15 - Laserfiche WebLink

5. GENERAL FUND REVENUES This chapter describes the methodology and assumptions used for revenue projections in this analysis. Table 10 summarizes annual General Fund revenues at buildout. Several General Fund revenue items are not forecasted because they are not expected to be affected by new growth or are cost recovery and are therefore reflected in offsetting cost reductions, as further described below. Property Tax Property tax in California is based on 1.0 percent of assessed value and will be collected from new development in Pleasanton. The property tax revenue portion accruing to the City's General Fund is 24.6 percent of the 1.0 percent based on the City's property tax capture.6 The remaining property tax goes to other taxing entities, including the State, schools, BART, and Alameda County. The property tax proceeds are shown in Table 11. The City's total assessed value growth will also be subject to much more complex range of internal and external variables. For example, future values could be driven by the quality of life factors, such as the level of service provided by the City as well as broader socioeconomic factors that affect property value growth. In addition, the relative fiscal benefit from nonresidential development will depend on market demand and the degree to which tenants seek new developed space in the City. Property Tax In Lieu of VLF In 2004, the State of California adjusted the method for sharing VLF with local jurisdictions. While the actual amount of VLF decreased for each jurisdiction, the State backfilled those losses by sharing more of the property taxes than previously. The property tax backfill was based on the lost revenues in the initial year and since then has been adjusted based on the proportionate increase in assessed values each year. The Project will add an additional 22 percent to the current assessed value in Pleasanton (assuming no other assessed value growth) and will generate the same increased percentage in in-lieu VLF revenues (see Table 11). Document Transfer Tax Document transfer tax (also known as property transfer tax) is collected by the City when the ownership of residential and commercial property changes. The City's General Fund receives $0.55 of every $1,000 in value sold. This analysis assumes that for-sale residential uses change ownership more frequently than residential rental and commercial uses. This approach results in the property transfer tax estimate of $124,000 a year, as shown in Table 12. Property transfer tax proceeds vary year-to-year based on the sales volume. 6 The City collects special taxes in addition to the 1.0 percent of value; these taxes are excluded from this analysis as they typically apply to specific uses and do not impact the General Fund. Economic&Planning Systems, Inc. 25 P:\121000\121062Pleasanton\Report\121062RePort_FINAL.doc