STATE OF MAINE. I. CALL TO ORDER On Monday, May 2, 2016 at 6:34 p.m. a Council Meeting was held in the City Hall Auditorium.

Transcription

1 COUNTY OF YORK STATE OF MAINE CITY OF SACO I. CALL TO ORDER On Monday, May 2, 2016 at 6:34 p.m. a Council Meeting was held in the City Hall Auditorium. II. RECOGNITION OF MEMBERS PRESENT Mayor Roland Michaud recognized the members of the Council and determined that the Councilors present constituted a quorum. Councilors present: David Precourt, Roger Gay, William Doyle, Kevin Roche, Alan Minthorn, Eric Cote and Nathan Johnston. City Administrator Kevin Sutherland was also present this evening. III. PLEDGE OF ALLEGIANCE IV. GENERAL RECOGNITION OF PEG POULIN, MAINE SPIRIT OF AMERICA FOUNDATION TRIBUTE Mayor Roland Michaud presented Peg Poulin with the award and also recognized her as follows: The 2016 Maine Street America Foundation Tribute would like to honor Peg Poulin for commendable community service and her dedication in particular to Saco Main Street. Whereas, since its inception in 2003 Peg Poulin has been a driving force behind Saco Main Street and its efforts to improve our downtown district and Whereas, Peg has for many years served as officer, director, member or chair of virtually every Saco Main Street Committee and Whereas, Peg has been instrumental in the success of many community events over the past years, including the Annual Saco Sidewalk Art Festival, the Holiday Parade of Lights, and the Harvest Festival and Whereas, Peg has served as a key player in ensuring that the continued success meeting our communities needs during a recent transition, Therefore, I Roland Michaud Mayor of the City of Saco and the Saco City Council hereby recognize Peg Poulin for her outstanding achievements and is awarded the 2016 Maine Spirit of America Foundation Tribute. V. PUBLIC COMMENT There were no public comments this evening. VI. CONSENT AGENDA Councilor Johnston moved, Councilor Roche seconded to approve the consent agenda as follows: A. Be it ordered that the City Council approve the minutes for March 28, 2016, April 4, 2016 and April 19, Further move to approve the order; B. Be it Ordered that the City Council grant the application for a Solid Waste Permit as submitted by Maine Waste Solutions d/b/a We Compost It!; Further move to approve the order. C. Be it Ordered that the City Council confirm the Mayor s appointment of Gary Marston as a full member of the Saco Coastal Waters Commission, with his term ending on May 2, Further move to approve the order. The motion passed with seven (7) yeas. B. APPLICATION FOR A SOLID WASTE PERMIT MAINE WASTE SOLUTIONS D/B/A WE COMPOST IT! Maine Waste Solutions d/b/a We Compost It has applied for a Solid Waste Permit for a period of one year. The applicant has paid all applicable permit fees as required by Chapter 181 Solid Waste, Article II, Licenses C. CONFIRM THE MAYOR S APPOINTMENT OF GARY MARSTON TO THE COASTAL WATER COMMISSION M:\2016\cm_2016_05_02.doc 5/19/2016 Page 1 of 29

2 The Coastal Waters Commission shall be composed of seven members, to be appointed by the Mayor for a threeyear term and approved by the City Council. Each Commission member shall be a resident of the city, shall be persons qualified to perform the duties of such office, and shall serve without compensation. The Mayor is recommending the appointment of Gary Marston Glenhaven Circle to serve on the Coastal Waters Commission for a three-year term. VII. AGENDA G. INTELLIGENT CONTROLS INC (NOW KNOWN AS FRANKLIN FUELING) TIF ASSIGNMENT, MODIFICATION AND EXTENSION (FIRST READING) In 2008 a TIF was created for the above referenced firm on the commercial real estate locate at 34 Spring Hill Road. A couple of years ago as part of a corporate restructure the manufacturing that was done at this location was consolidated out of state. Franklin has 20+ individuals, mostly engineers who remain working at this facility. These employees would like to stay; however, given that 2/3rds of the building is vacant, the parent company put the building up for sale with the intent of relocating the engineering team to smaller space locally. A local manufacturer, Maine Textiles International, Inc. d/b/a Saco River Dyehouse with 15+ employees is in need of manufacturing space to house new production equipment and was looking to relocate. A deal has been struck with an investor buyer White Rabbit LLC, which is owned by Kevin Bunker, Manager and Traverse Fournier, Member, that will lease a portion of building back to Franklin Fueling - 11k sq. ft. of offices for its engineering staff and the remaining 23k sq. ft. of manufacturing space will be leased back to Maine Textiles International, Inc. d/b/a Saco River Dyehouse. Maine Textiles will have a first right of refusal option to purchase the building. The prospective purchaser has asked that the TIF be amended to extend it for 10 years. They have indicated that there is approximately $250,000 in fit-up, equipment set-up, and office build out as well as electrical infrastructure upgrades needed to accommodate Maine Textiles. City Staff is proposing a modified change to the TIF, which will need both Council and State of Maine approval, this change accommodates the request of the purchaser, protects the existing jobs, moves Maine Textiles into this space, and provided greater flexibility for the City in using its share of the TIF Revenue Stream (see attached sheet Summary of TIF Modifications Proposed). The purchaser has requested that the City approval be expedited as they need to close in early June (currently planned for June 2 nd ). This closing date is necessary so Saco River Dyehouse can accept deliver of significant equipment being shipped from Italy which is planning on arriving the following week (the week of June 6 th ) here in Maine. Accordingly, we are asking that the initial workshop and first reading be done on May 2 nd. To be followed by a Public hearing on May 16 th and second workshop/2 nd and final reading on May 23 rd. Councilor Minthorn moved, Councilor Doyle seconded Be it ordered that the City Council does hereby ordain and approve the First Reading of the requested Assignment and Assumption of Credit Enhancement Agreement between the City of Saco and Intelligent Controls, Inc. (now known as Franklin Fueling) to White Rabbit, LLC, provided that White Rabbit, LLC accepts the modified terms as set forth in the Amended Credit Enhancement Agreement and is subject to final approval by the State of Maine Department of Economic and Community Development. Further move to approve the Order. The motion passed with five (5) yeas and two (2) nays Councilors Roche and Johnston. Summary of TIF Modifications Proposed The Current TIF (Intelligent Controls, Inc. (now known as Franklin Fueling): 45% Credit Enhancement (CE) to Franklin/ 55% to City for Economic Development Approved in 2008 runs out in FY 18 (two years to go) M:\2016\cm_2016_05_02.doc 5/19/2016 Page 2 of 29

3 White Rabbit LLC the Prospective Buyer has requested an Assignment and Extension of the TIF for 10 years. City Staff recommends the following: Seek State of Maine (DECD) approval for Assignment/Modification of Credit Enhancement (CE) to allow FY 17 to go as originally set forth with new property owner with a 45% /55% split between property owner and City, Add the following job retention/creation/benefits criteria o 23 Franklin retained o 15 Maine Textiles new to Saco ( not sure of mix retained /new) o 38 Total Employees o Include a provision that requires tenant business to offer a general benefits plan and including a health care plan offered to all full-time employees (they do not necessarily need to have employer contribution) if they want City funds they should at least offer a health care option to employees? o Include minimum wage level of $12.00 per hour and average salary level in accordance with city TIF Guidelines, Extend the term of the TIF for the maximum possible term thru FY 38. Cap CE payments after 07/01/16 at $125,000 to Property owner. TIF revenue share after FY 18 modified to 30%* Credit Enhancement (CE) to White Rabbit that would be assignable to Maine Textiles International, Inc. d/b/a Saco River Dyehouse who has a first refusal option to purchase the property)/70% to City of Saco for Economic Development. Should the combined building Full time employment of the two tenants drop: o below 35 FTE s as determined based upon submission of copies of year end payroll summary information and company certification in form acceptable to the City of Saco, the TIF revenue share rate would be modified to 25% Credit Enhancement (CE) to White Rabbit that would be assignable to Maine Textiles International, Inc. d/b/a Saco River Dyehouse who has a first refusal option to purchase the property)/75% to City of Saco for Economic Development. o below 29 FTE s as determined based upon submission of copies of year end payroll summary information and company certification in form acceptable to the City of Saco, the TIF revenue share rate would be modified to 20% Credit Enhancement (CE) to White Rabbit that would be assignable to Maine Textiles International, Inc. d/b/a Saco River Dyehouse who has a first refusal option to purchase the property)/80% to City of Saco for Economic Development. o below 19 FTE s as determined based upon submission of copies of year end payroll summary information and company certification in form acceptable to the City of Saco, the TIF revenue share rate would be modified to 0% Credit Enhancement (CE) to White Rabbit that would be assignable to Maine Textiles International, Inc. d/b/a Saco River Dyehouse who has a first refusal option to purchase the property)/100% to City of Saco for Economic Development. o Share rate to be tested annually. First Amendment to City of Saco TIF #8, the Franklin Fuels Municipal Development Tax Increment Financing District Development Program The City of Saco on May 21, 2007 created, as its TIF #8, the Franklin Fuels Municipal Development Tax Increment Financing District and approved a municipal development district development program for that District (the Development Program ). Franklin Fuels was also referred to as Incon or Intelligent Controls, Inc. in the Development Program. The District and Development Program were approved by the Maine Department of Economic and Community Development by letter dated March 24, The City now desires to amend the District and Development Program in order to provide new employment opportunities in the City, improve and broaden the tax base, and improve the general economy of the City and the State. Accordingly the District and Development Program are hereby amended for the following purposes: M:\2016\cm_2016_05_02.doc 5/19/2016 Page 3 of 29

4 below; (a) to extend the term of the Development Program for 20 additional years, as described in Section 1 (b) to provide for an assignment and amendment of the Credit Enhancement Agreement, as described in Section 2 below; (c) to provide for certain changes to the categories of eligible expenditures of the tax increment revenues from the District by the City as set forth in Section 3 below; (d) (e) to make the findings set forth in Section 4 below; and to provide estimates of the tax increment revenues and tax shifts as set forth in Section 5 hereof. The specifics of this Amendment are set forth in the following sections 1 through 5: 1. Term. The Development Program, as originally approved, was for a term of 10 years, ending with the City s fiscal year. The program duration or term of the District as set forth in the Development Program is hereby extended for 20 additional years, with the final year being the City s Fiscal Year ending on June 30, Assignment and Amendment of Credit Enhancement Agreement. Pursuant to the Development Program, the City entered a Credit Enhancement Agreement with Intelligent Controls, Inc. that provided for payment of 45% of the tax increment revenues from the District to Intelligent Controls, Inc. for a period of 10 years. Pursuant to that Agreement, Intelligent Controls constructed a 30,000 square foot facility located at 34 Spring Hill Road in the District. Several years ago as part of a corporate restructure the manufacturing that was done at this location was consolidated out of state. Intelligent Controls has 20+ individuals, mostly engineers who remain working at this facility. These employees would like to stay in the building; however, given that 2/3rds of the building is vacant, the parent company put the building up for sale with the intent of relocating the engineering team to smaller space locally. A local manufacturer, Maine Textiles International, Inc. d/b/a Saco River Dye House with 15+ employees is in need of manufacturing space to house new production equipment and was looking to relocate. Intelligent Controls now proposes to sell all of the property in the District to White Rabbit, LLC and to assign the Credit Enhancement Agreement to White Rabbit, LLC. White Rabbit will lease a portion of building back to Intelligent Controls, consisting of approximately 11,000 square feet of space of offices for its engineering staff and the remaining 23,000 of manufacturing space will be leased back to Maine Textiles International, Inc. d/b/a Saco River Dye House. Maine Textiles will have a first right of refusal option to purchase the building. White Rabbit, LLC will invest at least $250,000 for improvements to the property located in the District, consisting of fit-up, equipment and office build-out and electrical infrastructure upgrades to accommodate Saco River Dyehouse. Saco River Dyehouse is a yarn dyeing plant, focused principally on skein dyeing, which is a laborintensive, hands-on process requiring careful handling of the yarn, precise measurement of dyes and calibration of temperature and water flow to preserve the natural loft and soft hand of the yarn. Intelligent Controls and White Rabbit have requested that the City entered an Assignment and Amendment to Credit Enhancement Agreement in the form attached hereto as Exhibit A. The amendment would assign the Credit Enhancement Agreement to White Rabbit and would extend the term of the Credit Enhancement Agreement for up to 10 additional years, and would change the percentage of tax increment revenues to be paid to White Rabbit under the Agreement and add would certain job quality, retention, creation and benefits criteria to the Credit Enhancement Agreement and would cap the remaining amount of tax increment revenue payments to White Rabbit at $125, Public Facilities Improvements and Programs. The City will retain the Tax Increment from the District, for the term of the District as extended hereunder, to finance the public improvements described in Section M:\2016\cm_2016_05_02.doc 5/19/2016 Page 4 of 29

5 1.03 of the original Development Program approved in 2007 as well as some or all of the costs of the following public facilities, improvements or programs (the Public Facilities, Improvements and Programs ) and the following table supplements or adds to the proposed uses of TIF funds from this District, effective as of the date of approval hereof by the Maine Department of Economic and Community Development: TABLE NO. 1: POTENTIAL PUBLIC FACILITIES, IMPROVEMENTS AND PROGRAMS Project Estimated Cost Over Extended and Remaining District Term 30-A MRSA Statutory Citation Total Project Costs: Note: Categories above are common to the City TIF #. 4. Findings. The City finds that this Amendment and the projects described herein and in the Development Program will either directly or indirectly provide or encourage new employment opportunities within the City or encourage and promote economic development that will broaden the City s tax base and improve the general economy of the City. The City further finds and determines that this Amendment and the designation of the District, as amended, and pursuit of the Development Program will make a contribution to the economic growth or well-being of the City and the betterment of the health, welfare or safety of its inhabitants, including employment opportunities, broadened and improved tax base and any adverse economic effect on any existing business is outweighed by the contribution made by the District and the Development Program to the economic growth or well-being of the City and the betterment of the health, welfare and safety of its inhabitants. The City finds that the projects described herein will provide or encourage new employment opportunities within the City or encourage and promote economic development that will broaden the City s tax base and improve the general economy of the City. 5. Estimated Tax Increment Revenues and Tax Shifts. The table attached hereto as Exhibit B sets forth: (i) the annual estimates of the Increased Assessed Value of the District resulting from implementation of the Development Program during the extended term of the District; and (ii) the estimated annual Tax Increment M:\2016\cm_2016_05_02.doc 5/19/2016 Page 5 of 29

6 Revenues per year on the Increased Assessed Value following implementation of the extended term of the Development Program. In accordance with Maine statutes governing the establishment of tax increment financing districts, the table set forth in Exhibit B identifies the estimated tax shifts which will result during the extension of the term of the District from the establishment of the District, which tax shifts are further detailed in Exhibit B hereto. A summary of the methodology and calculations utilized in calculating such estimated tax shifts is attached hereto as Exhibit C. 6. Notice of Public Hearing and Approval of Amendment. A copy of the Notice of Public Hearing published in the Morning Sentinel, a newspaper of general circulation in the City of Saco on May, 2016, is attached hereto as Exhibit D. A public hearing pursuant to such Notice was held on May 16, The minutes of the public hearing are attached hereto as Exhibit E. The minutes of the City Meeting approving this Amendment are attached hereto as Exhibit F, amending the Development Program as set forth herein. List of Exhibits Exhibit A: Assignment of and Amendment to Credit Enhancement Agreement Exhibit B: Estimated Tax Increment Revenues and Tax Shifts. Exhibit C: Tax shift calculation methodology Exhibit D: Notice of Public Hearing Exhibit E: Minutes of Public Hearing (attested) Exhibit F: City Council orders and minutes of meeting Exhibit A ASSIGNMENT OF AND FIRST AMENDMENT TO CREDIT ENHANCEMENT AGREEMENT This Assignment of and First Amendment to Credit Enhancement Agreement, dated as of June, 2016, between the City of Saco (the City ), a municipal body corporate and politic and a political subdivision of the State of Maine, and Intelligent Controls, Inc., a Maine corporation (the Original Developer ) and White Rabbit, LLC, a Maine limited liability company (the New Developer or the Company ) hereby amends the Credit Enhancement Agreement, entered on December 22, 2008 between the City and the Original Developer, a copy of which is attached hereto: WITNESSETH THAT: WHEREAS, the City on May 21, 2007 created, as its TIF #8, the Franklin Fuels Municipal Development Tax Increment Financing District (the District ) and approved a municipal development district development program for that District (the Development Program ); Franklin Fuels was also referred to as Incon or Intelligent Controls, Inc. in the Development Program; and the District and Development Program were approved by the Maine Department of Economic and Community Development by letter dated March 24, 2008; and WHEREAS, the City and the Original Developer on December 22, 2008 entered the Credit Enhancement Agreement attached hereto as Exhibit A (the Agreement ); WHEREAS simultaneously with the execution of this Assignment and First Amendment, the Original Developer has sold all property located in the District to the New Developer; and WHEREAS, in connection with the Development Program, as amended, and as contemplated thereby, the City, the Original Developer and the New Developer have agreed to execute and deliver this Assignment and First Amendment (hereinafter called the Amendment ); and NOW, THEREFORE, in consideration of the foregoing and in consideration of the mutual promises and M:\2016\cm_2016_05_02.doc 5/19/2016 Page 6 of 29

7 covenants set forth herein, the parties hereby agree to amend the Agreement as follows: Section 1. Assignment and Assumption. The Original Developer hereby sells, transfers, conveys, grants and assigns to the New Developer, its successors and assigns, all right, title and interest of Original Developer in and to the Agreement. The New Developer hereby accepts such assignment and assumes all obligations of the Original Developer under the Agreement. This Assignment and Amendment shall be binding upon the Original Developer and shall bind inure to the benefit of the New Developer. The New Developer acknowledges and agrees to accept all obligations of the Original Developer under the Agreement and to be bound by all provisions of this Agreement. The City hereby consents to such assignment and assumption. Section 2. Term and Credit Enhancement Payments. Section 3.1(a) of the Agreement is hereby amended in its entirety to provide: Section 3.1. Credit Enhancement Payments. (a) The term of this Agreement commenced on July 1, 2008 and shall end on the earlier of (i) June 30, 2028, or (ii) any earlier expiration or termination of this Agreement in accordance with the terms of this Agreement, or (iii) in any event the term of the Agreement shall end on the date on which the total payments of Tax Increment (Company Share) by the City to the New Developer, its successors or assigns, pursuant to this Amendment for the portion of the term of the Agreement on and after July 1, 2016 equal $125,000, determined on a cumulative basis. Commencing with the first Fiscal Year and continuing until the expiration or termination of this Agreement, the City agrees to pay to the Company within 45 days following each Calculation Date, payments equal to the Tax Increment (Company s Share) actually received by the City as of such Calculation Date, subject to the limitations set forth in this Agreement, for each such Fiscal Year during the term of this Agreement, provided that such payments by the City shall not be due and payable unless the Company, on or before the date on which such payment is due from the City to the Company or simultaneously therewith, has paid to the City the amounts due under Section 3.1(b) and under Section 3.8 of this Agreement. The Tax Increment (Company s Share) for each Fiscal Year of the term of this Agreement shall be calculated as follows: First, the amount of the Tax Increment shall be determined by subtracting the real Property Taxes for such Fiscal Year on the Original Assessed Value from the total real Property Taxes for such Fiscal Year on the Current Assessed Value for such Fiscal Year; Second, if there is a positive amount remaining (the Tax Increment ), then the Company Percentage, as hereafter defined, shall be multiplied by the Tax Increment, and the product thereof shall constitute the Tax Increment (Company s Share) for such year. The Company Percentage shall mean (a) except as otherwise hereinafter provided, 45% for the year beginning July 1, 2016 and ending June 30, 2017; (b) except as otherwise hereinafter provided, 30% for all years during the term of this Agreement beginning on or after July 1, 2017; (c) notwithstanding the foregoing, the Company Percentage and the Tax Increment (Company Share) shall be 25% for any period that the number of Quality Jobs, as hereinafter defined, in the District are between 29 and 35; and shall be 20% for any period that the number of Quality Jobs in the District are between 19 and 28; and shall be zero for any period that there are fewer than 19 Quality Jobs in the District, each such period to be tested semiannually for the period prior to any scheduled payment of Tax Increment revenues to the Company; (d) notwithstanding the foregoing, the Company Percentage and Tax Increment (Company Share) shall be zero for any period or periods during the term of the Agreement that the businesses located in the District fail to pay each employee in the District at least $12 per hour as a minimum wage or fail to offer health insurance benefits of some type to its employees with at least some contribution by the employer; (e) notwithstanding the foregoing, the Company Percentage and the Tax Increment (Company Share) shall be zero for any period or periods during the term of the Agreement that the New Developer or the businesses located in the District or any property in the District is in violation of any federal, state or local environmental law, regulation or ordinance; and (f) notwithstanding the foregoing, the Company Percentage and the Tax increment (Company Share) shall be zero if the New Developer fails to present evidence to the City by July 1, 2017, that the New Developer has paid for at least $250,000 in costs of improvements to the property located in the District as further described in the First Amendment to the Development Program. Quality Jobs shall mean full time jobs or full time equivalent jobs that pay an hourly wage at least 50% higher than the federal minimum wage or average M:\2016\cm_2016_05_02.doc 5/19/2016 Page 7 of 29

8 salary of at least 125% of the median income for the area as defined by the United States Department of Housing and Urban Development under the United States Housing Act of 1937, Public Law 412, 50 Stat. 888, Section 8. Notwithstanding any other provision of the Agreement and this Amendment, the total payments by the City to the New Developer, its successors and assigns, pursuant to the Agreement, as amended hereby, determined on a cumulative basis for all periods on and after July 1, 2016, shall not exceed $125,000, and thus as soon as the cumulative amounts of Tax Increment (Company Share) equal such $125,000 amount, thereafter the Tax Increment (Company Share) shall equal zero (0) and the term of the Agreement as amended hereby shall end. All of the Tax Increment in excess of the Tax increment (Company Share) shall belong to the City as its share of the captured tax increment and increased assessed value. Section 3. The first two sentences of Section 3.1(d) are amended to provide: (d) The Company shall not cease business operations in the District, and shall operate its business in the District substantially as described in the Development Program, as amended by the First Amendment, and as represented in greater detail by the Company to the City, provided, however, that following any assigned permitted under Article VII and consented to by the City, the terms of this paragraph shall apply only to such assignee. Such businesses consists of the business of Franklin Fuels or Intelligent Controls, including the design and manufacturing of gas and oil tank monitoring equipment and similar monitoring equipment, and the business of Saco River Dyehouse as described in the First Amendment to the Development Program, and the nature of business operations shall not change without the consent of the City. Section 4. notices is: Section 8.7 of the Agreement is amended to provide that the address of the Company for White Rabbit, LLC Section 5. The New Developer agrees to pay of costs and expenses of the City in connection with this First Amendment and the First Amendment to the Development Program, including the costs of notice and public hearing and all legal fees. IN WITNESS WHEREOF, the City, the Original Developer and the New Developer have caused this Agreement to be executed in their respective corporate names all as of the day of, WITNESS City of Saco By: Its Intelligent Controls, Inc. By: Its White Rabbit, LLC By: Its M:\2016\cm_2016_05_02.doc 5/19/2016 Page 8 of 29

9 Exhibit B Estimated Tax Increment Revenues and Tax Shifts TIF Fiscal Year Year Year TIF Total Estimated Mill Rate Original Assessed Value Tax on OAV to General Fund Estimated Captured Increased Assessed Valuation Estimated Tax Increment Revenues (Company Share) Estimated Tax Increment Revenues (City Share) Notes: 100% Capture; years 1 to 8 are actual amounts M:\2016\cm_2016_05_02.doc 5/19/2016 Page 9 of 29

10 Tax Shifts Avoided Formula Impacts on Municipality Avoided Formula Impacts on Municipality from Sheltering of Valuation TIF year Fiscal Year Captured Assessed Value Avoided Loss of State Aid to for Education Avoided Loss of State Municipal Revenue Sharing Avoided Increase in County Tax Total Avoided Impacts Year TIF Total M:\2016\cm_2016_05_02.doc 5/19/2016 Page 10 of 29

11 Exhibit C Tax shift calculation methodology TAX SHIFT COMPUTATIONS METHODOLOGY A tax increment financing district will result in certain tax shifts which result because the retained captured assessed value of the District will be excluded from the State Valuation of the property in the City. These tax shifts are noted in three basis formulae which use local property tax valuation as a basis for calculation. These three formulas are: State Aid to Education Municipal Share of County Taxes Revenue Sharing The following is the process used to derive each of these tax shifts. EDUCATION TAX SHIFT: Computed by comparing State Department of Education Form ED 279 Adjusted Local Share Mill Rate, as set forth on the Department of Education General Purpose Aid for Local Schools, for the City with and without retained CAV. COUNTY TAX SHIFT: In order to compute this shift, we first obtained the most recent County State Valuation from the State Bureau of Taxation. We then determined the average Captured Assessed Value for the District over the life of the District. We then determined the City s current share of the County Tax by dividing the current City Valuation by the Current County Valuation. We then determined what the City s Share of the County Tax would be if the new value from the District were added by the City s Valuation without the creation of the District by dividing the sum of the current City Valuation plus the average new value by the sum of the current County Valuation plus the average new value. The difference is the factor representing the percentage of the County Tax Shift. Next, we determined the estimated average annual county tax over the life of the district. To arrive at this number, the average change in County Tax for the last five years was determined and the percentage increase projected to the middle of the district's life. This projected tax was then multiplied by the factor developed above to determine the County Tax Shift. REVENUE SHARING SHIFTS: The revenue sharing shift can be determined by adding the CAV to the Maine Projected Revenue Sharing, and comparing the amount of revenue sharing for the City with vs. without the CAV The first step in determining the Revenue Sharing Tax Shifts was to obtain the total Municipal Revenue Sharing Amount from the State Treasurer. The five steps outlined in the following formula were then applied: STEP ONE: Municipal Population X Local Property Tax Levied = Current Factor State Local Valuation STEP TWO: Municipal Population X Local Property Tax Levied = Adjusted Factor State Local Valuation + Captured Assessed Value STEP THREE: Current Factor = 1.X Adjusted Factor STEP FOUR: 1.X =.X STEP FIVE:.X (Total Municipal Revenue Sharing Amount) = Revenue Sharing Shift The relevant computations are attached hereto as Exhibit H. Exhibit D Notice of Public Hearing (will need tear sheet from newspaper) CITY OF SACO NOTICE OF PUBLIC NOTICE M:\2016\cm_2016_05_02.doc 5/19/2016 Page 11 of 29

12 Notice is hereby given that the City Council of the City of Saco will hold a public hearing on May 16, 2016 at 7:00 p.m. at the City Council Chambers, Saco City Hall, 300 Main Street in Saco for purposes of receiving public comments on the proposed First Amendment to the Saco Franklin Fuels (Incon or Intelligent Controls) Municipal Development Tax Increment Financing District Development Program, pursuant to the provisions of Chapter 206 of Title 30-A of the Maine Revised Statutes, as amended. A copy of the proposed First Amendment to the Development Program for the District (that makes a number of changes to the Development Program adopted by the City in 2007) is on file with the City Clerk and may be obtained from and reviewed at the offices of the City Clerk during normal business hours. All interested persons are invited to attend the public hearing and will be given an opportunity to be heard at the hearing. Note: To be published in a newspaper of general circulation in the City at least 10 days prior to the public hearing, with an actual copy of published notice to be attached to the application submitted to DECD Exhibit E Minutes of Public Hearing (certified as true copy by City Clerk and dated) Exhibit F City Council Orders Ordered that the City, acting pursuant to the provisions of Title 30-A, Chapter 206 of the Maine Revised Statutes, hereby adopts the First Amendment to the City of Saco TIF #8, the Franklin Fuels (a/k/a Incon or Intelligent Controls) Municipal Development Tax Increment Financing Development Program (the First Amendment ) as presented to this meeting and as has been on file in the City Clerk s Office, a copy of which is incorporated herein and made a part of the minutes of this meeting. The Mayor or the City Administrator, acting singly, is hereby authorized and directed, on behalf of the City of Saco to execute and submit to the Commissioner of the Maine Department of Economic and Community Development ( DECD ) such applications and further documentation as may be necessary or appropriate for any necessary final approval of the First Amendment; and the Mayor or City Administrator be, and hereby is, authorized and empowered, at his discretion, from time to time, to make such technical revisions to the First Amendment or to the Development Program for the District as he deems reasonably necessary or convenient in order to facilitate the process for review and approval of the First Amendment by the Commissioner of DECD, so long as such revisions are not inconsistent with the First Amendment or the basic structure and intent of the District or the First Amendment. Ordered further that the City Administrator or the Mayor, acting singly, be and hereby is authorized and directed to enter into the Assignment of and First Amendment to Credit Enhancement Agreement as contemplated by the First Amendment to the Development Agreement, and in the name of and on behalf of the City, such agreement to be in such form and to contain such terms and provisions, not inconsistent with the Development Program, as amended by the First Amendment, as the said Mayor or City Administrator may approve, the Mayor s or City Administrator s approval to be conclusively evidenced by execution thereof. Note: Attested copy of minutes of the public hearing held by the Board of Selectmen and the minutes of the City Meeting approving the amendment shall be attached to the application submitted to DECD A. FISCAL YEAR 2017 MUNICIPAL BUDGET (PUBLIC HEARING) The City Administrator presented a recommended Fiscal Year 2017 budget on March 28, The Council discussed the budget in workshop on April 4, 2016, April 11, 2016, and April 19, In addition, a public hearing was held on May 2, Below is a motion for the adoption of the Fiscal Year 2017 Budget for the City of Saco as proposed by the City M:\2016\cm_2016_05_02.doc 5/19/2016 Page 12 of 29

13 Administrator. Councilor Minthorn moved, Councilor Doyle seconded to open the Public Hearing on the Fiscal Year 2017 City Budget, Water Resource Recovery Department, and Capital Improvement Program. The motion passed with unanimous consent. Brad Bohon, York Country Community Action York County Community Action is the largest social service organization in York County. We assist residents in all 29 towns/cities with programs such as: WIC, Early Head- Start, transportation, housing, community outreach, weatherization and health services. In the past I have talked about the dollar value of services we provide, but I want to change that. I want you to think of York County Community Action as an investment in our community as you would think a part of the infrastructure like the Fire Dept., Police Dept.., Water Dept. or School Dept. What we do for the residents of Saco is to provide resources for them to become self sufficient and be able to sustain themselves. Briefly I will talk about how 3 of our programs do that. Community Outreach As a HOPE program we are able to provide financial assistance for example an individual has lost a job and is out of work for a year finds a job at a construction site but couldn t start the job until he had steel toed boots. We bought those steel-toed boots for him and the family was sustained financially because of that small amount of money that we were able to spend. We also use the money to pay for expensive heart medications for a resident in Saco and had she not had that it may have caused a ambulance ride to the emergency room and that would have cost everybody. Head-start early education nutrition services helps children move from infancy into kindergarten and there has been an argument in recent years that head-start doesn t work past grade 3, but what we have done and found and what the State of Oklahoma did, one of the most conservative states in the country was to research what happens to head-start children 40 years later. Those are the families that did not suffer divorces, that did graduate from college, that did get jobs and sustain those jobs, that did not end up in gang violence or in criminal activity. So head-start works. Your investment in our agency is an investment in the City of Saco. Housing Program /Foreclosure Prevention When a house falls into foreclosure is necessarily degrades the neighborhood. The house I live on Olive Street fell into foreclosure about 10 years ago and I mowed the lawn to keep it from coming a nuisance to the neighborhood. So when you invest in our housing program or our agency we necessarily are able to help the City of Saco sustain itself. John Harkins, 4 Christopher Terr., here on behalf of Saco Citizens for Sensible Government Our mission is to understand the budget, review city operations, recommend ways of finding savings, create revenue and develop proposed policies that will result in most efficient and effective government and operations. In so doing our goal is to keep the Saco citizens informed and the government transparent. On the other hand the City Council proposed to ensure a high quality of life for its citizens, businesses and visitors. To this end we applaud the City Council for hiring a new City Administrator, a renewed focus on economic development, newly elected officials and efforts to make the budget process and public meetings more transparent. The new budget approach while creative is in need of further modifications to be consistent with the Charter and stated afore mentioned objectives. It is our opinion that with selective adjustments to the budget it is possible to have a zero increase as a minimum to the home owner after the homestead exemption is factored into the budget. The Administrator has given the directive of $47, 900,000 and change to develop the budget. This directive is $1,096,000 under the adopted fiscal 2016 budget of $48,718,000 and change. If following the directive the decrease is achievable. Another way of approaching the program is to reduce the propose increases in expenditures of $1,096,000 and change. By making cuts to the proposed recommendations (RADS) of the City Administrator and utilize new found revenue sources. It is unfortunate that the community has lost significant state revenue which caused major adjustments to the Board of Education budget. However, recent revelations on the revenue side has positively impacted the budget. A few examples the Council may wish to consider in reducing the municipal program might include: delaying the hiring of the new facilities manager, elimination of the MUNIS package which we already have, reduce overtime in the Police and Fire which is a combined request of $665,000, phase out lease purchasing programs currently $730,477 and pose new leases of $55,000 and change, employ cost sharing services with neighboring communities such as Assessor, vehicle wash station, joint purchasing and consolidate departmental operations having related functions such as Parks and Public Works and other practices which can be implemented over time. On the revenue side recognize new impact fees for Fire and Recreation, unidentified growth in the tax base, car rental funds in addition to state aide. These revenues alone could produce over $1,000,000 revenue stream for Saco. We did not take into M:\2016\cm_2016_05_02.doc 5/19/2016 Page 13 of 29

14 consideration special revenue funds in our analysis at this point. On behalf of the Saco Citizens for Sensible Government we thank you for the opportunity to present this information to you and suggested modifications in the hand out. Michael Goulet, lives on the corner of Park & Central St The reason for my being here is to support the Public Works Amendment #31 for the extension of the sidewalk on Park Street which could perhaps continue onto Cantara. I m had more time to spend home and or semi-retired and I see the influx of traffic that cuts across from Route 5 down Cantara down Park Street over to North Street and from Spring Street, South Street, down Park to North. The Village Cove community people who walk from that area to the existing sidewalk I think is about 1,000 feet or maybe a little less than that to catch the sidewalk that is on Central and Park now. I think it would be beneficial for the citizens and the senior citizens as well to have that access so they wouldn t have to be in the road to walk from South Street, Cantara over to Park. I m just voicing my support to Councilor Johnston. Ronald Zehner, 124 Buxton Road The facts that I m going to give to you were provided 4 years ago by Saco Citizens for Sensible Taxes. I m speaking to the budget that Kevin has done a very good job on. He started just a few months ago and is pretty sure of what he is doing. But, 4 years ago Saco Citizens for Sensible Taxes told you that there was too much staff particularly in mid and upper levels. It still exists and a matter of fact in 2012 you have employees now you are pushing a budget with which is a increase of 9.5 people. Approximately 5.5%. We proposed to have at that time a hiring freeze. Any position opened up look at it and see if you can combine it and do something with it but not replace it immediately. I understand Kevin once again is working on this in the next future. The other thing is we have big, big problems with over-time. In 2013 it was $841, /2015 it went to $925,000 and now it is back down to $821,000. The City Manager once again wanted to put in a good healthy decrease but the greedy departments that use all this money decided they need to have more and they stuck in another $90,000. There are 17 heads which run the city and they have an average of $88,000 and that was 3 years ago and the fringe benefits are about 40% plus or minus. So you have allot of people making allot over $100,000 for a little community that has only 18,000 people. One of those departments we tried to talk to another department in a surrounding community and they insisted on being represented and I will not go any further on that one. My position right now is you do not need an increase anywhere. Also on the School Budget, I think it may stay the same, but you have to remember that last year you added about $500,000 plus or minus, as I was told but I cannot confirm it, about that amount has been taken out. Dominic is a fantastic individual and I call him, Kevin, and the City Manager over in Biddeford the young turks. Those 3 will make this community and Biddeford something to be appreciative of and still take care of those poor people this are over 50 years old that have to pay the taxes. But they said that Dominic took out what they added basically last year. So you didn t need the increase in the school budget last year. The last thing is there will be an article coming out on the new bond for that $20,000,000 school. You will be hearing from me and allot of other people after that hits the paper this week. Stephen Shiman, 15 Bayview Terr. Mr. Shiman is also a member of the Saco Citizens group but he is not speaking on behalf of them. I m speaking on behalf of the RAD s for the Library. I did a little bit of research into this. The library is among the most used for cities and towns of our size and it among the least supported as well. The cut would really hurt them because they are underpaid and under supported to begin with. I think that the RAD s are in order for the library and I hope you support them, at least the one that restores it to where it was and I think it should be from what I understand is for $18,000 for a total of $54,000 and the third one is just to put us on a comparable basis with other libraries and it is not as I found out for retirement funds as some people may think. I believe strongly that the library along with education in town speaks for who we are. It really does because people use it of all ages. They are not funded well to begin with and to cut them I think would be a mistake. I do believe that there may be a possibility with what limited experience I have had in administrating the way it is being administrated. That maybe there is a more efficient way in running it. You have a library and a museum that I think in effect are being funded by the same thing. The museum could be funded a different way. I think that it needs to be looked into. I think that they need to be funded this year but I do believe that we need to look into what is the best way to manage the setup that we have and I m not convinced that it is ideal the way it is. Donald Pilon, 1 Meadow Lane - Mr. Pilon noted that Mr. Shiman made a very good point about funding the library. M:\2016\cm_2016_05_02.doc 5/19/2016 Page 14 of 29

15 The library is not just a building with books in it, it has computers. A few years ago the career center which was a place where people would come that were looking for jobs and the career center folks would help people find jobs. Under the Baldacci administration a few years back they moved the career center out to Springvale. Unfortunately people from the Biddeford Saco area that didn t have transportation were kind of stuck. They would either have to find a ride or go out on a bus to Springvale to meet with a consultant. For those people the library is a very important place to go to go online and communicate with the career center to find a job. So it is not just a place for books. The other asset that the library provides is it s a latch key program for the kids at Burns School. After school they march across the street and go and wait for their moms and dads and get on the computers and go into some of the rooms. The library provides programming for kids after school. Free, no charge to the students. That might be a good avenue. We should be charging the schools for a after school program. So we have to really look at what that library is providing. We just think of it as a place retirees go and take out some books and sit there and they are providing some good services. So let s not overlook what they are doing for this community. Ann Garland, 229 Ferry Road Ms. Garland and her husband moved here in 1977 although he grew up here in Saco. We had 2 very young children and were encouraged to come here to Saco because this is where his job and his family were. He assured me it was a town that took care of it citizens. We moved in and almost immediately Saco put itself through a tax cap. Saco defaulted on a tax anticipation note and there was no money for anything in this town. Those of you that have been here as long as I have or longer realize what this town went through. When my daughter was 4 years old I began volunteering at the library. Education, reading, library and literacy have been crucial for me. My daughter will turn 40 at the end of this month and I m still volunteering at the library. When we came out of the tax cap there was the assurance from members of the city government that monies would be there to make the library the kind of facility the citizens of Saco deserved. We are now 37 years later and the staff at the library is poorly, poorly compensated in terms of what city employees are paid and in terms of what libraries in similar communities are paid. The staff is largely female, almost entirely female and very largely part-time because they are dependent on spousal support for medical care and retirement. Those are things that we cannot provide at the library. I think it is critical to realize that the people who walk into our library in Saco think that it is a city department. It could really be something to make the city proud of what they are doing if the library employees are treated more comparably to what other libraries and what other cities provide for comparable positions. We really would appreciate your support. I have been working there as a volunteer and I have shoveled the roof to remove the snow load, I have shoveled walkways and now I check out books. It is a great place and your money also supports the museum in addition to the library and you can make Saco a proud place to have a lot of pride. Donald Osman, Fieldview Estates Mr. Osman had 2 questions this evening. Everyday almost everything goes up from commodities to heating oil to taxes. My question is Do you know what seniors and people on fixed incomes worry about each morning when they get up? I have an answer if you would like to hear it. Will I have enough money to live on today? My second question is to School Administrators and to Council members is Are you satisfied and I stress the word satisfied that all has been done to reduce the tax increase in the FY2017 Budget? Mayor Michaud stated the answer to question #1 is that it is a rather subjective question but the answer to question #2 will come on May 9 th. I have been involved for a number of years and every Council I have ever worked with does and it may not seem it from the perceiver s perspective but they do work very hard to try to minimize the impact on the community while providing the services that the community asks for. It is always that balance and it is not a black and white balance. It is always going to be a challenge and it is not a bad thing that it is a challenge because it brings us together and we can debate and discuss and other people will take leadership roles down the road but that debate will always continue. That we can always look a different perspectives. Inga Browne, 161 Simpson Rd - Ms. Browne is speaking tonight as a teacher in this community, also as a mother who uses the library with my young children and as a new board member for the Dyer Library and Museum. The Dyer Library and Museum are a tremendous asset to our community. I often find my visiting other towns and I often go into their libraries just to spend time. I think you can tell allot about a towns commitment to learning and cultural literacy to museums, to the health of the community and I think our library is a true mirror and reflection of M:\2016\cm_2016_05_02.doc 5/19/2016 Page 15 of 29

16 what Saco values. We know that many people move to Saco for the schools and I think that the library and museum are a natural extension of the schooling and how we want to educate our young children and also our elderly. I often spend many hours at the library to be honest with you correcting papers and in doing that I m sort of an observer. I see the wide population of people who use the library. You see mothers and children, elderly people looking for a warm place on a winter afternoon, you see people who just need to get out of their house, you see tourist that visit Saco and use the library in the summer. I think Leslie did a great job in presenting you with a case for why the library needs a increase in funding. This library staff does more than most libraries in Southern Maine with much less money. Si I think it is a long time coming but I would ask you to consider voting for the RAD for $54,000. It is a substantial amount but it is really a small amount the library needs to move forward. I would like to be very, very proud of the Saco Library, Dyer Library and Museum and I think that the staff is top notch and I think it needs some extra funding to really realize the potential of this cultural asset to our community. Pat Polito 11 Lina Ave. - Ms. Polito noted that her and her husband retired last year and when they received their tax bill the previous year we said huh, it went up again. Knowing that we would have income for an increase and annual increases and the possibility of working overtime. Being retired and we know the taxes are going to go up, we don t have that option. We are not going to have the increase and we are not going to have the overtime. We do have the option of going back to work if we chose to but I want to be able to because I want to, not because I have to pay my taxes. I don t think it is fair that our taxes need to go up every year. Patrick Fennell, 745 Portland Road Mr. Fennerll s concern tonight is the same that he presented a few years ago after our 18% tax increase. I m again concerned about continued tax increases and this year we will be facing another one if it wasn t for the homestead exemption increase as I understand it that is hopefully going to negate a tax increase. I m also speaking for my elderly mother who is a tax payer and for anybody else who could not come tonight or is afraid to approach in public. Again, my concern is about the continued tax increase and my mother every time she pays the tax bill goes to church after to thank God that she was able to pay her taxes. This year social security recipients received no cost of living increase again and it was like that the last time I approached the Council a few years ago. One last thing, the sound out back is difficult depending on who is speaking. I m pretty close to the microphone and I don t know if I m being heard properly but we could probably income the PA system out back more with a couple of speakers against the back wall. Let s see what we can do about keeping the taxes down and maybe cutting out some street lights. I don t know what the electric bill is for the town for street lights I m big on light pollution so maybe that is one area we can look at. Councilor Precourt noted that the audio is not that great all around. The podium is not being heard. It is being interrupted and not staying on all the time, it has been cutting out. Don Duffy, 28 Richard s Way Mr. Duffy was here to support 3 requests above directives. Two of the requests have to do with the innovation I see coming from fresh hire of our new City Administrator. The first one has to do with #1701 and it has to do with interns and why I think this is innovative is because bringing in young college students to look at an organization and could really identify some great offerings for expense reductions. I would encourage the type of students that deal with information technology and business process optimization for example I think would be a great focus area for one of the students. Another idea is I think doing this in a few fortune 20 corporations was I saw the actual great innovative ideas are from actually the City of Saco employees. So I would encourage to ask out city staff for ideas. The second item is #1702 that has to do with the facility manager and I sort of believe that idea will generate operating expense to cover the individual s salary. The third item is #1721 and it has to do with the vital records. I support that $2,200 expenditure and I would sort of encourage the city to look at sort of the paradigm shift of using cloud based storage. The Dept. of Justice for example uses box a very good solution. That is sorta the 3 RAD s I support. In my last minute I wanted to share an experience I had with the City Administrator on April 8 th when I requested that a section 904 investigation be done for the facts surrounding the Juniper Knoll II development that was approved by the Planning Board on April 19 th. I have 42 seconds left, so I will send my thoughts in writing but in a nut shell under the Governmental Accounting Standards Board for contingencies which is commercially equivalent to GASB 5 you have to sorta make reserves for contingencies that are foreseeable or probable. The second item has to do with the insurance policies of the city if M:\2016\cm_2016_05_02.doc 5/19/2016 Page 16 of 29

17 the general liability policies would be void for facts surrounding the Juniper Knoll and is sorta one of the areas that I m asking for a full focus in the investigation and the third is the 2016 Goosefare Brook watershed report that read Today and sorta talks about what is one of the root causes of the contaminates and it has to do with something called impervious surfaces which is streets and roads and such things. But because I m out of time I will send in my thoughts on this to the Mayor, Councilors and City Administrator. Councilor Precourt moved, Councilor Johnston seconded to close the Public Hearing, and be it ordered that the City Council set the vote on the FY17 Municipal Budget, Water Resource Recovery Department., and Capital Improvement Program for May 9, Further move to approve the Order. The motion passed with seven (7) yeas. M:\2016\cm_2016_05_02.doc 5/19/2016 Page 17 of 29

18 Amendment 6 Background: RAD #1721 (Section 4 Page17) City Clerk Preservation of vital records Contracted Services $2,210 Ongoing $2,210 Amendment 6: Be it ordered that the City Council approve an increase to the City of Saco FY 2017 City Budget City Clerk from $174,990 decrease by $2,210 to $177,200. I move to approve the Order. Amendment 7 Background: RAD #1740 (Section 4 Page 37) Parks and Recreation Life Guards (original staffing) Temporary/Seasonal $21,231 Ongoing Benefits 2,335 Ongoing Minor Equipment 1,250 Ongoing Uniforms 1,250 Ongoing Program Clothing 1,500 Ongoing $27,566 Amendment 7: Be it ordered that the City Council approve an increase to the City of Saco FY 2017 City Budget Parks and Recreation from $872,793 decrease by $27,566 to $900,359. I move to approve the Order. Amendment 8 Background: RAD #1740 (Section 4 Page 37) Parks and Recreation Life Guards (new service) Recreation Department Fees $(40,000) Ongoing Use of Surplus (60,000) One-time Temporary/Seasonal 6,000 Ongoing Benefits 660 Ongoing Minor Equipment 60,000 One-time Capital Projects 6,250 Ongoing $(27,090) Amendment 8: Be it ordered that the City Council approve an increase to the City of Saco FY 2017 City Budget Parks and Rec from $900,359 decrease by $32,910 to $933,269 and use of surplus from $277,519 increase by $60,000 to $337,519. I move to approve the Order. Amendment 9 Background: RAD #1743 (Section 4 Page 38) Parks and Recreation Replenish the Agricultural Supplies Agricultural Supplies $5,000 Ongoing $5,000 Amendment 9: Be it ordered that the City Council approve an increase to the City of Saco FY 2017 City Budget Parks and Recreation from $933,269 decrease by $5,000 to $938,269. I move to approve the Order. Amendment 10 Background: RAD #1761 (Section 4 Page 51) Public Works Do not collect fees for the Transfer Station M:\2016\cm_2016_05_02.doc 5/19/2016 Page 18 of 29

19 Transfer Station Fees $100,000 Ongoing $100,000 Amendment 10: Be it ordered that the City Council approve a decrease to the City of Saco FY 2017 City Budget Public Works from $2,727,388 decrease by $100,000 to $2,827,388. I move to approve the Order. Amendment 11 Background: C1 (Section 5 Page 7) County Tax The final numbers have been received by County, the estimate was slightly low County Tax $ 1,474 Ongoing $ 1,474 Amendment 11: Be it ordered that the City Council approve a decrease to the City of Saco FY 2017 City Budget County Tax from $1,264,509 increase by $1,474 to $1,265,983. I move to approve the Order. Amendment 12 Background: Dyer Library (Section 5 Page 13) Supported Agencies The RAD #1762 for Dyer Library Dyer Library $54,288 Ongoing $54,288 Amendment 12: Be it ordered that the City Council approve a decrease to the City of Saco FY 2017 City Budget Supported Agencies from $779,876 increase by $54,288 to $834,164. I move to approve the Order. Amendment 13 Background: RAD #1750 (Section 4 Page 46) Police Department To replace the third cruiser Cruisers $33,500 Ongoing $33,500 Amendment 13: Be it ordered that the City Council approve a decrease to the City of Saco FY 2017 City Budget Police Department from $4,716,570 increase by $33,500 to $4,750,070. I move to approve the Order. Amendment 14 Background: Staffing (Section 4 Page 1) - Administration Additional staffing for Finance and Grants Clerical Wages $ 75,000 Ongoing Benefits $ 28,800 Ongoing $103,800 Amendment 14: Be it ordered that the City Council approve a decrease to the City of Saco FY 2017 City Budget Administration from $357,786 increase by $103,800 to $461,586. I move to approve the Order. Amendment 15 Background: RAD #1731 (Section 4 Page 28) Fire Department Remove ladder truck maintenance and provide ongoing maintenance City Vehicle Repair $(119,000) One-time Use of Reserves $ 129,000 One-time $ 10,000 Amendment 15: Be it ordered that the City Council approve a decrease to the City of Saco FY 2017 City M:\2016\cm_2016_05_02.doc 5/19/2016 Page 19 of 29

20 Budget Fire Department from $4,065,263 decrease by $119,000 to $3,946,263 and use of surplus from $337,519 decrease by $129,000 to $208,519. I move to approve the Order. Amendment 16 Background: Increase Parks & Rec Revenue (Section 4 Page 35) Parks & Recreation Increase the Parks & Rec revenue Recreation Department Fees $(40,000) Ongoing $(40,000) Amendment 16: Be it ordered that the City Council approve a decrease to the City of Saco FY 2017 City Budget Parks and Recreation from $938,269 decrease by $40,000 to $898,269. I move to approve the Order. Amendment 17 Background: Realize Savings (Section 4 Page 5) Assessment Realize the savings from Assessment reorganization Clerical Wages $(18,064) Ongoing Benefits $( 6,936) Ongoing $(25,000) Amendment 17: Be it ordered that the City Council approve a decrease to the City of Saco FY 2017 City Budget Assessment from $239,640 decrease by $25,000 to $214,640. I move to approve the Order. Amendment 18 Background: Overtime (Section 4 Page 24) Fire Department Defund the overtime request Overtime $(100,000) Ongoing Benefits $( 23,660) Ongoing $(123,660) Amendment 18: Be it ordered that the City Council approve a decrease to the City of Saco FY 2017 City Budget Fire Department from $3,946,263 decrease by $123,660 to $3,822,603. I move to approve the Order. Amendment 19 Background: RAD #1709 (Section 5 Page 5) Capital Improvements Increase the Capital Improvements to designate half of the cost of the Wash bay Capital Improvements $ 325,000 One-time Use of Surplus $(325,000) One-time $ 0 Amendment 19: Be it ordered that the City Council approve a decrease to the City of Saco FY 2017 City Budget Capital Program from $3,315,101 increase by $325,000 to $3,640,101 and the use of surplus from $208,519 increase by $325,000 to $533,519. I move to approve the Order. Amendment 20 Background: RAD #1744 (Section 4 Page 38) Parks and Recreation Defund the small parts request City Vehicle Repairs $(3,500) Ongoing $(3,500) Amendment 20: Be it ordered that the City Council approve a decrease to the City of Saco FY 2017 City Budget Parks and Recreation from $898,269 decrease by $3,500 to $894,769. I move to approve the Order. M:\2016\cm_2016_05_02.doc 5/19/2016 Page 20 of 29

21 Amendment 21 Background: RAD #1745 (Section 4 Page 39) Parks and Recreation Defund additional building repairs and maintenance Building Repairs and Maint. $(8,000) Ongoing $(8,000) Amendment 21: Be it ordered that the City Council approve a decrease to the City of Saco FY 2017 City Budget Parks and Recreation from $894,769 decrease by $8,000 to $886,769. I move to approve the Order. Amendment 22 Background: RAD #1757 (Section 4 Page 49) Public Works Defund minor equipment request Minor Equipment $(10,000) Ongoing $(10,000) Amendment 22: Be it ordered that the City Council approve a decrease to the City of Saco FY 2017 City Budget Public Works from $2,827,388 decrease by $10,000 to $2,817,388. I move to approve the Order. Amendment 23 Background: RAD #1760 (Section 4 Page 50) Public Works Focus department attention on city fleet, not school buses Public Works Revenue $10,000 Ongoing $10,000 Amendment 23: Be it ordered that the City Council approve a decrease to the City of Saco FY 2017 City Budget Public Works from $2,817,388 increase by $10,000 to $2,827,388. I move to approve the Order. Amendment 24 Background: No new vehicles (Section 3 Page 4) Capital Program Defund assets in capital program Lease Payments $(55,217) Ongoing $(55,217) Amendment 24: Be it ordered that the City Council approve a decrease to the City of Saco FY 2017 City Budget Capital Program from $3,640,101 decrease by $55,217 to $3,584,884. I move to approve the Order. Amendment 25 Background: Goosefare Brook (Section 3 Page 6) Capital Program Remove funding for Goosefare Brook impairment improvement Capital Improvements $(50,000) Ongoing $(50,000) Amendment 25: Be it ordered that the City Council approve a decrease to the City of Saco FY 2017 City Budget Capital Program from $3,584,884 decrease by $50,000 to $3,534,884. I move to approve the Order. Amendment 26 Background: Camp Ellis erosion RAD #1758 (Section 4 Page 50) Public Works Maintain current level of funding for Camp Ellis erosion. M:\2016\cm_2016_05_02.doc 5/19/2016 Page 21 of 29

22 Capital Improvements $10,000 Ongoing $10,000 Amendment 26: Be it ordered that the City Council approve a decrease to the City of Saco FY 2017 City Budget Public Works from $2,827,388 increase by $10,000 to $2,837,388. I move to approve the Order. Amendment 27 Background: Public Agencies RAD #1752 (Section 5 Page 17) Supported Agencies Maintain current level of funding to public agencies Meals on Wheels $ 186 Ongoing Saco River Corridor $ 372 Ongoing Bidd Saco Area Econ. Dev. $ 557 Ongoing Saco Pathfinders $ 99 Ongoing Veterans Council $ 37 Ongoing Saco Community Activities $ 465 Ongoing $1,716 Amendment 27: Be it ordered that the City Council approve a decrease to the City of Saco FY 2017 City Budget Supported Agencies from $834,164 increase by $1,716 to $835,880. I move to approve the Order. Amendment 28 Background: Overtime RAD #1727 (Section 4 Page 26) Fire Department Provide overtime to allow for professional development Overtime $30,000 Ongoing Benefits $11,220 Ongoing Tuition/Training $ 5,000 Ongoing $46,220 Amendment 28: Be it ordered that the City Council approve a decrease to the City of Saco FY 2017 City Budget Fire Department from $3,822,603 increase by $46,220 to $3,868,823. I move to approve the Order. Amendment 29 Background: Culverts RAD #1710 (Section 5 Page 2) Capital Program Funding for Route 1 culvert repair Capital Improvements $75,000 One-time $75,000 Amendment 29: Be it ordered that the City Council approve a decrease to the City of Saco FY 2017 City Budget Capital Program from $3,534,884 increase by $75,000 to $3,609,884. I move to approve the Order. Amendment 30 Background: York County Comm. Action (Section 5 Page 2) Supported Agencies Fund York County Community Action corporation budget request New Acct York Count Comm. Action $4,000 Ongoing $4,000 Amendment 30: Be it ordered that the City Council approve a decrease to the City of Saco FY 2017 City Budget Supported Agencies from $835,880 increase by $4,000 to $839,880. I move to approve the Order. Amendment 31 Background: Sidewalk (Section 4 Page 47) Public Works Finish sidewalk on Park Street. M:\2016\cm_2016_05_02.doc 5/19/2016 Page 22 of 29

23 Sidewalk Improvement $20,000 Ongoing $20,000 Amendment 31: Be it ordered that the City Council approve a decrease to the City of Saco FY 2017 City Budget Public Works from $2,837,388 increase by $20,000 to $2,857,388. I move to approve the Order. Amendment 32 Background: Tennis Courts (Section 3 Page 7) Capital Program Defund the Middle School Tennis Courts Capital Improvement $(100,000) Ongoing $(100,000) Amendment 32: Be it ordered that the City Council approve a decrease to the City of Saco FY 2017 City Budget Capital Program from $3,609,884 decrease by $100,000 to $3,509,884. I move to approve the Order. B. ZONING ORDINANCE AMENDMENT TABLE I2 ZONE (PUBLIC HEARING) Applicant Sure Winner Foods office is at 2 Lehner Road, a 4.3 acre parcel that includes three outbuildings, two which function as self-storage. The applicant would propose at least one more commercial structure but is hampered by the corner lot situation: with a front yard setback of 50 feet from both Industrial Park Road and Lehner Road, a significant portion of the parcel is rendered unbuildable. The applicant considered a contract zone to request a reduction of the front yard setback from Lehner Road to 25 feet. The Planning Board suggested instead an amendment to the Zoning Ordinance, allowing the front yard setback for parcels in the I-2 zone to be reduced to 25 feet if measured from streets that are not North Street, Industrial Park Road, or Lund Road. The I-2 district is fairly limited in area, and includes only four streets either within or abutting it: Lehner Road, North Street, Industrial Park Road, and Lund Road. The amendment affects two parcels: 1 Lehner Road, and 2 Lehner Road. The Planning Board considered and held a public hearing on March 15, The Board recommends that the amendment be adopted as proposed. Councilor Doyle moved, Councilor Johnston seconded to open the Public Hearing for the document titled, Amendments to Table and Footnotes, Amended January 19, The motion passed with unanimous consent. There were no public comments. Councilor Doyle moved, Councilor Minthorn seconded to close the Public Hearing and further moves to set the Second and Final Reading for May 9, The motion passed with seven (7) yeas. Amendment to Table and Footnotes, Amended March 15, 2016 (New language is underlined). 30. In the I-2 zone, the front yard setback may be reduced to twenty-five (25) feet for parcels with frontage on City streets other than North Street, Industrial Park Road and Lund Road. M:\2016\cm_2016_05_02.doc 5/19/2016 Page 23 of 29

24 M:\2016\cm_2016_05_02.doc 5/19/2016 Page 24 of 29

25 C. SPECIAL ENTERTAINMENT PERMIT KERRYMEN PUB (PUBLIC HEARING) John Kerry d/b/a Kerrymen Pub has applied for a renewal of their Special Entertainment Permit. The permit will be concurrent with the establishment s liquor license. The applicant has paid all applicable permit fees and the clerk has properly advertised the public hearing in accordance with the Saco City Code, Chapter 93 - Entertainment Councilor Doyle moved, Councilor Johnston seconded to open the Public Hearing. The motion passed with seven (7) yeas. There were no comments from the public. Councilor Doyle moved, Councilor Precourt seconded to close the Public Hearing and be it ordered that the City Council grant the renewal application submitted by John Kerry d/b/a Kerrymen Pub for a Special Entertainment permit to be concurrent with the establishment s current liquor license. Further move to approve the Order. The motion passed with seven (7) yeas. D. AMENDMENT TO SACO CODE: CHAPTER 99 FIREARMS (SECOND & FINAL READING) Saco is well-known for its horse farms and breeders in the Buxton Road/Louden Road areas. As equine enthusiasm continues to expand, an interest in western-style mounted cowboy shooting sports has developed as well. Enthusiasts of this activity have requested an ordinance change necessary to permit them to legally conduct competitions and demonstrations in the Shotgun Only zone. Currently this is not permissible by ordinance (Chapter 99 Firearms). The Saco City Code only permits the discharge of shotguns and muzzleloaders in the area where two of the primary horse farms with an expressed interest in mounted cowboy shooting sports are located. This sport does not involve discharging projectiles, as only blank cartridges are used. However, ordinance changes are necessary to permit the activity, as the firearms the blank cartridges are discharged from meet the federal, state, and city definitions of firearm. An additional issue the suggested changes attempt to address is to permit blank cartridges to be discharged for limited purposes (military ceremonies, theatrical purposes, etc). And finally, language/structural changes to the current ordinance were addressed as explained. City Council discussed during Workshop on March 14, 2016 and suggested revisions to Chapter 99. Councilor Precourt moved, Councilor Minthorn seconded Be it ordered that the City Council hereby ordains and approve the Second and Final Reading for the amendment to the Saco Code, Chapter 99-Firearms. Further move to approve the order. AMENDMENT Councilor Cote moved, Councilor Johnston seconded to amend section subparagraph #3 by adding the words and do involve the release of projectiles. The motion passed with seven (7) yeas. AMENDMENT Councilor Precourt moved, Councilor Johnston seconded to amend the ordinance by adding the words and the western style shooting will be done in a confined internal building The motion passed with five (5) yeas and two (2) nays Councilors Minthorn and Doyle. Mayor Michaud called for a vote on the main motion as amended. The motion passed with four (4) yeas and three (3) nays Councilors Roche, Minthorn and Johnston. E. ZONING ORDINANCE AMENDMENTS: TABLE MU3 ZONE (SECOND & FINAL READING) The developer of the Park North multi-use development asked that the Planning Board consider lessening frontage M:\2016\cm_2016_05_02.doc 5/19/2016 Page 25 of 29

26 requirements for parcels in the MU-3 zone, each side of Rte. 1 and North of Flag Pond Road and Cascade Road. The Board reviewed existing parcels and frontages, the Comprehensive Plan, and frontage requirements along Route 1 in nearby communities as part of its discussion. The Planning Board considered this in a series of workshops from August to December and held a public hearing on Jan. 19, The Board recommends that the amendments be adopted as proposed. The City Council discussed this item during Workshop on March 14, 2016 and held the first reading on March 28, Councilor Doyle moved, Councilor Precourt seconded Be it ordered that the City Council hereby ordains and approves. Further move to approve the order. The motion passed with seven (7) yeas. Amendments to Table and Footnotes, Amended January 19, 2016 (New language is underlined). Maintain 200 feet as required frontage for a parcel in the MU-3 zone, but, add footnote 28 to Table as follows: 28. If single point of access (curb cut) to Rte. 1 is shared between two or more parcels, frontage may be reduced to 150 feet for each parcel. M:\2016\cm_2016_05_02.doc 5/19/2016 Page 26 of 29