In the 2015-16 deliberations about the Nishi 2016 proposal, the City’s economic consultant EPS presented to the Finance and Budget Commission (FBC) its initial model of costs and revenues, which showed a $78,000 deficit fiscal impact for the City in the first year of full buildout, which later grew to $106,000 after correction of a math error in the model. The FBC rightly noted that $106,000 annual deficit would come out of the pockets of Davis taxpayers.
In the robust discussion that ensued, some of the FBC members argued that the discussion should include a “cash accounting” approach in addition to the “full life-cycle accounting” approach EPS was using in their model. The explanation was that many of the expenses included in the EPS model had already been “pre-spent” by the City and would not have to be immediately re-spent. FBC member Dan Carson calculated an estimated amount of $734,000 per year (out of an estimated total expense budget of $1,532,000), which was a 48% reduction.













