HomeMy WebLinkAboutStaff Report 1337 - RevisedCITY OF PALO ALTO
Memorandum
TO: FINANCE COMMITTEE
FROM: CITY MANAGER
DATE: MARCH 15, 2011
DEPARTMENT: PLANNINGAND
COMMUNITY ENVIRONMENT
ID#: 1337
SUBJECT: REVIEW OF THE STANFORD UNIVERSITY MEDICAL CENTER
FACILITIES RENEWAL AND REPLACEMENT PROJECT DRAFT
DEVELOPMENT AGREEMENT
Attached is a corrected version of Attachment C to the Staff Report ID #1337, Item No.1 on
tonight's Finance Committee agenda. There was a formatting error in the inflation analysis
spreadsheet attached as Appendix A to the original March 8, 2011 ADE Report. The summary
tables contained in the text ofthe Staff Report and the ADE Report are correct.
CURTIS W L S
Director of Planning and
Community Environment
Attachment -Corrected Version of Attachment C ofID#1337
APPLIED
DEVELOPMENT
ECONOMICS
MEMO
To: Joe Saccio, Assistant Director
Palo Alto Department of Administrative Services
From: Doug Svensson, AICP
Date: March 9, 2011
Re: SUMC Fiscal Analysis with Inflation
Update in Project Phasing
In their memo dated January 12,2011, CBRE indicated that the phasing of the proposed
SUMC project has shifted. I have revised our fiscal impact analysis of the project to reflect
the new phasing, which follows the construction schedule in the early years and the ramp-up
of permanent staff following completion of Phase 1 in 2017. The table below shows the
revised analysis at specific points in the project phasing. The increase in cumulative net
revenue between 2011 and 2017 reflects mainly the payment of Use Tax during initial
construction. Following the completion of Phase I in 2017, City costs to serve the project
begin to increase substantially and net revenues decline thereafter. 2029 is the first year of
full occupancy of the project and 2042 and 4043 reflect the 32 and 33 year time horizons if
the project begins in 2011. Although Stanford has indicated that the two year delay in
beginning the project will be made up by 2029, the change in cumulative net revenue
between 2042 and 2043 is indicative of the fact that the annual negative impact of the
project will have an effect on City finances for every year it remains unmitigated. The life of
the project is projected to be 51 years, or 2062. At that point, the project would have created
a cumulative deficit for the City of $8.46 million in constant dollar terms. The detailed year
by year figures are shown in Appendix A.
TABLE 1
SUMC FISCAL ANALYSIS SUMMARY
(CONSTANT 2008 DOLLARS)
2011 2017 2029 2042 2043
Revenues $1,038,922 $1,515,631 $634,245 $634,245 $634,245
Expenditures $0 $822,764 $1,008,999 $1,008,999 $1,008,999
Annual Net Revenue/(Cost) $1,038,922 $692,867 ($374,754) ($374,754) ($374,754)
Cumulative Net RevenueL(Cost} ~lL038L922 ~6L981L565 ~3L907L786 (~964L014) (~lL338L768)
100 Pringle Avenue, Suite 560· Walnut Creek, CA 94596 • Tel 925.934.8712 • Fax 925.934.2402
www.adeusa.com
2062
$634,245
$1,008,999
($374,754)
(~8L459L090)
March 4, 2011
Page 2 of 12
As an institutional land use, it is not surprising that SUMC would generate a negative fiscal
impact on the City. Such land uses, which are typically exempt from most property taxes and
do not generate appreciable sales taxes, are usually not fiscal winners for local government.
The background fiscal analysis that was prepared for the Palo Alto Comprehensive Plan
Update estimated that institutional uses throughout the City, including schools and other
non-profit organizations, cost the City $1.575 million per year more in service costs than
they generate in revenue.1 Most cities see this kind of result from institutional uses. The fact
that CBRE's analysis shows a positive fiscal effect from the proposed project is contradictory
to the available evidence.
It is important to emphasize that the major difference between the ADE and CBRE studies
is the City services cost analysis. CBRE has maintained that there is little effect on City
administrative departments as the demand for direct services such as police and fire
protection increases. However, this is not borne out by historical budget data for Palo Alto.
City General Fund expenditures (excluding utilities and other enterprise funds) increased 39
percent between 1998-99 and 2008-09. However, management and support expenditures
increased by 50 percent during the same time period. While such experiditures were 14.4
percent of General Fund expenditures in 1998-99, they were 15.5 percent in 2008-09.2 We
are projecting a similar percentage of costs related to the SUMC project. Palo Alto is a full
service City and consequently is responsible for administrative and management functions
across a wide range of services. The Administrative Services Department, in particular,
centralizes many financial management and administrative functions that in other cities may
be located within the line departments. Thus it is critical that the ongoing escalation of
workload within this department, as well as other general government departments of the
City, be recognized in analyzing the fiscal impacts of major development projects.
Regarding the costs for line departments such as police and fire, these costs reflect per capita
service ratios for all similar projects in the City. The activities of project employees as well as
patients coming to and from the SUMC facilities will generate service demands for
emergency responses as well as use of City services such as libraries and cultural and
recreational programs. In this sense, the SUMC project is no different than other major
employers throughout the City.
1 Applied Development Economics, Pisca/Background Report, City oJPaloAlto,July 29, 2009.
2 California State Controller, Cities Annual Reports, for Fiscal Years 1998-99 and 2008-09, for the City of Palo
Alto.
March 9, 2011
Page 3 of 12
Moreover, the City cost estimates do not include any services that may be associated with the
substantial construction workforce that will be engaged at the project site for many years.
CBRE projects more than 800 Full Time Equivalent (PTE) construction workers in Phase 1
and more than 100 FTE in Phase 2. CBRE projects sales tax revenues from incidental
expenditures by this workforce, which ADE has disputed, but no effort has been made to
project City costs for emergency services, traffic enforcement or other City services during
the construction period.
Cost/Revenue Inflation
I have also incorporated the analysis of revenue and cost inflation over time in the
projections, per direction received from the City Council on January 31, 2011. There are
several components of the revenues and costs that may escalate at different rates, so I have
addressed each element separately. The various rates discussed below have all been updated
to the 2000 to 2010 period. The Use Tax calculations are based on construction costs for the
project and occur between 2011 and 2025 in the analysis. I have used the Engineering News
Record Building Cost Index to inflate these costs year over year during the construction
period. The index averaged 3.3 percent increase per year between 2000 and 2010. For Use
Tax on SUMC direct purchases, which essentially is for equipment purchased from out of
state, we have used the US CPI, at 2.4 percent.
The Property Tax is projected to escalate at the maximum rate of 2 percent per year
assuming no sales of property in the project during the analysis
TABLE 2
INFLATION FACTORS
ENR (Building) 3.3%
U.S. CPI 2.4%
Property Tax 2.0%
City Labor Costs (63% of Total) 4.5%
SF Region CPI 2.4%
In the current Long Range Financial Forecast, the City is projecting a 4.5 percent annual
inflation in salaries and benefits. Based on recent budget data, salaries and benefits constitute
about 63 percent of total City General Fund costs. Therefore, we have inflated this
proportion of City service costs by 4.5 percent per year and the remainder at the San
Francisco Consumer Price Index (CPl), which has been 2.4 percent between 2000 and 2010,
similar to the US rate. In addition, other revenues besides the Use Tax and the Property Tax
have been escalated at the CPI rate. The results of this analysis are summarized in Table 3
below.
The annual deficit, as shown for 2029, increases from $374,750 in the prior analysis to about
$1.1 million per year. This represents the stabilized build out of the project. In the year 2042,
March 9, 2011
Page 4 of 12
this deficit increases to $2.2 million per year and the accumulated deficit would be about
$21.4 million (compared to $964,000 without inflation). Given the uncertainties in the rate
of inflation, it is difficult to project inflationary effects over longer periods. For this reason,
the City limits its Long Range Financial Forecast to ten years.
TABLE 3
SUMC FISCAL ANALYSIS SUMMARY WITH INFLATION
2011 2017 2029 2042
Revenues $1,144,201 $1,986,394 $1,110,455 $1,498,058
Expenditures $0 $1,147,107 $2,217,563 $3,682,301
Annual Net Revenue!(Cost) $1,144,201 $839,286 ($1,107,108) ($2,184,243)
Cumulative Net RevenueL{Cost) ~O ~7£259£731 (PlO£485) (~21£428?29)
However, as a result of City revenues not keeping pace with ongoing operating costs, the
City has currently accumulated a backlog of unfunded infrastructure expenditures totaling
$500 million. The City has been forced to defer long term maintenance and capital
replacement costs that continue to accumulate. Given these circumstances, it is essential that
projects with known fiscal deficits, such as the SUMC expansion, mitigate those fiscal
impacts.
In its discussion with Stanford officials, the City has requested that the University guarantee
the major revenues projected to accrue from the SUMC project. These include the Use Tax
from construction of the project, Use Tax from ongoing equipment purchases and sales tax
from purchases of materials by SUMC and the other entities comprising the project. These
three revenues would total about $12.3 million over 30 years, which is about 53 percent of
the total revenues projected to be generated by the project in constant dollar terms. These
revenues are the subject of a proposed guarantee because they are most within Stanford's
control, resulting from direct expenditures by SUMC or by the University's construction
contractors. However, even with Stanford's guarantee of these revenues, if other revenues
fall short, the City is still at risk to experience fiscal deficits from the project. With the
significant potential of inflation to erode the value of these revenues in relation to City
costs, it is also essential that the guaranteed amounts in future years reflect appropriate
inflation rates. The Use Tax proceeds, for example, should be escalated to reflect increases in
construction costs as measured by the ENR index presented in Table 2 above. Similarly, sales
tax revenue guarantees should reflect CPI increases to be effective meeting City costs.
The City's main concern is to ensure that its costs for services related to the expanded
SUMC facilities are covered through revenues either guaranteed by Stanford or obtained
through normal taxing mechanisms. Given the current uncertainty about the ultimate project
size and phasing, as well as future needs for City services, the City and Stanford should
consider including a provision for periodic monitoring of City costs and revenues related to
the project, with the opportunity to adjust the fiscal mitigation amounts if needed to reflect
actual experience with revenues and costs in the future.
March 9, 2011
Page 5 of 12
APPENDIX A
ANNUAL COST lREVENUE ANALYSIS OF SUMC PROJECT
Revenue! Cost Categories Years
General Fund Revenues 2011 2012 2013 2014 2015
Sales Tax
SUMC Direct Purchasing $0 $0 $0 $0 $0
SUMC Facilities On-site Sales $0 $0 $0 $0 $0
SUMC Employee Spending $0 $0 $0 $0 $0
SUMC Overnight Visitor Spending $0 $0 $0 $0 $0
Construction Related Purchasing $1,036,857 $1,036,857 $1,036,857 $1,036,857 $1,036,857
Construction Worker Spending $2,065 $2,065 $2,065 $2,065 $2,065
Property Tax
Demolition Reduction $0 ($12,081) ($12,081) ($12,081) ($12,081)
211 Quarry Rd. $0 $20,949 $20,949 $20,949 $20,949
New Hoover Pavilion $0 $0 $0 $0 $0
Transient Occupancy tax $0 $0 $0 $0 $0
Utility Users Tax $0 $0 $0 $0 $0
Other Taxes and Fines
Motor Vehicle In-Lieu Fees $0 $2,165 $2,165 $2,165 $2,165
Fines and Penalties $0 $0 $0 $0 $0
Total General Fund Revenues ~1,038,922 ~1,049,955 ~1,049,955 ~1,049,955 ~1,049,955
General Fund EXQenditures
City Attorney $0 $0 $0 $0 $0
City Auditor $0 $0 $0 $0 $0
City Clerk $0 $0 $0 $0 $0
City Manager $0 $0 $0 $0 $0
Administrative Services $0 $0 $0 $0 $0
Human Resources $0 $0 $0 $0 $0
Community Services $0 $0 $0 $0 $0
Fire $0 $0 $0 $0 $0
Library $0 $0 $0 $0 $0
Planning and Community Environment $0 $0 $0 $0 $0
Police $0 $0 $0 $0 $0
Public Works $0 $0 $0 $0 $0
Non-Departmental $0 $0 $0 $0 $0
Total General Fund Expenditures $0 $0 $0 $0 $0
General Fund Net Fiscal Impact $1,038,922 $1,049,955 $1,049,955 $1,049,955 $1,049,955
Cumulative General Fund Im~act ~1,038,922 ~2,088,877 p,138,833 ~4,188?88 ~5,238,743
Inflation Analysis 2011 2012 2013 2014 2015
Construction revenues $1,141,986 $1,179,346 $1,217,929 $1,257,774 $1,298,922
Direct Purchase Use Tax $0 $0 $0 $0 $0
Property taX/Motor Veh. In-Lieu $0 $11,943 $12,181 $12,425 $12,674
Other revenues $2,215 $12,002 $12,285 $12,575 $12,871
Total revenues $1,144,201 $1,203,291 $1,242,395 $1,282,773 $1,324,467
Costs $0 $0 $0 $0 $0
Annual Net $1,144,201 $1,203,291 $1,242,395 $1,282,773 $1,324,467
Cumulative Net ~1,203,291 ~2,445,686 ~3,728,459 ~5,052,926
Source: ADE, Inc.
2016 2017
$0 $18,522
$0 $125,938
$0 $47,880
$0 $243
$1,036,857 $1,036,857
$2,065 $2,065
($12,081) ($12,081)
$20,949 $20,949
$0 $0
$0 $4,977
$0 $241,832
$2,165 $2,165
$0 $26,283
~1,049,955 ~1,515,631
$0 $21,594
$0 $5,998
$0 $8,398
$0 $13,196
$0 $55,784
$0 $17,995
$0 $50,096
$0 $151,904
$0 $15,492
$0 $47,261
$0 $262,279
$0 $119,800
$0 $52,968
$0 $822,764
$1,049,955 $692,867
~6,288,698 ~6,981,565
2016 2017
$1,341,417 $1,385,302
$0 $22,902
$12,927 $13,186
$13,175 $565,005
$1,367,519 $1,986,394
$0 $1,147,107
$1,367,519 $839,286
~6,420,445 F,259,731
March 9, 2011
Page 6 of 12
APPENDIX A
ANNUAL COSTlREVENUE ANALYSIS OF SUMC PROJECT
Revenue/Cost Categories Years
General Fund Revenues 2018 2019 2020 2021
Sales Tax
SUMC Direct Purchasing $18,522 $18,522 $18,522 $18,522
SlIMC Facilities On-site Sales $125,938 $125,938 $125,938 $125,938
SUMC Employee Spending $47,880 $47,880 $50,498 $50,498
SUMC Overnight Visitor Spending $243 $243 $256 $256
COnstruction Related Purchasing $111,302 $111,302 $111,302 $111,302
COnstruction Worker Spending $231 $231 $231 $231
Property Tax
Demolition Reduction ($12,081) ($12,081) ($12,081) ($12,081)
211 Quarry Rd. $20,949 $20,949 $20,949 $20,949
New Hoover Pavilion $13,919 $27,840 $41,759 $41,759
Transient Occupancy tax $4,977 $4,977 $5,249 $5,249
Utility Users Tax $241,832 $241,832 $255,055 $255,055
Other Taxes and Fines
Motor Vehicle In-Lieu Fees $5,562 $8,960 $12,358 $12,358
Fines and Penalties $26,283 $26,283 $27,720 $27,720
Total General Fund Revenues ~605!559 ~622!877 ~657!757 ~657!757
General Fund Exl:1enditures
City Attorney $21,594 $21,594 $22,774 $22,774
City Auditor $5,998 $5,998 $6,326 $6,326
City Clerk $8,398 $8,398 $8,857 $8,857
City Manager $13,196 $13,196 $13,918 $13,918
Administrative Services $55,784 $55,784 $58,834 $58,834
Human Resources $17,995 $17,995 $18,979. $18,979
Community Services $50,096 $50,096 $52,835 $52,835
Fire $151,904 $151,904 $160,209 $160,209
Library $15,492 $15,492 $16,339 $16,339
Planning and Community Environment $47,261 $47,261 $49,845 $49,845
Police $262,279 $262,279 $276,619 $276,619
Public Works $119,800 $119,800 $126,350 $126,350
Non-Departmental $52,968 $52,968 $55,864 $55,864
Total General Fund Expenditures $822,764 $822,764 $867,748 $867,748
General Fund Net Fiscal Impact ($217,205) ($199,887) ($209,992) ($209,992)
Cumulative General Fund Im~act ~6!764!360 ~6!564!473 ~6!354!481 ~6!144!490
Inflation Analy:sis 2018 2019 2020 2021
COnstruction revenues $153,571 $158,595 $163,784 $169,142
Direct Purchase Use Tax $23,448 $24,008 $24,581 $25,167
Property taX/Motor Veh. In-Lieu $34,559 $56,783 $79,881 $81,479
Other revenues $593,586 $625,573 $681,967 $698,049
Total revenues $805,164 $864,959 $950,212 $973,837
Costs $1,190,840 $1,236,357 $1,353,924 $1,405,941
Annual Net ($385,675) ($371,398) ($403,712) ($432,104)
Cumulative Net ~6!874!056 ~6!502!657 ~6!098!946 ~5!666!842
Source: ADE, Inc.
2022 2023
$18,522 $18,522
$125,938 $125,938
$50,498 $50,498
$256 $256
$111,302 $111,302
$231 $231
($12,081) ($12,081)
$20,949 $20,949
$41,759 $41,759
$5,249 $5,249
$255,055 $255,055
$12,358 $12,358
$27,720 $27,720
~657!757 ~657!757
$22,774 $22,774
$6,326 $6,326
$8,857 $8,857
$13,918 $13,918
$58,834 $58,834
$18,979 $18,979
$52,835 $52,835
$160,209 $160,209
$16,339 $16,339
$49,845 $49,845
$276,619 $276,619
$126,350 $126,350
$55,864 $55,864
$867,748 $867,748
($209,992) ($209,992)
~5!934!498 ~5!724!506
2022 2023
$174,676 $180,390
$25,768 $26,383
$83,108 $84,770
$714,510 $731,360
$998,062 $1,022,903
$1,460,092 $1,516,469
($462,030) ($493,566)
~5!204!812 ~4!711!247
March 9, 2011
Page 7 of 12
APPEN~IXA
ANNUAL COST lREVENUE ANALYSIS OF SUMC PROJECT
Revenuel Cost Cateaories Years
General Fund Revenues 2024 2025 2026 2027
Sales Tax
SUMC Direct Purchasing $18,522 $18,522 $35,999 $38,337
SUMC Facilities On-site Sales $125,938 $125,938 $128,034 $130,131
SUMC Employee Spending $50,498 $50,498 $52,566 $54,608
SUMC Overnight Visitor Spending $256 $256 $267 $277
Construction Related Purchasing $111,302 $111,302 $0 $0
Construction Worker Spending $231 $231 $0 $0
Property Tax
Demolition Reduction ($12,081) ($12,081) ($12,081) ($12,081)
211 Quarry Rd. $20,949 $20,949 $20,949 $20,949
New Hoover Pavilion $41,759 $41,759 $41,759 $41,759
Transient Occupancy tax $5,249 $5,249 $5,464 $5,677
Utility Users Tax $255,055 $255,055 $265,500 $275,813
Other Taxes and Fines
Motor Vehicle In-Lieu Fees $12,358 $12,358 $12,358 $12,358
Fines and Penalties $27,720 $27,720 $28,855 $29,976
Total General Fund Revenues ~657!757 ~657l57 ~579!671 ~597!805
General Fund Exl2enditures
City Attorney $22,774 $22,774 $23,707 $24,628
City Auditor $6,326 $6,326 $6,585 $6,841
City Clerk $8,857 $8,857 $9,219 $9,578
City Manager $13,918 $13,918 $14,488 $15,050
Administrative Services $58,834 $58,834 $61,243 $63,622
Human Resources $18,979 $18,979 $19,756 $20,523
Community Services $52,835 $52,835 $54,999 $57,136
Fire $160,209 $160,209 $166,771 $173,249
Library $16,339 $16,339 $17,008 $17,668
Planning and Community Environment $49,845 $49,845 $51,887 $53,902
Police $276,619 $276,619 $287,947 $299,132
Public Works $126,350 $126,350 $131,524 $136,633
Non-Departmental $55,864 $55,864 $58,152 $60,411
Total General Fund Expenditures $867,748 $867,748 $903,286 $938,374
General Fund Net Fiscal Impact ($209,992) ($209,992) ($323,615) ($340,569)
Cumulative General Fund Im~act ~5!514!514 ~5!304!523 ~4!980!907 ~4!640!338
Inflation Anal~sis 2024 2025 2026 2027
Construction revenues $186,292 $192,386 $0 $0
Direct Purchase Use Tax $186,292 $192,386 $0 $0
Property taX/Motor Veh. In-Lieu $27,013 $27,657 $55,037 $60,010
Other revenues $86,466 $88,195 $89,959 $91,758
Total revenues $748,607 $766,261 $808,275 $851,932
Costs $1,048,377 $1,074,499 $953,270 $1,003,700
Annual Net $1,575,168 $1,636,287 $1,769,550 $1,909,960
Cumulative Net (~526!791) (~56V88) (~816!280) (~906!261)
Source: ADE, Inc.
2028 2029
$40,675 $43,013
$132,227 $134,323
$56,676 $58,718
$288 $298
$0 $0
$0 $0
($12,081) ($12,081)
$20,949 $20,949
$41,759 $41,759
$5,892 $6,104
$286,259 $296,572
$12,358 $12,358
$31,111 $32,232
~616!113 ~634!245
$25,561 $26,482
$7,100 $7,356
$9,940 $10,298
$15,620 $16,183
$66,032 $68,411
$21,301 $22,068
$59,299 $61,436
$179,810 $186,288
$18,338 $18,998
$55,944 $57,959
$310,461 $321,646
$141,808 $146,917
$62,698 $64,957
$973,911 $1,008,999
($357,799) ($374,754)
~4!282!539 ~3!907!786
2028 2029
$0 $0
$0 $0
$65,189 $70,581
$93,593 $95,465
$897,476 $944,409
$1,056,259 $1,110,455
$2,059,763 $2,217,563
(~1!003!504) (~1!107!108)
March 9, 2011
Page 8 of 12
APPENDIX A
ANNUAL COSTlREVENUE ANALYSIS OF SUMC PROJECT
Revenue/Cost Categories Years
General Fund Revenues 2030 2031 2032 2033
Sales Tax
SUMC Direct Purchasing $43,013 $43,013 $43,013 $43,013
SUMC Facilities On-site Sales $134,323 $134,323 $134,323 $134,323
SUMC Employee Spending $58,718 $58,718 $58,718 $58,718
SUMC Overnight Visitor Spending $298 ' $298 $298 $298
Construction Related Purchasing $0 $0 $0 $0
Construction Worker Spending $0 $0 $0 $0
Property Tax
Demolition Reduction ($12,081) ($12,081) ($12,081) ($12,081)
211 Quarry Rd. $20,949 $20,949 $20,949 $20,949
New Hoover Pavilion $41,759 $41,759 $41,759 $41,759
Transient Occupancy tax $6,104 $6,104 $6,104 $6,104
Utility Users Tax $296,572 $296,572 $296,572 $296,572
Other Taxes and Fines
Motor Vehicle In-Lieu Fees $12,358 $12,358 $12,358 $12,358
Fines and Penalties $32,232 $32,232 $32,232 $32,232
Total General Fund Revenues ~634L245 ~634L245 ~634L245 ~634L245
General Fund Ex[!enditures
City Attorney $26,482 $26,482 $26,482 $26,482
City Auditor $7,356 $7,356 $7,356 $7,356
City Clerk $10,298 $10,298 $10,298 $10,298
City Manager $16,183 $16,183 $16,183 $16,183
Administrative Services $68,411 $68,411 $68,411 $68,411
Human Resources $22,068 $22,068 $22,068 $22,068
Community Services $61,436 $61,436 $61,436 $61,436
Fire $186,288 $186,288 $186,288 $186,288
Library $18,998 $18,998 $18,998 $18,998
Planning and Community Environment $57,959 $57,959 $57,959 $57,959
Police $321,646 $321,646 $321,646 $321,646
Public Works $146,917 $146,917 $146,917 $146,917
Non-Departmental $64,957 $64,957 $64,957 $64,957
Total General Fund Expenditures $1,008,999 $1,008,999 $1,008,999 $1,008,999
General Fund !'Jet Fiscal Impact ($374,754) ($374,754) ($374,754) ($374,754)
Cumulative General Fund Im~act ~3L533L032 ~3L158L278 ~2L783L524 ~2L408i770
Inflation Analysis ·2030 2031 2032 2033
Construction revenues $0 $0 $0 $0
Direct Purchase Use Tax $72,266 $73,990 $75,756 $77,564
Property taX/Motor Veh. In-Lieu $97,374 $99,322 $101,308 $103,334
Other revenues $966,680 $989,477 $1,012,810 $1,036,695
Total revenues $1,136,320 $1,162,788 $1,189,874 $1,217,593
Costs $2,304,630 $2,395,322 $2,489,796 $2,588,214
Annual N~t ($1,168,310) ($1,232,534) ($1,299,921) ($1,370,621)
Cumulative Net (~1L378L796) (~2L611L330) (~3L911L251) (~5L281L872)
Source: ADE, Inc.
2034 2035
$43,013 $43,013
$134,323 $134,323
$58,718 $58,718
$298 $298
$0 $0
$0 $0
($12,081) ($12,081)
$20,949 $20,949
$41,759 $41,759
$6,104 $6,104
$296,572 $296,572
$12,358 $12,358
$32,232 $32,232
~634L245 ~634L245
$26,482 $26,482
$7,356 $7,356
$10,298 $10,298
$16,183 $16,183
$68,411 $68,411
$22,068 $22,068
$61,436 $61,436
$186,288 $186,288
$18,998 $18,998
$57,959 $57,959
$321,646 $321,646
$146,917 $146,917
$64,957 $64,957
$1,008,999 $1,008,999
($374,754) ($374,754)
~2L034L017 ~1L659L263
2034 2035
$0 $0
$79,415 $81,310
$105,401 $107,509
$1,061,142 $1,086,166
$1,245,958 $1,274,985
$2,690,748 $2,797,575
($1,444,790) ($1,522,590)
(~6L726L662) (~8L249L253)
March 9, 2011
Page 9 of 12
Revenue/Cost Categories
General Fund Revenues
Sales Tax
SUMC Direct Purchasing
SUMC Facilities On-site Sales
SUMC Employee Spending
SUMC Overnight Visitor Spending
Construction Related Purchasing
Construction Worker Spending
Property Tax
Demolition Reduction
211 Quarry Rd.
New Hoover Pavilion
Transient Occupancy tax
Utility Users Tax
Other Taxes and Fines
Motor Vehicle In-Lieu Fees
Fines and Penalties
Total General Fund Revenues
General Fund EX(2enditures
City Attorney
City Auditor
City Clerk
City Manager
Administrative Services
Human Resources
Community Services
Fire
Library
Planning and Community Environment
Police
Public Works
Non-Departmental
Total General Fund Expenditures
General Fund Net Fiscal Impact
Cumulative General Fund Im~act
Inflation Analysis
Construction revenues
Direct Purchase Use Tax
Property tax/Motor Veh. In-Lieu
Other revenues
Total revenues
Costs
Annual Net
Cumulative Net
Source: ADE, Inc.
APPENDIX A
ANNUAL COSTlREVENUE ANALYSIS OF SUMC PROJECT
Years
2036 2037 2038 2039 2040
$43,013 $43,013 $43,013 $43,013 $43,013
$134,323 $134,323 $134,323 $134,323 $134,323
$58,718 $58,718 $58,718 $58,718 $58,718
$298 $298 $298 $298 $298
$0 $0 $0 $0 $0
$0 $0 $0 $0 $0
($12,081) ($12,081) ($12,081) ($12,081) ($12,081)
$20,949 $20,949 $20,949 $20,949 $20,949
$41,759 $41,759 $41,759 $41,759 $41,759
$6,104 $6,104 $6,104 $6,104 $6,104
$296,572 $296,572 $296,572 $296,572 $296,572
$12,358 $12,358 $12,358 $12,358 $12,358
$32,232 $32,232 $32,232 $32,232 $32,232
~634,245 ~634,245 ~634,245 ~634,245 ~634,245
$26,482 $26,482 $26,482 $26,482 $26,482
$7,356 $7,356 $7,356 $7,356 $7,356
$10,298 $10,298 $10,298 $10,298 $10,298
$16,183 $16,183 $16,183 $16,183 $16,183
$68,411 $68,411 $68;411 $68,411 $68,411
$22,068 $22,068 $22,068 $22,068 $22,068
$61,436 $61,436 $61,436 $61,436 $61,436
$186,288 $186,288 $186,288 $186,288 $186,288
$18,998 $18,998 $18,998 $18,998 $18,998
$57,959 $57,959 $57,959 $57,959 $57,959
$321,646 $321,646 $321,646 $321,646 $321,646
$146,917 $146,917 $146,917 $146,917 $146,917
$64,957 $64,957 $64,957 $64,957 $64,957
$1,008,999 $1,008,999 $1,008,999 $1,008,999 $1,008,999
($374,754) ($374,754) ($374,754) ($374,754) ($374,754)
~1,284,509 ~909,755 ~535,001 ~160,248 {~214,506}
2036 2037 2038 2039 2040
$0 $0 $0 $0 $0
$83,250 $85,237 $87,271 $89,354 $91,486
$109,659 $111,853 $114,090 $116,371 $118,699
$1,111,780 $1,137,998 $1,164,834 $1,192,303 $1,220,420
$1,304,689 $1,335,087 $1,366,195 $1,398,028 $1,430,605
$2,908,882 $3,024,863 $3,145,721 $3,271,668 $3,402,924
($1,604,193) ($1,689,776) ($1,779,527) ($1,873,640) ($1,972,319)
{~9,853,446} {~11,543,222} {~13,322,748} (~15,196,388) {~17,168,707}
2041 2042
$43,013 $43,013
$134,323 $134,323
$58,718 $58,718
$298 $298
$0 $0
$0 $0
($12,081) ($12,081)
$20,949 $20,949
$41,759 $41,759
$6,104 $6,104
$296,572 $296,572
$12,358 $12,358
$32,232 $32,232
~634,245 ~634,245
$26,482 $26,482
$7,356 $7,356
$10,298 $10,298
$16,183 $16,183
$68,411 $68,411
$22,068 $22,068
$61,436 $61,436
$186,288 $186,288
$18,998 $18,998
$57,959 $57,959
$321,646 $321,646
$146,917 $146,917
$64,957 $64,957
$1,008,999 $1,008,999
($374,754) ($374,754)
{~589,260} {~964,014}
2041 2042
$0 $0
$93,669 $95,905
$121,073 $123,494
$1,249,200 $1,278,659
$1,463,942 $1,498,058
$3,539,721 $3,682,301
($2,075,779) ($2,184,243)
(~19,244,486) {~21,428,729}
March 9, 2011
Page 10 of 12
Revenue/Cost Categories
General Fund Revenues
Sales Tax
SUMC Direct Purchasing
SUMC Facilities On-site Sales
SUMC Employee Spending
SUMC Overnight Visitor Spending
Construction Related Purchasing
Construction Worker Spending
Property Tax
Demolition Reduction
211 Quarry Rd.
New Hoover Pavilion
Transient Occupancy tax
Utility Users Tax
Other Taxes and Fines
Motor Vehicle In-Lieu Fees
Fines and Penalties
Total General Fund Revenues
General Fund EX[lenditures
City Attorney
City Auditor
City Clerk
City Manager
Administrative Services
Human Resources
Community Services
Fire
Library
Planning and Community Environment
Police
Public Works
Non-Departmental
Total General Fund Expenditures
General Fund Net Fiscal Impact
Cumulative General Fund Im~act
Source: ADE, Inc.
APPENDIX A
ANNUAL COSTlREVENUE ANALYSIS OF SUMC PROJECT
Years
2043 2044 2045 2046 2047 2048 2049
$43,013 $43,013 $43,013 $43,013 $43,013 $43,013 $43,013
$134,323 $134,323 $134,323 $134,323 $134,323 $134,323 $134,323
$58,718 $58,718 $58,718 $58,718 $58,718 $58,718 $58,718
$298 $298 $298 $298 $298 $298 $298
$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0
($12,081) ($12,081) ($12,081) ($12,081) ($12,081) ($12,081) ($12,081)
$20,949 $20,949 $20,949 $20,949 $20,949 $20,949 $20,949
$41,759 $41,759 $41,759 $41,759 $41,759 $41,759 $41,759
$6,104 $6,104 $6,104 $6,104 $6,104 $6,104 $6,104
$296,572 $296,572 $296,572 $296,572 $296,572 $296,572 $296,572
$12,358 $12,358 $12,358 $12,358 $12,358 $12,358 $12,358
$32,232 $32,232 $32,232 $32,232 $32,232 $32,232 $32,232
i634,245 i634,245 i634,245 i634,245 i634,245 i634,245 i634,245
$26,482 $26,482 $26,482 $26,482 $26,482 $26,482 $26,482
$7,356 $7,356 $7,356 $7,356 $7,356 $7,356 $7,356
$10,298 $10,298 $10,298 $10,298 $10,298 $10,298 $10,298
$16,183 $16,183 $16,183 $16,183 $16,183 $16,183 $16,183
$68,411 $68,411 $68,411 $68,411 $68,411 $68,411 $68,411
$22,068 $22,068 $22,068 $22,068 $22,068 $22,068 $22,068
$61,436 $61,436 $61,436 $61,436 $61,436 $61,436 $61,436
$186,288 $186,288 $186,288 $186,288 $186,288 $186,288 $186,288
$18,998 $18,998 $18,998 $18,998 $18,998 $18,998 $18,998
$57,959 $57,959 $57,959 $57,959 $57,959 $57,959 $57,959
$321,646 $321,646 $321,646 $321,646 $321,646 $321,646 $321,646
$146,917 $146,917 $146,917 $146,917 $146,917 $146,917 $146,917
$64,957 $64,957 $64,957 $64,957 $64,957 $64,957 $64,957
$1,008,999 $1,008,999 $1,008,999 $1,008,999 $1,008,999 $1,008,999 $1,008,999
($374,754) ($374,754) ($374,754) ($374,754) ($374,754) ($374,754) ($374,754)
Ci1,338,768} Ci1,713,521} Ci2,088,275} Ci 2,463,029} Ci2,837,783} Ci3,212,537} C~3,587,291 }
March 9, 2011
Page 11 of 12
Revenue/Cost Categories
General Fund Revenues
Sales Tax
SUMC Direct Purchasing
SUMC Facilities On-site Sales
SUMC Employee Spending
SUMC Overnight Visitor Spending
Construction Related Purchasing
Construction Worker Spending
Property Tax
Demolition Reduction
211 Quarry Rd.
New Hoover Pavilion
Transient Occupancy tax
Utility Users Tax
Other Taxes and Fines
Motor Vehicle In-Lieu Fees
Fines and Penalties
Total General Fund Revenues
General Fund EX(2enditures
City Attorney
City Auditor
City Clerk
City Manager
Administrative Services
Human Resources
Community Services
Fire
Library
Planning and Community Environment
Police
Public Works
Non-Departmental
Total General Fund Expenditures
General Fund Net Fiscal Impact
Cumulative General Fund Im[1act
Source: ADE, Inc.
APPENDIX A
ANNUAL COSTlREVENUE ANALYSIS OF SUMC PROJECT
Years
2050 2051 2052 2053 2054
$43,013 $43,013 $43,013 $43,013 $43,013
$134,323 $134,323 $134,323 $134,323 $134,323
$58,718 $58,718 $58,718 $58,718 $58,718
$298 $298 $298 $298 $298
$0 $0 $0 $0 $0
$0 $0 $0 $0 $0
($12,081) ($12,081) ($12,081) ($12,081) ($12,081)
$20,949 $20,949 $20,949 $20,949 $20,949
$41,759 $41,759 $41,759 $41,759 $41,759
$6,104 $6,104 $6,104 $6,104 $6,104
$296,572 $296,572 $296,572 $296,572 $296,572
$12,358 $12,358 $12,358 $12,358 $12,358
$32,232 $32,232 $32,232 $32,232 $32,232
~6341245 ~6341245 ~6341245 ~6341245 ~6341245
$26,482 $26,482 $26,482 $26,482 $26,482
$7,356 $7,356 $7,356 $7,356 $7,356
$10,298 $10,298 $10,298 $10,298 $10,298
$16,183 $16,183 $16,183 $16,183 $16,183
$68,411 $68,411 $68,411 $68,411 $68,411
$22,068 $22,068 $22,068 $22,068 $22,068
$61,436 $61,436 $61,436 $61,436 $61,436
$186,288 $186,288 $186,288 $186,288 $186,288
$18,998 $18,998 $18,998 $18,998 $18,998
$57,959 $57,959 $57,959 $57,959 $57,959
$321,646 $321,646 $321,646 $321,646 $321,646
$146,917 $146,917 $146,917 $146,917 $146,917
$64,957 $64,957 $64,957 $64,957 $64,957
$1,008,999 $1,008,999 $1,008,999 $1,008,999 $1,008,999
($374,754) ($374,754) ($374,754) ($374,754) ($374,754)
{~3196210442 {~4133617982 {~4171115522 {~5,086,3062 {~5146110602
2055 2056
$43,013 $43,013
$134,323 $134,323
$58,718 $58,718
$298 $298
$0 $0
$0 $0
($12,081) ($12,081)
$20,949 $20,949
$41,759 $41,759
$6,104 $6,104
$296,572 $296,572
$12,358 $12,358
$32,232 $32,232
~6341245 ~6341245
$26,482 $26,482
$7,356 $7,356
$10,298 $10,298
$16,183 $16,183
$68,411 $68,411
$22,068 $22,068
$61,436 $61,436
$186,288 $186,288
$18,998 $18,998
$57,959 $57,959
$321,646 $321,646
$146,917 $146,917
$64,957 $64,957
$1,008,999 $1,008,999
($374,754) ($374,754)
{~5183518132 {~612101567}
March 9, 2011
Page 12 of 12
APPENDIX A
ANNUAL COST/REVENUE ANALYSIS OF SUMC PROJECT
Revenuel Cost Categories Years
General Fund Revenues 2057 2058 2059 2060
Sales Tax
SUMC Direct Purchasing $43,013 $43,013 $43,013 $43,013
SUMC Facilities On-site Sales $134,323 $134,323 $134,323 $134,323
SUMC Employee Spending $58,718 $58,718 $58,718 $58,718
SUMC Overnight Visitor Spending $298 $298 $298 $298
Construction Related Purchasing $0 $0 $0 $0
Construction Worker Spending $0 $0 $0 $0
Property Tax
Demolition Reduction ($12,081) ($12,081) ($12,081) ($12,081)
211 Quarry Rd. $20,949 $20,949 $20,949 $20,949
New Hoover Pavilion $41,759 $41,759 $41,759 $41,759
Transient Occupancy tax $6,104 $6,104 $6,104 $6,104
Utility Users Tax $296,572 $296,572 $296,572 $296,572
Other Taxes and Fines
Motor Vehicle In-Lieu Fees $12,358 $12,358 $12,358 $12,358
Fines and Penalties $32,232 $32,232 $32,232 $32,232
Total General Fund Revenues $634,245 $634,245 $634,245 $634,245
General Fund Expenditures
City Attorney $26,482 $26,482 $26,482 $26,482
City Auditor $7,356 $7,356 $7,356 $7,356
City Clerk $10,298 $10,298 $10,298 $10,298
City Manager $16,183 $16,183 $16,183 $16,183
Administrative Services $68,411 $68,411 $68,411 $68,411
Human Resources $22,068 $22,068 $22,068 $22,068
Community Services $61,436 $61,436 $61,436 $61,436
Fire $186,288 $186,288 $186,288 $186,288
Library $18,998 $18,998 $18,998 $18,998
Planning and Community Environment $57,959 $57,959 $57,959 $57,959
Police $321,646 $321,646 $321,646 $321,646
Public Works $146,917 $146,917 $146,917 $146,917
Non-Departmental $64,957 $64,957 $64,957 $64,957
Total General Fund Expenditures $1,008,999 $1,008,999 $1,008,999 $1,008,999
General Fund Net Fiscal Impact ($374,754) ($374,754) ($374,754) ($374,754)
Cumulative General Fund Impact ($6,585,321) ($6,960,075) ($7,334,829) ($7,709,582)
Source: ADE, Inc.
2061 2062
$43;013 $43,013
$134,323 $134,323
$58,718 $58,718
$298 $298
$0 $0
$0 $0
($12,081) ($12,081)
$20,949 $20,949
$41,759 $41,759
$6,104 $6,104
$296,572 $296,572
$12,358 $12,358
$32,232 $32,232
$634,245 $634,245
$26,482 $26,482
$7,356 $7,356
$10,298 $10,298
$16,183 $16,183
$68,411 $68,411
$22,068 $22,068
$61,436 $61,436
$186,288 $186,288
$18,998 $18,998
$57,959 $57,959
$321,646 $321,646
$146,917 $146,917
$64,957 $64,957
$1,008,999 $1,008,999
($374,754) ($374,754)
($8,084,336) ($8,459,090)