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CITY OF EVERETT FISCAL ANNEXATION ANALYSIS <br /> Exhibit 10 <br /> Revenue per Capita for City and Annexation Areas <br /> - - - -City <br /> 52000 • <br /> Scenario 1I <br /> i Scenario 2 <br /> $1,500 <br /> -- ---_Scenario 3 <br /> Scenario 4 <br /> 51,000 l <br /> Scenario 5 <br /> _ I � <br /> 5500 Scenario 6 <br /> Scenario 7 <br /> 5- <br /> 2009 2012 2015 2018 2021 2024 2027 <br /> Source:Berk&Associates analysis, 2008 <br /> While the revenues per capita are much lower than the current City average, there are significant <br /> economies of scale in extending services to new areas. As a result, the feasibility of any of these <br /> annexation scenarios will depend on how efficiently the City can deliver services to these areas. The <br /> initial scenario screening analysis concluded that with the current assumptions regarding revenues and <br /> a simplified assumption of simply extending current levels of service in the City to the annexation <br /> areas, annexation under all scenarios will likely result in negative fiscal impacts to the City (after the <br /> 10-year period of sales tax credit). <br /> 5.2 Further Evaluation of Scenarios <br /> Once the initial screening results demonstrated that revenues in the annexation areas are much lower <br /> than in the City of Everett, the next logical step was to focus on the part of the equation that the City <br /> controls directly — the cost of services. Typically, the City would want to leverage any potential <br /> economies of scale to provide services in the annexation areas at a lower average cost than the <br /> current city, while providing urban levels of service to those areas. <br /> r Final Report:October 2008 Page 17 <br />