Valley Center’s City Council on Monday approved a contract not to exceed $25,000 with consulting firm Baker Tilly to build financial models for the city’s Tax Increment Financing (TIF) district and structure several upcoming bond financings.

Clint Miller, speaking for city staff, told the council the city faces multiple TIF-related payments coming due and that prior revenue models are no longer reliable after Army Corps permitting delays. He gave a breakdown of the near-term obligations, saying the city faces roughly $17.6 million in outstanding bonds and special assessments over several years and that about $11.1 million of that tied to TIF currently lacks a clear revenue source. Miller said the first major bond comes due June 1, 2026, creating a short planning window.

"We have a number of these bonds for these TIF districts that are about to come due," Miller said. He described Baker Tilly’s suggestion to convert some bonds from 10-year call restrictions to 5-year calls to gain flexibility, noting there would be a modest premium and slightly higher interest costs for the shorter call structure.

Council members asked about cost limits and timeline. One council member proposed authorizing up to $25,000 for the initial work and requiring staff to return if costs exceed that cap. Miller said Baker Tilly estimates the initial phase would take about 60 to 75 days and that anticipated fleet-refinancing savings could pay for the consulting work without impacting the 2026 budget.

Council member Dale moved to approve the contract with the $25,000 initial limit and the council voted to carry the motion.

Why it matters: Valley Center’s TIF district was delayed by permitting and has fallen behind original revenue expectations. The Baker Tilly engagement is intended to produce refinancing and structuring options to reduce near-term risk and, potentially, identify revenue or timing approaches to avoid budget disruption. Miller also flagged high staff turnover as a separate but related concern for city operations.

Next steps: Staff will proceed with Baker Tilly’s initial modeling work and will update council if costs will exceed the $25,000 authorization or if additional phases are proposed.