Laserfiche WebLink
CITY OF EVERETT FISCAL ANNEXATION ANALYSIS <br /> Recreation Charges. For projections of revenue from recreation charges within the City, the analysis <br /> estimated the per capita revenue at $13.02 for 2008, based on the City's budgeted revenues. This <br /> per capita revenue is expected to increase at the general inflation rate of 3.5%. It is assumed that <br /> some annexation area residents are already using Everett parks and recreation facilities. Therefore, for <br /> additional revenue projections in the case of annexation, we have assumed that only 50% of the <br /> annexation area residents will be new users of parks and recreation services. It is important to note <br /> that it is difficult to estimate this source of revenue without a survey of recreation users, and it is <br /> possible that the amount projected may be overstated. <br /> Liquor Board Profits and Excise Tax. According to Washington State law, a share of the state <br /> profits from liquor sales and state collected excise tax on liquor is distributed directly to cities on a per <br /> capita basis. Currently the revenue estimated in the City's budget projects the per capita distributions <br /> for liquor profits and excise taxes to be $11.69 in 2008. These per capita estimates are assumed to <br /> increase with inflation. <br /> Gambling Tax. Based on Berk & Associates' analysis of Washington State Gambling Commission <br /> records, it is estimated that there would be no gambling tax received from the areas analyzed in <br /> Scenarios 3 and 4 (Eastmont, Hilton Lake, Rugg's Lake, and Larimer). <br /> Property Management Revenues. The City currently collects property management fees on space <br /> within its facilities that is leased to other users. Because this revenue is based on fixed property we <br /> have assumed no increase upon annexation. Current City revenues are projected to increase with <br /> inflation. <br /> Leasehold Excise Tax and Admissions Tax.The City currently collects small amounts of leasehold <br /> excise tax and admissions tax. It is assumed that these revenues will continue to accrue to the City <br /> and increase with inflation. To be conservative, it is also assumed that the contemplated annexation <br /> areas will not contribute to these revenue sources. <br /> Transit Tax. The City's transit service is charged a tax on the fare revenues it generates. We are <br /> assuming no additional transit tax revenues, even though the City will be receiving transit sales tax <br /> revenues and will potentially provide transit services in the annexed areas. <br /> Grants. The grants considered in this analysis are for operational expenditures only, not those for <br /> capital projects. Future grants are estimated on a per capita basis and applied to the annexation area <br /> population. The current per capita revenues, according to the 2008 City budget, are $0.88. We have <br /> assumed that these will increase at the rate of inflation. It is important to note that it is difficult to <br /> estimate this source of revenue as grants tend to fluctuate widely from year to year. <br /> Business Licenses. The City of Everett charges a fee to obtain a business license for operation <br /> within the city limits. These revenues are projected based on the ratio of total employment in the City <br /> and the annexation areas. Annual employment estimates are generated from land use and <br /> development assumptions within the model. <br /> nu Final Report:October 2008 Page 32 <br />