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 North 101 Corridor Specific
Plan area. These are preliminary cost estimates based on '96 dollars.
The cost estimates for the undergrounding of utilities, drainage,
and street improvements can be reduced if these projects are coordinated
and implemented at the same time.
Improvement Projects
Undergrounding Utilities
|
|
North Highway 101 (between La Costa Ave. and Encinitas Blvd.)
|
$4,400,000
|
Vulcan Avenue (between La Costa Ave. and Encinitas Blvd.)
|
2,970,000
|
Infrastructure
|
|
North Highway 101 Drainage Improvement Project
|
4,650,000
|
Street improvements - curb/gutter, sidewalk, paving, striping,
median, landscaping, street furniture, lighting, etc. (North Highway
101, North Vulcan Avenue and side streets)
|
5,220,000
|
Alley improvements
|
555,000
|
Community Facilities
|
|
Linear Park/Coastal Rail Trail project
|
2,000,000
|
Leucadia Roadside Park streetscape improvement
|
60,000
|
Community Development
|
|
Facade Grant Program (N. Hwy. 101)
|
200,000
|
Total Preliminary Cost Estimate:
|
20,055,000
|
A detailed financing plan should be prepared in order to successfully
implement the improvements and programs proposed by the North 101
Corridor Specific Plan. Along with establishing specific goals and
policies, the financing plan 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 as identified above. Some of these
financing methods may be impacted by the passage of Proposition 218
in November of 1996. However, the extent of impact will not be known
until Proposition 218 is completely implemented.
10.3.1 SPECIAL ASSESSMENT DISTRICTS (1911, 1913, 1915 ACT)
California law provides procedures to levy assessments against
benefiting 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.
10.3.2 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 do not voluntarily enter into an assessment of a Community Facilities
District (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 benefiting other properties.
Benefiting properties may be given the option to finance the fees
by entering into an assessment district (1913/1911 Act or Mello-Roos
CFD).
10.3.3 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 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, and 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.
10.3.4 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.
10.3.5 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 costs, 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 Redevelopment Agency is formed. The excess
revenues thus produced can be used to pay off bonds used 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
from which to finance major improvements.
10.3.6 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.
10.3.7 SURFACE TRANSPORTATION PROGRAM (STP) FUNDS
The passage of the Intermodal Surface Transportation Efficiency
Act of 1991 provides funding to strengthen the national transportation
system through "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.
10.3.8 COMMUNITY DEVELOPMENT BLOCK GRANTS (CDBG)
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.
10.3.9 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.