FY18-19 and 19-20 RECOMMENDED OPERATING AND CIP BUDGET - FIN

Long Range Planning (continued)

• Prepare an Addendum to the Downtown Specific Plan (Preserving and Cultivating Public Trust) • Prepare LOS-VMT implementation modeling and policy guide for environmental assessment conversion per State CEQA mandate (Regional Initiatives) • Review of HSR Environmental Impact Report ($50,000) • Evaluation of annexation of two county pockets • Engage in new long-range planning activities as directed by City Council and to further implement the Morgan Hill 2035 General Plan (Preserving and Cultivating Public Trust, Regional Initiatives) • Update website and applications for ease of use by the public (Community Engagement and Messaging) • Prepare Industrial Land Use Preservation Policy • Prepare Annexation Environmental Impact Report ($200,000) • Continue to implement recommendations from Zucker Systems Report for increased division functionality (Preserving and Cultivating Public Trust) Financial Comments Long range planning activities are primarily funded by the Long Range Planning fee charged on all development applications. The Long Range Planning fee was adopted by the City Council on March 21, 2012 and imposes a fee on most Planning and Building permit activities and some Engineering permit activities of 15% of the permit fee to fund the City's Long Range Planning Program. The Program is, to a lesser degree, also funded by transfers from a combination of other City funds, including the General Fund, Housing Mitigation, Park Maintenance, Drainage Impact, Agriculture Preservation and Open Space, Traffic Impact, Wastewater Impact, and Water Impact funds. To support the community planning documents required of long-range planning activities (e.g., Downtown Station Area Master Plan implementation, Monterey Corridor Block Level Master Plans, Live Oak Area Agrihood Plan), these fees are proposed to continue over the next two fiscal years and likely beyond. Moving forward, The Long Range Planning Fund anticipate a draw upon the total fund balance as well as on-going revenue. Upcoming large projects will require a commitment of all funds in year one, with catch up revenues in year two. This fund may necessitate a temporary loan from the General Fund to create cash flow to pay for salaries as well as protracted project and study timelines.

250 DEVELOPMENT SERVICES