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CITY COUNCIL AGENDA ITEM NO. 22

Meeting Date: November 9, 2004

Subject/Title: Presentation of the General Fund Revenues and Comparison to General Fund Expenses prepared by Gruen Gruen + Associates

Prepared by: Kerry Breen, Accountant II

Submitted by: Pamela Ehler, Director of Finance and Information Systems

RECOMMENDATION
Presentation of the General Fund Revenues and Comparison to General Fund Expenses prepared by Gruen Gruen + Associates (GG+A).

PREVIOUS ACTION
Gruen Gruen + Associates is an economic consulting firm providing economic advisory services. Gruen Gruen + Associates has worked with the City on previous projects, including the City’s Comprehensive Economic Strategic Action Plan and Strategies and Programs for a Vital Town Center. They are familiar with the City, its staff and its financial strategies and goals. Other governmental clients of GG+A include the Cities of Antioch, Manteca, Oakland, Palo Alto, Pleasanton, San Diego, and Tracy.

On January 3, 2003, GG+A entered into an agreement for professional consulting services to assist with the 2003/2004 budget and to assist in developing a model to assist the City in monitoring it’s financial health for the years to come. Work on the 2003/2004 budget was completed, and since that time GG+A has been amending and finalizing the ten year fiscal model, titled “Forecast of General Fund Revenues and Comparison to General Fund Expenses”.

BACKGROUND
GG+A staff worked with the Department of Finance to prepare a ten year forecast of the City’s General Fund revenues and expenses. The purpose of the fiscal model is to ensure that the City remains financially healthy over the next decade as it transitions from a reliance on revenue sources from developer fees to a greater reliance on property and sales taxes from a newly expanded economic and commercial base.

GG+A’s revenue forecasts cover approximately 98% of General Fund revenues. The largest current revenue sources include property and sales taxes, building and engineering fees, and administration fees. The total General Fund revenue sources are forecast to grow from approximately $31.2 million in fiscal year 2004/2005 to approximately $46.8 million in 2013/2014. This $15.6 million increase equates to an average annual rate of growth of 4.2 percent per year.

There will be significant changes in the source of revenues for Brentwood over the next ten years:

 Property tax is forecast to increase from the second largest source of revenue at about 16 percent in 2004/2005 to the largest source of revenue at nearly 26 percent in 2013/2014.
 Sales tax is forecast to shift form the fourth largest source of General Fund revenue to the second largest source of revenue at nearly 19 percent of total revenue.
 Revenue attributable to building fees, currently the largest source of revenue at about 18 percent is forecast to decrease to about five percent of revenue in 2013/2014.
 Other growth related service revenues, including engineering fees (about 10.2 percent of current revenues) and planning fees (about 4.1 percent of current revenues) are forecast to decline from 14.3 percent to 4.6 percent in 2013/2014.
 Community Facilities District Revenue is forecast to grow in importance, from 1.4 percent of General Fund revenue to between seven percent and nine percent between 2008/2009 through 2013/2014.

The fiscal model forecasts expenditures in the City’s General Fund will grow from approximately $29.4 million in 2004/2005 to approximately $46.7 million in 2013/2014. Based on a population forecast provided by the City and regression analyses, GG+A was able to forecast future expenditures for the Administration, Community Development, Engineering, Finance, Parks, (Landscape), Public Works (Streets), and Police Departments. The City Attorney, Economic Development, and Non-Departmental components were derived from department surveys used to identify factors most likely to influence expenses.

The ten year fiscal model shows a surplus in every single year, with a cumulative surplus of approximately $4.3 million.


FISCAL IMPACT
None

Attachments:
General Fund Revenues and Comparison to General Fund Expenses

FORECAST OF GENERAL FUND
REVENUES AND COMPARISON TO
GENERAL FUND EXPENSES

Presented to

THE CITY OF BRENTWOOD

By

GRUEN GRUEN + ASSOCIATES
Urban Economists, Market Strategists
and Land Use/Public Policy Analysts

OCTOBER 5, 2004

APPLYING KNOWLEDGE
CREATING RESULTS
ADDING VALUE

TABLE OF CONTENTS

Page

Chapter I: INTRODUCTION AND SUMMARY 1

Revenue Sources 1
Special Revenue Forecasts and Transfers into General Fund 1
Forecast of Total Annual General Revenue 2
Sources of Expenditure 3
Comparison of Forecast Annual Revenue to Annual Expenditures 3
Conclusions 5
Chapter II: GENERAL FUND EXPENSE FORECAST BY
DEPARTMENT FOR 2004/05 – 2013/14 6

APPENDIX A: Forecast of Property Tax Revenue 11
APPENDIX B: Forecast of Transfer Tax Revenue 15
APPENDIX C: Sales and Use Tax Revenue Forecast 18
APPENDIX D: Transient Occupancy Tax Revenue Forecast 19
APPENDIX E: Franchise Fees Forecast 20
APPENDIX F: Forecast Home Occupation Permit Revenue 21
APPENDIX G: Forecast of Business License Tax Revenue 22
APPENDIX H: Forecast of Fines & Forfeitures Revenue 23
APPENDIX I: Investment Income 24
APPENDIX J: Forecast of Building Fees 25
APPENDIX K: Forecast of Engineering Fees 30
APPENDIX L: Forecast of Planning Fees Revenue 35
APPENDIX M: Forecast of Motor Vehicle In-Lieu Tax Revenue 37
APPENDIX N: Community Facilities District Revenue to General Fund 38
APPENDIX O: Administrative Fees/Other Revenue 39
APPENDIX P: Special Revenue 42

LIST OF TABLES

Page

Table I-1 Proportion of Forecast Total Revenue Summary 2

Table I-2 Summary of Forecast of Annual General Fund Revenue and
General Fund Expenditures 4

Table II-1 General Fund Expense Forecast 2003/04-2013/14 7

Table II-2 Forecast of Expenditures for City Attorney, Economic
Development and Non-Departmental 8

Table II-3 Comparison of GG+A Forecast of Expenditures to
Brentwood Budget for Fiscal Years 2003/04 9

Table II-4 Comparison of GG+A Forecast of Expenditures to
Brentwood Budget for Fiscal Years 2004/05 10

CHAPTER I

INTRODUCTION AND SUMMARY

REVENUE SOURCES

GG+A staff worked with the Brentwood Department of Finance to prepare 10-year forecasts of the following General Fund revenue sources:

• Residential and Non-residential Property Tax;
• Residential and Non-residential Property Transfer Tax;
• Sales Tax;
• Transient Occupancy Tax;
• Franchise Fees;
• Home Occupation Permit;
• Business License Tax;
• Fines and Forfeitures;
• Investment Income;
• Residential and Non-residential Building Fees;
• Residential and Non-residential Engineering Fees;
• Residential and Non-residential Planning Fees;
• Motor Vehicle In-Lieu Tax;
• Community Facilities District Revenue; and
• Administrative Fees/Other Revenue.

The forecasts of revenue sources cover all General Fund items other than revenue from the “Use of Money or Property” categories Rental Income and Royalties, both of which are relatively small revenue sources; relatively minor “Inter-Governmental Agencies” revenues (i.e., POST Reimbursement, Highway Maintenance, Police Grants, Civilian Grants, Police Activity League, SB-90 Reimbursement, Youth Diversion Grant, and Grant Projects); and several categories of “Current Services” (i.e., Reproduction Charges, Police Services, and Reimbursements for Services). Items such as grants, however, have been deducted from the relevant affected forecast expenditure items. The forecast revenue sources cover approximately 98 percent of General Fund Revenues. The key assumptions and results of the forecasts for the individual categories outlined above are summarized in the following pages of this document.

SPECIAL REVENUE FORECASTS AND TRANFERS INTO GENERAL FUND

We also have forecast two special revenue sources: Measure C and Gas Tax. Measure C revenue is forecast to grow from approximately $400,000 in 2004/05 to approximately $600,000 in 2013/14. This equates to an average annual growth rate of nearly four percent. As described below, a portion of Measure C revenue is transferred into the General Fund. Gas Tax revenue is forecast to grow at an average annual rate of nearly 4.4 percent, or nearly $400,000, from about $734,000 in 2004/05 to nearly $1,127,800 in 2013/14. Gas Tax revenue is transferred into the General Fund for expenditures related to engineering and roadway maintenance and therefore is also included in the General Fund sources summarized above.

FORECAST OF TOTAL ANNUAL GENERAL REVENUE

The General Fund revenue sources outlined above are forecast to grow from approximately $31.2 million in fiscal year 2004/05 to approximately $46.8 million in 2013/14. This approximately $15.6 million increase equates to an average annual rate of growth of 4.2 percent per year.

Proportion Each Revenue Source Comprises of Total General Fund Revenue

Table I-1 summarizes the forecasts in terms of the proportion each revenue category comprises of total General Fund revenues over the next ten years.

TABLE I-1
Proportion Of Forecast Total Revenue Summary
2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
% % % % % % % % % %

Property Tax 16.1 17.9 19.4 21.0 22.0 22.7 23.5 24.2 25.0 25.9
Property Transfer Tax 1.9 1.9 1.8 1.6 1.6 1.5 1.6 1.6 1.7 1.6
Fines 0.6 0.7 0.7 0.7 0.7 0.7 0.7 0.6 0.6 0.7
Home Occupation Permit 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1
Franchise Fees 1.7 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8
Transient Occupancy Tax 0.4 1.0 1.0 1.0 1.0 1.0 0.9 0.9 0.9 0.9
Motor Vehicle In-Lieu 6.5 6.7 6.8 6.8 6.8 6.8 6.8 6.8 6.8 6.8
Investment Income 6.4 7.3 8.2 8.2 8.0 8.0 7.9 7.9 7.8 7.9
Building Fees 18.0 15.4 12.7 9.6 7.9 6.4 6.3 6.2 6.1 5.2
Engineering Fees 10.2 7.9 6.3 5.1 4.2 3.9 3.8 3.8 3.5 3.3
Planning Fees 4.1 2.9 2.3 1.9 1.8 1.7 1.7 1.4 1.4 1.3
Sales Tax 14.1 12.3 13.1 14.4 15.2 16.1 16.9 17.5 18.1 18.8
Business License 1.6 2.1 2.4 2.5 2.6 2.7 2.7 2.8 2.9 3.0
Administration Fee 16.8 15.8 15.2 15.1 14.3 13.8 13.2 12.6 12.1 12.2
CFD Revenue 1.4 3.5 5.4 7.4 8.9 9.2 9.2 8.8 8.3 7.5
Gas Tax 2.4 2.4 2.4 2.4 2.4 2.4 2.4 2.4 2.4 2.4
Measure C 0.7 0.6 0.6 0.7 1.3 1.3 0.6 0.6 0.6 0.6
TOTAL REVENUES1 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
1 Figures may not sum to 100 percent due to rounding.
Source: City of Brentwood; Gruen Gruen + Associates

As reviewed below, property tax is forecast to increase from the second largest source of revenue at about 16 percent in 2004/05 to the largest source of revenue at nearly 26 percent in 2013/14. Sales tax is forecast to shift from the fourth largest source of General Fund revenue to the second largest source of revenue at nearly 19 percent of total revenue. Revenue attributable to building fees, currently the largest source of revenue at about 18 percent is forecast to decrease to about five percent of revenue in 2013/14. Other growth related service revenue sources, including engineering fees (at about 10 percent of current revenues) and planning fees (at 4.1 percent of current revenues) are forecast to decline from 14.4 percent to 4.6 percent in 2013/14. Administration fee revenue, currently the third largest source of revenue at 17 percent is forecast to decline but remain significant and the third largest source of revenues at 12.2 percent of total General Fund revenues in 2013/14. Community Facilities District revenue is forecast to grow in importance, from 1.4 percent of total General Fund revenue in 2004/05 to between seven percent and nine percent between 2008/09 through 2013/14. Investment income is estimated to range from about to seven to eight percent of total revenue throughout the forecast.

SOURCES OF EXPENDITURE

Chapter II presents a forecast of General Fund expenses by department, including the following:

• Administration;
• Community Development;
• Engineering;
• Finance;
• Parks (Landscape);
• Public Works (Streets); and
• Police.

The expenditure forecast also includes the Department of Finance projections of retiree medical costs. General Fund expenditures are forecast to increase from approximately $29.4 million in 2004/05 to about $46.7 million in 2013/14. This $17.3 million increase equates to an average annual escalation in expenditures of nearly 4.7 percent. The proportion each department makes up of total expenditures is forecast to be relatively stable. Police expenditures approximate 40 percent of total expenditures. Community Development and Public Works (Streets) represent the second and third largest components of expenditures at over 15 percent and 10 percent, respectively. Engineering, at nearly nine percent, Administration, at nearly eight percent, and Finance at five and half percent of total expenses represent the next largest components of expenditures.


COMPARISON OF FORECAST ANNUAL
REVENUE TO ANNUAL EXPENDITURES

The forecast of General Fund expenditures in Table I-2 suggests a cumulative surplus of about $3.1 million from 2004/05 through 2008/09. The forecast surplus in 2013/14 is estimated to result in a cumulative balance between revenues and expenditures with a surplus of approximately $4.3 million over the 10-year period.


TABLE I-2
SUMMARY OF FORECAST OF ANNUAL GENERAL FUND REVENUE AND GENERAL FUND EXPENDITURES

2004/05
$
2005/06
$
2006/07
$
2007/08
$
2008/09
$
2009/10
$
2010/11
$
2011/12
$
2012/13
$
2013/14
$
TOTAL REVENUES 31,166,396
34,177,086
36,630,149
37,990,607
39,910,634
41,174,364 42,655,321
44,253,157
45,755,998
46,821,652
TOTAL EXPENDITURES 29,431,347 33,324,410
36,325,957 37,954,052 39,880,105 41,068,268 42,554,410 43,736,868 45,243,729
46,733,995
NET SURPLUS/DEFICIT
1,735,049
852,676
304,192
36,555
30,529
106,096
100,911
516,289
512,269
87,657
Source: City of Brentwood; Gruen Gruen + Associates

CONCLUSIONS

The forecast and analysis of General Fund Revenue and expenditures points to the shift in the make-up and nature of revenue and expenditure sources. Brentwood can expect to transition from a reliance on revenue sources related to the rapid build-out of the community and associated expenditures with providing pre-development and related services. Brentwood can expect to transition to a greater reliance on property taxes, sales taxes, business license taxes, and other revenues related to the expansion of the community’s economic and commercial base and expenses of serving residents and businesses with ongoing municipal services.

CHAPTER II

GENERAL FUND EXPENSE FORECAST BY DEPARTMENT
FOR 2004/05 – 2013/14

This chapter first presents expenditure forecasts for the fiscal years 2004/05 through 2013/14 of the City’s departments in the General Fund. We then compare the forecast expenditures to the City’s forecast of General Fund expenses for fiscal year 2003/04 and fiscal year 2004/05.

GENERAL FUND EXPENDITURE FORECAST

Table II-1 presents a forecast of General Fund expenditures for 2004/05 to 2013/14. Based on the revised population forecast, we used regression equations to forecast future expenditures for the following departments:

 Administration;
 Community Development;
 Engineering;
 Finance (all divisions, except Non-Departmental);
 Parks (Landscape);
 Public Works (Streets); and
 Police.

For the City Attorney, Economic Development, and Non-Departmental forecasts, we drew on the department surveys to identify the factors most likely to influence expenses. For example, for the City Attorney department specific staffing additions were identified as needed in 2006/07 and 2008/09 based on the expected growth in Brentwood’s population. City of Brentwood finance staff provided the retiree medical forecast contained in Table 1. We allocated the Finance department expenditures between finance and purchasing and the other divisions of Community Facilities, Dime-a-Ride Bus, and Non-Departmental expenditures based on the proportion each made up of total finance expenditures in 2003/04.

As shown on Table II-1, General Fund expenditures are forecast to total $29.4 million in 2004/05. Expenses are forecast to grow at an annual average rate of 4.7 percent between 2004/05 and 2013/14. By 2013/14, expenditures are forecast to total approximately $46.7 million. Total expenditures are forecast to grow at well above the average growth rate between 2004/05 and 2008/09 and less than the average growth rate after 2008/09. The following departments are forecast to have annual growth rates of between four and six percent: Police, Engineering, Non-Departmental, and Economic Development. The Community Development, Public Works (Streets), Administration, Parks (Landscape), and Finance departments are forecast to have average annual expenditure growth of over six percent. The City Attorney department’s expenditures are forecast to grow at an average annual rate of approximately 8.5 percent. Retiree medical costs are forecast by the Finance Department to grow at an average annual rate of nearly 20 percent.

TABLE II-1
GENERAL FUND EXPENSE FORECAST 2003/04-2013/14
Fund Department Divisions Included City Budget GG+A Forecast
2003/04
($) 2003/04
($) 2004/05
($) 2005/06
($) 2006/07
($) 2007/08
($) 2008/09
($) 2009/10
($) 2010/11
($) 2011/12
($) 2012/13
($) 2013/14
($)
Administration City Clerk, City Manager, HR, Legislative 1,889,288 1,957,370 2,267,315 2,573,976 2,800,109 2,924,991 3,061,650 3,185,111 3,299,075 3,413,039 3,527,003 3,640,973
City Attorney 398,952 374,065 424,265 479,886 643,791 669,285 824,052 853,883 881,378 908,877 936,416 963,946
Economic Dev. 435,500 435,500 493,944 558,700 601,832 625,664 651,754 675,348 697,094 718,843 740,624 762,379
Community Development Building,
Planning Commission,
Planning 3,916,079 3,949,169 4,528,785 5,102,259 5,525,140 5,758,678 6,014,238 6,245,117 6,458,236 6,671,355 6,884,475 7,097,605
Engineering Construction Insp.,
Development Engineering, Engineering Services (Traffic) 2,599,628 2,839,124 2,600,940 3,057,864 3,294,800 3,480,874 3,584,495 3,768,451 3,838,257 4,008,062 4,177,868 4,247,683
Finance Finance, Purchasing 1,327,910 1,407,104 1,610,025 1,818,961 1,967,589 2,049,684 2,139,534 2,220,733 2,295,647 2,370,567 2,445,522 2,520,449
Non-Departmental Non-Departmental, Community Facilities, Dime-A-Ride Bus 1,182,997 1,247,810 1,427,759 1,613,040 1,744,843 1,817,645 1,897,322 1,969,329 2,035,763 2,102,200 2,168,670 2,235,116
Parks Landscape 1,054,253 1,096,741 1,269,411 1,440,252 1,566,230 1,635,802 1,711,934 1,780,714 1,844,203 1,907,692 1,971,182 2,034,674
Public Works Streets 2,012,256 1,925,272 2,867,882 3,107,922 3,384,927 3,482,679 3,689,649 3,786,288 3,975,494 4,064,699 4,153,905 4,343,115
Police Department2 Police 10,520,876 10,191,798 11,809,713 13,410,486 14,590,900
15,242,788
15,956,147 16,147,870 16,726,539 16,981,745 17,549,596 18,117,479
Retiree Medical 113,172 113,172 131,308 160,754 205,796 265,962 349,330 435,424 502,724 589,789 688,468 770,576
General Fund Total 25,450,911 25,537,125 29,431,347 33,324,410 36,325,957 37,954,052 39,880,105 41,068,268 42,554,410 43,736,868 45,243,729 46,733,995
1The Development Services Fund, which included the Engineering Department’s and Community Development Department’s expenses was merged into the General Fund on July 1, 2002.
2Police Department expense includes assumption that expenses not correlated with population such as services funded by grants represent 10 percent of total expenses until 2009 and then seven percent for 2010 and 2011 and then five percent annually thereafter.
Sources: City of Brentwood; Gruen Gruen + Associates.



Table II-2 shows the forecast expenditures for City Attorney, Economic Development, and Non-Departmental expenditures. Expenditures for these three departments are based on the annual rate of the forecast population increase between 2004/05 and 2013/14. Expenses are forecast to increase proportionally with increases in population except for the City Attorney department in which added costs of needed personnel are included for fiscal year 2006/07 and fiscal year 2008/09.

TABLE II-2
Forecast of Expenditures for City Attorney, Economic Development
and Non-Departmental

Fiscal Year
Population
#
Annual Increase
%
City Attorney1
$ Non-Departmental2
$ Economic Development
$
2003/04 37,704 14.18 374,065 967,824 435,500
2004/05 42,763 13.42 424,265 1,097,706 493,944
2005/06 47,768 13.11 479,886 1,241,615 558,700
2006/07 51,458 7.72 643,791 1,337,468 601,832
2007/08 53,497 3.96 669,285 1,390,432 625,664
2008/09 55,727 4.17 824,052 1,448,413 651,754
2009/10 57,742 3.62 853,883 1,500,845 675,348
2010/11 59,602 3.22 881,378 1,549,172 697,094
2011/12 61,462 3.12 908,877 1,597,507 718,843
2012/13 63,322 3.03 936,416 1,645,911 740,624
2013/14 65,182 2.94 963,946 1,694,257 762,379
1 Assumes increase of $126,858 in 2006/07 and 2008/09 to account for the addition of an assistant attorney and other support staff.
2 Non-Departmental expenditures are grouped together with Community Facilities and Dime-a-Ride Bus expenditures on Table II-1.
Source: City of Brentwood; Gruen Gruen + Associates

Table II-3 presents a comparison of the GG+A forecast to the Brentwood Budget for 2003/04. The overall forecast is within one-half of one percent of the total Budget. Variances of between three and five percent apply to the Administrative and Legislative, Parks (Landscape), Public Works (Streets), and Police Departments. Variances between five percent and nine percent apply to the City Attorney, Engineering and Finance Departments, as well as Non-Departmental expenses.


TABLE II-3
Comparison of GG+A Forecast of Expenditures
to Brentwood Budget for Fiscal Years 2003/04

GG+A Forecast
Brentwood Budget Difference
%
Department 2003/04 2003/04
Administration & Legislative
1,957,370
1,889,288
3.48
City Attorney 374,065 398,952 6.65
Economic Development 435,500 435,500 0.00
Community Development 3,949,169 3,916,079 0.83
Engineering 2,839,124 2,599,628 8.44
Finance
1,407,104
1,327,910
5.62
Parks (Landscape)
1,096,741
1,054,253
3.87
Public Works (Streets) 1,925,272 2,012,256 4.52
Police Department 10,191,798 10,520,876 3.23
Retiree Medical 1 113,172 113,172 0.00

Non-Departmental
1,247,810 1,182,997 5.19

Total
25,537,125 25,450,911 0.34
1 Estimate of retiree medical expenditure provided by Brentwood Finance Department.
Sources: City of Brentwood; Gruen Gruen + Associates.

Table II-4 presents a comparison of the GG+A forecast to the 2004/05 Budget. The overall forecast is within approximately five percent of the Budget. Variances of over ten percent exist for the Public Works (Streets), Finance, and Non-Departmental areas. Departments for which the GG+A forecast vary from the Budget by approximately nine percent include Administrative and Legislative and Community Development. The forecast for Economic Development is within approximately seven percent of the Budget.


TABLE II-4
Comparison of GG+A Forecast of Expenditures
to Brentwood Budget for Fiscal Years 2004/05

GG+A Forecast
Brentwood Budget Difference
%
Department 2004/05 2004/05
Administration & Legislative
2,267,315
2,059,964
9.15
City Attorney 424,265 426,300 0.48
Economic Development 493,944 460,621 6.75
Community Development
4,528,785
4,117,754
9.08
Engineering 2,600,940 2,738,700 -4.09
Finance
1,610,025
1,445,949
11.35
Parks (Landscape)
1,269,411
1,225,071
3.49
Public Works (Streets) 2,867,882 2,441,551 14.90
Police Department 11,809,713 11,874,293 -0.55
Retiree Medical 1 131,308 131,308 0.0

Non-Departmental

1,427,759

1,108,298

28.82


General Fund Total

29,431,347

28,029,809

5.0
1 Estimate of retiree medical expenditure provided by Brentwood Finance Department.
Sources: City of Brentwood; Gruen Gruen + Associates.


APPENDIX A

FORECAST OF PROPERTY TAX REVENUE

ASSUMPTIONS

Residential
• 13.4% property tax allocation factor of 1% property tax to Brentwood’s General Fund.

• Annual increase of 2% for 90% of existing residential property tax.

• Annual increase of 4% for 10% of existing residential property tax to account for resale value increase.

• $440,000 median home price in 2004 per Brentwood Finance Department; property price appreciation of 4% annually applied to new home construction.

• New home sales of

Year #
2004/05 1,500
2005/06 1,400
2006/07 1,200
2007/08 900
2008/09 750
2009/10 600
2010/11 600
2011/12 600
2012/13 600
2013/14
500


Non-Residential Property Tax

• Estimated average per square foot office property value based on construction cost for building, engineering, and planning fees of $94 and annual absorption of office space in square feet as follows:

Year Square Feet
2004/05 12,096
2005/06 274,950

2006/07 147,659

2007/08 150,000
2008/09 154,500

2009/10 159,135
2010/11 163,909
2011/12 168,826
2012/13 173,891
2013/14 179,108

• Estimated average per square foot commercial property value based on construction cost for building, engineering, and planning fees of $89 and annual absorption of commercial space in square feet as follows:

Year Square Feet
2004/05 673,500
2005/06 221,300
2006/07 200,000
2007/08 200,000
2008/09 200,000
2009/10 200,000
2010/11 200,000
2011/12 200,000
2012/13 200,000
2013/14 200,000


• Estimated average per square foot industrial property value based on construction cost for building, engineering, and planning fees of $73 and annual absorption of industrial space as follows:

Year Square Feet
2004/05 79,422
2005/06 109,500
2006/07 83,000
2007/08 83,000
2008/09 84,000

2009/10 90,000

2010/11 95,000
2011/12 98,000

2012/13 100,000
2013/14 110,000

• Annual increase for new space development costs/property value of 3%.

• Annual escalation in property value of 2%.


RESULTS OF PROPERTY TAX REVENUE FORECAST



Year Existing Residential $ New Residential $
Office $
Industrial $
Commercial $
Total $
2004/05 4,023,922 884,400 1,641 8,026 82,978 5,000,967
2005/06 4,115,260 1,834,835 40,093 19,584 112,721 6,122,494
2006/07 4,208,860 2,689,368 62,147 28,874 132,372 7,121,623
2007/08 4,304,784 3,365,853 85,627 38,617 161,946 7,956,826
2008/09 4,403,096 3,945,241 110,930 48,943 192,918 8,701,129
2009/10 4,503,863 4,429,445 138,176 60,466 225,342 9,357,292
2010/11 4,607,154 4,921,826 167,491 73,138 259,271 10,028,881
2011/12 4,713,039 5,433,903 199,009 86,781 294,762 10,727,494
2012/13 4,821,591 5,966,462 232,873 101,318 331,872 11,454,116
2013/14 4,932,886 6,436,405 269,234 117,848 370,660 12,127,035



APPENDIX B
FORECAST OF TRANSFER TAX REVENUE

FORECAST OF RESIDENTAL PROPERTY TRANSFER TAX REVENUE

ASSUMPTIONS

• $0.55 per $1,000 of assessed valuation to Brentwood’s General Fund.
• Assessed valuation based on property tax forecast.
• 15% of residential units turnover annually.

RESULTS







Year


Existing Residential Assessed Valuation
$ Transfer Tax @ $0.55 per $1,000 of Existing Residential Assessed Valuation
$


New
Residential Assessed Valuation
$ Transfer Tax @ $0.55 per $1,000 of New Residential Assessed Valuation
$



Total Residential Transfer Tax
$
2004/05 404,033,147 222,218 660,000,000 363,000 585,218
2005/06 488,630,187 268,747 640,640,000 352,352 621,099
2006/07 571,866,233 314,526 571,084,800 314,097 628,623
2007/08 648,562,378 356,709 445,446,144 244,995 601,705
2008/09 712,930,194 392,112 386,053,325 212,329 604,441
2009/10 771,866,713 424,527 321,196,366 176,658 601,185
2010/11 824,834,441 453,659 334,044,221 183,724 737,383
2011/12 879,920,878 483,956 347,405,990 191,073 675,030
2012/13 937,210,773 515,466 361,302,229 198,716 714,182
2013/14 996,792,264 548,236 313,128,599 172,221 720,456



FORECAST OF NONRESIDENTAL PROPERTY TRANSFER TAX REVENUE

ASSUMPTIONS

• $0.55 per $1,000 of assessed valuation to Brentwood’s General Fund.
• Assessed valuation for new non-residential construction based on construction cost-derived market value.
• 15% of assessed valuation of nonresidential facilities turnover annually.

RESULTS






Year
New
Non-Residential Turnover Assessed Valuation
$ Transfer Tax @ $0.55 per $1,000 of New Non- Residential Assessed Valuation
$
2004/05 10,339,868 5,687
2005/06 19,240,895 10,582
2006/07 24,932,347 13,713
2007/08 31,940,768 17,567
2008/09 39,374,031 21,656
2009/10 45,070,126 24,789
2010/11 55,792,465 30,686
2011/12 64,793,764 35,637
2012/13 74,337,371 40,886
2013/14 84,569,500 46,513




FORECAST OF RESIDENTIAL AND
NONRESIDENTIAL PROPERTY TRANSFER TAX REVENUE



Year
Total Residential Transfer Tax
$
Total
Non- Residential Transfer Tax
$

Total Transfer Tax
$
2004/05 585,218 5,687 590,905
2005/06 621,099 10,582 631,681
2006/07 628,623 13,713 642,336
2007/08 601,705 17,567 619,272
2008/09 604,441 21,656 626,097
2009/10 601,185 24,789 625,973
2010/11 737,383 30,686 668,069
2011/12 675,030 35,637 710,666
2012/13 714,182 40,886 755,068
2013/14 720,456 46,513 766,970


APPENDIX C

SALES AND USE TAX REVENUE FORECAST

ASSUMPTIONS

• 1% Sales Tax Rate.

• Annual Sales will increase following opening of retail developments identified to occur between 2004 and 2006 and the implementation of the Highway 4 Bypass, anticipated to be completed in 2007–2008. Assumes average annual growth rate of 9.7 percent resulting in per capita tax receipts increasing from $82 in 2004/05 to $135 in 2013/14.

Forecast of Future Retail Space (Square Feet)

Year Square Feet
2004/05 673,500
2005/06 221,300
2006/07 133,100
2007/08 200,000
2008/09 200,000
2009/10 200,000
2010/11 200,000
2011/12 200,000
2012/13 200,000
2013/14 200,000

RESULTS


Year
Sales Tax Revenue $
2004/05 3,500,000
2005/06 4,200,000
2006/07 4,800,000
2007/08 5,450,000
2008/09 6,050,000
2009/10 6,650,000
2010/11 7,200,000
2011/12 7,750,000
2012/13 8,300,000
2013/14 8,800,000

APPENDIX D

TRANSIENT OCCUPANCY TAX REVENUE FORECAST

ASSUMPTIONS

• Tax Rate 10%.
• Based on estimates of rooms, occupancy and average daily room rates.
• Annual growth in hotel room revenue 3%.

RESULTS


Year Transient Occupancy Tax Revenue $
2004/05 125,003
2005/06 346,950
2006/07 357,359
2007/08 368,080
2008/09 379,122
2009/10 390,496
2010/11 402,211
2011/12 414,277
2012/13 426,705
2013/14 439,506


APPENDIX E

FRANCHISE FEES FORECAST

ASSUMPTIONS

• Franchise fees for some utility services are based on a percentage of gross revenues (e.g., 5% for Comcast, and between 1% and 2% for PG&E).

• Franchise fee revenue correlates robustly with population.

• Used regression equation based on past 10 years population and franchisee fees revenue to forecast future franchise fees revenue based on forecast population.

RESULTS


Year Franchise Fee Revenue $
2004/05 533,991
2005/06 601,819
2006/07 651,835
2007/08 679,456
2008/09 709,683
2009/10 737,125
2010/11 762,196
2011/12 787,403
2012/13 812,609
2013/14 837,816


APPENDIX F

FORECAST HOME OCCUPATION PERMIT REVENUE

ASSUMPTIONS

• Home occupation permit revenue strongly correlates with population.

• Used a regression equation based on past 10 years of home occupation permit revenue and population to forecast future home occupation revenue given population forecast.

RESULTS


Year Home Occupation Permit Revenue
$
2004/05 22,327
2005/06 25,481
2006/07 27,806
2007/08 29,091
2008/09 30,496
2009/10 31,772
2010/11 32,937
2011/12 34,109
2012/13 35,281
2013/14 36,453


APPENDIX G

FORECAST OF BUSINESS LICENSE TAX REVENUE

ASSUMPTIONS

• Based on staff study for new ordinance passed by voters in November 2002 and effective January 2003. Ordinance included a phase-in provision for some businesses to pay 40 percent of the tax the first year, 70 percent the second year, and 100 percent the third year.

• Estimated average annual growth rate in business license revenues of 10.79 percent.

RESULTS


Year Business License Tax Revenue
$
2004/05 500,000
2005/06 700,000
2006/07 875,000
2007/08 952,875
2008/09 1,024,341
2009/10 1,092,971
2010/11 1,162,922
2011/12 1,236,922
2012/13 1,312,829
2013/14 1,392,912


APPENDIX H

FORECAST OF FINES & FORFEITURES REVENUE

ASSUMPTIONS

• 2003/04 per capita Budget figures are best approximation of future fines and forfeiture revenue.

• Future fines and forfeitures revenue based on per capita figure of $4.64 multiplied by forecast population.

RESULTS


Year Fines & Forfeitures Revenue
$
2004/05 198,418
2005/06 221,642
2006/07 238,767
2007/08 248,224
2008/09 258,573
2009/10 267,969
2010/11 276,553
2011/12 285,183
2012/13 293,814
2013/14 302,444



APPENDIX I

INVESTMENT INCOME

ASSUMPTIONS

• Local Agency Investment Fund is currently yielding 1.6 percent, but historically has yielded a much higher rate. Investment returns are expected to rise in concert with interest rate increases. Forecast provided by the Department of Finance.


RESULTS


Year Investment Income
$
2004/05 2,000,000
2005/06 2,480,000
2006/07 3,000,800
2007/08 3,090,824
2008/09 3,183,549
2009/10 3,279,055
2010/11 3,377,427
2011/12 3,478,750
2012/13 3,583,112
2013/14 3,690,605


APPENDIX J
FORECAST OF BUILDING FEES

FORECAST OF RESIDENTIAL BUILDING FEES

ASSUMPTIONS

• Typical dwelling unit of 2,200 square feet, garage of 625 square feet, and 200 lineal feet of fence.
• Wood frame dwelling construction cost of $67.60 per square foot, air conditioning of $3 per square foot and sprinklers at $1.90 per square foot for total cost for dwelling of $72.50 per square foot. Cost of garage of $19.90 per square foot and cost of fence of $6.50 per lineal foot. Total per unit construction cost of $173,237.50.
• Building permit fee of $1,471.59 based on construction cost.
• 3% annual escalation in construction cost.
• Plan check fees at 50% of building permit fees.
• Office automation at 1% of building permit and plan check fees.
• Electrical, plumbing, mechanical, and construction water fees at $291.44 each per unit for a total of $924 per unit.
• Total residential building fees per unit of $3,543 in 2004/05 including 10% for fees for items/sources not explicitly estimated.
• Residential units processed:

Year #
2004/2005 1,500
2005/2006 1,400
2006/2007 1,200
2007/2008 900
2008/2009 750
2009/2010 600
2010/2011 600
2011/2012 600
2012/2013 600
2013/2014 500


RESULTS OF RESIDENTIAL BUILDING FEES REVENUE FORECAST





Year

Building Permit Fee Revenue
$

Plan Check
Revenue
$

Subtotal Building Fees
$


Office Automation
$ Electrical, Plumbing, Mechanical, Construction Water Fees
$



Total Fees1
$
2004/05 2,273,607 1,136,803 3,410,410 34,104 1,386,435 5,314,044
2005/06 2,185,694 1,092,847 3,278,541 32,785 1,294,006 5,065,865
2006/07 1,929,655 964,828 2,894,483 28,945 1,109,148 4,435,833
2007/08 1,490,659 745,329 2,235,988 22,360 831,861 3,399,230
2008/09 1,279,482 639,741 1,919,223 19,192 693,218 2,894,796
2009/10 1,054,293 527,147 1,581,440 15,814 554,574 2,367,011
2010/11 1,085,922 542,961 1,628,883 16,289 554,574 2,419,720
2011/12 1,118,500 559,250 1,677,750 16,777 554,574 2,474,011
2012/13 1,152,055 576,027 1,728,082 17,281 554,574 2,529,931
2013/14 988,847 494,423 1,483,270 14833 462,145 2,156,273
1 Total includes additional 10% building revenue from other sources.



FORECAST OF NONRESIDENTIAL BUILDING FEES

ASSUMPTIONS

• Office:
Building permit, plan check, energy plan check, and building office automation fees as follows:

Year Square Feet Fee Per Square Foot
2004/05 274,950 $0.35
2005/06 147,659 $0.36
2006/07 150,000 $0.37
2007/08 154,500 $0.38
2008/09 159,135 $0.39
2009/10 163,909 $0.41
2010/11 168,826 $0.42
2011/12 173,891 $0.43
2012/13 179,108 $0.44
2013/14 184,481 $0.46

Electrical, plumbing, and mechanical permit fees total $0.20 per square foot.

• Commercial:
Building permit, plan check, energy plan check, and building office automation fees as follows:

Year Square Feet Fee Per Square Foot
2004/05 221,300 $0.29
2005/06 133,100 $0.30
2006/07 200,000 $0.31
2007/08 200,000 $0.32
2008/09 200,000 $0.32
2009/10 200,000 $0.33
2010/11 200,000 $0.34
2011/12 200,000 $0.35
2012/13 200,000 $0.37
2013/14 200,000 $0.38

Electrical, plumbing, and mechanical permit fees total $0.20 per square foot.


• Industrial:
Building permit, plan check, energy plan check, and building office automation fees as follows:

Year Square Feet Fee Per Square Foot
2004/05 109,500 $0.19
2005/06 83,000 $0.20
2006/07 83,000 $0.20
2007/08 84,000 $0.21
2008/09 90,000 $0.21
2009/10 95,000 $0.22
2010/11 98,000 $0.23
2011/12 100,000 $0.23
2012/13 110,000 $0.24
2013/14 115,000 $0.25

Electrical, plumbing, and mechanical permit fees total $0.20 per square foot.

• 3% escalation in valuation/fees.

RESULTS OF NONRESIDENTIAL BUILDING FEES REVENUE FORECAST





Year


Office Fees
$

Commercial Fees
$


Industrial Fees
$ Electrical, Plumbing, Mechanical Permit Fees
$ Total Nonresidential Building Permit Fees
$
2004/05 96,233 63,823 20,805 121,150 302,010
2005/06 53,231 39,538 16,243 72,752 181,764
2006/07 55,697 61,193 16,730 86,600 220,220
2007/08 59,089 63,028 17,440 87,700 227,258
2008/09 62,688 64,919 19,246 89,827 236,680
2009/10 66,505 66,867 20,925 91,782 246,079
2010/11 70,556 68,873 22,233 93,365 255,027
2011/12 74,852 70,939 23,368 94,778 263,937
2012/13 79,411 73,067 26,475 97,822 276,775
2013/14 84,247 75,259 28,509 99,896 287,912



SUMMARY OF RESIDENTIAL AND
NONRESIDENTIAL BUILDING FEES REVENUE





Year Total Residential Building Fees Revenue
$ Total Non- Residential Building Fees Revenue
$

Total Building Fees Revenue
$
2004/05 5,314,044 302,010 5,616,054
2005/06 5,065,865 181,764 5,247,629
2006/07 4,435,833 220,220 4,656,054
2007/08 3,399,230 227,258 3,626,488
2008/09 2,894,796 236,680 3,131,476
2009/10 2,367,011 246,079 2,613,090
2010/11 2,419,720 255,027 2,674,748
2011/12 2,474,011 263,937 2,737,949
2012/13 2,529,931 276,775 2,806,706
2013/14 2,156,273 287,912 2,444,185


APPENDIX K
FORECAST OF ENGINEERING FEES

FORECAST OF RESIDENTIAL ENGINEERING FEES REVENUE

ASSUMPTIONS

• Residential units processed for tentative subdivision map:

Year #
2004/05 1,450
2005/06 1,300
2006/07 1,050
2007/08 825
2008/09 675
2009/10 600
2010/11 600
2011/12 600
2012/13 550
2013/14 500

• Residential units processed for plan check:

Year #
2004/05 1,400
2005/06 1,200
2006/07 900
2007/08 750
2008/09 600
2009/10 600
2010/11 600
2011/12 600
2012/13 500
2013/14 500

• Per unit tentative subdivision map, commercial review, encroachment permit, grading permit, inspection, lot line adjustment, base map revision, and plan check fees based on 2003/04 revenues and units processed and extrapolation of relationships to the forecast of future units processed annually (including 10% factor for items/sources not explicitly estimated).
RESULTS OF RESIDENTIAL ENGINEERING FEES




Year

Plan Check
$ Tentative Subdivision Map
$
Commercial Review
$
Encroachment Permit
$
Grading Permit
$

Inspection
$
Lot Line Adjustment
$
Base Map Revision
$ Total Engineering Fees
$
2004/05 405,528 43,778 15,061 51,501 12,860 1,848,273 12,405 20,764 2,651,187
2005/06 358,023 32,834 11,295 46,174 11,530 1,657,073 11,122 18,616 2,361,333
2006/07 276,573 27,361 9,413 37,294 9,312 1,338,405 8,983 15,036 1,894,615
2007/08 237,392 21,889 7,530 29,302 7,317 1,051,604 7,058 11,814 1,511,297
2008/09 195,611 21,889 7,530 23,975 5,987 860,403 5,775 9,666 1,243,919
2009/10 201,479 21,889 7,530 21,311 5,321 764,803 5,133 8,592 1,139,665
2010/11 207,523 21,889 7,530 21,311 5,321 764,803 5,133 8,592 1,146,313
2011/12 213,749 18,241 6,275 21,311 5,321 764,803 5,133 5,133 1,147,768
2012/13 183,468 18,241 6,275 19,535 4,878 701,069 4,705 4,705 1,040,652
2013/14 188,972 18,241 6,275 17,759 4,434 637,336 4,278 4,278 972,901


FORECAST OF NONRESIDENTIAL ENGINEERING FEES REVENUES

ASSUMPTIONS

• Office:
Engineering tentative map review, conditional use permit/design review, grading plan check, grading permit, final map plan check, improvement plan check, engineering inspection, cash grading bond, payment and performance bond fees estimated as follows:

Year Fee
2004/05 $0.85
2005/06 $0.92
2006/07 $0.92
2007/08 $0.95
2008/09 $0.98
2009/10 $1.01
2010/11 $1.04
2011/12 $1.07
2012/13 $1.10
2013/14 $1.13

• Commercial:
Engineering tentative map review, conditional use permit/design review, grading plan check, grading permit, final map plan check, improvement plan check, engineering inspection, cash grading bond, payment and performance bond fees estimated as follows:

Year Fee
2004/05 $0.83
2005/06 $0.85
2006/07 $0.88
2007/08 $0.91
2008/09 $0.93
2009/10 $0.96
2010/11 $0.99
2011/12 $1.02
2012/13 $1.05
2013/14 $1.08



• Industrial:

Engineering tentative map review, conditional use permit/design review, grading plan check, grading permit, final map plan check, improvement plan check, engineering inspection, cash grading bond, payment and performance bond fees estimated as follows:

Year Fee
2004/05 $0.91
2005/06 $1.05
2006/07 $1.05
2007/08 $1.08
2008/09 $1.11
2009/10 $1.15
2010/11 $1.18
2011/12 $1.22
2012/13 $1.25
2013/14 $1.29

• 3% escalation in valuation/fees.

RESULTS OF NONRESIDENTIAL ENGINEERING FEES


Year Total Nonresidential Engineering Fees
$
2004/05 517,032
2005/06 336,783
2006/07 401,259
2007/08 418,643
2008/09 442,410
2009/10 466,218
2010/11 488,842
2011/12 511,343
2012/13 544,952
2013/14 573,837

SUMMARY OF FORECAST RESIDENTIAL
AND NONRESIDENTIAL ENGINEERING FEES



Year Total Residential Engineering Fees
$ Total Non- Residential Engineering Fees
$ Total Engineering Fees
$
2004/05 2,651,187 517,032 3,168,219
2005/06 2,361,333 336,783 2,698,116
2006/07 1,894,615 401,259 2,295,875
2007/08 1,511,297 418,643 1,929,940
2008/09 1,243,919 442,410 1,686,329
2009/10 1,139,665 466,218 1,605,883
2010/11 1,146,313 488,842 1,635,155
2011/12 1,147,768 511,343 1,659,111
2012/13 1,040,652 544,952 1,585,604
2013/14 972,901 573,837 1,546,738


APPENDIX L
FORECAST OF PLANNING FEES REVENUE

FORECAST OF RESIDENTIAL PLANNING FEES REVENUE

ASSUMPTIONS

• Residential units processed:

Year #
2004/05 1,200
2005/06 900
2006/07 750
2007/08 600
2008/09 600
2009/10 600
2010/11 600
2011/12 500
2012/13 500
2013/14 500

• Residential planning fees (e.g., tentative subdivision map, tentative parcel map, conditional use permit, temporary use permit, design review, variance, general plan amendment, rezone, annexation, amendments, time extensions, administrative sign, mitigated negative declaration, special services, etc.) based on relationships found to apply to units processed in 2003/04 plus 30 percent for items/sources not explicitly estimated and for potential future increases.

RESULTS OF RESIDENTIAL PLANNING FEES



Year Tentative Subdivision Map
$
Design Review
$
Special Services
$

Rezone
$ Summary
of Other Planning Fees
$ Total Residential Fees
$
2004/05 312,032 131,055 141,908 46,297 283,419 1,097,654
2005/06 234,024 98,291 106,431 34,723 212,565 823,240
2006/07 195,020 81,909 88,693 28,936 177,137 686,034
2007/08 156,016 65,527 70,954 23,149 141,710 548,827
2008/09 156,016 65,527 70,954 23,149 141,710 548,827
2009/10 156,016 65,527 70,954 23,149 141,710 548,827
2010/11 156,016 65,527 70,954 23,149 141,710 548,827
2011/12 130,013 54,606 59,128 19,290 118,093 457,356
2012/13 130,013 54,606 59,128 19,290 118,093 457,356
2013/14 130,013 54,606 59,128 19,290 118,093 457,356

FORECAST OF NONRESIDENTIAL PLANNING FEES REVENUE

ASSUMPTIONS

• Office, Commercial and Industrial:

Planning conditional use permit, sign permit/review, design review, plan check, peer review deposit, landscape plan, landscape plan check, environmental-related, including mitigation monitoring, reports and special studies and CCC Clerk filing fee- fixed base amount of $46,068 plus assumes an increase in planning fees effective 2004/05 as a result of a fee study which is currently in progress.

RESULTS OF NONRESIDENTIAL PLANNING FEES


Year Total Nonresidential Planning Fees
$
2004/05 165,845
2005/06 165,845
2006/07 165,845
2007/08 165,845
2008/09 165,845
2009/10 165,845
2010/11 165,845
2011/12 165,845
2012/13 165,845
2013/14 165,845

SUMMARY OF FORECAST OF RESIDENTIAL AND
NONRESIDENTIAL PLANNINGS FEES REVENUES



Year Total Residential Planning Fees
$ Total Non-Residential Planning Fees
$ Total Planning Fees
$
2004/05 1,097,654 165,845 1,263,499
2005/06 823,240 165,845 989,085
2006/07 686,034 165,845 851,878
2007/08 548,827 165,845 714,672
2008/09 548,827 165,845 714,672
2009/10 548,827 165,845 714,672
2010/11 548,827 165,845 714,672
2011/12 457,356 165,845 623,201
2012/13 457,356 165,845 623,201
2013/14 457,356 165,845 623,201



APPENDIX M
FORECAST OF MOTOR VEHICLE IN-LIEU TAX REVENUE

ASSUMPTIONS

The motor vehicle in-lieu tax approximation is allocated to the City through complex formulas that consider population, street miles, the number of registered vehicles, and other factors. The best approximation of the added revenue from the motor vehicle in-lieu tax is based on population.

The forecast reflects use of regression equation based on population and motor vehicle in-lieu tax of the past 10 years and projected population.

RESULTS


Year Motor Vehicle In-Lieu
Tax Revenue
$
2004/05 2,021,489
2005/06 2,283,719
2006/07 2,477,051
2007/08 2,583,881
2008/09 2,700,719
2009/10 2,806,292
2010/11 2,903,744
2011/12 3,001,196
2012/13 3,098,647
2013/14 3,196,099


APPENDIX N
COMMUNITY FACILITIES DISTRICT REVENUE TO GENERAL FUND

ASSUMPTIONS

• 100% of Community Facilities District (CFD) revenue accrues to General Fund through fiscal year 2008/09, then 90 percent of CFD dollars accrues to General Fund in 2009/10, then 80 percent of CFD dollars accrues to General Fund in 2010/11 with further reductions of 10 percent each year thereafter until 50 percent of CFD dollars accrues to General Fund in 2013/14.

RESULTS


Year Communities Facilities District Revenue Net to General Fund
$
2004/05 450,000
2005/06 1,201,788
2006/07 1,974,125
2007/08 2,815,690
2008/09 3,552,394
2009/10 3,799,544
2010/11 3,913,584
2011/12 3,911,156
2012/13 3,785,166
2013/14 3,528,234


APPENDIX O
ADMINISTRATIVE FEES/OTHER REVENUE

ASSUMPTIONS

• Three percent annual growth for all other revenue items other than CIP Administration Fee and Facility Administration Fee.
• CIP and Facility Administration Fee are assumed to contribute 90 percent of total revenue to General Fund in fiscal year 2008/09, 80 percent in 2009/10 and to reduce 10 percent per year thereafter so that in 2013/14, 50 percent of revenue will accrue to General Fund.

RESULTS




Year Water Adm. Fee
$
Wastewater Adm. Fee
$ Solid Waste Adm. Fee.
$
Park Ent.
Adm. Fee
$
RDA Adm. Fee
$ CCC Drainage Adm. Fee
$
Facility
Fee Adm.
$
2004/05 669,500 540,750 540,750 154,500 257,500 14,754 1,013,520
2005/06 689,585 556,973 556,973 159,135 265,225 15,196 1,043,926
2006/07 710,273 573,682 573,682 163,909 273,182 15,652 1,075,243
2007/08 731,581 590,892 590,892 168,826 281,377 16,122 1,107,501
2008/09 753,528 608,619 608,619 173,891 289,819 16,605 1,026,653
2009/10 776,134 626,877 626,877 179,108 298,513 17,104 939,958
2010/11 799,418 645,684 645,684 184,481 307,468 17,617 847,137
2011/12 823,401 665,054 665,054 190,016 316,693 18,145 747,901
2012/13 848,103 685,006 685,006 195,716 326,193 18,690 641,948
2013/14 873,546 705,556 705,556 201,587 335,979 19,250 661,207

RESULTS OF ADMINISTRATIVE FEES/OTHER REVENUE cont.




Year
Mainten. Reimb.
$ Bond Debt Service Admin.
$
Attorney Services
$
Other Income
$
School Contribut.
$
Assessment Dist. Admin.
$
CIP
Fee Admin.
$
2004/05 360,500 373,160 103,000 87,550 54,453 164,102 731,300
2005/06 371,315 384,355 106,090 90,177 56,087 169,025 753,239
2006/07 382,454 395,885 109,273 92,882 57,769 174,095 775,836
2007/08 393,928 407,762 112,551 95,668 59,502 179,318 799,111
2008/09 405,746 419,995 115,927 98,538 61,287 184,698 740,776
2009/10 417,918 432,594 119,405 101,494 63,126 190,239 678,222
2010/11 430,456 445,572 122,987 104,539 65,020 195,946 611,247
2011/12 443,370 458,939 126,677 107,675 66,970 201,824 539,644
2012/13 456,671 472,708 130,477 110,906 68,979 207,879 463,194
2013/14 470,371 486,889 134,392 114,233 71,049 214,115 477,091


RESULTS OF ADMINISTRATIVE FEES/OTHER REVENUE cont.



Year Bypass Authority Administration
$ Total Administrative Fee/Other Revenue
$
2004/05 175,000 5,240,338
2005/06 180,250 5,397,548
2006/07 185,658 5,559,475
2007/08 191,227 5,726,259
2008/09 196,964 5,701,666
2009/10 202,873 5,670,443
2010/11 208,959 5,632,216
2011/12 215,228 5,586,591
2012/13 221,685 5,533,161
2013/14 228,335 5,699,156

SUMMARY OF GENERAL FUND REVENUE, EXPENDITURE AND
MEASURE C REVENUE NOT INCLUDED IN GENERAL FUND
2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
Property Tax $5,000,967 $6,122,494 $7,121,623 $7,956,826 $8,701,129 $9,357,292 $10,028,881 $10,727,494 $11,454,116 $12,127,035
Property Transfer Tax 590,905 631,681 642,336 619,272 626,097 625,973 668,069 710,666 755,068 766,970
Fines 198,418 221,642 238,767 248,224 258,573 267,969 276,553 285,183 293,814 302,444
Home Occupation Permit 22,327 25,481 27,806 29,091 30,496 31,772 32,937 34,109 35,281 36,453
Franchise Fees 533,991 601,819 651,835 679,456 709,683 737,125 762,196 787,403 812,609 837,816
Transient Occupancy Tax 125,003 346,950 357,359 368,080 379,122 390,496 402,211 414,277 426,705 439,506
Motor Vehicle In-Lieu 2,021,489 2,283,719 2,477,051 2,583,881 2,700,719 2,806,292 2,903,744 3,001,196 3,098,647 3,196,099
Investment Income
2,000,000
2,480,000
3,000,800
3,090,824
3,183,549
3,279,055
3,377,427
3,478,750
3,583,112
3,690,605
Building Fees 5,616,054 5,247,629 4,656,054 3,626,488 3,131,476 2,613,090 2,674,748 2,737,949 2,806,706 2,444,185
Engineering Fees 3,168,219 2,698,116 2,295,875 1,929,940 1,686,329 1,605,883 1,635,155 1,659,111 1,585,604 1,546,738
Planning Fees 1,263,499 989,085 851,878
714,672
714,672
714,672
714,672
623,201
623,201
623,201
Sales Tax 3,500,000 4,200,000 4,800,000
5,450,000
6,050,000 6,650,000 7,200,000 7,750,000
8,300,000
8,800,000
Business License 500,000 700,000 875,000 952,875 1,024,341 1,092,971 1,162,922 1,236,186 1,312,829 1,392,912
Administration Fee 5,240,338 5,397,548 5,559,475 5,726,259 5,701,666 5,670,443
5,632,216
5,586,591
5,533,161
5,699,156
CFD Revenue 450,000
1,201,788
1,974,125
2,815,690
3,552,394
3,799,544
3,913,584
3,911,156
3,785,166
3,528,234
Gas Tax 733,936 821,846 886,659 922,472 961,641 997,033 1,029,703 1,062,373 1,095,042 1,127,712
Measure C (Portion of)
201,250
207,288
213,506
276,557
498,747
534,754
240,303
247,512
254,937
262,586
TOTAL REVENUES 31,166,396
34,177,086
36,630,149
37,990,607
39,910,634
41,174,364
42,655,321
44,253,157
45,755,998
46,821,652
TOTAL EXPENDITURES 29,431,347 33,324,410
36,325,957 37,954,052 39,880,105 41,068,268 42,554,410 43,736,868 45,243,729
46,733,995
NET SURPLUS/DEFICIT
1,735,049
852,676
304,192
36,555
30,529
106,096
100,911
516,289
512,269
87,657
Measure C (not included in General Fund)
208,658 246,094 271,926
226,586
23,766
5,261 315,868
324,815 333,546 342,054


APPENDIX P
SPECIAL REVENUE

ASSUMPTIONS

Special revenue gas tax is included because the funds received from the State of California Street and Highway Code must be spent for street maintenance, construction, and engineering. Local jurisdictions receive Local Street Maintenance Fund allocation once their Growth Management Compliance checklist has been adopted by the Authority. The allocation is based on a formula under which 18 percent of the budgeted sales tax revenues are distributed to local jurisdictions on the basis of their relative road mileage and population. These funds can only be spent on local streets and roads, transit operations, growth management planning and compliance, bicycle and pedestrian trails, and parking facilities. A portion such Measure C revenue is estimated by the Finance Department to accrue to the General Fund as described above.

The gas tax revenue is transferred into the General Fund for expenditures related to engineering and roadway maintenance.

Gas Tax revenue and Measure C revenue is best estimated as a function of population. A regression equation based on the past 10 years revenue from these sources and population is used to predict future revenue given the forecast population.

GAS TAX FORECAST


Year Gas Tax Revenue
$
2004/05 733,936
2005/06 821,846
2006/07 886,659
2007/08 922,472
2008/09 961,641
2009/10 997,033
2010/11 1,029,703
2011/12 1,062,373
2012/13 1,095,042
2013/14 1,127,712





MEASURE C FORECAST


Year Measure C Revenue
$
2004/05 409,908
2005/06 453,382
2006/07 485,432
2007/08 503,143
2008/09 522,513
2009/10 540,015
2010/11 556,171
2011/12 572,327
2012/13 588,483
2013/14 604,640

 

City Administration
City of Brentwood City Council
150 City Park Way
Brentwood, CA 94513
(925) 516-5440
Fax (925) 516-5441
E-mail allcouncil@brentwoodca.gov