City Council Study Session Agenda and Packet 2008 02 26

Home Browse Search

N TO: MAYOR AND CITY COUNCIL FROM: MALCOLM FLEMING CITY MANAGER DATE: FEBRUARY 26, 2008 SUBJECT: FISCAL ANALYSIS -UPDATE ORIGINATING DEPARTMENT: PLANNING Summary: As part of the City Manager's 2007 - 2008 goals, the Finance and Planning Departments have been actively reviewing the current fiscal analysis model. The review has been initiated in response to concerns raised by the Planning Commission, the City Council and the public. The primary interests are to update and validate the assumptions used in the model and to ensure that the methodology properly differentiates the fiscal impact of specific land uses. As part of the 2005 City Wide Comprehensive Plan the LE;land Consulting Group conducted a city wide fiscal impact analysis. The analysis was incorporated into a fiscal impact model used to evaluate both the short and long term fiscal effects of projected land use patterns and development policies recommended by the Comprehensive Plan. Following the approval of the City Wide Comprehensive Plan the City Council approvecl Resolution No. 38, Series 2005 which established a phasing goal for residential developrr~ent (attached). The Resolution also requires that a fiscal impact analysis that addresses both operating and capital expenditures of the City be a required submittal as part of any residential development application, including annexations, rezonings, subdivision plats, planned unit developments and special review uses. Developers have complied with that requirement by using the fiscal impact model developed by Leland. However, the results produced by the fiscal impact model have been questioned when presented at the Planning Commission level. Specifically, the model appears not to adequately differentiate the fiscal impact of industrial, office and retail land uses. It also does not address issues of retail "cannibalization" and "leakage:" (i.e. new establishments taking some business away from existing establishments and loss of retail sales revenues to other adjoining jurisdictions). To address these concerns, Kevin Watson, Finance Director, first reconstructed a model using the same "average cost" methodology as the Leland model. Then, working with comments from the City Manager and Paul Wood, Planning Director, Kevin updated the data on which the model assumptions are based and is making changes intended to resolve the problems identified in the existing model. Staff will review the key changes made on the model to date, SUBJECT Fiscal Analysis Update AGENDA ITEM City Council Update