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Home My WebLink AboutANNEXATIONS INDIAN RIDGE NO 20 FILE 2 1991 South Coast AIR QUALITY MANAGEMENT DISTRICT 9150 FLAIR DRIVE, EL MONTE, CA 91731 (818) 572-6200 July 24, 1991 Mr. Stephen Smith City 0f Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 RE: LACFO 91-18-4 ANNEXATION NO. 20 O THE CITY OF PALM DESERT Thank you for contacting the South Coast Air Quality Management District (District) regarding the proposed annexation to the City of Palm Desert. The District has no comments regarding the annexation at this time. The Coachella Valley has been designated by the Environmental Protection Agency (EPA) as a Group I nonattainment area. This means the valley has a 95 ercent chance of violating federal health-based standards for particulate matter (PM10) The Coachella Valley State Implementation Plan for PM10 outlines how the federal standards for PM10 will be achieved and maintained. In addition, the Coachella Valley is subject to all rules and regulations promulgated by the District. The City should contact the District regarding future development in the annexation area which may have the potential to degrade the ambient air quality. The District appreciates the opportunity to comment on the proposed annexation. If you have any questions regarding our comments, please contact me at (818) 307- 4507 Sincerely, ^/ n �1 K Connie A. Day t� Program Supervisor ; 2 z ■ ■ ) � § ` B }& ' ® 2 a 3 a G2 } } \ƒ \ § \ # CL CD /\\ ` c § ° § ® - _ ® \ƒ / CD 0 Co \\ /ID a � g \ �0 _\CD r1a\\ E) po 2 \ = m 2 / � �\ }\ \ \ r / \ CD � E } � _ -� ECD .0} � 2 ; { __ o� o _ § so \ & \ (\ 0 \ CD CD m m = > ■B 0 § ® 0 CD a MO § 7 ; ;_ §k \ ) 2 ko OR _ _ § § M C:) § �ONFiTIifiN fi ASSOCIATES, INC. Steve Smith City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 Re: Fiscal Impact Report Indian Ridge Country Club Annexation Dear Steve: Enclosed is the completed Fiscal Impact Report regarding the proposed annexation of the planned residential development, Indian Ridge Country Club. I believe it is complete and accurate, but if you or LAFCO require a change, please let me know and I will attend to it as quickly as possible. Thank-you for the opportunity to serve your needs, with particular appreciation to Paul Gibson for his assistance in the preparation of this report. I look forward to working with you again. S+Joathan, S CPA cc: Paul Gibson 74.900 Highway 111, Saito 224 ■ Indian Walls, CO 92t10 ■ Ph: 619/341-6656 ■ Fmc 619/346.8571 ti �ONjgTlifiN £r IFISSOCIRTES, INC. IRECEiVED SEP 2 8 1990 E .OEVEEOIMEDE DESERT' MENi NNfM1 Of POIM DESERT CITY OF PALM DESERT STATEMENT DATE: 09/30/90 ATTN: STEVE SMITH ACCOUNT NUMBER: CITYOFPD 73-510 FRED WARING DRIVE PALM DESERT, CA 92260 STATEMENT OF ACCOUNT -------------------- -------------------- CHARGES PAYMENTS BALANCE 09/01/90 OPENING BALANCE $ 1, 537 . 50 09/13/90 PAYMENT - THANK YOU 1, 537. 50 0. 00 09/30/90 1038 INVOICE NO. 1038 9, 300. 00 9, 300.00 AMOUNT DUE: $ 9, 300.00 CURRENT 9, 300. 00 31 - 60 DAYS 0. 00 61 - 90 DAYS 0.00 90 + DAYS 0. 00 TOTAL DUE 9, 300.00 74-900 Highway 111, Saito 224 ■ Indian Walls, CA 92210 ■ Ph: 619/341-6656 ■ FcDc 6191346.8573 ti JONATHAN Fj OSSOCIATES, INC. RECEIVED SEP 28 1990 MnDEVELOPMENT OEPARTMENE P OF PALM DESERT CITY OF PALM DESERT STATEMENT DATE: 09/30/90 ATTN: STEVE SMITH ACCOUNT NUMBER: CITYOFPD 73-510 FRED WARING DRIVE PALM DESERT, CA 92260 STATEMENT OF ACCOUNT -------------------- -------------------- CHARGES PAYMENTS BALANCE 09/01/90 OPENING BALANCE $ 1, 537 .50 09/13/90 PAYMENT - THANK YOU 1, 537 . 50 0. 00 09/30/90 1038 INVOICE NO. 1038 9, 300. 00 9, 300. 00 AMOUNT DUE: $ 9, 300. 00 CURRENT 9, 300. 00 31 - 60 DAYS 0. 00 61 - 90 DAYS 0. 00 90 + DAYS 0. 00 TOTAL DUE 9, 300. 00 74-900 Hlghway 111, Suite 224 ■ Indian Wails, CA 92210 ■ Ph: 619/341-6656 ■ Faic 619/346-8573 �ONfITHOM 6 RSSOCIOTES, INC. September 13, 1990 Paul Gibson City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 Re: Indian Ridge Country Club Annexation Dear Paul: Enclosed is my preliminary analysis of the proposed annexation of Indian Ridge Country Club, including an explanation of the assumptions used. As we discussed, these are very preliminary, but it is probably more efficient for you and others to review it prior to my proceeding much further. So please excuse any errors you might find. In fact, I would appreciate you bringing them to my attention. I also realize you may have changes, minor or otherwise, you might want for a variety of reasons. No problem, just let me know. Sunrise has expressed to me their desire for completion of the FIR as soon as possible, so I will look forward to hearing from you soon. And again, thank-you so much for your help. Sincerely, Sabby Jon an, CPA 74-900 Highway 111. Salta 224 ■ Indian Walls, CA 92210 ■ Ph: 619/341-6656 ■ I°= 619/346.8573 CITY OF PALM DESERT INDIAN RIDGE COUNTRY CLUB ANNEXATION SPEC REV FUND (28.3%) GENERAL FUND 1 .7% ) 910 COST SUMMARY CRY OF PALM DESERT INDIAN RIDGE COUNTRY CLUB ANNEXATION SCHEDULE 2-PUBLIC COST SUMMARY 1991 1992 1993 1S94 1995 1998 TOTAL GENERAL FUND- SCHEDULE 2A 114241 241,175 368.109 4MO43 621,977 648,887 Z489,431 SPECIAL REVENUE FUND SCHEDULE 2B 45,157 M331 145,508 195,680 245,855 256,492 984,021 TOTAL REVENUE 159,398 336.506 513.615 690,723 $67.832 SM379 3,47'4452 CRY OF PALM DESERT INDUW RIDGE COUNTRY CLUB ANNEXATION SCHEDULE 2A-GENERAL FUND EXPENDITURES t s91 1992 1993 1994 1995 1996 CUMULATIVE POPULATION SEASONALLY ADJUSTED 302 638 974 1,310 1,646 1,718 PER CAPITA EXPEND 1991 1992 1993 1994 1995 1996 GENERAL GOV'T EXPENDITURES (REDUCED BY FIXED COSTS) 117.38 36.496 74,935 114,375 153.816 193,254 201,616 POLICE 11&75 35,910 75,810 115,710 155,610 195,510 2203,969 BUILDING&SAFETY 55.07 1Q653 35,157 n660 72.164 90,667 94.SW PUBLIC WORKS ADMINISTRATION 44.92 13,684 2&677 43,770 58.863 73,956 77,156 PROPERTY MAINTENANCE 16.01 4,841 10,221 15.600 20,980 M369 27,489 PARK MAINTENANCE 25.65 7,757 16,375 24,993 33,612 42,230 44,067 TOTAL GENERAL FUND EXPENDITURES 114,241 241,175 368,10s 495,043 621,977 W887 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- CITY OF PALM DESERT INDIAN RIDGE COUNTRY CLUB ANNEXATION SCHEDULE 2B-SPECIAL REVENUE FUND EXPENDITURES 1991 1992 1993 1994 1995 1996 CUMULATIVE UNITS 225 475 70 975 1,20 1,278 CUMUTAINE POPULATION SEASONALLY ADJUSTED 302 838 974 1,310 1,646 1,718 PROP A EXPENDITURE (964.90 PER DWELLING) 14,603 =828 47,053 63,278 79,503 82,942 PER CAPITA EXPEND TRAFFIC SAFETY/MEAS A 3297 9,879 20,857 31,834 42811 53,788 56.115 GAS TAXES 7.10 2,147 4,533 6,918 9,304 11,689 12,195 NEW CONSTRUCTION 4262 1Z898 27,209 41,529 55.849 70.170 7A205 DRAINAGE FACILITIES 13.32 4.028 6,503 12979 17.455 21.930 22879 FIRE FACILITIES 5.33 1,912 A403 5,194 8,984 8.775 9,155 TOTAL SPECIAL REVENUE EXPENDITURES 45.157 . A331 145.508 195,680 245,SW 2K492 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- CITY OF PALM DESERT INDIAN RIDGE • CLUB ANNEXATION) 2- \ �\ ¢�\ r 1.8-1 1.2-1 0- 1991 1992 1993 1994 1995 1996 REVENUE VS • COMPARISON ANNUAL REVENUE ANNUAL COST CITY OF PALM DESERT INDIAN RIDGE COUNTRY CLUB ANNEXATION PUBLIC REVENUE TO PUBLIC COST COMPARISON 1991 1892 1993 1894 1995 1996 TOTAL PUBLIC REVENUE SCHEDULE 1 1,196.088 1,461,499 1,624,472 1,784756 1,934,332 1,043,404 9.039.652 PUBLIC COST SCHEDULE 2 159,398 336,506 613.615 SM723 867,832 905,379 3,473,452 NET ANNUAL IMPACT 1,035,690 1,124,993 1,110,S57 1,090,033 1,06Q500 138,026 6,566,099 CUMULATIVE IMPACT 1.035,690 2,160,683 3,271,541 4,361,674 5,42&074 5,566,099 CITY OF PALM DESERT INDIAN RIDGE COUNTRY CLUB ANNEXATION PROP TAX (12.1%) SPECIAL REV (36.30%) SALES TAX (6.8%) GEN FUND (44.8%) REVENUE SUMMARY CITY OF PALM DESERT INDIAN RIDGE COUNTRY CLUB ANNEXATION SCHEDULE 1 - PUBLIC REVENUE SUMMARY 1991 1992 19W 1994 1995 1998 TOTAL PROPERTY TAX REVENUE- SCHEDULE 1A 41,198 87,900 135,528 184,074 233,543 248,297 930,507 RETAIL SALES TAX REVENUE- . SCHEDULE 18 20,377 49,949 80,016 106,073 132,180 140,593 529,189 OTHER GENERAL FUND REVENUE- SCHEDULEIC 597.014 704281 761.609 816,336 897,384 399.103 4,141,727 SPECIAL REVENUE- SCHEDULE 10 536,501 SM369 647,321 674,273 701,225 258,441 3,438.129 TOTAL REVENUE 1,195,088 -_ 1,461,499 1,624,472 1,7K756 1,934,332 1,043,404 _ 9,039,552 CITY OF PALM DESERT MAN RIDGE COUNTRY CLUB ANNEXATION SCHEDULE IA-PROPERTY TAX REVENUE 1991 1992 1993 1994 1995 1998 ADDED VALUE(WWe] NEW SALES $73.099 $81,405 $81,405 $81,406 $81,405 $18,114 REASSESSMENT 1,462 3,090 4,710 A346 7,974 73,099 82887 84,495 M123 $7,751 26,088 LESS: HOMEOWNER EXEMPTION (315) (350) (350) (350) (350) p4) NET ADDED VALUE CURRENT YEAR 72,784 82517 K145 M773 97,401 28.014 PRIOR YEAR BALANCE 72.784 1 K301 239,446 325,219 412,621 CUMULATIVE ASSESSED VALUE 72,784 1M301 239,448 325,219 41 AGM 438635 PROPERTY TAX REVENUE SHARING RATIO 0.0566% 0.0566% 0.0666% 0.0566% 0.0566% 0.0566% NET PROPERTY TAX REVENUE TO CITY OF PALM DESERT 41,196 87,900 135.526 1 K074 233.543 246,267 ------- ------- ------- ------- ------- ------- CRY OF PALM DESERT PIDWN RIDGE COUNTRY CLUB A DFAnON SCHEDULE 18-RETAIL SALES TAX REVENUE AVERAGE EXPENDITURE ON RETAIL SALES AVERAGE HOUSEHOLD INCOME ADJUSTED FOR SEASONALITY OCOTILLO M029 OCOTILLO 8,254 PALO VERDE 91,666 PALO VERDE 13,783 SMOKE TREE 125,143 SMOKE TREE 18,771 MESQUITE 17&286 MESQUITE 26,743 CUMULATIVE UNIT SALES 1991 1992 1993 1994 1995 199E OCOTILLO 44 92 140 168 236 2" PALO VERDE 69 146 223 300 377 392 SMOKE TREE 69 146 223 300 377 396 MESQUITE 43 91 139 167 235 247 RETAIL SALES GENERATED[$000's] 1991 1992 1993 1994 1995 1996 OCOTILLO 363 759 1,156 1,552 119" 2,014 PALO VERDE 951 2,012 3,074 4,135 5�196 4403 SMOKE TREE 1,295 2741 4,156 5,631 7,077 7,415 MESQUITE 1,150 2434 3,717 51001 8.285 &605 TOTAL RETAL SALES GENERATED 3,396 7,187 10.977 14,767 16,558 19,423 ------- ------- ------- ------- ------- ------- SALES TAX REVENUE FROM RESIDENTS-1% SALES 33.982 71,865 109,789 147,572 1 M575 194,231 PORTION GENERATED VA8THN CRY 0.60 0.60 0.60 0.60 0.60 0.60 20,377 4A119 66m 88,603 111,345 116,538 PROJECTED FROM CLUB 0 13,660 2&310 34.940 41,970 4&110 PORTION TO NON-HOMEOWNERS 0.50 0.50 0.50 0.50 QSO 0.50 0 6.630 14,155 17,470 20.635 24,055 TOTAL SALES TAX REVENUE TO CITY OF PALM DESERT 20.377 49,949 60.016 1 M073 132180 140,593 CITY OF PALM DESERT INDIAN RIDGE COUNTRY CLUB ANNEXATION SCHEDULE 1 C-OTHER GENERAL FUND REVENUES 1991 1992 1993 1994 19% 1998 CUMULATIVE HOUSEHOLDS 225 475 725 975 1,225 1,278 CUMULATIVE POPULATION SEASONALLY ADJUSTED 302 638 974 1,310 1.646 1,718 ADDITIONAL SQUARE FOOTAGE PER YEAR(000'ej 551 612 612 612 612 130 REV PER REVENUES CAPITA 1" 1992 1993 1994 1995 1896 BUSINESS LICENSE TAX 16.82 5,691 12,015 18,338 24,662 30,985 32,328 FRANCHISES 23.08 6,979 14,734 2?489 30.244 37,999 39,643 STATE SUBVENTIONS 37.17 11,240 23,729 36,218 46.708 61,197 63,844 23,911 M478 77,046 IMS13 130.181 135,813 PROJECTED GROSS RENTS($000,31 0 199 596 948 1,254 11560 TRANSIENT OCCUPANCY TAX RATE 0.08 0.08 0.08 0.08 0.08 Q0S ; TOTAL TOT REVENUES p 1 a chin 47p 1 0�= PROPERTY TRANSFERS($000'ej 73.099 81,405 81,405 81,405 81,405 1&114 PROPERTY TRANSFER TAX RATE 0.00055 0.00055 0.00055 0.00055 0.00055 Q00055 TOTAL TRANSFER TAX REVENUE 406204 44,773 44,773 44,773 44,773 9,969 VALUATION PERMITS/FEES[$OOCe] FACTOR LICENSE&PERMIT FEES 0.0070 289 321 321 321 321 68 FEES FOR SERVICES 0,0059 2" 271 271 271 271 57 TOTAL PERMITIFEE REVENUE 53ZSW 699_110 592,110 59Q110 592,110 125,527 TOTAL OTHER FUND REVENUES 597,014 703,281 761,609 816.336 W7,384 39Q103 CRY OF PALM DESERT INDIAN RIDGE COUNTRY CLUB ANNEXATION SCHEDULE 1 D-SPECIAL REVENUE 1991 1992 1993 1994 1995 1996 CUMUTATNE POPULATION SEASONALLY ADJUSTED 302 638 974 1,310 1,646 1,718 REVENUE PER CAPITA TRAFFIC SAFETY/MEJIS A 34,46 10,418 21,993 3A568 46,143 56,718 59,172 GAS TAXES 10.05 3.039 6,416 %793 13,170 14546 17,262 13,457 28,409 43,361 M313 73,265 78,435 ANNUAL PROPERTY VALUATION(Soo0's( 41,310 45,900 45,900 46,900 45.900 9,731 REVENUE FACTOR NEW CONSTRUCTION TAX 0.0080 247,660 275,400 =400 M400 275.400 M386 DRAINAGE FAC FEE OA064 264,384 293,760 29.3,760 293760 293,760 SZ277 512,244 569,16o 569,100 569,160 569,160 120,662 CUMULATNE UNITS 225 475 725 976 1,225 1,278 ASSESSED RATE PROP A FIRE TAX REV 48.00 10,800 22,600 34,800 46,800 58,900 61.344 TOTAL SPECIAL REVENUE 53Q501 SM368 647,321 674,273 701,225 258,441 CITY OF PALM DESERT NDIAN RIDGE COUNTRY CLUB ANNEXATION BASE DATA UNIT SALES 1 w 1 S92 1893 1994 1995 1998 OCOTLLLO 44 48 48 48 48 s PALO VERDE 69 77 77 77 77 15 SMOKE TREE 6s 77 77 77 77 Is MESQUITE 43 48 48 46 48 12 ANNUAL UNIT SALES 225 250 250 250 250 53 CUMULATNE UNIT SALES 225 475 725 975 1,225 1,278 AVERAGE SALES VALUE[$000's] VALUE 1991 1992 1953 1994 19W 1998 OCOTILLO 160.50 7,062 7,704 7,704 7,704 7,704 1,284 PALO VERDE 26s00 18,492 20,636 2Q636 20.636 206636 4,02D SMOKE TREE 366.00 25.185 28,105 2s,106 28,105 29,105 A670 MESQUITE 52D.00 22,360 24,Ss0 21060 24,960 24.960 6,240 ANNUAL SALES[$000el 73,059 81,405 81,405 81,405 81,405 16,114 CUMULATNE SALES[$00dsl 73,099 1K604 235,SW 317,314 3SA719 416,833 CITY OF PALM DESERT INDIAN RIDGE COUNTRY CLUB ANNEXATION ASSUMPTIONS SCHEDULE lA New Sales: Based on projected sales and selling prices provided by Sunrise Company. Reassessment: Calculated as 2% of cumulative assessed value from prior year. Homeowner Exemption: Calculated as $7, 000 per permanent dwelling, which are projected to be 20% of total. Property Tax Revenue Sharing Ratio: Calculated as 25% of County's share of 0. 2263%. SCHEDULE 1B Average Household Income: Derived by taking 80% of average selling price for each unit type, calculating mortgage payment, and dividing by 28%, the maximum mortgage payment to income ratio permitted by FHA. Average Expenditure on Retail Sales: It is estimated that 25% of income is spent on the purchase of items subject to retail sales tax. Based on Sunrise Company's prior experience with similar developments, it is estimated that 80% of home sales will be to seasonal occupants who will live, on average, six months per year in the desert. Retail sales have been adjusted accordingly. Sales Tax Revenue Generated by Club: Projected taxable sales were provided by Sunrise Company. It is estimated that 50% of taxable club sales will be to non-homeowners. Sales Tax Generated Within City: It is estimated that 60% of homeowners' purchases will occur at establishments within city limits. SCHEDULE 1C Cumulative Population: Sunrise Company projects average household population of 2.24. Seasonally adjusted, this is 1. 34 per household. Additional Sauare Footage: This is based on average unit size of 2 ,448 square feet. Revenue Per Capita: Revenue per capita for Business License Tax and Franchises is based on estimated revenues for 1990/1991, and seasonally adjusted population for City of Palm Desert of 28, 159. State Subventions factor is per the League of California Cities Budget Bulletin for 1990/1991, issued April, 1990. Projected Gross Rents: The projected rents subject to the Transient Occupancy Tax were provided by Sunrise Company. Property Transfers: Only initial transfers from developer to original buyers are considered. Subsequent resales are not included. The applicable rate is $1. 10 per $1, 000, of which the City of Palm Desert receives 50%, or $0.55 per $1, 000. Permits and Fees: the valuation factors are applied to valuation calculated as $75 per square foot for new construction projected in each year. SCHEDULE ID Traffic Safety/Measure A and Gas Taxes: Revenue per capita is based on estimated revenue for 1990/1991 applied to seasonally adjusted population. New Construction Tax and Drainage Facilities Fee: Factor is applied to valuation based on $75 per square foot for new construction. Prop A Fire Tax Revenue: Factor of $48 is applied to cumulative units. SCHEDULE 2A General Government Expenditures: Total general government expenditures estimated for 1990/1991, reduced by non-variable items. Police Building & Safety, and Public Works: These factors are calculated based on estimated expenditures for 1990/1991, applied to seasonally adjusted population of 28, 159 . SCHEDULE 2B Per Capita Expenditures: These factors are calculated using estimated expenditures for 1990/1991, applied to seasonally adjusted population of 28, 159. A RECEIVED SEP 2 8 1990 COMmOmRPR OEVELOPOW OEPARTMERf Clp OF PALM OESERf i ID }t f FISCAL IMPACT REPORT CITY OF PALM DESERT PROPOSED ANNEXATION OF INDIAN RIDGE COUNTRY CLUB .y. A Prepared by Sabby Jonathan, CPA September 26, 1990 ti, TABLE OF CONTENTS PROJECT DESCRIPTION . . . . . . . . . . . . . . . . . . . 1 CITY OF PALM DESERT Impact on City of Palm Desert . . . . . . . . . . . 4 Public Revenue . . . . . . . . . . . . . . . . . . 4 Public Cost . . . . . . . . . . . . . . . . . . . . 5 COUNTY OF RIVERSIDE Impact on County of Riverside . . . . . . . . . . . 19 Public Revenue . . . . . . . . . . . . . . . . . . . 19 Public Cost . . . . . . . . . . . . . . . . . . . . 19 OTHER AGENCIES Impact on Other Agencies . . . . . . . . . . . . . . 24 ASSUMPTIONS . . . . . . . . . . . . . . . . . . . . . . . 27 1 J PROJECT DESCRIPTION The proposed annexation encompasses approximately 635 acres comprised of the following parcels in the County of Riverside: PARCEL ACRES 632020013-3 76.46 632020006-7 80. 42 632020009-0 59 . 33 632020016-6 99.81 632020010-0 59 . 33 632020008-9 98 . 67 632020007-8 160. 85 634 . 87 Present zoning by the County of Riverside is R-1-12 , 000 (one residence per 12 , 000 square feet) . Zoning approved by City of Palm Desert is PR-5 (planned residential, five units per acre) . The property boundaries are Country Club Drive to the north, Oasis Club Drive to the east, 42nd Avenue to the south, and E1 Dorado Drive to the west. Adjacent uses are Palm Valley Country Club to the north, Palm Desert Resort Country Club to the .east, Oasis Country Club to the south, and The Lakes Country Club to the west. The entire property is owned by Sunrise Company, a developer with several residential projects completed in the Coachella Valley. Corporate offices are located in Palm Desert. The proposed development, Indian Ridge Country Club, consists of 1, 278 units situated around two 18 hole championship golf courses, with a 105, 000 square foot clubhouse. Amenities will include a restaurant and bar, pro shop, health club facilities, two main swimming pools, 14 tennis courts, 2 croquet courts, 2 paddle tennis courts, and pools and jacuzzis throughout the residential areas. Project buildout is projected to be six years, 1991 through 1996. Final density will be 2 units to the acre, comprised of a mix of fourplexes, duplexes, and single family detached homes. All streets will be within the walled, gated Page 1 - community, and will be privately maintained. Unit sizes will vary from 1, 315 square feet to 3 , 690 square feet. Sales values will vary by type with the following ranges anticipated: Ocotillo Fourplex $132 , 000 - $189, 000 Palo Verde Duplex $230, 000 - $306, 000 Smoke Tree Detached SFR $312 , 000 - $418 , 000 Mesquite Detached SFR $479, 000 - $561, 000 Average occupancy is anticipated to be 2 . 24 per dwelling. It is projected that 80% of dwellings will be occupied by part- time residents who will spend six months per year in the desert. Page 2 - j <4 Ir J\ W�uim4��1�1 LX bit r7 T-r-I I- MiZo r7l 6 c F r T ri I-' U-1-1 Ll F-I cyl r-r a:UNITS YYUTIl CW0.3C uw YA&ln Ir nn 111I.L en 1 . ..... INa ere Page 3 IMPACT ON CITY OF PALM DESERT The fiscal impact of annexation on the City of Palm Desert has been analyzed, and is presented in the schedules which follow. Net annual impact projected is: 1991 $ 953 , 150 1992 $1, 033 ,780 1993 $ 998, 471 1994 $ 958, 873 1995 $ 919 , 020 1996 $ 37, 738 Cumulative fiscal impact for the six year period is $4, 901, 032 . It should be noted that developer fee revenue, comprised of Permits & Fees (Schedule 1C) and New Construction Tax (Schedule 1D) , result from new construction only. Therefore these revenues, totalling $4, 278 , 284 during the buildout period, will not continue after 1996 . It is expected that normal revenues subsequent to 1996 will adequately meet the associated recurring expenses. PUBLIC REVENUE The public revenue analysis is presented in Schedule 1, and supporting Schedules lA through 1D. Property tax revenue, detailed in Schedule 1A, is based on the additional assessed valuation that will occur as units are sold. Additionally, cumulative valuations from the prior year receive a 2 . 00% annual reassessment, pursuant to the provisions of Proposition 13 . In the interest of conservatism, no increase is made for additional valuation which will result from subsequent resales at higher prices. To arrive at taxable assessed value, the homeowner ' s exemption of $7, 000 per unit is allowed for permanent residents (20% of units sold) . A property tax revenue factor of 0. 0566% is utilized. This is 25% of the property tax revenue which represents the County of Riverside' s share, in accordance with the property tax revenue exchange agreement between the County of - Page 4 - Riverside and the City of Palm Desert, dated September 24 , 1981. Retail sales tax revenue to the City of Palm Desert is analyzed in Schedule 1B. The method for projecting average household income and average expenditure on retail sales is explained in the Assumptions section of this report. Revenues from other General Fund sources are calculated in Schedule 1C. Per capita factors are calculated using the City of Palm Desert Financial Plan for the fiscal years 1989/1990 and 1990/1991. Permanent population of 20, 659 is provided by California Department of Finance as of January 1, 1990. It is estimated that the seasonal population is increased by 15, 000 for an average of six months. This produces a seasonally adjusted population for the City of Palm Desert of 28, 159 . Special Revenue is analyzed in Schedule 1D. Underlying assumptions are explained in the Assumptions section. PUBLIC COST The public cost analysis is presented in Schedule 2 , and supporting Schedules 2A and 2B. The per capita factors presented in Schedules 2A and 2B are computed using estimated costs for 1990/1991, as presented in the City of Palm Desert Financial Plan for Fiscal Year 1990/1991. These amounts are applied to the seasonally adjusted population figure of 28, 159 . In Schedule 2A, only those general government expenditures that would increase as a result of annexation of the proposed development have been incorporated into the calculation of expenditure factors. Accordingly, fixed costs not expected to increase have "been omitted. In Schedule 2B, only the relevant and material Special Fund expenditures have been considered. Page 5 - CITY OF PALM DESERT INDIAN RIDGE COUNTRY CLUB ANNEXATION IMPACT ON CITY OF PALM DESERT 1991 1992 1993 1994 1995 1998 TOTAL PVBUC REVENUE SCHEDULE 1 1.167,548 1,420,286 1,WZ085 1,699,596 1,838,852 953,717 8,640.084 PUBLIC COST SCHEDULE 2 214,398 38a 506 563,615 740.723 917,832 915,979 3.739,052 NET ANNUAL IMPACT M150 1,033.780 998,471 958,873 919,020 37,738 4,901,032 CUMULATIVE IMPACT 953,150 1,986,930 2,985,401 3,944,274 4,863,294 4,9M,032 Page 6 - CITY OF PALM DESERT INDIAN RIDGE COUNTRY CLUB ANNEXATION 2 _........_. ._...... ._.._................_.._............ ......... ....... ...._.... ._................_......._............ 1.8 1 .4 .......... ......................_.._.............._..... _....... _...__. ........................................................--.............. � 1.2 ................ ......._.._..............._................_........_..... ____ _ ..........._..- ..._........_...._. 0.6 0.4 0.2 -........_...._ ....... _.. _.. -.. - ._.._..- IMPEL- 0 1991 1992 1993 1994 1995 1996 IMPACT ON CITY OF PALM DESERT i ANNUAL REVENUE = ANNUAL COST Page 7 - CITY OF PALM DESERT INDIAN RIDGE COUNTRY CLUB ANNEXATION SCHEDULE 1 - PUBLIC REVENUE SUMMARY 199t 1992 1993 1994 1995 1996 TOTA PROPERTY TAX REVENUE- SCHEDULE IA 41,196 87,900 135,526 164,074 =643 248,267 930,30 RETAIL SALES TAX REVENUE- SCHEDULE 16 20.377 49,949 80,016 106,073 132,180 140,593 529,18 OTHER GENERAL FUND REVENUE- SCHEDULEIC 597,014 M668 729,822 765,776 $00,504 31 Z903 3,898,68 SPECIAL REVENUE- SCHEDULE ID 5MS61 589,769 616,721 643,673 670,625 251,963 3,281,7C TOTAL REVENUE 1,167,548 1,420,286 1,564085 1,699,596 1,836,852 953,717 8,640,08 Page 8 - CI TY OF PALM DESERT INDIAN RIDGE COUNTRY CLUB ANNEXATION 0 PROP TAX (12.7/0) SPECIAL REV (36.5/e) SALES TAX (7.2%) m _ N r.� GEN FUND (43.6%) REVENU�SUMMARY Page 9 - CRY OF PALM DESERT MAN RIDGE COUNTRY CLUB ANNEXATION SCHEDULE 1 A-PROPERTY TAX REVENUE 1991 1992 1993 19% 1995 19% ADDED VALUE(5000'el NEW SALES 973,099 $61.406 $81,406 $M,405 $81,405 $18,114 REASSESSMENT 1,492 3,090 4,718 e,318 7,974 73.099 82,867 S4,495 86,123 87,751 26.088 LESS: HOMEOWNER EXEMPTION (315) (350) (350) (360) (350) (74) NET ADDED VALUE CURRENT YEAR 72,784 saw 54,146 65.773 87,401 26.014 PRIOR YEAR BALANCE 72,784 155,301 239,446 325.219 41 Z621 CUMULATIVE ASSESSED VALUE 72,7S4 I K301 239,446 325,219 412,621 438.635 PROPERTY TAX REVENUE SHARING RATIO 0.0566% 0.0566% 0.0566% 0.0566% 0.0566% 0.0566% NET PROPERTY TAX REVENUE TO CRY OF PALM DESERT 41,196 87,900 135.528 1 S4,074 23a 543 248.267 Page 10 - CITY OF PALM DESERT INDVMI RIDGE COUNTRY CLUB ANNEXATION SCHEDULE 1 B-RETAIL SALES TAX REVENUE AVERAGE EXPENDITURE ON RETAIL SALES AVERAGE HOUSEHOLD INCOME ADJUSTED FOR SEASONALITY OCOTILLO 55,029 OCOTILLO 8,254 PALO VERDE 91,886 PALO VERDE 13,783 SMOKE TREE 125,143 SMOKE TREE 18.771 MESQUITE 178,286 MESQUITE 26.743 CUMULATIVE UNIT SALES 1991 1992 1993 19" 1996 1996 OCOTILLO 44 92 140 168 236 244 PALO VERDE 69 146 223 300 377 392 SMOKE TREE 69 146 223 300 377 395 MESQUITE 43 91 139 187 235 247 RETAIL SALES GENERATED [6000ej 1991 1992 1993 1994 1995 19% OCOTILLO 363 759 1,156 1,552 1,948 2014, PALO VERDE 951 2012 3,074 4.135 5,196 6,403 SMOKE TREE 1,295 Z741 4.186 6,831 7,077 7,415 MESQUITE 1,150 2,434 A717 5,001 6,285 6,605 TOTAL RETAIL SALES GENERATED 3,396 7,187 10,977 14,767 18,558 19,423 SALES TAX REVENUE GROSS REVENUE-1%OF SALES 33,962 71,865 109,769 147,672 IMS75 194,231 PORTION GENERATED WITHIN CITY 060 0.60 0.60 0.60 060 0.60 20,377 43,119 65,861 M603 111,345 116,538 SALES TAX PROJECTED FROM CLUB 0 13,660 28,310 34,940 41,670 48,110 PORTION FROM NON440MEOWNERS 0.50 0.50 0.50 0.50 0.50 0.50 0 6,830 14,155 17,470 20,835 24,055 TOTAL SALES TAX REVENUE TO CITY OF PALM DESERT 20,377 49,949 60,016 106,073 13ZISO 140,593 Page 11 - CITY OF PALM DESERT INDUW RIDGE COUNTRY CLUB ANNEXATION SCHEDULE IC-OTHER GENERAL FUND REVENUES 1991 1992 1993 1994 19" 1996 CUMULATIVE HOUSEHOLDS 225 475 726 97S 1,225 1,278 ______ ______ CUMULATIVE POPULATION SEASONALLY ADJUSTED 302 638 974 1,310 1.646 1,718 ------ ------ ------ ------ ------ ------ ADDITIONAL SQUARE FOOTAGE PER YEAR[OWS] - 551 612 612 612 612 130 REV PER REVENUES CAPITA 1991 199E 1993 1994 1995 1996 BUSINESS LICENSE TAX 18.82 51691 12.015 18,338 24,662 30,985 32.326 FRANCHISES 23.08 6,979 14,734 22489 30,244 37,999 39,643 STATE SUBVENTIONS 37.17 11,240 23,729 36,218 49,708 61,197 63,644 2A911 50,478 77,046 103.613 130,181 135,813 PROJECTED GROSS RENTS[$000,3] 0 66 199 316 418 520 TRANSIENT OCCUPANCY TAX RATE 0.08 0.08 0.08 0.08 0.08 0.08 TOTAL TOT REVENUES 0 5,307 15,893 26,280 3a440 41,600 PROPERTY TRANSFERS(WWSI 73,099 81,405 81,405 $1.405 81,405 18,114 PROPERTY TRANSFER TAX RATE 0.00055 0.00056 0.00055 0.00065 0.00055 0.00055 TOTAL TRANSFER TAX REVENUE 40,204 44,773 a1,773 44,773 44,773 9,963 VALUATION - PERANTSIFEES[$000'e] FACTOR UCENSE&PERMIT FEES 0.0070 289 321 321 321 321 - 68 FEES FOR SERVICES 0A059 244 271 271 271 271 57 TOTAL PERMITIFEE REVENUE 532,899 699110 592110 592110 592110 125,527 TOTAL OTHER FUND REVENUES 597,014 892668 729,822 765,776 800,504 31ZSW Page 12 - I CITY OF PALM DESERT INDVW RIDGE COUNTRY CLUB ANNEXATION SCHEDULE 1 D-SPECIAL REVENUE REVENUE PER CAPITA 1991 1992 1993 1994 1995 1996 CUMULATTVE POPULATION SEASONALLY ADJUSTED 302 638 974 1.310 1,648 1,718 TRAFFIC SAFETY/MEAS A 34.45 10,418 21.993 33.%S 45,143 K718 59,172 GAS TAXES 10.05 3,039 6,416 9,793 13070 16,546 17.262 13.457 28,409 43,361 58,313 73,265 7Q435 ANNUAL PROPERTY VALUATION�5000's� 41,310 45.900 46,900 - 45.900 45,900 9,731 DRAINAGE FAC FEE 0.0064 264,384 293,760 293,760 293,790 M760 62,277 CUMULATNE UNTS 225 475 725 975 1,225 1,278 PROP A FIRE TAX REV 48.00 10,600 22,800 34,600 48,800 58,800 61.344 ADDITIONAL SQUARE FOOTAGE PER YEAR JoWsl 551 612 02 612 612 130 NEW CONSTRUCTION TAX -Q40 220,320 244,800 244,800 244.800 244,800 51,898 TOTAL SPECIAL REVENUE 508,961 589,769 616.721 643.673 970,925 251,953 Page 13 - CITY OF PALM DESERT INMAN RIDGE COUNTRY CLUB ANNEXATION SCHEDULE 2-PUBLIC COST SUMMARY 1991 1992 1993 1994 1995 1996 TOTA- GENERAL FUND- SCHEDULE 2A 168,241 291,175 416,109 545,043 671,977 659,487 Z755,031 SPECIAL REVENUE FUND SCHEDULE 2B 45,157 95,331 145,508 195.680 245,855 259,492 964,021 TOTAL REVENUE 214,398 386.506 563.615 740.723 917,832 915.979 3,739.062 Page 14 - CITY OF PALM DESERT INDIAN RIDGE COUNTRY CLUB ANNEXATION SPEC REV FUND (26.3%)- e GENERAL FUND (73.7%) COST SUMMARY Page 15 - CITY OF PALM DESERT INDIAN RIDGE COUNTRY CLUB ANNEXATION SCHEDULE 2A-GENERAL FUND EXPENDITURES 1991 1992 1993 1994 1995 1996 CUMULATIVE POPULATION SEASONALLY ADJUSTED 302 638 974 1,310 1,646 1.718 UNITS CONSTRUCTED ANNUALLY 225 250 250 250 250 53 PER CAPITA COST 1" 1992 1993 1994 1995 19w GENERAL GOVT EXPENDITURES (REDUCED BY FIXED COSTS) 117.38 35,496 74,935 114,375 153,815 19A254 201.616 POLICE 118.76 35.910 75,810 116,710 156,610 195,510 203,969 BUILDING&SAFETY NORMAL.BURDEN 55.07 16,653 35,157 5AS60 72,164 90,667 94.SW ADDITIONAL CONSTRUCTION PERIOD BURDEN($200.00/UNIT) 55,000 50,000 50,000 50,000 50,000 10,600 PUBLIC WORKS ADMINISTRATION 44.92 13.564 28,677 43,770 58,863 73,958 77,158 PROPERTY MAINTENANCE 16.01 4,841 10,221 15,600 20,980 26,359 27,489 PARK MAINTENANCE 25.65 7,757 16,375 24,993 33,612 42,230 4g067 TOTAL GENERAL FUND EXPENDITURES 169,241 291,175 418,109 545,043 671,977 659,487 Page 16 - CITY OF PALM DESERT MAN RIDGE COUNTRY CLUB ANNEXATION SCHEDULE 2B-SPECIAL REVENUE FUND EXPENDITURES 1991 1992 1993 1994 1995 19M CUMULATIVE UNITS 225 475 725 975 1,225 1.278 CUMULATIVE POPULATION SEASONALLY ADJUSTED 302 838 974 1,310 1,w 1.718 PROP A EXPENDITURE ($"90 PER DWELLING) 14,603 30,828 47.053 83,278 79.603 82942 PER CAPITA EXPEND TRAFFIC SAFETYIMEAS A 3267 9,879 20,857 31,834 4$811 53,788 58,115 GAS TAXES 7.10 2147 4,533 6,918 9,304 11,689 12195 NEW CONSTRUCTION 4262 12888 27.209 41.529 55.849 70,170 71205 DRAINAGE FACILITIES 13.32 4,028 8.503 1PS79 17,456 21,930 22579 FIRE FACILITIES 5.33 1,612 3,403 5,194 8,984 Q775 9,155 TOTAL SPECIAL REVENUE EXPENDITURES 45,157 95,331 145.506 195,680 245,855 256,492 Page 17 - I IMPACT ON COUNTY OF RIVERSIDE The fiscal impact of annexation on the County of Riverside has been analyzed, and is presented in Schedule 3 and supporting Schedules 3A and 3B. Net annual impact projected is: 1991 $ 74 , 010 1992 $159, 062 1993 $246, 877 1994 $337, 455 1995 $430, 796 1996 $463 , 379 Cumulative fiscal impact for the six year period analyzed is $1, 711, 580. PUBLIC REVENUE The public revenue analysis is presented in Schedule 3A. There are two sources of revenue to the county; property tax assessments and retail sales tax collected. Underlying assumptions are explained in the Assumptions section which appears later in this report. PUBLIC COST The administrative cost factor was calculated using the County of Riverside 1989/1990 Proposed Budget. Only relevant costs were included. As a result of annexation, responsibility for certain services would shift from the County of Riverside to the City of Palm Desert. These costs have not been included. Certain other services would continue to be provided by the County of Riverside. These include general government administration, court administration, public health and sanitation, and public welfare. These costs have been included in calculating the administrative cost factor. Page 18 - CITY OF PALM DESERT INDIAN RIDGE COUNTRY CLUB ANNEXATION SCHEDULE 3 - IMPACT ON COUNTY OF RIVERSIDE 1991 1992 1993 1994 19% 1996 TOTAL PUBLIC REVENUE SCHEDULE 3A 128,609 274,328 422805 574.048 728,053 773.498 2.901,338 PUBUC COST SCHEDULE 36 54,598 115,263 175.928 236.593 297,258 310,118 1,189.758 NET ANNUAL IMPACT 74,010 159,062 246,877 337,455 430,796 463,379 1,711,580 CUMULATIVE IMPACT 74,010 233,073 479,950 817,405 1,248,201 1,711.580 Page 19 - CITY OF PALM DESERT INDIAN RIDGE COUNTRY CLUB ANNEXATION s00 700 ........................................._..............._....._.................._................................_...................._..._................... ................. .................................. 600 ........_........._._........................................... .......... ..............._.................... . ... ... ......... ...........I.-._.................. a500 ...._....__.........................................._.................................. .................. ....... ................... ...._.._..-.. ......_...............I......._..... c m 4� ....._._._....._.._....._.....__..............._...._........_. - .._._.......... .... 7 t 300 -._..--------._..._...._......._........._.._....._..........._.------.._.. _.. _.. _._.. 200 .........._.._......................................_.... ........... .. ................ -...._.. C 0 1991 1992 1993 1994 1995 1996 IMPACT ON COUNTY OF RIVERSIDE ® ANNUAL REVENUE ANNUAL COST Page 20 - CRY OF PALM DESERT INDL4N RIDGE COUNTRY CLUB ANNEXATION SCHEDULE 3A-REVENUE TO COUNTY OF RIVERSIDE PROPERTY TAX REVENUE 1991 1992 1993 1994 1995 19" CUMULATIVE ASSESSED VALUE[L000,a) 7z784 155,301 239,446 325.219 412,621 438,635 COUNTY OF RIVERSIDE - PORTION 0.2263 0.2263 0.22W 0.2263 0.2283 0.2293 164,710 351,44E S41,868 736,971 933,760 SS2,630 LESS: PORTION TO CITY OF PALM DESERT(25.00%) 41,196 87,900 135,526 184.074 233543 248,267 123,514 26354E 406,340 551,897 70007 744,363 RETAIL SALES TAX REVENUE GROSS REVENUE GENERATED (FROM SCHEDULE IS) 33,962 71,865 109,769 147,672 IM575 194,231 PORTION GENERATED IN COUNTY OF RIVERSIDE 15% 15% 15% 15% 15% 13% 5,094 10,780 16,465 22,151 27,836 29,135 TOTAL REVENUE TO COUNTY OF RIVERSIDE 128,609 274,326 422805 57d,048 728,063 773,498 Page 21 - CITY OF PALM DESERT INDVW RIDGE COUNTRY CLUB ANNEXATION SCHEDULE 38-COST TO COUNTY OF RIVERSIDE 1991 1992 1993 1994 1996 1996 CUMULATIVE POPULATION SEASONALLY ADJUSTED 302 638 974 1,310 1,646 1,718 ADMINISTRATIVE COST PER CAPITA FACTOR 180.55 180.55 180,55 180.55 180.55 180.55 TOTAL COST TO BE INCURRED BY COUNTY OF RIVERSIDE 54,5% 115,263 175.925 236,593 297,256 310.118 Page 22 - IMPACT ON OTHER AGENCIES The fiscal impact of annexation on other affected agencies has been analyzed and is presented in Schedule 4 . It has been determined that the other affected agencies are the Structural Fire Protection Agency and the County Free Library Agency. Net annual impact on Structural Fire Protection is: 1991 $ 15, 573 1992 $ 33 , 876 1993 $ 53 , 167 1994 $ 73 , 447 1995 $ 94 , 714 1996 $103 , 766 Cumulative impact for the six years is $374 , 544 . The cost factor was calculated using the Cove Commission' s 1990/1991 budget, applied to households serviced in the City of Palm Desert. Net annual impact on County Free Library is: 1991 $ 16, 098 1992 $ 34 , 451 1993 $ 53 , 265 1994 $ 72 , 542 1995 $ 92 , 280 1996 $ 98 , 587 Cumulative impact for the six years is $367, 223 . The cost factor was calculated using actual operating cost of the Palm Desert Library for 1989/1990, applied to seasonal population of 28, 159 . - Page 23 - CITY OF PALM DESERT INDIAN RIDGE COUNTRY CLUB ANNEXATION SCHEDULE 4 - IMPACT ON OTHER AGENCIES 1991 1992 1993 1994 1995 1998 CUMULATIVE HOUSEHOLDS 226 475 725 975 1225 1279 CUMULATIVE POPULATION SEASONALLY ADJUSTED 302 638 974 1310 1646 1718 CUMULATIVE ASSESSED VALUE[SOOOA] 72754 1 K301 239,446 325.219 412.60 438,635 STRUCTURAL FIRE PROTECTION FACTOR 1991 1992 1993 1994 1995 1996 TOTAL REVENUE,BASED ON ASSESSED VALUE 0.0607 44,180 94,268 145,344 197,408 250,461 266,251 997.911 COST,BASED ON PER DWELLING FACTOR 127.14 28,607 60,392 92177 123,962 155,747 162485 623,367 NET ANNUAL IMPACT =_= 15,573 =_=33,876 =_=53,167 =_=73,"7 ===96714 == 103.766 _- 374,544 CUMULATIVE IMPACT 15,573 49,450 IMS17 176,063 270.778 374,544 COUNTY FREE LIBRARY FACTOR 1991 1992 1993 1"4 1995 19M TOTAL REVENUE.BASED ON ASSESSED VALUE 0.0284 20.640 44.040 67,901 M224 117,009 124,386 466,199 COST,BASED ON PER CAPITA FACTOR 1502 4,542 9.589 14,635 19,682 24,729 25,799 98,076 NET ANNUAL IMPACT 16,098 34,451 53,265 7ZS42 92280 98,587 367,223 CUMULATIVE IMPACT 16,098 50,548 IOa814 176,356 268,636 367,223 Page 24 - -44 CITY OF PALM DESERT COUNTRYINDIAN RIDGE • . . ( 250 I . . • \ ..; • sTRUCTURAL FIRE\ \ } It loo 50 • • \� ANNUAL REVENUE W ANNUAL • ST CITY OF DESERT COINDIAN RIDGE 140 .. • : , • � 20 ... ` CITY OF PALM DESERT INDVW RIDGE COUNTRY CLUB ANNEXATION BASE DATA UNIT SALES 1991 1992 1993 1994 = 1995 = 19% OCOTILLO 44 48 48 48 48 6 PALO VERDE 69 77 77 77 77 15 SMOKE TREE 69 77 77 77 77 18 MESQUITE 43 48 48 48 48 12 ANNUAL UNIT SALES 2' 250 250 250 250 53 CUMULATIVE UNIT SALES 225 475 725 975 1,225 1,278 AVERAGE 1995 1996 rq l VALUE 1991 1992 1993oco, _ t994 160.50 7,062 7,704 7,704 7,704 7,704 1,294 4,020 268.00 18.492 20.636 20,636 20,636 20,636395.00 25,185 28.105 28,105 28,105 M105 6.570 520.00 22360 24,960 24,960 24,960 24,960 6,240 73,099 81,405 81,405 81,405 81,405 18,114 ANNUAL SALES[5o00b] CUMULATIVE SALES[%Wol 73,099 154.504 235,909 317,314 - 396,719 _- 416,833 Page 26 - CITY OF PALM DESERT INDIAN RIDGE COUNTRY CLUB ANNEXATION ASSUMPTIONS SCHEDULE lA New Sales : Based on projected sales and selling prices provided by Sunrise Company. Reassessment: Calculated as 2% of cumulative assessed value from prior year. Homeowner Exemption: Calculated as $7, 000 per permanent dwelling, which are projected to be 20% of total. Property Tax Revenue Sharing Ratio: Calculated as 25% of County' s share of 0. 2263%. SCHEDULE 1B Average Household Income: Derived by taking 80% of average selling price for each unit type, calculating mortgage payment, and dividing by 28%, the maximum mortgage payment to income ratio permitted by FHA. Average Expenditure on Retail Sales: It is estimated that 25% of income is spent on the purchase of items subject to retail sales tax. Based on Sunrise Company' s prior experience with similar developments, it is estimated that 80% of home sales will be to seasonal occupants who will live, on average, six months per year in the desert. Retail sales have been adjusted accordingly. Sales Tax Revenue Generated by Club: Projected taxable sales were provided by Sunrise Company. It is estimated that 50% of taxable club sales will be to non-homeowners. Sales Tax Generated Within City: It is estimated that 60% of homeowners ' purchases will occur at establishments within city limits. - Page 27 - SCHEDULE IC Cumulative Population: Sunrise Company projects average household population of 2 . 24 . Seasonally adjusted, this is 1. 34 per household. Additional Square Footage: This is based on average unit size of 2, 448 square feet. Revenue per Capita: Revenue per capita for Business License Tax and Franchises is based on estimated revenues for 1990/1991, and seasonally adjusted population for City of Palm Desert of 28 , 159 . State Subventions factor is per the League of California Cities Budget Bulletin for 1990/1991, issued April, 1990 . Projected Gross Rents: The projected rents subject to the Transient Occupancy Tax were provided by Sunrise Company. Property Transfers: Only initial transfers from developer to original buyers are considered. Subsequent resales are not included. The applicable rate is $1. 10 per $1, 000, of which the City of Palm Desert receives 50%, or $0. 55 per $1, 000. Permits and Fees: the valuation factors are applied to valuation calculated as $75 per square foot for new construction projected in each year. SCHEDULE 1D Traffic Safety/Measure A and Gas Taxes: Revenue per capita is based on estimated revenue for 1990/1991 applied to seasonally adjusted population. ,New Construction Tax and Drainage Facilities Fee: Factor is applied to valuation based on $75 per square foot for new construction. Prop A Fire Tax Revenue: Factor of $48 is applied to cumulative units. SCHEDULE 2A General Government Expenditures: Total general government Page 28 - expenditures estimated for 1990/1991, reduced by non-variable items. Police Building & Safety, and Public Works: These factors are calculated based on estimated expenditures for 1990/1991, applied to seasonally adjusted popu lation of 28 , 159 . Building & Safety: It is anticipated that a heavier administrative burden will occur during the construction phase. This is estimated by the City of Palm Desert Planning Department to be $200. 00 per unit, plus $1o, 000 during construction of the clubhouse in year 1991. SCHEDULE 2B Per Capita Expenditures: These factors are calculated using . estimated expenditures for 1990/1991, applied to seasonally adjusted population of 28, 159 . SCHEDULE 3A dxc Property Tax Revenue: Assessment factor of 0. 2263% is applied to cumulative assessed property value. Retail Sales Tax Revenue: It is projected that 15% of taxable purchases made by homeowners will be at establishments located in non-incorporated areas. SCHEDULE 3B ' '• County Administrative Cost: Utilizing the County of Riverside 199o/1991 budget, only those costs which would be applicable upon annexation have been considered. SCHEDULE 4 Structural Fire Protection Revenue: Assessment factor of 0. 0607% is applied to cumulative assessed value. Structural Fire Protection Cost: A per dwelling cost factor ;;';: - - Page 29 - of $127 . 14 is applied to cumulative number of dwellings. county Free Library Revenue: Assessment factor applicable to area 075-012 of 0 . 02835752 is applied to cumulative assessed property value. County Free Library Cost: A per capita factor was calculated using the 1989/1990 cost of operating the Palm Desert branch of the County Free Library. Page 30 - ,�• T- 811EE1 1 pf 2 feYET4 VEST/NG TENTARVE MAP 26/23 INO/AN R/06£ COUNTRY cWB PALM OESERT CALVERW PALM VALLEY COUNTRY CLUB ' ' (REGENCY PALMS ITENTTR 23413 rl I 1 mm I � I \m I" ^� mm rr am o � I ell IN, Im IN y1 1mm \ > `\ i ex'114,11to J O / THE HERITAGE CLUB (PROPOSED TT W. 26R2) .� OASIS COUNTRY, CLUB 11r I I avaT�� aae.•goer. uxm[�^� . __�_ —�—.— IrN¢IYe PINfN POAC LA m EWE oea®a.ee rs.am.rr m-nr or � • • _� — �.YaP9w rwr OO..rtYYY..T� -� Or•4WCea • 1 It id e COUIJiiR'QLB ��_— •fit - �� "` SUNRISE COMPANY • � �..-�.: o.rr ore wannso • AT._c��.: �YO�:...nMe�.�.w�nwP WET E Of E Sn ETS VESTING TENTATIVE MAP 2612,5 INDIAN RIDGE ccuNTRY CLUB PALM DESER( CALFU6M/A gg PROPOSED FINISHED SIAFACE 6 Q T Y Y y 6 r F SECTION DA E � e A a Q 6 � y Y . 1iE Ey PROPOSED FINISHED SURFACE M 3 SECTION 'IB — B" Eh E I f -� IndianRidLyeCOUNMCUJB SUNRISE COMPANY WwOEiai�nu�uge^e��=a�raFiTmx Y "cm— a r i \ joninjifin a aSSOCIORTES, Inc. 4 September 17, 1990 q? 1 g 1990 Paul Gibson COMMUNITY I'll, FF PALM OESERTAATMENt City of Palm Desert AV. 73-510 Fred Waring Drive Palm Desert, CA 92260 Re: Indian Ridge Country Club Dear Paul: Enclosed is the preliminary analysis of impact on other agencies and on the County of Riverside. I have also enclosed the updated assumptions. You already have the preliminary analysis of impact on the City. _ Please note that some of the figures will be changed when I�'. have updated information. In particular, I need the County 1 budget for 1990/1991, recent population count for the county, \ and confirmation of the Structural Fire Protection Agency /\) cost per dwelling. I would like to see their budget if possible. At this point, all that remains to be done is the changes required to finalize the drafts you have, and writing the narrative. I will wait on the narrative until you give me your comments on the drafts. Please call me as soon as you are ready to discuss this. Sincerely, Sabby Jonathan, CPA cc: Steve Smith 74-900 Highway 111. Suite 224 ■ Indian Walls, CA 92210 ■ Ph: 619/341-6656 ■ Fac 619/346.8573 JONATHON S OSSOCIATES, INC. July 27, 1990 Local Agency Formation Commission Attn: George Spiliotis 3403 loth Street, Suite 620 Riverside, CA 92501 Dear Mr. Spiliotis: I have been asked to submit a proposal for an analysis of the fiscal impact to the City of Palm Desert, the County of Riverside, and other affected agencies which would result from proposed annexation to the City of Palm Desert. To this end, it would be very helpful to have a sample report showing the presentation format you desire. Perhaps you could supply me with a recent submittal which you feel is a good example. I very much appreciate your help in this regard. Thank-you for your assistance. Sincerely, Sabby Jonathan, CPA cc: Pat Bowler Steve Smith 14-900 Highway 111. Suite 224 ■ Indian Walls, CA 92210 ■ Ph: 619/341-6656 ■ Fmc 619/346-8573 _71� _ gam= L/97Z3-D �32c� 7/(/ 8-7?- 36Gg j S� 2/3-820-Z68O �a Pc �F .'' BY:XEROX TELECOPIER 7010 : 7-26-90 10:12RM : CCIT? G:3- 61934170997# 1 07:S-6i90 11: 13 001 LOCAL, AGENCY FORMATION COMMISSION 4080 Lemon Street - 3 rd Floor Riverside, Co. 92501 Office: (714) 275.1190 FOR IMMEDIATE DELIVERY Ta; eu� Sr�I`Fh DHPT: e, o V10, Vn FROM; cW b DEPT: - �Q-jo e-- Dots of TrondmMal�c Total N of Page$: pnowd• *over ObWt) Speoiol Irntruotian /or Comrrnrth: . L g R02e;- pvi� )�e La �vex 5�, � h i s, ►,c�_�,,�� f�< (I s , c� q Q6 53) ,Java c� 7a.uss V Ass0 C (aye' s ) .77h c, 00 70 0(3u ss'nc.rs Thank You RCV, BY:XEROX TELECOPIER 7010 7-26-90 10:13AM CCITT 63- 61934170'38:# 2 s ' � 07i26i90r °i: 14 � 002 1 LIST OF POSSIBLE CONSULTANTS FOR PREPARING LAFCO PROPOSALS Sedway Cooke Associates S. M. "Skip" Schmidt Bradbury Building Pacific Governmental Associates 304 S. Broadway, Suite 330 329 Stagecoach Drive Los Angeles, California 90013 San Marcos, CA 92069 (213) 620-1613 (619) 439-5664 Hanford, Hogan & Martin Pacific Planning Group 1413 Lake Boulevard P. 0. Box 486 Davis, CA 95616 Idyllwild, CA 92349 (916) 753-7838 Property Data Services Williams-Kuebelbeck & Associates, Inc. 11620 Kitching Street 17870 Skypark Circle Sunnymead, CA 92388 Suite 108 (714) 653-0500 Irvine, CA 92714 RBR Hawkins/Mark Tell Royce S. Riggan and Associates 617 Veterans Boulevard, Suite 107 7261 Courtney Drive Post Office Box 31 San Diego, CA 92111 Redwood City, CA 94064 (619) 560-1753 (415) 365-1588 Harrison Associates V. John White and Associates 3612 7th Street 1100 Eleventh Street, Suite 311 Riverside, CA 92501 Sacramento, California 95814 (714) 787-6280 (916) 447-7983 Ash v & Baker 2n or>orated Barclay Associates Incorporated �Governmental Relations 13400 Maxella Avenue, Suite 250 t—bff ox 5 Marina Del Rey, CA 90291 Riverside, GA 92502 (213) 822-9933 (714) 657-1891 or 924-9851 Emmet L. Wemple & Associates NBS/Lowry Landscape Architects 535 East Florida Avenue 150 Paularino Avenue, Suite B134 Hemet, CA 92343 Costa Mesa, CA 92626 (714) 781-8265 (714) 540-1212 NBS/Lowry D. G. King Associates 10920 Via Fronteria 9375 Archibald Avenue, Suite 212 San Dieggo, CA 92727 Rancho Cucamonga, CA 91730 (619) 485-1500 (714) 987-7077 �0 D rZ55'1 V0 oQ Fv=J- BY:XEROX TELECOFIER.' 7010 ' 7-26-90 10: 13AII C 1T G3-� 6193417098:k1 3 07i26/90 11: 15 _ 003 r LAFCO Consultant List Page 2 Christensen & Wallace, Inc. Wedin Enterprises Incorporated Post Office Box 2086 1901 East Lamber Road, Suite 102 Oceanside, CA 92054 La Habra, CA 90631 (619) 722-1177 (213) 694-8800 or (714) 525-4047 William P. McNames Henn & Etzel 110 1/2 Pearl Avenue Attorneys at Law' Balboa Island, CA 92662 Two Emba&adero Center, 16th Floor (714) 673-1967 San Francisco, CA 94111-3901 (415) 392-4600 Psomas & Associates H$W Associates -- 3901 Lime Street 7 Post Office Box 1566 Riverside, CA 92501 San Juan Capistrano, CA 92693 (714) 787-8421 (714) 495-6731 John J. McTighe, Principal Public Affairs Conultants, Inc. Public Affairs Consultants, Inc. 3160 Camino Del,Rio South, Suite 206 3160 Camino Del Rio South, Suite 205 San Diego, CA 92108 San Diego, CA 92108 (619) 281-7724 (619) 281-7724 ASL Consulting Engineers Natelson, Levander &-Whitney, Inc. 960 East Tahquitz Way, Suite 204 Real Estate Econ. & Finan. Consultants Palm Springs, CA 92262 1815 Via E1 Prado, �a�te- (619) 320-4220, FAX 619-320-3580 Redondo Beach, CA 90277 (213) 540-1549 Robert Bein, William Frost & Associates The Kpith CoTWes Civil Engineers, Planners & Surveyors 6296 R'Fv r rest Dr. , Suite K 28756 Single Oak Dr., Suite 250 Rivers , 92507 Rancho California, CA 92390 653-023 FAX4(714) 6776�7240 AX (714) 653-53 8 1 JONATHON 5 OSSOCIATES, inc. C � v SID September 4, 1990 SEP 5190 Steve Smith eftUNITY DEYEEOPMENT DEPARTMENT > City of Palm Desert "�� 199000MM 73-510 Fred Waring Drive UNITY DEVELOPMENT DEPANIMEM Palm Desert, CA 92260 On f PALM DESERT Re: Fiscal Impact Report Indian Ridge Country Club Annexation Dear Steve: In my letter to you of July 31, 1990 I estimated that the preparation of the Fiscal Impact Report would require up to 40 hours. I indicated that if additional time is required, I would so advise you. Unfortunately, it appears that this will be the case. I have now spoken with several people at LAFCO, including George spiliotis, I have met extensively with Paul Gibson, and I have reviewed one other Fiscal Impact Report which LAFCO has accepted. It is very clear that what they desire is much more extensive than what I originally envisioned. While I know more time will be required, I cannot accurately predict just how much. My best guess at this point is that the total time requirement will approach between 60 and 80 hours. However, it is very possible that the final time requirement will vary from this estimate, so I will continue to keep you informed. The good news is that I feel we are making very good progress. If you have no objection, when it is ready, I would like to give you, Ray, Paul, and maybe Bruce a draft copy to review before submitting the final report to LAFCO. Thanks again for all your help. Sincerely, i Sabby Jona n, CPA 74-900 Highway 111. Suite 224 ■ Indian Walls, CA 92210 ■ Ph: 619/341-6656 ■ Fax 619/346-8573 )ONEiTIifiN S FISSOCIMES, INC. July 31, 1990 � Steve Smith City of Palm Desert It � NUNl11OEVE( Palm lDesert,0 Fred WCA1Rg Drive 922260 04XPAW E&AHTMENT Re: Indian Ridge Fiscal Impact Report Dear Steve: This letter outlines the details of our engagement to prepare a report for the City of Palm Desert on the fiscal impact which would result from annexation of the proposed Indian Ridge development. Our report will analyze the fiscal impact to the City of Palm Desert and to the County of Riverside. The report will comply with the requirements of the Local Agency Formation Commission. My services are billed on an hourly basis, at the rate of $150.00 per hour, plus direct costs. I expect this engagement to require between 15 and 40 hours. If unanticipated events occur which would require more time, I will request your approval prior to proceeding. If these terms meet with your approval, please sign the enclosed copy and return in the envelope provided. I very much appreciate your consideration, and look forward to fulfilling your expectations. Sincerely, Sabby onathan, CPA APPROVED: � --�-=---------- ---------- 74.900 Highway 111, Saito 224 ■ Indian Walls, CA 92210 ■ Ph: 619/341-6656 0 Fwc 619/346-8573 ROGER M. ROSTVOLO R+ 171 41 855-1 1 21 REAL PROPERTY CONSULTANT AUG 15 1990 COMMUNITY DEVELOPMENT DEPARTMENT CITY X PALM DESERT July 25 , 1990 RECEIVED Mr. Jerry Herman, Planning Director JUL 2 7 1990 C i ty of La Qui nta CCTV OF LA QUINTP 78-105 Cal 1 e Estado PLANNING & DEVELOPMENTAfF(. La Quints, California 92253 RE: ANNEXATION NUMBER 5; IMPACT ON RIVERSIDE COUNTY Dear Mr. Herman: At your request, I have completed additional analysis of the fiscal impacts of the proposed annexation. The primary focus of this analysis is a request by Mr. George Spiliotis at LAFCO to address the impacts of the proposed annexation on the general revenues and expenses of Riverside County government. This letter summarizes my findings with respect to the poten— tial impact of the annexation on Riverside County. The impact on the Riverside County Fire Department and the Riverside City and County Free Library has been previously addressed in my Fiscal Impact Report of January 1990. Annexation of the project area to the jurisdiction of the City of La Quinta will involve the transfer of certain public services from Riverside County to the City of La Quints. The most significant impacts would be administration, public safety and recreation. Even with the annexation, however, Riverside County would be required to maintain certain public services and facili— ties for the benefit of the residents . These would include the public court system, certain health and welfare services , as well as general County administrative oversight. 23276 South Pointe Or., Suite 215, Laguna Hills, CA 92653 Market Feasibility 0 Real Estate Investment and Finance Mr. Jerry Herman July 25 , 1990 Page Two Revenue Impact on Riverside County The primary revenue benefit that will occur through develop— ment of the annexation area is real property taxes . Under the terms of annexation, a portion of the property tax revenue would be allocated from the Riverside County general fund base levy to the City of La Quinta. Examination of the auditor ' s allocation for applicable tax rate areas , shows that Riverside County would receive between 23 . 1 and 25 . 5 percent of the basic one percent property tax levy. Table 1 .OA calculates the annual property tax benefit that would accrue to the Riverside County general fund, during the in— cremental stages of annexation area development. We find that at project area buildout, the Riverside County general fund would receive an annually recurring property tax benefit of $2 ,506, 362 . This takes into account the transfer of property tax to the Ther— mal Redevelopment Agency Sub—area A. Riverside County would receeve a portion of the retail sales tax revenue that would be generated by the household spending of the new residents of the annexation area. In this analysis, as shown in Table 2 . OA, we assume that Riverside County would receive only 15. 0 percent of the total retail sales tax revenue allocable to the households . The balance of the retail sales tax benefit is assumed to go to the City of La Quinta and other incorporated cities in the Coachella Valley. At project buildout, the annual retail sales tax benefit to Riverside County would total approximately $105 , 000. Other revenue benefits would also accrue to Riverside County [e.g. state and Federal sources] , but are either not significant, or are not directly affected by annexation . In summary, the primary revenue impact of annexation will affect property tax and retail sales tax receipts for Riverside County. Mr. Jerry Herman July 25, 1990 Page Three Public Cost Impact on Riverside County Annexation of the project area will shift the primary respon- sibility of public safety, local administration , recreation and road maintenance from Riverside County to the City of La Quinta. Riverside County would have remaining responsibility for certain service and administration programs . Previous Fiscal Impact Studies [Adams 34 Ranch , Bermuda Dunes Tract No. 23778 , Ivey Ranch] which I have prepared, have identified a County administrative cost fac- tor of $169. 87 per capita . This would include such services as administration, courts , public health and welfare, but excludes public safety (sheriff and fire] . It would be appropriate to up- date the cost factor, based on the current 1990-91 fiscal year budget, however, the budget will not be available until sometime in August. Table 4 .OA shows that Riverside County will incur general public administrative costs of $1 , 476, 489 on an annual basis at project buildout. Revenue/Cost Comparison Table S .OA summarizes the general revenue and cost impacts of the proposed annexation on Riverside County. As can be seen , development of the annexation area will result in a potential net revenue benefit that will start at $90, 584 and incease to over $1 . 1 million on an annually recurring basis . Over a ten-year per- iod, Riverside County could realize a net cumulative benefit of $5 . 8 million. I look forward to addressing any other fiscal issues which may arise as the proposed annexation reaches LAFCO. Sincerely yours , Roger M. Rostvold Real Property Consultant cc : Mr. George Spiliotis , LAFCO TABLE 1,DA CITY OF LA QUI17A ANNEXATION NUMBER S PROPERTY TAX REVENUE RIVERSIDE COUNTY BENEFIT 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 [1000'S] _::: :::: :::s :.:_ :::: __:: :::: _:s: :_:: :ss: ASSESSED VALUE PRIOR YEAR 0 105,870 214,195 325,201 438,428 553,919 671,720 791477 914,437 1.039,448 ADDED VALUE I NEU SALES 105,870 106,208 106,723 106,723 106,723 105,723 106,723 106,723 106,723 106,723 ADDED VALUE REASSESSMENT 0 2,117 4,284 5,504 8,769 11,078 13,434 15,838 18,289 20,789 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ADJUSTED ASSESSED VALUE 105,870 214,195 325,201 438,428 553,919 671,720 791,877 914,437 1,039,448 1,166,959 LESS: HOMEOVNER EXEMPTION 2,093 4,193 6,302 8,411 10,520 12,629 14,739 16,848 18,957 21,066 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- NET ASSESSED VALUE 103,777 210,002 318,099 430,017 543,399 659,090 777,138 897,589 1,020,491 1,145,894 ::::::: ::::::: ::::::: ....... ::::::= ------- ::::::: ------ HOMEOWNER EXEMPTION VALUE: $7,000 PER UNIT ANNUAL REASSESSMENT FACTOR: 2.0% PROPERTY TAX REVENUE ACCOUNT FACTOR GENERAL FUND 0.2318 240,542 486,750 739,171 996,728 1.259,534 1,527,694 1,801,315 2,080,507 2,365,379 2,655,047 ALLOCATION TO THERMAL RDA 13,648 27,574 41,783 56,282 71,076 86,171 101,574 117,289 133,324 149,685 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- NET PROPERTY TAX REVENUE TO 226,894 459,186 697,388 940,446 1,188,458 1,441,523 1,699,742 1,963,218 2,232,055 2,506,362 RIVERSIDE COUNTY ::::::: ::::::: ::::::: SOURCE: RIVERSIDE COUNTY ASSESSOR'S OFFICE; ROGER M. ROSTVOLD, REAL PROPERTY CONSULTANT TABLE 2.OA =_=_===:== CITY OF LA QUINTA ANNEXATION NUMBER 5 RETAIL SALES TAX REVENUE RIVERSIDE COUNTY BENEFIT AVERAGE HOUSEHOLD INCOME: VERY LOU DENSITY 114,280 LOU DENSITY 60,949 RESORT 95,995 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 NUMBER OF HOUSEHOLDS: VERY LOW DENSITY 63 127 191 255 319 363 445 510 574 638 LOW DENSITY 186 372 559 716 933 1,120 1,307 1,494 1,681 1,868 RESORT 143 286 430 574 718 062 1,006 1,150 1,294 1,438 HOUSEHOLD INCOME: [5000'S) 0 14 502 2! 805 29 107 36 VERY LOU DENSITY 7,20 409 43,712 51,014 58,317 65,619 72,922, , LOW DENSITY 11,337 22,673 34,071 45,468 56,866 61,263 79,660 91,058 102,455 113,853 RESORT 9,266 18,532 27,863 37,193 46,524 55,655 55,185 74,516 83,847 93,177 TOTAL HOUSEHOLD INCOME 27,802 55,707 83,738 111,768 139,799 167,830 195,860 223,691 251,922 279,952 (1000'S) =_-_=__ =----- ====--= ====_== _====== =---=-- _====-= _==-=__- - --- - - - --- -- - - -- - - - - RETAIL SALES FACTOR 25.0% OF HOUSEHOLD INCOME ALLOCATED TO TAXABLE RETAIL GOODS AND SERVICES ANNUAL RETAIL SALES 6,951 13,927 20,934 27,942 34,950 41,957 48,965 55,973 62,980 69,988 11000'S] ______ __--- SALES TAX FACTOR 1.0% OF RETAIL SALES ANNUAL SALES TAX REVENUE 69,505 139,267 209,344 279,421 349,497 419,574 489,651 559,727 629,804 699,880 RIVERSIDE COUNTY SHARE @ 15.0% 10,426 20,890 31,402 41,913 52,425 62,936 73,448 83,959 94,471 104,962 SOURCE: ROGER M. ROSIVOLO, REAL PROPERTY CONSULTANT TABLE 3.OA CITY OF LA QVINTA ANNEXATION NUMBER 5 REVENUE SUMMARY RIVERSIDE COUNTY BENEFIT 1991 1992 1993 1994 1995 1996 1997 1990 1999 200O PROPERTY TAX REVENUE 226,894 459,186 697,388 940,446 1,188,458 1,441,523 1,699,742 1,963,218 2,232,055 2,506,362 RETAIL SALES TAX REVENUE 10,426 20,890 31,402 41,913 52,425 62,936 73,448 83,959 94,471 104,982 ------- ------- ------- ------- ------ ------- ------- ------- ------- ------- TOTAL ANNUAL REVENUE TO 237,320 480,076 726,790 982,359 1.240,683 1,504,459 1,773,189 2,047,177 2,326,526 2,611,345 RIVERSIDE COUNTY ='____' _`___'_ _______ '______ _______ __°_°_' '_'__'°__ ___'__ __ '•_____" ___:_'_'_ SOURCE; ROGER M, ROSTVOLD, REAL PROPERTY CONSULTANT TABLE 4.OA ---------- ---------- CITY OF LA QUINTA ANNEXATION NUMBER 5 PUBLIC COST SUMMARY RIVERSIDE COUNTY COST 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 ===M ::a: NUMBER OF UNITS: 392 785 1,160 1,575 1,970 2,355 2,759 3,154 3,549 3,944 POPULATION: 864 1,730 2,600 3,470 4,341 5,211 6,081 6,951 7,822 8,692 ADMINISTRATION -------------- -------------- PER CAPITA FACTOR 169.87 146,736 293,854 441,683 589,513 737,342 885,171 1,013,001 1,180,030 1,328,659 1,476,469 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- PUBLIC COST INCURRED BY 146,736 293,054 441,683 589,513 737,342 885,171 1,033,001 1,180,830 1,328,659 1,476.489 RIVERSIDE COUNTY ::::::: ::::::: ::::::. ::::::: ::::::: SOURCE: ROGER M. ROSTVOLO, REAL PROPERTY CONSULTANT TABLE 5.OA :.oacoc=ee CITY OF LA QUINTA ANNEXATION NUMBER 5 REVENUE/COST COMPARISON RIVERSIDE COUNTY IMPACT 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 _:_= =___ __-- aa== __-: PUBLIC REVENUE 237,320 00,071 728,790 982.359 1,240,BB3 1,501,459 1,773,189 2,047,177 2,326,526 2,611,345 PUBLIC COST 146,736 293,854 441,683 589,513 737,342 885,171 1,033,001 1,180,830 1,328,659 1,476,489 ------- ------- ------- ------- ------- --------- --------- --------- --------- --------- NET ANNUAL IMPACT 90,584 186,223 287,106 392,847 503,541 619,288 710,189 866,347 997,866 1,134,856 CUMULATIVE IMPACT 90,584 216,807 563,913 956,760 1,460,301 2,019,99 2,819,778 3,686,124 4,683,991 5,618,847 ==:c== ==:==== ------- a===:= =c==== ::__:__ =n===== ======= a::==a --------- ------- --------- REVENUE/COST RATIO 1.617 1.634 1.650 1.666 1.683 1.700 1,717 1.734 1,751 1.769 Itt[t tttts stilt Itltt 1tMt slits tltlt 212I2 Atli$ Atilt SOURCE: ROGER M. ROSTVOLO, REAL PROPERTY CONSULTANT A ROGER M. ROSTVOLO n1 a1655-1 121 REAL PROPERTY CONSULTANT FISCAL IMPACT ANAL YSIS CITY OF LA QUINTA ANNEXATION NUMBER S i JANUARY 1990 23276 South Pointe Or.. Suite 215, Laguna Hills, CA 92653 Market Feasibility • Real Estate Investment and Finance F I S C A L I M P A C T A N A L Y S I S C I T Y OP L A Q U I N T A A N N E X A T I O N N U M B E R 5 INTRODUCTION This Fiscal Impact Report [FIR] presents an analysis of the potential impact of a 2 , 408-acre proposed annexation to the City of La Quinta, Riverside County. The project area consists of 154 individual land parcels [including subdivided tract map lots] and is , generally, delineated by 50th Avenue , from Jefferson to Madi - son Street; Madison , from 50th to 53rd Avenue; 53rd Avenue, from Madison to Monroe Street; Monroe , from 53rd Avenue to Airport Blvd . ; and Airport Boulevard, from Monroe to Madison Street. An- other area of proposed annexation is the northeast corner of 58th Avenue and Madison Street and westerly of Madison , north of 58th Street. The dominant designated land use is low and very low den- sity residential , however, approximately 39. 2 acres is designated for commercial land use . The purpose of this Fiscal Impact Analysis is to determine if the annexation, as proposed, is in the best fiscal interest of the City of La Quinta and other impacted public service agencies . Fiscal impact is defined to include the public revenues and public costs directly attributed to the proposed project [annexation] . In effect, the study will incorporate a detailed public cost-benefit analysis of the proposed annexation, on the City of La Quinta. The public cost-benefit analysis will determine whether, or not, the fiscal benefits of the project are greater than the in- 1 cremental public cost of providing services to the annexed area. To the extent that public revenues [benefits) proposedcontributedannexation on by the project exceed the public costs , the p p ld have a net positive [beneficial ] impact on the City of La Quinta, in a fiscal sense. This Fiscal Impact Analysis has been prepared utilizing the Case Study approach and a Per-Capita Cost Allocation [multiplier] methodology , where appropriate. 1 50th z O z W N O O cc NLU ¢ LL p z LL O W I 52nd 54 th i LA QUINTA Li AIRPORT SL 97 1 58 th PROJECT DESCRIPTION The proposed annexation will encompass approximately 2 , 408 .6 acres of land, consisting of 154 individual land parcels held in multiple ownership. The current Riverside County land use plan in- cates that permitted land uses include residential [3A (0 . 4-2 du per acre) ; 28 (2-5 du per acre)] and Commercial . Proposed City of La Quinta land uses are Very Low Density Residential [0-2 du per acre] , Low Density Residential [2-4 du per acre] , and Commercial . Assuming that the land parcels are developed at the midpoint of the density ranges , typical project densities would be 1 .0 to 3 . 0 dwelling units per acre . A portion of the project area has been subdivided into 47 individual residential lots , averaging 2 . 0 to 2 .5 acres each . Seven lots have been improved . Tentative development plans have been submitted for other land parcels within the proposed annexa- tion area. One project called "Polo Club Estates" is in the final planning stage and proposes the subdivision of 33 .94 gross acres into 25 estate lots . Other development proposals include the following: ACRES UNITS THE GROVE 304 . 3 448 BERKEY PROPERTY 270.9 762 FOWLER PACKING 262 .4 646 PURPLE HILLS 160 .0 174 PGA WEST-NICKLAUS 276 .9 550 PGA WEST-#5 220.0 440 Approximately 320 acres of the project area are situated within the Thermal Sub-area of the District Four Redevelopment Area, established in 1986. A profile of parcel size , unit density and distribution is summarized in Appendix A. 3 Table 1 . 0 [Assumptions and Base Data] provides a phasing plan for development of the residential units . Based on Land Use des- ignations and project proposals , a total of 3 , 945 residential dwelling units would be developed in the annexation area . For pur- poses of analysis , development is phased over a ten-year time frame . Assumptions have been developed for three housing product types . Very low density assumes a house with 3 , 000 square feet of living area floor space , situated on an average lot of one acre . A low density unit is assumed to have 2 , 000 square feet of floor area with average lot size of one-third acre . The "Resort" classification is a designation for the three Landmark/Sunrise PGA West projects . These projects would, typically; include a golf course, tennis courts , swimming pools/spas , etc . within a gate-guarded community. The assumed average home would have 2 , 250 square feet and would include attached and detached housing product . Home sales values [gross and per square foot] relate to housing type. The home values do not include any "premiums" which would, typically, be charged for prime lot locations , superior amenities , etc. In other words , home values used in this analysis represent "base" values for lot and improvements , building costs , financing costs , marketing , etc . Population increments are computed using an average of 2 . 5 persons , per household . The analysis takes into account the factor of seasonal occupancy of many residential units in a resort oriented project. In the case of the Landmark/Sunrise projects , we have assumed that 35 .0 percent of the units would be occupied on a permanent, year-round basis , while 65 .0 percent of the units would be occupied on a "seasonal " basis for six months each year. As such , the annexation project area may have an ultimate effective annual population base of 8 ,692 persons . The current [January 1 , 19901 estimated population for the City of La Quinta is 11 , 200. 4 TABLE l.0 . CITY OF LA QUINTA ANNEXATION NUMBER S ASSUMPTIONS AND BASE DATA NUMBER PER SQUARE OF UNITS AVERAGE UNIT SIZE FOOT VALUE VERY LOW DENSITY 635 3,000 SQUARE FEET $125.00 LOW DENSITY 11868 2,000 SQUARE FEET $100.00 RESORT 1,438 2,250 SQUARE FEET $140.00 1991 1992 1993 1994 1995 1996 1997 1996 1999 AVERAGE UN17 VALUE: ---- -:: :::a :aa: ___a _a:a ::sa _- VERY LOW OENSITY 375,000 375,000 375,000 37S,000 375,000 375,000 375,000 375,000 375,000 371,::I LOW DENSITY 200,000 200,DDO 200,000 200.000 200,000 200,000 200.000 200,000 200,000 200.:: t RESORT 315,000 315,000 3IS,000 315,000 315,000 315,OD0 315,000 315,000 315,000 315. VALUE ESCALATION FACTOR: 0.0% 1991 1992 1993 1994 1995 1996 1997 1998 1999 UNIT SALES (PHASINGI: :amm ::am :aaa aaaa ---- aaa: VERY LOW DENSITY 63 64 64 64 64 64 64 64 64 LOW DENSITY 156 186 187 187 187 187 187 117 187 RESORT 143 143 144 144 144 144 144 144 144 ANNUAL TOTAL 392 393 395 395 395 395 395 395 395 1,515 1,910 2,365 2,159 3,IS4 3,519 3.: CUMULATIVE TOTAL 392 755 1,180 [ 1991 1992 1993 1994 1995 1996 1997 1998 1999 2'. ANNUAL SALES VALUE 1100041 aaaa a=:a aaaa Sams mama aaaa aaa: :aaa aaaa VERY LOW DENSITY 23,525 23,953 23,963 23,963 23,963 13,963 23,963 23,963 23,963 23.; LOW DENSITY 37,200 37,200 37,400 37,400 37,400 37,400 37,400 37,400 37,400 ;`;l RESORT 45,045 45,04S 45,360 45,360 45,360 45.360 451350 45,360 45_360 ------- ------- ------- ------ TOTAL ANNUAL SALES (5000'51 105,870 106,208 106,723 106,723 106,723 105,723 105,723 106,723 106,723 lc6 CUMULATIVE SALES [$000'S1 103,870 212,078 318,900 425,523 532,245 636,968 745,690 852,413 959,135 4.06'- i S TABLE I.OA CITY OF '-,A QUINTA 144EXAT;ON NUMBER 5 ASSUMPTIONS AND BASE DATA OCCUPANCY FACTOR: PERMANENT - 2.50 PERSONS PER UNIT SEASONAL 2,50 PERSONS PER UNIT 65.0{ OF RESORT UNITS OCCUPIED 50.0= OF THE TIME 1991 1992 1993 1994 1995 1996 1997 1991 1999 -. _x_x ax__ xxxs a___ ____ xaxs xaas sass zzzs __ POPULATION [PERMANENT]: NUMBER OF UNITS 299 599 900 1,202 11503 I,604 21106 2,107 2,706 3.0 PERMANENT POPULATION 746 11490 21251 3,004 3,757 41511 5,264 6,017 5,770 115 POPULATION [SEASONAL]: NUMBER OF UNITS 93 186 280 373 467 560 654 748 841 SEASONAL POPULATION 116 232 349 466 503 700 817 934 11051 i EFFECTIVE TOTAL POPULATION 864 1,730 2,500 3,470 4,341 5,211 6,011 6,951 7,622 B.e . _sa sa:zs saaaa aaaav Massa Maria axxss saaaz sazxa ax r 6 FISCAL IMPACT ANALYSIS - PUBLIC REVENUE IMPACT This section of the report will summarize the findings with respect to the public revenues which will accrue to the benefit of the City of La Quinta and other public service agencies . The primary sources of recurring public revenues are property taxes , retail sales taxes , and other fees collected on a per-capita basis , such as franchise fees , vehicle in-lieu fees , etc . REAL PROPERTY TAX REVENUE The estimation of real property tax revenue is based on the allocation of the one percent of the assessed valuation general levy. Assessed values are adjusted downward , by $7 , 000, for each of the homes which are subject to the homeowner ' s exemption . The assessed value of each property is assumed to increase by two percent annually, per Proposition 13 , however the base value of each home is maintained in constant dollars [1990] . There has been no upward adjustment in home values to reflect future resales at a higher price . The City of La Quinta receives a portion of the base levy, as allocated by Riverside County. The pro-rata share of the pro- perty tax revenue is dependent on the Tax Rate Area. Tax Rate Area 020-011 provides for a City of La Quinta annexation revenue _ increment equal to 7 . 335318 percent of the basic one percent levy. Other district allocations include county structural fire protec- tion [6 . 024559 percent] and county free library [2 . 798606 percent] . Table 2 .0 summarizes the estimated annual property tax reve- nue which would accrue to the benefit of the City of La Quinta, based on development of the residential phases of the project, over a ten-year time period. A portion of the tax increment, which would otherwise go to the City of La Quinta, is transferred to the Thermal RDA. Upon completion of the residential units , we estimate that the stabilized [year 10] annual net property tax ( revenue to the City of La Quinta will be $793 , 179. Transfer of title of each new residential unit, from the pro- ject developer to the home buyer , will also incur a property transfer tax. Based on an assessment of =0 . 55 per $1 , 000 of value, the property transfer tax benefit will average $58 , 697 per year . 7 t0.BLE 2.0 CITY OF LA QUINTA ANNEXATION NUMBER 5 PROPERTY TAM REVENUE 1991 1992 1993 1994 1995 1996 1997 1990 1999 2i:: (1000'Sj ---z --^ :z-- ---a ---- zaz: ---- a -- ASSESSED VALUE I PRIOR YEAR 0 105,670 214.195 325,201 438,421 553,919 671,720 791,877 914.437 ADDEO VALUE I NEW SALES 105,670 106,201 106,721 106,723 106,723 106,723 106,723 105,723 106,723 IC6,12: ADDED VALUE REASSESSMENT 0 2,117 4,204 6,504 8,769 11,070 13,434 15,636 18,219 20.78 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------ ADJUSTED ASSESSED VALUE 105,870 214,195 321,201 438,428 553,919 571,720 791,877 914,437 1,039,446 1.166.95 LESS: HOMEOWNER EXEMPTION 2,093 4,193 6,302 61411 10,520 12,629 14,739 15,848 18,957 21,06 NET ASSESSED VALUE 103,777 210,002 311.899 430,017 143.199 659,090 777.138 897,S69 1,020,491 1,14539 .z=...a zasz=ss s:z=azz zazzazz szazs:: _z.szaz z==zzas .zzzma: HOMEOWNER EXEMPTION VALUE: $7,000 PER UNIT ANNUAL REASSESSMENT FACTOR: 2:0% PROPERTY TAX REVENUE sz:amz=zzs=�a:aszsa i ACCOUNT FACTOR :zsaaz::zs=smz: :azsas ( GENERAL FUND 0.0734 76,123 154,043 233,923 315,431 398,600 483,464 510,055 558,410 748,563 840,`. ALLOCATION TO THERMAL RDA 4,319 0,726 13,223 17,811 22,493 27,270 32,145 37,116 42,193 47,3 l . ------ ------ ------ ------ ------- ------ ---- NET PROPERTY TAX REVENUE TO 71,604 145,317 220,700 297,620 375,107 451.103 537,911 621,292 706,370 793,1' CITY OF LA QUINTA asassaa :masaa= =asssaa =smzasa zzzas __zssaa zaa=ass amaasza SOURCE: RIVERSIDE COUNTY ASSESSOR'S OFFICE; ROGER M. ROSTVOLD, REAL PROPERTY CONSULTANT l9 RETAIL SALES TAX REVENUE Annexation of the project area will establish new residential household units in the City of La Quinta. These families would al - locate a portion of their household budget to the purchase of goods and services which are subject to retail sales and use tax . The local taxing entity receives a tax increment equal to one percent of retail sales . Estimated household income is derived from the average pur- chase price of the new homes sold . It is assumed that 80 .0 per- cent of the purchase price is financed at a loan constant factor of 0 . 11208 . Conventional financing terms require that housing expense , including property tax , be no more than 28 . 0 percent of total household income . We have calculated average annual house- hold income ranging from $60 ,949 to $114 , 280 . The estimation of retail sales is calculated using a factor income being s of 25 . 0 percent of total household9 Pent on taxable goods and services . We have adjusted the retail purchases for seasonal households to reflect a reduced total annual impact. Table 3 . 0 summarizes the estimated retail sales tax revenue which will be generated by the residents of the project area. It is assumed that 33 . 0 percent of the retail sales tax revenue will accrue to the benefit of the City of La Quints. As the project area is developed and as the city grows , La Quinta may, ultimately, capture a greater share of retail sales and tax revenue. Annual sales tax revenue will increase to $230,961 at "build-out" in year 10. This translates into a per-capita revenue factor of $26 . 57 . By way of comparison , the City of La Quanta estimates current fiscal year sales tax revenue at $46.43 per capita, reflecting the impact of seasonal population increases and visi - for spending . Thus , this analysis is judged to be sufficiently consertative. I 9 TABLE 3.0 CITY OF LA QUINTA ANNEXATION NUMBER 5 RETAIL SALES TAM REVENUE AVERAGE HOUSEHOLD INCOME: VERY LOW DENSITY 114,28D LOW DENSITY 60,949 RESORT 95,995 1991 1992 1993 1994 1995 1996 1997 1996 1999 20�C NUMBER OF HOUSEHOLDS: VERY LOW DENSITY 63 12? 191 255 319 303 446 510 514 Si. LOW DENSITY 1116 372 $59 746 933 1 120 1,307 1,494 1,681 1,86E RESORT 143 285 430 574 718 662 1,006 1,150 1,294 1.43E HOUSEHOLD INCOME: [1000'S[ VERY LOU DENSITY 71200 14,502 21,805 29,107 36,409 43,712 51,014 51,317 65,619 72,92i LOW DENSITY 11,337 22,673 34,071 45,468 56,866 68.263 79,650 91,05E 102,451 113,85: RESORT 9,266 18_532 27,853 37,193 46,524 55_855 65,165 74_516 03,847 93__7, TOTAL HOUSEHOLD INCOME 27,602 55,701 83,738 111,768 139,799 167,830 195,860 223,851 251-922 279-95; [5000'S] :::ax xsas:zs .z:zzx ::zz RETAIL SALES FACTOR 25.0% OF HOUSEHOLD INCOME ALLOCATED TO TAXABLE RETAIL GOODS AND SERVICES ANNUAL RETAIL SALES 6,951 11,917 20,934 21,942 34,950 41,957 46,965 55,973 52,960 69,9 ( SALES TAX FACTOR 1.0% OF RETAIL SALES ANNUAL SALES TAX REVENUE 69,505 139.267 209,344 279,421 349,497 419.514 489,651 559,727 629,604 699,86 1 --Zigzag xxzzazs zs--zz:z zZ:zaaz _z__zZ_ _:zzzzs z:_zZaz sas-_sa ::aa::s LA QUINTA SHARE a 33.0% 22,937 45,956 69,084 92,209 115,334 Ill,459 161,505 184,710 207.635 230.--E - ----- - -- ---- -- - - -- - SOURCE: ROGER R. ROSTVOLO, REAL PROPERTY CONSULTANT 10 GENERAL FUND [NON-PROPERTY TAX] REVENUE The City of La Quinta receives general fund revenues which can be estimated on a per dwelling unit, or per capita basis . These revenue sources include franchise fees , motor vehicle in-lieu fees , cigarette tax , motor fuel tax and fines . In total , the per capita general fund fees are estimated at $56. 26 per capita, for the 1989-90 Fiscal Year . Table 4 . 0 provides a summary of the estimation of each of the general fund revenue accounts , on a year by year basis . Upon pro- ject stabilization , the City of La Quinta would receive an annual revenue benefit of $488 , 996 . Motor vehicle in-lieu fees are the most significant benefit in this revenue category . We find that the project would generate up to $258 , 236 in annual vehicle fees , at ultimate project build out. INDUCED REVENUE As previously stated , annexation of the project area will create new household units in the City of La Quinta . A significant level of retail spending will be attributed to the households . This retail spending will have an induced effect in the support of new commercial floor space. The new induced commercial develop- ment will create net additional revenue benefits , primarily, through property tax and business license fees . A reasonable estimate of market demand would be one square foot of commercial floor space for each $125 .00 of retail sales . Based on project development, the induced demand would be 184 , 768 square feet of new floor space, supported by household spending for retail goods and services . The estimated induced revenue bene- fit to the City of La Quinta would be $49,608 per year when the project area is fully developed [Please refer to Table 5 .01 . I 11 TABLE 4.0 CITY OF LA QUINTA ANNEXATION NUMBER 5 GENERAL FUND REVENUE 1991 1992 1993 1994 1995 1996 199E 1998 1999 200( .-- :::z :zzz ---- :z:z :::a :::: == NUMBER OF UNITS: 392 785 I,lBO 1,575 1,970 2,365 2,759 3,154 3,549 3194 EFFECTIVE TOTAL POPULATION: 664 1,730 21600 3,470 4,341 5,21E 6,08E 61951 7,622 8159 GENERAL FUND REVENUE x ACCOUNT FACTOR FRANCHISE FEES $10.71 9,251 16,527 27,84E 37,168 46,468 55,008 65,129 74,449 83,770 93,09 MOTOR VEHICLE 129.71 25,664 S1,395 77,250 103,105 128,960 154,815 180,670 206,525 232,360 251,23 VEHICLE FINES $0.89 771 1.545 2,322 3,099 3,876 4,653 5.430 6,208 61965 7,75 CIGARETTE TAX 61.78 1,538 3,079 4,628 6,177 7,726 9,275 10,824 12,373 13,922 IS,' ANIMAL LICENSE $1.30 1,119 21240 3,36E 4,494 5,621 6,748 7,875 9,002 10,129 11,2 GAS TAN FUND 511.8E 10,254 20,535 30,664 41,19E $1,526 Gillis 72,189 02,520 92,851 1031'. ANNUAL GENERAL FUND REVENUE .41,59E 97,321 146,280 195,240 244,199 291,159 342,118 391,077 440,03E 468,9i � sasaass asasesa asartss xsammas zsaazsa _.:mains _:ins:zs z:aaau :ammaaa ar_v�l SOURCE: ROGER M. ROSTVOLO, REAL PROPERTY CONSULTANT 12 TABLE 5.0 CITY OF LA QUINTA ANNEXATION NUMBER 5 INDUCED REVENUE 1991 1992 1993 1994 1995 1996 1997 1998 1999 ::__ a-a_ ANNUAL RETAIL SALES 61911 13,927 20,934 27,942 34,950 41,957 46,955 55,973 62,980 69.i ($000,S) LA QUINTA DEMAND F 33.0% 2,294 41596 6,908 91221 11.533 13,845 16,156 18,471 20,784 23.: SALES [PEA SQ FT] 125.00 1 110 GROSS FLOOR AREA [SQ F1] I8,349 36,161 55,261 3,761 92,267 ,768 129,268 147,768 166,268 184,' VALUE [PER SQ FT] 80.00 GROSS VALUE 1,468 2.941 41421 51901 7,381 8,861 10,341 11,821 13,301 14.: ($000,S] :zz:za _-- PROPERTY TAX REVENUE ACCOUNT FACTOR ::z:z::aaa:a:saaa :::saa GENERAL FUND 0.0734 11077 21158 31243 4,329 5,414 6,500 7,586 8,571 9,757 10. r BUSINESS LICENSE FEES :z:a:aa:::z:azsa:zaaa PER CAPITA FACTOR 4.46 3,153 7,715 11.597 15,478 19,359 23,241 27,112 31,003 34,694 38." , ------ ------ - -- ------ ------ ------ ------ ------ ------ ---- TOTAL INDUCED REVENUE 4,929 9,873 14,840 19,607 24,774 29,741 34,708 39,675 44,641 43.` SOURCE: R06ER M. AOSTVOLO, REAL PROPERTY CONSULTANT 13 REVENUE SUMMARY - CITY OF LA QUINTA This Fiscal Impact Analysis has identified and quantified the relevant public revenues , that can be attributed to the phased development of the residential units in the proposed annexation area . These public revenues will accrue to the benefit of the City of La Quinta and will be directly available to city government for the payment of public services . Table 6.0 summarizes the incremental revenues which will result from annexation and development of the residential units . We find that the initial estimate of annual revenue is $206 , 496 . In the tenth year , the annual revenue benefit to the City of La Quinta would increase to $1 ,621 , 442 , a per capita average of $186 . 54 . Property taxes would account for 48 . 9 percent of total reve- nue generated, while 30 . 1 percent of the revenue would come from other non-property tax general fund sources . Retail sales taxes would provide 14 . 2 percent of the total revenue benefit to the City of La Quinta . REVENUE' SUMMARY - OTHER SERVICE AGENCIES Table 7 . 0 shows other significant additional revenue that would be generated by development of the annexation area. The identified revenue [exclusively from the property tax increment] would accrue to the benefit of Structural Fire Protection , River- side City and County PubllcLibrary, and the Thermal Sub-area Re- development Agency. i At ultimate project area build out, the fire district would receive $651 , 445 on an annual basis; the library would receive a yearly benefit of $302 ,618; the Thermal RDA would be allocated $476, 865 per year. This distribution of property tax revenue is based on the current allocation as established by the Riverside County Auditor-Controller ' s office. ! The public revenue benefits identified above are those which would recur on an annual basis . Development of the project area would also generate revenues on a single event, or one-time basis . Such revenues would include plan check fees , building permit fees , service connection fees and impact mitigation fees . For example, a developer might pay a "Quimby uimb Act" park fee, or the Fire Protec- tion District would receive a one-time fee for facilities , equip- ment and operations . 14 TABLE 6.0 CITY OF LA QUINTA ANNEXATION NUMBER 5 REVENUE SUMMARY 1991 1992 1993 1994 1995 1996 1997 1990 1999 200C aa: ---- ---_ --:: PROPERTY TAX REVENUE 71,804 145,317 220,700 297,620 376,107 456,193 537,911 621,292 706,370 793,1"- RETAIL SALES TAX REVENUE 22,937 45,950 69,084 92,209 115,334 138,459 161,505 164,710 267,835 230.96: GENERAL FUND REVENUE 48,597 97,321 146,280 195.240 244,199 293,159 342,118 391,077 440,037 468,99 1NOUCEO REVENUE 41929 9,873 14,040 19,807 24,774 29,141 34,706 19,675 44,641 4916C PROPERTY TRANSFER TAX 58,229 58,414 58,697 50,697 50,697 51,697 56,597 58,697 58,597 58,69 ------- ------- ------- ------- ------- ------ ------- ------- ------ TOTAL ANNUAL REVENUE TO 206,496 355,883 509.601 663,572 819,111 976,249 1.135,019 1,295,451 1,457,501 1,621.44 THE CITY OF LA QUINTA :::x=az zzzxss: :xxa::x s.zaa. z__a_a -s_ s_x_._azz zz:xzxzax :sx::xzaz 1 SOURCE: ROGER X. ROSTVOLO, REAL PROPERTY CONSULTANT r 15 TABLE 7.0 CITY OF LA QUIBTA ANNEXATION NUMBER 5 REVENUE TO OTHER SERVICE AGENCIES 1991 1992 1993 1994 1995 1996 1997 1998 1999 2C. PROPERTY TAX REVENUE ACCOUNT FACTOR STRUCTURAL FIRE 0,0602 $8.974 119,350 111.263 244,431 308,900 374,676 441,791 510.272 560,149 551.4 CO. FREE LIBRARY 0.0280 27,395 55,442 84,202 113,549 143,494 174,049 205,221 237.036 259,490 302,E THERMAL RDA 0,7384 43,479 87,843 133,112 119,303 226,433 274,524 323,592 373,658 424,742 476,9 i SOURCE: A06ER N. ROSTVOLO, REAL PROPERTY CONSULTANT l 16 I _ FISCAL IMPACT ANALYSIS - PUBLIC COST IMPACT Annexation of the project area will require that the City of La Quinta agree to provide certain municipal services . The public services include community safety, road maintenance , recreation and general government administration . In order to determine the appropriate public cost factors , the City of La Quinta annual budgets for Fiscal Years 1988-89 and 1989-90 were analyzed . Appropriate per-capita cost factors for a variety of public services were derived from the budget analysis . Many administrative functions have an element of "fixed" operating cost. For example, the size of the City Council would not be in- creased and, likewise , there would continue to be one City Manager and one Finance Director . Generally, there would be not be an in- crease in other certain City expenses , such as rent. The budget analysis allocates variable costs for administra- tion and operations on a per capita basis . It should be noted that the proposed annexation and ensuing development would result in a substantial increase in the permanent population base for the City of La Quinta. As such , analysis of the current budget, based on current estimated population, does not take into account "econ- omies of scale" which might be realized as the population base grows . In addition , the annual budget has been- analyzed based on the effective permanent population base. Seasonal occupancy of the residential units increases the population base by as much as 75 . 0 percent, during the winter months . Inferring that the seasonal visitors have a direct and indirect impact on municipal services , the budget analysis would tend to overstate the actual � . impact on a per capita basis . The assumptions utilized to derive the public cost factors are summarized in Appendix B. The potential public cost implica- tions of the proposed annexation are addressed in Table 8.0 . A discussion of the individual service impacts follows. ADMINISTRATION administra- tion Cityof La Quints provides general municipalad mi n Lion by a City Council /City Manager form of government. Assuming that certain administrative costs are "fixed" [such as the City Council ] we can derive a per capita administrative cost factor of $44 . 86 for the 1989-90 budget year . Assuming that there are no economies of scale for variable operating expenses , the project area to be annexed would incur an annual administrative expense of $389, 952 at build out. 17 TABLE 8.0 ::::::az: CITY OF LA QUINTA ANNEXATION NUMBER 5 PUBLIC COST SUMMARY 1991 1992 1993 1994 1995 1996 1997 1998 1999 200" NUMBER OF UNITS: 192 785 1,160 1,575 1,970 2,365 21759 3,151 3,549 31941 POPULATION: 064 1,730 2,600 3,470 4,341 5,211 61061 61951 7,822 8.69i ADMINISTRATION :aces:ee::..aa PER CAPITA FACTOR 44.66 36,754 77,609 116,652 155,695 194,736 233,781 272,824 311,866 350,909 389,95: COMMUNITY SAFETY PER CAPITA FACTOR 104.11 89,934 180,102 270.707 361,311 451,915 542,520 533,124 723,729 814,333 904.93 ANIMAL CONTROL PER CAPITA FACTOR 5.17 41463 81938 13.435 17,931 22.426 26,925 31,421 35,91E 40,414 4419: PARKS) LANOSCAPE :sssz::sse:a:zsa: PER CAPITA FACTOR 11.96 10,346 20,712 31,147 41,572 51,996 62,421 72,646 83,211 93,695 104,1 i ROAD MAINTENANCE z::s:e::ss::ssaa i PER MILE FACTOR 31000 B,ISO 12,300 10,450 24,600 30,75C 36,900 43,050 49,200 55,350 61,50 PUBLIC COST INCURRED BY 149,649 299,672 450,391 601,109 751,828 902,546 1,053,265 1,203.903 1,354,702 1,5051di THE CITY OF LA QUINTA ::z:zz: SOURCE: ROGER M. ROSTNOLO, REAL PROPERTY CONSULTANT i 28 COMMUNITY SAFETY The City of La Quinta provides for primary community safety by contracting through the Riverside County Sheriff ' s Department [Indio station] and the Riverside County Fire Department. Sheriff Department staffing is allocated to the City of La Quinta [for ex- ample , two deputies on patrol during the day] and the City reim- burses the County by way of contract. Community Safety is the most expensive single component of public cost, in the City of La Quinta. In total , the estimated cost of community safety is $104 . 11 per person , per year . This would result in a total project impact of $904 ,937 in year 10 . It should be noted that some of the project area would be developed with perimeter walls and manned security entrance gates . In addi - tion, projects such as PGA Nest provide private on-site security patrol . This would tend to substantially reduce the potential im- pact on public costs for community safety. A portion of the proposed annexation area has patrol services provided through the Southern Coachella Valley Community Services District. As with the City of La Quinta, the SCVCSD contracts with the Riverside County Sheriff ' s Department for manpower and equip- ment. At the present time, the Sheriff provides one Sargent, two Deputies and one Community Services Officer to the SCVCSD. A point to be mitigated in the annexation is the determination of who will provide patrol services to the annexed area and how revenue will be allocated. The SCVCSD receives a supplental tax increment on approximately 1 , 500 acres in the proposed annexation area. Animal control is administered under the Community Safety Department and has a, relatively, minor budget impact. The esti- mated annual impact for the project is $44,911 . Again the "private community" planned development concept would tend to mitigate the l potential impact on animal control . PARKS AND LANDSCAPE Analysis of the current Fiscal Year 1989-90 budget indicates that the per capita cost of Parks and Landscape maintenance is $11 .98 . The annexation project would have a potential impact of $104, 120 per year , at build out. Many of the proposed projects would provide extensive on-site recreational amenities . 19 , I ROAD MAINTENANCE The impact of roadway maintenance is based on the Riverside County factor of $3 , 000 per lane mile . In this analysis , we have assumed that the major streets , such as Jefferson , Madison , Monroe and 50th through 58th Avenues would be maintained by the City of La Quinta. Interior circulation streets , within individual pro- jects , would be private , or would have to be maintained through an assessment district. The annexation area contains a total of 20 . 5 lane miles of major street improvements which would have to be maintained . The estimated annual cost is $61 , 500 . PUBLIC COST SUMMARY - CITY OF LA QUINTA Utilizing the per capita cost allocation methodology for estimating public costs , indicates that annexation and development of the project area would incur an , ultimate , public service cost of $1 , 505 , 420 to the City of La Quinta. This cost estimate is based on build out of 3,944 residential dwelling units with an effective annual population base of 8 , 692 persons . PUBLIC COST SUMMARY - OTHER AGENCIES Annexation of the project area to the City of La Quinta would transfer certain administrative and operating costs to the city. However, there would remain a potential impact on certain Riverside County agencies , notably, structural fire protection and county free library. The Riverside County Fire Department estimates that the cost of structural fire protection is $130.00 per dwelling unit, per year. The potential project impact for structural fire protection is $512 ,733 on an annual basis . The Riverside City and County Public Library estimates that the on-going cost for library services is $18 . 90 per capita. The proposed project would have a potential annual impact of $164 , 276 on library services . 20 TABLE 9.0 CITY OF LA QUINTA ANNEIATION NUMBER 5 COSTS OF OTHER SERVICE AGENCIES 1991 1992 1993 1994 1995 1996 1997 1998 1999 20 -:as _:._ ---a ssxx x--- --xx _:ss ---- _:cs NUMBER OF UNITS: 192 765 11180 11575 1,970 2,365 2,759 3,114 3,549 3" POPULATION: 654 1,730 2,600 3,470 4,341 51211 6,081 5,951 7,022 8,! STRUCTURAL FIRE PROTECTION PER UNIT FACTOR 130.00 50,960 102,037 153,374 204,711 256,048 307,385 356,722 410,059 461,396 512. COUNTY FREE LIBRARY PER CAPITA FACTOR 16.90 16,326 32,695 49,142 55,590 12,038 98,416 114,933 131,381 147,829 164. 1 f SOURCE: ROGER N. ROSTVOLD, REAL PROPERTY CONSULTANT 21 COMPARISON OF REVENUES AND COSTS Table 10 .0 presents a comparison of the public revenues with the public costs , relative to the annexation project' s impact on the City of La Quinta . At ultimate projected build out, the esti - mated annual revenue benefit reaches $1 ,621 , 442 . Upon project stabilization , the annually recurring public cost impact on the City of La Quinta would be $1 , 505 , 420 . Thus , the net public reve- nue benefit would be $116 , 021 in year 10 . Subject to the assumptions and factors contained in this analysis , we find that the proposed annexation project would have a cumulative net positive fiscal benefit, on the City of La Quinta , that would amount to $768 , 841 , over the ten-year development phase . The ratio of public revenues to public costs ranges from 1 . 38 to 1 .07 . At build out, the project stabilizes at a benefit/cost ratio of approximately 1 . 07 . In other words , the project would generate $1 . 05 of public revenue for each $1 . 00 of incurred public cost. Development of residential units in the annexation area would also result in a net positive fiscal impact on the Riverside Coun- ty Fire Department and the Riverside City and County Public Library. The revenue/cost comparison is summarized in Table 11 .0. As can be seen, the respective cumulative benefit would be $653 ,830 for structural fire protection and $709, 816 for the County free library fund . CAPITAL IMPROVEMENTS AND INFRASTRUCTURE DEVELOPMENT COSTS Development of the proposed annexation area will require the construction of on- and off-site infrastructure systems, such as { roads , domestic water distribution and wastewater collection sys- tems, and stormdrains . The City of La Quinta has an active pro- gram to upgrade the infrastructure systems through a Capital Improvement Projects budget and the Redevelopment Agency. Improve- ment costs are shared by the water district, Redevelopment Agency and property owners . It is not known what the cost of infrastructure development in the annexation area would be. The alternatives for financing public capital improvements may include a Mello-Roos Community Facilities District, impact mitigation fees , general obligation tax increment bond financing , or any other financing mechanism that is deemed effective and appropriate, by the City of La Quinta. 22 TABLE 10.0 CITY OF LA QUINTA ANNEXATION NUMBER 5 REVENUE/COST COMPARISON 1991 1992 1993 1994 1995 1995 1997 1996 1999 20f iz-c ---- zzz: ___. --z- zzzz ---z z--- z_.: ..: PUBLIC REVENUE 206,496 356,863 509,601 663,572 $19,111 971,249 1,135419 1,295,4S1 1,457,581 1,621,41 PUBLIC COST 149,649 299,672 450,391 601,109 751,828 902,546 1,053,265 1,203,963 1.354,702 1,505,4; ------- ------- ------- ------- ------- --------- --------- --------- --------- -------- NET ANNUAL IMPACT 56,847 57,211 59,210 62.463 57,284 73,703 11,754 91,468 102,879 116,0: zzzzzzz zzzz:z: :::z:s: s:zszzz zzzzzm: zzzmz:m z::z::x a:aaaa: sassa:: zzzz:: CUMULATIVE IMPACT $6,847 114,058 173,269 235,732 303.015 375,719 458,472 549,941 652,020 768,8 :----z ::z::zz ____zz: zx____x _.._zzz z:z---z :z:::zx :zzzzzz ----szz :zz:zz: REVENUE/COST RATIO 1.300 1.191 1.131 1.104 1.089 1.082 1.078 1.076 1.076 1.0 tuts ttttt fits* utu ntst lint tttn tint nits ]It t ' SOURCE: ROGER N. ROSTVOLO, REAL PROPERTY CONSULTANT t 23 TABLE 11.0 CITY OF LA QUINTA ANNEXATION NUMBER 5 REVENUEICOST COMPARISON OTHER SERVICE AGENCIES 1991 1992 1993 1994 1995 1996 1997 1998 1999 201 ..-- :sxa _:_: sa:: szaz ::.: ___= ease a.- STRUCTURAL FIRE PROTECTION ANNUAL REVENUE 58,974 119,350 181,263 244,437 306.900 374,676 441,791 S10,272 560,148 651,4' ANNUAL COST 50,960 102,037 153,371 204,711 256,046 307,185 358,722 410.059 461,396 S1211 ------- ------- ------- ------- ------- ------- ------- ------- ------- ----- NET ANNUAL IMPACT 81014 17,313 27,889 39,725 S2,852 67,291 31,069 100,213 118,752 138,7 -._::a: ..._a:_ ::s:sss z:zzaa: .::sea- saa:::z ::sssaa saaa:as :as::a: -a_-a. CUMULATIVE IMPACT 8,014 25,327 $3,215 92,942 145,794 213,084 296,153 396,366 515,118 653,8 ..:e..z .zz.::: ::zz:zz .:aaaa: :az::za zzaaaaz :a:aaa: _--sal: ------- ..::a REVENUE/COST RATIO 1.157 1.170 1.182 1.194 1.206 1.219 1.232 1.244 1.257 1.2 title lint tilt* tills *test tuts *till still till$ zt. COUNTY FREE LIBRARY ANNUAL REVENUE 27,395 55,442 84,202 113,549 143,494 174,049 205,226 237,038 269,496 302,E ANNUAL COST 16,126 32,695 49,142 55,S90 $2,038 96,416 114,933 131,361 147,829 164,2 ------- ------- ------- ------- ------- ------- ------- ------- ----- NET ANNUAL IMPACT 11,069 22,747 15,060 47,959 61,456 15,564 90,293 105,657 121,659 138.3 asaasss :aaaaa: zzz-zzm .aaa:aa :s::a:a ::22l:1 asasaaa -::sari CUMULATIVE IMPACT 11,062 33,817 68,677 116,836 178,292 253,156 344,149 449,806 571,475 709.8 -a::::s a:a::s ..-...: -esazza zzz:::a .-z.... ...:.zz .-:szaa zzzzzza ----- REVENUEICOST RATIO 1.676 1.696 1.713 1.731 1.749 1.767 1.786 1.604 1.823 1.8 title Stitt title tells tames Ilett teals title Bills ,,, SOURCE: ROGER M. ROSTVOLO, REAL PROPERTY CONSULTANT I 24 APPENDIX A FISCAL IMPACT ANALYSIS - LA QUINTA ANNEXATION DATA BASE SUMMARY - VERY LOW DENSITY RESIDENTIAL SIZE DENSITY TOTAL PARCEL NO. [ACRE] RANGE DENSITY UNITS 769-280-11 8 . 47 0-2 1 . 00 8 769-280-12 9 . 25 0-2 1 .00 9 769-280-16 14 .69 0-2 0 . 74 11 769-280-17 19 . 25 0-2 0 . 74 14 769-280-20 4 . 45 0-2 1 . 00 4 769-280-21 4 . 16 0-2 1 .00 4 769-280-22 4 . 32 0-2 1 . 00 4 769-280-23 4 . 56 0-2 1 . 00 5 767-200-06 40 . 00 0-2 1 .00 40 769-330-01 69.08 0-2 2 . 45 26 769-420-01 42 . 40 0-2 2 .02 21 767-210-01 80 . 00 0-2 1 .00 80 767-210-02 19. 50 0-2 1 . 00 20 767-210-03 19. 50 0-2 1 . 00 20 767-210-04 19 . 50 0-2 1 . 00 20 767-210-05 19. 50 0-2 1 . 00 20 PURPLE HILLS 160 . 00 0-2 1 . 09 174 767-320-01 39.90 0-2 1 . 00 40 767-320-02 39. 90 0-2 1 . 00 40 767-320- 79. 80 0-2 1 . 00 80 GRIFFIN 767-320-04 39.90 0-2 1 . 00 0 767-320-12 79.80 0-2 1 . 00 0 767-320-13 39.90 0-2 0. 03 1 ---- ---- 857 . 8 0 .75 640 f eaea= =a = FISCAL IMPACT ANALYSIS - LA QUINTA ANNEXATION DATA BASE SUMMARY - LOW DENSITY RESIDENTIAL SIZE DENSITY TOTAL PARCEL NO . [ACRE] RANGE DENSITY UNITS 769-270-01 9 . 11 COMM N/A 0 769-270-02 4 . 77 2-4 3 . 00 14 769-270-03 9 . 54 2-4 3 . 00 29 769-270-04 6. 40 2-4 3 . 00 19 769-270 08 39 . 33 2-4 3 .00 118 769-270-15 10 .02 2- 4 3 .00 30 769-270-16 8 .68 2-4 3 . 00 26 769-270-20 7 . 04 2-4 3 . 00 21 769-270-21 7 . 07 2-4 3 . 00 21 769-280-04 5 .87 2-4 3 . 00 18 769-280-25 3 . 14 2-4 3 . 00 9 769-290-02 9 . 58 2-4 3 .00 29 769-290-03 1 . 18 2-4 3 .00 4 BERKEY 270 .92 2 . 81 762 769-290-04 '0 . 42 2-4 769-290-05 7 . 36 2-4 769-290-06 36 . 12 2-4 769-290-07 77 . 30 2-4 769-290-08 27 .97 2-4 769-290-10 5 . 35 2-4 769-290-11 39. 10 2-4 769-290-12 77 . 30 2-4 767-200-01 39. 00 0-2 769-290-09 2 .35 2-4 3 . 00 7 i 769-290-15 9. 25 COMM N/A 0 769-290-16 5.90 COMM N/A 0 i FOWLER 262 . 46 2 .46 646 769-300-01 34 .27 2-4 769-300-02 39. 10 2-4 769-300-03 77 . 30 2-4 769-300-04 33 .61 2-4 769-300-05 39.09 2-4 769-300-06 39 .09 2-4 769-300-07 38 . 21 2-4 3 . 00 115 749. 8 2 . 57 1 , 868 FISCAL IMPACT ANALYSIS - LA QUINTA ANNEXATION DATA BASE SUMMARY - RESORT SIZE DENSITY TOTAL PARCEL NO. [ACRE] RANGE DENSITY UNITS THE GROVE 304 . 03 1 . 55 448 769-270-09 20 . 15 2-4 769-270-17 111 . 11 2-4 769-280-03 29. 44 2-4 769-280-18 49.66 2-4 769-280-19 19. 51 2-4 769-280-24 74 . 16 2-4\COMM PGA WEST NICKLAUS EXPANSION 276.90 0-2 1 .99 550 PGA WEST #5 220. 00 0-2 2 .00 440 ------- ---- ----- TOTALS 800.9 1 . 80 1 ,438 1 FISCAL IMPACT ANALYSIS - LA QUINTA ANNEXATION DATA BASE SUMMARY - RESIDENTIAL SIZE TOTAL [ACRE] UNITS VERY LOW DENSITY 857 . 8 640 LOW DENSITY 749 . 8 1 ,868 RESORT 800 .9 1 , 438 2 , 408.6 3 ,945 A P P E N D I X B i CITY OF LA QUINTA ANNUAL BUDGET ANALYSIS FISCAL YEAR .1989-90 ESTIMATED POPULATION [JANUARY 1 , 19901 : 11 , 200 }fAtA ■ PER CAPITA COSTS : BUDGET PER CAPITA ADMINISTRATION 156,901 LESS : TRAVEL -8 , 500 FINANCE 217 ,669 LESS : RENT -8, 100 TRAVEL -2 ,000 ASST. CITY MGR -65,648 NON-DEPARTMENT 223 , 200 LESS : INSURANCE -80 ,000 EQUIPMENT 10,800 COMMUNITY SERVICES 62 , 754 LESS : RENT -3 ,600 TRAVEL -1 ,000 TOTAL ADMINISTRATION 502 , 476 $44 . 864 COMMUNITY SAFETY CODE ENFORCEMENT 130 ,810 LESS : RENT -3 ,600 TRAVEL -500 POLICE & FIRE 1 , 039,350 TOTAL COMM. SAFETY 1 , 166,060 $104 . 113 ANIMAL CONTROL 63 , 270 LESS : RENT -3 ,600 INSURANCE -1 , 800 TOTAL ANIMAL CONTROL 57 , 870 $5 . 167 PARKS & LANDSCAPE 187 , 186 LESS : ADMINISTRATION -43 , 124 ISLANDS/MEDIANS -6 , 300 INSURANCE -3 ,600 TOTAL PARKS & LAND . 134, 162 $11 .979