Certain basic financing needs have been identified which include
improvements to traffic/circulation, drainage, and utility infrastructure.
Other specific capital improvements include streetscape enhancement,
community facilities, and community development programs.
The following table summarizes an initial estimate of those
capital needs and costs that apply within the Downtown Encinitas Specific
Plan area. These are preliminary cost estimates based on '93 dollars.
Whenever possible, projects should be coordinated and implemented
at the same time to reduce cost (i.e. coordinating the undergrounding
of utilities with street improvements). (NOTE: The improvement projects
are listed in rank order. If possible, these projects should be implemented
in this order.)
Table 5
Improvement Projects
|
---|
1. Streetscape Amenities
|
|
Downtown Entry signs
|
$4,500
|
Moonlight Beach Entry (at B & First Streets)
|
71,000
|
Streetscape - landscape, enhanced paving, street improvements, &
street furniture:
|
|
Vulcan Avenue
|
75,000
|
Second Street
|
118,750
|
First Street
|
356,250
|
D Street
|
390,000
|
E Street
|
390,000
|
Special street lights on First Street
|
321,500
|
Subtotal:
|
1,727,000
|
2. Community Development
|
|
Facade Grant Program (First & Second Streets)
|
960,500
|
Subtotal:
|
960,500
|
3. Undergrounding Utilities*
|
|
Electric
|
$2,300,000
|
Cable
|
1,375,000
|
Telephone
|
1,325,000
|
Subtotal:
|
5,000,000
|
4. Street Infrastructure
|
|
Street Improvements - curb/gutter, sidewalks, paving, striping,
etc.
|
204,000
|
Traffic signals/Stop
|
75,000
|
Alley improvements
|
772,800
|
Subtotal:
|
1,051,800
|
5. Storm Drainage System
|
|
Increased-capacity of main, "F" Street to Cottonwood Creek
|
38,000
|
Redirected drainage "E" Street to Coastal Bluff
|
30,000
|
Subtotal:
|
68,000
|
6. Sewer System
|
|
Main sleeve inserts/Manhole Rehabilitation
|
54,000
|
"B" Street pump station Spill-protection storage
|
300,000
|
Subtotal:
|
354,000
|
7. Community Facilities
|
|
Vista Point (west end F Street)
|
100,000
|
Mini Park/Vista Point (west end J Street)
|
110,000
|
Moonlight Beach Master Plan
|
4,378,000
|
Expand library facilities (Encinitas branch)
|
1,680,000
|
Subtotal:
|
6,268,000
|
Total Preliminary Cost Estimate:
|
$15,429,300
|
*
|
Preliminary estimates based on unit cost of $125/linear foot.
Actual costs will depend on engineering calculations at the time of
construction; overall cost savings may be achieved by combining undergrounding
and other improvement efforts.
|
|
There are other Citywide programs, which either currently exist
or will be established. These programs, which are listed below, will
benefit the specific plan area as well as the entire city. Cost estimates
for these programs were not currently available and beyond the scope
of the specific plan.
|
|
Beach Sand Nourishment Program
|
|
Seismic Retro-Fit Program
|
|
Civic Center
|
A detailed public facility financing program must be prepared
in order to successfully implement the improvements and programs proposed
by the Downtown Encinitas Specific Plan. The financing program should
analyze a series of methods to finance infrastructure and other improvements,
recommend preferred alternatives, and develop a process for enacting
financing methods.
The following is a summary of possible methods for financing
the specific plan improvements identified in Table 5. This listing
is not intended to exclude any other available funding source.
SPECIAL ASSESSMENT DISTRICTS (1911, 1913, 1915 ACT)
California law provides procedures to levy assessments against
benefitting properties and issue tax exempt bonds to finance public
facilities and infrastructure improvements. Assessment districts,
also known as improvement districts, are initiated by the legislative
body (e.g. city), subject to majority protest of property owners or
registered voters. Assessments are distributed in proportion to the
benefits received by each property, and represent a lien against property.
The assessments are fixed dollar amounts, and may be prepaid. Only
improvements with property-specific benefits (e.g. roads, and sewer
and water improvements) may be financed with assessments.
AREA OF BENEFIT FEES
Area of benefit fees may be enacted by the legislative body
(i.e. city) through adoption of an ordinance, without voter approval.
The fee must be directly related to the benefit received. It does
not create a lien against property, but must be paid in full as a
condition of approval. Its principle use is for encumbering properties
that will not voluntarily enter into an assessment of CFD, so that
they pay their fair share at the time they are ready to be developed.
Proceeds may be used to reimburse property owners who pay up-front
cost for facilities benefitting other properties. Benefitting properties
may be given the option to finance the fees by entering into an assessment
district (1913/1911 Act) or Mello-Roos CFD).
AB 2926 SCHOOL IMPACT FEES
AB 2926 was enacted in 1986 and governs the imposition of school
impact fees on new development. The Bill authorizes school districts
to place fees or other requirements on developers to finance the construction
of temporary or permanent school facilities. The residential rate
for FY 1993-94 is $1.65 per square foot of habitable space. School
impact fees also may be levied on commercial projects which generate
the need for new school facilities. The commercial rate is presently
$.28 per square foot of building area. The school fees often are matched
with funding from the State School Building Program.
The school districts have reported that funds generated through
AB 2926 fees are inadequate to meet needed capital facility improvements.
The public elementary, junior high and senior high schools serving
the specific plan area are presently over designed capacity. Alternate
financing methods for school facility construction may be necessary.
INFRASTRUCTURE FINANCING DISTRICTS (SB 308)
Authorizes cities to form infrastructure financing districts,
in accordance with a prescribed procedure, to finance public capital
facilities (including but not limited to arterial streets, transit
facilities, drainage and sewer facilities, child care facilities,
libraries, and parks/recreational facilities) utilizing a method of
tax increment financing, but tax revenues of county offices of education,
school districts, or community college districts would be subject
to diversion under this bill.
The bill permits a district to only finance the purchase of
facilities for which construction has been completed and provides
that these facilities need not be physically located within the boundaries
of the district. This bill prohibits infrastructure financing districts
from overlapping redevelopment project areas. The bill would require
any district that constructs dwelling units to set aside not less
than 20 percent of these units to increase and improve the city's
supply of low- and moderate-income housing available at an affordable
housing cost, as defined, to persons of low and moderate income as
defined. The bill would require approval by the district's landowners
or voters, as specified, of district formation and of bonds to be
issued by the district to finance public capital facilities that provide
significant benefits to an area larger than the area of the district.
MELLO-ROOS COMMUNITY FACILITIES DISTRICTS
The Mello-Roos Community Facilities Act of 1982 allows for the
creation of special districts authorized to levy a special tax and
issue tax exempt bonds to finance public facilities and services.
A Community Facilities District (CFD) may be initiated by the legislative
body or by property owner petition, and must be approved by a 2/3
majority of either property owners or registered voters (if there
are more than 12 registered voters living in the area).
Taxes are collected annually with property taxes, an may be
prepaid if prepayment provisions are specified in the tax formula.
The levy creates a tax lien against the property. There is no requirement
that the tax be apportioned on the basis of benefit. Because there
is no requirement to show special benefit, Mello-Roos levies may be
used to fund improvements of general benefit, such as fire and police
facilities, libraries and parks, as well as improvements that benefit
specific properties. The provision also allows for the reallocation
of cost burdens to alleviate untenable burdens on specific properties.
LANDSCAPING AND LIGHTING DISTRICTS
Landscaping and Lighting Districts (LLD) may be used for installation,
maintenance and servicing of landscaping and lighting, through annual
assessments on benefiting properties. LLD's also may provide for construction
and maintenance of appurtenant features, including curbs, gutters,
walls, sidewalks or paving, and irrigation or drainage facilities.
They also may be used to fund and maintain parks above normal park
standards maintained from general fund revenues.
STATE COMMUNITY REDEVELOPMENT LAW
This Act allows communities to utilize tax increment financing
to carry out redevelopment activities, by applying tax increments
obtained in the project area to finance planning, administrative,
acquisition, and improvement activities. The Act permits a redevelopment
agency to finance land acquisition for public purposes, construction
of public facilities, such as roads, parks, and sewers, and administrative,
legal, planning, and engineering costs related to the project.
The agency could issue bonds to finance project area improvements
and administrative cost, and could apply the tax increments derived
in the project area to pay the debt service on the bonds. Tax increments
are those tax revenues produced in an area in excess of the revenues
produced at the time the excess revenues thus produced are used to
pay off bonds uses to finance the expenses of the redevelopment process
such as administration, planning, acquisition, and construction of
public facilities. Current and projected development could provide
a substantial revenue base form which to finance major improvements.
SDG&E UNDERGROUNDING FUNDS
Utility companies are required to budget funds each year for
undergrounding. These budgets are approved by the Public Utilities
Commission and assigned to specific projects in each area based on
priorities developed by local government.
COMMUNITY DEVELOPMENT BLOCK GRANTS
These grants issued from the Federal Housing and Urban Development
Department (HUD) are available to areas in which at least 50 percent
of the households have a low-moderate income.
SURFACE TRANSPORTATION PROGRAM (STP) FUNDS
The passage of the Intermodal Surface Transportation Efficiency
Act of 1991 provides $155 billion over six years to strengthen the
national transportation system with approximately $3 billion of the
funds to be used for "enhancement" projects. Transportation enhancement
activities include: pedestrian and bicycle facilities, acquisition
of scenic and historic sites, scenic and historic highway programs,
landscaping, rehabilitation of historic transportation facilities,
preservation of abandoned transportation corridors, archeological
planning and research, control and removal of outdoor advertising,
and mitigation of water quality impacts from roadway runoff. Funding
can be obtained through San Diego Association of Governments (SANDAG)
on a regional basis and also directly through the State.
OTHER FUNDING SOURCES
There may be other sources available to finance improvement
projects such as special assessment districts, government grants,
or various types of bonds not listed above, that may be used to fund
improvements.