11 ATTACHMENTS 08-11 - Laserfiche WebLink

Draft Memorandum July 25, 2013 EPSP Fiscal Impact Analysis Page 2 Key Findings The key findings from this fiscal impact analysis are described below and summarized in Table S-1. 1. Development of EPSP is likely to have no adverse fiscal impact on the City's General Fund at buildout. This analysis estimates that new growth will result in benefit on the City with net new annual revenue ranging between $387,000 and $1.4 million (see Table S-1). Property tax will comprise the largest revenue to the City, while public safety will result in the most significant cost to the General Fund. 2. Fiscal impact ranges between options based on their size and development composition. Option 6 results in the highest fiscal benefit to the City, while option 2 results in the lowest fiscal impact. While Option 6 appears to be the most feasible due to the larger number of residential uses and high development value, Option 1 has the lowest development value. The larger differences between the options are likely to depend on the relative fiscal performance of specific product types, ability to leverage existing services, and special tax capacity that could shift the cost burden from the City's General Fund. Development program for each option is shown in Table 1. 3. Fiscal results (annual surpluses or deficits) are simply indicators of fiscal performance; they do not mean that the City will accordingly have surplus revenues or deficits because it must have a balanced budget each year. While the results of the fiscal impact analysis are preliminary, persistent shortfalls shown in a fiscal impact analysis may indicate the need to reduce service levels or obtain additional revenues; persistent surpluses will provide the City with resources to improve overall service levels or reduce liabilities, or to address deferred maintenance. Table S-1 — Annual General Fund Impact Summary kern Option 1 Option 4 Option 5 Option 6 Revenues $3,756,844 $3,986,327 $4,088,725 $5,488,346 Expenditures $2,832,722 $3,599,265 $3,137,148 $4,085,968 Net Fiscal Impact $924,122 $387,062 $951,577 $1,402,378 Sources:City of Pleasanton and Economic&Planning Systems, Inc. Methodological Overview EPS developed a fiscal impact model designed to test how EPSP affects General Fund costs and revenues at buildout. While State and Federal funding sources are considered indirectly, the analysis is focused primarily on the City's General Fund expenditure and revenue items that (1) represent a substantive component of the overall budget and (2) are likely to be affected by the General Plan policies and growth trends. Thus, General Fund costs and revenues that are relatively small or are operated on a cost-recovery basis are excluded from the analysis. P:1121000\1 d109OEastPleasanton\Repo,tInscal\12109ofsca!mml.docx