MSR G1 2 Farmersville Jan06

CHAPTER 2 – CITY OF FARMERSVILLE MUNICIPAL SERVICE REVIEW EXECUTIVE SUMMARY This section provides an overview of the written determinations findings of the Farmersville Municipal Service Review. As part of its review of municipal services, LAFCO is required to prepare a written statement of its determination with respect to each of the following: 1) Growth and population projections for the affected area; 2) Infrastructure needs and deficiencies; 3) Financing constraints and opportunities; 4) Cost avoidance opportunities; 5) Opportunities for rate restructuring; 6) Opportunities for shared facilities; 7) Government structure options; 8) Evaluation of management efficiencies; and 9) Local accountability and governance. These requirements are established by the AB 2838, the Cortese-Knox- Hertzberg Local Government Reorganization Act of 2000. The Farmersville MSR identifies the following written determinations. Written Determinations 1) Growth and Population Historical Data 1. Based upon Census 2000 data, Farmersville had an incorporated land area of approximately 1.9 square miles, a total population of 8,737, and 2,269 housing units. 2. Census 2000 data also indicates that the average dwelling unit occupancy rate for the City is approximately 4.1 persons per household, which is significantly higher than the County average of 3.3 persons per household. 3. The Farmersville General Plan Update estimates a build-out population of 17,854, corresponding to an annual average growth rate of 2.9%, estimated to occur by year 2025. 4. California Department of Finance data indicates that as of January 1, 2005, Farmersville had a population of 10,240, corresponding to an annual average growth rate of approximately 3.3% between 2000 and 2005. Current Boundaries 1. A City’s SOI typically lies between a City’s UDB, and UAB, or, in some cases, may be coterminous with a City’s UDB. Farmersville’s SOI extends beyond the City’s UDB, and is within the City’s UAB, consistent with current planning boundary definitions. The UAB and UDB lines were adopted by the City in 1999 and by Tulare County in 2000. 2. The Farmersville General Plan Update indicates that, in 2002, there was 1,205 acres of land within the City Limits, 1,726 acres of land within the UDB, and 2,952 acres of land within the UAB. According to the Tulare County GIS database, the Farmersville SOI contains approximately 2,517 acres of land. Land Use 1. The City’s General Plan Update provides an excellent tool for guiding future growth in Farmersville. The plan provides a detailed evaluation of current land use, and projected City of Farmersville MSR Page 2-1 Tulare County LAFCO MSR G1_2 Farmersville Jan06.DOC/55-7301-01 residential, commercial/office, industrial, parks, and school land demands to accommodate growth through the year 2025. 2. The General Plan Update concludes that there is more than enough land within the UDB to accommodate growth to the year 2025. The GPU also notes that City officials consider Farmersville to be grossly under-developed with commercial and industrial development, as compared to other Tulare County Cities. However, City officials have more recently indicated that growth and interest in the City have increased dramatically since the aforementioned information was documented. 3. To meet the provisions of current law, and to maintain consistency with the General Plan Update (which includes updates to the Land Use, Circulation, Conservation, and Open Space Elements), the City adopted a comprehensive update to their General Plan Housing Element in early 2005 consistent with current requirements set forth by State law. Proposition 46 provides funding assistance to address local housing and community development needs. Annexations 1. Since 1996, Farmersville has successfully annexed approximately 193 acres of land into the City, with two annexations totaling 37 acres annexed in 1999, one annexation totaling 55 acres in 2000, and three annexations totaling 101 acres in 2004. All annexations have occurred within the City’s UDB and SOI, with the exception of the most recent annexation, which was outside the boundary of the City’s UDB, but within the City’s SOI. Potential SOI Updates 1. The City has expressed interest in expanding its SOI to include areas north of the SR 198/Farmersville Boulevard interchange, as this is an ideal area for a warehousing or similar industrial operation, or highway commercial type uses, due to its prime access to SR 198. The land is currently within the City’s UAB, but outside the City’s UDB and SOI. 2) Infrastructure Needs and Deficiencies Planning Documents 1. The Farmersville GPU outlines comprehensive goals, objectives, and action plans related to the infrastructure of the City. As prescribed by GPU policy, new development shall be required to install water, sewer and storm drainage improvements to serve their needs. 2. The GPU recommends that the City’s water, sewer, and storm drainage development impact fees be reviewed annually, focusing on the relationship between the amount of fees being collected and the future capital needs of each system based on development trends. Any modifications to the City’s development impact fees should be in accordance with Assembly Bill 1600, which requires a clear relationship between fees and their purpose. City officials indicated that new impact fees will be in place by January 2006. 3. The Community Infrastructure Study (December 1998) serves as an interim update to the City of Farmersville Storm Drain Master Plan (1989), the City of Farmersville Sanitary Sewer Master Plan (1983), and the City of Farmersville Water System Master Plan (1993). Information contained in the study was to be incorporated into a City Infrastructure Master City of Farmersville MSR Page 2-2 Tulare County LAFCO MSR G1_2 Farmersville Jan06.DOC/55-7301-01 Plan to be considered for adoption by the City Council. The City should continue to pursue the adoption of an Infrastructure Master Plan, if not already in place. 4. City staff indicated that a 5-year capital improvement program (CIP) is being prepared, but is unsure when it will be completed. Water 1. The City’s Water System Master Plan (1993) found the City’s water supply system to have inadequate standby capacity, and inadequate firm capacity. As stated in the Community Infrastructure Study, no supply capacity improvements to the City’s water supply system have been completed since 1993. 2. Although it is likely that any development within the City’s UDB or SOI would likely rely on City infrastructure, a determination of water system adequacy to support any such developments cannot be made at this time. 3. The City should continue to work with developers, and land owners in the area who would be willing to donate land for construction of new wells to improve the City’s water supply system. 4. Improvements to the City’s water system have been significantly delayed due to limited financial resources. The City should continue to pursue and apply for community development block grants (CDBG) to construct necessary improvements to their water system to help support a growing population. City officials indicated that a CDBG was received to install a new well and generator. Sanitary Sewer 1. Recent improvements to the City’s sanitary sewer system improved the ability of the system to support development west of Virginia Avenue, north of Visalia Road, and north of Avenue 288 (Walnut Avenue). 2. The City’s WWTF operates under the provisions of Order No. 86-152, which prescribes a maximum 30-day average daily dry weather discharge flow of 1.25 MGD. The current ADWF into the WWTF is approximately 930,000 GPD. 3. City staff indicated that the WWTF currently has a reserve capacity of approximately 300,000 gallons per day, which could support an estimated 1,280 equivalent single family dwellings, or a population of approximately 14,720. 4. It is likely that the City’s WWTF will need to be improved to increase capacity to support growth through year 2025. The City should allocate necessary funding to program improvements to the WWTF. City staff indicated that the City is presently planning to build a new secondary treatment facility. Storm Drain 1. The City has a Master Planned storm drain system that is anticipated to meet drainage infrastructure needs to accommodate future growth. The City completed several storm City of Farmersville MSR Page 2-3 Tulare County LAFCO MSR G1_2 Farmersville Jan06.DOC/55-7301-01 drainage improvements along Linnel Avenue, Ash Street and Petunia Street through CDBG funding. In addition, the storm drain basin along Petunia Street is being expanded. 2. As indicated in the Community Infrastructure Study, Deep Creek has significant capacity available (in the order of 20-30 cfs) to accommodate future storm runoff. The Consolidated People’s Ditch Company has no capacity in their ditches to take on additional storm runoff. 3. With the exception of existing deficiencies, it is anticipated that most future storm drainage improvements would be development driven. The City should work with developers to construct on-site drainage facilities when feasible. Streets and Roads 1. The primary limitation of the City’s transportation system is the lack of railroad crossings. Both the GPU and the Community Infrastructure Study identify the need to construct additional railroad crossings to improve the City’s transportation system. The railroad company in the area has not been sympathetic to the idea of constructing new crossings. City staff indicated that they are in the process of securing one more crossing between Road 156 and Farmersville Boulevard. 2. The GPU indicates that funds for street improvement projects would come from gas tax and transportation funds. The circulation element also recommends that the City develop a traffic impact fee for new development in Farmersville, consistent with the requirements of AB 1600. 3. The GPU recommends that the City explore the merits of establishing a dial-a-ride service for the elderly, handicapped, and others who may not have access to transportation. The City of Visalia, as of November 2004, expanded its bus system to service to Farmersville, providing needed public transportation in the City. 4. There are currently no established bike lanes in Farmersville however the City has been participating with the Tulare County Association of Governments in the preparation of a bike plan for Tulare County and its Cities. The plan designates bike routes on Visalia Road, Farmersville Boulevard, Walnut Avenue, and Avenue 296. The City’s Circulation Element requires the installation of bike lanes on specified roadways as a condition of new development. Public Safety 1. Farmersville police and fire departments are operated with revenues allocated from the City’s general fund. 2. The City of Farmersville has one full time firefighter that operates the only fire station in the City. The remaining fire rescue crew consists of volunteers. 3. The Police Department is staffed with 14 sworn officers and one non-sworn position. One additional position is planned for hire in January 2006. 4. In 2004, Farmersville passed Measure U, a ½ cent sales tax increase, a portion of which revenues will be used to partially ensure essential government functions, including police, City of Farmersville MSR Page 2-4 Tulare County LAFCO MSR G1_2 Farmersville Jan06.DOC/55-7301-01 fire and other general fund services will continue in the future, providing a supplement to existing general fund revenues. 5. Measure G, on the November 2005 ballot, would have imposed a 4% utility users tax for the purpose of general government services including animal control, park maintenance, and public safety. Measure G was not passed by the voters. The City should consider preparing a comprehensive plan for expanding public safety services within the City. 6. Fire flow pressure ratings passed the last inspections (with a grading class five). A new well is scheduled for drilling for 2006-07 fiscal year through CDBG funding, which will improve the water supply system to ensure that standard levels of fire flow pressure can be met. 7. The City’s sworn police officer to population ratio is approximately 1:735, compared to a desirable ratio of 1:800. 8. The City currently receives $100,000 per year in State funding for two police officer positions. The City should have a plan in place to fund these positions with local dollars at the conclusion of the grant funding period. 9. Consistent with goals set forth by the City’s GPU, the police department implements innovative programs that promote an efficient delivery system including a volunteer program, take-home car program, and K-9 unit program. The City has two volunteer teams with plans for expansion to three teams. 3) Financing Constraints and Opportunities 1. The City’s budget clearly describes the services provided by the City to its residents and the funds expended for those services, although in recent years, the City has struggled to reach a balanced budget. The City adopted its fiscal year 2004-05 budget on October 25, 2004. 2. The City’s budget for fiscal year 2004-05 was adopted with the anticipation of the passage of two local measures, U and V, a ½ cent sales tax increase, and a 4% utility user’s tax, respectively. Since only Measure U passed, the City was forced to adjust its services to balance its budget in light of funding constraints. In the November 2005 election, Measure G, which would have imposed a 4% utility user tax, was unsuccessful. 3. Following the November 2004 elections, the City Manager of Farmersville announced his resignation. The City indicated that in the meantime, they will have to get by with current staff, and have no immediate plans to fill the City Manager position. Rene Miller, the finance director of the City has been named acting City Manager. 4. The City’s current financial constraints stem from the leakage of local sales tax dollars to the nearby Cities of Visalia and Exeter. The City should attempt to reverse the leakage of sales tax dollars to surrounding Cities by working to attract new retail establishments to the City, retaining existing businesses, and maintaining high standards that create an attractive business climate which is inviting to prospective new businesses. 5. The City has opportunities to enhance tax increment revenues by encouraging development in the redevelopment district. The City should consider the reduction of development impact City of Farmersville MSR Page 2-5 Tulare County LAFCO MSR G1_2 Farmersville Jan06.DOC/55-7301-01 fees, and higher residential densities in the redevelopment district in order to encourage infill development. 6. The City should continue to actively pursue State and Federal grants to expand and improve its current infrastructure and attract new businesses. The redevelopment agency should, on behalf of existing companies or companies interested in locating in Farmersville, apply for State or Federal grants that assist companies with off-site improvements, purchase of land or equipment or training of employees. 7. Likely fiscal benefits to the City from development within the SOI could include modest levels of property tax collections from residential land development (upon annexation of the land), potential transient occupancy tax revenues from new recreational land uses, and sales tax revenues where retail/commercial uses are developed. Likely fiscal costs to the City would typically include public maintenance of infrastructure completed for new projects in the SOI, and the provision of public safety services. 8. Farmersville’s development impact fees should be updated to ensure that new uses pay their fair share of the costs of providing infrastructure and services, while remaining competitive with other Cities and surrounding communities. City staff indicated that new impact fees will be in place by January 2006. The City is also having a capital improvement program prepared, but is unsure when it will be completed. 9. The City recognizes the need to overcome significant financial constraints, and continues to develop strategies to enhance current revenue streams. An example would be the passage of Measure U in 2004, a ½ cent increase in local sales tax, revenue that is to be used to partially ensure essential government functions, including police, fire, and other general fund service will continue in the future. The City should continue efforts to pass a utility users tax to supplement general fund revenues. 10. Farmersville is currently only one of two City’s in Tulare County that does not have a utility user tax, the other being Visalia, which has the largest sales tax base in the County. For all other City’s in Tulare County, the utility user tax has become a stable source of revenue to fund general government services. 4) Cost Avoidance Opportunities 1. Master planned infrastructure helps the City in avoiding unnecessary costs through effective planning and implementation policies, and help eliminate overlapping and/or duplicative services. 2. The City can avoid unnecessary up front costs of extending infrastructure to undeveloped areas by promoting effective growth management practices. The City should first promote development within infill areas, and areas where infrastructure is already in place. 3. The City has opportunities to avoid unnecessary costs through the construction of joint use projects including recreational facilities, parks, or a museum (in coordination with Tulare County). 4. The City could avoid unnecessary costs associated with maintaining infrastructure through the formation of homeowners associations within residential developments for larger scale City of Farmersville MSR Page 2-6 Tulare County LAFCO MSR G1_2 Farmersville Jan06.DOC/55-7301-01 residential developments or condominiums where shared (community) facilities such as playgrounds, parks, gyms, or swimming pools are present. 5. The City should review its investment practices to avoid unnecessary costs associated with losses (or shortfalls) on investment earnings. The City’s investment policy only allows for Local Agency Investment Fund (LAIF) or Treasury Bills (T-Bills) investments. 5) Opportunities for Rate Restructuring 1. The City has in-place development impact fees, connection fees, reconnection fees, and monthly user fees which are utilized to expand and maintain the City’s infrastructure systems. 2. City staff indicated that new impact fees will be in place by January 2006. The City is also preparing a capital improvement program, but is not sure when it will be completed. Capital improvement programs prioritize capital infrastructure needs in line with development demands, and within available funding. 3. The City should annually review utility user fees to ensure that rates are keeping pace with inflation, construction costs, and cost of living indexes. Utility user fees are to be used for operation and maintenance of existing facilities, and not for the construction of new infrastructure. 4. Monthly rates for sanitary sewer service in Farmersville are slightly above average compared to other Cities in Tulare County, while the City’s fee for a new sanitary sewer connection is among the lowest. 5. The City of Farmersville should work to implement goals and policies outlined in the general plan, as it establishes effective goals and policies with regard to the City’s financial structure. 6. The City of Farmersville should work to comply with the requirements of GASB 34 to improve the financial reporting of the City. 6) Opportunities for Shared Facilities 1. Based upon previous research, the City of Visalia voted to expand its public transportation to service Farmersville. 2. Farmersville also has mutual aid agreements with surrounding jurisdictions to provide fire and emergency support services. City officials indicated that the City’s public safety force responds to areas outside of the City more often than others respond to the City for assistance, and that Farmersville Fire responds out into the County to assist on an almost 2 to 1 basis. 3. The City’s general plan prescribes several opportunities for the City to share facilities and resources in the future. 4. As prescribed by the Farmersville General Plan, the City has opportunities to work with the Cities of Visalia and Exeter, and Tulare County to establish greenbelts to prevent the Cities from physically growing together. This would also help to preserve prime agricultural land within the County. City of Farmersville MSR Page 2-7 Tulare County LAFCO MSR G1_2 Farmersville Jan06.DOC/55-7301-01 5. The City should work with Tulare County to resolve mutual planning issues associated with the Linnel Farm Labor Center, and the Cameron Creek Colony. The Linnel Farm Labor Center, the Cameron Creek Colony, and the City could potentially share a single wastewater treatment facility. 6. The City should continue to look for opportunities to work with surrounding jurisdictions and agency’s, and cooperatively address mutual planning issues. 7) Government Structure Options 1. Since development of properties within the SOI generally relies on Master Planned infrastructure available from the City, it is logical for the City to assume the lead in planning for these sites. 2. Coordinated infrastructure plans, for development within the SOI area, submitted with specific annexation requests would create a checks and balance system for incorporating lands into the City while promoting improvements to impacted adjacent County land. 3. The City’s ability to effectively provide services to SOI areas appear to be limited primarily by financial resources. For this reason, it is likely that developers would be responsible for construction the infrastructure to accommodate such development. Requiring the preparation of Specific Plans for development within the City’s SOI could help identify funding mechanisms, and infrastructure needs to better serve such development. 4. City officials have indicated that the financial picture has and continues to change. Additional growth would also aid in expansion of services through impact fees and additional sales tax revenue. 5. There are no foreseeable boundary conflicts with surrounding Cities or special districts that would affect the current governmental structure of Farmersville. 8) Evaluation of Management Efficiencies 1. The City of Farmersville operates under the council-manager form of government. The Farmersville City Manager resigned on November 3, 2004 due to the City’s financial hardships. Rene Miller, Farmersville’s finance director, was named acting City Manager. The City has no immediate plans to fill the City Manager position. 2. It is likely that the City’s management efficiencies would improve through increased City revenue streams. Increased revenue streams could be accomplished through promoting economic development in the City, and seeking State and Federal grant/loan money that can be used for government operations. 9) Local Accountability and Governance 1. The City complies with the Brown Act, holding regular City Council meetings on the second and fourth Monday of each month at 7:00 p.m. in City Hall Council Chambers. 2. Farmersville is the only City within Tulare County that does not have an established website. The development of a website could help the City attract new businesses, enhance public City of Farmersville MSR Page 2-8 Tulare County LAFCO MSR G1_2 Farmersville Jan06.DOC/55-7301-01 access to information, and improve community involvement in City activities. City officials have indicated that there are plans to implement a website in the near future. 3. The preparation and distribution of a regular newsletter would also help keep the community informed on the current events of the City. 4. The City could gain a better understanding of the needs of the community by conducting an annual (or bi-annual) public opinion survey. City of Farmersville MSR Page 2-9 Tulare County LAFCO MSR G1_2 Farmersville Jan06.DOC/55-7301-01 2.0 CITY OF FARMERSVILLE 2.0.1 Background In July 2003, the Tulare County Local Agency Formation Commission (LAFCO) Board adopted a Municipal Service Review (MSR) exemption policy, which identifies the agencies that would be subject to a review and the extent of that review. The agencies in Tulare County were divided into three (3) categories: agencies subject to a full comprehensive study; agencies subject to a questionnaire study; and agencies exempt from a MSR study. The MSR exemption policy further identifies that the services subject to review shall be: • Police protection • Fire protection • Water and wastewater • Solid waste collection and disposal • Streets and traffic circulation • Power generation and distribution • Health Care It should be noted that due to the unique nature of healthcare, review of this service has been specifically excluded from this report. Power generation and distribution is provided by privately owned utility companies. The Southern California Edison (SCE) Company serves most of the Cities within Tulare County, including Farmersville. The City is contracted with Allied Disposal for solid waste collection and disposal services, including recycling services. Review of the services provided by privately owned and operated utility companies is outside the scope of this MSR. The City of Farmersville operates under the Council-Manager form and government, and provides the following services that are subject to a municipal service review: public safety (police and fire protection), highways and streets, wastewater collection, treatment, and disposal, domestic water, and storm drainage. The City of Farmersville, incorporated in 1960, is located in Tulare County in the central southern portion of the San Joaquin Valley. It is located on the south side of SR 198, a major east-west highway that serves the central valley region. Farmersville is five miles east of Visalia, two and a half miles west of Exeter, and ten miles northwest of Lindsay. The San Joaquin Valley is considered by the American Farmland Trust as the most threatened agricultural region in the County. Against a backdrop of high unemployment, low incomes, and distrust between various segments of the community, the Farmersville City Council undertook its General Plan Update through the year 2025. After two and a half years of public involvement, the City adopted policies that will maximize the efficient use of land and ensure that Farmersville remains separate from neighboring communities. The Farmersville General Plan Update (Collins & Schoettler Planning Consultants, September 2002) uses innovative features and smart growth planning techniques that addresses the City’s high unemployment rate. The plan also calls for establishing a farmland impact fee that will be assessed against new development. Funds will be used to purchase agricultural easements on prime farmland outside the City’s borders. City of Farmersville MSR Page 2-10 Tulare County LAFCO MSR G1_2 Farmersville Jan06.DOC/55-7301-01 The following discussions address the nine legislative factors required by the Cortese-Knox-Hertzberg Act; 1) Growth and population, 2) Infrastructure needs and deficiencies, 3) Financial constraints and opportunities, 4) Cost avoidance opportunities, 5) Opportunities for rate restructuring, 6) Opportunities for shared facilities, 7) Government structure options, 8) Evaluation of management efficiencies, and 9) Local accountability and governance. City of Farmersville MSR Page 2-11 Tulare County LAFCO MSR G1_2 Farmersville Jan06.DOC/55-7301-01 2.1 GROWTH AND POPULATION The purpose of this section is to present historical and projected growth patterns and population projections to establish a baseline for the evaluation of service needs. This section provides a summary and analysis of historical data, current planning boundaries, current and projected land use needs, land annexations and potential SOI updates. 2.1.1 Historical Data Based upon Census 2000 data, the City of Farmersville had an incorporated land area of approximately 1.9 square miles, a total population of 8,737, and 2,269 housing units. Historical Census data indicates that the City of Farmersville had a 1990 population of 6,233 which grew to a population of 8,737 by the year 2000, corresponding to an average annual population growth rate of approximately 3.4%, the highest of all City’s within Tulare County. The Farmersville General Plan Update (Collins & Schoettler Planning Consultants, September 2002) estimates a build-out population between 17,854 and 20,155, estimated to occur by year 2025. The plan’s “low” population projection is based on Farmersville’s average annual growth rate from 1980 to 2000 (2.9%), while its “high” population projection is based on the average annual growth rate from 1990 to 2000 (3.4%). The General Plan Update provides a land needs evaluation for a projected year 2025 build-out population of 17,854. To remain consistent with the General Plan Update, for analysis purposes a population of 17,854 will be used as the year 2025 service population for the City. Based upon data obtained from the California Department of Finance, as of January 1, 2005, Farmersville had a population of approximately 10,240, corresponding to an annual average growth rate of approximately 3.3% between 2000 and 2005. Census 2000 data also indicates that the average dwelling unit occupancy rate for the City is approximately 4.1 persons per household, which is significantly higher than the County average of 3.3 persons per household. Over 70% of the Farmersville population is of Hispanic decent. 2.1.2 Current Boundaries The current City Limit Boundary and the currently adopted SOI for the City of Farmersville are illustrated on Figure 2-1. The following excerpt from the Tulare County LAFCO website (www.co.tulare.ca.us/lafco/info.asp) defines a SOI and the purpose it serves. A “Sphere of Influence” is the physical boundary and service area that a local governmental agency is expected to serve. Establishment of this boundary is necessary to determine which governmental agencies can provide services in the most efficient way to the people and property in any given area. The Sphere of Influence requirement also works to discourage urban sprawl by preventing overlapping of jurisdictions and duplication of services. City of Farmersville MSR Page 2-12 Tulare County LAFCO MSR G1_2 Farmersville Jan06.DOC/55-7301-01 FIGURE 2-1 – FARMERSVILLE CITY LIMITS AND SPHERE OF INFLUENCE Source: Tulare County GIS Database (July 2004) City of Farmersville MSR Page 2-13 Tulare County LAFCO MSR G1_2 Farmersville Jan06.DOC/55-7301-01 In addition to City Limits, and a City’s SOI, additional boundaries are typically adopted to guide the planning process, including an Urban Area Boundary (UAB), and Urban Development Boundary (UDB). The General Plan Update identifies the following planning boundary definitions, as defined by Tulare County’s Urban Boundaries Element: UAB – “ … the areas where land uses are presumed to have an impact on the adjacent incorporated City, and within which the Cities’ concerns are to be given serious consideration as part of the land use review process. The urban area is considered to be the next logical area in which urban development may occur and the area within which Urban Development Boundaries may ultimately be expanded.” UDB – “ … a 20-year planning boundary within which urban development is expected to occur over the plan period.” The UAB and UDB lines were adopted by the City in 1999 and by Tulare County in 2000. The Farmersville planning area is located within Farmersville’s UAB. A City’s SOI typically lies between a City’s UDB, and UAB, or, in some cases, may be coterminous with a City’s UDB. Farmersville’s SOI extends beyond the City’s UDB, and is within the City’s UAB, consistent with current planning boundary definitions. Based upon information contained in the Farmersville General Plan Update, in 2002, there was 1,205 acres of land within the City Limits, 1,726 acres of land within the UDB, and 2,952 acres of land within the UAB. According to the Tulare County GIS database, Farmersville’s SOI contains approximately 2,517 acres of land. Figure 2-2 illustrates the City of Farmersville UDB and UAB (consistent with the City’s General Plan GIS database) in comparison to the City Limits and SOI (consistent with the County’s GIS database). City of Farmersville MSR Page 2-14 Tulare County LAFCO MSR G1_2 Farmersville Jan06.DOC/55-7301-01 FIGURE 2-2 – FARMERSVILLE UDB, UAB, SOI & CITY LIMITS Source: Tulare County GIS Database (July 2004) & City of Farmersville GIS Database (2002) City of Farmersville MSR Page 2-15 Tulare County LAFCO MSR G1_2 Farmersville Jan06.DOC/55-7301-01 2.1.3 Land Use Farmersville’s urban area is generally centered along Farmersville Boulevard, the City’s major north/south roadway. The City’s downtown commercial area is situated along Farmersville Boulevard generally between Visalia Road and Front Street. Additional commercial areas are located on Visalia Road, east and west of Farmersville Boulevard and on Farmersville Boulevard, north of Front Street and south of Visalia Road. Residential neighborhoods are located throughout the City, with the oldest neighborhoods located around the intersection of Farmersville Boulevard and Visalia Road. Newer residential development is occurring in the northwest portion of the City, north and south of Walnut Avenue. The City has experienced a very limited amount of industrial development; current uses include a nut/fruit drying plant, and a cement mixing plant. The City’s only industrial park is located along Terry Avenue, west of Farmersville Boulevard. Major facilities owned by the City of Farmersville include six neighborhood parks, the Farmersville Civic Center, a public works yard, two City-operated child care facilities, and the City’s wastewater treatment plant located southwest of the City. The City’s General Plan Update provides an excellent tool for guiding future growth in Farmersville. The plan provides a detailed evaluation of current land use, and projected residential, commercial/office, industrial, parks, and school land demands to accommodate growth through the year 2025. The General Plan Update concludes that there is more than enough land within the UDB to accommodate growth to the year 2025. The General Plan Update (GPU) also notes that City officials consider Farmersville to be grossly under-developed with commercial and industrial development, as compared to other Tulare County Cities. As such, the land demand projections should be tempered by that realization. City officials have more recently indicated that growth and interest in the City have increased dramatically since the aforementioned information was documented. According to The California Planners 2005 Book of Lists, Farmersville last updated its General Plan Housing Element in 2004. State law SB 491 requires that housing elements be updated according to a schedule set by the Department of Housing and Community Development. All Cities within Tulare County were required to submit a third revision to their housing element by December 31, 2003. The fourth revision of the General Plan Housing Element is scheduled for June 30, 2009. To meet the provisions of current law, and to maintain consistency with the General Plan Update (which includes updates to the Land Use, Circulation, Conservation, and Open Space Elements), the City adopted a comprehensive update to their General Plan Housing Element in early 2005 consistent with current requirements set forth by State law. Proposition 46 provides funding assistance to address local housing and community development needs. 2.1.4 Annexations Since 1996, Farmersville has annexed approximately 193 acres of land into the City, with two annexations totaling 37 acres annexed in 1999, one annexation totaling 55 acres in 2000, and three annexations totaling 101 acres in 2004. The 37 acres annexed in 2000 included three parcels located at the southeast quadrant of the SR 198/Farmersville Boulevard interchange. The 55 acres annexed in 1999 included a 9 acre parcel located at the northeast corner of Farmersville Boulevard and Avenue 288, and 28-acres of land located northwest of the Avenue 288/Ventura Avenue intersection. The 101 acres annexed in 2004 included 23 additional acres of land located near the northwest quadrant of the Avenue 288/Ventura Avenue intersection, 40 acres of land located north of Visalia Road just west of the previous City Limit Boundary, and 38 acres just west of the previous City Limit Boundary, south of the railroad City of Farmersville MSR Page 2-15 Tulare County LAFCO MSR G1_2 Farmersville Jan06.DOC/55-7301-01 tracks. Figure 2-3 illustrates the areas that Farmersville has annexed into the City since 1999 (no annexations occurred between 1996 and 1998). As indicated in Figure 2-3, on the following page, all annexations have occurred within the City’s UDB and SOI with the exception of the most recent annexation, which was outside the boundary of the City’s UDB, but within the City’s SOI. City of Farmersville MSR Page 2-16 Tulare County LAFCO MSR G1_2 Farmersville Jan06.DOC/55-7301-01 FIGURE 2-3 – LOCATION OF PAST ANNEXATIONS (1999 – 2005) Source: Tulare County GIS Database & City of Farmersville GIS Database (2002) City of Farmersville MSR Page 2-17 Tulare County LAFCO MSR G1_2 Farmersville Jan06.DOC/55-7301-01 2.1.5 Potential Sphere of Influence Updates As previously noted, a LAFCO SOI represents the physical boundary and service area that a local governmental agency is expected to serve, while a UDB generally represents the area around a City designed to contain enough land to accommodate 20-years of growth. A City’s SOI should generally extend beyond, or, in some cases, be coterminous with a City’s UDB, while remaining within a City’s UAB, which is the case for the City of Farmersville. The City has expressed interest in expanding its SOI to include areas north of the SR 198/Farmersville Boulevard interchange, as this is an ideal area for a warehousing or similar industrial operation, or highway commercial type uses due to its prime access to SR 198. The land is currently within the City’s UAB, but outside the City’s UDB. 2.1.6 Written Determinations Historical Data 1. Based upon Census 2000 data, Farmersville had an incorporated land area of approximately 1.9 square miles, a total population of 8,737, and 2,269 housing units. 2. Census 2000 data also indicates that the average dwelling unit occupancy rate for the City is approximately 4.1 persons per household, which is significantly higher than the County average of 3.3 persons per household. 3. The Farmersville General Plan Update estimates a build-out population of 17,854, corresponding to an annual average growth rate of 2.9%, estimated to occur by year 2025. 4. California Department of Finance data indicates that as of January 1, 2005, Farmersville had a population of 10,240, corresponding to an annual average growth rate of approximately 3.3% between 2000 and 2005. Current Boundaries 1. A City’s SOI typically lies between a City’s UDB, and UAB, or, in some cases, may be coterminous with a City’s UDB. Farmersville’s SOI extends beyond the City’s UDB, and is within the City’s UAB, consistent with current planning boundary definitions. The UAB and UDB lines were adopted by the City in 1999 and by Tulare County in 2000. 2. The Farmersville General Plan Update indicates that, in 2002, there was 1,205 acres of land within the City Limits, 1,726 acres of land within the UDB, and 2,952 acres of land within the UAB. According to the Tulare County GIS database, the Farmersville SOI contains approximately 2,517 acres of land. Land Use 1. The City’s General Plan Update provides an excellent tool for guiding future growth in Farmersville. The plan provides a detailed evaluation of current land use, and projected residential, commercial/office, industrial, parks, and school land demands to accommodate growth through the year 2025. City of Farmersville MSR Page 2-18 Tulare County LAFCO MSR G1_2 Farmersville Jan06.DOC/55-7301-01 2. The General Plan Update concludes that there is more than enough land within the UDB to accommodate growth to the year 2025. The GPU also notes that City officials consider Farmersville to be grossly under-developed with commercial and industrial development, as compared to other Tulare County Cities. However, City officials have more recently indicated that growth and interest in the City have increased dramatically since the aforementioned information was documented. 3. To meet the provisions of current law, and to maintain consistency with the General Plan Update (which includes updates to the Land Use, Circulation, Conservation, and Open Space Elements), the City adopted a comprehensive update to their General Plan Housing Element in early 2005 consistent with current requirements set forth by State law. Proposition 46 provides funding assistance to address local housing and community development needs. Annexations 1. Since 1996, Farmersville has successfully annexed approximately 193 acres of land into the City, with two annexations totaling 37 acres annexed in 1999, one annexation totaling 55 acres in 2000, and three annexations totaling 101 acres in 2004. All annexations have occurred within the City’s UDB and SOI, with the exception of the most recent annexation, which was outside the boundary of the City’s UDB, but within the City’s SOI. Potential SOI Updates 1. The City has expressed interest in expanding its SOI to include areas north of the SR 198/Farmersville Boulevard interchange, as this is an ideal area for a warehousing or similar industrial operation, or highway commercial type uses, due to its prime access to SR 198. The land is currently within the City’s UAB, but outside the City’s UDB and SOI. City of Farmersville MSR Page 2-19 Tulare County LAFCO MSR G1_2 Farmersville Jan06.DOC/55-7301-01 2.2 INFRASTRUCTURE NEEDS AND DEFICIENCIES The purpose of this section is to evaluate the infrastructure needs and deficiencies of the City of Farmersville in terms of availability of resources, capacity to deliver services, condition of facilities, service quality, and levels of service. This section provides a summary of the policies and recommendations with relation to infrastructure, as contained in the GPU. This section also includes a summary of current infrastructure plans relating to water, sewer, storm drain, streets and roads, and public safety, including discussions regarding budgetary aspects of improving and expanding such infrastructure. LAFCO is responsible for determining that an agency requesting an SOI amendment is reasonably capable of providing needed resources and basic infrastructure to serve areas within the City and its SOI. It is important that these findings of infrastructure and resource availability are made when revisions to the SOI and annexations occur. LAFCO accomplishes this by evaluating the resources and services to be expanded inline with increasing demands. The City of Farmersville currently has no formal proposals to expand its SOI. 2.2.1 Planning Documents The Farmersville GPU outlines comprehensive goals, objectives, and action plans related to the infrastructure of the City. As prescribed by GPU policy, new development shall be required to install water, sewer and storm drainage improvements to serve their needs. The City’s GPU identifies where development will occur through year 2025, and is shaped so that it is generally in concert with existing sanitary sewer, water, and storm drainage Master Plans. Although the plan was shaped around current Master Planning, it recommends that the current Master Plans be reviewed in order to ensure that they can properly and efficiently serve future development prescribed by the land use element. The GPU recommends that the City’s water, sewer, and storm drainage development impact fees be reviewed annually, focusing on the relationship between the amount of fees being collected for each of the accounts and the future capital needs of each system based on development trends. Any modifications to the City’s development impact fees should be in accordance with Assembly Bill 1600, which requires a clear relationship between fees and their purpose. City officials indicated that new impact fees will be in place by January 2006. Development impact fees are generally used to implement a City’s capital improvement program. City staff indicated that a 5-year capital improvement program (CIP) is being prepared, but is unsure when it will be completed. The GPU recommends that the Redevelopment Agency prepare a 5-year CIP, and associated developer impact fees, to assist in the maintenance, rebuilding and upgrading of Farmersville’s infrastructure systems within the redevelopment project area. In addition to the GPU, the City has provided a Community Infrastructure Study (Quad Knopf, December 1998), a Sanitary Sewer Master Plan (Quad Knopf, January 1983), and a Water System Study (Quad Knopf, July 2000). The Community Infrastructure Study (December 1998) serves as an interim update to the City of Farmersville Storm Drain Master Plan (1989), the City of Farmersville Sanitary Sewer Master Plan (1983), and the City of Farmersville Water System Master Plan (1993). Information contained in the study was to be incorporated into a City Infrastructure Master Plan to be considered for adoption by the City Council. The City should continue to pursue the adoption of an infrastructure master plan, if not already in place. The contents of these Plans/Studies are summarized in the following sections. City of Farmersville MSR Page 2-20 Tulare County LAFCO MSR G1_2 Farmersville Jan06.DOC/55-7301-01 2.2.2 Water The City’s water distribution system consists of a grid network of about 25 miles of asbestos cement (AC) and polyvinyl chloride (PVC) pipeline with sizes ranging from 4-inches to 12-inches. The distribution system has numerous valves and fire hydrants throughout. The supply needs of the system are met by six deep well turbine pumps; individual pump output varies from a low of 413 gallons per minute to a high of 1,104 gallons per minute. The wells are fairly uniformly disbursed throughout the City and are controlled by pressure switches and hydro-pneumatic tanks. Pressure switches are set to turn pumps on when the pressure drops to 32 psi and off when it rises to 80 psi. Two of the wells have 10,000 gallon hydro- pneumatic tanks, and four have 5,000 gallon hydro-pneumatic tanks, resulting in a total storage capacity of 40,000 gallons. The depth of the wells ranges from approximately 280 to 410 feet, with a static groundwater level between 50 and 65 feet below ground surface. Three of the six wells have standby emergency generators to operate the pumps when power outages occur. The system was initially constructed in 1955, and has been operated, maintained and expanded by the City of Farmersville since 1960. In addition to the six operational wells, the City also has one well, near the southwest corner of Front Street and Magnolia Avenue, which has been abandoned and is no longer in service. In May of 1993, the City of Farmersville adopted a Water System Master Plan (May 1993) to serve as the guiding document for the City’s water system expansion and maintenance. In December 1998, the City had a Community Infrastructure Study prepared for the purposes of establishing the conditions of and planning for improvements to the existing storm drainage system, sewage collection and treatment system, water supply and distribution system, and the street system. Both the Master Plan and the Community Infrastructure Study recommend the addition of wells and pipelines at various City locations, in order to improve the distribution patterns and pressures of the existing water supply system. The 1993 Water System Master Plan evaluated the adequacy and reliability of the City water supply system by determining if the system had reliable standby capacity and adequate firm capacity. The Master Plan considered the City of Farmersville water supply system to have inadequate standby capacity because the system could not supply the average daily flow rate with only two of the three wells that have standby power generators. Similarly, the system was considered to have inadequate firm capacity because it was not capable of supplying the peak hour flow rate or the peak daily flow rate plus fire flow rate with only four of the six wells in operation. Based on the above system deficiencies, the Master Plan estimated that by the year 2000 the City would require three additional wells for its water supply system. In July 1999, the City requested funds from the Department of Housing and Community Development (CDBG Application, 7/99) – Community Development Block Grant to accomplish the planning, technical analysis, and preliminary engineering design of new wells and pipelines for the water supply system. A Water System Study was prepared for the City of Farmersville by Quad Knopf, Inc. once funding was secured. The study was undertaken to determine the need for, and location of a new well for the City of Farmersville water system. In addition, the study evaluates what other improvements, if any, are required to improve the system adequacy and reliability. The following excerpt is from the Water System Study (Quad Knopf, July 2000), “Since 1993 the supply of water to Farmersville has not been augmented. In fact, it appears that each of the existing wells supply less water than before because they have developed deeper drawdowns as a result of a deeper regional water table. However, the City water demand has increased due to population growth, and expansion of the water distribution grid.” City of Farmersville MSR Page 2-21 Tulare County LAFCO MSR G1_2 Farmersville Jan06.DOC/55-7301-01 The Water System Study found the current system adequacy and reliability to be “marginal”; and that low pressures result in the north portion of the City under extreme or critical operating conditions. The study made further determinations with regard to the City’s water system as follows, • A new well is required. • The tentative location of the new well (at Walnut Avenue and Ventura Avenue, on site to be donated by a developer) is satisfactory. • Emergency standby power should be furnished at another, existing well. • Additional pipeline connections (three) should be made between the northern and southern portions of the water system, under the railroad tracks bisecting the City. Based upon discussions with the City of Farmersville Public Works Department, installation of the above improvements is still in planning and design stages, and has been delayed due to financial constraints. The total estimated cost for a new well, installation of an emergency power unit at existing well, and new pipeline connections was estimated at $440,000 in July 2000. City officials have indicated that a Community Development Block Grant was received for the installation of a new well and generator. The City has two funds set up for maintaining and expanding its water system infrastructure; the Water Utility Fund, which includes funds generated from user fees, reconnection fees, and investment earnings which are used for the operation and maintenance of the current water system; and the Water Development Fund, which includes funds generated from developer fees and interest income which are used for the construction of capital improvements. 2.2.3 Sanitary Sewer Based upon information contained in the Community Infrastructure Study (Quad Knopf, December 1998), the City’s sanitary sewer infrastructure consists of over 16 miles of collection lines with sizes ranging from 6-inches to 18-inches. Three pump stations are located in the system; one located at Oakview Avenue/Ash Avenue, one at Yew Street/Susan Avenue, and one at Ventura Avenue/ Petunia Street. The sewage collection system generally consists of two main systems: one system lying east of Deep Creek, and the other situated west of Deep Creek. Connection of the two systems is at the intersection of Tulare Avenue and Shasta Street. The majority of the collection system was installed in 1969. The balance was installed by land developers to serve new subdivisions. As outlined in the Community Infrastructure Study, the primary limitation of the existing system was the lack of capacity for future development (a) west of Virginia Avenue and north of Visalia Road, and (b) north of Avenue 288 (Walnut Avenue). This need has been partially addressed by the recently installed 18” trunk line along the Virginia Avenue alignment, from Visalia Road to the treatment plant. However to fully utilize this line, a major force main/trunk line project was needed. Without the major project, new development of housing, industrial and commercial in these areas would have been severely limited. The Community Infrastructure Study recommended the following sanitary sewer collection system improvements be constructed as a part of the major force main/trunk line project: • Phase I – Install 15-inch gravity line along Walnut Avenue, from Farmersville Boulevard westerly to a new pump station to be located approximately ¼ mile west Ventura Avenue. From the pump station, a force main would be extended southerly to Visalia Road and discharged into the trunk line installed along Virginia Avenue. • Phase II – Install a trunk line northerly along Farmersville Boulevard, from Walnut to Terry Avenue. City of Farmersville MSR Page 2-22 Tulare County LAFCO MSR G1_2 Farmersville Jan06.DOC/55-7301-01 • Phase III – Install a trunk line northerly along Farmersville Boulevard, from Terry Avenue to SR 198. • Phase IV – Install a trunk line ½ mile easterly from Farmersville Boulevard along Walnut Avenue. Based upon discussions with the City of Farmersville Public Works Department, the improvements outlined above have been constructed, and are currently operating. Phase I provided the backbone system for all future development in the area, phase II allows for sewer service to the existing industrial area, as well as to existing housing, and for future development in the area, phase III allows for new industrial and commercial development at the northerly end of Farmersville Boulevard, including the SR 198 intersection, and phase IV allows for future development in the area near the high school site. The City’s current wastewater treatment facility (WWTF) – a primary treatment facility – occupies approximately 40 acres located about a mile south of Visalia Road. The WWTF consists of headworks, metering station, pumps, three mechanically aerated treatment ponds, and ten evaporation/percolation ponds with a total surface area of approximately 27 acres. Although the City owns 4 acres of land, adjacent to the treatment facility, which is available for irrigation (use of reclaimed water), it has not been necessary in recent years to discharge any effluent from the evaporation/percolation ponds for irrigation. The entire treatment/disposal system is relatively well maintained; the evaporation /percolation ponds are periodically, in rotation, drained and bottom-ripped to maintain disposal capacity. Based upon information contained in the Wastewater User Charge Survey Report FY 2004-05 (Cal EPA – State Water Resources Control Board, May 2005), the average dry weather flow at the WWTF is approximately 930,000 gallons per day (GPD). The City’s WWTF currently operates under the provisions of Order No. 86-152, issued by the Regional Water Quality Control Board (RWQCB). The Order prescribes a maximum 30-day average daily dry weather discharge flow of 1.25 MGD. City staff indicated that the WWTF has reserve capacity for approximately 300,000 GPD, and that there is sufficient capacity at the WWTF to accommodate an additional 1,280 equivalent single family dwellings (ESD’s), or an estimated population of approximately 14,720. Based upon these estimates, it is reasonable to assume that the City will need to construct additional improvements to its WWTF to increase capacity to accommodate growth through year 2025. City staff indicated that the City is presently planning to build a new secondary treatment facility. Based upon information contained in the Community Infrastructure Study, during the early 1980s, the plant’s disposal facilities could not handle all of the effluent. Several factors contributed to the problem; the pond bottoms were not regularly dried and ripped; there were fewer ponds available for disposal; the groundwater level in the area approached or exceeded the level of the pond bottoms. Emergency, pumped, discharge to Deep Creek was required, despite the objections and concerns of the irrigation district and regulatory agencies. It is anticipated that, should high groundwater again occur because of prolonged flow in the adjacent ditches and wet-year rainfall, disposal difficulties may again occur. In 1994, the City Engineer prepared an analysis of alternatives for long-term treatment and disposal of the City of Farmersville’s wastewater. The analysis took into account not only the existing capacity of the City’s facilities but the potential disposal difficulties inherent in the plant location with respect to a possible recurrence of the high groundwater experienced in the 1980s. Several alternatives were evaluated including relocation of the WWTF, facility modifications to cope with high groundwater, and connection to the City of Visalia’s WWTF. Relocation was deemed infeasible, and connection to the City of Visalia’s system was informally determined by the City Council to be not desirable at that time. As long as low groundwater conditions prevail, the City may expand the treatment and disposal capacity City of Farmersville MSR Page 2-23 Tulare County LAFCO MSR G1_2 Farmersville Jan06.DOC/55-7301-01 relatively cheaply by building additional, lined, aeration ponds and additional unlined evaporation/percolation ponds, despite the likelihood of concern by the RWQCB about potential groundwater contamination from pond leakage long-term. It is evident from past experience that the City’s plant location mandates the construction and operation of expanded treatment and disposal facilities, and the modification of existing facilities, which can operate satisfactorily during periods of normal and above-normal rainfall. Modifying existing facilities to enable wet cycle compliance with State requirements would require the following improvements, with an estimated cost of approximately $5,000,000. • Lining of the existing 27-acres of evaporation/percolation ponds. • Acquisition of 160 acres of land for crop irrigation, replacing percolation disposal capacity. It is likely that additional improvements to the City’s WWTF will be necessary to accommodate growth to year 2025. As stated in the Community Infrastructure Study, with the existing flow to permitted flow ratio (925,000 GPD/1,250,000 GPD, 74%), and no recent history of permit violations due to high groundwater, it is unlikely that the City will receive funding for the long-range treatment/disposal facilities necessary to cope with high groundwater related disposal problems. The Community Infrastructure Study classifies priorities for the recommended infrastructure projects as urgent, high, medium, or low. Based upon available information, and discussions with City officials, it has been determined that the City has constructed all sewer improvement projects classified as either urgent or high priority. Medium priority projects will be needed when future development demands, or as remedial work for existing deficiencies or problems. Low priority projects include remedial or other minor work which is not currently creating serious problems or new construction that is developer driven or subject to other constraints, railroads for example. The City has two funds set up for maintaining and expanding its sanitary sewer infrastructure; the Sewer Utility Fund, which includes funds generated from user fees, reconnection fees, and investment earnings which are used for the operation and maintenance of the current sewer system; and the Sewer Development Fund, which includes funds generated from developer fees and interest income which are used for the construction of capital improvements. 2.2.4 Storm Drainage A comprehensive analysis of the City of Farmersville storm drain system is contained in the Community Infrastructure Study. The Community Infrastructure Study references the City of Farmersville Storm Drain Master Plan from 1989. Since the Community Infrastructure Study is more recent, it will be used as the basis for the discussion and evaluation presented in this section. The Farmersville storm drain system is similar to that of other Tulare County communities; a combination of surface drainage facilities and underground gravity flow pipelines. The two primary points of discharge are the Consolidated Peoples’ Ditch Company’s Extension Ditch and Deep Creek. The City’s storm drain infrastructure is categorized by twenty six sub-areas, A through Z. Watercourses within the study area are Cameron Creek, Deep Creek, Extension Ditch, Blain Ditch, Lower Extension Ditch, Hart-Sweeney Ditch and Sims-Davis Ditch. Except for Cameron Creek, which is operated by the Tulare Irrigation District, all of the channels are operated by Consolidated People’s Ditch Company. The Community Infrastructure Study states that CPD and its ditches are currently at or near capacity and no further discharges could be accepted by the District. Deep Creek is capable of taking significant discharge increases (in the order of 20-30 cubic feet per second). Discharges to Consolidated City of Farmersville MSR Page 2-24 Tulare County LAFCO MSR G1_2 Farmersville Jan06.DOC/55-7301-01 People’s Ditch Company facilities are governed by an agreement between the Company and the City of Farmersville. The Storm Drain Master Plan (1989) identifies remedial work necessary to bring the system up to current design standards, and additional systems to accommodate future development. The Community Infrastructure Study identifies the more serious problem areas, and suggests solutions. With regard to storm drainage improvements, the Community Infrastructure Study identifies one “urgent priority” improvement, one “high priority” improvement, and several medium and low priority projects. With the exception of existing deficiencies, it is anticipated that most future storm drainage improvements would be development driven. The City’s Storm Drain Master Plan was adopted in 1989 therefore the City should periodically review its current Master Plan in line with projected growth, and determine an appropriate schedule for updating it. The City should continue to implement storm drainage improvements as outlined in the Storm Drain Master Plan and the Community Infrastructure Study, as these documents provide for an excellent guide in the improvement and expansion of the City’s current system. The City completed several storm drainage improvements along Linnel Avenue, Ash Street, and Petunia Street with CDBG funding. In addition, the storm drainage basin along Petunia Street is being expanded. The City has one fund set up for maintaining and expanding its storm drain infrastructure; the Storm Drain Fund, which includes funds generated from user fees, and investment earnings which are used for the operation, maintenance, and expansion of the current storm drain system. The Storm Drain Fund is anticipated to have an ending fund balance of $67,336 at the end of fiscal year 2004-05. There was no funding allocated for storm drain infrastructure improvements for fiscal year 2003-04 or fiscal year 2004- 05. The City should consider implementing a storm drain developer impact fee to fund expansions to the City’s storm drain system. 2.2.5 Streets and Roads The City street system is fairly simple, with Farmersville Boulevard acting as the only north-south major arterial. It extends through the entire town, and to the SR 198 interchange. Visalia Road has been the primary east-west arterial for some time. Due to recent developments along and/or near Walnut Avenue, it is developing into a major east-west collector facility. There are currently two signalized intersections in Farmersville, Farmersville Boulevard/Visalia Road and Farmersville Boulevard/Walnut Avenue. No improvements to the above intersections are anticipated to maintain acceptable levels of service through the current planning period to year 2025. Major roadways in the City of Farmersville include SR 198, Farmersville Boulevard, Visalia Road, and Walnut Avenue. As identified in the GPU, it will be necessary to install traffic signals at the following intersections sometime during the planning period. • Intersections at SR 198/Farmersville Boulevard interchange • Farmersville Boulevard/Ash Avenue • Farmersville Boulevard/Terry Avenue Both the Community Infrastructure Study and the GPU identify the need for additional north-south railroad crossings, as currently Farmersville Boulevard is the only roadway that crosses the railroad tracks to connect the northern and southern portions of the City. This forces residents of neighborhoods on both sides of the tracks to “funnel out” onto Farmersville Boulevard to gain access to the other side of the City. Additional connections across the railroad tracks would strengthen the circulation system in several ways including reducing traffic on over burdened streets, reducing trip lengths, reducing air pollution and fuel consumption, and enhancing emergency vehicle access in the City. The Community Infrastructure Study City of Farmersville MSR Page 2-25 Tulare County LAFCO MSR G1_2 Farmersville Jan06.DOC/55-7301-01 identifies three roadways, Ventura Avenue, Rose Avenue, and Brundage Avenue as being logical crossing points, however, the railroad is not currently sympathetic to additional crossings. As indicated in the Community Infrastructure Study, future railroad crossings at Rose Avenue and Brundage Avenue could be developer driven, and funded, and that a future railroad crossing at Ventura Avenue would most likely be a City funded project. City staff indicated that they are currently in the process of securing one more crossing between Road 156 and Farmersville Boulevard. There are no urgent, high, or medium priority transportation projects identified in the Community Infrastructure Study. The Farmersville GPU identifies several issues for which goals and policies are established. Issues relating to the City’s circulation system, for which goals, objectives and action plans have been established include the following. • Traffic • Arterials • Collectors • Local streets and alleys • Intersections • Green streets program • Street connectivity • Truck traffic • Parking • Transit • Bike paths and pedestrian pathways • School routes The GPU states that the City will program street improvements into its 5-year capital budget to ensure the specified level of service (LOS) is not exceeded in the City limits. Funds for street improvement projects would come from gas tax and transportation funds. The GPU also recommends that the City develop a traffic impact fee for new development in Farmersville, consistent with the requirements of AB 1600. Farmersville is the only City in Tulare County without a public transit service. There is a bus service provided by Orange Belt stages that provides access to other California Cities. In addition, the City of Visalia recently (as of November 2004) expanded its bus system to service Farmersville. The GPU recommends that the City explore the merits of establishing a dial-a-ride service for the elderly, youth, handicapped, and others who may not have access to transportation. There are currently no established bike lanes in Farmersville however the City has been participating with the Tulare County Association of Governments (TCAG) in the preparation of a bike plan for Tulare County and its Cities. The plan designates bike routes on Visalia Road, Farmersville Boulevard, Walnut Avenue and Avenue 296. The City’s Circulation Element requires the installation of bike lanes on specified roadways as a condition of new development. The City has the following funds set up for transportation improvements: • Surface Transportation Fund • Gas Tax Fund • Transportation Fund (LTF) • Traffic Congestion Relief Fund (AB 2928) City of Farmersville MSR Page 2-26 Tulare County LAFCO MSR G1_2 Farmersville Jan06.DOC/55-7301-01 2.2.6 Public Safety (Fire & Police) The GPU identifies goals, objectives, and action plans related to the City’s public safety services. To promote a safe community that is free of crime and fire hazards, new developments should be designed such that crime and fire safety are considered during the City’s site plan review process. Members of the Farmersville Police and Fire Departments are active participants in the City’s site plan committee that reviews every new site plan submitted. In order to maintain adequate levels of fire protection safety, a City’s water system needs to have adequate water supply and pressure to meet fire flow requirements. As stipulated in the GPU, buildings over 5,000 square feet in size shall be required to have a fire sprinkler system installed. As previously discussed, the City will need to upgrade its water system with an additional well in the near future in order to meet increased demand, and pressure regulations. City staff indicated that a new well is scheduled for drilling in fiscal year 2006-07 through CDBG funding. The City of Farmersville currently has one full time firefighter that operates the only fire station in the City. The remaining fire rescue crew consists of volunteers. Fire flow pressure ratings passed the last inspections (with a grading class five). The GPU recommends that the City amend its development impact fee schedule to provide funds for the replacement of old water lines, and to provide funds for future water facilities. A new well is scheduled for drilling for 2006-07 fiscal year through CDBG funding, which will improve the water supply system to ensure that standard levels of fire flow pressure can be met. The Farmersville Police Department is staffed with 14 sworn officers and one non-sworn position. One additional position is planned for hire in January 2006. The City’s sworn police officer to population ratio is approximately 1:735, compared to a desirable ratio of 1:800. The City currently receives $100,000 per year in State funding for two police officer positions. The City should have a plan in place to continue to fund these positions with local dollars at the conclusion of the grant funding period. In 2004, Farmersville passed Measure U, a ½ cent sales tax increase, a portion of which revenues will be used to partially ensure essential government functions, including police, fire and other general fund services will continue in the future, providing a supplement to existing general fund revenues. Measure G, on the November 2005 ballot, would have imposed a 4% utility users tax for the purpose of general government services including animal control, park maintenance, and public safety. Measure G was not passed by the voters. The City should consider preparing a comprehensive plan for expanding public safety services within the City. Consistent with goals set forth by the City’s GPU, the police department implements innovative programs that promote an efficient delivery system including a volunteer program, take home car program, and K-9 unit program. The City has two volunteer teams with plans for expansion to three teams. 2.2.7 Written Determinations Planning Documents 1. The Farmersville GPU outlines comprehensive goals, objectives, and action plans related to the infrastructure of the City. As prescribed by GPU policy, new development shall be required to install water, sewer and storm drainage improvements to serve their needs. 2. The GPU recommends that the City’s water, sewer, and storm drainage development impact fees be reviewed annually, focusing on the relationship between the amount of fees being collected and the future capital needs of each system based on development trends. Any modifications to the City’s development impact fees should be in accordance with Assembly City of Farmersville MSR Page 2-27 Tulare County LAFCO MSR G1_2 Farmersville Jan06.DOC/55-7301-01 Bill 1600, which requires a clear relationship between fees and their purpose. City officials indicated that new impact fees will be in place by January 2006. 3. The Community Infrastructure Study (December 1998) serves as an interim update to the City of Farmersville Storm Drain Master Plan (1989), the City of Farmersville Sanitary Sewer Master Plan (1983), and the City of Farmersville Water System Master Plan (1993). Information contained in the study was to be incorporated into a City Infrastructure Master Plan to be considered for adoption by the City Council. The City should continue to pursue the adoption of an Infrastructure Master Plan, if not already in place. 4. City staff indicated that a 5-year capital improvement program (CIP) is being prepared, but is unsure when it will be completed. Water 1. The City’s Water System Master Plan (1993) found the City’s water supply system to have inadequate standby capacity, and inadequate firm capacity. As stated in the Community Infrastructure Study, no supply capacity improvements to the City’s water supply system have been completed since 1993. 2. Although it is likely that any development within the City’s UDB or SOI would likely rely on City infrastructure, a determination of water system adequacy to support any such developments cannot be made at this time. 3. The City should continue to work with developers, and land owners in the area who would be willing to donate land for construction of new wells to improve the City’s water supply system. 4. Improvements to the City’s water system have been significantly delayed due to limited financial resources. The City should continue to pursue and apply for community development block grants to construct necessary improvements to their water system to help support a growing population. City officials indicated that a CDBG was received to install a new well and generator. Sanitary Sewer 1. Recent improvements to the City’s sanitary sewer system improved the ability of the system to support development west of Virginia Avenue, north of Visalia Road, and north of Avenue 288 (Walnut Avenue). 2. The City’s WWTF operates under the provisions of Order No. 86-152, which prescribes a maximum 30-day average daily dry weather discharge flow of 1.25 MGD. The current ADWF into the WWTF is approximately 930,000 GPD. 3. City staff indicated that the WWTF currently has a reserve capacity of approximately 300,000 gallons per day, which could support an estimated 1,280 equivalent single family dwellings, or a population of approximately 14,720. 4. It is likely that the City’s WWTF will need to be improved to increase capacity to support growth through year 2025. The City should allocate necessary funding to program City of Farmersville MSR Page 2-28 Tulare County LAFCO MSR G1_2 Farmersville Jan06.DOC/55-7301-01 improvements to the WWTF. City staff indicated that the City in presently planning to build a new secondary treatment facility. Storm Drain 1. The City has a Master Planned storm drain system that is anticipated to meet drainage infrastructure needs to accommodate future growth. The City completed several storm drainage improvements along Linnel Avenue, Ash Street, and Petunia Street through CDBG funding. In addition, the storm drain basin along Petunia Street is being expanded. 2. As indicated in the Community Infrastructure Study, Deep Creek has significant capacity available (in the order of 20-30 cfs) to accommodate future storm runoff. The Consolidated People’s Ditch Company has no capacity in their ditches to take on additional storm runoff. 3. With the exception of existing deficiencies, it is anticipated that most future storm drainage improvements would be development driven. The City should work with developers to construct on-site drainage facilities when feasible. Streets and Roads 1. The primary limitation of the City’s transportation system is the lack of railroad crossings. Both the GPU and the Community Infrastructure Study identify the need to construct additional railroad crossings to improve the City’s transportation system. The railroad company in the area has not been sympathetic to the idea of constructing new crossings. City staff indicated that they are in the process of securing one more crossing between Road 156 and Farmersville Boulevard. 2. The GPU indicates that funds for street improvement projects would come from gas tax and transportation funds. The circulation element also recommends that the City develop a traffic impact fee for new development in Farmersville, consistent with the requirements of AB 1600. 3. The GPU recommends that the City explore the merits of establishing a dial-a-ride service for the elderly, handicapped, and others who may not have access to transportation. The City of Visalia, as of November 2004, expanded its bus system to service to Farmersville, providing needed public transportation in the City. 4. There are currently no established bike lanes in Farmersville however the City has been participating with the Tulare County Association of Governments in the preparation of a bike plan for Tulare County and its Cities. The plan designates bike routes on Visalia Road, Farmersville Boulevard, Walnut Avenue, and Avenue 296. The City’s Circulation Element requires the installation of bike lanes on specified roadways as a condition of new development. Public Safety 1. Farmersville police and fire departments are operated with revenues allocated from the City’s general fund. 2. The City of Farmersville has one full time firefighter that operates the only fire station in the City. The remaining fire rescue crew consists of volunteers. City of Farmersville MSR Page 2-29 Tulare County LAFCO MSR G1_2 Farmersville Jan06.DOC/55-7301-01 3. The Police Department is staffed with 14 sworn officers and one non-sworn position. One additional position is planned for hire in January 2006. 4. In 2004, Farmersville passed Measure U, a ½ cent sales tax increase, a portion of which revenues will be used to partially ensure essential government functions, including police, fire and other general fund services will continue in the future, providing a supplement to existing general fund revenues. 5. Measure G, on the November 2005 ballot, would have imposed a 4% utility users tax for the purpose of general government services including animal control, park maintenance, and public safety. Measure G was not passed by the voters. The City should consider preparing a comprehensive plan for expanding public safety services within the City. 6. Fire flow pressure ratings passed the last inspections (with a grading class five). A new well is scheduled for drilling for 2006-07 fiscal year through CDBG funding, which will improve the water supply system to ensure that standard levels of fire flow pressure can be met. 7. The City’s sworn police officer to population ratio is approximately 1:735, compared to a desirable ratio of 1:800. 8. The City currently receives $100,000 per year in State funding for two police officer positions. The City should have a plan in place to fund these positions with local dollars at the conclusion of the grant funding period. 9. Consistent with goals set forth by the City’s GPU, the police department implements innovative programs that promote an efficient delivery system including a volunteer program, take-home car program, and K-9 unit program. The City has two volunteer teams with plans for expansion to three teams. City of Farmersville MSR Page 2-30 Tulare County LAFCO MSR G1_2 Farmersville Jan06.DOC/55-7301-01 2.3 FINANCING OPPORTUNITIES AND CONSTRAINTS The purpose of this section is to evaluate a jurisdictions capability to finance needed improvements and services. 2.3.1 Annual Budget In recent years, it has been challenging for the City of Farmersville to reach a balanced budget. The City adopted its fiscal year 2004-05 budget on October 25, 2004. The budget was passed with the anticipation of the passage of two local measures, U and V, which would have increased City revenues. Measure U involved a ½ cent sales tax increase with independent annual audits, and Measure V involved a 4% utility user’s tax with independent annual audits. Each measure was to partially ensure essential government functions, including police, fire, and other general fund service will continue in the future, providing a supplement to existing general fund revenues. Combined, the measures were expected to generate additional annual general fund revenues of approximately $145,350. Only Measure U passed, increasing annual general fund revenues an estimated $40,000. Since only Measure U passed, the City was forced to adjust its services to balance its budget in light of revenue shortfalls. In the November 2005 election, Measure G, which would have imposed a 4% utility user tax, was unsuccessful. A summary of revenues and costs for general fund services is provided in Table 2-1 below. The table includes actual resources and expenditures for fiscal year 2003-04, and resources and expenditures adopted for the fiscal year 2004- 05 budget (prior to adjustments due to the failure of Measure V). TABLE 2-1 CITY OF FARMERSVILLE FISCAL YEAR 2004-05 BUDGET SUMMARY OF GENERAL FUND REVENUES AND EXPENSES Actual 2003-04 Fiscal Year 2004-05 Proposed Budget Support Needed Service Resources Expenditures Resources Expenditures (Resources Available) General (City Council) $878,850 $34,437 $1,294,120 $40,600 ($1,163,520) Administration $164,609 $333,886 $201,909 $303,997 $102,088 Recreation $4,786 $8,402 $0 $4,000 $4,000 Loss Control $49,223 $239 $40,000 $5,000 ($35,000) Library $3,083 $7,075 $4,000 $3,000 ($1,000) Police Department $123,081 $813,810 $78,200 $1,177,591 $1,099,391 Community Development/ $214,111 $76,028 $100,000 $71,550 ($28,450) Code Enforcement Fire Department $19,137 $101,515 $8,000 $130,396 $122,396 Public Works $249 $54,334 $0 $50,762 $50,762 Animal Control $1,098 $23,915 $420 $3,500 $3,080 Sub-Totals $1,458,227 $1,453,641 $1,726,649 $1,790,396 $63,747 Beginning GF Balance ($240,000) Ending GF Balance ($176,253) Notes: 1) Source: City of Farmersville 2004-05 Proposed Budget (Adopted October 25, 2004) 2) GF = General Fund As indicated in Table 2-1, the proposed 2004-05 general fund budget expenditures exceed the estimated general fund revenue resources by approximately $63,750. The budget gap increased to approximately $169,000 as a result of the failure of Measure V, which forced the City to adjust services to balance its budget in light of revenue shortfalls. City of Farmersville MSR Page 2-31 Tulare County LAFCO MSR G1_2 Farmersville Jan06.DOC/55-7301-01 Following the failure of Measure V, the Farmersville City Manager announced his resignation, a decision that saved the City about $70,000 annually until a new City Manager can be brought in. The Mayor of Farmersville was quoted in a Visalia Times Delta article (November 05, 2004) explaining “We’re going to have to make things work with the staff we’ve got right now, although I don’t think we can go on indefinitely without a City Manager.” Rene Miller, Farmersville’s financial director, was named the acting City Manager. In addition to the general fund, the City’s budget is set up for several other funds which are to be used for specific purposes. These funds are listed below. • Water Utility Fund • Water Development Fund • Sewer Utility Fund • Sewer Development Fund • Refuse Fund • Police Grants • Drug Enforcement Fund • Federal Grant Fund • Surface Transportation Fund • Gas Tax Fund • Transportation Fund (LTF) • Storm Drain Fund • Traffic Congestion Fund • Park Development Fund • Park Improvement Fund • Maintenance District (Landscape and Lighting) • Program Income Fund • Childcare Fund City staff indicated that a capital improvement program is being prepared, but is unsure when it will be completed. Capital improvement programs are typically updated annually, and implemented on a continuous annual basis. Some of the above listed funds allocate funding toward capital improvements. Based upon an overall general review of the funds that provide for capital improvements, the allocations alone are not sufficient to construct new infrastructure necessary to accommodate future growth within the City. There appears to be sufficient funding from user fees to maintain the existing infrastructure to the satisfaction of the service users. Based upon information contained in the City’s budget, no capital water improvements (above and beyond general maintenance and repair of existing infrastructure) were constructed during fiscal year 2003-04. Similarly, no capital sewer or storm drain improvements (excluding general operation and maintenance of existing facilities) were budgeted for during the 2004-05 fiscal year. The City has significant financial constraints making it very challenging to provide efficient and quality services to its residents while maintaining a balanced budget. The primary reason for the current fiscal instability of the City stems from the leakage of local sales tax dollars to the nearby Cities of Visalia and Exeter, and the high level of unemployment within the City. The City should attempt to reverse the leakage of sales tax dollars to surrounding communities by working to attract new retail establishments to the community, retaining existing businesses, and maintaining high standards that create an attractive business climate which is inviting to prospective new businesses. The City should seek to attract moderate-sized retail stores that sell the kinds of goods presently not found in Farmersville, including appliances, furniture, electronics, and home improvement supplies. The City and chamber of commerce City of Farmersville MSR Page 2-32 Tulare County LAFCO MSR G1_2 Farmersville Jan06.DOC/55-7301-01 should work to attract high sales tax generating dealerships including automobile, boats, trailers, and farm equipment that could be located in Farmersville. The City has opportunities to enhance tax increment revenues by encouraging development in the redevelopment district. As prescribed in the GPU, the City could consider the reduction of development impact fees, and higher residential densities in the redevelopment district in order to encourage infill development. Due to the City’s constrained financial resources, the City should continue to actively pursue State and Federal grants to expand and improve its current infrastructure and attract new businesses. Consistent with goals outlined in the City’s GPU, the redevelopment agency should, on behalf of existing companies or companies interested in locating if Farmersville, apply for State or Federal grants that assist the company with off-site improvements, purchase of land or equipment or training of employees. Revenue generated from development impact fees is allocated to specific funds, and is used for the construction of new infrastructure. Costs associated with the operation and maintenance of existing facilities is generally derived from user fees, reconnection fees, and various intergovernmental revenues for transportation facilities. As prescribed by the GPU, the City should ensure that development impact fees pay for public improvements required by the infrastructure Master Plans. The GPU recommends that a new fee schedule be prepared for Farmersville’s development impact fees to ensure that new uses pay their fair share of the costs of providing infrastructure and services, while remaining competitive with other Cities and surrounding communities. City staff indicated that new impact fees will be in place by January 2006. 2.3.2 Written Determinations 1. The City’s budget clearly describes the services provided by the City to its residents and the funds expended for those services, although in recent years, the City has struggled to reach a balanced budget. The City adopted its fiscal year 2004-05 budget on October 25, 2004. 2. The City’s budget for fiscal year 2004-05 was adopted with the anticipation of the passage of two local measures, U and V, a ½ cent sales tax increase, and a 4% utility user’s tax, respectively. Since only Measure U passed, the City was forced to adjust its services to balance its budget in light of funding constraints. In the November 2005 election, Measure G, which would have imposed a 4% utility user tax, was unsuccessful. 3. Following the November 2004 elections, the City Manager of Farmersville announced his resignation. The City has indicated that in the meantime, they will have to get by with current staff, and have no immediate plans to fill the City Manager position. Rene Miller, the finance director of the City has been named acting City Manager. 4. The City’s current financial constraints stem from the leakage of local sales tax dollars to the nearby Cities of Visalia and Exeter. The City should attempt to reverse the leakage of sales tax dollars to surrounding Cities by working to attract new retail establishments to the City, retaining existing businesses, and maintaining high standards that create an attractive business climate which is inviting to prospective new businesses. 5. The City has opportunities to enhance tax increment revenues by encouraging development in the redevelopment district. The City should consider the reduction of development impact fees, and higher residential densities in the redevelopment district in order to encourage infill development. City of Farmersville MSR Page 2-33 Tulare County LAFCO MSR G1_2 Farmersville Jan06.DOC/55-7301-01 6. The City should continue to actively pursue State and Federal grants to expand and improve its current infrastructure and attract new businesses. The redevelopment agency should, on behalf of existing companies or companies interested in locating in Farmersville, apply for State or Federal grants that assist companies with off-site improvements, purchase of land or equipment or training of employees. 7. Likely fiscal benefits to the City from development within the SOI could include modest levels of property tax collections from residential land development (upon annexation of the land), potential transient occupancy tax revenues from new recreational land uses, and sales tax revenues where retail/commercial uses are developed. Likely fiscal costs to the City would typically include public maintenance of infrastructure completed for new projects in the SOI, and the provision of public safety services. 8. Farmersville’s development impact fees should be updated to ensure that new uses pay their fair share of the costs of providing infrastructure and services, while remaining competitive with other Cities and surrounding communities. City staff indicated that new impact fees will be in place by January 2006. The City is also having a capital improvement program prepared, but is unsure when it will be completed. 9. The City recognizes the need to overcome significant financial constraints, and continues to develop strategies to enhance current revenue streams. An example would be the passage of Measure U in 2004, a ½ cent increase in local sales tax, revenue that is to be used to partially ensure essential government functions, including police, fire, and other general fund service will continue in the future. 10. The City should continue efforts to pass a utility users tax to supplement general fund revenues. Farmersville is currently only one of two City’s in Tulare County that does not have a utility user tax, the other being Visalia, which has the largest sales tax base in the County. For all other City’s in Tulare County, the utility user tax has become a stable source of revenue to fund general government services. City of Farmersville MSR Page 2-34 Tulare County LAFCO MSR G1_2 Farmersville Jan06.DOC/55-7301-01 2.4 COST AVOIDANCE OPPORTUNITIES The purpose of this section is to identify practices or opportunities that may help to eliminate unnecessary costs. 2.4.1 Budget Preparation Avoiding unnecessary costs is generally associated with the proper planning and preparation of a comprehensive budget. This is accomplished by allocating monetary resources to specific uses with a primary goal of providing and maintaining high service levels to the public it serves. 2.4.2 Purchasing Policy A comprehensive purchasing policy also helps an agency avoid unnecessary costs. A City’s purchasing policy should promote the cost effective procurement of goods and services. The policies should establish specific rules and regulations for purchasing services and capital assets for the City. A comprehensive purchasing policy addresses issues including bid requirements and procedures, contracts for goods and services, contract administration, insurance and bonds, inventory control, and cost control methods, and guidelines for retaining consultant services. 2.4.3 Other Opportunities The City can avoid unnecessary costs by implementing growth management practices, consistent with GPU policies. By promoting development in infill areas and outlying areas where infrastructure is already in place (and has excess capacity) the City would avoid unnecessary up front costs associated with extending infrastructure to outlying undeveloped areas. Through the preparation, implementation, and updating of infrastructure Master Plans, the City can avoid unnecessary costs by incrementally expanding its infrastructure to areas zoned for General Plan development. Master Plans and Specific Plans also help to ensure that duplication of services does not occur. In addition to falling short of a balanced general fund budget, many of the City’s enterprise funds also have expenditures which exceed resources. The City should explore the feasibility of outsourcing services currently provided by the City including administration, and water service. Outsourcing could help the City avoid unnecessary overhead costs. The City should also explore the feasibility of outsourcing domestic water service through a private urban water supplier such as California Water Service Company. The City could charge a franchise fee for operating within the City. The cost savings, and revenue losses associated with such actions should be comprehensively evaluated prior to any decisions being made. The City could also avoid unnecessary costs through the construction of joint use facilities, including but not limited to recreational sports fields, parks, or a museum (in cooperation with the County). Additional practices which have the potential of eliminating unnecessary costs include the formation of homeowners associations for larger scale residential developments where shared (community) facilities are present. Associations could maintain facilities such as streets, play grounds, swimming pools, parks, and gyms, thereby relieving the financial obligations of the City. Comparing the City’s budget for fiscal year 2003-04 with actual year end results indicates that revenues generated from investment earnings fell significantly short of what was anticipated. For example, the City budgeted $17,000 in revenue generated from investment earnings on the general fund, and, at year end, had only generated $571 from general fund investment earnings. The water utility fund was budgeted for $3,000 in investment earnings, and only earned $68; the water development fund was City of Farmersville MSR Page 2-35 Tulare County LAFCO MSR G1_2 Farmersville Jan06.DOC/55-7301-01 budgeted for $3,100 in investment earnings, and only earned $49. Other funds experienced similar shortfalls in investment earnings. The City should review its investment practices to avoid unnecessary costs associated with losses (or shortfalls) on investment earnings. 2.4.4 Written Determinations 1. Master planned infrastructure helps the City in avoiding unnecessary costs through effective planning and implementation policies, and help eliminate overlapping and/or duplicative services. 2. The City can avoid unnecessary up front costs of extending infrastructure to undeveloped areas by promoting effective growth management practices. The City should first promote development within infill areas, and areas where infrastructure is already in place. 3. The City has opportunities to avoid unnecessary costs through the construction of joint use projects including recreational facilities, parks, or a museum (in coordination with Tulare County). 4. The City could avoid unnecessary costs associated with maintaining infrastructure through the formation of homeowners associations within residential developments for larger scale residential developments or condominiums where shared (community) facilities such as playgrounds, parks, gyms, or swimming pools are present. 5. The City should review its investment practices to avoid unnecessary costs associated with losses (or shortfalls) on investment earnings. The City’s investment policy only allows for Local Agency Investment Fund (LAIF) or Treasury Bills (T-Bills) investments. City of Farmersville MSR Page 2-36 Tulare County LAFCO MSR G1_2 Farmersville Jan06.DOC/55-7301-01 2.5 OPPORTUNITIES FOR RATE RESTRUCTURING The purpose of this section is to identify opportunities to positively impact rates without decreasing service levels. 2.5.1 Fee Structure The City has in-place development impact fees, connection fees, reconnection fees, and monthly user fees which are utilized to expand and maintain the City’s infrastructure systems. After several requests, the City has not provided their adopted development impact fee schedule, or user fee schedule, making it difficult to compare and evaluate the current rate structure for the City. Utility user fees should be reviewed annually to ensure that rates are keeping pace with inflation, construction costs, and cost of living indexes. As indicated in the City’s fiscal year 2004-05 budget, excluding beginning working capital, the financial resources of the water utility, and sewer utility funds are outweighed by the operating and maintenance expenses for each of the respective utilities. Based upon information contained in the Wastewater User Charge Survey Report FY 2004-05 (CalEPA – State Water Resources Control Board), Farmersville residents pay a monthly rate of $21.25 for sewer service. The City also has a fee of $550 for new connections. Table 2-2 shows a comparison of the sewer rates (and connection fees) charged by each City within Tulare County. The table also shows the average household income within each City as reported by the Census 2000. TABLE 2-2 SEWER RATE COMPARISON City Monthly Sewer Rate Connection Fee Avg. Household Income Rate/Income Ratio Dinuba $16.12 $3,500 $2,779/mo. 0.58% Exeter $16.00 $1,900 $2,812/mo. 0.57% Farmersville $21.25 $550 $2,307/mo. 0.92% Lindsay $27.11 $700 $2,025/mo. 1.34% Porterville $25.39 $3,375 $2,670/mo. 0.95% Tulare $22.19 $342 $2,803/mo. 0.79% Visalia $13.81 $2,325 $3,446/mo. 0.40% Woodlake $13.00 $960 $1,971/mo. 0.66% Average $19.36 $1,707 $2,602 0.78% Notes: 1) Source: Wastewater User Charge Survey Report F.Y. 2004-05 (CalEPA – SWRCB) 2) Average household incomes based upon Census 2000 data 3) Rate/Income Ratio calculated by dividing monthly rate by Avg. Household Income As indicated in Table 2-2, the City of Farmersville charges a slightly higher than average monthly rate for sewer service in comparison to the other Cities within Tulare County. Farmersville’s fee for a new connection to the system is among the lowest of surrounding Cities. On average, the cost of sanitary sewer service within Farmersville equates to approximately 0.92% of the average household income within the community. City of Farmersville MSR Page 2-37 Tulare County LAFCO MSR G1_2 Farmersville Jan06.DOC/55-7301-01 2.5.2 General Plan The City’s general plan establishes several goals and policies with regard to the City’s financial structure. Some of the goals and policies relating to the financial structure of the City, as prescribed by the general plan are identified below. • The City’s water, sewer and storm drainage development impact fees shall be reviewed on an annual basis. The review should focus on the relationship between the amount of fees being collected for each of the accounts and the future capital needs of each system based on development trends in Farmersville. • The City should work with the private sector to participate in the upgrading of the infrastructure system when it is developing in the City. The City may wish to work with developers to upgrade a part of the infrastructure or street system that is not part of the project being developed. • The Farmersville Redevelopment Agency should develop an Existing Company Expansion Program where funds would be provided by the Agency to a company if they hired additional employees. The Redevelopment Agency could use redevelopment or CDBG funds to finance an Existing Company Expansion Program. • The City should explore the creation of a downtown maintenance district to pay for the cost of maintaining improvements in the downtown, such as landscaping, street furniture, parking lots and lighting. • The City should consider the reduction of development impact fees in the redevelopment district in order to encourage infill development. • A new fee schedule shall be developed for Farmersville’s development impact fees. • The fees for Farmersville’s planning, subdivision and zoning applications should be reviewed and amended every two years, as necessary. The fees should be developed consistent with Assembly Bill 1600, which requires a clear demonstration between the need for fees and their use. The City’s GPU provides an excellent planning tool, and establishes effective goals and policies with regard to the financial structure of the City. The City should work to implement goals and policies outlined in the GPU. 2.5.3 GASB 34 GASB 34 requires local governments with long lived capital assets to report the value of their infrastructure assets. Infrastructure reporting is required in order to determine whether current-year revenues were sufficient to cover the cost of current-year services; assess the service efforts and costs of programs; determine whether the government’s financial position improved or deteriorated as a result of the year’s operations; assess the government’s financial position and condition; and to assess the service potential of physical resources having useful lives that extend beyond the current period. The implementation of infrastructure reporting is divided into three phases based on a government’s annual revenue. For governments having total annual revenues of less than $10 million, initial City of Farmersville MSR Page 2-38 Tulare County LAFCO MSR G1_2 Farmersville Jan06.DOC/55-7301-01 prospective reporting was required to be completed by the end of fiscal year 2003, and retroactive reporting is optional, and is required to be completed by fiscal year 2007. Prospective reporting includes all assets acquired, renovated, restored or improved after 6/15/1999. Retroactive reporting includes all assets acquired, renovated, restored or improved after 6/30/1980. Infrastructure reporting is required to be updated annually. The City of Farmersville should work to comply with the requirements of GASB 34 to improve the financial reporting of the City. 2.5.4 Written Determinations 1. The City has in-place development impact fees, connection fees, reconnection fees, and monthly user fees which are utilized to expand and maintain the City’s infrastructure systems. 2. City staff indicated that new impact fees will be in place by January 2006. The City is also preparing a capital improvement program, but is not sure when it will be completed. Capital improvement programs prioritize capital infrastructure needs in line with development demands, and within available funding. 3. The City should annually review utility user fees to ensure that rates are keeping pace with inflation, construction costs, and cost of living indexes. Utility user fees are to be used for operation and maintenance of existing facilities, and not for the construction of new infrastructure. 4. Monthly rates for sanitary sewer service in Farmersville are slightly above average compared to other Cities in Tulare County, while the City’s fee for a new sanitary sewer connection is among the lowest. 5. The City of Farmersville should work to implement goals and policies outlined in the general plan, as it establishes effective goals and policies with regard to the City’s financial structure. 6. The City of Farmersville should work to comply with the requirements of GASB 34 to improve the financial reporting of the City. City of Farmersville MSR Page 2-39 Tulare County LAFCO MSR G1_2 Farmersville Jan06.DOC/55-7301-01 2.6 OPPORTUNITIES FOR SHARED FACILITIES AND RESOURCES The purpose of this section is to evaluate opportunities for a jurisdiction to share facilities and resources, thereby increasing efficiency. 2.6.1 Current Shared Facilities The City of Farmersville has provided limited information with respect to current facilities sharing activities. Based upon information compiled for the Visalia Municipal Service Review, the Visalia City Coach system was expanded to serve the City of Farmersville. Prior to voting to expand the Visalia City Coach system to service the City, Farmersville was the only City in the County without some sort of public transportation. The City also has mutual aid agreements with surrounding jurisdictions to provide fire and emergency support services. City officials indicated that the City’s public safety force responds to areas outside of the City more often than others respond to the City for assistance. City officials also indicated that Farmersville Fire responds out into the County to assist on an almost 2 to 1 basis. 2.6.2 Future Opportunities With the State budget crisis impacting both Counties and Cities, the need for intergovernmental cooperation is becoming apparent, as every agency is facing an unprecedented assault on local resources. For this reason, it is important for City’(s) and the County to meet this challenge on common ground. To maintain acceptable levels of public safety services, the City should work with the County to establish volunteer programs, and continue to improve the mutual aid response arrangements with County Law Enforcement and Fire Divisions. Other future opportunities for shared facilities include the coordination and construction of recreational facilities including parks, hiking/bike trails, scenic trails, etc., particularly west of the current City limits. The area separating the Cities of Visalia and Farmersville could be considered ideal for the construction of joint recreational facilities, as there are several waterways which enhance the recreational appeal of the area. Planning this area for future recreational facilities could be accomplished as a joint effort between the City of Visalia, the City of Farmersville, and Tulare County. Recreational improvements within this area would not only enhance the overall aesthetics, but would also establish an open boundary, or greenbelt, between the Cities of Visalia and Farmersville. The recreational aspects of trail connections offer opportunities for Cities and Counties to join recreational resources not only to the benefit of the Cities residents’, but for the general public of the County as well. The City’s general plan establishes several goals and policies that promote intergovernmental and agency coordination to effectively enhance the community’s image as a whole. Some of these goals and policies, as prescribed by the general plan are outlined below. • The City should establish partnerships with local organizations such as the Boy Scouts, C- SET, and other youth organizations to assist with community “clean up” efforts. • The City should contact the Urban Tree Foundation to seek their assistance in the development of a tree planting program in the downtown and on major streets, such as Farmersville Boulevard and Visalia Road. City of Farmersville MSR Page 2-40 Tulare County LAFCO MSR G1_2 Farmersville Jan06.DOC/55-7301-01 • The City should convene an annual study session with the Farmersville Unified School District (F.U.S.D.) to discuss planning matters that are of mutual interest. Schools should be designed to accommodate some of the City’s recreational needs such as playing fields, hard courts and running tracks. • The City should meet with officials from Visalia and Exeter to explore the concept of forming a greenbelt to keep the Cities from growing together. • The City should work with a farmland conservation organization such as American Farmland Trust, to establish agricultural conservation easements on lands that surround Farmersville. • The City should consider hiring an economic development specialist/grant writer, to pursue industry leads and grant funds. The City may wish to consider sharing this position with other neighboring communities, in order to reduce expenses. The City’s general plan also addresses special issues with regard to the Linnel Farm Labor Center, and the Cameron Creek Colony which are unique to Farmersville. The Linnel Farm Labor Center is a farm labor housing development operated by the Tulare County Housing Authority on land west of Farmersville. Development in Farmersville is continuing to expand towards Linnel, with recent developments located approximately ¼ mile east of Linnel. Linnel has its own wastewater treatment plant, situated on fourteen acres on the east side of the site. Farmersville is down-wind from Linnel and on occasion, odors from the plant are noticeable in the community. The presence of Linnel (in particular the WWTF) could negatively affect Farmersville’s future growth in this area. The City should explore the possibility of closing Linnel’s WWTF, and connecting into Farmersville’s WWTF. The City and County should work together to identify funding to extend lines from Farmersville’s sewer system to serve Linnel, and expand Farmersville’s WWTF. Cameron Creek Colony is a rural residential subdivision situated northeast of Farmersville, on the east side of Farmersville Boulevard, midway between Walnut Avenue and SR 198. Many of the dwellings are poorly maintained and appear to be substandard in terms of building and zoning codes. All of the dwellings are hooked to individual on-site septic systems and water wells. Roads are poorly maintained and were constructed without curbs, gutters, sidewalks or street lights, and without storm drainage facilities. Although presently under the jurisdiction of Tulare County, the Cameron Creek Colony is ultimately in Farmersville’s future growth area. As prescribed by the general plan, the City should work with Tulare County to establish a redevelopment district to generate funding to bring public and private development up to code in Cameron Creek, including streets, utilities, and dwellings. In addition, the City and County should negotiate a special tax-sharing agreement that places the City in a better position to assume public services requirements for Cameron Creek. 2.6.3 Written Determinations 1. Based upon previous research, the City of Visalia voted to expand its public transportation to service Farmersville. 2. Farmersville also has mutual aid agreements with surrounding jurisdictions to provide fire and emergency support services. City officials indicated that the City’s public safety force responds to areas outside of the City more often than others respond to the City for assistance, and that Farmersville Fire responds out into the County to assist on an almost 2 to 1 basis. City of Farmersville MSR Page 2-41 Tulare County LAFCO MSR G1_2 Farmersville Jan06.DOC/55-7301-01 3. The City’s general plan prescribes several opportunities for the City to share facilities and resources in the future. 4. As prescribed by the Farmersville General Plan, the City has opportunities to work with the Cities of Visalia and Exeter, and Tulare County to establish greenbelts to prevent the Cities from physically growing together. This would also help to preserve prime agricultural land within the County. 5. The City should work with Tulare County to resolve mutual planning issues associated with the Linnel Farm Labor Center, and the Cameron Creek Colony. The Linnel Farm Labor Center, the Cameron Creek Colony, and the City could potentially share a single wastewater treatment facility. 6. The City should continue to look for opportunities to work with surrounding jurisdictions and agency’s, and cooperatively address mutual planning issues. City of Farmersville MSR Page 2-42 Tulare County LAFCO MSR G1_2 Farmersville Jan06.DOC/55-7301-01 2.7 GOVERNMENT STRUCTURE OPTIONS The purpose of this section is to consider the advantages and disadvantages of various government structures to provide public services. 2.7.1 Development within SOI Areas One of the most critical elements of LAFCO’s responsibilities is in setting logical service boundaries for communities based on their capability to provide services to affected lands. Similar levels of public participation can be expected for either City or County development projects in the planning and development process for the SOI territories. It is possible that development in the SOI areas that occurs under County control may not fully resolve impacts to the City, such as increased traffic on City streets, and new groundwater wells to support County development impacting Farmersville groundwater aquifers and other analogous assumptions. It can also be assumed that the reverse is true; that development controlled only by the City may leave impacts in the County unresolved in whole or in part. The challenge of this planning effort is to coordinate shared infrastructure and improvements so as to mitigate impacts on either side of the City/County limit boundary. Since the development of the SOI territories generally relies on master planned infrastructure available from the City, it is logical that the City assume the lead in planning for SOI properties. If the City were to be the lead planning agency for properties within the SOI, LAFCO could require the City to bring coordinated plans for infrastructure forward to LAFCO at the time specific annexations requests are submitted. This would provide a checks and balance system for incorporating new lands within the City, and would render the remaining County lands a part of an integrated whole. The City of Farmersville currently has logical service boundaries in place including an urban development boundary, a sphere of influence, and an urban area boundary, to help guide development in Farmersville. There are no County islands, or areas in which there is a potential for duplication of services. It would be logical for the City of Farmersville to ultimately assume service provisions within the Linnel Farm Labor Center, and the Cameron Creek Colony, both of which are currently under the jurisdiction of the County. The City’s ability to effectively provide services to SOI areas appear to be limited primarily by financial resources. For this reason, it is likely that developers would be responsible for constructing the infrastructure to accommodate their development. Requiring the preparation of Specific Plans for development within the City’s SOI could help identify funding mechanisms, infrastructure needs, and planning area boundaries to better meet the needs of the public. The City should evaluate the cost- benefits of restructuring overhead, including staff, capital outlays, allocation of reserves or savings, loaded administrative charges for grant administration, accounting, and other contracted services. City officials have indicated that the financial picture has and continues to change. Additional growth would also aid in expansion of services through impact fee revenues, and additional sales tax revenue. 2.7.2 Boundary Conflicts There are no foreseeable boundary conflicts with surrounding Cities or special districts that would affect the current governmental structure of Farmersville. City of Farmersville MSR Page 2-43 Tulare County LAFCO MSR G1_2 Farmersville Jan06.DOC/55-7301-01 2.7.3 Written Determinations 1. Since development of properties within the SOI generally relies on Master Planned infrastructure available from the City, it is logical for the City to assume the lead in planning for these sites. 2. Coordinated infrastructure plans, for development within the SOI area, submitted with specific annexation requests would create a checks and balance system for incorporating lands into the City while promoting improvements to impacted adjacent County land. 3. The City’s ability to effectively provide services to SOI areas appear to be limited primarily by financial resources. For this reason, it is likely that developers would be responsible for construction the infrastructure to accommodate such development. Requiring the preparation of Specific Plans for development within the City’s SOI could help identify funding mechanisms, and infrastructure needs to better serve such development. 4. City officials have indicated that the financial picture has and continues to change. Additional growth would also aid in expansion of services through impact fee revenues, and additional sales tax revenue. 5. There are no foreseeable boundary conflicts with surrounding Cities or special districts that would affect the current governmental structure of Farmersville. City of Farmersville MSR Page 2-44 Tulare County LAFCO MSR G1_2 Farmersville Jan06.DOC/55-7301-01 2.8 EVALUATION OF MANAGEMENT EFFICIENCIES The purpose of this section is to consider the management structure of the jurisdiction. 2.8.1 Government Structure The City of Farmersville operates under the council-manager form of government. The City council appoints a City Manager that is trained and experienced in municipal operations. The Farmersville City Manager resigned on November 3, 2004 due to the City’s financial hardships. Rene Miller, Farmersville’s finance director, was named acting City Manager. Police Chief Mario Krstic will assist Miller. The City has no immediate plans to fill the City Manager position. The City Manager, as chief executive officer of the City, is responsible for various functions assigned by the City Council. These include overseeing the implementation and administration of Council policy, supervising the activities of all departments, enforcing City ordinances, preparing the operating and capital improvement budgets, and other such duties and responsibilities as may be assigned by City Council. The City Manager’s office has the responsibility to ensure the needs and concerns of the community and the City organization are properly addressed to assure Farmersville is a good place to live and conduct business. To accomplish this, the senior staff of the City Manager’s office is involved in community, County, regional, and State issues, as well as supporting and guiding the City organization. 2.8.2 Written Determinations 1. The City of Farmersville operates under the council-manager form of government. The Farmersville City Manager resigned on November 3, 2004 due to the City’s financial hardships. Rene Miller, Farmersville’s finance director, was named acting City Manager. The City has no immediate plans to fill the City Manager position. 2. It is likely that the City’s management efficiencies would improve through increased City revenue streams. Increased revenue streams could be accomplished through promoting economic development in the City, and continuing to apply for State and Federal grant/loan money that can be used for government operations. City of Farmersville MSR Page 2-45 Tulare County LAFCO MSR G1_2 Farmersville Jan06.DOC/55-7301-01 2.9 LOCAL ACCOUNTABILITY AND GOVERNANCE The purpose of this section is to evaluate the accessibility and levels of public participation associated with the agency’s decision-making processes. 2.9.1 Public Access and Information Methods The governing body of Farmersville is the City Council, which is elected in compliance with California Election Laws. Current members of the Farmersville City Council and their terms of office are identified below. • Paul Boyer (12/1/04 – 12/3/08) • Don Rowlett (12/1/04 – 12/3/08) • Leonel Benavides (12/6/02 – 12/3/06) • Mike Santana (12/6/02 – 12/3/06) • Myron Wiley (12/6/04 – 12/3/06) The City complies with the Brown Act, which requires meetings of public bodies to be “open and public”. Regular City Council meetings are held on the second and fourth Monday of each month at 7:00 p.m. in City Hall Council Chambers located at 909 W. Visalia Road Farmersville, CA. Farmersville is the only City within Tulare County that does not have an established website. The development of a website could help the City attract new businesses, enhance public access to information, and improve community involvement in City activities. City officials have indicated that there are plans to implement a website in the near future. The City could also get a better understanding of the needs of the community by conducting an annual (or bi-annual) public opinion survey, which would help identify services which need improvement, and those with which the public is satisfied. The preparation of a regular newsletter would also help keep the community informed on the current events of the City. 2.9.2 Written Determinations 1. The City complies with the Brown Act, holding regular City Council meetings on the second and fourth Monday of each month at 7:00 p.m. in City Hall Council Chambers. 2. Farmersville is the only City within Tulare County that does not have an established website. The development of a website could help the City attract new businesses, enhance public access to information, and improve community involvement in City activities. City officials have indicated that there are plans to implement a website in the near future. 3. The preparation and distribution of a regular newsletter would also help keep members of the community informed on the current events of the City. 4. The City could gain a better understanding of the needs of the community by conducting an annual (or bi-annual) public opinion survey. City of Farmersville MSR Page 2-46 Tulare County LAFCO MSR G1_2 Farmersville Jan06.DOC/55-7301-01