Building environmentally-sustainable neighborhoods, opportunities for new retail and commercial projects,and attracting higher-paying jobs, will increase needed revenue sources required to maintain stabilty of City's General Fund Budget and expand public services for residents.
Salinas is the largest city in Monterey County, one of the largest and most productive agricultural centers in the world. However, Salinas is a city with significantly low revenue (especially in comparison with the Monterey peninsula cities) due to the fact that one-third of General Fund revenue is derived primarily from sales tax, and one-third from property tax. In the 2008 + 2009 fiscal year, the General Fund will be significantly impacted by the national financial crises and recession-- sales tax revenue for the first quarter of 2008 was down 6.5%, and we are anticipating a 1.9 million dollar reduction in property tax revenue from both the continued decline in housing prices and the reduced assessed value which has declined 5.1%.
Given these factors, city leaders need to find new sources of revenue, and budget reductions, in order to provide for the increasing demand for quality community services. With the City's high dependency on retail sales tax, expanded and new retail opportunities and higher-paying job creation will be a crucial component for developing new revenue sources.
Our "future growth area" has the greatest potential of providing Salinas with desperately needed new revenue. Located north of Boronda Road, this area, designated for development, will be a model of environmentally sensitive neighborhood design, and will provide significant land availability for business and commercial development. Based on the New Urbanist (international urban planning movement which reforms the design of neighborhoods so as to raise the quality of life and standard of living by building better places to live) policies formalized in the 2002 General Plan Update, we have a unique opportunity to attract visionary architects, builders and developers who will create walkable, mixed-use, neighborhood-friendly design within walking distance to shops, schools, entertainment, and civic facilities. A new library and new schools will be built in this growth area, along with new retail business, industry, and commercial opportunities.
This newly annexed growth area will provide both needed housing and job opportunities, AND direct growth away from valuable agricultural land, discourage sprawl, preserve open space, and extend public services to the north-east areas of Salinas.
|