apply cost- sharing obligations for participating municipalities. While this would shift some operating costs onto municipalities, the municipalities would still be benefiting from the cost savings of having a shared regional 911 center rather than having to establish and operate a standalone service. However, several municipalities entered into County dispatch understanding that it would be more efficient for taxpayers to consolidate and that no fees would be charged. Implementing a fee at this stage would be complicated.
There may also be one- time revenue opportunities available, such as selling land, facilities, or equipment. Some Wisconsin governments also generate funding by selling naming rights to County facilities. For example, in 2020, Dane County sold 10- year naming rights to its exposition center for $4. 8 million40 and Brown County sold 20- year naming rights to its exposition center for$ 10. 0 million. 41 However, these facilities are much larger than anything in Waukesha County, so the revenue generated from Waukesha County naming rights would likely not be as significant.
40 " Approving Renewal of Alliant Energy Center Naming Rights Agreement." Dane County, Dec. 18, 2019, https:// dane. legistar.com/ View.ashx?M=F& ID= 7975410& GUID= F43DB352- 9972-487D-8067- 9F6D4D2E3 2D1. 41 " Resch Secures Naming Rights for New Brown County Expo Center." WBAY, Feb. 12, 2020, www.wbay.com/ content/ news/ Sponsor-buys-naming-rights-to-Brown-County-Expo-Center-567816221.html. 30 WAUKESHA COUNTY, WI
ITEM NO. 11.
Docusign Envelope ID 8463 BA3 F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Budget Task Force
The Fiscal Health Assessment section of this report speaks to a strong history of prudent financial management by the County as well as the current and future budgetary challenges as the cost to continue operations outpace annual revenue growth. The County' s budget is rooted in resident priorities gathered as part of the Strategic Planning process. However, the budget shortfalls projected in the coming years point to a clear need to make revenue and expenditure policy decisions to help secure the County' s financial future. The County convened a Budget Task Force to advise the Board of Supervisors on how to proceed.
The Budget Task Force was comprised of a representative group of County and municipal elected officials, business leaders, and engaged residents convened to provide valuable input and direction for the future of County resourcing and service delivery expectations. The 34 members met four times in the spring and summer of 2024 to gain a better understanding of the County' s financial position, engage in meaningful conversation with fellow Task Force members that offered unique perspectives, and ultimately provide strategic direction and prioritization for the next five to 10 years for the County. A summary of the Task Force composition, topics and discussions from each session, and member recommendations for the County' s future is captured below.
COMPOSITION
The Budget Task Force was appointed by the County Executive with the goal of achieving broad representation from backgrounds, experiences, perspectives, and geographic balance across the County. Public members and business leaders brought expertise in public safety, construction and development, non-profit community organizations, and many other relevant industries. Mayors from four municipalities within the County as well as six County Supervisors, were also part ofthe Task Force and brought expertise in governance and municipal and County financial decision- making. A complete list of Task Force members is provided below.
BUDGET TASK FORCE ANALYSIS AND FACILITATION 31
ITEM NO. 11.
Docusign Envelope ID: 8463 BA3 F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Table 19: County Budget Task Force Members
Mem bers
Supervisor Larry Bangs
Supervisor Wayne Euclide
Supervisor Brian Meier
County Supervisors
Supervisor Chris Mommaerts
Supervisor Gary J. Szpara
Supervisor Jeremy Walz
Mayor Bob Magnus— Oconomowoc
Mayor Rick Petfalski— Muskego
Municipal Elected Officials
Mayor Steve Ponto— Brookfield
Mayor Shawn Reilly— Waukesha
Pete Bacon
Lisa Bruce Mark Nelson
Mary Dietz Amanda Payne
Matt Fennig Heather Pfalz
Dean Frederick Renne Ramirez
Public Members/ Business
Jeff Hoffmann Joe Reider
Leaders
Buck Jurken Jeffery Searle
Laura Krohn Jeremy Smith
Bonnie Lee Stan Sugden
Angela Mancuso Tom Schreibel
Germaine McKenna John Siepmann
Danny Merkt Susan Van Aartsen
Matt Moroney
SESSION 1: SETTING THE STAGE - DEVELOPING VALUES AND SERVICE PRIORITIES The first Task Force session focused on setting the stage for the group' s work to inform and make recommendations about the County' s future, given the budgetary challenges. Before providing relevant financial and economic context, Task Force members introduced themselves and shared one word that captured their sentiment about participating in the Task Force. Member one- word responses are captured below, with bolded words shared by multiple members.
Open Ready
Interested Intrigued
Excited Eager
Humbled Unbreakable
Curious Lead
Optimistic Confident
Future Hopeful
Expectant Learning
After introductions, Raftelis provided an overview of the Task Force timeline and budgetary challenges facing the County. As described in greater detail in the Fiscal Health Assessment section, the Task Force was brought together to understand the County' s financial outlook over the next five to 10 years. The County' s budget outlook projects a budget gap, where anticipated revenue collections are not expected to cover the anticipated cost to continue providing the same level of services provided by the County today. The theme ofthe discussion was " the solution is not complicated, but the decisions are hard." 32 WAUKESHA COUNTY, WI
ITEM NO. 11.
Docusign Envelope ID 8463 BA3 F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C As part of the project scope, Raftelis developed an independent financial model using the County' s financial data.
We evaluated the County' s financial management policies against industry best practices and the firm' s experience providing financial services for local government and public- sector utilities across the Country. Task Force Members were provided relevant context that emphasized how well managed the County' s finances are and the underlying economic conditions that have created the fiscal challenges that lie ahead.
Property taxes are the single largest local tax source to fund service delivery, and the largest driver of the County' s financial challenges is state restrictions on property tax levy growth. While the revenue tax base is among the strongest in Wisconsin, state policy ties the amount of property tax revenue growth that can occur annually to the growth in net new construction. Since the Great Recession, historically, this growth has averaged less than two percent per year. In comparison, the BLS reports that inflation grew by an average of 3% per year between 2010 and 2024. 42 Further, many of the County' s cost drivers exceed the Consumer Price Index reported by the BLS, including health insurance and the cost of software contracts.
Based on recent trend analysis, the financial model assumes growth of 1. 4% annually. This growth curve is far less than the underlying property value growth over the same period. Capped revenue growth requires prudent expenditure control; however, recent inflationary and wage pressure has resulted in a growing divide between revenue generation and cost to continue. As a result, the County has faced budget gaps annually as part of the budget development process that has required service- level reductions or strategic use of one- time funds to meet balanced budget requirements.
After level setting the County' s financial condition, the primary objective of the first session was to understand the Task Force member values and service area priorities. This important framework would then be used in subsequent sessions to help guide discussion and inform recommendations.
Values
Members were given a handout of 11 common values from Raftelis with space to add new values. The discussion began with determining whether any values were missing. The group agreed the 11 values largely captured what they would expect and discussed the sequencing ofvalues versus desired outcomes like quality oflife and customer satisfaction. In small groups members discussed the criteria they used to select values and which values best align with the County' s future. After the discussion, each member was given three dot stickers to indicate their values.
The top four values, all earning more double- digit votes, are reflected below.
Consumer Price Index Inflation Calculator." BLS, hups:// data.b1s. gov/ cgibin/ cpicak.pl?costl= 1. 00& vearl= 20100 1& year2= 202401.
BUDGET TASK FORCE ANALYSIS AND FACILITATION 33
ITEM NO. 11.
Docusign Envelope ID: 8463 BA3 F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Public Safety 26
Infrastructure Stability 17
Quality of Life 17
Fiscally Responsible and Financially Viable 15
Sustainable Infrastructure 4
Fairness = 2
Sustainability = 2
Operational Optimization ( or Efficiency) 1
Customer Satisfaction 0
Flexibility 0
Transparency 0
Figure 12: Task Force Value Voting Results
Service Area Priorities
After discussing and voting on values, the Task Force evaluated potential service level reductions to help mitigate the funding shortfall. Raftelis discussed at a high level how the $ 391 million budget breaks down into service areas that the County can impact or effect change to meet balanced budget requirements. The largest source of revenue— intergovernmental revenue from the state— is almost entirely designated for specific mandated services. Tax levy revenue of$ 115 million is where the County has greater control; however, more than one- third supports mandated services. This leads to approximately$ 38 million in service level costs that could be reduced in order to address the projected budget gap.
Ahead of Session 2, members were given a list of common service areas for the County and asked to discuss in small groups how they might prioritize some of these services for reduction, along with any services they would like to see additional resources allocated. Each group provided a summary of their conversation. Then individual members were asked to vote on their service priorities, using six red stickers for services to reduce and six green stickers for services to enhance. Members were required to use all of their service level reduction votes but did not have to use all of the service level enhancement votes. The results of the voting are captured in the table below, sorted by " net" votes. A negative Q net vote indicates greater prioritization for service level reduction compared to a positive net vote indicating prioritization for service level enhancement. 34 WAUKESHA COUNTY, WI
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Table 20: Task Force Service Priority Voting Results
Service Area Votes to Reduce
Votes to
Net" Votes
Enhance
County- wide Communication Ell (21) 0
iMIII
Land Use 18) 0 18)
Grounds Maintenance mile. ( 17) 1 if
Substance Abuse Treatment 16) 0 16)
Talent Acquisition ( Recruiting) ( 13) iJ 71I
Public Health 12) 1 11)
Drug Prevention MI (13) it it
Emergency Preparedness 11) 2 9)
Debt Borrowing1 J HI ii ri
Parks and Open Space 6) 2 4)
911 Communications Mll l " ii
Employee Benefits 3) 1 2)
Law Enforcement( Patrol
Operations) 19i1= 1
ii ri
Traffic Safety 4) 3 1)
Crime Investigations 1 ii ri
Maintaining County Facilities 2) 2 0
Corrections( Jail) II iJ`:
Mental Health Support 3) 8 5
Well- maintained Roads
Including in the Winter)
Court Operations 1) 8 7
Support for Vulnerable
9 Populations( Elderly, Disabled)
Infrastructure Development 3) 12 9
Economic Development mow 14 13
SESSION 2: SERVICE LEVEL REDUCTIONS
The second Task Force session focused on expenditure reductions as a strategy to close the projected budget gap.
The values and service reduction priorities developed during the first session were used to help guide discussion for service level reductions. The Task Force was presented with their target goal of achieving approximately $ 30 million in expenditure savings to close the projected budget gap through 2030. The consulting team worked with County staff to identify $ 12. 7 of potential expenditure reductions to initiate the exercise and get feedback on the prioritization of cuts.
BUDGET TASK FORCE ANALYSIS AND FACILITATION 35
ITEM NO. 11.
Docusign Envelope ID: 8463 BA3 F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Service Level Adjustments
Before diving into the details of potential service reductions, the facilitators provided context about the various layers of service level reductions. The process of identifying expenditure reductions can be nuanced and timeconsuming. For this reason, annual budget development takes at least nine months of the year. When assessing service reductions there are multiple layers, with most organizations opting to choose reductions that result in the least amount of impact on residents or constituents. Most of the 200+ programs/ subprograms and services provided by the County contain value- added, core, and mandated components. Often service- level reductions focus on community prioritization of value- added services and avoid core service reductions. Mandated services are legally required and cannot be eliminated, though they may be trimmed to levels that make carrying out the services increasingly difficult. The pyramid of service level adjustments is used to identify and consider required versus desired service levels for County residents within the finite pool of resources available. The figure below provides definitions for each of the service- level components.
Service Level Adjustments
Supplementary services provided in addition to `,.
core functions. designed to enhance quality of
life, improve efficiency, and support economic
development Value- added
I
F
Essential functions and services
provided to ensure well- being. safety,
and effective functioning of the
community Core -1
Legally required to
provide, established
through law, regulations,
Mandate d
or directives from higher
levels of government/
Figure 13: Service Level Adjustment Pyramid
Value- Added Service Level Reductions
To begin evaluation of service level reductions, the Task Force was provided a handout that summarized their prioritization of the service areas presented in Session 1 with potential service level impact for further reductions and estimated value- added cost savings. The table below summarizes each of the service areas considered for reduction, sorted by net score, where a negative value indicates greater prioritization for reduction and a positive value indicates prioritization for additional resource allocation to enhance existing service levels. The estimated cost savings for all value- added service reductions was approximately $ 12. 7 million, or 42% of the budget savings target of$ 30 million.
36 WAUKESHA COUNTY, WI
ITEM NO. 11.
Docusign Envelope ID: 8463 BA3 F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Table 21: Value- added Service Level Reductions
Net Estimated
Service Reduction
Score
Service Level Impact
Savings
County- wide Communication ( 21) Messaging, lack of coordination, reactive communication, minimal $ 270, 000
community engagement, emergency comms
Land Use 18)
Delayed development permitting and customer satisfaction and 415, 000
increased cost to applicants
Grounds Maintenance 17) Aesthetic decline, health hazards, decreased property values 370, 000 Drug PreventionlSubstance
14)
Higher healthcare costs, overcrowded treatment facilities, public 220, 000
Abuse Treatment43 safety impacts
Talent Acquisition 12)
Longer vacancies, poor candidate quality, broad decline in public $ 100, 000 service delivery
Public Health 11)
Health disparities for vulnerable populations, inadequate health 1, 000,000
surveillance and emergency response
Emergency Preparedness 9) Delayed crisis management response, prolonged recovery 160, 000 Parks and Open Space 4)
Limited access, lower quality of life, reduced air quality, removes $ 110, 000
community meeting space, Muskego Park closure
911 Communications 3)
Higher overall cost to taxpayers due to loss of economies of scale $ 4, 800,000
and duplication at the municipal level
Fewer sworn staff resulting in less traffic enforcement and Public Safety Staffing44 1) investigation, decreased quality of life, reduced deterrent, 2, 000,000 increased OT, and deputy quality of life decline
Infrastructure Maintenance Higher taxes due to interest expense on higher debt levels and and Development45
5 significant increases in asset life cycle cost
3, 000, 000
Economic Development 13
Business growth stagnates, fewer job creation and business 250, 000
retention initiatives
Task Force members spent time individually reviewing the value- added service level reductions and then joined small groups to discuss and evaluate which reductions they would like to propose toward the budget gap target of 30 million. To guide the conversation, members were provided a scorecard with three of the four Task Force values: public safety, infrastructure stability, and quality of life. The fourth value, fiscally responsible/ financially viable, was omitted since any cost savings would contribute to this value. For the remaining three values, members were asked to evaluate each reduction using that value lens and assign a ranking of one to three. One indicated low impact, two indicated neutral impact, and three indicated high impact. The scale ofranking for a given reduction could range from three ( scoring one on all three values) to nine( scoring three on all three values), with a higher total value score reflecting less desire to pursue the reduction. A high-level summary of the service level reduction exercise is provided below:
44 Services were combined from Session 1 with an average net score reflected.. Public safety staffing includes law enforcement, traffic safety, and crime investigation services. 45 Infrastructure maintenance and development includes maintaining County facilities, well- maintained roads, and infrastructure development.
BUDGET TASK FORCE ANALYSIS AND FACILITATION 37
ITEM NO. 11.
Docusign Envelope ID: 8463 BA3 F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C There are low-priority service areas that could be reduced, such as County-wide communications, land use, grounds maintenance, drug prevention and substance abuse, and talent acquisition.
Some reductions like 911 dispatch services may help the County' s budget but merely shift ( and likely increase) costs to municipalities.
The County should evaluate where duplicative services with municipalities happen to assess opportunities for consolidation or reimagining service delivery.
The service level prioritization exercises in Session 1 and Session 2 provided an opportunity to compare how the County spends tax levy revenue with the Task Force priorities. The figure below depicts how one dollar of tax levy is spent across each of the functional areas in the County and includes the prioritization ( net score total) for services that fall within that functional area. Overall, the Task Force routinely prioritized service areas where the County allocates most of its tax levy dollars, showing strong alignment between County operations and community priorities.
240 9e
410 Health and 240 Parks, Env., Educ., 2C
Justice and Public Safety Human Services Infrastructure Land Use Other F ' t, IMUNI E I) STATES O1'.% NI I1. 1? ,'
1 y 16 G 1
d w^
fff
4 - L11180916G
ii
t, -
12 rae.. , su
o 12
1 p ON 16I0 4 C--1
i 4 1
15" net" votes 13" net" votes 24" net" votes 39 net votes 35 net votes. to reduce to reduce to enhance to reduce to reduce
Figure 14: Task Force Service Prioritization and County Tax Levy Spending It is important to note that participants used all their reduction votes but not all of their enhanced votes, so the sum of net votes is negative. Justice and Public Safety and Health and Human Services had lower net reductions than other categories, indicating prioritization.
38 WAUKESHA COUNTY, WI
ITEM NO. 11.
Docusign Envelope ID 8463 BA3 F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Core Service Level Reductions
After the value- added service level reduction exercise, the conversation moved to Core services, the next layer of the pyramid. The County has faced preliminary budget gaps since at least the Great Recession and state- imposed revenue caps on levy growth. The exercise the Task Force went through to identify service level reductions or opportunities to achieve greater efficiencies mirrored the work of the County over the past decade. The underlying structural imbalance between revenue and expenditure growth patterns means that opportunities for value- added expenditure reduction options continue to diminish, leading to core service area reductions to meet balanced budget requirements. While economic conditions will continue to shift over time, the current environment has placed significant cost pressures on service delivery. To mitigate otherwise immediate and adverse impacts for highly prioritized services like public safety and infrastructure maintenance and development, the County has relied on one- time revenue sources in the short run to balance the budget with plans to phase in future ongoing revenue support after one- time sources are no longer available. However, the ability to phase in costs is getting more difficult as scarce levy growth is needed to meet other budget gaps.
Session 2 wrapped up with a discussion about the difficulty of having adequate context and details to inform service level reductions in a short period of time. This is especially true for core services that have mandated requirements. The session ended with a preview of the revenue- generating options to be considered in Session 3.
SESSION 3: REVENUE GENERATING OPTIONS
The third Task Force session focused on revenue- generating options to close the projected budget gap. The project team, along with County staff, assessed available options for new revenue allowed under state law and presented the Task Force with important context and analysis for each option. This included requirements to enact new revenue sources, benchmarking analysis of various counties or municipalities in Wisconsin that have enacted such sources, and fiscal impact to the County and taxpayers. Details of each revenue- generating option are included in the Gap Closure Scenario section above.
Revenue Generating Options —Advantages and Disadvantages After presenting each of the revenue- generating options to the Task Force, members engaged in a discussion regarding the advantages and disadvantages of each option, with a particular focus on exceeding the levy limit and wheel tax options. While the group exercise for sales tax focused on structure, key themes from Task Member group discussions and individual voting related to this tax option are also captured in the table below.
BUDGET TASK FORCE ANALYSIS AND FACILITATION 39
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Table 22: Advantages and Disadvantages of New Tax Revenue Options Revenue
Estimated
Rpt
ev
Revenue Advantages Disadvantages
Generated, 2025
Would not be likely to fully
Taxpayers have a say in whether
address the budget gap
Referendum would be required
to increase revenue
for any changes— unlikely to Raises awareness of County achieve broad support, high risk budget issues
3 to$ 6 million Use of funds can be specifically
of failure
targeted Frequency of school referendums
Referendum for might detract voter support
Levy Increase ongoing lump More stable source of revenue, sum
All funding would be contributed levy once approved would remain in increase) place
by property owners, with limited
Nocontribution restriction on the amount of from non- residents who use County services increase( pending voter approval) Would require significant
or on how the funding is used
information campaign ahead of
Low per- household impact
the vote about a topic that can be
hard to message
Could be enacted by the County
Board
Can only be used for
No restriction on fee amount,
transportation purposes
though typical annual amounts
Would not fully address the
are relatively small ( i. e.,
budget gap ( minimal impact)
affordable)
10. 5 million
Raises revenue from more
Revenue does not grow with
Wheel Tax inflation ( tied to population and
people than property owners 30 per vehicle) number of vehicles) e. g., user tax)
Unpopular" tax" among residents, Creates higher funding potential mandated by the government for road/ infrastructure No out-of-County taxpayers maintenance, a high priority of the Task Force No voter say
Easy for public to understand
Sales taxes are regressiveAllows non- residents who take larger impact on lower- income
individuals
advantage of County services to
contribute to the cost of those
The amount of the sales tax is
fixed and cannot be increased or
services
50 to$ 60 million Would generate enough revenue
decreased ( without a legislative
Sales Tax to fully address the budget
change)
0. 5% sales tax) shortfall
Adverse impact to the business
Would allow for some property
community
tax relief
Brings in more revenue than is
Could be enacted by the County
needed
May lose sight of other revenues Board
or operational efficiencies over
time
40 WAUKESHA COUNTY, WI
ITEM NO. 11.
Docusign Envelope ID 8463 BA3 F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Before breaking into small groups to discuss the sales tax structure, Raftelis shared additional context related to enacting a sales and/ or wheel tax among other counties in the state. The chart below shows the historical timeline of when counties throughout the state chose to enact a sales and/ or wheel tax. Many counties moved forward with a sales tax as soon as the option was made available to them by the state( 1986- 1995). During the economic boom of the early 2000s, little activity occurred, followed by more counties exercising a wheel tax after the 2011 state legislation limiting property tax levy growth and the fiscal challenges associated with the Great Recession and Global Pandemic. The ability of Waukesha County to have weathered the recent economic challenges without either of these new revenue- generating options, when nearly all counties elected one if not both, speaks to their level of operational efficiency.
12 tilt
10 8
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4 2
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ry `' ' ' c4°$ 5S d ° `' 50 hc4, Pa^oo,, o`" oApiao``'a oeo`era dyo&' d0' g ti ti ti ` L ti ti ti ti n. ' L ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti Sales Tax - Wheel Tax
Figure 15: Sales and Wheel Tax Timeline- Adoption by Year Sales Tax Structure
The Task Force then spent time in small groups discussing how they might structure a 0. 5% sales tax, knowing that it would generate revenue for the County beyond what is needed to close the budget gap over the next few years.
As required by the state and prioritized among County officials, some of the revenue would be used to directly reduce the property tax levy for residents. Beyond that, Task Force members were asked to brainstorm and discuss other opportunities that aligned with the values and service level priorities developed in Session 1.
Two somewhat competing themes emerged from this activity:
While there is general understanding and support for new revenue, there is a preference not to collect more than the County' s estimated budget gap. Throughout the project team' s review of County financial practices and then during conversations with County staff and Task Force members, there is great pride in the County' s ability to efficiently deliver services with the lowest impact possible to taxpayers. Low percapita spending rates and continuing to " sharpen the pencil" are valued characteristics of the County' s financial management policies. Many Task Force members did not like that the sales tax amount is currently fixed at 0. 5% by state law. They understood it would require lobbying the state for greater autonomy over how much sales tax to enact but acknowledged such a preference.
BUDGET TASK FORCE ANALYSIS AND FACILITATION 41
ITEM NO. 11.
Docusign Envelope ID: 8463 BA3 F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Municipalities in the County face similar budgetary challenges and would support the County' s desire to enact a sales tax. The funding mechanisms for municipalities in Wisconsin follow a similar pattern to County revenue sources. As such, municipalities continue to face significant fiscal constraints with limited ability to increase the property tax levy. This is especially true for municipalities that are largely built out and focused on redevelopment because of the net new construction limitations. Municipal and County leaders on the Task Force informed members of the inherent challenges of lobbying the state for higher Shared Revenue when they had not yet enacted other revenue options available to them. They also added that a new revenue source might actually encourage greater economic development and improvements to the housing stock.
A summary of each group' s discussion regarding a sales tax structure is provided below.
Table 23: Summary of Sales Tax Structure Considerations Group How to Use or Structure Additional Revenue Generated from 0. 5% Sales Tax Economic Development— small business grants, facade improvements, Group 1
municipal downtown revitalization
Waukesha County Technical College Public Safety Academy to assist with recruiting pipeline and public safety operations
Seems like too easy of a fix
Lose sight of other revenues and efficiencies— ability to sharpen the pencil Group 2 A nice structure might be 60% to County, 40% to municipalities Within the County' s 60%, does as needed but includes direct property tax relief
Acknowledged the group had different perspectives
Municipal leaders in the group like 60% to the County and 40% to the Group 3 municipalities
Other emphasized the importance of a direct property tax offset and not inventing new things to spend money on
Many in the group were not favorable of raising more dollars than needed Group 4
Additional revenue could pay down debt, which also lowers property tax levy Investment in public safety, infrastructure, and amenities like bike and walking paths
Shouldn' t tax for more than is needed, would prefer a process that looks at expenditure reductions, user fees, surplus carryover, reforms, excess property sales, and then revenue enhancements
Group 5 If revenue enhancement is required, they agreed sales tax was the preferred method but would like to ask for only what is needed
Acknowledged the business community would not like the impact of a sales tax
Preferred requesting something less, realizing the odds of achieving this with the state legislature and other counties would be difficult Group 6
A shared revenue with municipalities tied to public safety, expansion of the jail knowing it is reaching capacity, and infrastructure investments Opportunities for assisting municipalities with transitioning to full- time firerescue services.
SESSION 4: GUIDANCE FOR COUNTY EXECUTIVE AND BOARD OF SUPERVISORS The goal of the last Task Force session was to provide the County Executive and County Board of Supervisors guidance on how to navigate the County' s fiscal challenges over the next decade. Raftelis led a review of the key themes that emerged from the first three sessions and shared with the Task Force the scenario voting results from Session 3.
42 WAUKESHA COUNTY, WI
ITEM NO. 11.
Docusign Envelope ID: 8463 BA3 F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Scenario Prioritization Voting Results
Task Force members who were not present at the third meeting were also able to offer feedback on the same questions via an online survey. A total of 29 individuals provided comment, including 27 who were present at the meeting and two who were not present. The following sections summarize the results of these polls. More detailed responses by statement are included as Appendix A.
Feedback on the County' s Overall Strategy Moving Forward Participants were given several statements about Waukesha County' s overall strategy to address the budget shortfall moving forward. They were asked to rate their level of agreement on a scale from one( least agreement) to 10( most agreement). The statements were as follows:
Service Reductions: The County should focus on service reductions and expenditure cuts to address the budget shortfall.
New Revenue: All revenue options available to the County should be explored.
Service Reductions and New Revenue: The County should explore new revenue options and continue to reduce ongoing expenditures.
All three strategies had strong support from participants, with an average agreement rating of more than seven out of 10. The service reduction strategy had the lowest average approval, and the balanced strategy had the highest, as illustrated in the figure below.
Average Agreement Rating by Strategy
9 8 7. 52
7. 86
7. 21
7 6
5 4
3 2
1 0
Service Reductions New Revenue New Revenue and Service
Reductions
Figure 16: Average Task Force Agreement Rating by Strategy to Address Budget Gap Participants were also asked about their agreement with the statement, " The County' s current budget is aligned with my funding priorities." The average rating was 6. 69, with only two participants( 7%) rating their agreement as less than a five out of 10.
BUDGET TASK FORCE ANALYSIS AND FACILITATION 43
ITEM NO. 11.
Docusign Envelope ID 8463 BA3 F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Feedback on Revenue Generation Options
Participants were asked to rate their agreement with the following options for generating additional revenue:
Implementing a 9- 1- 1 fee
Putting forth a referendum to raise the levy limit
Implementing a sales tax
Implementing a wheel tax
Of the four options, only the sales tax had an average agreement rating of more than five out of 10, as illustrated in the figure below. The sales tax agreement represents the maximum level of agreement- specific sales tax options are discussed in the subsection below.
Average Agreement Rating by Revenue
Generation Option
6 - 5. 55
5 - 4. 55
4 -
3. 04
3 2. 55
2 1
0 Referendum Wheel Tax 9- 1- 1 Fee Sales Tax
Figure 17: Average Task Force Agreement Rating by Revenue Option Sales Tax Strategy Options
Participants were asked to react to a series of statements with options for a sales tax if implemented. Options included:
Petitioning the State Legislature to allow the County to enact a sales tax of less than 0. 5% Using the sales tax for property tax relief
Using the sales tax for property tax relief and economic development in the County Using the sales tax for property tax relief and aid to municipalities for economic development Using the sales tax for property tax relief and aid to municipalities for infrastructure Using the sales tax for property tax relief and aid to municipalities for public safety Using the sales tax for property tax relief and general aid to municipalities Two options, offering general aid to municipalities and petitioning the Legislature to allow a lower sales tax, had average levels of agreement of more than 6. 5, as illustrated in the figure below. The lowest average levels of agreement were with options that would provide funding for economic development efforts. 44 WAUKESHA COUNTY, WI
ITEM NO. 11.
Docusign Envelope ID: 8463 BA3 F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Average Approval Rating by Sales Tax Option
8 7
6. 59 6. 72
6 5. 48 5. 55
5. 07
5 4.14
4 3. 68
3 2
1 0
County Economic Infrastructure Public safety Sales tax with General aid to Less than 0. 5% economic development aid to aid to property tax municipalities development aid to municipalities municipalities relief municipalities
Figure 18: Average Task Force Agreement Rating by Revenue Option It is important to note that there were significant levels of disagreement among participants on many of these options. For example, while 45% of respondents generally agreed( rating of six or higher) with the statement, " The County should consider implementing a 0. 5% sales tax that funds local property tax relief and provides aid to local municipalities for infrastructure," another 41% generally disagreed ( rating of four or lower). Additionally, 48% agreed with the statement, " The County should consider implementing a 0. 5% sales tax that funds local property tax relief.," while 38% disagreed. The specific agreement by statement is illustrated in Appendix A.
Task Force Key Themes
After reviewing the takeaways from the first three sessions, Raftelis identified the key themes that emerged from the facilitated sessions and asked members of the Task Force to review and identify if anything was missing or should be changed. Members in attendance agreed that the five themes presented below largely captured the group' s work.
After reaching a consensus on each key theme, Task Force members were asked to write down on a sticky note the most important message they would like to convey to the County Executive and Board for each theme. Individual thoughts were then collected and grouped by theme. After that, members broke into groups, with one group per theme, tasked with reviewing the individual notes from fellow Task Force members and then drafting a statement that reflected the message for that theme. Individual notes are reflected in Appendix B, and the group statements for each key theme are provided below.
Importance of fiscal responsibility
Continue to focus on measurable cost- cutting, and efficiency improvements and publicize wins.
Push the state for equitable funding and release of some portion of surplus funds to counties and municipalities.
Continue actions to maintain Aaa/ AAA bond rating and other fiscal processes and checks and balances.
BUDGET TASK FORCE ANALYSIS AND FACILITATION 45
ITEM NO. 11.
Docusign Envelope ID 8463 BA3 F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Targeted budgetary service level reductions and enhancements Allocate funds to preserve the services most valued by the community:
o Public safety
o Infrastructure
o Potential shared services
Eliminate the expansion of services for the sake of spending projected surplus from sales tax, etc.
Desire to explore revenue options
There is an appetite for a sales tax of 0. 5% to a minimum of what is needed to balance the budget.
The " Waukesha Way" needs to be honored by utilizing grants, collaboration, and all other revenue options and savings that are currently being used during tight budget times.
There is recognition that extra sales tax revenue can be shared with local municipalities to address similar budgetary issues.
Support for infrastructure and economic development
All commenters but 2 indicated it is an essential priority. 1 indicated infrastructure development should favor commercial development. 1 indicated that if the sales tax went to debt reduction, then the future of infrastructure development would be more economical.
Overall, the answers were that infrastructure development is something that should not be reduced but that it needs to be maintained or increased.
Evaluate shared services and shared revenue
There is support for the concept of shared services among similarly sized communities, recognizing that larger communities like Brookfield have higher service expectations due to their advanced infrastructure.
This difference in service levels can present challenges in partnerships with smaller communities. As an example, the City of Brookfield can respond to an accident within five minutes of notice at any location within the city.
Shared revenues are also essential to address the universal structural funding challenges faced by local municipalities. While a sales tax is a short- term solution, it is the most viable alternative to raise revenue in the current environment. It is imperative that the state legislature develops a sustainable funding model that provides local governments with more flexibility.
At the conclusion of the Task Force session, the County Executive thanked each of the members for their commitment and dedication to this important work. Members were notified that Raftelis would present the results of the fiscal health assessment and Task Force work to the County Board of Supervisors at the end of August at which time the final report would be shared with the Board and Task Force. 46 WAUKESHA COUNTY, WI
ITEM NO. 11.
Docusign Envelope ID 8463 BA3 F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Conclusion
Waukesha County has a longstanding history of prudent financial management and efficient use of taxpayer resources to provide valued services to residents. County staff are to be commended for their ability to accurately forecast service needs alongside available resources. State- imposed growth restrictions on the largest local revenue source— property tax levy— have led to increased fiscal constraint, especially in the past five years as the County has grappled with an increasing cost to continue providing services that exceed annual revenue growth. Despite these challenges, the County has effectively managed to meet service level expectations with the lowest per capita spending levels in the state. 46
Future financial projections indicate the need for more extensive policy actions to balance resident service priorities with fewer available resources. The Budget Task Force was created to provide guidance and direction for the County' s financial future over the next decade. The work they conducted over the course of four in-person sessions reflects their dedication and commitment to the County' s future success. The key themes that emerged from the Task Force helped to both build awareness within the community about the fiscal realities the County faces and provide invaluable policy guidance for the County Executive and County Board of Supervisors as they weigh critical policy decisions in the near term that will chart a path to financial sustainability in the long- term. 46 Forward Analytics, The Green Book, A Book of County Facts, 6th Edition. 2023. https:// www. forwardanalytics.net/ wp _ Atent/ uploads/ 2023/ 09/ Waukesha-County-Insert.pdf.
BUDGET TASK FORCE ANALYSIS AND FACILITATION 47
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C This page intentionally left blank to facilitate two- sided printing. 48 WAUKESHA COUNTY, WI
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C APPENDIX A.
Scenario Prioritization
Voting Results
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C The following figures illustrate the distribution of responses for statements about options for addressing the budget gap. A total of 29 individuals provided feedback. All statements are rated on a scale from one ( least agreement) to 10( most agreement).
Feedback on the County' s Overall Strategy Moving Forward I believe all revenue options available to the
County should be explored.
10 9
8 7
6 5
4 3
2 0
1 2 3 4 5 6 7 8 9 10
Figure 19: Task Force Agreement Rating on New Revenue
The County should focus on service reductions
and expenditure cuts to address
the budget shortfall.
12 10
8 6
4 1
1 2 3 4 5 6 7 8 9 10
Figure 20: Task Force Agreement Rating on Service Reductions 50 WAUKESHA COUNTY, WI
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C The County should explore new revenue options
and continue to reduce ongoing
expenditures.
12 10
8 6
4 Mil III ;
1 2 3 4 5 6 7 8 9 10
Figure 21: Task Force Agreement Rating on New Revenue and Service Reductions The County' s current budget is aligned with my
funding priorities.
8 7
6 5
4 3
2 1 2 3 4 5 6 7 8 9 10
Figure 22: Task Force Agreement Rating on the Current Budget BUDGET TASK FORCE ANALYSIS AND FACILITATION 51
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Feedback on Revenue Generation Options
The County should explore implementing an
annual service fee to fund 9- 1- 1 dispatch
operations.
8 7
6 5
4 3
2 1 2 3 4 5 6 7 8 9 10
Figure 23: Task Force Agreement Rating on a 9- 1- 1 Fee The County should consider proposing a
referendum to exceed the levy limit in
order to address the budget shortfall.
12 10
8 6
4 2I 0 I • I
1 2 3 4 5 6 7 8 9 10
Figure 24: Task Force Agreement Rating on a Levy Increase Referendum 52 WAUKESHA COUNTY, WI
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C The County should consider implementing a
wheel tax to address the budget
shortfall.
9 8
7 6
5 4
3 2
1 0
1 2 3 4 5 6 7 8 9 10
Figure 25: Task Force Agreement Rating on a Wheel Tax
Feedback on Sales Tax Strategy Options
The County should consider implementing a . 5%
sales tax that funds local
property tax relief.
6 5
4 3
1 0
1 2 3 4 5 6 7 8 9 10
Figure 26: Task Force Agreement Rating on a Sales Tax that Funds Property Tax Relief BUDGET TASK FORCE ANALYSIS AND FACILITATION 53
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C The County should lobby the state legislature to
allow for a sales tax less than . 5%.
16 14
12 10
8 6
4 0
2 II
1 2 3 4 5 6 7 8 9 10
Figure 27: Task Force Agreement Rating on a Sales Tax of Less Than 0. 5% The County should consider implementing a . 5%
sales tax that funds local
property tax relief and provides general aid to
local municipalities.
9 8
7 6
5 4
3 2
1 2 3 4 5 6 7 8 9 10
Figure 28: Task Force Agreement Rating on a Sales Tax that Funds Property Tax Relief and General Municipal Aid
54 WAUKESHA COUNTY, WI
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C The County should consider implementing a . 5%
sales tax that funds local
property tax relief and provides aid to local
municipalities for infrastructure.
9 8
7 6
5 4
3 2
0 1 2 3 4 5 6 7 8 9 10
Figure 29: Task Force Agreement Rating on a Sales Tax that Funds Property Tax Relief and Municipal Aid for Infrastructure
The County should consider implementing a . 5%
sales tax that funds local
property tax relief and provides aid to local
municipalities for public safety.
8 7
6 5
4 i
3 2
1 1 2 3 4 5 6 7 8 9 10
Figure 30: Task Force Agreement Rating on a Sales Tax that Funds Property Tax Relief and Municipal Aid for Public Safety
BUDGET TASK FORCE ANALYSIS AND FACILITATION 55
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C The County should consider implementing a . 5%
sales tax that funds local property tax relief and
provides aid to local municipalities for economic
development.
10 9
8 7
6 5
2 . i . iiii
1 2 3 4 5 6 7 8 9 10
Figure 31: Task Force Agreement Rating on a Sales Tax that Funds Property Tax Relief and Municipal Aid for Economic Development
The County should consider implementing a . 5%
sales tax that that funds
local property tax relief and assists with
economic development.
9 8
7 6
5 4
3 1
0 1 2 3 4 5 6 7 8 9 10
Figure 32: Task Force Agreement Rating on a Sales Tax that Funds Property Tax Relief and Economic Development
56 WAUKESHA COUNTY, WI
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Feedback on the Process
This process has helped me better understand
the County' s financial
picture.
8 7
6 5
4 3
2 1
1 2 3 4 5 6 7 8 9 10
Figure 33: Task Force Agreement Rating on the Effectiveness of the Task Force Process BUDGET TASK FORCE ANALYSIS AND FACILITATION 57
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C This page intentionally left blank to facilitate two- sided printing. 58 WAUKESHA COUNTY, WI
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C APPENDIX B:
Task Force Member Comments
by Key Theme
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C The following table captures the individual Task Force member comments for each of the five key themes identified. The comments are transcribed verbatim from the last session.
Task Force Member Comments by Theme
Importance of Fiscal Responsibility
Use shared revenue to pay down debt and reduce County property tax. Leads to County budget that will not grow as fast due to inflation and increased costs as debt payment will significantly decrease.
First and foremost[ value] in running the County and formulating budgets.
County should not collect more than needed to close critical services gap. Need to continue to lobby state to fix shared revenue and modernize property[ tax] caps.
I believe the County is already fiscally responsible.
Push Madison for more funding.
How best to address budget excesses— Why do they occur, can budgets be more precise, how best to use excess dollars at end of year.
Maintain existing standard of fiscal responsibility, which allows us to provide/ maintain a high level of services.
The County should" sharpen the pencil" as required.
Elected messaging; inherent by past decisions; current State communication; our County versus other similar county.
Caution— The relief created by Sales Tax option could take focus off of need to constantly look for reduction options.
Do not grow government.
I believe County and municipal service levels are generally appropriate and would try to avoid major cuts.
What does the future look like when we experience another budget shortfall in spite of a sales tax? The] Waukesha Way is to emphasize fiscal restraint and only introduce a new tax as a last resort and only to the extent needed. Tools to use first: 1) use previous surplus; 2) sell surplus property; 3) increase user fees; 4) cut in shortage; 5) look for efficiencies( shared services).
Maintain the AAA bond rating. Continue to be prudent with taxpayer resources.
The Waukesha Way is to solve our fiscal problems through responsible spending. Sharpen the pencil.
Should always be a priority under every revenue generation scenario.
Focus on fiscal responsibility doesn' t include generating more revenue than needed.
How do we control size of government with so much money available? Maintain.
Targeted Budgetary Service Level Reductions and Enhancements Have municipalities pay the cost of shared dispatch.
Big on collaboration of shared services. Is it the County' s job to provide revenue to municipalities? Would like to see each department heads] ideas on cost reductions. Also need administrative infrastructure across County organization. For example: telephones; does every department need marketing, communications, administrators, etc.
Deep dive on service statistics,# and $ impact related to cost.
The services that can be reduced currently; one year fix?[ or] more than [ that].
Do not reduce services that enhance quality of life— Keep Waukesha County as a desirable place to live, etc.
This is the first tool to use to balance the budget after use of the surplus.
We must continue to provide a safe and secure place to live.
Invest in maximum impact— safety, infrastructure, government functions.
With 37 municipalities each responsible for their own public safety, why do we need to expand County Sheriff' s department?
Continue the important work of adjusting service levels and finding efficiencies— despite any revenue options.
Explore reduction of Health & Human Services spending.
I favor sharing services where feasible and more efficient. I believe the Y2% sales tax revenue should be: 40% County, 2O% Real estate tax reduction, 40% local governments.
Think creatively about spending. There is room in all budgets to reduce spending. We should use a holistic approach taking all opportunities into account.
Increase funding for services supporting families, veterans, and victims of domestic violence/ abuse or trafficking.
Some departments are fully funded by the services they offer, leave these alone. Some departments are fully tax level funding; if core service, leave alone. If partially funded by tax levy, focus some reduce.
Clean up public safety budgeting issues.
60 WAUKESHA COUNTY, WI
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Desire to Explore Revenue Options
Approve sales tax at 0. 5%. 40% to municipalities, 20% to property tax relief, 20% to County budget, 20% to paying down debt.
Consider increasing taxes for all who use County services( e. g., include non- residents).
I would suggest a referendum first— if voted down, propose sales tax 5. 3%. Sales tax is regressive hitting low income hardest and businesses. Would be head wind to economic development.
Increased sales tax seems to be the only option that" solves" the problem. 1) Sales tax 0. 5%. 2) Legislature work on shared revenues.
Sales tax is the only responsible revenue increase option — collects revenue from other county' s residents which we pay to them when we shop there.
Implement a'/ 4% sales tax, increase so we do not collect more than we need.
Explore grants in all areas. Donations and sponsorships to Parks& Health and Human Services. Last option sales tax at less than'/ 2%.
New revenue source as the last resort and then only take what is necessary to solve the budget issue. Taking more than needed is not responsible or the Waukesha Way. Plus eats at future needs. Partial sales tax is better.
The conservative approach in this County necessitates communicating impact to educate residents, regardless of which option is selected.
Explore state change to allow for less than 0. 5%.
Fees, naming rights, sponsorships, property tax, grow economy. Infrastructure and development best- in- class.
Sustainability prediction, time implications.
Each revenue option should be taken seriously. The wheel tax will provide some revenue although it is obviously not enough to offset the entire deficit.
I believe the best revenue option is the'/ 2% sales tax and I would not attempt to reduce that.
Tough decision equals long- term solutions.
If a sales tax is necessary and the state is essentially forcing the County' s hand, think big. This is about a lot more than just a sales tax.
Explore sale of County lands to resolve short- term deficits and allow expansion of tax increment.
Exceed [ property tax] levy: No. Vehicle registration fee: No. Sales tax: Yes, if... 1) reduce property taxes, 2) county ordinance has flexibility to adjust property tax levy, general fund, build a buffer into the plan.
Support for Infrastructure and Economic Development
Paying down debt with sales tax$' s allows for future where infrastructure can become paid for with incoming dollars. Big win for all property owners.
Most important responsibility for County and Government. We are behind in this area.
Though not rated as high as Public Safety, extremely important to value to keep this County growing, attractive.
Continue ( or increase) focus on Economic Development to increase tax revenue on commercial ( versus residential).
Focus more on innovation. Waukesha Version 2. 0.
This area should be a strong priority.
Infrastructure, Public Safety, and Health Services should be protected to the greatest extent possible.
Think creatively about where we are able to reduce funding to Infrastructure and Development by identifying risk and proportionally addressing reductions.
Maintaining existing infrastructure and focusing on new development will translate to economic growth, as strong infrastructure attracts business.
I believe County and municipal expenditures on infrastructure and development are currently appropriate and would avoid major changes.
Necessities now. 5 years from now.
Roads are very important to residents and commerce. Investment here is usually appreciated and often noticed by taxpayers.
Visibility to residents and visitors speaks volumes about our County.
Continue economic development but maintain the character of the county— preserve the reason people moved here!
High priority to continue to maintain and expand infrastructure allowing for housing/ building development to expand. Creates an avenue for revenue growth under current state statutes.
Roads are critical. Shared revenue if implemented needs to account for differences in infrastructure from cities, villages, and rural towns. For example, no public pools in the Town of Oconomowoc or Town of Eagle.
Boost business and housing market growth. Draw businesses and homeowners from surrounding communities.
BUDGET TASK FORCE ANALYSIS AND FACILITATION 61
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Evaluate Shared Services and Shared Revenue
All municipalities in County are not cities. Most towns in County do not want shared revenue but are very interested in shared services.
Continue working on sharing services. Sales tax ( 40%) shared with municipalities based upon population.
Look for strategies and cuts with the least reduction in core service to citizens.
Explore all options to realize efficiencies by sharing services.
Advantages and impacts, time implications.
Encourage and explore opportunities to consolidate services among the County and municipalities.
Shared services and revenues will help the cities with their own budget issues.
I believe the County and municipal governments are currently fiscally responsible, and I would try to avoid major cuts.
Share revenue to encourage municipalities to cooperate. Municipalities using 911 Dispatch should pay for service. Use shared revenue to encourage Fire& Rescue consolidation.
Think creatively to combine services and reform to identify savings possibilities.
Shared Revenue [ from] 0.5% [ sales tax], 50% County, 35% Municipalities, 15% Tax Relief.
Budget issues impact local municipalities same as County— great opportunity to get property tax relief for County and local tax bills.
Brainstorm more options for shared services— e. g., public road plowing and maintenance, mowing near roads, charging for 911.
Remain committed to intentional, creative eye to consolidate services whenever possible.
Focus on shared services, collaboration, and consolidated services.
Shared Services and Revenue 3 Slippery slope, what happens if County needs to grow? Benefits to municipalities, directly benefits residents, making tough revenue decisions more palatable Believe there is limited ( small amount) revenue to be shared. Likely some communities will be uncooperative recall 9- 1- 1 consolidation). Overall a great idea.
Yes, to splitting excess revenue to communities with simple ordinance, but vigorous accounting calculations. 62 WAUKESHA COUNTY, WI
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1 C Los GATOS- PROPOSAL FOR STUDY 1( FISCAL CONDITION) AND STUDY 2( FISCAL IMPACT) APPENDIX E: RICHARDS RANCH FISCAL IMPACT REPORT
N HA I ADVISORS Financial& Policy Strategies.
Delivered.
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915A0C1C
CITY OF SANTA MARIA AND
COUNTY OF SANTA BARBARA
RICHARDS RANCH FISCAL IMPACT STUDY
ADMINISTRATIVE REVIEW DRAFT
J U LY 24, 2025
WW
FINANCIAL SERVICES
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ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1D6- 2ABE915A0C1C This page intentionally left blank.
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915AOC1 C Table of Contents
EXECUTIVE SUMMARY.............................................................................
Background and Study Objectives i
Summary of Re i
1 . INTRODUCTION.................................................................................... I............................. 1
2. METHODOLOGY.................................................................................. 4........................ 4
3. FISCAL IMPACTS................................................................................... 5.........................................................5 Revenues 5
Project Demographics 9
Santa Maria Revenue Projections 9
Santa Maria Expenditures 11
County of Santa Barbara Revenues 12
County of Santa Barbara Expenditures 13
Sales Tax Revenues 14
Property Tax Revenues 18
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FINANCIAL SERVICES
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915AOC1 C Executive Summary
This report identifies the estimated fiscal and economic impacts of the Richards Ranch Project on the City of Santa Maria and the County of Santa Barbara. background ai , study ( Jojectives
The project proponent, MD3 Investments, proposes to construct a mixed- use project on the border of the City of Santa Maria in the unincorporated community of Orcutt. The project proponent and the County have proposed annexing the project into the City of Santa Maria. The Santa Barbara County Local Agency Formation Commission requires that a proposed annexation consider the fiscal impacts of an annexation to ensure that municipal services can be provided to the project. A fiscal impact study considers the costs and revenues to the City and County associated with the project, especially tax revenues and services such as public protection.
The project proponent had a prior fiscal impact study prepared by the Natelson Dale Group, Inc. This analysis relies heavily upon data from that study, but Willdan has made its own judgments regarding methodology and assumptions and has modified the analysis accordingly. The analysis assumes that the project will be annexed into the City of Santa Maria, which has implications ( most notably, services are provided by the City of Santa Maris, tax and fee revenues accrue to the City, and the municipal property tax allocation is shared between the City and the County). As part of the evaluation process, the City and the County have engaged Willdan Financial Services to evaluate the Natelson report and prepare an independent fiscal impact analysis.
Summar,
w
Results
Following is a summary of the analysis, also included below in Table 1, explained in further detail in the body of the report.
The projected impact to the City of Santa Maria general fund is a fiscal surplus of 93,000 annually.
The projected impact to the County of Santa Barbara general fund is a fiscal surplus of$ 276,000 annually.
Additionally, the report calculates the rate of property tax sharing at which the City and County would have an estimated fiscal impact of approximately zero. For the City this figure is 30 percent, and for the County 33 percent. 1 1 Consistent with the Natelson report, the Willdan analysis assumes that the City receives fifty percent of the fire district revenue and twenty-five percent of general fund property tax revenue generated by the project, for an overall share of approximately thirty- eight ( 38. 4) percent. This calculation is explained in further detail in Table 19.
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ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1D6- 2ABE915AOC1C City of Santa Maria and County of Santa Barbara Richards Ranch Fiscal Impact Study Table 1
Summary of Results
Richards Ranch Fiscal Impact Analysis
Item Amount
City Net Fiscal Surplus( at 25/ 50% share, 38% overall) 92, 989 City" breakeven" propertytax share 30%
County Net Fiscal Impact( at 75/ 50% share, 62% overall) 275, 823 County" breakeven" propetytax share 33%
Willdan Financial Services, 2025
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FINANCIAL SERVICES
ii Page 481
ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915AOC1 C 1 . Introduction
MD3 Investments has proposed construction of a mixed residential and commercial project in Orcutt, an unincorporated community adjacent to the City of Santa Maria. The City and County are considering annexation of the project into the City. The City and County have engaged Willdan to prepare a report that estimates the fiscal impacts of the project after annexation, building on a prior report prepared by the Natelson Dale Group, Inc., for the project proponent. The proposed project will consist of 484 multi- family rental and single- family for-sale residential units and 195, 000 square feet of commercial development, including a retail center and mini storage. Tables 2 and 3, on the following pages, detail the residential and commercial elements of the project, and estimate the assessed value ( based on sales price) and expected residents and employees for the project.
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ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1D6- 2ABE915AOC1C City of Santa Maria and County of Santa Barbara Richards Ranch Fiscal Impact Study In Table 2, Willdan has increased the estimated residents in each development type to more closely match the average household size of 3. 7 in Santa Maria. Willdan has also reduced the estimated monthly rent and townhome sales price based on its evaluation of the Santa Maria market.
Table 2
Residential Project Description
Richards Ranch Fiscal Impact Analysis
Type Units Value/ DU TotaLVaLue HH Size Tot Residents
Apartments
1- BR 120 410, 032 49,203, 819 1. 5 180
2- BR 176 503, 221 88, 566, 875 2. 5 440
3- BR aa 615, 048 54, 124, 201 3-5 308
Total/ Mean 384 499, 726 191, 894, 895 2.42 928
Townhomes 100 600, 000 60, 000, 000 3. 75 375
Grand Total/ Mean 484 520, 444 251, 894, 895 2.69 1303
Sources: Willdan Financial Services, Inc.; The Natelson Dale Group, Inc.
Willdan Financial Services, 2025
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ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915AOC1 C City of Santa Maria and County of Santa Barbara Richards Ranch Fiscal Impact Study Table 3 provides detail regarding the commercial component of the project, including 94,000 square feet of commercial strip center and a 101, 000 square foot mini storage facility.
Table 3
Commercial Project Description
Richards Ranch Fiscal Impact Analysis
Employees/ Assessed
Type Sq. Feet 1K sf Employees AV/ sf Value
CommercialStrip Center 93, 863 2 188 410 38, 483, 830
Mini Storage 101, 265 N/ A a 150 15, 189, 750
Total/ Mean 195, 128 191 53, 673, 580
Source: The Natelson Dale Group, Inc.
Willdan Financial Services, 2025
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ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915AOC1 C
2. Methodology
Willdan has prepared a model based in broad terms on the analysis prepared by Natelson.
In broad terms, the fiscal analysis uses two basis methods of estimating revenues and expenditures. For most categories the model assumes that revenues and expenditures will increase in proportion to the project, by using the existing per capita figures for the City and County and applying the expected new residents and employees in the project to estimate the impact on each item. For certain items Willdan uses a " case study" approach, in which the details of the project are used to estimate certain items. For example, Willdan uses estimated taxable sales to project sales tax revenue and expected assessed value to estimate property tax revenue.
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ITEM NO. 11.
Docusign Envelope ID: 8463BA3F- D38D- 4CDC- A1 D6- 2ABE915AOC1 C
3. Fiscal Impacts
Revenues
Table 4 provides a more detailed summary of the expected revenues and expenditures expected from the project for the City of Santa Maria. As shown in Table 4, the major revenue sources are taxes, including Measure U, and the major expenditure categories are public safety. Willdan has adjusted these from the Natelson methodology. The most notable change in Table 4 is the exclusion from the analysis of the County Measure A revenue, which is administered separately used primarily for capital projects ( and therefore not a general fund revenue to the City and not generally available to fund services). As shown in Table 4, Willdan projects a surplus of$ 93,000 annually for the City.
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