15 ATTACHMENT - Laserfiche WebLink

The Financing Plan includes $11.25 million of funds attributable to an increase in developer fees for public facilities over the seventeen years of the Financing Plan. It is important to point out that the fees are subject to development and therefore, are not predictable to any degree of certainty. The Financing Plan includes the most prudent assumptions regarding the receipt of these revenues. Appendix B, Table 3 presents the Financing Plan with the City's existing revenue stream plus funds from donations and an increase in development fees. Based on this funding level over the seventeen year period of the Financing Plan, the following Program projects (or portions of) will be completed: ^ Bernal Community Park Phases I, II, III and IV • A portion of the Open Space area (approximately $15.0 million of the estimated $30.0 million project). Increase in Transient Occupancy Tax When a jurisdiction looks at existing revenues and they are not adequate to support the development of a capital improvement program on apay-as-you-go basis or cash basis, an alternative available to the jurisdiction is to implement new fees or increase existing taxes. One vehicle that has been used by several jurisdictions for the financing of capital facilities that are utilized by both the existing population and visitors to the community is an increase in their transient occupancy tax (the "TOT"). Currently the City imposes a TOT of 8% on hotel room rates for stays of 30 days or less. The tax was last raised in 1983 (24 years ago), from 5% to 8%. The following table presents the TOT rate in other jurisdictions within the Bay Area: Cit Tax Rate San Francisco 14% Berkele 12% Montere and Cannel 10% San Leandro 10% Walnut Creek 8.5% (since 1984) The proceeds from this tax currently represent approximately $3.6 million or 3.5% of the total General Fund revenues. By increasing the TOT from 8% to 12% this would generate approximately $1.8 million of additional monies in the first year of enactment and these monies have been estimated to increase by 3% per year therea8er. An increase in TOT is also being considered by other Tri-Valley communities to fund capital improvements in their respective communities. The increase in TOT would generate approximately $33.9 million over the seventeen years of the Financing Plan. It should be noted that this measure would have to be approved by the voters on a simple majority basis (50%+1). The Financing Plan has the increase in TOT occurring in the 2008/09FY. That will give the City some time to get this measure to the voters, which could occur in 2008 on February 5th, June 3`d, or November 4th. Also, just like the general obligation bond measure, there are long lead times for these elections and they can be costly. Therefore, it is important that the ballot initiative is well planned, organized, supported by the community and, therefore, successful at the polls. Appendix B, Table 4 presents the Financing Plan with the City's existing revenue stream plus funds from donations and an increase in development fees plus an increase in the transient occupancy tax by the voters from 8% to 12%. Based on this funding level over the seventeen year period of the Financing Plan, the following Program projects (or portions of) will be completed: