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Kaiser Fiscal Impact and Development Agreement 2 Recurring General Fund Revenues — Kaiser Medical Center Phase I Sales and Use Tax $60,000 Property Tax in Lieu of VLF $0 Utility Users Tax $91,000 Property Tax $0 Business License Tax $45,000 Franchise Fees $35,000 Property Transfer Tax $0 Fines and Forfeitures $13,000 Total Recurring Revenues $244,000 (Less) Existing Property Tax from the Site $(114,000) Net New Revenue from Project $130,000 Recurring General Fund Expenditures — Kaiser Medical Center Phase I Police $242,000 Fire Services Contract $163,000 Public Works $122,000 General Government $12,000 Organizational Services $10,000 Community Development $5,000 Engineering & Transportation $5,000 Total Recurring Expenditures $559,000 April 5, 2010 Although the Medical Center is projected to have a negative fiscal impact on the General Fund, the proposed adjacent retail development would generate both property tax and sales tax revenue for the City and would result in a positive fiscal impact of roughly $894,000 annually. Once both components of the project are completed, therefore, the combined fiscal impact would be a positive impact of $465,000 per year. Summary of Fiscal Impacts — Kaiser Medical Center Phase 1 plus Retail Net Annual Revenue from Phase 1 of the Medical Center $(429,000) Net Annual Revenue from the Retail Development $894,000 Combined Annual Fiscal Impact from the Project $465,000 Although Kaiser intends to construct a second phase of the Medical Center in the future, the fiscal impacts of that component were not studied in detail. The fact that Phase 2 will be constructed many years in the future makes accurate analysis very difficult.