061004 - Laserfiche WebLink

Browse Search

CIP Report — FY 2004/2005 - 3 - June 10, 2004 revenues and the Governor would lobby and "champion" this new overriding compromise Initiative, provided it does not take effect until the 06107 fiscal year. Thus, local governments would be agreeing to a temporary, loss of local tax revenues to be fully restored (including the growth on the shifted property tax money) in two years. With the Governor's recent track record of success at the ballot, leaders of these LOCAL government organizations are recommending strong support for this proposal. Should the state's budget proposal — along with the compromise Initiative move forward - it would mean a loss of $4,500,000 to $5,000,000 over the next two years. This represents approximately 25% of the District's property tax revenues and will have a significant impact on the District's ability to take on the same number of capital projects as we have enjoyed the past few years. However, beginning in 2006-07, the District would be able to plan for short and long-range capital improvement projects with greater stability and confidence than any time since 1978. If both the LOCAL Initiative and the Governor's compromise Initiative fail this November, then the District could suffer even greater property tax shifts, and long-term capital planning will be more difficult as each budget will critically depend on whether the State decides to take local property taxes for State purposes. Since the State has not adopted it's budget as of the date of this memo, future events could cause much of the preceding discussion to be moot or significantly off the mark. However, the above information is based on best information available as of this date. Major Funding Sources for Capital Projects Park Development Fees (PDF) Money for new park development, recreation and facilities and major capital repairs and replacements has traditionally come from "Quimby Fees" connected to development of new residential dwellings. As the City approaches build -out, that revenue source is virtually drying up. In fact, from March 2003 through March 2004, only $23,000 total was generated in five of the six zones within the District. Zone 1 did receive $250,000 from seven different primarily multi -family and apartment projects. With the proposed Capital Improvement Project Budget, 5 of the 6 zones will have a zero or negative balance of PDF funds absent an infusion of additional PDF during the coming year. Thus, the District must now rely primarily on other types of revenues (partnerships, grants, donations, intergovernmental collaboration, and the assessment districts to support capital projects.