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ta <br />www.FinanceDTA.com <br />SECTION III <br />DESCRIPTION OF RECURRING <br />FISCAL REVENUES/COSTS <br />period, DTA conservatively assumes that there will not be any sales of the Project <br />components, therefore generating no property transfer tax. <br />A.6 Interest Income <br />Interest "Investment" Income revenues are generated by the increase in General <br />Fund revenues resulting from the Project. This increase reflects growth in the <br />following revenue categories: property taxes, VMT, sales taxes, utility user tax, and <br />multiplier revenues (to be discussed in detail in the following sections of this Report). <br />Revenues from this source are usually estimated by multiplying the projected <br />recurring General Fund revenues available for investment by the Local Agency <br />Investment Fund ("LAIF") investment fund rate of return. A LAIF percentage of <br />earnings cost factor of 50% is then applied because the funds being invested on <br />average will be available for only 1 month. Investment income assumptions are <br />summarized in Table 7 below. <br />The projected recurring General Fund revenues available for investment total <br />$460,017. This calculation results in estimated investment income (less earnings <br />cost) of $395. It should be noted that LAIF factors are determined quarterly by the <br />California State Treasurer, whose office governs the investment of revenues by <br />municipalities. <br />Table 7: Investment Income Assumptions <br />Investment Period for Non -Interest General Fund Revenues <br />1 Month <br />LAIF Rate of Return (Estimated) <br />2.06% <br />LAIF Percentage of Earnings <br />50% <br />Projected Recurring General Fund Revenues Available for Investment <br />$460,017 <br />B Analysis of Recurring Revenues, Multiplier Method <br />The Per Capita Employee (Persons Served) Multiplier figures presented in this section play a key <br />role in understanding the impact of the proposed Project on the City's General Fund. As stated <br />in the introduction section of this Report, the Persons Served approach recognizes the fact that <br />the exact relationship of service demands and revenue -generating potential between residents <br />and employees is difficult to quantify, so a specific set of assumptions are needed. <br />To address this, DTA has introduced several assumptions, including the utilization of a service <br />population, or Persons Served population, comprised of all service area residents and 50% of <br />employees working in the service area, as this is common fiscal practice in quantifying the <br />impact of new development in a given service area. This number suggests that a City resident <br />generally has twice the fiscal impact of an employee within the City on the City General Fund. <br />The Persons Served population of the City is estimated at 370,403, equaling the total residents <br />within the City (299,630) plus 50% of employees working in the City (141,545). <br />Utilizing the above assumptions, the multipliers presented in this section and illustrated in <br />EPD Solutions, Inc. May 13 2024 <br />South Coast Technology Center Fiscal Impact Analysis Report <br />12 <br />