2008/10/15 Council Agenda Packet

CITY OF EVERETT FISCAL ANNEXATION ANALYSIS In general, there is very little capacity for commercial development in Eastmont, Hilton Lake, Rugg's Lake, and Larimer. In addition, there is no land zoned "Industrial" within any of the potential annexation areas. 4.0 BASELINE OUTLOOK FOR CITY OF EVERETT Assuming no annexation, the City of Everett is estimated to experience a balanced budget with some modest revenue surplus in later years. All cities across the State are different in terms of tax bases, mixes of commercial and residential land uses, and fiscal policies; however, many have been experiencing the trend where municipal service costs are growing at faster rates than revenues. Everett, despite the impact of 10/0 property tax growth limit, has built a solid foundation for fiscal balance through its current revenue and level of service policy framework. Exhibit 6 shows the City's estimated core revenues and expenditures in the long run. Exhibit 6 Estimated Core Revenues and Expenditures for City of Everett No Annexation (2008-2027) $350 M $300 M General Fund Resources — — General Fund Expenditures E i $100 M $50 M x r-j;:f Property Tax $0 M 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 Source:Berk&Associates Analysis, 2007-08 Exhibit 7 shows the estimated costs and revenues for the City without annexation every five years over the study period. The base City is estimated to have fairly balanced revenues and costs through most of the study period, with a 2% surplus by 2025. ni Final Report:October 2008 Page 13