Finance Committee Agenda and Packet 2015 09 14

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Cityot Louisville COLORADO • SINCE 1878 CITY COUNCIL COMMUNICATION AGENDA ITEM 8F SUBJECT: DATE: CITY -WIDE MARGINAL COST FISCAL MODEL UPDATE SEPTEMBER 14, 2015 PRESENTED BY: SCOTT ROBINSON, AICP, PLANNING AND BUILDING SAFETY DEPARTMENT SUMMARY: The City contracted TischlerBise, Inc. to create a new marginal cost fiscal impact model to replace the City's current average cost model. The fiscal model is used to estimate the fiscal impacts of proposed development. The fiscal model takes proposed development by land use type (retail, office, residential, etc.) and other inputs and computes projected tax and other revenues and projected operational and capital expenditures. The proposed fiscal model will be used by City staff in three areas: 1. Estimating City -wide fiscal impacts associated with various land use scenarios developed as part of any Comprehensive Plan Update, or Small Area Planning process; 2. Evaluating the municipal fiscal impacts anticipated with various proposed individual land development applications; 3. Clarifying the City's levels of service during City Council goal setting, budgeting, and long -range staffing analysis. The consultant has agreed to create two models, one marginal cost model for City -wide planning and budgeting, and one average cost hybrid model for evaluating individual development proposals. The two models use the same assumptions of capacity and levels of service. The City -wide model was presented at the June 29 Finance Committee meeting, during which Committee members asked to verify the inventory of City facilities. Staff is currently updating the counts of parks, recreation, and trails facilities, and the model will be updated accordingly soon. The Committee also asked staff to test out the model with the development scenarios from the South Boulder Road Small Area Plan. Attached are inputs and outputs for the one, two, and three -story alternatives, as well as a "likely buildout" estimate from staff. The three -story alternative is equivalent to the full buildout under the current zoning. Staff has noticed a couple errors with costs being allocated to areas with no development and revenue being allocated to the Urban Renewal Authority for development outside the URA and we are working with TischlerBise to correct them. Staff requests any additional questions or comments from the Committee that need to be addressed before the model is presented to the full Council for adoption. CITY COUNCIL COMMUNICATION