2008-03-24 Study Session Minutes

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MINUTES OF UNIVERSITY CITY COUNCIL STUDY SESSION March 24, 2008 The Council Study Session, held in the Chambers of the City Hall, on Monday, March 24, 2008, was called to order by Mayor Adams at 5:30 p.m. In addition to Mayor Adams, the following members of the Council were present: Mr. Arthur Sharpe, Jr. Ms. Stefany Brot Mr. Michael Glickert Mr. Robert Wagner Ms. Lynn Ricci Mr. Byron Price Also present were City Manager Julie Feier, the Finance Director/Deputy City Manager Janet Watson, the Community Development Director Lehman Walker and the City Attorney John Mulligan. The Study Session agenda was for the purpose to discuss the impact of development on the University City Budget. Since University City’s revenues are highly dependent upon population; Community Development staff identified several areas that could provide the opportunity for increased population density. The second part of the discussion planned was on selected service reductions. The deficit projections provided to Council last month remain accurate, $424,354 in FY 09 compounding into $1,139,464 in FY 10 An outline on the impacts of development on University City budget was presented. A chart showed how the City received monies through the increase in property values and permit fees through examples of recent developments. The Community Development Department research concluded the City expenditures are higher for residential than non- residential development. Residential developments negatively impact the budget due to increased cost of services, additional one-time infrastructure costs of streets, sidewalks, etc. Ongoing costs, as emergency services, also have a significant impact on the budget. Non-residential developments as industrial and commercial uses require fewer municipal services thus impact the City’s budget less. Development expenditures for City services include public safety, public works, planning, parks/recreation and general administration University City expenditures for FY 2007 were estimated to be $682 per person (residential) and $143 per worker (non-residential). Development revenues include property taxes, licenses, sales/use taxes, charges for City services, inspection fees, and intergovernmental aid. Over 30% of the City’s revenue comes from sales tax, which is distributed to University City based upon population. University City revenues for FY 2007 were estimated to be $568 per capita (residential) and $202 per worker (non-residential).