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HomeMy WebLinkAbout2004 08 04 Public Hearings Item B . . . PLANNING & ZONING BOARD / LOCAL PLANNING AGENCY AGENDA ITEM B Consent Informational. Public Hearing X Regular August 4, 2004 Meeting REQUEST: The Community Development Department - Planning Division requests that the Planning & Zoning Board / Local Planning Agency hold a Public Hearing to consider Ordinance 2004-35, related to the proposed Capital Improvements Program for FY 2004/05 through 2009/1 O. PURPOSE: The purpose ofthis Agenda Item is to request that the City Commission adopt the proposed Capital Improvements Program, which would serve as a five-year schedule of capital improvements and financing methods. APPLICABLE LAW AND PUBLIC POLICY: Florida Statutes. Chapter 163.3177(3)(a): The comprehensive plan shall contain a capital improvements element designed to consider the need for and the location of public facilities in order to encourage the efficient utilization of such facilities and set forth: 1. A component which outlines principles for construction, extension, or increase in capacity.of public facilities, as well as a component which outlines principles for correcting existing public facility deficiencies, which are necessary to implement the comprehensive plan. The components shall cover at least a 5-year period. 2. Estimated public facility costs, including a delineation of when facilities will be needed, the general location ofthe facilities, and projected revenue sources to fund the facilities. 3. Standards to ensure the availability of public facilities and the adequacy of those facilities including acceptable levels of service. 4. Standards for the management of debt. CDD/July 27,2004/2:05 PM . . . August 4, 2004 PUBLIC HEARING ITEM B (b) The capital improvements element shall be reviewed on an annual basis and modified as necessary in accordance with s. 163.3187 or s. 163.3189, except that corrections, updates, and modifications concerning costs; revenue sources; acceptance of facilities pursuant to dedications which are consistent with the plan; or the date of construction of any facility enumerated in the capital improvements element may be accomplished by ordinance and shall not be deemed to be amendments to the local comprehensive plan. All public facilities shall be consistent with the capital improvements element. Florida Administrative Code. Chanter 9J-5.016: The purpose ofthe capital improvements element is to evaluate the need for public facilities as identified in the other comprehensive plan elements and as defined in the applicable definitions for each type offacility, to estimate the cost ofimprovements for which the local government has fiscal responsibility, to analyze the fiscal capability ofthe local government to finance and construct improvements, to adopt financial policies to guide the funding of improvements and to schedule the funding and construction of improvements in a manner necessary to ensure that capital improvements are provided when required based on needs identified in the other comprehensive plan elements.... Winter Snrinl!s Code of Ordinances ARTICLE VII. FINANCIAL PROCEDURE, Section 7.04.Capital Prol!ram. (a) Submission to commission. The city manager shall prepare and submit to the commission a current and five (5) year capital program no later than the final date for submission of the budget. (b) Contents. The capital program shall include: (1) A clear general summary of its contents; (2) A list of all capital improvements and other capital expenditures which are proposed to be undertaken during the current and five (5) fiscal years next ensuing, with appropriate supporting information as to the necessity for each; (3) Cost estimates and recommended time schedules for each improvement or other capital expenditure; (4) Method of financing upon which each capital expenditure is to be reliant; and (5) The estimated annual cost of operating and maintaining the facilities to be constructed or acquired. The above shall be revised and extended each year with regard to capital improvements still pending or in process of construction or acquisition. ARTICLE III. COMPREHENSIVE PLAN AMENDMENTS. Sec. 15-33. Exemntions. (b) Non-amendments. The following shall not be considered comprehensive plan amendments: Corrections, updates and modification of current costs; revenue sources; acceptance of facilities pursuant to dedications which are consistent with the plan; or the date of construction of any facility enumerated in the capital improvements element. 2 . . . August 4, 2004 PUBLIC HEARING ITEM B CONSIDERATIONS: I. The Local Government Comprehensive Planning and Land Development Regulation Act passed by the Legislature in 1985 (163.3161, Florida Statutes) describes the Capital hnprovements Program as an essential element ofthe Comprehensive Plan and mandates that each local governments prepare a financially feasible Capital Improvements Element as a component of its Comprehensive Plan. 2. Local governments must develop a financially feasible plan, determine the capital improvements needed to attain and maintain adopted Levels of Service (LOS), develop a monitoring system to ensure that programmed capital improvements are actually completed and adopted levels of service are maintained, and revise Land Development Regulations to include concurrency provisions. 3. Certain capital improvements are required by the Comprehensive Plan to maintain adopted levels of service, and the Capital Improvements Program is the dynamic five-year schedule of improvements that lists the improvements needed to maintain those levels of service. Essentially, it is the linkage between capital expenditures and the policy outlined in the Capital hnprovements Elements of the Comprehensive Plan. 4. The proposed Capital hnprovements Program is a multi-year prioritized schedule of improvements that lists each capital improvement by the year it is purchased or commenced, the amount to be spent per year, and the method of financing such improvements. 5. The proposed Capital hnprovements Program will be adopted by the City Commission without a commitment to expenditures or appropriations beyond the first year and will be updated each year to reflect changing priorities, opportunities, costs, and/or alternative financing methods. 6. The 5-year time period is adjusted to FY 2004/2005 through 2009/2010. New projects incorporated based upon the extension to FY 2009/2010 are consistent with the relative priorities for capital improvements established in the Comprehensive Plan in each facility Element and in Objective 1.1 Capital Improvements Schedule of the Capital Improvements Element. FINDINGS: 1. The Capital hnprovements Program is a necessary component of the concurrency management program, as defined by the Comprehensive Plan. 2. The Capital hnprovements Program would represent the City's five-year commitment to capital expenditures, subject to future amendment in response to changing priorities and funding sources. 3 . . . August 4, 2004 PUBLIC HEARING ITEM B 3. The following criteria have been evaluated in determining the 5- Year Schedule of capital improvements: Consistency with the elements of the Comprehensive Plan; Elimination of existing deficiencies; Impact on the annual operating and capital budgets; The location in relation to the Future Land Use Map; Accommodation of demands from redevelopment and new development; Consistency with plans of state agencies and the St. Johns River Water Management District; Additional identified revenue sources to complete the improvement; and Financial feasibility. 4. The schedules or funding sources of some projects are adjusted to reflect management and funding strategies developed in conjunction with the FY 2004/2005 adopted budget. 5. Project costs are updated as appropriate based upon actual costs or updated background studies. Currently available revenue sources will fund the proposed improvements, thus maintaining the financial feasibility established in the 2001 Comprehensive Plan. STAFF RECOMMENDATION: Staff recommends that the Planning & Zoning Board/LP A hold a Public Hearing and recommend Approval to the City Commission for Adoption ofthe proposed Capital Improvements Program. ATTACHMENTS: A. Proposed Capital Improvements Program (Schedules to be provided at meeting) PLANNING & ZONING BOARD/LP A ACTION: 4 CITY OF WINTER SPRINGS CAPITAL IMPROVEMENTS PROGRAM FY 2004/2005 - 2009/2010 Adopted Prepared For: City of Winter Springs Community Development Department 1126 East State Road 434 Winter Springs, FL 32708-2799 . . . Cif} of Winter Springs Capital Improvements Program TABLE OF CONTENTS I. INTRODU CTI ON ........ ...... ......... ................ ............... .... ..... ............................. ..... ....... 1-1 A. Purpose........................................................................................................................ ............. 1-1 B. Definition of Capital Improvements Program (C.I.P.)...................................................... 1-1 COMPREHENSIVE PLAN........................................................... ...................... ...... ..11-1 II. III. A. The City's Comprehensive Plan ...........................................................................................II-1 B. Relationship to the City's Comprehensive Plan.................................................................II-1 C. Objective of the Capital Improvements Element .............................................................II-2 D. Annual Update of the Capital Improvements Element....................................................II-2 DEVELOPMENT OF THE CAPITAL IMPROVEMENTS PROGRAM............... 111-1 A. Process ..... ................ ........... .... ........ ..... .... ......... ............ ........ .............. ........... ........ ..... ........... 111-1 B. Department Ranking of Proposed Capital Improvements ............................................ III-1 C. Priorities of Capital Improvements ................................................................................... III-1 D. Criteria for Evaluation of Capital Improvements ........................................................... III-2 E. Relationship Between the Operating and Capital Budgets ............................................ III-2 \ INVENTORY OF EXISTING REVENUE SOURCES.............................................IV-1 IV. V. A. General Fund Revenue Sources ......................................................................................... IV-1 B. Special Revenue Sources ..................................................................................................... IV-1 C. Bonds .................................................... ............... ........................................ ......... .... ...... ....... IV-2 D. Grants and Loans ................................................................................................................. IV-2 FISCAL POLICY FRAMEWORK........... ................ ...... ......... ........ ...................... ........ V-1 A. Fiscal Policy............................................................................................................................ . V-1 B. Types of Changes ................................................................................................................... V-1 C. C.LE. Level of Service Standards......................................................................................... V-2 D. Capital Outlays.......................................................................................... ............................... V-2 VI. CAPITAL IMPROVEMENT PROGRAM ......... ...... ...... .......... ........... .......... ..............VI-1 A. Summary Table by Department........................................................................to be provided B. Summary Table by Fund .................................................................................... to be provided VII. STATE AND COUNTY ROAD PROJECTS............................................. to be provided VIII. CAPITAL OUTLAY PROJECT REQUEST FORM TABLE ................... to be provided 1 . . . City of Winter 5pn'ngs Capital Improvements Program I. INTRODUCTION A. Purpose One of the responsibilities of local government is to provide, maintain and improve a community's infrastmcture of buildings, roads, water and sewer lines, parks, etc. A Capital Improvements Program should be an expression of sound f111anci~1 management and development practice. Local governments that wish to lure business investment in their community recognize that a well-planned infrastructure program is essential. The Capital Improvements Program (CIP) serves as the linkage between the City's Comprehensive Plan, fiscal plan and development. B. Definition of Capital Improvements Program (C.I.P.) The Capital Improvements Program is a multi-year prioritized schedule of improvements that lists each capital improvement by year it is purchased or commenced; the amount to be spent per year; and, the method of financing such improvement. Chapter 163 Florida Statutes and 9J-5 Florida Administrative Code require a 5- Year Schedule of Capital Improvements. The first year of the 5- Year Schedule is the Capital Budget and the following five years is the actual Capital Improvements Program. The Capital Improvements Program is adopted by the City Commission. Each years' expenditures or appropriations as included in the City's annual operating and capital budget are to coincide with Capital Improvements Program. Projects programmed in the 5-Year Capital Improvements Element (CIE) have a commitment for funding for the five-year period through the adopted Comprehensive Plan. The CIE is a five-year program that is updated annually through the Capital Improvements Program Process and can be amended. It should be noted that a Capital Improvements Program is not a fixed document but a flexible, evolutionary document that should be updated each year to show the changing priorities, opportunities, costs, or different financing approaches. 1-1 .. . . . Ciry of Winter S pn'ngs CaPital Improvements Program II. COMPREHENSIVE PLAN A. The City's Comprehensive Plan The City of Winter Springs' adopted Comprehensive Plan is comprised of eight (8) elements as specified in Chapter 163 Florida Statutes and in Rule 9J-5 Florida Administrative Code. Effective planning and growth management includes the adequate provision of services and infrastructure and is required by the State to be addressed in certain elements of a Comprehensive Plan. For the City of Winter Springs, these are: . Traffic Circulation · Recreation and Open Space . Solid Waste . Water . Sewer . Stormwater (drainage) The Capital Improvements Element (C.LE.) consolidates the level of service standards (page 73 of Vol. 2 of 2 of the Comprehensive Plan) indicated for each of the above elements that ensures effective implementation. B. Relationship to the City's Comprehensive Plan Under Florida's growth management legislation, the Capital Improvements Program is one of the essential elements of the Comprehensive Plan. The Local Government Comprehensive Planning and Land Development Regulation Act passed by the Legislature in 1985 (163.3161 Florida Statutes) mandated local governments prepare a financially feasible Capital Improvements Element as part of their Comprehensive Plan. Local governments must · Develop a financially feasible plan; · Determine the capital improvements needed to attain and maintain adopted Levels of Service (LOS); · Develop a monitoring system to ensure that programmed capital improvements are actually completed, and adopted levels of service are maintained; · Revise Land Development Regulations to include the concurrency provision. The Capital Improvements Element differs from the Capital Improvements Program in that certain capital improvements are stated as required at the time of the adoption of the Comprehensive Plan to meet the indicated Levels of Service in the respective Elements. The Capital Improvements Program is a rolling 5-Year Schedule of Improvements that states additional improvements needed to maintain the LOS indicated in the Capital Improvements Element or improvements that are above and beyond those required to maintain the LOS. Hence, the Capital Improvements II-1 ~ . . . Ciry oj Winter Springs Capital Improvements Program Program includes the Capital Improvements Element and all other capital projects to be funded by the City and is the linkage between capital expenditures and policy. C. Objective of the Capital Improvements Element Throughout the planning period, the CLE. shall be used as a basis for development of a fiscally sound Capital Improvements Program to ensure that construction of capital facilities is adequate to accommodate desired future growth. Allocation of future growth shall be determined through coordination of fiscal and land use decisions, within the Schedule of Capital Improvements. The CLE. promotes this assurance through the adoption of a financially feasible 5- Year Schedule of Capital Improvements for each type of facility, and measuring whether those improvements are adequate to meet current and projected demands for the five (5) years forward. Objective A, Policy 3 in the CLE. requires the City to annually update the 5-Year Schedule of Capital Improvements. D. Annual Update of the Capital Improvements Element The purposes for the annual review and update of the CLE. are: · Adjust the 5-Year Schedule of Capital Improvements fOlward one year into the future, so that there is always an improvements program that covers a future 5- year time period. · Maintain continued consistency of the first year of each 5-year period with annual budgets as they are adopted. · Assure continued financul feasibility and provision of adequate services and facilities. II-2 ~ . . . City of Winter Springs CaPital Improvements Program III. DEVELOPMENT OF THE CAPITAL IMPROVEMENTS PROGRAM A. Process · Project Request Forms are prepared by various departments of the City. These forms require a project description, justification, cost estimates, impact on the City's operating budget, implementation schedule, and project location. · The Project Request Forms are reviewed by the Community Development Department (as required by Objective C, Policy 3 of the Capital Improvements Element), the Finance Department, and the City Manager. · The Local Planning Agency (LPA) reviews the City Manager's recommended Capital Improvements Program in terms of the community's needs and financing and then makes recommendation to the City Commission. · The LP A recommendation and the City Managers recommendation are considered by the City Commission in developing the annual operating budget (effective the first day of October each year, i.e. beginning of the Fiscal Year "FY"). B. Department Ranking of Proposed Capital Improvements · Each Project Request Form has a department priority recommendation. The priority ranking indicates the department's importance of the project to the department's functional program. The priority designations are as follows: · Critical Deficiency - required to eliminate proven or obvious dangers to public or employee health or safety. · Existing Deficiency - needed to raise a service or facility to an adopted Level of Service. . Repair/ replacement - maintains adopted Level of Service Standard in developed areas and gives comparable service standards in developing areas. · Future need/planned expansion - enables the City to provide servlces required for scheduled development. C. Priorities of Capital Improvements The City's Comprehensive Plan indicates in Objective A, Policy 1 of the Capital Improvements Element that Projects selected year by year for funding shall be those from which the greatest public benefit will be derived from the funds available. The following criteria shall be used for monitoring improvements. Transportation Improvements shall be prioritized according to a hierarchy of funding municipal collector roads needed to enhance delivery of emergency services, to facilitate access to schools and recreational facilities, to provide alternative routes to use on congested arterials and to create convenient access to goods and services. III-l . . . Ciry of Winter Springs Capital Improvements Program Potable Water and Sanitary Sewer Improvements shall be ranked to ensure the continued provision of safe and sufficient service to existing residences and businesses, to implement projects designed to protect water quality and conserve water supplies, to install equipment that will economize operations and reduce the consumer's costs and to expand the capacity of the utilities to serve new development and thereby generate reservation and connection fees to be reinvested in the utility operations. Stormwater Improvement priorities shall be those determined by the Citywide drainage study to be conducted through the proposed stormwater utility. Recreation and Open Space Capital projects funded in the future beyond those already allocated shall be selected to fulfill neighborhood needs for additional land and installation of active recreational facilities within safe walking distance of residential areas, to expand the variety of activities offered at the City's community park and to address recreation for special interests of citizens. D. Criteria for Evaluation of Capital Improvements The City in the annual update of the 5-Year Schedule of capital improvements shall use the following criteria to evaluate capital improvements projects: . Consistency with the elements of the Comprehensive Plan; . Elimination of existing deficiencies; . Impact on the annual operating and capital budgets; . The location in relation to the Future Land Use Map; . Accommodation of demands from redevelopment and new development; · Consistency with plans of state agencies and the St. Johns River Water Management District; . Additional identified revenue sources to complete the improvement; and. . Financial feasibility. E. Relationship Between the Operating and Capital Budgets The operating and capital budgets are closely linked. The operating budget must cover the cost of financing, maintaining and operating new facilities that are built under the capital budget. The operating budget, through the debt service fund, must pay interest expense and principal payments on all bonded debt. The operating impacts of the capital improvements are noted in the departmental request sheets. III-2 .. . . . . City of Winter Springs CaPital Improvements Program IV. INVENTORY OF EXISTING REVENUE SOURCES To implement a Capital Improvements Program, there must be identified adequate available funds for financing the capital improvements listed in the S- Year Schedule of Capital Improvements. The effectiveness of the C.LP. is dependent on the financial resources behind it. Chapter 163 F.S. and 9J-S F.A.c. require a Capital Improvements Program to be financially feasible. Some of these fund sources present some difficulty in their prediction such as federal and state funding due to the significant variation from year to year. Special assessments present similar difficulty. \'V'inter Springs' major fund categories and their use as funding mechanisms for both the operating and capital improvements budget are described as follows: A. General Fund Revenue Sources · Ad Valorem Taxes (property taxes). Ad valorem taxes include revenue from non- exempt property taxation. The current millage rate is 3.7708. · Franchise Fees. Franchise fees are levied upon a company in return for providing service to Winter Springs. The City currently has agreements covering gas, electric, telephone and cable utilities. · Licenses. Permits and Fines. All businesses operating in the City obtain occupational licenses. Building permits are required for all construction. The City receives a portion of all traffic citations issued in the City from Seminole County. · Intergovernmental Revenue. Intergovernmental revenues are funds collected by the State or County and shared with other local government units. Major sources of shared revenue include the cigarette tax, State revenue sharing, beverage licenses, mobile home licenses, motor fuels tax, half-cent sales tax and occupational licenses. · Interest Income. Interest income is revenue earned on funds that have been invested by the City. · Other Charges for Services/User Fees. Charges for services provided by the City that are paid by the users to fully or partially cover the costs to provide services. These fees generally include special fees placed on developers for processing plans, administrative fees for annexations and enterprise fund charges for delivering water and sewer service. Other sources include miscellaneous rents, leases and sales. · Utility Taxes. Utility taxes are assessed on the users of water, electric, gas, propane and telephone. The City currently levies a utility tax of 10% for electric, gas, propane and water. The telephone utility tax is currently 7%. B. Special Revenue Sources · Impact Fees. These fees are charged concurrent with new development and contribute towards payment for infrastructure needs, but not operational costs, which directly result from new development. The City of Winter Springs collects impact fees for Fire, Police and Transportation. IV-l . . . City oj Winter Springs CaPital Improvements Program · Special Assessments. Special assessments are levied against residents, agencIes or districts that directly benefit from the new service or facility. · Enterprise Funds. Enterprise funds are used to account for City services that are operated in a manner similar to private business enterprises where the intent is that the costs (expenses including depreciation) of providing goods and services to the general public on a continuing basis be financed or recovered primarily through user charges. · Local Option Gas Tax (LOGT). Seminole County provides the City with a portion of the gas tax which the County levies on gas consumption. The percentage is based on the City's population and can be used only for transportation related improvements. C. Bonds · General Obligation Bonds. These bonds are backed by the full faith and credit of the local government and must be approved by voter referendum. They offer low interest for carrying less risk since they are secured by government taxing power. Capital improvements financed through general obligation bonds should be used only for projects benefiting the whole City. · Revenue Bonds. Funds raised from revenue bonds may be used for projects benefiting a narrow group since charges collected from users of the improvement are applied directly to the debt service on these bonds. In this respect the projects are self-supporting. Revenue bonds pay higher interest and their issuance may be approved by the City Commission without voter approval. · Industrial Revenue Bonds. Though the local government issues these bonds, the debt is assumed by the companies or industries who use the revenues for construction of plants or facilities. Because they are tax-exempt and low interest, industries are attracted to this type of bond. Local government can transfer the actual liability to provide interest while garnering employment and economic benefits for the community. D. Grants and Loans · Federal and State Grants and Loans. Federal funds are allocated to state agencies that administer block grants or disbursed as block grants directly to state and local agencies or other eligible organizations. The purpose of the block grant program is to enable greater latitude by recipients in the actual use of the funds. These funds are generally a. non-recurring source and cannot be accurately projected for budgeting purposes. In addition to block grants and other state grants, several federal agencies offer direct loan programs with limited ability to finance capital improvements. State loans, however, can be used to finance capital projects such as land acquisition for low-income housing. IV-2 . . . City of Winter Springs Capita! Improvements Program v. FISCAL POLICY FRAMEWORK A. Fiscal Policy The following fiscal policy framework shall be used to formulate the Capital Improvements Program each year, as indicated in Objective A, Policy 2 of the Capital Improvements Element: · The City shall continue the conservative fiscal policies evident in the initial Capital Improvements Program. · Debt shall be limited to bondable revenue, as was the case to fund scheduled utility and recreation construction. · Responsible debt ratios shall be maintained, comparable to those reflected in the current status: Maximum ratio of total debt service to total revenue: City coverage 2.31 Water &-Sewer 1.73 Maximum ratio of outstanding capital indebtedness to property tax base: City Coverage 27.17 B. Types of Changes The types of changes made to the 5-Year Schedules of Capital Improvements in each update are summarized below: · The 5-year time period is adjusted from FY 2001/2002 through 2005/2006 to FY 2004/2005 through 2009/2010. New projects incorporated based upon the extension to FY 2009/2010 will be consistent with the relative priorities for capital improvements established in the Comprehensive Plan in each facility Element and in Objective A, Policy 1 of the Capital Improvements Element. · The schedules or funding sources of some projects are adjusted to reflect management and funding strategies developed in conjunction with the FY 2004/2005 adopted budget. · Project costs are updated as appropriate based upon recent actual costs or updated background studies. Currently available revenue sources will fund the proposed improvements, thus maintaining the financial feasibility established in the 2001 Comprehensive Plan. Additionally, summary sheets accompany each improvements schedule and are updated as follows: · To reflect the adjusted schedules of improvements discussed above. · To evaluate capacity needs, based upon socio-economic estimates and projections for those years which have been updated based upon the following: V-1 . . . Ci(y of Winter Springs CaPital Improvements Program 1) Preliminary population estimate by the Bureau of Economic and Business Research at the University of Florida. 2) Building Permits issued by the Building Department of the City. 3) The Comprehensive Plan Estimated and Projected Population. The population of the City of Winter Springs for April 1, 2003 was 32,572. C. C.I.E. Level of Service Standards The principal criterion. for capital improvements will be level of service (LOS) standards, quantitative indicators of the amount of service provided by a facility or type of facility. The City's need for capital improvements is largely determined by the LOS standards adopted in its Comprehensive Plan. In accordance with Objective C, Policy 1 of the Capital Improvements Element, Development approvals shall not degrade the Level of Service Standard adopted by the City of Winter Springs. D. Capital Outlays Only items that meet the defmition of a capital outlay will be included in the Capital Outlay Program. The definition of a capital outlay is: · A physical asset, constructed or purchased, and having a useful life of three (3) years and a minimum cost of$10,000. Capital outlays may include: . New and expanded facilities. · Rehabilitation or replacement of existing facilities. . Major pieces of equipment. · Cost of professional studies related to the improvement. · Acquisition of land related to a community facility. Capital outlays do not include: · The usual replacement of equipment and normal renovation with a cost of less than $ 10,000. · Those facilities and improvements related to the Capital Improvements Element (CIE) of the City's Comprehensive Plan or maintain the Level of Service of facilities identified in the CIE. Generally, all outlays financed by long-term debt should be considered capital outlays. V-2