SR 06:127 - Laserfiche WebLink

Three issues related to the Economic and Fiscal Element of the General Plan were described in the Public Services Background and Alternatives Report (see excerpt in Attachment 1) as a result of discussion with the Economic Vitality Committee (EVe): Fiscal sustainability at General Plan build-out, the City's debt limit, and financing the City's retirement plan. Options for addressing these issues were discussed in the Background and Alternatives Report, and the issues were further discussed with the EVe. Additional background material and policies in the Draft Element have been extracted from the January 2006 Draft Economic Development Strategic Plan, prepared by Bay Area Economics under the direction of the Economic Vitality Committee. A copy of this is included as Attachment 2. The proposed revisions to the General Plan Economic and Fiscal Element (see Attachment 3 and Attachment 4) are the result of review by staff from the Finance, Economic Development, and Planning Departments, and discussion by the Economic Vitality Committee at several meetings in 2005 and 2006. Additional review and update was obtained at a Joint Workshop with the City Council on February 28, 2006, and the Planning Commission reviewed the Draft Element on March 29, 2006. SUMMARY OF RECOMMENDED CHANGES TO THE 1996 ECONOMIC AND FISCAL ELEMENT The Draft Economic and Fiscal Element (Attachment 3) uses strikeout and underline to show changes to the 1996 text. In summary, the proposed changes to the background text include: . General editing, updating, and reorganizing of background material from the 1996 General Plan. . An update of information in the Local Economy section with information added on economic trends in the late 1990s to date. . A revision of the City Finances: Fiscal Environment section to reflect the impacts of the technology expansion of the 1990s, recent business expansion and relocation activity, and recent property tax shifts initiated by the State. . A revision of the Historical and Projected General Fund Trends section to reflect that property taxes, rather than sales taxes, are the major source of General Fund revenue and to provide information regarding sales tax trends. . Revisions to the City Financing at General Plan Buildout and Balanced Budget sections to reflect City budgeting challenges, including the need to continue to manage labor costs and limit long-term debt. Attachment 3 incorporates the following recommended changes to the Goals, Policies, and Programs in the Draft Economic and Fiscal Element: . The addition of Goal 1, which recognizes the connection between fiscal, economic, transportation, housing, and social equity issues in maintaining a sustainable economy. SR 06:127 Page 2 of 5