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MLC Holdings, Inc. - 2020 E. 1st Street <br />Fiscal Impact & Economic Benefit Report <br />February 27, 2025 <br />expected from the Project. Based on information provided by the Auditor -Controller's office, the <br />City General Fund receives approximately 17.27% of the basic one percent ad valorem property <br />tax levy. Based on the projected assessed value for the Project, less the existing assessed value of <br />the vacant office building, additional property tax revenues to the City's General Fund are <br />projected to be $107,512 annually at build -out. See Tables 2A and 3A of Appendix A for details <br />of the property tax calculations. <br />Prop Tax -In Lieu VLF <br />Historically, approximately three -fourths of Vehicle License Fee (VLF) revenue was allocated to <br />cities and counties as general-purpose funding. Beginning in 1998-99, the State reduced the VLF <br />payment required from vehicle owners. However, the State made up the revenue impact of the <br />VLF rate reductions with State General Fund revenue (the "VLF Backfill"). The VLF Backfill <br />was eliminated in the 2004-05 State Budget. In that year, the VLF Backfill to cities and counties <br />was permanently replaced with an equivalent increase in property tax revenues (Property Tax In <br />Lieu of VLF). This increase was funded by decreases in property tax revenues allocated to <br />schools and community colleges. <br />Annual Property Taxes in Lieu of VLF are estimated to be $84,328 for the Project as shown in <br />Table 2A. Revenues from Property Taxes In Lieu of VLF are estimated at .13547% of the <br />increase in assessed valuation of $62,246,082. This percentage is based on the total Property Tax <br />In Lieu of VLF in the Adopted Budget of $44,009,010 divided by the total City assessed <br />valuation of $32,485,033,990. <br />Utility User Taxes <br />Utility User Taxes are the taxes imposed by the City on the consumption of utility services, such <br />as cell phones, cable television, electricity, gas, sanitation, sewer, telephone, and water. The <br />Project is estimated to generate additional revenues of $29,216, based on the Per Capita Method, <br />as shown in Table 5A of Appendix A. <br />Documentary Stamp Tax <br />Property transfer tax applies to all sales of real property at a rate of $1.10 per $1,000 of sale or <br />resale value, excluding assumed liens or encumbrances. The City receives 50% of the <br />51Page <br />i� ZIMMERMAN GROUP <br />