HomeMy WebLinkAbout1998-07-14 - AGENDA REPORTS - NEWHALL RANCH (2)CITY OF SANTA CLARITA
AGENDA REPORT
City ManXApprov
Item to be presented by: Steve Stark
UNFINISHED BUSINESS
DATE: July 14, 1998
SUBJECT: INEWHALL RANCH FISCAL IMPACT REPORT
DEPARTMENT: Administrative Services
RECOMMENDED ACTION
City Council receive and file report.
BACKGROUND
At the regular City Council meeting of April 28, 1998, the City Council directed the City staff
to prepare a fiscal impact report on the proposed Newhall Ranch project. Subsequently, staff
presented to the City Council a progress report on May 12, 1998. At that meeting, the City
Council directed staff to return on July 14, 1998 with the final report.
Staff, with the assistance of Ultra -Research, has completed the final report. As a result of the
analysis, it appears as though the Newhall Ranch project will have a negative fiscal impact to
the City of Santa Clarita of approximately $530,000 annually. The Levander Report, which
was prepared for the County and Developer, estimated the project to have a positive fiscal
impact to the City of $1.8 million.
In addition to the identified impacts to the City, this report identifies several impacts on County
services. These services include Transit ($2.4 million for operations and $10.4 million in
capital), Library services ($384,000), and Police services. In several instances, we have
indicated that there will be an impact, but the ability to accurately quantify the impact is not
feasible.
We believe this report accurately reflects all of the impacts on City services by the Newhall
Ranch project. Both the Levander Report and the City report are based on various assumptions
over the next 25 years. Actual impacts will only be known after development.
FISCAL IMPACT
The fiscal impact to the City is estimated at $530,000 annually after, build -out.
ATTACHMENT
Newhall Ranch Fiscal Impact Report, prepared by Ultra -Research and the City of SantaClarita.
SS:KS:hds
council\nrfiscagd.§s APPRONED Agenda Item:
NEWHALL RANCH FISCAL
IMPACT REPORT
ESTIMATED IMPACTS ON THE CITY OF
SANTA CLARITA
Prepared By
City of Santa Clarita
TABLE OF CONTENTS
SECTION
PAGE
I. INTRODUCTION........................................................................ 1
II. EXECUTIVE SUMMARY............................................................. 2
III. ESTIMATED SALES TAX TO THE CITY ....................................... 3
IV. ESTIMATED COSTS TO THE CITY .............................................. 5
1. Parkland............................................................................... 5
2. Park Maintenance/ Park Facilities Maintenance ......................... 5
3. Recreation............................................................................. 6
4. Metrolink Facility Maintenance .............................................. 7
5. Trails................................................................................... 7
6. Open Space........................................................................... 7
7. Street Maintenance............................................................... 8
V. COUNTY SERVICES................................................................... 9
1.
Transit Services......................................................................
9
2.
Library Services.....................................................................
10
3.
Police Services........................................................................
12
4.
Fire Services..........................................................................
12
VI. CONCLUSION............................................................................13
SECTION I — INTRODUCTION
In an effort to fully understand the potential fiscal impacts of the Newhall Ranch
project located in the unincorporated area of Los Angeles County, the City of Santa
Clarita has prepared this fiscal impact analysis. The scope of this project was to
evaluate the potential impacts on City services (revenues and expenditures), as well
as the potential impacts on City residents resulting from the development of the
proposed 111964 -acre Newhall Ranch project.
The proposed project involves the construction of approximately 25,000 dwelling
units and over 5.7 million square feet of commercial and business space over a
planned 25 -year time period, commencing in the year 2000. The project is estimated
to bring 69,000 new residents to the Santa Clarita Valley.
The Levander Company prepared a Fiscal Impact Report for the Developer, Newhall
Ranch Company and the County of Los Angeles, which was included in the EIR. The
Levander Report identifies only one area of City. operations that will be impacted by
the proposed development, which is street maintenance. It also identifies sales tax
revenue which the City can expect to receive as a result of the development. The
report concludes the project will generate a revenue surplus to the City.
City staff, with the assistance of Ultra -Research, has reviewed several areas which
may be impacted by the Newhall Ranch project. Additionally, we have reviewed the
Levander Report. The City report identifies the potential impacts of the development
on the City and various service areas utilizing information contained in the
Levander Report, current City of Santa Clarita service levels, the 1997-98 budget,
and discussion with County staff.
This report examines the potential impacts to City services, as well as the potential
impacts on City residents. Also, this report compares the impacts as identified in the
Levander Report to those identified by the City and discusses the differences. The
cost impacts on specific City services are identified and estimated to the extent
possible by utilizing various assumptions and historical data identified in each
section of the report.
Newhall Ranch Fiscal Impact Report — Estimated Impacts on the City of Santa Clarita
SECTION II — EXECUTIVE SUMMARY
The proposed Newhall Ranch development is expected to be built -out after a 25 -year
period, beginning in the year 2000. As a result of this development, several service
areas within the City are potentially impacted. The following sections have been
reviewed to identify potential impacts:
- Parkland
- Parkland Maintenance
- Recreation
- General Governmental Facilities
- Trails
- Open Space
- Street Maintenance
- Transit Services
- Library Services
- Police Services
- Fire Services
It is estimated that overall the project; after revenues, will create a negative fiscal
impact to the City of Santa Clarita of approximately $170,000 to $530,000 annually.
This report estimates that Newhall Ranch will generate to the City approximately
$1.1 million annually each year after build -out; however, it will cost the City
between $1.27 million and $1.63 million annually. Each service area is discussed in
the report with further detail of assumptions and conclusions.
The Levander Report projects the City, as a result of the Newhall Ranch
development, will receive surplus revenue of $1.8 million a year at build -out. This
figure is based on estimated revenues of $2.3 million and estimated expenditures of
$501,000 for street maintenance.
In addition to the impacts discussed above, this report projects impacts to other
service areas, not necessarily provided by the City. Transit services, library services,
and police services, which affect the quality of life for City residents, are also
anticipated to be impacted. It is estimated that transit service will experience an
annual shortfall to the County of $2.4 million at build -out and $10.4 million in
capital costs. Library services within the City are also expected to be affected due to
insufficient facilities and insufficient funding from the proposed Newhall Ranch
project. Lastly, police services will be impacted in both general law and. traffic
enforcement services as a result of the additional traffic being generated by
residents of Newhall Ranch through the City. The Levander Report projects no
impact in these areas.
Newhall Ranch Fiscal Impact Report — Estimated Impacts on the City of Santa Clarita 2
SECTION III - ESTIMATED SALES TAX TO THE CITY
The Newhall Ranch project is estimated to generate through the 25 -year build -out
approximately $16.9 million in sales tax revenue. After build -out, the project is
estimated to generate $1.1 million in sales tax annually to the City. Sales tax is the
only significant revenue to be derived by the City from Newhall Ranch residents.
Sales tax revenue would be attributed primarily to taxable retail purchases made by
these non-residents at the City s regional.. mall. This is supported by the lack of
regional shopping amenities available in the Newhall Ranch project.
According to the Levander Report, the..City is expected to capture a 35 percent share
of all Newhall Ranch resident taxable purchases. This percentage was calculated
based on estimates of future store strengths, considering existing Santa Clarita
economic performance and anticipated Newhall Ranch facilities, as well as
estimated average purchases per trip based on the Austin -Foust Traffic projections
presented in the EIR.
Over a 25 -year build -out period, the Newhall Ranch Fiscal Study projected
cumulative sales tax revenue totaling $35.1 million and $2.4 million each year
thereafter for the City. Conversely, as noted above, this report estimates the project
to generate approximately 53 percent of that amount. To reconcile these variances,
we must examine the assumptions used in the projections.
In calculating the sales tax revenue, the Levander Company used several key
assumptions, which include:
1. 35 percent of Newhall Ranch resident taxable purchases will be made at stores
in the City.
2. Household income is estimated at one-third of housing values.
3. Resident taxable purchases are estimated at 35 percent of household income.
In preparing our sales tax analysis, the three assumptions (1-3) listed above were
evaluated and modified as described below.
The 35 percent factor (1) is based on an assumed distribution of shopping trips and
relative purchases per trip. Unfortunately, the recent opening of the Valencia
Marketplace along I-5 in the County could significantly reduce this 35 percent
estimate. Based on our analysis, the City is experiencing an estimated 2 percent
taxable retail sales leakage. Depending on the extent of further commercial
development in the County along I-5, this leakage could continue.
Assumptions (2) and (3) used in the Levander Report imply that total resident
taxable purchases are keyed to housing values and resident income levels, which is
reasonable; however, consideration should be given to family size. For example, a
single -person household with a $100,000 annual income could be expected to have
less total annual expenditures for retail purchases than that of a two -person
Newhall Ranch Fiscal Impact Report — Estimated Impacts on the City of Santa Clarita 3
household with $100,000 combined annual earnings. Furthermore, assumption (3)
suggests that the more income one has, the more taxable retail purchases one
makes. To some extent this is true, but there should be some form of "leveling off'
beyond a certain income level, as these individuals tend to divert more income to
various types of investments.
To overcome the identified deficiencies, we proposed a variant to assumption (3)
based on using the IRS Sales Tax Tables, adjusted for inflation, which would enable
the derivation of taxable retail expenditures as a function of both family income and
family size. An obvious significant difference appears in the higher income levels,
which using the IRS tables generates estimates ranging from 20-50 percent less
than those used in the Levander Report. Generally speaking, the use of the IRS
tables is considered by many to be lower than what might be expected; therefore, the
proposed estimates are considered conservative.
Utilizing these modified assumptions, the total sales tax generated by Newhall
Ranch residents in the City would be $16.9 million over 25 years and $1.1 million
annually thereafter. Our estimate, although conservative, represents approximately
53 percent of what was stated in the Levander Report.
Newhall Ranch Fiscal Impact Report - Estimated Impacts on the City of Santa Clarita 4
SECTION IV — ESTIMATED COSTS TO THE CITY
The Fiscal Impact Report prepared by the Levander Company identified only one
area of the City that would be impacted by Newhall Ranch. Street Maintenance was
identified to have a cost. impact of $501,000. This section looks at several areas
which will be impacted by Newhall Ranch not identified in the Levander Report. It
also evaluates the single cost impact, which the Levander Report identified. Each
area contains a summary of the impact and the estimated dollar figure associated
with it.
1. Parkland
The Newhall Ranch project proposes 349 acres of public parks described as follows:
113 acres of neighborhood and community parks; 221 acres of nature park within
the community parks; and a 15 -acre lake, Although there is a total of 349 acres of
parkland, only 113 acres would be dedicated active parkland, which could support
recreation activities. The remaining 236 acres, although an asset to the community,
would not qualify for Quimby credit in the City of Santa Clarita.
Based on an estimated population of 68,524 people, the resulting ratio of active park
acres per 1000 population is 1.65 versus the City standard of 3 acres per 1000 and
the City goal of 5 acres per 1000 population. (Note: The City goal is allowed under
the current Quimby Act legislation for parkland and is reflective of the quality of life
planned for the City.) On the basis of the City standard, the project creates a 93 -acre
deficiency, and on the basis of the City goal, a deficiency of 230 acres.
Several assumptions are used to determine whether or not the City's park system
can expect to be impacted by the Newhall Ranch development. Assumptions used in
this analysis include: the existing parkland deficit within the unincorporated area,
the fact that County residents frequently use City parks now, and the close
proximity of the Newhall Ranch project site to the City with its identified parkland
deficiency of 93 acres. It is reasonable to assume that as is currently the case with
residents in the unincorporated area that a percentage of the project residents will
also utilize City parks. This increased usage has an impact on park availability. It is
difficult to. assign cost to this area; therefore, no cost factor has been assigned to
parkland availability.
2. Park Maintenance/Park Facilities Maintenance
Based on our examination of the City's 1997-98 Budget, Parks Ground Maintenance
costs are $2,173,819, including administrative costs. Using current budget data and
the -City's population, we estimate the per capita cost to maintain City parks at
$15.11. In order to determine the impact to ground maintenance, recreation
programming was used in order to estimate park usage and the percentage of non-
residents who use those parks, According to City data, approximately 15 percent
(unincorporated area of 40,000) of recreation program registrants enrolled in City
provided recreation programs are non -City residents. Therefore, as these programs
are scheduled in City parks, it is estimated that 15 percent of the people who
Newhall Ranch Fiscal Impact Report — Estimated Impacts on the City of Santa Clarita 5
currently utilize City parks are non-residents. Utilizing this methodology, the costs
of non-residents can be factored by using 15 percent of the project's population
multiplied by the per capita cost, which results in an annual cost to the City of
$156,000.
In addition to the actual increased maintenance of parkland is the increased
maintenance of park facilities. The anticipated increase in non-resident use of City
parks and facilities requires the expansion of operations to accommodate the growth.
In order to maintain an adequate level of service, the City anticipates having to open
pools year-round at both Valencia Meadows Park and Valencia Glen Park. It is
estimated that based on current service costs, as well as attributing a portion of that
cost to non-residents, that the impact will be approximately $206,000 annually.
These costs include the increases of operations, maintenance and utilities.
3. Recreation
The City currently provides extensive parks and recreation programs, which are
open to all residents of the Santa Clarita Valley. Since enrollment is generally
provided on a first-come, first-served basis, City residents must compete with non-
residents when enrolling and participating in City provided recreation programs. As
stated earlier, 15 percent of those registered for City programs are non-residents.
Based on our examination of the City's 1997-98 Budget, Recreation program costs
are $3,112,408, including administrative costs. Parks and Recreation revenue is
estimated at $1,630,940. Subtracting this revenue from Recreation program costs
results in a net cost of $1,481,468. Dividing the net costs by the City's current
population of 143,800 (California Department of Finance) yields a net. Recreation
program cost of $10.30 per capita. This is the amount the City subsidizes from its
General Fund for recreation programs per capita.
It is important to understand that even though a non-resident may participate in a
City provided program and pay the appropriate fees, he/she does not generally
contribute to the $10.30 General Fund subsidy, which residents pay. This represents
a cost to the City that in essence will end up being paid for by City residents for the
benefit of non-residents. This will also be the case with Newhall Ranch residents.
The Levander Report calculates County recreation service expenditures at $6.00 per
capita; the City on the other hand expends $10.30 per capita. As you can see, the
City expends approximately 58 percent more per capita on recreation services, which
equates to more recreation programs. Based on the City's current level of service, as
well as the minimal levels provided by the project, it can be assumed that Newhall
Ranch residents will utilize City recreation programs.
Historical trends in City provided recreation programs indicate that the average
annual number of participates are 43,000. Since an estimated 15 percent of these
participants are non-residents, this would imply that 85 percent or approximately
36,500 are City residents.
Newhall Ranch Fiscal Impact Report—Estimated Impacts on the City of Santa Clarita 6
Assuming that the demographics and cultural characteristics of the Newhall Ranch
project residents are similar to those of the City of Santa Clarita and unincorporated
area, this would suggest that potentially 15 percent of the 68,524 residents would
desire to participate in City provided recreation programs. Using the recreation
program per capita cost for the anticipated 15 percent of Newhall Ranch residents,
participating in City programs results in an annual cost to the City of $106,000.
In addition to the fiscal impact associated with Newhall Ranch residents using City
recreation programs is the limited amount of recreational programming available. If
the City is not able to find new areas to accommodate the growth or new programs,
availability will be limited, which could potentially cause City residents to be placed
on waiting lists.
4. Metrolink Facilities Maintenance
As a result of the additional 68,524 people to the area, increased daily ridership on
the Metrolink can be expected to impact. the City's two Metrolink facilities. It is
estimated to cost $412 per person for maintenance of the City's Metrolink facilities.
This methodology is based on daily average ridership in the City of .25 percent of the
Valley's population or 456 people divided by the current budget needed to maintain
those facilities. Applying the same factors to Newhall Ranch, you get an average of
171 people who will utilize Metrolink services at a cost of $412 per person.
Therefore, based on current ridership information and the current funding needed to
maintain that level of service and projecting ridership for Newhall Ranch residents,
it is anticipated that Newhall Ranch will require additional expenditures in the
amount of approximately $70,450 a year. These costs include janitorial supplies and
services, parking lot sweeping, and landscaping. Additionally, based on current
capacity, it is expected that additional capital costs will result from expanding
parking lot facilities to accommodate the additional riders from Newhall Ranch.
5. Trails
According to the Fiscal Impact Report prepared by the Levander Company, the
Specific Plan proposes 98 acres of community and local trails and a 16 -acre regional
river trail to eventually connect with the City portion of the same trail. These trails
are to be constructed by the. developer and maintained by the County.
There is no anticipated fiscal impact to the City of Santa Clarita in this area.
6. Open Space
Public open space areas are planned for the project area adjacent to the City
boundaries. According to the City, assuming that the Newhall Ranch project ensures
public access and maintains .the open space lands, there may be no direct
measurable impact on the City. On the other hand, if the proposed open space is
inaccessible or the amount of space available to the public is limited, then it could be
assumed that increased use of the City's open space .would occur. If this were the
Newhall Ranch Fiscal Impact Report —Estimated Impacts on the City of Santa Clarity
case, the City would incur someadditionalmaintenance costs; however, these costs
would be minor.
7. Street Maintenance
Two separate departments provide street maintenance services in the City. First,
the Streets Maintenance Division of Field Services is responsible for the day-to-day
street maintenance, including such activities as pothole repair, street sweeping,
asphalt and concrete maintenance, traffic signal maintenance, traffic markings and
striping, street lights, and curb and.gutter repair. Second, the Transportation and
Engineering Services Department is responsible for the overlay and slurry programs
administered under the Capital Improvement Program (CIP). Both of these
functions comprise the City's Street Maintenance operation.
Based on our examination of the City's 1997-98 Budget, Field Service's Street
Maintenance Division costs are $2,282,044, including administrative costs.
Referring to the CIP section of the 1997-98 Budget, the overlay and slurry program
costs are as follows:
Budget Budget
Project 1997-1998 Requested
1997-98 Annual Overlay
1997-98 Annual Slurry
$ 694,100
$ 629,400
$1,600,000
$1,500,000
TOTAL $1,323,500 $3,100,000
It is important to note that with regard to the 1997-98 annual overlay program the
estimated annual amount necessary to maintain City streets at the desired level of
service is more realistically $1.6 million. Historically, the actual budgeted amount
has been less than 50 percent of the amount necessary as indicated in the 1997-98
budgeted amount of $694,100. Similarly, with regards to the 1997-98 annual slurry
program, the estimated annual amount necessary to maintain the City streets at the
desired level of service is more realistically $1.5 million. Historically, the actual
budgeted amount has also been less than 50 percent of the amount necessary as
indicated by the 1997-98 budgeted amount of $629,400. To estimate the "optimal"
street maintenance cost impacts to the City as the result of trips generated by
Newhall Ranch residents, we would suggest using the annual amounts of $1.6
million and $1.5 million for the overlay and slurry programs, respectively. However,
we provide both scenarios.
Newhall Ranch Fiscal Impact Report - Estimated Impacts on the City of Santa Clarita 8
Based on the above discussion and the 1997-98 Budget, we estimate the "optimal"
annual costs of street maintenance to the City of Santa Clarita to be as follows:
Field Service Street Maintenance Division $2,282,044
Overlay and Slurry Program $3,100,000
TOTAL $5,382.044
Dividing this amount by the City's existing vehicle -miles -traveled (VMT) estimated
by the projects Fiscal Impact Report of 475,000 results in an estimated annual street
maintenancecost of $11.32 per VMT. Therefore, the Newhall Ranch project's
estimate of 96,360 VMT attributed to its residents would result in a fiscal impact to
the City of Santa Clarita of $1,090,000 ($11.32 X 96,360) a year at build -out.
The second scenario is to use the actual budget for street maintenance:
Field Service Street Maintenance Division $2,282,044
Overlay and Slurry Program (actual) $1,323,500
TOTAL $3.605.544
Using the actual budget numbers results in a cost of $7.59 per VMT. Therefore, the
Newhall Ranch project's estimate of 96,360 VMT attributed to its residents would
result in a fiscal impact to the City of Santa Clarita of $731,372 ($7.59 X 96,360) a
year at build -out.
The Levander Report utilizes City budget data of $2.5 million and calculates an
annual cost to the City of $501,000. The differences in this methodology are in the
actual versus needed dollars to keep streets in good condition, as well as the failure
to recognize the two separate functions, which provide street maintenance.
Therefore, the City's anticipated impact could be between $731,372 to $1,090,000.
SECTION V — COUNTY SERVICES
This section of the report identifies County services which are impacted by the
Newhall Ranch project. Although the County provides these services, with the
exception of Transit, the areas identified have an impact on the City of Santa
Clarita. The Levander Report does not identify the four areas below as having an
impact on the County or City. As with Section VI, each area contains a summary of
the impact and the estimated dollar figure associated with it.
1. Transit Services
The Santa Clarita Valley Transit System; operated by the City of Santa Clarita,
provides bus services in the areas and services some of the unincorporated areas
through a contract with the County. It is therefore likely that any future transit
services would be provided via the same contract. Revenues used to pay for transit
services come primarily from Proposition A, which established a one-half cent sales
tax to be used exclusively for transit projects, and the 'Los .Angeles County
Newhall Ranch Fiscal Impact Report — Estimated Impacts on the City of Santa Clarita 9
voter -approved Proposition C, that established a one-half cent sales tax for
transportation related projects.
Although the City will not provide transit services outside the City boundary
without being compensated by the County, the issue of evaluating the level of
services being discussed for the Newhall Ranch project must be addressed. In order
to provide an adequate level of service, at build -out the project area would cost
$8,293,928 annually, which after deducting estimated farebox revenue of $2,488,178,
would require a net subsidy of $5,805,750. Adjusting this to include an additional 15
percent to cover overhead expenses increases the required subsidy to $6,676,612. It
is estimated that $4,295,362 would be generated annually from Prop A and Prop C
revenue sources, thus leaving a $2,381,250 funding shortfall.
In addition to the operations costs associated with the Newhall Ranch project, it is
estimated that 40 new buses would be needed to provide that level of service. The
impending cost for those buses is approximately $10.4 million.
According to the Levander Report, the project is estimated to yield a financial
breakeven to County transit operations. However, it is important to note that .this
funding scenario is revenue based. To be more specific, these projections are based
on providing a level of service that is not. based on the level of need but on a level
only equal to the amount of revenues they project to be available. Therefore, it can
be assumed that if the County does not provide an adequate level of service to that
area, those residents will use City funded transit services, thus creating an impact
to the City.
Capital facilities costs are considered to be included in the contract costs for Newhall
Ranch, as stated by the Levander Report. Although that may apply for equipment
such as buses, in the past this contract has not addressed future capital facility
needs. In order to accommodate growth in the transit system, a new facility will be
needed. The City has a developer mitigation fee of $200 per unit, which contributes
to the cost of these types of transit needs. That fee is not currently applied to
development within the County, therefore, the capital costs which can be attributed
to growth in the immediate unincorporated areas do not contribute to the capital
facilities costs.
In summary, the impacts to transit are estimated at $2.4 million for operations and
$10.4 million for capital equipment. Additionally, the Levander Report does not
properly address transit capital facility needs. Inadequate transit service levels
would potentially impact the City. Whether this lack of services causes additional
traffic or additional use of City provided transit services, there is an impact to the
City.
2. Library Services
The Los Angeles County Library serves the Santa Clarita Valley area with mobile
library services and three libraries all located within the City of Santa Clarita,
including the Valencia, Newhall, and Canyon Country libraries. The mobile library
Newhall Ranch Fiscal Impact Report—Estimated Impacts on the City of Santa Clarita 10
provides services totheoutlying areas of the Santa Clarita Valley. These facilities
are currently inadequate to keep pace with the growth that is occurring both in the
City and in the outlying areas.
Development of the Newhall Ranch project would increase the need for additional
facilities and books. However, according to the DEIR, County library staff has
indicated that there are no current plans for facility expansion due to the lack of
available funding. Although the Newhall Ranch project forecasts a -funding surplus,
the County Library staff does not agree and has yet to come to agreement with the
applicant. It was also stated in the DEIR that, independent of the per dwelling unit
fee imposed under the DMS, "It is the opinion of the County Public Library staff that
funding allocations from tax revenue would not be adequate to offset the full impact
of cumulative development on the Library system and that cumulative development
would create a significant impact on the Library's ability to construct new libraries
and purchase new books."
Some issues facing libraries are not only the building of new facilities, but also the
funding to operate and maintain them. The County's interim development fee does
not cover the cost of land acquisition. Therefore, even if the project paid the
development fee, there would not be adequate funding to construct a library facility.
The other issue is operations. The County's General Fund currently subsidizes the
library system; however, there is no guarantee that this funding will be sustained.
As an example, even with property tax revenues and the annual special tax, the
City's three libraries depend on an approximate 28 percent County General Fund
subsidy (approximately $800,000); for the City of Santa Clarita that would equate to
$5.56 per capita in expenditures not covered by revenues. If you apply the same
methodology to the Newhall Ranch project, there would be an annual revenue
shortfall of approximately $383,640.
The Levander Report states that the Library will generate an operations surplus of
$12.0 million during the 25 -year development period and then $786,000 annually.
However, it also states that the Department's proposed 1995-96 budget calls for a
General Fund contribution of $10.0 million. The report further states that although
no shortfall is projected, it is expected that the County General Fund would be
expected to make up any difference.
Therefore, although the City of Santa Clarita does not directly pay for library
services, it is anticipated that without further analysis and mitigation agreements
with County Library staff, the City's residents will, in terms of libraries, be
negatively impacted by the Newhall Ranch project. Based on this information, the
statement in the Levander Report "property taxes will be sufficient to cover
operating costs" is highly unlikely and does not reflect the current fiscal situation of
the County Library system.
Newhall Ranch Fiscal Impact Report — Estimated Impacts on the City of Santa Clarity 11
3. Police Services
The City of Santa Clarita contracts with the County of Los Angeles Sheriffs
Department for police protection, which is provided from the Santa Clarita Valley
Sheriff Station.
The project. fiscal impact report estimates that at project build -out, the annual
Sheriff service costs will be $55.39 per capita (in 1995 .dollars) for staffing,
equipment, and operations for the Newhall Ranch area. Comparatively, the City of
Santa Clarita's per capita cost in 1995-96 was $77.68. Although the City's costs are
higher, it is important to note that this is due to the requirement of the City to
provide Traffic Enforcement services. In the unincorporated area, the Highway
Patrol is required to provided traffic enforcement. Therefore, if you compare the
general law service levels of both Newhall Ranch and the City of Santa Clarita,
there would not be a significant difference.
The Sheriffs Department has stated that current facilities will be sufficient to
accommodate the additional personnel needed for Newhall Ranch. No capital
facilities costs are identified.
In terms of the direct impact on City provided law enforcement, the addition of
96,360 vehicle -mile -trips within the City will create significant impacts to traffic
enforcement. The result of this additional traffic could mean additional traffic
collisions and the need for additional traffic enforcement services. The additional
personnel needed to accommodate this growth is unknown at this time.
With regard to general law enforcement, with 35 percent of Newhall Ranch
purchases occurring within the City, it can be expected that some impact will be
created to address minor crimes. Again, the fiscal impact is not known.
4. Fire Protection
Fire Protection service is provided to the Santa Clarita Valley area by the County of
Los Angeles Fire Department, and in particular, fire services provided to the City
are implemented under contract between both parties. All costs associated with the
provisions of such services are paid for via property tax revenue to the County.
According to the DEIR, the County Fire Department has indicated that fire service
in the Santa Clarita Valley area, including the City of Santa Clarita, is considered
adequate. In order to service the proposed project, the County Fire Department and
the Newhall Ranch applicant have agreed that three new fire stations will be
necessary — two located within the Specific Plan area and the third located at the
Del Valle Fire Training Center on Chiquito Canyon Road. The applicant is
responsible for land and the development of these stations, as well as certain
equipment as required under the Developer Fee Program.
It is anticipated that the City of Santa Clarita will not be impacted either financially
or in terms of the services provided as a result of the Newhall Ranch. project.
Newhall Ranch Fiscal Impact Report— Estimated Impacts on the City of Santa Clarita 12
SECTION VI - CONCLUSION
In conclusion, this report estimates that the Newhall Ranch project will have a
negative fiscal impact on the City of approximately $170,000 to $530,000 annually
(see chart below). As stated earlier, the Levander Report estimated the project to
have a positive fiscal impact to the City of approximately $1.8 million. In addition to
the identified impacts to the City; this report identifies several impacts on County
services. These services include Transit ($2.4 million operations and $10.4 million in
capital), Library services ($384,000), and Police services. In several instances, we
have indicated that there will be an impact, but the ability to accurately quantify
the impact is not feasible. We believe that this report accurately reflects all of the
impacts on the City services by the Newhall Ranch project. Both the Levander
Report and the City report are based on various assumptions over the next 25 years.
Actual impacts will only be known after development.
CITY IMPACTS
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REVENUE
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$2,300,000 $1,100,000
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Street Maintenance
$ 501,000
$ 731,372 - $1,090,000
Park Maintenance
$ 0
$ 156,000
Park Facilities Maintenance
$ 0
$ 206,000
Recreation
$ 0
$ 106,000
Facilities
$ 0
$ 70,450
TOTAL COSTS
$ 501,000
$1,269,822 - $1,628,450
TOTAL
$1,800,000
($170,000) - ($530,000)
COUNTYIMPACTS
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Transit
Adequate funding
($2.4 million) - operation
($10.4 million) - capital
Library
Surplus funding
($384,000)
Police
Adequate funding
Additional traffic enforcement
Fire
Adequate funding
No impact
Newhall Ranch Fiscal Impact Report - Estimated Impacts on the City of Santa Clarita 13