07/24/1989 Meeting - Laserfiche WebLink

Home Browse Search

4. Investment in existing infrastructure and creation of new infrastructure to reduce operating costs, respond to council and community goals, and to foster economic diversification are critical to addressing the overall financial situation. Mr. Wong said that in the FY90 budget, $800,000 of the General Capital Projects Budget is not funded. The City Manager's proposal, as affirmed by the Budget Committee and council, is to fund these capital projects by a combination of service reductions/adjustments and user fees/minor revenue sources. Thus, the work on the Development Service Financing Study is critical to ultimate realization of the adopted FY90 budget. Mr. Wong said development -related services include but are not limited to land use and zoning, building permits and inspections, safety inspections, business assistance and development, and economic diversification. He said that this study will focus on development services supported by the General Fund. Mr. Wong reviewed a chart depicting the City's current resources and requirements. The resources generated by user fees total $1.1 million. The requirements total $5.6 million. This leaves $4.5 million worth of services that are not currently funded by user fees. Mr. Wong reviewed the methodology for the study. He said the technical analysis will consist of: identifying all development -related services; identifying the direct and indirect costs of providing each service; • determining appropriate user fee support for development services; identifying existing user fee support; determining if adjustments to the existing user fees are feasible and develop recommendations for changes; if not, identifying new user fees to meet the policy level established for user fee support, and initiating a process to secure new or enhanced user fees. Mr. Wong said the full council can be involved in this study, or the study can be processed through a council committee. He said staff recommends that the study be processed through the Council Committee on Economic Diversification (CCED), with feedback to the full council. Mr. Holmer asked how the levels of user and nonuser fees should be related. Mr. Gleason said staff believes this is a policy decision that the council must make. Mr. Rutan said the goal of the Development Services Financing Study should not be to rationalize a policy of 100 percent recovery of costs through user fees. Rather, the study should give council the information it needs to set policy regarding user fees. Mr. Boles suggested that the study be processed through the Council Audit Committee rather than CCED. He said CCED already has its own agenda and a set framework through which it analyzes issues. He thought it would be best to process the study through a committee with a broader perspective. Mr. • MINUTES --City Council-- July 24, 1989 Page 2 Dinner/Work Session