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B. Recurring General Fund Revenues — Proposed Phased 1 Medical Center Recurring General Fund Revenues The table below summarizes recurring revenues to be generated by Phase 1 of the Medical Center. As shown, upon stabilization of the Medical Center's initial phase, it is estimated that the Center will annually generate approximately $254,000 of revenues to the City's General Fund. The annual revenue stream to be generated by the Medical Complex is consistent with the stream generated by other tax exempt -medical centers. Recurrinq General Fund Revenues — Phase 1 Recurring General Percent Fund Revenues of Total New Revenues From Project Sales and Use Tax $60,000 24% Property Tax in Lieu of VLF 0 0% Utility Users Tax 91,000 36% Property Tax 0 0% Business Tax 45,000 18% Franchises Fees 35,000 14% Property Transfer Tax 0 0% Fines and Forfeitures 13,000 5% Emergency Com. System Access Tax 10,000 4% Total Recurring Revenues $254,000 100% 2 (Less) Existing Property Tax/ VLF (114,000) Net New Revenue $140,000 Use Tax From Purchases $23,000 Net New Revenue Without Use Taxes $117,000 Loss of Existing Property Tax Revenues The property currently generates approximately $114,000 in annual property tax and property tax in -lieu of motor vehicle license fees to the City's General Fund. Given Kaiser's tax exempt status, once the medical center is built, the property will be exempt from property taxes and the City will lose approximately $114,000 of existing General Fund Revenue. After netting out the loss of existing revenues, it is estimated that Phase 1 of the Medical Center will generate approximately $140,000 of annual new General Fund revenues. 2 Percentages do not add to 100% due to rounding. Keyser Marston Associates, Inc. Page 7 \\Sf-fs1\wp\19\19096\19096.036\003-001.doc; April 2009