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ta <br />www.FinanceDTA.com <br />additional revenue to the City's General Fund. <br />B.6 Retail Cannabis Taxes <br />SECTION III <br />DESCRIPTION OF RECURRING <br />FISCAL REVENUES/COSTS <br />The City currently imposes taxes on the retail sales of adult -use and medicinal <br />cannabis. Although these retail cannabis taxes currently constitute 4% of City's <br />FY 2023-24 General Fund revenues, DTA conservatively applied a 90% discount rate <br />to account for only the portion of the retail cannabis tax revenues that are expected <br />to vary with population and employee growth in the City, as opposed to such <br />revenues that are fixed and will therefore remain unchanged by the Project. <br />DTA forecasts the retail cannabis taxes at $4.22 per Person Served, generating $899 <br />in additional revenue to the City's General Fund. <br />C Analysis of Recurring Costs, Case Study Method <br />C.1 General Government Costs <br />General government costs are projected at a marginal rate of 75.00% of the City <br />General Fund recurring costs, based on the assumption that the FY 2023-24 general <br />government expenditures, equaling $99.2 million, will remain at the same relative <br />proportion of the FY 2023-24 City total non -governmental expenditures of <br />approximately $283.8 million in future years. Government costs in this area are <br />generated from several areas, including the City Council, City Manager, City <br />Attorney, City Clerk, Finance and Management Services, Human Resource, Planning <br />and Building, and Non -Departmental expenditures. <br />According to the FY 2023-24 budget, the percentage of general government <br />expenditures to non -governmental expenditures is approximately 34.9%. However, <br />these general government costs are not expected to increase on a one -for -one basis <br />as a result of the land use development depicted in this Report. Therefore, this <br />Report assumes that general government costs increase at an estimated marginal <br />rate of 75%, or 26.2% of the existing General Government cost overhead rate. This <br />approach results in annual general government costs of $42,092. A detailed <br />explanation of these calculations is presented in Appendix A-10. <br />D Analysis of Recurring Costs, Multiplier Method <br />As discussed previously in Section III.B, DTA utilized the Persons Served population <br />approach to quantify the marginal increase in City's General Fund expenditures resulting <br />from the proposed Project. The multipliers presented in this section and illustrated in <br />Table 9 quantify the marginal increase in expenditures per Person Served for each specific <br />service category. <br />EPD Solutions, Inc. May 13 2024 <br />South Coast Technology Center Fiscal Impact Analysis Report <br />15 <br />