Valley Center’s City Council on a voice vote approved a contract with consulting firm Baker Tilly to model and advise on upcoming tax-increment financing (TIF) district bond maturities and related financing questions.

City staff told the council that the Valley Center TIF district — which includes the area around the new school — was delayed by additional Army Corps of Engineers permitting and that many of the earlier revenue models no longer match current conditions. Staff reported a set of bond maturities that together total roughly $17,600,000 and said about $11,100,000 of that amount is TIF-related debt without a clear revenue source at present.

Staff described three priorities for the Baker Tilly engagement: (1) model how quickly parcels in the TIF area could be developed and produce updated revenue projections, (2) propose structuring options for the two upcoming TIF bond financings, and (3) provide short-term modeling support related to a geobond for the recreation center and associated cost allocations. Baker Tilly reportedly suggested some structuring flexibility such as offering five-year calls on certain bonds (instead of typical 10-year calls) to allow earlier refinancing if development accelerates.

Council members also heard that city employee pay lags peer cities: staff reported a roughly 26% turnover rate in 2025 and said neighboring towns had offered larger pay increases, contributing to the recruitment and retention problem. The presenter recommended a two‑phase approach: an immediate technical engagement with Baker Tilly to address the bond timeline and a possible later phase to study pay adjustments if budget flexibility allows.

The contract presented to the council was capped at $25,000 (monthly wording appears in minutes but council discussion framed the approval as an initial amount not to exceed $25,000), and staff said that savings from planned vehicle refinancing would allow the city to fund the engagement from reduced general-fund transfers to fleet, avoiding a 2026 budget impact. Council members asked for regular updates and a possible return to council if the work appeared likely to exceed the $25,000 authorization.

What happens next: staff said modeling work must proceed quickly because the first referenced bond maturity is due in mid-2026 and council discussed the potential need to refinance or restructure before that date.