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HomeMy WebLinkAboutResolution 115-93 RESOLUTION NO. 115-93 A RESOLUTION OF THE COUNCIL OF THE CITY OF ATASCADERO AMENDING THE CITY'S GENERAL PLAN BY THE ADOPTION OF A FISCAL ELEMENT (GPA 92-009; City of Atascadero) WHEREAS, the City of Atacadero has grown considerably since incorporation; and WHEREAS, the City's General Plan, which was prepared and adopted in 1992 to guide the City's general growth is in need of amendment; and WHEREAS, the Planning Commission of the City of Atascadero conducted a public hearing on the subject amendment on August 3, 1993; and WHEREAS, the City Council of the City of Atascadero considered said amendment on September 28, 1993, and at a public hearing on November 30, 1993; and WHEREAS, Government Code Section 65356 provides that a General Plan be amended by the adoption of a resolution; and WHEREAS, the Council of the City of Atascadero finds as follows: 1 . The proposed General Plan Amendment recommended by the Planning Commission is consistent with the goals and policies of the General Plan. 2. The proposed General Plan Amendment will not have a significant adverse affect on the environment. The Negative Declaration prepared for the project is adequate. THEREFORE, the Council of the City of Atascadero does resolve to approve General Plan Amendment GPA 92-009 by the addition of a Fiscal Element as shown in the attached Exhibit A. On motion by Councilmember Luna and seconded by Councilmember Bewley, the foregoing resolution is hereby adopted in its entirety by the following roll call vote: AYES: Councilmembers Bewley, Luna and Mayor Nimmo NOES: None ABSENT: Councilmember Borgeson and one (1) seat vacant Resolution No. 115-93 Page 2 ADOPTED: November 30, 1993 CITY OF ATASCADERO By: ROBERT P. NIMMO, Mayor A TTEI LEE RA OIN, City derk APPROVED AS TO FORM: ART MONTAND N, Cit Attorney PREPARED BY: 4'AU-,4-A '5�/00, HENRY ENGEN Communit Development Director Resolution No. 115-93 Exhibit A FISCAL ELEMENT CITY OF ATASCADERO, CALIFORNIA Resolution No. 115-93 Exhibit A TABLE OF CONTENTS PAGE Iv. FISCAL ELEMENT A. LAND USE IX-1 B. FISCAL PLANNING IX-2 C. NEW DEVELOPMENT IX-3 D. REVENUE ENHANCEMENT IX-3 E. BUDGET PRACTICES IX-5 Resolution No. 115-93 Exhibit A IX. FISCAL ELEMENT A basic community goal contained in the Land Use Element is that Atascadero should "provide for a sound economic base to sustain the City's unique life style '. In pursuit of this goal, the City re-tained Economic Research Associates, in 1988, to prepare their two volume Economic Base Analysis and Downtown Revitalization Study. The emphasis in this study was on the private sector of the economy and proposed policies to capture market share. Analysis and recommendations pertaining to the City's operations were contained in the award-winning City of Atascadero Long Range Fiscal Analysis, prepared by Crawford, Multari & Starr in December 1990. This Fiscal Element of the General Plan includes policies and pro-grams that are consistent with and are intended to reinforce and build upon those included in the Land Use Element, in the Economic Base Analysis and that were proposed as part of the Long Range Fiscal Analysis report. A. LAND USE Policy A-1: The City may consider fiscal implications, through a cost/benefit analysis, of revisions to the General Plan, including but not limited to changes to the Land Use Element text and map. Rationale: The City Council must consider numerous factors when making decisions about General Plan revisions. These include community preferences, environmental impacts and other quality of life issues. This policy simply states that among these factors, the economic costs and benefits of land use or policy choices will be estimated and included in the decision-making process. Policy A-2: The City may consider adjustments to the amount and mix of land designated for single family and multi-family residential uses, including industrial, commercial and other non-residential uses to accommodate market preferences as planned capacity becomes limited in the future. Rationale: Long range land use projections suggest that the General Plan capacity for multi-family may be high, consider-ing past trends, and that its capacity for single family residential may be built-out in about 10 years. From a fiscal standpoint, single family units produce more revenue than multi-family ones. Aside from capital costs, operating expenses are comparable. Therefore, converting some of what may be excess multi-family capacity to accommodate single family residences may be appropriate in the future if consis-tent with the Housing Element. IX-1 Resolution No. 115-93 Exhibit A Policy A-3: The City shall allow a variety of housing types in multi-family districts. Specifically, the City will allow (subject to discretionary review and after considering other factors such as environmental impacts, neighborhood com- patibility, affordability and project design) planned development and/or condominium projects which allow detached units on individual lots or as airspace condominiums in multi-family districts. Rationale: In general, detached units generate more revenue to the City than attached units because of their higher market value and more frequent resale. if adequate development fees are charged for needed infrastructure, most service costs appear to be comparable. Therefore, if the private sector is willing to build such units, the City's planning and zoning regulations should at least allow them to be considered. Of course, other important factors should be considered in the decisions about approving such projects. Program A-1: The City will develop a geographic information system to track the build out status and remaining capacity of different types of land uses. This system should help the City make adjustments to the future land use mix to best meet the community's needs. Program A-2: The City will continue to use its PD ordinance and related regulations to allow projects which propose detached units in multi-family districts to be considered. Program A-3: The City will examine its land use districts and may establish special categories for properties which are especially appropriate for future retail uses which will help capture present Leakage and/or attract shoppers from the region. The special categories may limit the allowed types of uses to those that will best enhance the City's tax base; specific design standards may also be required which will help ensure that the project enhances its retail potential while being sensitive to Atascadero's character and to downtown. Opportunities may include commercially zoned land on North EI Camino and vacant land near Highway 101 and Santa Barbara Road. B. FISCAL PLANNING Policy 13-1: The City shall continue to take a long range view of its fiscal condition, and specifically the possibility of enhancing revenues, in order to maintain and, where possible and desirable, enhance current levels of service. IX-2 Resolution No. 115-93 Exhibit A Rationale: This policy simply articulates the current philosophy that good long range planning will include an understanding of the City's financial condition. Program B-1: The City will work towards preparing a long range economic plan (often called a "strategic plan") to develop a strategy for future fiscal health so that projected levels of service can be maintained and enhanced. This strategic plan may be incorporated into the General Plan as an "Economic Element". This approach ensures consistency with the various goals and policies in the General Plan and builds upon the information and recommendations in this report and the Economic Base Analysis. Program B-2: The City will annually adjust its long range revenue and expenditure projections to track changes in the City's situation, so that both problems and opportunities can be anticipated and planned for. C. NEW DEVELOPMENT Policy C-1: New development should pay its share of the costs of providing all capital facilities needed to support it; pay-ment may be in the form of actual construction of facilities where appropriate as conditions of approval and/or by the payment of fees, among other possibilities. Rationale: New facilities are needed in the community and new development must contribute to the construction of such facil-ities. Program C-1: The City will review its developer fees on an annual basis. Program C-2: The City will continue to utilize and refine its fiscal impact model to estimate the specific financial impacts of changes in land use and new development projects; this model should help to evaluate impacts of individual projects and recommended appropriate mitigation measures. D. REVENUE ENHANCEMENT Policy D-1: The City shall continue to seek ways to create a diverse and growing financial base to generate sufficient revenue to maintain current service levels; emphasis will be given to non-tax sources. IX-3 Resolution No. 115-93 Exhibit A Rationale: The Long Range Fiscal Analysis suggests that if the City wishes to maintain current levels of service, revenues will need to be increased faster than projected considering General Plan build-out rates. Therefore, new revenue sources must be examined. Emphasis should be given to non-tax sources to avoid complications with the appropriations limit and state budget constraints. Policy D-2: The City shall review and, if necessary, in-crease sewer and any other enterprise fund fees at least biannually to keep pace with inflation and real operating costs. The City shall not postpone needed increases. Any fee schedule shall consider, however, other important factors such as affordability to all segments of the population. Rationale: It is sometimes difficult, in a political frame-work, to raise fees to keep pace with real costs, particularly inflation. This would articulate again City policy to not postpone increases and would require review of fees. See Programs A-1 through A-3. Program D-1: As appropriate, the City will develop more detailed plans for road/bridge systems, and drainage sub-basins; these plans should recommend which specific projects may be appropriate for funding through assessment districts. The City will then begin the formation of assessment districts to fund the costs of such capital projects. Program D-2: The City will prepare a cost recovery analysis which will assess real costs of providing various services and the possibility of charging for said services. The Council will establish cost recovery categories and priorities ranging from maximum recovery (eg: 80 - 100% recovery) to minimum recovery (eg: less than 20% recovery). Services will be placed into each of the categories and appropriate fees charged accordingly. The Council will establish goals and/or priorities both city-wide and for individual funds for cost recovery. Program D-3: The City will work with the League of Cities toward amendments to the spending appropriations limits to provide greater flexibility in the use of future tax monies. Program D-4: if the appropriations limit is exceeded, the City will request approval from the voters of an extension of the limit. Specific projects and/or services will be tied to the use of funds authorized by the voters. IX-4 Resolution No. 115-93 Exhibit A Program D-5: The City may consider the creation of a redevelopment district. Tax increments generated in such a district might be used to fund improvements to City Hall and to streets and drainage infrastructure, and to enhance commercial properties, among other uses. Program D-6: The City will continue to support an "Atascadero Economic Round Table" composed of diverse representation of the business community and residents to discuss, recommend and start community economic development and diversification. Program D-7: The City will study opportunities for leasing City property for appropriate and compatible private enterprises. Program D-8: The City will study opportunities to sell excess City-owned property not needed for public purposes. Program D-9: The City will require full administrative support cost recovery in enterprise funds and payment to the General Fund for such costs. E. BUDGET PRACTICES Policy E-1: The City will articulate its principles and policies regarding sound financial planning and budgeting. These policies shall be adopted by resolution and may be incorporated into the General Plan. These shall include guidelines for investments, reserves and use of debt. Rationale: This policy requires the City's financial policies to be articulated and integrated with other City planning and policy documents. Policy E-2: New capital projects should primarily be funded from revenues outside the general fund; such fincinces shall include but not be limited to user fees and service charges, assessment districts, voter-approved special taxes, and through developer fees and conditions of approval where the facilities are tied to specific users/developments. Rationale: This policy suggests that general fund monies should primarily be used for operating expenses and that capital programs come from special funds tied explicitly to the facilities. IX-5 Resolution No. 115-93 Exhibit A Policy E-3: The City will give priority to using debt financing under the following conditions: a. The project is a one time capital facility. b. The facility (through user fees, service charges or benefit assessments) will generate reliable and sufficient revenue to substantially pay for the costs of the financing, or if special taxes are approved by the voters. C. The proposal will not significantly affect the City's credit rating. d. The useful life of the facility exceeds the term of the financing. Rationale: This policy simply states basic guidelines for the use of debt financing that helps ensure that this kind of funding is not used inappropriately. Policy E-4: The City will retain fund balances in the form of "bottom line" contingencies adequate to protect the City. Short-term funding sources shall not be used to pay for new ongoing expenses. Rationale: Clearly, some prudent level for fund balances should be adopted for emergencies and other contingencies; care should be taken not to create new long term programs based on unreliable funding sources. Policy E-5: The City will strive for greater operational efficiency; all new positions and any proposed expansion of the scope of services will be evaluated by an adopted pro-cedure which helps ensure that new costs are considered and that reasonable alternatives to provide the services more cost- effectively are considered. Rationale: Besides finding new funding sources, cost con-trots can be exercised. Of particular importance is restraint in expanding into new service areas without clear funding ability. Also, greater productivity of existing resources may be possible. Of particular importance are better technology, tools, tools and training for employees. Policy E-6: The City will continue to maintain an annually updated Capital Improvements Program (CIP) which forecasts needs at least five years into the future. Said CIP should include: IX-6 Resolution No. 115-93 Exhibit A . a list of projects, . timing, . cost estimates, . project manager/or responsible department, . funding sources, and . possible revenues The City shall also clarify guidelines for setting priorities among projects and for new property acquisitions. Rationale: A framework for a good CIP is included in the Long Range Fiscal Analysis. Regular updates will allow adjustment to meet changing needs. It will also allow for effective planning. Also, some way of setting priorities among projects should be established, especially as funds become limited. Program E-1: The City will establish a procedure and stan-dards to evaluate new programs; said procedure and standards will explicitly state real costs and benefits of the program and an evaluation of alternatives. Program E-2: The City will establish procedures for evaluating requests for new positions: These shall include an evaluation of the following: the necessity of the position, its term and expected results of the activity served by the new staff, full cost estimates including support and equipment, an analysis of the ability of the private sector to provide the service, and estimate of offsetting revenues or savings. Program E-3: The City will establish a program for increasing efficiency. Said program may include the following: analysis of systems and procedures to remove unnecessary steps and redundancies; provision of new technology and tools to improve productivity; provide adequate and ongoing training to staff; reward exceptional performance; assess ability of the private sector to provide service at lower costs (eg: construction, maintenance, professional and special studies, peak work load needs). This last element must include guidelines regarding the reliability of the private sector to perform the service and accountability for the results. IX-7