Laserfiche WebLink
II. SUMMARY OF FINDINGS AND CONCLUSIONS <br />A. Net Annual General Fund Impacts — Proposed Phase 1 Medical Center <br />The Project's estimated net annual impacts on the City's General Fund are summarized in <br />Exhibit A and Table 1. As shown, it is estimated that Phase 1 will annually generate a deficit to <br />the General Fund of approximately $419,000. A deficit range of $419,000 to $442,000 has been <br />estimated depending on whether the City is designated as the point of sale for the purpose of <br />receiving annual use taxes generated from Kaiser's purchase of equipment. <br />This projected deficit is driven by Kaiser's tax exempt status. If the Medical Center were subject to <br />property taxes or if Kaiser funded a payment in -lieu of standard property taxes, it is estimated that <br />the Medical Center would generate an annual General Fund surplus of approximately $ 677,000. <br />Exhibit A: Recurring Annual General Fund Impacts <br />$600,000 <br />Assume City Receives <br />Use Tax From the <br />Purchase of Equipment <br />Assume City Does Not <br />Receive Use Tax from <br />Purchase of Equipment <br />Estimated Annual General Fund Revenues Upon <br />Completion of Phase 1 <br />$254,000 <br />$231,000 <br />(Less) Estimated Annual General Fund Service Costs <br />($559,000) <br />($559,000) <br />(Less) Current Property Taxes <br />($114,000) <br />($114,000) <br />Estimated Net Annual General Fund Impact (Deficit) <br />($419,000) <br />($442,000) <br />Exhibit A: Recurring Annual General Fund Impacts <br />$600,000 <br />$559,000 Expense <br />$500,000 <br />$400,000 <br />$419,000 <br />$300,000 <br />Net Deficit <br />$200,000 <br />$100,000 <br />4 <br />$14Q}000 Revenue* <br />ry , �°� <br />$0 <br />A "AW—P111 <br />Net new revenue after deducting existing property tax -based revenues eliminated w ith removal of the property from the tax rolls. <br />Keyser Marston Associates, Inc. Page 5 <br />\\Sf-fs1 \wp\19\19096\19096.036\003-001. doc; April 2009 <br />