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populations less than 30,000 have an additional threshold called the "De Minimis Rate" that is calculated differently (not shown here), would exceed the Voter -Approval Rate and would give the city the ability to raise additional Property Tax without triggering the election. In this situation, an election would only be required if the final requested property tax rate exceeded both the Voter Approval Rate as well as the De Minimis Rate. It is not recommended that the City of Paris utilize this additional growth created by the De Minimis Rate unless necessary. From professional experience working in the State of Nebraska which has had a "Growth Restriction' for 20+ years, it is strongly recommended that the City of Paris attempt to utilize this allowed growth each year, when needed, in order to keep up with the growing costs of performing the Financial Policy. The costs that the City sees (third party, professional services, benefits, insurance, fuel, etc.) is not limited by this same legislation, therefore if the City falls behind, it could find itself unable to keep up, thus cutting services. Fortunately, the legislation is currently written such that a City can still utilize unused growth within three years (if the City utilizes 2.5% of the allowed 3.5% in year one, it can still use that additional 1% within the next three years). After that though, the City forever loses that growth potential, thus the road to falling behind begins. Utilizing the 3.5% growth each year, when needed, also allows for steady and healthy increases instead of drastic and last minute ones. I am in no way proposing that we arbitrarily increase the property tax for M&O each year by 3.5% if it is not needed. But if the service calls for this, given the legislators have already acted on behalf of the general public by limiting the growth potential, the 3.5%, which is not a lot to work with, would be reasonable to utilize when necessary. Reasons for Salient, Chanes from the Previous Fiscal Year So as not to repeat myself, please see Sections 43(7) and 43(8) below, which are combined in this memorandum. ChpSgswin Financial Policy The Financial Policy for FY23/24 is the same as given in FY22/23. City of Paris Charter — Article V — Section 43(2) "A consolidated statement of receipts and expenditures for all, funds. " Page 16 of 23