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RECURRING FISCAL IMPACTS <br />Property Tax Revenue <br />All property taxes in the state of California are levied at a rate of 1 percent. The City's share of <br />the 1 percent property tax levy is 19.4%, as provided by the County of Orange ("County") Auditor - <br />Controller. The Developer provided RSG with the Project costs that consisted of $42 million for <br />land, and $203 million for hard and soft costs. This $245 million adjusted for inflation over the <br />construction period, would amount to an assessed valuation of $279 million at buildout. <br />To accurately portray the effect of the Project to the City, property tax revenues presented in this <br />report are net of any existing revenues. The existing site is currently valued at $5.5 million. When <br />adjusted for inflation over the construction period the value is $6 million, providing the City an <br />estimated $11,691 in year 2023 absent the construction of the Project. The new development <br />would provide $541,438 to the City in that same year. Therefore, the net new property tax <br />revenues to the City would be $529,747 at buildout. <br />Table 3 <br />NET NEW PROPERTY TAX REVENUE <br />Central Pointe, Santa Ana <br />At Buildout <br />Existing Assessed Value $ 6,026,240 <br />Proposed Project Assessed Valuation' 279,091,931 <br />Net New Value $ 273,065,691 <br />City Property Tax Rate 19.4% <br />Annual Estimate <br />Existing Property Tax Revenues $ 11,691 <br />New Property Tax Revenues $ 541,438 <br />Net New Property Tax Revenues $ 529,747 <br />Source: County of Orange Auditor Controller, RSG, Inc. <br />Inflated pursuant to the construction schedule <br />To project future property taxes, RSG assumed 2 percent inflation on property tax revenues over <br />the 25-year projection period, resulting in $10.3 million (net present value, discounted at 4 <br />percent) in net new property tax revenues for the City General Fund. <br />Property Tax in -lieu of Motor Vehicle License Fee Revenue <br />Established in 1935, the Motor Vehicle License Fee ("MVLF") was essentially a tax on vehicle <br />ownership. It is collected by the State annually when vehicles are registered and was historically <br />allocated to cities and counties based upon a statutory formula. In 2004, during the State's budget <br />crisis, about 90 percent of each city's MVLF revenue was replaced with property tax revenue, and <br />cities in particular began to receive an allocation of property tax from the Educational Revenue <br />