HomeMy WebLinkAboutPPP PH3a and PH3 LUCE UpdateLAND USE AND
CIRCULATION
ELEMENTS UPDATE
City Council Meeting
October 7, 2014
Recommendation
Receive presentation on Fiscal Impacts of the
Land Use and Circulation Elements.
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Scope of the Fiscal Analysis
Estimate City costs and revenues associated
with planned land use and circulation
improvements
Focus on General Fund operating and
maintenance costs for services and facilities
Funding needs for facilities and infrastructure
Funding capacity and gaps for existing
development impact fees
3
Annual General Fund Revenues
4
Major revenues include:
•Property tax – AB 8 allocation and in-lieu of motor vehicle
fees
•Sales tax – General, public safety, and ½ cent approved
by voters for essential services (Measure Y)
•Transient Occupancy Tax
•Business tax
•Utility tax
•Franchise taxes
•Service charges
Total Revenues from LUCE Land Uses
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Major Annual Service Costs
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Police protection
Transportation – added costs for new programs and
deferred maintenance
General Fund contributions to CIP and debt service
Fire protection and emergency medical response
General government services – added costs for
deferred maintenance
Leisure, cultural and social services
Community Development, not including entitlement
processes funded by permits and fees
Total Expenditures from LUCE Land Uses
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Net Fiscal Impact by Land Use
8
Net Fiscal Impact by Project Type
9
Additional Costs Proportionally Ascribed to
Existing Development
Maintenance on new LUCE road improvements
Maintenance on new Class I bikeways in Bicycle
Transportation Plan
Costs of new transportation programs
Operations for new fire station (38%)
Related General Government costs
These items add $2.67 million to City costs and reduce
the annual net revenues to $452,700
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Estimated Existing Impact Fees to be Paid
by LUCE Development and Corresponding
Facilities Costs
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($millions)
LUCE Facilities Funding Gap
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Transportation: $39.8 million
Water Facilities: $5.1 million
Parks: $17.3 million
Police Station: $8.1 million
Fire Station: $2.2 million
Total: $72.5 million
Potential Funding Sources
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New/Expanded Development Impact Fees
•City’s impact fee program needs overhaul
State and Federal Grants
Regional Transportation Funds
Land Base Financing
The proposed LUCE land uses provide for a sound
fiscal balance for the City in the future, even helping
to correct some deferred maintenance issues.
The transportation improvements and programs
would add cost to the City budget, but revenues
generated by new development should be sufficient
to pay for these programs over the long run.
There are funding gaps for new facilities, and it is
critical that the City develop a comprehensive
financing plan to address capital costs.
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Fiscal Impact Conclusions