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City Council Meeting Minutes March 1, 2022 total tax rate, it would include a rebate of the I&S taxes which cannot be paid from the Debt Service fund. This means that portion would come out of the General Fund so, potentially, more money would come out of the General Fund than has been deposited by the company. Throughout the proposed policy, we tried to follow best practices of what other jurisdictions have done and evaluate if they would also work here in San Marcos. This would be something where San Marcos would be unique in pursuing this path, so there is a trade-off to be considered between the potential to retain additional taxes paid to the City which is, of course, always desirable versus San Marcos being seen as less competitive and losing out on prospects at the beginning by not being open to offering what other cities are offering. Discussions were held about the property taxes paid, but there are other items that staff tries to capture when evaluating the economic and fiscal impact to the city. As part of the agreement with the City, the Greater San Marcos Partnership performs an economic impact analysis that estimates items such as sales tax revenue, utility revenue, salaries paid, and property tax revenue paid to other jurisdictions like the school district and the county. Looking at a more holistic net benefit to the community as much as we can. This is an example of how what is paid to other jurisdictions has been shown in previous project presentations. This estimates the benefit to the City, San Marcos CISD, and Hays County. The scoring matrix has been updated for Chapter 312 Agreements, Chapter 380 Agreements, EDSF, and Fee Waiver requests. Because it is an economic incentive, the scoring is allotted most heavily for economic & fiscal impact at 70 points, 10 points for environmental sustainability, 10 points for labor force practices, and 10 points for cultural & quality of life considerations. There is also a potential for a project that makes an extraordinary impact economically or to the community to garner additional points. While, in theory, a project could come in that checks all the boxes for the base points and the extra points to score up to 120, which would be very fortunate. The maximum score that would influence incentives given is still capped at 100. The extra points are there so that a project that might miss a few points for something in the base categories but could still have an extraordinary impact or go above the norm for integration in the community, could still have the opportunity to have that reflected in the application. The scores determine the amount of an incentive to consider. These thresholds are the same as what is in the current policy with one exception that will be covered. 81-100 is up to 80% of the net present value of the estimated total tax liability or up to $200/job per year up to 10 years. 71-80 points is up to 70% of the tax liability and $150/job. 60-70 points is up to 60%, but unlike the current City of San Marcos Page 5