City Council Agenda and Packet 2005 07 12 SP

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~/11/os TI TO: MAYOR AND CITY COUNCIL FROM: WILLIAM A. SIMIMONS CITY MANAGEIR DATE: July 12, 2005 SUBJECT: City Wide Comprehensive Plan 2005 Update ORIGINATING DEPARTMENT: Planning Fiscal Analysis A summary of the fiscal analysis will be presented by Bill Cunningham of the Leland Group. Tab 15 in the Council notebook has both the original fiscal analysis prepared in February of 2005 and the most recent one which was run based upon the assumptions recommended by the Planning Commission in June of 2005. The fiscal analysis is a tool to assist in the evaluation of land use proposals which create those ultimate entitlements which wouldl result in the greatest long-term benefit to the residents of the City of Louisville. The term `benefit' is equated with the City's ability to allocate resources to maintain or enhance the current level of service proviided to the residents of the City into the future. The ability to maintain a level of service- by service sector department and absorb additional residential development at the same time requires a high level of confidence that the necessary retail sales tax generation will off-set the increased capital costs generated by that residential development. Residential impacts fees or capital improvement fees are charged to new residential development to assist in defraying the added costs and impacts associated with the incremental impacts of that development. Maintaining surplus capital revenues relies fully on sales tax infusion, and substantial operational surplus funds, which can be transferred to the cz~pit<~1 side. Without those revenues, the high capital costs of transportation and open space and or park land required to support residential would quickly become a fiscal liability to the City. Transportation costs are the clearly the primary cost for non-residential development. However, in many cases the high costs of transportation associated with non-residential development on the City are off-set by the reductions experienced in the Departments of Land Management and Recreation and Senior Services which allocate a high percentage of those respective budgets to support residential development. SUBJECT City V~~ide: Comprehensive Plan Update 2005 AGENDA ITEM Q