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commercial types of uses oecause mere are employees aria services pruvwea mule, SLUM OS medical assistance or meal plans. Similarly, with extended stay hotels, staff has not counted rooms at those hotels toward the housing cap because those are considered temporary residences for individuals who are not trying to establish permanent residency. Rather, persons are there on a temporary assignment, usually business-related. Overall, if the Initiative's definition of housing cap were interpreted to apply to either assisted living units or extended stay hotel rooms, this would have an impact on the City's housing cap by decreasing the total number of units available under the housing cap. As the report indicates, as of January 2007 there were 26,245 units existing or approved under the City's 29,000 unit housing cap. If in the future additional units are counted, based on the application of the Initiative, such as assisted living units, or extended stay hotel rooms, this would decrease the number of units available under the housing cap, and that would have fiscal impacts on the City. Economic Development Fiscal Officer Emily Wagner stated that the Initiative had two elements to it and, therefore, staff analyzed each one of those separately--the hillside development restrictions and the definition of a housing unit. Staff analyzed the fiscal impact on the City's General Fund, the annual net operating revenues, as well as one-time infrastructure fees paid at the building permit stage which fund the City's capital improvement program. Staff also analyzed the impact on other public agencies. Staff did not look at the impact on those agencies' operating budgets but instead only on the one-time infrastructure fees which are paid at the building permit stage. She noted that the estimates were based on the best available information. If hillside development is limited, it shifts somewhere between 119-224 homes from the hillside area to the valley floor, or the infill areas that Ms. Seto referenced. Such a shift causes the annual net income to the general fund to be impacted somewhere between a minimum of $69,000 a year to $183,000 a year. A hillside home (a single unit) which is approximately 8,500 square feet with a market value at $3.4 million generates total revenues of about $10,000 per year and expenditures of around $9,000 per year. This results in net revenues to the City's General Fund of about $1,000 annually. These revenues are property taxes and sales taxes, and the expenditures are for fire, police, park, and street maintenance. When comparing those homes to single family homes where the average is 3,500 square feet with a market value at $1.2 million, the total revenues are about $5,000 per year and expenditures are around $4,500 per year, which results in net revenues to the City General Fund of about $500 a year. For a multi-family home (or apartment), which is about 900 square feet, with a market value at $225,000, total revenues are about $1,000 per year, and expenditures are around $750 per year, resulting in net revenues to the City General Fund of about $250 per unit. So if 119-224 Special Meting Minutes 3 June 26, 2008