City of Lincoln Planning MIFC Process Overview

Study Background

The City of Lincoln has been studying the issue of public infrastructure financing for several years. The money spent by the City on public infrastructure improvements - namely arterial streets, water transmission mains, sewage treatment plants, major stormwater facilities, and other such large-scale urban services - runs into the tens of millions of dollars each year. Funds for the maintenance of existing facilities and construction of new improvements have traditionally come from local utility ratepayers and taxpayers.

In recent years, a number of City-sponsored committees have worked diligently on this issue in order to try and find the best solution to a very complex and controversial problem. The most recently completed work was done by a citizen committee set up as part of the Infrastructure Financing Study (IFS). One outcome of that Study was the proposed "Impact Fee Ordinance" presently before the Lincoln City Council for their review and action.

Partly as an outgrowth of the public dialogue that has taken place during the formulation of the Impact Fee Ordinance, there has been an expanded interest to take a further in-depth look at how the City goes about financing public infrastructure. This process has been deemed an important extension of the Infrastructure Financing Study.

While the result of IFS was primarily the impact fee proposal, this newest effort will examine how additional funding and financing opportunities could enable implementation of the current City-County Comprehensive Plan. This Comprehensive Plan - adopted in May of 2002 reflects an ambitious expansion of the Lincoln urban area over the next 25 years and more. This expansion can only occur if the public infrastructure necessary to support this level of urbanization is put in place. This will require predictable long term funding mechanisms allowing for the planning and building of such public improvements - while at the same time keeping infrastructure in the existing areas of the City in good repair and constructing projects of broad community benefit.

Mayor's Infrastructure Finance Committee

To tackle this public infrastructure financing problem head-on, Lincoln Mayor Don Wesely appointed a 13 member citizen committee in October of 2002. This Committee was given the charge by Mayor Wesely to "seek a consensus on a realistic comprehensive financial package ensuring the maintenance of existing public infrastructure and the delivery of future public infrastructure to facilitate community growth." The Committee has been asked to complete their work by no later than June 1, 2003.

The Mayor's Infrastructure Finance Committee is headed by a group of three Chairpersons Brad Korell, Russ Bayer, and Jan Gauger. The balance of the Committee includes Carol Brown, Jon Carlson, Linda Crump, Jerry Schleich, Bob Hampton, Dan Marvin, Richard Meginnis, Terry Werner, Otis Young, and Larry Zink. Also serving as an ex-officio member of the Committee is Allan Abbott, the City's Director of Public Works and Utilities. The members of the Committee were selected from over 75 names submitted by various local business, neighborhood, and community organizations. The members were chosen to instill a balance of community-wide interests, concerns, and needs in the process.

Work Groups

The scope of the Infrastructure Finance Committee's effort is substantial. The issues they are being asked to resolve are broad and contentious. To accomplish the task within the prescribed time frame, the Committee has divided itself into three "Work Groups" addressing the following issue areas:

Cost Savings and Efficiency Work Group

The role of this work group is to consider ways to make certain that City infrastructure is planned, programmed, and constructed in the most reasonable efficient manner possible.

Finance Work Group

The role of this work group is to formulate a comprehensive financial program for closing the City's long term funding gap for urban infrastructure maintenance and improvements.

Legislation Work Group

The role of this work group is to consider and recommend possible changes in current State legislation to facilitate and enhance the funding of infrastructure for the City of Lincoln.

Wanting to ensure the broadest possible level of participation, the Committee agreed to add community representatives to each of the Work Groups. In all, there are a total of 47 individuals including the 13 main Committee members serving on the three Work Groups. Participating on the Work Groups are the following members (Infrastructure Finance Committee members are noted in bold type):

Cost Savings/Efficiency	Finance	Legislation
Russ Bayer, Chair Carol Brown Jon Carlson Jerry Schleich Jennifer Brinkman Mark Brohman Brian Carstens Mark Hunzeker Roger Reynolds Duane Eitel Rick Krueger Greg MacLean Melinda Pearson Duane Hartman Greg Wood Patte Newman	Brad Korell, Chair Bob Hampton Dan Marvin Richard Meginnis Terry Werner Otis Young Larry Zink Kent Seacrest Roger Severin Polly McMullen Tim Thietje Ron Ecklund Mark Hesser Keith Brown Tom Schleich Connie Jensen Lowell Berg Jim Budde	Jan Gauger, Chair Linda Crump Bruce Bohrer Darlene Starman Bill Austin Alan Hersch Steve Larrick Ken Winston Bruce Kevil Brian Krannawitter Beatty Brasch Bob Peterson Chris Beutler

Charge to the Committee and Work Groups

To lend direction to the work of the Committee and Work Groups, the Mayor provided them with a Charge Statement outlining their roles and tasks. This document describes the mission of each group and the major work objectives they are expected to complete. Included in this charge statement are five "Key Working Assumptions" that form the fundamental boundaries within which the Committee and Work Groups are expected to operate:

1. The City-County Comprehensive Plan shall serve as the Committee's framework for the assumed future rate of population growth, the direction of growth, and the phasing of growth.

2. The Committee shall seek a balanced funding approach affirming the maintenance of existing infrastructure, supporting projects of broad community benefit, and providing for the timely expansion of planned infrastructure. Ensuring the timely and adequate funding for each of the three elements is vital and should be reflected in the Committee's findings. In meeting these goals, maintenance of existing facilities should be given primary consideration, followed by projects of broad community benefit (e.g., South and East Beltways, Antelope Valley), and finally, infrastructure improvements that further planned urban growth.

3. The Committee shall limit its review of public infrastructure to streets and highways, water, wastewater, storm water, and park facilities.

4. The Committee shall set time horizons for a financial package covering the next 6 years and a longer range strategy as appropriate.

5. The Committee shall assume future financial contributions from impact fees consistent with the Mayor's August 26, 2002, proposal, as amended.

Process and Meeting Protocol

During their first meeting on October 10, 2002, the Mayor's Infrastructure Finance Committee felt it was important that they set forth in writing a set of procedures for handling meetings, communications between groups, member attendance, community involvement, decision making, and media contacts. A "Meeting Protocol" document was developed and subsequently adopted by the Committee. These protocols will serve as the basic ground rules for the Committee and the three Work Groups for the duration of their work.

Infrastructure Finance