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Item 27 - Appeal Application Nos. 2020-03 and 2020-04 - Central Pointe Mixed-Use Development
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Item 27 - Appeal Application Nos. 2020-03 and 2020-04 - Central Pointe Mixed-Use Development
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Agenda Packet
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Clerk of the Council
Item #
27
Date
1/19/2021
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Table 5 showcases the Utility User Tax at buildout below. <br />Table 5 <br />UTILITY USER TAX REVENUE <br />Central Pointe, Santa Ana <br />Energy Expenditures per Household $ 3,260 <br />Occupied Households 581 <br />Total Residential Energy Expenses $ 1,894,998 <br />Total Commercial Energy Expenses' $ 22,797 <br />City Tax Rate 5.5% <br />Full -Year Buildout Revenues $ 105,479 <br />Partial -Year Buildout Revenues $ 91,766 <br />Sources: US Energy Information Administration, RSG, Inc., ESRI BAO <br />'EIA estimates of $1.50 per SF for Retail <br />Sales Taxes <br />The Project is expected to increase sales taxes through both the new businesses and new <br />residents. The methodology and assumptions for both differ but are necessary for accuracy. <br />Resident -Derived Sales Tax <br />To determine the resident share, RSG obtained average annual household expenditures for <br />households within a 1-mile radius of the Project from ESRI Business Analyst. By adjusting the <br />household expenditures based on taxable and non-taxable sales, RSG estimates that each <br />household would spend an average of $17,836 at buildout. Based on experience with previous <br />projects in the City, an estimated 60 percent of those expenditures would be subject to Santa <br />Ana's sales tax. <br />The State and County sales tax receive 6 percent and 0.75 percent of taxable sales, respectively. <br />In addition, the City levies its own sales tax at a rate of 1 percent. In 2018, Santa Ana voters <br />approved an additional sales tax of 1.5 percent that would then decrease to 1 percent in 2029 <br />until sunsetting in 2039. RSG took this increase into consideration when analyzing the affects the <br />new residents would have on the City's General Fund. <br />Using ESRI's Business Analyst Online software, RSG was able to estimate the amount of taxable <br />expenditures the average new household would make in the City. That number was then <br />multiplied by the number of occupied households (581). This provided an estimate of total taxable <br />sales of $6.2 million. From there, the taxable sales were multiplied by both the City's base tax <br />rate and the Measure X additional rates (1 percent and 1.5 percent). Therefore, the residential <br />derived sales tax revenue from the base tax rate is an estimated $62,205 at buildout. The <br />
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