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2023 LQ Sphere of Influence - Fiscal Impact Analysis of AnnexationSTUDY SESSION ITEM NO. 2 City of La Quinta CITY COUNCIL MEETING: April 4, 2023 STAFF REPORT AGENDA TITLE: DISCUSS FISCAL IMPACTS ANALYSIS OF ANNEXATION OF LA QUINTA SPHERE OF INFLUENCE AND POTENTIAL ADDITION TO THE SPHERE RECOMMENDATION Discuss fiscal impacts analysis of annexation of La Quinta Sphere of Influence and potential addition to the sphere; and provide Staff with direction regarding potential next steps. EXECUTIVE SUMMARY • On August 2, 2022, the City Council reviewed the status of the City's Sphere of Influence, and directed Staff to: • Prepare a Fiscal Impact Analysis to consider the financial costs and revenues associated with the annexation of the existing Sphere of Influence (Sphere); and • Consider potential additional lands for an extension of the Sphere. • On September 20, 2022, the City procured the services of Terra Nova Planning & Research, Inc. to complete the Fiscal Impact Analysis. FISCAL IMPACT The fiscal impacts associated with annexation are provided in Attachment 1. BACKGROUND/ANALYSIS Existing Sphere of Influence The City's Sphere consists of 7,665± acres generally located east of Monroe, south of Avenue 52, north of Avenue 60, and west of Van Buren and Harrison Streets. The majority of the Sphere is designated for low density residential development and has an Agricultural/Equestrian overlay. Of the 7,665± acres in the Sphere, approximately 1,407 acres are developed, 5,429 acres are in agriculture, and 828 acres are vacant desert lands. Much of the developed acreage is under-utilized, consisting of nurseries, single family homes on large lots, etc. For purposes of analysis, under-utilized and agricultural lands were assumed to be redeveloped when calculating costs and revenues for the fiscal impact analysis. The Sphere would result in 18,752 housing units, 3.0 million square feet of commercial space, and 985,000 square feet of industrial space. In addition, other assumptions were made: 303 1. There is no credible methodology available to anticipate the amount of development that will occur on an annual basis, particularly when one considers the very low growth experienced in the Sphere in the past. Therefore, assumptions for costs and revenues were based on the percentage of development that could occur. Four scenarios were developed: a. Immediately following annexation/existing development only. b. 10% of all developable land developed. c. 50% of all developable land developed. d. 100% of all land developed/built out. 2. The City assigned land use and zoning designations to the Sphere during the last General Plan Update. No changes were made to those designations. 3. Low density residential lands were assumed to develop at 3 units per acre, which is typical of La Quinta planned developments. 4. Medium density residential lands were assumed to develop at 8 units per acre, which is the top of the range for that designation. 5. Commercial and Industrial lands were assumed to develop with 25% and 35% building coverage, respectively. 6. Transient occupancy tax was assumed based on 10% of all residential units being short term vacation rentals. 7. The calculations were undertaken with and without property tax revenue. The earliest bond termination date is 2037. There are multiple bond issues, and no certainty that they will be retired as stated. 8. The City receives Redevelopment Property Tax Trust Fund (RPTTF) payments from the County for the south La Quinta annexation area (Andalusia, Trilogy, etc.). Based on research undertaken by the Finance Department, an estimated RPTTF has been assumed which reflects the current ratio of RPTTF the City receives as reimbursement for County redevelopment area pass through and residual income. 9. For existing conditions, property tax and transient occupancy tax currently collected were obtained from the County, and calculated assuming that the City would collect them (at the City's reduced rate for property tax). 10. Costs for fire, police, general government and public works (parks and street maintenance) were calculated on a per capita basis, assuming the City's current household size of 2.37 persons. A complete description of the assumptions is provided in Section 2.B. of Attachment 1. 304 As shown in Table 1, with no property tax revenue other than RPTTF, the Sphere is revenue -negative at annexation at approximately $160,100 annually. With 10% of all lands developed, that rises to an annual loss of $682,000, assuming that the County bonds have still not been retired. The gap grows as development occurs, and at build out, should the City still not receive property tax, the annual deficit would be $6.3 million. This is due to the lack of property tax, and the increased costs of providing services, which is directly tied to the increased population. Table 1 Sphere of Influence Total Potential Costs/Revenues (No Property Tax) Summary Table Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) ANNUAL REVENUES General Fund: Property Tax County RPTTF $285,000 $285,000 $285,000 $285,000 Property Tax in Lieu of VLF $152,999 $732,857 $3,052,290 $5,951,581 Property Transfer Tax $0 $844,799 $3,379,196 $4,223,995 Sales Tax & Measure G $0 $1,319,108 $8,244,426 $16,488,852 Transient Occupancy Tax $437,183 $1,632,611 $6,414,323 $12,391,462 Franchise Fees $55,741 $293,929 $1,246,679 $2,423,540 Subtotal, General Fund $930,923 $5,108,304 $22,621,913 $41,764,430 Special Revenue Funds: Gas Tax $30,399 $161,576 $686,283 $1,328,092 Measure A $0 $4,295 $26,842 $53,685 Subtotal, Special Revenue Funds $30,399 $165,870 $713,126 $1,381,776 Total, All Revenues $991,721 $5,440,045 $24,048,165 $44,527,982 ANNUAL COSTS Costs of General Government $377,608 $2,007,062 $8,524,877 $16,672,146 Costs of Public Works $54,875 $291,671 $1,238,858 $2,422,840 Costs of Police Protection $483,833 $2,571,667 $10,923,003 $21,362,174 Costs of Fire Protection $235,505 $1,251,757 $5,316,764 $10,398,022 Total Annual Costs $1,151,821 $6,122,157 $26,003,502 $50,855,183 Balance at Phase Buildout -$160,100 -$682,112 -$1,955,337 -$6,327,200 305 If property tax is assumed to be received by the City, the annexation of the Sphere is revenue -negative upon annexation, because of the low property tax collected at inception without RPTTF, but quickly becomes revenue -positive with development, as shown in Table 2. Table 2 Sphere of Influence Total Potential Costs/Revenues (With Property Tax) Summary Table Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) ANNUAL REVENUES General Fund: Property Tax $256,710 $1,229,303 $5,119,675 $9,982,640 Property Tax in Lieu of VLF $152,999 $732,857 $3,052,290 $5,951,581 Property Transfer Tax $0 $844,799 $3,379,196 $4,223,995 Sales Tax & Measure G $0 $1,319,108 $8,244,426 $16,488,852 Transient Occupancy Tax $437,183 $1,632,611 $6,414,323 $12,391,462 Franchise Fees $55,741 $293,929 $1,246,679 $2,423,540 Subtotal, General Fund $902,633 $6,052,607 $27,456,588 $51,462,070 Special Revenue Funds: Gas Tax $30,399 $161,576 $686,283 $1,328,092 Measure A $0 $4,295 $26,842 $53,685 Subtotal, Special Revenue Funds $30,399 $165,870 $713,126 $1,381,776 Total, All Revenues $963,431 $6,384,348 $28,882,840 $54,225,623 ANNUAL COSTS Costs of General Government $377,608 $2,007,062 $8,524,877 $16,672,146 Costs of Public Works $54,875 $291,671 $1,238,858 $2,422,840 Costs of Police Protection $483,833 $2,571,667 $10,923,003 $21,362,174 Costs of Fire Protection $235,505 $1,251,757 $5,316,764 $10,398,022 Total Annual Costs $1,151,821 $6,122,157 $26,003,502 $50,855,183 Balance at Phase Buildout -$188,390 $262,191 $2,879,338 $3,370,440 Given the schedule for the retirement of bonds, it is likely that property tax would begin to flow to the City at some point between 10% additional development and 50% additional development. Therefore, it can be assumed that at least at annexation, the Sphere would 306 be revenue -negative by approximately $160,100 annually. Because the costs have been calculated on a per capita basis, and the City will achieve economies of scale from existing staffing to serve the small existing Sphere population, it is likely that the Sphere would be close to revenue -neutral at annexation. Potential Addition to the Sphere The second request made by the City Council was whether an expansion area to the Sphere should be considered. To that end, staff analyzed existing Indio and Coachella city limits and Spheres, and looked at areas that would be contiguous to our existing Sphere (and potential future City limits). This effort resulted in a potential Sphere expansion bounded by Airport Boulevard on the north, Harrison Street on the west, Avenue 62 on the south, and Highway 86 on the east. These lands are currently not in any existing Sphere, and include the Jacqueline Cochran Airport and its surroundings. These lands represent a part, but not all, of the Thermal/Oasis Community of Interest. In total, this area would be 6,472 acres, and includes two existing County Specific Plans: a portion of the Kohl Ranch Specific Plan, and the Thermal 551 Specific Plan. Because these lands have not been zoned by the City, zoning designations were assumed that are generally consistent with the existing County zones, or the approved Specific Plans. This area includes 2,578± acres of Very Low, Low, Medium and High density residential development potential, 236 acres of Community Commercial land, and 404 acres of Industrial land, as well as almost 1,500 acres of airport property (which is property tax exempt). The expanded Sphere would result in 8,806 housing units, 2.6 million square feet of commercial space, and 6.1 million square feet of industrial space. The same revenue and cost assumptions as those described above were used to calculate costs and revenues. Although the intent of the expanded Sphere is not for immediate annexation, the fiscal impact analysis was completed to assess the area's viability. As shown in Tables 3 (No Property Tax) and 4 (With Property Tax), annexation of the expanded Sphere area would be modestly revenue -negative if annexed immediately (with or without property tax revenues), but revenue -positive in the long run. This is due to the lower number of residential units, and the higher commercial and industrial square footage, which result in less population, and therefore lower per capita costs for fire, police, general government and public works maintenance. 307 Table 3 Expanded Sphere Total Potential Costs/Revenues Summary Table (No Property Tax) Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) ANNUAL REVENUES General Fund: Property Tax Potential County RPTTF $250,000 $250,000 $250,000 $250,000 Property Tax in Lieu of VLF $137,141 $444,420 $1,673,535 $3,200,306 Property Transfer Tax $0 $168,338 $673,354 $841,692 Sales Tax & Measure G $0 $1,128,279 $7,051,742 $14,105,081 Transient Occupancy Tax $0 $539,495 $2,697,473 $5,394,946 Franchise Fees $36,199 $149,746 $603,933 $1,171,667 Subtotal, General Fund $423,340 $2,680,278 $12,950,037 $24,963,692 Special Revenue Funds: Gas Tax $19,741 $81,665 $329,359 $638,976 Measure A $0 $3,673 $22,959 $45,924 Subtotal, Special Revenue Funds $19,741 $85,338 $352,318 $684,899 Total, All Revenues $462,823 $2,850,954 $13,654,672 $26,333,491 ANNUAL COSTS Costs of General Government $245,223 $1,014,424 $4,091,227 $7,937,230 Costs of Public Works $35,636 $147,419 $594,548 $1,153,459 Costs of Police Protection $314,207 $1,299,790 $5,242,126 $10,170,046 Costs of Fire Protection $152,940 $776,136 $3,268,922 $6,384,904 Total Annual Costs $748,006 $3,237,769 $13,196,823 $25,645,640 Balance at Phase Buildout -$285,183 -$386,815 $457,850 $687,851 308 Table 4 Expanded Sphere Total Potential Costs/Revenues Summary Table (with Property Tax) Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) ANNUAL REVENUES General Fund: Property Tax $230,103 $745,671 $2,807,944 $5,369,640 Property Tax in Lieu of VLF $137,141 $444,420 $1,673,535 $3,200,306 Property Transfer Tax $0 $168,338 $673,354 $841,692 Sales Tax & Measure G $0 $1,128,279 $7,051,742 $14,105,081 Transient Occupancy Tax $0 $539,495 $2,697,473 $5,394,946 Franchise Fees $36,199 $149,746 $603,933 $1,171,667 Subtotal, General Fund $403,443 $3,175,949 $15,507,981 $30,083,332 Special Revenue Funds: Gas Tax $19,741 $81,665 $329,359 $638,976 Measure A $0 $3,673 $22,959 $45,924 Subtotal, Special Revenue Funds $19,741 $85,338 $352,318 $684,899 Total, All Revenues $442,926 $3,346,625 $16,212,616 $31,453,131 ANNUAL COSTS Costs of General Government $245,223 $1,014,424 $4,091,227 $7,937,230 Costs of Public Works $35,636 $147,419 $594,548 $1,153,459 Costs of Police Protection $314,207 $1,299,790 $5,242,126 $10,170,046 Costs of Fire Protection $152,940 $776,136 $3,268,922 $6,384,904 Total Annual Costs $748,006 $3,237,769 $13,196,823 $25,645,640 Balance at Phase Buildout -$305,080 $108,856 $3,015,794 $5,807,491 309 NEXT STEPS The purpose of this Study Session is to provide an opportunity for questions, and to seek direction from Council on potential next steps. Should the Council wish to explore the annexation of the Sphere, and/or the expansion of the Sphere to the east, staff would request an opportunity to research more thoroughly the annexation process, and return with a follow-up study session to outline the process and timeline for such an effort. Prepared by: Approved by: Attachment: Nicole Sauviat Criste, Consulting Planner Danny Castro, Design and Development Director 1. Fiscal Impacts of Annexation of the City of La Quinta Sphere of Influence and Potential Addition to the Sphere 310 ATTACHMENT 1 FISCAL IMPACTS OF ANNEXATION OF THE CITY OF LA QUINTA SPHERE OF INFLUENCE AND POTENTIAL ADDITION TO THE SPHERE 4 i atiorai Prepared for City of La Quinta 78495 Calle Tampico La Quinta, CA 92253 Prepared by Terra Nova Planning & Research, Inc. 42635 Melanie Place, Suite 101 Palm Desert, CA 92211 March 2023 311 Table of Contents 1. INTRODUCTION 4 A. Introduction 4 B. Background 4 2. PROJECT DESCRIPTION AND BACKGROUND 5 A. Existing Sphere of Influence 5 B. Potential Addition to Sphere of Influence 7 3. Existing Sphere of Influence: Cost/Revenue Analysis 10 A. Purpose 10 B. Assumptions and Methodology 10 C.Cost/Revenue Analysis 12 i. Annual Costs and Revenues: No Property Tax 12 ii. Annual Costs and Revenues: With Property Tax 13 iii.One-Time Revenues 15 4. Potential Expanded Sphere of Influence: Cost/Revenue Analysis 16 A. Purpose 16 B. Assumptions and Methodology 16 C.Cost/Revenue Analysis 18 i. Annual Costs and Revenues: No Property Tax 18 ii. Annual Costs and Revenues: With Property Tax 19 iii.One-Time Revenues 21 LIST OF TABLES Table 1 Existing Sphere of Influence Land Use Summary 7 Table 2 Potential Expanded Sphere of Influence Land Use Summary 9 Table 3 Sphere of Influence 13 Table 4 Sphere of Influence 14 Table 5 Existing Sphere 15 Table 6 Expanded Sphere Total Potential Costs/Revenues Summary Table (No Property Tax) 19 Table 7 Expanded Sphere Total Potential Costs/Revenues Summary Table (with Property Tax) 20 Table 8 Expanded Sphere Development Impact Fees (Total By Phase, One Time Revenues) 21 2 312 APPENDICES Appendix A Existing Sphere: Detailed Cost/Revenue Tables A Appendix B Expanded Sphere: Detailed Cost/Revenue Tables B 3 313 1. INTRODUCTION A. Introduction This fiscal impact analysis has been prepared at the direction of La Quinta's City Council, in order to assess the potential impacts associated with the future annexation of its Sphere of Influence (Sphere). In addition, the City Council directed that staff consider whether the Sphere should be expanded. This request resulted in the identification of additional lands east of the City's existing Sphere as having the potential to be considered for a Sphere Amendment. The existing Sphere and potential additional Sphere are considered separately in this analysis. B. Background Since the adoption of the City's General Plan in 2013, the City has focused on development within its corporate limits. Although the Sphere was included in the General Plan, little activity has occurred in this area. The City has had concerns that the lack of property tax revenue in the Sphere could result in significant negative fiscal impacts if the area were to be annexed. The lack of property tax revenue is the result of multiple bonds issued by the Riverside County Redevelopment Agency, against which lands in the Sphere and elsewhere were pledged. Under California law at the time, cities and counties could bond against the anticipated growth in an area, and use the incremental increase in property tax resulting from increases in property values to pay off the bonds. The bond proceeds were to be used either for affordable housing projects, or to fund infrastructure and other improvements that promoted economic development. With the termination of Redevelopment, outstanding bond obligations remained, and the County has continued to pay off these obligations with incremental increases in property values. The Sphere is part of the County's Desert Communities Project Area (DCPA). There are multiple bonds in place, with the earliest end date being 2037. As a result, the City cannot expect to collect property taxes for any Sphere lands it annexes until at least that time. The County does, however, provide the City with some revenue for lands within the DCPA. Every year, the County tabulates the amount of property tax generated in the DCPA, pays its obligations, and provides municipal agencies with a share of the remaining income under the Redevelopment Property Tax Trust Fund (RPTTF). The City currently receives RPTTF funds from the County for lands annexed in the 1990s, which included what is now Trilogy, Andalusia and other lands in its southeast corner. 4 314 The purpose of this fiscal impact analysis is to assist the City in determining whether the potential annexation of all or a portion of the Sphere should be considered in the immediate future. Although other considerations must be weighed, as briefly discussed in Section 5 of this document, the potential for the annexation of the Sphere to be a negative draw on the City's budget has been and continues to be a significant determinant. 2. PROJECT DESCRIPTION AND BACKGROUND A. Existing Sphere of Influence The City's existing Sphere extends east of Monroe, south of Avenue 52, and north of Avenue 60. The eastern boundary is irregular, and extends to Van Buren Street between Avenue 52 and Airport Boulevard, and Harrison Street between Airport Boulevard and Avenue 62. Y :trd ZONING Residential RVL Very Low Density Residential / Rk Sew Density Residential RM Medium Density Residential MIR RMH Medium High Density Residential J ▪ RH High Density Residential RC Cone Residential Village Commercial Nonceidentiallage Commercial Nonresidential Districts ▪ CP Pegiunal Commercial117 CC Community Commercial CN Neighborhood Commercial Cr TeuristGommercial CP Commercial Park NI CO Office Commercial MC Major Community Facilities l industrial S pecial Pmpnse Districts PR Parks and Recreation 05 Open Space ▪ GC Golf Course Ra FP Flvodplain WI SOI LOAg Equestrian Overlay Mined Use Overlay 5 315 The Sphere is bordered by the City of Indio to the north, and the City of Coachella to the northeast. It includes a portion of the Vista Santa Rosa Community of Interest, an unincorporated area with its own Community Council, which advises the County on land use and other decisions within its boundary. Vista Santa Rosa's boundary generally extends south of Avenue 50 and north of Avenue 66, between Monroe Street and Harrison Street. The Sphere encompasses 7,665± acres. The land was included in the last General Plan, and was designated primarily for residential land uses. The Zoning Map provided consistent designations. The area has experienced limited growth since adoption of the General Plan, and remains VISTA SANTA ROSA COMMUNITY COUNCIL 115 XA�E i�2ENDA OR rArvE �ELrvXEEA� 1 P�oil Cify of Indio ssrvonve -a rZ1 8� IIII INDUSTRILW CCil In oAVE r�s -■54111ArvE 1111 111 E City of Ili :I C AIRPORT BL ' Coachella ' I. ■ 8 ... r; uuEcory ,, — Clfyyof La(Quinfd Xi*A _ r I— ... wiXAVE THERMAL C. C. IC EIR �rvoAVRE� s■ aamnv[ =VISTA SANTA ROSA C. C. HIGHWAYS Q COMMUNITY COUNCILS ROAD CENTERLINES WATERBODIES ► earRAVF SaTRAvc ED CITIES -1 OASIS C. C. w' _IIII1 primarily vacant or in agricultural production, with pockets of residential development. Table 1 provides a breakdown of the Sphere acreage based on the City's Zoning designations. Lands have been identified as vacant (desert lands), developed, or in agriculture. As noted in the table, some developed areas consist of nurseries, single family homes on lands designated for commercial or industrial land uses, which are expected to redevelop in the long term, as land values and development pressures increase. For purposes of this analysis, therefore, these lands have been assumed to be developable in the Zone in which they occur. Conversely, the lands designated Major Community Facilities consist of two schools, which are assumed to remain, and have no development potential in the future. Table 1 also summarizes the development potential in the existing Sphere, based on the densities and intensities allowed in the City's Zoning designations. 6 316 Table 1 Existing Sphere of Influence Land Use Summary Zoning Designation Vacant (Acres) Dev. (Acres) Ag. (Acres) Existing Units Develop- able Acres Future Units/SF Total Low Density Residential (Ag Overlay, 3/AC) 782.0 1,284.4 5,200.3 412 5,982 17,947 18,359 High Density Residential (16/AC) 19.1 5.5 24.61 393 393 Community Commercial 4.9 76.3 158.0 11 236.62 2,576,574 2,576,574 Neighborhood Commercial 21.9 11.6 6.4 2 39.93 434,511 434,511 Major Community Facilities - 29.8 - Industrial 64.6 64.6 984,892 984,892 Total 827.8 1,407.5 5,429.3 425.0 1 Developed acreage 2 Developed acreage development. Assume 3 Developed acreage redevelopment. is currently a nursery. Assume future redevelopment. consists of single family dwellings, 2.51 acres of commercial redevelopment of all but 2.51 acres. consisted of existing nursery and single family dwellings. Assume future B. Potential Addition to Sphere of Influence In addition to the existing Sphere, this analysis also considers the potential of adding to the Sphere, referred to in this analysis as "Expanded Sphere." The area being considered extends east of the existing Sphere, between Harrison Street on the west, Highway 86 on the east, Airport Boulevard on the north, and Avenue 62 on the south. The area is currently not designated in any Sphere of Influence, 7 317 but is within the Thermal Community of Interest. The Thermal community is much larger than the proposed expansion area, however, extending well beyond Highway 86 to the All American Canal, and from Avenue 52/Avenue 54 on the north to Avenue 66 on the south. The Expanded Sphere consists of approximately 6,472 acres, for which the County has established Zoning designations. These designations include two Specific Plans. Generally, if an area is annexed, the land owners, County and Local Agency Formation Commission (LAFCo) will expect that existing County zoning will be maintained, or converted to the City's equivalent. In this case, the Zoning designations have been converted to City equivalents, including the lands covered by Specific Plans. Table 2 provides a summary of the City's Zoning designations within the Expanded Sphere area, showing the vacant, developed and agricultural acreages, and the development assumptions used in this analysis. Lands designated by the County for agriculture or large -lot residential 0 THERMAL COMMUNITY COUNCIL Pk ,.. ,.. r$;�� ■ €Till C City of Coachella PIERCE ST ; .,� i - N OOIR°►;; ESINEI.GS•. `�c\. 1 TREIri 52NDAVE 11 r I11 le 54THA I ;: ■� .a ■■ ARP. ■ 'I BLV I _ . \1 58TH AVE 50TH AVE YY 60TH AVE �• w wr 61ST AVE C9 o a n MD AVE y9C 64TH AVE en 0 MECCA C.0 m 63150 AVE 0 65THAVE 8611 111 66TH AVE ■, ,I■■II eASTSCC 195 w� =THERMAL C. C. CITIES I seTM AVE 1- 1 COMMUNITY -- HIGHWAYS ROAD CENTERLINES COUNCILS WATERBODIES NCR o ,1 NV• ... n vino s,am w 6.000 un via .moo.. e .,. .,m , City Zoning for Proposed SOI 0.e.Ide.W1 LJ 0.VL Ll y la. 08reme RedieNd (0 ] a-0 Pl low perW0 P.8816.4r 12i du) . RH Ro.Ss Daesey 0..A. 88 f48 a1 . PIW 81e068 12 . per•t, Rrsdml lell 012 dul . we Hly, lk^46 ,tI(li16 dot . PC Care P2102006u Wive Cememer2Rl ▪ VC "Ne Cann,. MellreWenYu pktrkte ▪ CRPegwxl Can . CC Cemn.eln.Conmmml ▪ Cli NNPMborivod canmrzw .CPrHzC88,8, 8 . CPMal NA . CO etlAe Cttmeciel Ccrmmndt, Fxeitles .I 10PnrLe Sree W Pepxe P2f2 1PRP wm,d820.wa ▪ D60Pene . a louse .FPel.2IFI.I J 001 L66020 I) m Paned 5980..H„ 8 318 have been assigned the Very Low Density designation, which is the least dense residential zone in the City, allowing up to two units per acre. Lands designated Major Community Facilities consist of the Jacqueline Cochran Airport, with the exception of 41 acres of undeveloped land that is privately owned. This acreage has been assumed to develop into industrial land uses, and is included in the fiscal analysis under the Industrial zone. Table 2 Potential Expanded Sphere of Influence Land Use Summary Zoning Designation Vacant (Acres) Dev. (Acres) Ag. (Acres) Existing Units Develop - able (Acre) Future Units/SF Total Very Low Density Residential (2/AC) 165.8 755.3 846.4 37 1,767.4' 3,535 3,572 Low Density Residential (3/AC) - 9.8 329.0 329.0 987 987 Medium Density Residential (8/AC) 4.7 37.1 441.9 115 446.7 3,573 3,688 High Density Residential (16/AC) - 34.9 34.9 559 559 Community Commercial 132.1 183.6 104.5 59 236.5 2,575,777 2,575,777 Major Community Facilities 650.5 1,485.6 - 650.52 446,054 446,054 Industrial 244.9 374.1 159.2 65 404.1 6,160,211 6,160,211 Flood Plain 218.6 Open Space 5.3 65.8 154.9 Public Recreation - - 67.6 Total 1,421.8 2,911.3 2,138.4 276 Developed acreage is currently large lot residential and Polanco parks. Assume future redevelopment. 2 All lands exempt except 40.96 acres privately held. Assume 41 acres of industrial development. 9 319 3. Existing Sphere of Influence: Cost/Revenue Analysis A. Purpose This section of the fiscal impact analysis projects municipal costs and revenues associated with annexation and buildout of the entire Sphere, based on City Zoning designations, and as shown in Table 1. It is important to note that unlike an analysis prepared for a specific project, it is not possible to predict the build out year for the Sphere. The analysis, therefore, has been conducted on the basis of a percentage of development. Specifically, calculations were made for: 1. Phase 1: No additional development, immediately upon Annexation 2. Phase 2: 10% of developable lands have developed. 3. Phase 3: 50% of developable lands have developed. 4. Phase 4: Build out, all lands developed. Development timelines are unpredictable and highly dependent on market conditions. If only historic trends are considered, build out of the Sphere will require decades. However, the limited vacant land remaining in the City, coupled with increased activity in the area surrounding Jacqueline Cochran Airport, and the perceived ease of development in the City versus the County could accelerate that pace. B. Assumptions and Methodology The costs and revenues associated with development in the Sphere were based on a number of assumptions, as follows: 1. Existing Conditions are based on the following: a. Existing development and valuation: County Assessor's Office data, 2022. b. Sales tax was requested from the California Department of Tax and Fee Administration, based on existing commercial addresses identified in County data. The Department would not provide the data, on the basis that it might violate confidentiality rules. c. Transient Occupancy Tax was provided by the County, and is based on only 15 participating (permitted) rentals. Two of those properties represent nearly 50% of all TOT revenues. 2. Future development values are calculated only for building costs, because existing valuation is assumed to include currently vacant land. 10 320 3. Land Use Density and Intensity: a. Low Density Residential: 3 units per acre, consistent with development patterns. b. Medium Density Residential: 8 units per acre, consistent with the maximum allowable under the City's zone. c. High Density Residential: 16 units per acre, consistent with the maximum allowable under the City's zone. d. Commercial: 25% building coverage, consistent with typical coverage in regional commercial developments. e. Industrial: 35% building coverage, consistent with regional industrial projects. f. Major Community Facilities: Assigned to two existing schools, with no future development potential. g. There are no Tourist Commercial designated lands in the Sphere. As a result, no hotel development has been assumed. 4. Population is calculated based on the City's 2022 household size of 2.37 persons per household. At buildout, the Sphere could have a population of 44,005 people. 5. All costs and revenues are calculated in 2022-2023 dollars. No inflation adjustment has been made, in order to show "apples to apples" comparisons. 6. Property Tax: As described above, the entire Sphere was within a County Redevelopment Area under which bonds were issued, and whose property tax currently pays bonds annually. The earliest end for the bonds is 2037, 14 years hence. The analysis of revenues has been completed with and without property tax revenues. a. The City receives Redevelopment Property Tax Trust Fund (RPTTF) payments from the County for lands annexed in the 1990s and for which it receives no property tax. A proportionate amount has been calculated for the Sphere area, based on current percentages distributed by the County every year. This assumption has been made only in calculations that exclude property tax. If the City were to receive property tax, it is assumed that the County would no longer provide RPTTF. 7. Sales tax assumes both the City's base rate, and proceeds from Measure G. Measure G funds are assumed to be 15% above the base, consistent with historic rates, which are estimated to account for Internet sales to City residents. Sales tax revenues are assumed only from commercial development. Industrial development could generate limited sales tax revenues, but they are not expected to be substantial. 11 321 8. Short Term Vacation Rentals: Assumed to represent 10% of all future single family units, with a 50% occupancy rate, and a daily rate of $365.00., and the current 10% Transient Occupancy Tax (TOT) rate. The sources of data and assumptions are also provided in each worksheet, as needed, in the detailed tables provided in Appendix A. C. Cost/Revenue Analysis i. Annual Costs and Revenues: No Property Tax Table 3 summarizes potential annual costs and revenues to the City associated with build out of the Sphere. Table 3 assumes that no property tax is collected during the build out of the Sphere, but RPTTF would be collected in the same amount as currently collected for the southeast annexation area. As is currently the case, the City would receive property transfer tax with the sale of homes in the Sphere, and would collect sales tax and Measure G taxes. TOT revenues would increase substantially with development, given that 17,947 housing units are projected on Low Density Residential lands. As shown in the Table, and assuming an RPTTF payment received by the City, the City would experience a negative cash flow immediately upon annexation, and with little development occurring (Phase 1 and Phase 2). When development increases, and households move into the Sphere, costs rise and revenues do not offset them. Therefore, with no property tax, long term projections show that the City would be in a deficit condition. It is also important to note that these assumptions rely on the proportional development of retail commercial facilities. The City's south end is currently devoid of significant retail development, despite the presence of residential development to support it. Given the presumption that 3 million square feet of both Community Commercial and Neighborhood Commercial development will be built in the Sphere, and the uncertain retail climate currently, the potential for a lack of retail development in the Sphere for the short- to mid-term must be considered. If it does not occur, sales tax revenues, including both the City's base tax and Measure G revenues could be significantly curtailed. 12 322 Table 3 Sphere of Influence Total Potential Costs/Revenues (No Property Tax) Summary Table Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) ANNUAL REVENUES General Fund: Property Tax County RPTTF $285,000 $285,000 $285,000 $285,000 Property Tax in Lieu of VLF $152,999 $732,857 $3,052,290 $5,951,581 Property Transfer Tax $0 $844,799 $3,379,196 $4,223,995 Sales Tax & Measure G $0 $1,319,108 $8,244,426 $16,488,852 Transient Occupancy Tax $437,183 $1,632,611 $6,414,323 $12,391,462 Franchise Fees $55,741 $293,929 $1,246,679 $2,423,540 Subtotal, General Fund $930,923 $5,108,304 $22,621,913 $41,764,430 Special Revenue Funds: Gas Tax $30,399 $161,576 $686,283 $1,328,092 Measure A $0 $4,295 $26,842 $53,685 Subtotal, Special Revenue Funds $30,399 $165,870 $713,126 $1,381,776 Total, All Revenues $991,721 $5,440,045 $24,048,165 $44,527,982 ANNUAL COSTS Costs of General Government $377,608 $2,007,062 $8,524,877 $16,672,146 Costs of Public Works $54,875 $291,671 $1,238,858 $2,422,840 Costs of Police Protection $483,833 $2,571,667 $10,923,003 $21,362,174 Costs of Fire Protection $235,505 $1,251,757 $5,316,764 $10,398,022 Total Annual Costs $1,151,821 $6,122,157 $26,003,502 $50,855,183 Balance at Phase Buildout -$160,100 -$682,112 -$1,955,337 -$6,327,200 ii. Annual Costs and Revenues: With Property Tax Table 4 summarizes potential annual costs and revenues to the City associated with build out of the Sphere, with property tax collected by the City during the build out of the Sphere. Immediately upon annexation, that property tax would be limited to the City's share of property tax (6.5% of the County's 1%) on existing 13 323 development. Increases in property tax would be tied to new development. Under this scenario, since the City would receive property tax, it would not receive County RPTTF funds. As shown in Table 4, this results in a short-term shortfall in revenues which turns positive when development begins to occur in Phase 2. Table 4 Sphere of Influence Total Potential Costs/Revenues (With Property Tax) Summary Table Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) ANNUAL REVENUES Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) General Fund: Property Tax $256,710 $1,229,303 $5,119,675 $9,982,640 Property Tax in Lieu of VLF $152,999 $732,857 $3,052,290 $5,951,581 Property Transfer Tax $0 $844,799 $3,379,196 $4,223,995 Sales Tax & Measure G $0 $1,319,108 $8,244,426 $16,488,852 Transient Occupancy Tax $437,183 $1,632,611 $6,414,323 $12,391,462 Franchise Fees $55,741 $293,929 $1,246,679 $2,423,540 Subtotal, General Fund $902,633 $6,052,607 $27,456,588 $51,462,070 Special Revenue Funds: Gas Tax $30,399 $161,576 $686,283 $1,328,092 Measure A $0 $4,295 $26,842 $53,685 Subtotal, Special Revenue Funds $30,399 $165,870 $713,126 $1,381,776 Total, All Revenues $963,431 $6,384,348 $28,882,840 $54,225,623 ANNUAL COSTS Costs of General Government $377,608 $2,007,062 $8,524,877 $16,672,146 Costs of Public Works $54,875 $291,671 $1,238,858 $2,422,840 Costs of Police Protection $483,833 $2,571,667 $10,923,003 $21,362,174 Costs of Fire Protection $235,505 $1,251,757 $5,316,764 $10,398,022 Total Annual Costs $1,151,821 $6,122,157 $26,003,502 $50,855,183 Balance at Phase Buildout -$188,390 $262,191 $2,879,338 $3,370,440 14 324 As is the case under the No Property Tax scenario, these assumptions rely on the proportional development of retail commercial facilities. The City's south end is currently devoid of significant retail development, despite the presence of residential development to support it. Given the presumption that 3 million square feet of both Community Commercial and Neighborhood Commercial development will be built in the Sphere, and the uncertain retail climate currently, the potential for a lack of retail development in the Sphere for the short- to mid- term must be considered. If it does not occur, sales tax revenues, including both the City's base tax and Measure G revenues could be significantly curtailed. iii. One -Time Revenues In addition to the annual costs and revenues shown in Tables 3 and 4, development in the Sphere would also generate substantial Development Impact Fees (DIF). Unlike annual revenues, these are one-time fees that the City will collect as new development occurs. Table 5 shows the total DIF fees collected in each Phase, based on the total development occurring during that phase. These fees will help the City offset infrastructure costs, including roadway improvements, signalization, parks and fire facilities. Table 5 Existing Sphere Development Impact Fees Total By Phase, One Time Revenues Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Development Impact Fees $0 $20,588,878 $82,355,513 $102,944,391 Total Development Impact Fee Revenues $0 $20,588,878 $82,355,513 $102,944,391 In addition to DIF fees, the City will also collect Planning fees, building fees and other revenues associated with development as it occurs. 15 325 4. Potential Expanded Sphere of Influence: Cost/Revenue Analysis A. Purpose As is the case with the existing Sphere, the addition of the Expanded Sphere, and its annexation to the City, does not lend itself to predictions in terms of years of development. Therefore, as with the existing Sphere, costs and revenues were calculated on the basis of the amount of development occurring at a given time: 1. Phase 1: No additional development, immediately upon Annexation 2. Phase 2: 10% of developable lands have developed. 3. Phase 3: 50% of developable lands have developed. 4. Phase 4: Build out, all lands developed. The Expanded Sphere encompasses 6,472± acres, and based on the land uses assigned, would generate a population of 20,517 people, primarily because the largest acreage in terms of residential land use is Very Low Density Residential, which generates only 2 units per acre. In addition, the Expanded Sphere contains 512± acres of open space land uses, including floodplain, recreation and open space; and 2,136± acres of Major Community Facilities, which are assigned to the Jacqueline Cochran Airport and its adjacent lands. B. Assumptions and Methodology The costs and revenues associated with development in the Expanded Sphere were based on the same assumptions made for the existing Sphere, as follows: 1. Existing Conditions are based on the following: a. Existing development and valuation: County Assessor's Office data, 2022. b. Although requested, the California Department of Tax and Fee Administration (CDTFA) would not provide current sales tax generated in the Sphere due to confidentiality concerns. c. There is no Transient Occupancy Tax generated in this area currently. 2. Future development values are calculated only for building costs, because existing valuation is assumed to include currently vacant land. 3. Land Use Density and Intensity: a. Low Density Residential: 3 units per acre, consistent with development patterns. 16 326 b. Medium Density Residential: 8 units per acre, consistent with maximum allowable under the City's zone. c. High Density Residential: 16 units per acre, consistent with the maximum allowable under the City's zone. d. Commercial: 25% building coverage, consistent with typical coverage in regional commercial developments. e. Industrial: 35% building coverage, consistent with regional industrial projects. f. Major Community Facilities: Assigned to the Jacqueline Cochran Airport. 40.96 acres are privately held, and assumed to develop under the Industrial land use. h. There are no Tourist Commercial designated lands in the Sphere. As a result, no hotel development has been assumed. 4. Population is calculated based on the City's 2022 household size of 2.37 persons per household. At buildout, the Expanded Sphere could have a population of 20,517 people. 5. All costs and revenues are calculated in 2022-2023 dollars. No inflation adjustment has been made, in order to show "apples to apples" comparisons. 6. Property Tax: As described above, the Expanded Sphere was within a County Redevelopment Area under which bonds were issued, and whose property tax currently pays bonds annually. The earliest end for the bonds is 2037, 14 years hence. The analysis of revenues has been completed with and without property tax revenues. b. a. The City receives Redevelopment Property Tax Trust Fund (RPTTF) payments from the County for lands annexed in the 1990s and for which it receives no property tax. A proportionate amount has been calculated for the Sphere area, based on current percentages distributed by the County every year. This assumption has been made only in calculations that exclude property tax. If the City were to receive property tax, it is assumed that the County would no longer provide RPTTF. 7. Sales tax assumes both the City's base rate, and proceeds from Measure G. Measure G funds are assumed to be 15% above the base, consistent with historic rates, which are estimated to account for Internet sales to City residents. Sales tax revenues are assumed only from commercial development. Industrial development could generate limited sales tax revenues, but they are not expected to be substantial. 17 327 8. Short Term Vacation Rentals: Assumed to represent 10% of all future single family units, with a 50% occupancy rate, and a daily rate of $365.00., and the current 10% Transient Occupancy Tax (TOT) rate. The sources of data and assumptions are also provided in each worksheet, as needed, in the detailed tables provided in Appendix B. C. Cost/Revenue Analysis i. Annual Costs and Revenues: No Property Tax Table 6 summarizes potential annual costs and revenues to the City associated with build out of the Expanded Sphere. Table 6 assumes that no property tax is collected during the build out of the Expanded Sphere, but RPTTF would be collected in the same amount as currently collected for the southeast annexation area. As shown in Table 6, the Expanded Sphere is revenue -negative from annexation through Phase 2, due primarily to the limited RPTTF funds and lack of property tax revenue. The limited development in this area would result in limited costs which would exceed the also limited revenues upon annexation. The two Specific Plans already approved in this area have the potential to generate substantial sales tax and Measure G revenues, but the lower number of residential units compared to the existing Sphere area would result in lower TOT revenue to the City. 18 328 Table 6 Expanded Sphere Total Potential Costs/Revenues Summary Table (No Property Tax) Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) ANNUAL REVENUES General Fund: Property Tax Potential County RPTTF $250,000 $250,000 $250,000 $250,000 Property Tax in Lieu of VLF $137,141 $444,420 $1,673,535 $3,200,306 Property Transfer Tax $0 $168,338 $673,354 $841,692 Sales Tax & Measure G $0 $1,128,279 $7,051,742 $14,105,081 Transient Occupancy Tax $0 $539,495 $2,697,473 $5,394,946 Franchise Fees $36,199 $149,746 $603,933 $1,171,667 Subtotal, General Fund $423,340 $2,680,278 $12,950,037 $24,963,692 Special Revenue Funds: Gas Tax $19,741 $81,665 $329,359 $638,976 Measure A $0 $3,673 $22,959 $45,924 Subtotal, Special Revenue Funds $19,741 $85,338 $352,318 $684,899 Total, All Revenues $462,823 $2,850,954 $13,654,672 $26,333,491 ANNUAL COSTS Costs of General Government $245,223 $1,014,424 $4,091,227 $7,937,230 Costs of Public Works $35,636 $147,419 $594,548 $1,153,459 Costs of Police Protection $314,207 $1,299,790 $5,242,126 $10,170,046 Costs of Fire Protection $152,940 $776,136 $3,268,922 $6,384,904 Total Annual Costs $748,006 $3,237,769 $13,196,823 $25,645,640 Balance at Phase Buildout -$285,183 -$386,815 $457,850 $687,851 ii. Annual Costs and Revenues: With Property Tax Table 7 summarizes potential annual costs and revenues to the City associated with build out of the Expanded Sphere, with property tax collected by the City. Immediately upon annexation, that property tax would be limited to the City's share of property tax (6.5% of the County's 1%) on existing development. 19 329 Increases in property tax would be tied to new development. Under this scenario, since the City would receive property tax, it would not receive County RPTTF funds. As shown in Table 7, this results in a short-term shortfall in revenues which turns positive when development begins to occur in Phase 2. Table 7 Expanded Sphere Total Potential Costs/Revenues Summary Table (with Property Tax) Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) ANNUAL REVENUES General Fund: Property Tax $230,103 $745,671 $2,807,944 $5,369,640 Property Tax in Lieu of VLF $137,141 $444,420 $1,673,535 $3,200,306 Property Transfer Tax $0 $168,338 $673,354 $841,692 Sales Tax & Measure G $0 $1,128,279 $7,051,742 $14,105,081 Transient Occupancy Tax $0 $539,495 $2,697,473 $5,394,946 Franchise Fees $36,199 $149,746 $603,933 $1,171,667 Subtotal, General Fund $403,443 $3,175,949 $15,507,981 $30,083,332 Special Revenue Funds: Gas Tax $19,741 $81,665 $329,359 $638,976 Measure A $0 $3,673 $22,959 $45,924 Subtotal, Special Revenue Funds $19,741 $85,338 $352,318 $684,899 Total, All Revenues $442,926 $3,346,625 $16,212,616 $31,453,131 ANNUAL COSTS Costs of General Government $245,223 $1,014,424 $4,091,227 $7,937,230 Costs of Public Works $35,636 $147,419 $594,548 $1,153,459 Costs of Police Protection $314,207 $1,299,790 $5,242,126 $10,170,046 Costs of Fire Protection $152,940 $776,136 $3,268,922 $6,384,904 Total Annual Costs $748,006 $3,237,769 $13,196,823 $25,645,640 Balance at Phase Buildout -$305,080 $108,856 $3,015,794 $5,807,491 20 330 As is the case under the No Property Tax scenario, these assumptions rely on the proportional development of retail commercial facilities. The Expanded Sphere has a more limited potential for Community Commercial development, at 2.6 million square feet, and a higher potential for Industrial development, at 6.6 million square feet. However, this area will benefit from the potential growth around the airport, and may generate a retail market over time. iii. One -Time Revenues In addition to the annual costs and revenues associated with the Expanded Sphere, its build out would also generate substantial Development Impact Fees (DIF). Unlike annual revenues, these are one-time fees that the City will collect as new development occurs. Table 8 shows the total DIF fees collected in each Phase, based on the total development occurring during that phase. As shown, the Expanded Sphere has a somewhat lower development potential, and would generate somewhat lower DIF fees. Table 8 Expanded Sphere Development Impact Fees Total By Phase, One Time Revenues Total Development Impact Fees $0 $15,454,074 $61,816,298 $75,920,654 Total Development Impact Fee Revenues $0 $15,454,074 $61,816,298 $75,920,654 In addition to DIF fees, the City will also collect Planning fees, building fees and other revenues associated with development as it occurs. It is also important to note that the Expanded Sphere occurs 3 to 6 miles east of the City's current City limits. Therefore, the provision of services from the current City Hall, and the provision of additional police and fire services, may be more difficult. This analysis only analyzes revenues and costs associated with daily operations, and not capital improvements. Therefore, facilities such as fire station(s), satellite administrative building(s) and police substation(s) may be required, which would be funded through DIF. Whether the current DIF fees are sufficient would require a capital facilities demand analysis and nexus study. 21 331 Appendix A Existing Sphere: Detailed Cost/Revenue Tables A 332 Sphere of Influence Analysis City of La Quinta Property Tax Revenue From Existing Conditions Existing Conditions (Includes all parcels, vacant and developed.) Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Current Valuation $394,938,416 $394,938,416 $394,938,416 $394,938,416 Calculation of Property Tax Revenue Total Property Tax Collected by County at phase buildout1 $3,949,384 $3,949,384 $3,949,384 $3,949,384 Percent of Property Tax Allocated to City's General Fund 6.5% 6.5% 6.5% 6.5% Annual Property Tax revenue allocated to City $256,710 $256,710 $256,710 $256,710 1 Riverside County Assessor data, aquired November 2022. From Future Development (Building values only) Zoning Designation: Low Density Residential (Ag Overlay, 3/AC) Total Developable Acres: 5,982 No. of Potential Buildout Units: 17,946 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Calculation of Property Tax Revenue Number of acres developed during phase - 598 2,393 2,991 Maximum density permitted (units/acre)' 3.00 3.00 3.00 3.00 Maximum potential units constructed during this phase 0 1,795 7,178 8,973 Number of total potential units constructed at buildout1 0 1,795 8,973 17,946 Median value per unit2 $792,500 $792,500 $792,500 $792,500 Total Value $0 $1,422,220,500 $7,111,102,500 $14,222,205,000 Property Tax Rate 1% 1% 1% 1% Total Property Tax Collected by County at Phase Buildout $0 $14,222,205 $71,111,025 $142,222,050 Percent of Property Tax Allocated to City's General Fund3 6.50% 6.50% 6.50% 6.50% Annual Property Tax revenue allocated to City $0 $924,443 $4,622,217 $9,244,433 I Assumes 3 DU/acre, consistent with City development pattems 2 Median sale price, December 2022 3 La Quinta Finance Department Page 1 of 29 333 Sphere of Influence Analysis City of La Quinta Zoning Designation: High Density Residential (16/AC) Total Developable Acres: 24.6 No. of Potential Buildout Units: 394 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Calculation of Property Tax Revenue Number of acres developed during phase 0.0 2.5 9.8 12.3 Maximum density permitted (units/acre) 16.0 16.0 16.0 16.0 Maximum potential units constructed during this phase 0 39 157 197 Number of total potential units constructed at buildout 0 39 197 394 Average value per unit' $225,000 $225,000 $225,000 $225,000 Total Value $0 $8,856,000 $44,280,000 $88,560,000 Property Tax Rate 1% 1% 1% 1% Total Property Tax Collected by County at Phase Buildout $0 $88,560 $442,800 $885,600 Percent of Property Tax Allocated to City's General Fund2 6.50% 6.50% 6.50% 6.50% Annual Property Tax revenue allocated to City $0 $5,756 $28,782 $57,564 ' based on average value of new multi -family dwelling unit, per building permits 2019-2021, Palm Desert Building Department, and average construction hard costs plus contingency of new multi -family dwelling unit at Millenium Palm Desert. 2 La Quinta Finance Department Zoning Designation: Community Commercial Total Developable Acres: 236.6 No. of Potential Buildout Sq. Ft.: 2,576,574 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Calculation of Property Tax Revenue Number of acres developed during phase 0.00 23.66 94.64 118.30 Square footage constructed during this phase 0.00 257,657 1,030,630 1,288,287 Total square footage constructed at phase buildout 0 257,657 1,288,287 2,576,574 Average value per square foot1 $170.92 $170.92 $170.92 $170.92 Total Value $0 $44,038,803 $220,194,014 $440,388,028 Property Tax Rate 1% 1% 1% 1% Total Property Tax Collected by County at Phase Buildout $0 $440,388 $2,201,940 $4,403,880 Percent of Property Tax Allocated to City's General Fund 6.50% 6.50% 6.50% 6.50% Annual Property Tax revenue allocated to City $0 $28,625 $143,126 $286,252 1 average value per square foot of new commercial development, per building permits 2019-2021, Palm Desert Building Department. Zoning Designation: Neighborhood Commercial Total Developable Acres: 39.9 No. of Potential Buildout Sq. Ft.: 434,511 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Calculation of Property Tax Revenue Number of acres developed during phase 0.00 3.99 15.96 19.95 Square footage constructed during this phase 0.00 43,451 173,804 217,256 Total square footage constructed at phase buildout 0 43,451 217,256 434,511 Average value per square foot' $170.92 $170.92 $170.92 $170.92 Total Value $0 $7,426,662 $37,133,310 $74,266,620 Property Tax Rate 1% 1% 1% 1% Total Property Tax Collected by County at Phase Buildout $0 $74,267 $371,333 $742,666 Percent of Property Tax Allocated to City's General Fund 6.50% 6.50% 6.50% 6.50% Annual Property Tax revenue allocated to City $0 $4,827 $24,137 $48,273 ' average value per square foot of new commercial development, per building permits 2019-2021, Palm Desert Building Department. Page 2 of 29 334 Sphere of Influence Analysis City of La Quinta Zoning Designation: Industrial Total Developable Acres: 64.6 No. of Potential Buildout Sq. Ft.: 984,892 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Calculation of Property Tax Revenue Number of acres developed during phase 0.00 6.46 25.84 32.30 Square footage constructed during this phase 0.00 98,489 393,957 492,446 Total square footage constructed at phase buildout 0 98,489 492,446 984,892 Average value per square foot' $139.66 $139.66 $139.66 $139.66 Total Value $0 $13,754,996 $68,774,980 $137,549,961 Property Tax Rate 1% 1% 1% 1% Total Property Tax Collected by County at Phase Buildout $0 $137,550 $687,750 $1,375,500 Percent of Property Tax Allocated to City's General Fund 6.50% 6.50% 6.50% 6.50% Annual Property Tax revenue allocated to City $0 $8,941 $44,704 $89,407 ' average value per square foot of new industrial/business park development, per building permits 2019-2021, Palm Desert Building Department. Page 3 of 29 335 Sphere of Influence Analysis City of La Quinta Property Tax Revenue Summary Table Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Annual Property Tax revenue allocated to City from: Existing conditions $256,710 $256,710 $256,710 $256,710 Future Low Density Residential $0 $924,443 $4,622,217 $9,244,433 Future High Density Residential $0 $5,756 $28,782 $57,564 Future Community Commercial $0 $28,625 $143,126 $286,252 Future Neighborhood Commercial $0 $4,827 $24,137 $48,273 Future Industrial $0 $8,941 $44,704 $89,407 Total annual Property Tax revenue at phase buildout: $256,710 $1,229,303 $5,119,675 $9,982,640 Page 4 of 29 336 Sphere of Influence Analysis City of La Quinta Property Tax In Lieu of Vehicle License Fees (VLF) Revenue From Existing Conditions Existing Conditions (Includes all parcels, vacant and developed.) Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Calculation of Annual Property Tax In Lieu of VLF revenue Property Tax Revenue to City $256,710 $256,710 $256,710 $256,710 Percentage of Property Tax Revenue 59.6% 59.6% 59.6% 59.6% Annual Property Tax In Lieu of VLF revenue $152,999 $152,999 $152,999 $152,999 I Per 2022/2023 Budget, PTINVLF is 59.6% of total property tax (not including RTTF passth ough) From Future Development Zoning Designation: Low Density Residential (Ag Overlay, 3/AC) Total Developable Acres: 5,982 No. of Potential Buildout Units: 17,946 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Land Use Buildout Data Number of acres developed during phase 0.00 598.20 2,392.80 2,991.00 Maximum density permitted (units/acre) 3.00 3.00 3.00 3.00 Maximum potential units constructed during this phase 0 1,795 7,178 8,973 Number of total potential units constructed at phase buildout 0 1,795 8,973 17,946 Calculation of Annual Property Tax In Lieu of VLF revenue Property Tax Revenue Allocated to City $0 $924,443 $4,622,217 $9,244,433 Percentage of Property Tax Revenue 59.6% 59.6% 59.6% 59.6% Annual Property Tax In Lieu of VLF revenue $0 $550,968 $2,754,841 $5,509,682 Zoning Designation: High Density Residential (16/AC) Total Developable Acres: 24.6 No. of Potential Buildout Units: 394 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Land Use Buildout Data Number of acres developed during phase 0.00 2.46 9.84 12.30 Maximum density permitted (units/acre) 16.0 16.0 16.0 16.0 Maximum potential units constructed during this phase 0 39 157 197 Number of total potential units constructed at phase buildout 0 39 197 394 Calculation of Annual Property Tax In Lieu of VLF revenue Property Tax Revenue Allocated to City $0 $5,756 $28,782 $57,564 Percentage of Property Tax Revenue 59.6% 59.6% 59.6% 59.6% Annual Property Tax In Lieu of VLF revenue $0 $3,431 $17,154 $34,308 Page 5 of 29 337 Sphere of Influence Analysis City of La Quinta Zoning Designation: Community Commercial Total Developable Acres: 236.6 No. of Potential Buildout Sq. Ft.: 856,711 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Land Use Buildout Data Number of acres developed during phase 0.00 23.66 94.64 118.30 Square footage constructed at Phase buildout 0 257,657 1,288,287 2,576,574 Calculation of Annual Property Tax In Lieu of VLF revenue Property Tax Revenue Allocated to City $0 $28,625 $143,126 $286,252 Percentage of Property Tax Revenue 59.6% 59.6% 59.6% 59.6% Annual Property Tax In Lieu of VLF revenue $0 $17,061 $85,303 $170,606 Zoning Designation: Neighborhood Commercial Total Developable Acres: 39.9 No. of Potential Buildout Sq. Ft.: 434,511 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Land Use Buildout Data Number of acres developed during phase 0.00 3.99 15.96 19.95 Square footage constructed at Phase buildout 0 43,451 217,256 434,511 Calculation of Annual Property Tax In Lieu of VLF revenue Property Tax Revenue Allocated to City $0 $4,827 $24,137 $48,273 Percentage of Property Tax Revenue 61% 61 % 61% 61% Annual Property Tax In Lieu of VLF revenue $0 $2,945 $14,723 $29,447 Zoning Designation: Industrial Total Developable Acres: 64.6 No. of Potential Buildout Sq. Ft: 984,892 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Land Use Buildout Data Number of acres developed during phase 0.00 6.46 25.84 32.30 Square footage constructed at Phase buildout 0 98,489 492,446 984,892 Calculation of Annual Property Tax In Lieu of VLF revenue Property Tax Revenue Allocated to City $0 $8,941 $44,704 $89,407 Percentage of Property Tax Revenue 61% 61% 61% 61% Annual Property Tax In Lieu of VLF revenue $0 $5,454 $27,269 $54,539 Page 6 of 29 338 Sphere of Influence Analysis City of La Quinta Motor Vehicle In -Lieu Revenue Summary Table Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Annual Property Tax In -Lieu VLF revenue to City from: Existing conditions $152,999 $152,999 $152,999 $152,999 Future Low Density Residential $0 $550,968 $2,754,841 $5,509,682 Future High Density Residential $0 $3,431 $17,154 $34,308 Future Community Commercial $0 $17,061 $85,303 $170,606 Future Neighborhood Commercial $0 $2,945 $14,723 $29,447 Future Industrial $0 $5,454 $27,269 $54,539 Total annual Property Tax In -Lieu VLF revenue at phase buildout: $152,999 $732,857 $3,052,290 $5,951,581 Page 7 of 29 339 Sphere of Influence Analysis City of La Quinta Property Transfer Tax Revenue Zoning Designation: Low Density Residential (Ag Overlay, 3/AC) Total Developable Acres: 5,982 No. of Potential Buildout Units: 17,946 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) New Units (100% of market value is subject to tax) Number of acres developed - 598 2,393 2,991 Maximum Density permitted (units/acre) 3.0 3.0 3.0 3.0 Number of new units during this phase - 1,795 7,178 8,973 Market Value per unit $792,500 $792,500 $792,500 $792,500 Amount Subject to Property Transfer Tax for all new units sold $0 $1,422,220,500 $5,688,882,000 $7,111,102,500 Property Transfer Tax Rate 0.11% 0.11% 0.11% 0.11% Total Property Transfer Tax Collected at Phase Buildout $0 $1,564,443 $6,257,770 $7,822,213 Percent of Property Transfer Tax allocated to City 50% 50% 50% 50% Total Property Transfer Tax Allocated to City General Fund $0 $782,221 $3,128,885 $3,911,106 Existing Units (80% of market value is subject to tax) Number of Units changing ownership 0 179 718 897 Property Value per dwelling unit $792,500 $792,500 $792,500 $792,500 Unencumbered Value per unit (80% of value) $634,000 $634,000 $634,000 $634,000 Amount subject to Property Transfer Tax $0 $113,777,640 $455,110,560 $568,888,200 Property Transfer Tax Rate 0.11% 0.11% 0.11% 0.11% Total Property Transfer Tax Collected $0 $125,155 $500,622 $625,777 Percent of Property Transfer Tax allocated to City 50% 50% 50% 50% Total Property Transfer Tax Allocated to City General Fund $0 $62,578 $250,311 $312,889 Total Property Transfer Tax (New and Existing Units) $0 $844,799 $3,379,196 $4,223,995 Page 8 of 29 340 Sphere of Influence Analysis City of La Quinta Property Transfer Tax Revenue Summary Table Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Annual Property Transfer Tax revenue to City from: Future Low Density Residential $0 $844,799 $3,379,196 $4,223,995 Total annual Property Transfer Tax revenue at phase buildout: $0 $844,799 $3,379,196 $4,223,995 Page 9 of 29 341 Sphere of Influence Analysis City of La Quinta Sales Tax Revenue, Measure G Revenue Measure A Revenue Existing Conditions Existing Sales Tax Collected Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Current Taxable Sales Base sales tax collected by City $0 $0 $0 $0 Measure G sales tax collected by City $0 $0 $0 $0 Annual sales tax revenue collected by City $0 $0 $0 $0 From Future Commercial Development Zoning Designation: Community Commercial Total Developable Acres: 236.6 No. of Potential Buildout Sq. Ft.: 856,711 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Land Use Data Number of acres developed during this phase 0.0 23.7 94.6 118.3 Number of acres developed at phase buildout 0.0 23.7 118.3 236.6 Number of square feet developed during this phase 0 257,657 1,030,630 1,288,287 Number of square feet developed at phase buildout 0 257,657 1,288,287 2,576,574 Calculation of Total Leasable Square Feet Percent leasable space 90% 90% 90% 90% No. of leasable square feet 0 231,892 1,159,458 2,318,917 "Retail Commercial" Development Percent of leasable sq. ft. considered 'Retail Commercial" 80% 80% 80% 80% No. of leasable sq. ft. considered 'Retail Commercial" 0 185,513 1,159,458 2,318,917 Ave. annual sales volume per sq. ft. $283.00 $283.00 $283.00 $283.00 Total annual sales from 'Retail Commercial" development $0 $52,500,272 $328,126,699 $656,253,398 Calculation of Total Sales Tax Revenues Total annual sales at phase buildout $0 $52,500,272 $328,126,699 $656,253,398 City sales tax rate 1.00% 1.00% 1.00% 1.00% Base sales tax collected by City - 525,003 3,281,267 6,562,534 Measure G tax rate 1.00% 1.00% 1.00% 1.00% Measure G sales tax collected by City - 603,753 3,773,457 7,546,914 Annual sales tax revenue collected by City at phase buildout $0 $1,128,756 $7,054,724 $14,109,448 1 Includes 15% above 1 % per historic performance — assumed to be off -site delivery increase Calculation of Measure A Revenues County -wide Measure A tax rate 0.50% 0.50% 0.50% 0.50% Amount collected for County -wide Measure A fund $0 $262,501 $1,640,633 $3,281,267 Percent allocated to the Coachella Valley region 2 20% 20% 20% 20% Amount allocated to the Coachella Valley region $0 $52,500 $328,127 $656,253 Percent allocated to local streets and roads 2 35% 35% 35% 35% Amount allocated to local streets and roads $0 $18,375 $114,844 $229,689 Percent allocated to City 3 20% 20% 20% 20% Amount allocated to City $0 $3,675 $22,969 $45,938 2 Measure A distribution data provided by John Standiford, Deputy Executive Director, Riverside County Transportation Commission, Dec. 30, 2021. Page 10 of 29 342 Sphere of Influence Analysis City of La Quinta Zoning Designation: Neighborhood Commercial Total Developable Acres: 39.9 No. of Potential Buildout Sq. Ft.: 434,511 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Land Use Data Number of acres developed during this phase 0.0 4.0 16.0 20.0 Number of acres developed at phase buildout 4.0 20.0 20.0 Number of square feet developed during this phase 0 43,451 173,804 217,256 Number of square feet developed at phase buildout 0 43,451 217,256 434,511 Calculation of Total Leasable Square Feet Percent leasable space 90% 90% 90% 90% No. of leasable square feet 0 39,106 195,530 391,060 "Retail Commercial" Development Percent of leasable sq. ft. considered 'Retail Commercial" 80% 80% 80% 80% No. of leasable sq. ft. considered 'Retail Commercial" 0 31,285 195,530 391,060 Ave. annual sales volume per sq. ft. $283.00 $283.00 $283.00 $283.00 Total annual sales from 'Retail Commercial" development $0 $8,853,596 $55,334,976 $110,669,952 Calculation of Total Sales Tax Revenues Total annual sales at phase buildout $0 $8,853,596 $55,334,976 $110,669,952 City sales tax rate 1.00% 1.00% 1.00% 1.00% Base sales tax collected by City - 88,536 553,350 1,106,700 Measure G tax rate 1.00% 1.00% 1.00% 1.00% Measure G sales tax collected by City $0 $101,816 $636,352 $1,272,704 Annual sales tax revenue collected by City at phase buildout $0 $190,352 $1,189,702 $2,379,404 1 Includes 15% above 1 % per historic performance — assumed to be off -site delivery increase Calculation of Measure A Revenues County -wide Measure A tax rate 0.50% 0.50% 0.50% 0.50% Amount collected for County -wide Measure A fund $0 $44,268 $276,675 $553,350 Percent allocated to the Coachella Valley region 1 20% 20% 20% 20% Amount allocated to the Coachella Valley region $0 $8,854 $55,335 $110,670 Percent allocated to local streets and roads 1 35% 35% 35% 35% Amount allocated to local streets and roads $0 $3,099 $19,367 $38,734 Percent allocated to City 1 20% 20% 20% 20% Amount allocated to City $0 $620 $3,873 $7,747 1 Measure A distribution data provided by John Standiford, Deputy Executive Director, Riverside County Transportation Commission, Dec. 30, 2021. Page 11 of 29 343 Sphere of Influence Analysis City of La Quinta Sales Tax Revenue Summary Table Buildout Phase Phase 1 (At Annexation) of Vacant Land Developed) of Vacant Land Developed) Phase 4 (Build Out) Annual Sales Tax revenue to City from: Existing Sales Tax $0 $0 $0 $0 Future Community Commercial $0 $1,128,756 $7,054,724 $14,109,448 Future Neighborhood Commercial $0 $190,352 $1,189,702 $2,379,404 Total annual Sales Tax revenue at phase buildout: $0 $1,319,108 $8,244,426 $16,488,852 Measure A Revenue Summary Table Buildout Phase Phase 1 (At Annexation) of Vacant Land Developed) of Vacant Land Developed) Phase 4 (Build Out) Annual Measure A revenue to City from: Future Community Commercial $0 $3,675 $22,969 $45,938 Future Neighborhood Commercial $0 $620 $3,873 $7,747 Total annual Measure A revenue at phase buildout: $0 $4,295 $26,842 $53,685 Page 12 of 29 344 Sphere of Influence Analysis City of La Quinta Transient Occupancy Tax Revenue From Existing Conditions Existing Conditions Transient Occupancy Tax Collected by County 2020/2021 Fiscal Year Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Current TOT Collected by County $437,183 $437,183 $437,183 $437,183 From Future Short Term Vacation Rentals Zoning Designation: Low Density Residential (Ag Overlay, 3/AC) Total Developable Acres: 5,982 No. of Potential Buildout Units: 17,946 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Land Use Buildout Data Number of acres developed during this phase 0 598 2,393 2,991 Number of acres developed at phase buildout 0 598 2,991 2,991 Number of units developed during this phase 0 1,795 7,178 8,973 Number of units developed at phase buildout 0 1,795 8,973 17,946 Calculation of TOT Revenue Participation Rate 10% 10% 10% 10% Total STVRs at Phase Buildout 0 179 897 1795 Average rate ($ per night) $365.00 $365.00 $365.00 $365.00 Average occupancy rate 50% 50% 50% 50% Annual revenue from all rooms at phase buildout $0 $11,954,279 $59,771,396 $119,542,793 City's Transient Occupancy Tax Rate 10% 10% 10% 10% City's annual TOT revenue at phase buildout $0 $1,195,428 $5,977,140 $11,954,279 Page 13 of 29 345 Sphere of Influence Analysis City of La Quinta TOT Revenue Summary Table Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Annual TOT revenue to City from: Existing STVRs $437,183 $437,183 $437,183 $437,183 Future STVRs $0 $1,195,428 $5,977,140 $11,954,279 Total annual TOT revenue at phase buildout: $437,183 $1,632,611 $6,414,323 $12,391,462 Page 14 of 29 346 Sphere of Influence Analysis City of La Quinta Gas Tax Revenue From Existing Conditions Existing Housing Units Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Existing Housing Units 425 425 425 425 Calculation of Annual Gas Tax Revenue Average no. persons per household' 2.37 2.37 2.37 2.37 Potential population at phase buildout 1,007 1,007 1,007 1,007 Estimated annual per capita gas tax revenue 2 $30.18 $30.18 $30.18 $30.18 Annual gas tax revenue at phase buildout $30,399 $30,399 $30,399 $30,399 1 Califomia Department of Finance, January 1, 2022. 2 Gas tax revenue $1,142,800 (City of La Quinta Budget, 2022/2023) divided by City population 37,860 (California Department of Finance, January 1, 2022). Zoning Designation: Low Density Residential (Ag Overlay, 3/AC) Total Developable Acres: 5,982 No. of Potential Buildout Units: 17,946 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Development Summary Number of acres developed during phase - 598 2,393 2,991 Numbers of acres developed at phase buildout - 598 2,991 2,991 Number of potential units constructed during this phase - 1,795 7,178 8,973 Number of potential units at phase buildout - 1,795 8,973 17,946 Calculation of Annual Gas Tax Revenue Average no. persons per household' 2.37 2.37 2.37 2.37 Potential population at phase buildout 0 4,253 21,266 42,532 Estimated annual per capita gas tax revenue 2 $30.18 $30.18 $30.18 $30.18 Annual gas tax revenue at phase buildout $0 $128,362 $641,808 $1,283,616 1 California Department of Finance, January 1, 2022. 2 Gas tax revenue $1,142,800 (City of La Quinta Budget, 2022/2023) divided by City population 37,860 (California Department of Finance, January 1, 2022). Zoning Designation: High Density Residential (16/AC) Total Developable Acres: 24.6 No. of Potential Buildout Units: 394 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Development Summary Number of acres developed during phase 0.0 2.5 9.8 12.3 Numbers of acres developed at phase buildout 0.0 2.5 12.3 12.3 Number of potential units constructed during this phase 0 39 157 197 Number of potential units at phase buildout 0 39 197 197 Calculation of Annual Gas Tax Revenue Average no. persons per household' 2.37 2.37 2.37 2.37 Potential population at phase buildout 0 93 466 466 Estimated annual per capita gas tax revenue 2 $30.18 $30.18 $30.18 $30.18 Annual gas tax revenue at phase buildout $0 $2,815 $14,076 $14,076 1 California Department of Finance, January 1, 2022. 2 Gas tax revenue $1,142,800 (City of La Quinta Budget, 2022/2023) divided by City population 37,860 (California Department of Finance, January 1, 2022). Page 15 of 29 347 Sphere of Influence Analysis City of La Quinta Gas Tax Revenue Summary Table Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Annual Gas Tax revenue to City from: Existing Units $30,399 $30,399 $30,399 $30,399 Future Low Density Residential $0 $128,362 $641,808 $1,283,616 Future High Density Residential $0 $2,815 $14,076 $14,076 Total Annual Gas Tax Revenue at phase buildout: $30,399 $161,576 $686,283 $1,328,092 Page 16 of 29 348 Sphere of Influence Analysis City of La Quinta Franchise Fees Revenue From Existing Conditions Existing Housing Units Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Existing Housing Units 425 425 425 425 Calculation of Annual Franchise Revenue Average no. persons per household' 2.37 2.37 2.37 2.37 Potential population at phase buildout 1,007 1,007 1,007 1,007 Estimated annual per capita franchise revenue 2 $55.34 $55.34 $55.34 $55.34 Annual franchise revenue at phase buildout $55,741 $55,741 $55,741 $55,741 1 Califomia Department of Finance, January 1, 2022. 2 Franchise tax revenue $2,095,000 (City of La Quinta Budget, 2022/2023) divided by City population 37,860 (Califomia Department of Finance, January 1, 2022). Zoning Designation: Low Density Residential (Ag Overlay, 3/AC) Total Developable Acres: 5,982 No. of Potential Buildout Units: 17,946 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50°/a of Vacant Land Developed) Phase 4 (Build Out) Development Summary Number of acres developed during phase - 598 2,393 2,991 Numbers of acres developed at phase buildout - 598 2,991 5,982 Number of potential units constructed during this phase - 1,795 7,178 8,973 Number of potential units at phase buildout - 1,795 8,973 17,946 Calculation of Annual Franchise Revenue Average no. persons per household' 2.37 2.37 2.37 2.37 Potential population at phase buildout 0 4,253 21,266 42,532 Estimated annual per capita franchise revenue 2 $55.34 $55.34 $55.34 $55.34 Annual franchise revenue at phase buildout $0 $235,372 $1,176,861 $2,353,722 1 Califomia Department of Finance, January 1, 2022. 2 Franchise tax revenue $2,095,000 (City of La Quinta Budget, 2022/2023) divided by City population 37,860 (Califomia Department of Finance, January 1, 2022). Zoning Designation: High Density Residential (16/AC) Total Developable Acres: 24.6 No. of Potential Buildout Units: 394 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Development Summary Number of acres developed during phase 0.00 2.46 9.84 12.30 Numbers of acres developed at phase buildout 0.00 2.46 12.30 12.30 Number of potential units constructed during this phase 0 39 157 197 Number of potential units at phase buildout 0 39 197 197 Calculation of Annual Franchise Revenue Average no. persons per household' 2.37 2.37 2.37 2.37 Potential population at phase buildout 0 93 466 466 Estimated annual per capita franchise revenue 2 $30.18 $30.18 $30.18 $30.18 Annual franchise revenue at phase buildout $0 $2,815 $14,076 $14,076 1 California Department of Finance, January 1, 2022. 2 Gas tax revenue $1,142,800 (City of La Quinta Budget, 2022/2023) divided by City population 37,860 (California Department of Finance, January 1, 2022). Page 17 of 29 349 Sphere of Influence Analysis City of La Quinta Franchise Fees Revenue Summary Table Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Annual Franchise Fee revenue to City from: Existing Units $55,741 $55,741 $55,741 $55,741 Future Low Density Residential $0 $235,372 $1,176,861 $2,353,722 Future High Density Residential $0 $2,815 $14,076 $14,076 Total annual Franchise Fee revenue at phase buildout: $55,741 $293,929 $1,246,679 $2,423,540 Page 18 of 29 350 Sphere of Influence Analysis City of La Quinta Development Impact Fees - New Development Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) From future Low Density Residential Development Number of units constructed during this phase 0 1,795 7,178 8,973 DIF per unit $9,380 $9,380 $9,380 $9,380 Total DIF collected $0 $16,833,348 $67,333,392 $84,166,740 From future High Density Residential Number of units constructed during this phase 0 39 157 197 DIF per unit $6,113 $6,113 $6,113 $6,113 Total DIF collected $0 $240,608 $962,431 $1,203,038 From future Community Commercial Number of SF constructed during this phase - 257,657 1,030,630 1,288,287 DIF per 1,000 SF $9,191 $9,191 $9,191 $9,191 Total DIF collected $0 $2,368,129 $9,472,517 $11,840,646 From future Neighborhood Commercial Number of SF constructed during this phase - 43,451 173,804 217,256 DIF per 1,000 SF $9,191 $9,191 $9,191 $9,191 Total DIF collected $0 $399,359 $1,597,436 $1,996,795 From future Industrial Number of SF constructed during this phase - 98,489 393,957 492,446 DIF per 1,000 SF1 $7,589 $7,589 $7,589 $7,589 Total DIF collected $0 $747,434 $2,989,737 $3,737,171 Total Revenue for that phase $0 $20,588,878 $82,355,513 $102,944,391 I The City does not have a DIF for Industrial development. The Office/Medical DIF has been assumed for purposes of analysis. Page 19 of 29 351 Sphere of Influence Analysis City of La Quinta Costs of General Government Existing Conditions 425 Existing Homes Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Current Units 425 425 425 425 Average number of persons per household 2.37 2.37 2.37 2.37 Total no. of potential residents at phase buildout 1,007 1,007 1,007 1,007 Calculating Annual Costs of General Government Cost of General Government (per capita)1 $374.89 $374.89 $374.89 $374.89 Total annual cost of General Government at phase buildout $377,608 $377,608 $377,608 $377,608 1 City of La Quinta Budget, 2022-2023; General Fund Expenses for Commun ty Resources, Wellness Center, Recreation Programs, Park Maintenance, Marketing, Public Buildings, Design & Development, Planning, Building, Code Compliance/Animal Control, and Engineering Services. Zoning Designation: Low Density Residential (Ag Overlay, 3/AC) Total Developable Acres: 5,982 No. of Potential Buildout Units: 17,946 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Land Use Buildout Data Number of acres developed during phase 0 598 2393 2991 Maximum density permitted (units/acre) 3 3 3 3 Maximum potential units constructed during this phase 0 1,795 7,178 8,973 Number of total potential units constructed at phase buildout 0 1,795 8,973 17,946 Average number of persons per household 2.37 2.37 2.37 2.37 Total no. of potential residents at phase buildout 0 4,253 21,266 42,532 Calculating Annual Costs of General Government Cost of General Government (per capita)1 $374.89 $374.89 $374.89 $374.89 Total annual cost of General Government at phase buildout $0 $1,594,483 $7,972,414 $15,944,829 1 City of La Quinta Budget, 2022-2023; General Fund Expenses for Commun ty Resources, Wellness Center, Recreation Programs, Park Maintenance, Marketing, Public Buildings, Design & Development, Planning, Building, Code Compliance/Animal Control, and Engineering Services. Zoning Designation: High Density Residential (16/AC) Total Developable Acres: 24.6 No. of Potential Buildout Units: 394 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Land Use Buildout Data Number of acres developed during phase 0.00 2.46 9.84 12.30 Maximum density permitted (units/acre) 16 16 16 16 Maximum potential units constructed during this phase 0 39 157 197 Number of total potential units constructed at phase buildout 0 39 197 394 Average number of persons per household 2.37 2.37 2.37 2.37 Total no. of potential residents at phase buildout 0 93 466 933 Calculating Annual Costs of General Government Cost of General Government (per capita)1 $374.89 $374.89 $374.89 $374.89 Total annual cost of General Government at phase buildout $0 $34,971 $174,855 $349,709 1City of La Quinta Budget, 2022-2023; General Fund Expenses for Communi y Resources, Wellness Center, Recreation Programs, Park Maintenance, Marketing, Public Buildings, Design & Development, Planning, Building, Code Compliance/Animal Control, and Engineering Services. Page 20 of 29 352 Sphere of Influence Analysis City of La Quinta Costs of General Government Summary Table Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Annual General Government Costs from: Existing Development $377,608 $377,608 $377,608 $377,608 Future Low Density Residential $0 $1,594,483 $7,972,414 $15,944,829 Future High Density Residential $0 $34,971 $174,855 $349,709 Total annual General Government Costs at phase buildout: $377,608 $2,007,062 $8,524,877 $16,672,146 Page 21 of 29 353 Sphere of Influence Analysis City of La Quinta Costs of Public Works Existing Conditions 425 Existing Homes Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Current Units 425 425 425 425 Average number of persons per household 2.37 2.37 2.37 2.37 Total no. of potential residents at phase buildout 1,007 1,007 1,007 1,007 Calculating Annual Costs of Public Works Cost of Public Works (per capita)1 $54.48 $54.48 $54.48 $54.48 Total annual cost of Public Works at phase buildout $54,875 $54,875 $54,875 $54,875 1 City of La Quinta Budget, 2022-2023; General Fund Expenses for Public Works Administration, Development Services, Streets Zoning Designation: Low Density Residential (Ag Overlay, 3/AC) Total Developable Acres: 5,982 No. of Potential Buildout Units: 17,946 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Land Use Buildout Data Number of acres developed during phase - 598 2,393 2,991 Maximum density permitted (units/acre) 3 3 3 3 Maximum potential units constructed during this phase 0 1,795 7,178 8,973 Number of total potential units constructed at phase buildout 0 1,795 8,973 17,946 Average number of persons per household 2.37 2.37 2.37 2.37 Total no. of potential residents at phase buildout 0 4,253 21,266 42,532 Calculating Annual Costs of Public Works Cost of Public Works (per capita)1 $54.48 $54.48 $54.48 $54.48 Total annual cost of Public Works at phase buildout $0 $231,714 $1,158,572 $2,317,144 1 City of La Quinta Budget, 2022-2023; General Fund Expenses for Public Works Administration, Development Services, Streets Zoning Designation: High Density Residential (16/AC) Total Developable Acres: 24.6 No. of Potential Buildout Units: 394 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Land Use Buildout Data Number of acres developed during phase 0.00 2.46 9.84 12.30 Maximum density permitted (units/acre) 16 16 16 16 Maximum potential units constructed during this phase 0 39 157 197 Number of total potential units constructed at phase buildout 0 39 197 394 Average number of persons per household 2.37 2.37 2.37 2.37 Total no. of potential residents at phase buildout 0 93 466 933 Calculating Annual Costs of Public Works Cost of Public Works (per capita)1 $54.48 $54.48 $54.48 $54.48 Total annual cost of Public Works at phase buildout $0 $5,082 $25,410 $50,821 i City of La Quinta Budget, 2022-2023; General Fund Expenses for Public Works Administration, Development Services, Streets Page 22 of 29 354 Sphere of Influence Analysis City of La Quinta Costs of Public Works Summary Table Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Annual Public Works Costs from: Existing Residential $54,875 $54,875 $54,875 $54,875 Future Low Density Residential $0 $231,714 $1,158,572 $2,317,144 Future High Density Residential $0 $5,082 $25,410 $50,821 Total annual Public Works Costs at phase buildout: $54,875 $291,671 $1,238,858 $2,422,840 Page 23 of 29 355 Sphere of Influence Analysis City of La Quinta Costs of Police Protection Existing Conditions 425 Existing Homes Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Current Units 425 425 425 425 Average number of persons per household 2.37 2.37 2.37 2.37 Total no. of potential residents at phase buildout 1,007 1,007 1,007 1,007 Calculating Annual Costs of Police Protection Cost of Police Services (per capita)1 $480.35 $480.35 $480.35 $480.35 Total annual cost of Police Protection at phase buildout $483,833 $483,833 $483,833 $483,833 1 City of La Quinta Budget, 2022-2023; General Fund Expenses for Police. Zoning Designation: Low Density Residential (Ag Overlay, 3/AC) Total Developable Acres: 5,982 No. of Potential Buildout Units: 17,946 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Land Use Buildout Data Number of acres developed during phase - 598 2,393 2,991 Maximum density permitted (units/acre) 3 3 3 3 Maximum potential units constructed during this phase 0 1,795 7,178 8,973 Number of total potential units constructed at phase buildout 0 1,795 8,973 17,946 Average number of persons per household 2.37 2.37 2.37 2.37 Total no. of potential residents at phase buildout 0 4,253 21,266 42,532 Calculating Annual Costs of Police Protection Cost of Police Services (per capita)1 $480.35 $480.35 $480.35 $480.35 Total annual cost of Police Protection at phase buildout $0 $2,043,026 $10,215,128 $20,430,256 1 City of La Quinta Budget, 2022-2023; General Fund Expenses for Police. Zoning Designation: High Density Residential (16/AC) Total Developable Acres: 24.6 No. of Potential Buildout Units: 394 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50°/a of Vacant Land Developed) Phase 4 (Build Out) Land Use Buildout Data Number of acres developed during phase 0.00 2.46 9.84 12.30 Maximum density permitted (units/acre) 16 16 16 16 Maximum potential units constructed during this phase 0 39 157 197 Number of total potential units constructed at phase buildout 0 39 197 394 Average number of persons per household 2.37 2.37 2.37 2.37 Total no. of potential residents at phase buildout 0 93 466 933 Calculating Annual Costs of Police Protection Cost of Police Services (per capita)1 $480.35 $480.35 $480.35 $480.35 Total annual cost of Police Protection at phase buildout $0 $44,809 $224,043 $448,086 1 City of La Quinta Budget, 2022-2023; General Fund Expenses for Police. Page 24 of 29 356 Sphere of Influence Analysis City of La Quinta Costs of Police Protection Summary Table Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Annual Police Protection Costs from: Existing Residential Units $483,833 $483,833 $483,833 $483,833 Future Low Density Residential $0 $2,043,026 $10,215,128 $20,430,256 Future High Density Residential $0 $44,809 $224,043 $448,086 Total annual Police Protection Costs at phase buildout: $483,833 $2,571,667 $10,923,003 $21,362,174 Page 25 of 29 357 Sphere of Influence Analysis City of La Quinta Costs of Fire Protection Existing Conditions 425 Existing Homes Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Current Units 425 425 425 425 Average number of persons per household 2.37 2.37 2.37 2.37 Total no. of potential residents at phase buildout 1,007 1,007 1,007 1,007 Calculating Annual Costs of Fire Protection Cost of Fire Protection (per capita)' $233.81 $233.81 $233.81 $233.81 Total annual cost of Fire Protection at phase buildout $235,505 $235,505 $235,505 $235,505 1 City of La Quinta Budget, 2022-2023; General Fund Expenses for Police. Zoning Designation: Low Density Residential (Ag Overlay, 3/AC) Total Developable Acres: 5,982 No. of Potential Buildout Units: 17,946 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Land Use Buildout Data Number of acres developed during phase - 598 2,393 2,991 Maximum density permitted (units/acre) 3 3 3 3 Maximum potential units constructed during this phase 0 1,795 7,178 8,973 Number of total potential units constructed at phase buildout 0 1,795 8,973 17,946 Average number of persons per household 2.37 2.37 2.37 2.37 Total no. of potential residents at phase buildout 0 4,253 21,266 42,532 Calculating Annual Costs of Fire Protection Cost of Fire Protection (per capita)' $233.81 $233.81 $233.81 $233.81 Total annual cost of Fire Protection at phase buildout $0 $994,441 $4,972,206 $9,944,412 1 City of La Quinta Budget, 2022-2023; General Fund Expenses for Police. Zoning Designation: High Density Residential (16/AC) Total Developable Acres: 24.6 No. of Potential Buildout Units: 394 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Land Use Buildout Data Number of acres developed during phase 0.00 2.46 9.84 12.30 Maximum density permitted (units/acre) 16 16 16 16 Maximum potential units constructed during this phase 0 39 157 197 Number of total potential units constructed at phase buildout 0 39 197 394 Average number of persons per household 2.37 2.37 2.37 2.37 Total no. of potential residents at phase buildout 0 93 466 933 Calculating Annual Costs of Fire Protection Cost of Fire Protection (per capita)' $233.81 $233.81 $233.81 $233.81 Total annual cost of Fire Protection at phase buildout $0 $21,811 $109,053 $218,105 1 City of La Quinta Budget, 2022-2023; General Fund Expenses for Police. Page 26 of 29 358 Sphere of Influence Analysis City of La Quinta Costs of Fire Protection Summary Table Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Annual Fire Protection Costs from: Existing Residential Units $235,505 $235,505 $235,505 $235,505 Future Low Density Residential $0 $994,441 $4,972,206 $9,944,412 Future High Density Residential $0 $21,811 $109,053 $218,105 Total annual Fire Protection Costs at phase buildout: $235,505 $1,251,757 $5,316,764 $10,398,022 Page 27 of 29 359 Sphere of Influence Analysis City of La Quinta Total Potential Costs/Revenues Summary Table Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) ANNUAL REVENUES General Fund: Property Tax County RPTTF $285,000 $285,000 $285,000 $285,000 Property Tax in Lieu of VLF $152,999 $732,857 $3,052,290 $5,951,581 Property Transfer Tax $0 $844,799 $3,379,196 $4,223,995 Sales Tax & Measure G $0 $1,319,108 $8,244,426 $16,488,852 Transient Occupancy Tax $437,183 $1,632,611 $6,414,323 $12,391,462 Franchise Fees $55,741 $293,929 $1,246,679 $2,423,540 Subtotal, General Fund $930,923 $5,108,304 $22,621,913 $41,764,430 Special Revenue Funds: Gas Tax $30,399 $161,576 $686,283 $1,328,092 Measure A $0 $4,295 $26,842 $53,685 Subtotal, Special Revenue Funds $30,399 $165,870 $713,126 $1,381,776 Total, All Revenues $991,721 $5,440,045 $24,048,165 $44,527,982 ANNUAL COSTS Costs of General Government $377,608 $2,007,062 $8,524,877 $16,672,146 Costs of Public Works $54,875 $291,671 $1,238,858 $2,422,840 Costs of Police Protection $483,833 $2,571,667 $10,923,003 $21,362,174 Costs of Fire Protection $235,505 $1,251,757 $5,316,764 $10,398,022 Total Annual Costs $1,151,821 $6,122,157 $26,003,502 $50,855,183 Balance at Phase Buildout -$160,100 -$682,112 -$1,955,337 -$6,327,200 DEVELOPMENT IMPA CT FEE REVENUES (One time only) Total Development Impact Fees $0 $20,588,878 $82,355,513 $102,944,391 Total Development Impact Fee Revenues $0 $20,588,878 $82,355,513 $102,944,391 Page 28 of 29 360 Sphere of Influence Analysis City of La Quinta Total Potential Costs/Revenues Summary Table Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) ANNUAL REVENUES General Fund: Property Tax $256,710 $1,229,303 $5,119,675 $9,982,640 Property Tax in Lieu of VLF $152,999 $732,857 $3,052,290 $5,951,581 Property Transfer Tax $0 $844,799 $3,379,196 $4,223,995 Sales Tax & Measure G $0 $1,319,108 $8,244,426 $16,488,852 Transient Occupancy Tax $437,183 $1,632,611 $6,414,323 $12,391,462 Franchise Fees $55,741 $293,929 $1,246,679 $2,423,540 Subtotal, General Fund $902,633 $6,052,607 $27,456,588 $51,462,070 Special Revenue Funds: Gas Tax $30,399 $161,576 $686,283 $1,328,092 Measure A $0 $4,295 $26,842 $53,685 Subtotal, Special Revenue Funds $30,399 $165,870 $713,126 $1,381,776 Total, All Revenues $963,431 $6,384,348 $28,882,840 $54,225,623 ANNUAL COSTS Costs of General Government $377,608 $2,007,062 $8,524,877 $16,672,146 Costs of Public Works $54,875 $291,671 $1,238,858 $2,422,840 Costs of Police Protection $483,833 $2,571,667 $10,923,003 $21,362,174 Costs of Fire Protection $235,505 $1,251,757 $5,316,764 $10,398,022 Total Annual Costs $1,151,821 $6,122,157 $26,003,502 $50,855,183 Balance at Phase Buildout -$188,390 $262,191 $2,879,338 $3,370,440 DEVELOPMENT IMPACT FEE REVENUES (One time only) Total Development Impact Fees $0 $20,588,878 $82,355,513 $102,944,391 Total Development Impact Fee Revenues $0 $20,588,878 $82,355,513 $102,944,391 Page 29 of 29 361 Appendix B Expanded Sphere: Detailed Cost/Revenue Tables B 362 Sphere of Influence Analysis City of La Quinta Property Tax Revenue From Existing Conditions Existing Conditions (Includes all parcels, vacant and developed.) Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Current Valuation $354,004,620 $354,004,620 $354,004,620 $354,004,620 Calculation of Property Tax Revenue Total Property Tax Collected by County at phase buildout' $3,540,046 $3,540,046 $3,540,046 $3,540,046 Percent of Property Tax Allocated to City's General Fund 6.5% 6.5% 6.5% 6.5% Annual Property Tax revenue allocated to City $230,103 $230,103 $230,103 $230,103 I Riverside County Assessor data, aquired November 2022. From Future Development (Building values only) Zoning Designation: Very Low Density Residential (2/AC) Total Developable Acres: 1,768 No. of Potential Buildout Units: 3,535 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Calculation of Property Tax Revenue Number of acres developed during phase - 177 707 884 Maximum density permitted (units/acre)' 2 2 2 2 Maximum potential units constructed during this phase 0 354 1,414 1,768 Number of total potential units constructed at buildout' 0 354 1,768 3,536 Median value per unit2 $792,500 $792,500 $792,500 $792,500 Total Value $0 $280,228,000 $1,401,140,000 $2,802,280,000 Property Tax Rate 1% 1% 1% 1% Total Property Tax Collected by County at Phase Buildout $0 $2,802,280 $14,011,400 $28,022,800 Percent of Property Tax Allocated to City's General Fund3 6.50% 6.50% 6.50% 6.50% Annual Property Tax revenue allocated to City $0 $182,148 $910,741 $1,821,482 1 Assumes 2 DU/acre, consistent with City development pattems 2 Median sale price, December 2022 3 La Quinta Finance Department Page 1 of 38 363 Sphere of Influence Analysis City of La Quinta Zoning Designation: Low Density Residential (Ag Overlay, 3/AC) Total Developable Acres: 329 No. of Potential Buildout Units: 987 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Calculation of Property Tax Revenue Number of acres developed during phase - 33 132 165 Maximum density permitted (units/acre)1 3 3 3 3 Maximum potential units constructed during this phase 0 99 395 494 Number of total potential units constructed at buildout1 0 99 494 987 Median value per unit2 $792,500 $792,500 $792,500 $792,500 Total Value $0 $78,219,750 $391,098,750 $782,197,500 Property Tax Rate 1% 1% 1% 1% Total Property Tax Collected by County at Phase Buildout $0 $782,198 $3,910,988 $7,821,975 Percent of Property Tax Allocated to City's General Fund3 6.50% 6.50% 6.50% 6.50% Annual Property Tax revenue allocated to City $0 $50,843 $254,214 $508,428 I Assumes 3 DU/acre, consistent with City development patterns 2 Median sale price, December 2022 3 La Quinta Finance Department Zoning Designation: Medium Density Residential (8/AC) Total Developable Acres: 447 No. of Potential Buildout Units: 3,576 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Calculation of Property Tax Revenue Number of acres developed during phase - 45 179 224 Maximum density permitted (units/acre)1 8 8 8 8 Maximum potential units constructed during this phase 0 358 1,430 1,788 Number of total potential units constructed at buildout' 0 358 1,788 3,576 Median value per unit2 $792,500 $792,500 $792,500 $792,500 Total Value $0 $283,398,000 $1,416,990,000 $2,833,980,000 Property Tax Rate 1% 1% 1% 1% Total Property Tax Collected by County at Phase Buildout $0 $2,833,980 $14,169,900 $28,339,800 Percent of Property Tax Allocated to City's General Fund3 6.50% 6.50% 6.50% 6.50% Annual Property Tax revenue allocated to City $0 $184,209 $921,044 $1,842,087 I Assumes 8 DU/acre, consistent with City zoning 2 Median sale price, December 2022 3 La Quinta Finance Department Page 2 of 38 364 Sphere of Influence Analysis City of La Quinta Zoning Designation: High Density Residential (16/AC) Total Developable Acres:35 No. of Potential Buildout Units: 559 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Calculation of Property Tax Revenue Number of acres developed during phase 0.0 3.5 14.0 17.5 Maximum density permitted (units/acre)' 16.0 16.0 16.0 16.0 Maximum potential units constructed during this phase 0 56 223 279 Number of total potential units constructed at buildout 0 56 279 558 Average value per unit' $225,000 $225,000 $225,000 $225,000 Total Value $0 $12,564,000 $62,820,000 $125,640,000 Property Tax Rate 1% 1% 1% 1% Total Property Tax Collected by County at Phase Buildout $0 $125,640 $628,200 $1,256,400 Percent of Property Tax Allocated to City's General Fund2 6.50% 6.50% 6.50% 6.50% Annual Property Tax revenue allocated to City $0 $8,167 $40,833 $81,666 based on average value of new multi -family dwelling unit, per building permits 2019-2021, Palm Desert Building Department, and average construction hard costs plus contingency of new multi -family dwelling unit at Millenium Palm Desert. 2 La Quinta Finance Department Zoning Designation: Community Commercial Total Developable Acres: 236.5 No. of Potential Buildout Sq. Ft.: 2,575,777 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Calculation of Property Tax Revenue Number of acres developed during phase 0.0 23.7 94.6 118.3 Square footage constructed during this phase 0.0 257,549 1,030,194 1,288,034 Total square footage constructed at phase buildout 0 257,549 1,287,743 2,575,777 Average value per square foot1 $170.92 $170.92 $170.92 $170.92 Total Value $0 $44,020,190 $220,100,948 $440,251,719 Property Tax Rate 1% 1% 1% 1% Total Property Tax Collected by County at Phase Buildout $0 $440,202 $2,201,009 $4,402,517 Percent of Property Tax Allocated to City's General Fund 6.50% 6.50% 6.50% 6.50% Annual Property Tax revenue allocated to City $0 $28,613 $143,066 $286,164 I average value per square foot of new commercial development, per building permits 2019-2021, Palm Desert Building Department. Page 3 of 38 365 Sphere of Influence Analysis City of La Quinta Zoning Designation: Industrial (includes 40.96 AC of private land at Airport, designated MC) Total Developable Acres: 445 No. of Potential Buildout Sq. Ft.: 6,606,265 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Calculation of Property Tax Revenue Number of acres developed during phase 0.00 44.50 178 222.50 Square footage constructed during this phase 0.00 678,447 2,713,788 3,214,030 Total square footage constructed at phase buildout 0 678,447 3,392,235 6,606,265 Average value per square foot' $139.66 $139.66 $139.66 $139.66 Total Value $0 $94,751,908 $473,759,540 $922,630,970 Property Tax Rate 1% 1% 1% 1% Total Property Tax Collected by County at Phase Buildout $0 $947,519 $4,737,595 $9,226,310 Percent of Property Tax Allocated to City's General Fund 6.50% 6.50% 6.50% 6.50% Annual Property Tax revenue allocated to City $0 $61,589 $307,944 $599,710 1 average value per square foot of new industrial/business park development, per building permits 2019-2021, Palm Desert Building Department. Page 4 of 38 366 Sphere of Influence Analysis City of La Quinta Property Tax Revenue Summary Table Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Annual Property Tax revenue allocated to City from: Existing conditions $230,103 $230,103 $230,103 $230,103 Future Very Low Density Residential $0 $182,148 $910,741 $1,821,482 Future Low Density Residential $0 $50,843 $254,214 $508,428 Future Medium Density Residential $0 $184,209 $921,044 $1,842,087 Future High Density Residential $0 $8,167 $40,833 $81,666 Future Community Commercial $0 $28,613 $143,066 $286,164 Future Industrial $0 $61,589 $307,944 $599,710 Total annual Property Tax revenue at phase buildout: $230,103 $745,671 $2,807,944 $5,369,640 Page 5 of 38 367 Sphere of Influence Analysis City of La Quinta Property Tax In Lieu of Vehicle License Fees (VLF) Revenue From Existing Conditions Existing Conditions (Includes all parcels, vacant and developed.) Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Calculation of Annual Property Tax In Lieu of VLF revenue Property Tax Revenue to City $230,103 $230,103 $230,103 $230,103 Percentage of Property Tax Revenue' 59.6% 59.6% 59.6% 59.6% Annual Property Tax In Lieu of VLF revenue $137,141 $137,141 $137,141 $137,141 1 Per 2022/2023 Budget, PTINVLF is 59.6% of total property tax (not including RTTF passthrough) From Future Development Zoning Designation: Very Low Density Residential Total Developable Acres: 1,768 No. of Potential Buildout Units: 3,535 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Land Use Buildout Data Number of acres developed during phase 0.00 176.80 707.20 884.00 Maximum density permitted (units/acre) 2.00 2.00 2.00 2.00 Maximum potential units constructed during this phase 354 1,414 1,768 Number of total potential units constructed at phase buildout 0 354 1,768 3,536 Calculation of Annual Property Tax In Lieu of VLF revenue Property Tax Revenue Allocated to City $0 $182,148 $910,741 $1,821,482 Percentage of Property Tax Revenue 59.6% 59.6% 59.6% 59.6% Annual Property Tax In Lieu of VLF revenue $0 $108,560 $542,802 $1,085,603 Zoning Designation: Low Density Residential (Ag Overlay, 3/AC) Total Developable Acres: 329 No. of Potential Buildout Units: 987 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Land Use Buildout Data Number of acres developed during phase 0.00 32.90 131.60 164.50 Maximum density permitted (units/acre) 3.00 3.00 3.00 3.00 Maximum potential units constructed during this phase 0 99 395 494 Number of total potential units constructed at phase buildout 0 99 494 987 Calculation of Annual Property Tax In Lieu of VLF revenue Property Tax Revenue Allocated to City $0 $50,843 $254,214 $508,428 Percentage of Property Tax Revenue 59.6% 59.6% 59.6% 59.6% Annual Property Tax In Lieu of VLF revenue $0 $30,302 $151,512 $303,023 Page 6 of 38 368 Sphere of Influence Analysis City of La Quinta Zoning Designation: Medium Density Residential (8/AC) Total Developable Acres: 447 No. of Potential Buildout Units: 3,576 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Land Use Buildout Data Number of acres developed during phase 0.00 44.70 178.80 223.50 Maximum density permitted (units/acre) 8.00 8.00 8.00 8.00 Maximum potential units constructed during this phase Buildout Phase 0 0 0 Number of total potential units constructed at phase buildout 0 358 1,788 3,576 Calculation of Annual Property Tax In Lieu of VLF revenue Property Tax Revenue Allocated to City $0 $184,209 $921,044 $1,842,087 Percentage of Property Tax Revenue 59.6% 59.6% 59.6% 59.6% Annual Property Tax In Lieu of VLF revenue $0 $109,788 $548,942 $1,097,884 Zoning Designation: High Density Residential (16/AC) Total Developable Acres:35 No. of Potential Buildout Units: 559 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Land Use Buildout Data Number of acres developed during phase 0.00 3.49 13.96 17.45 Maximum density permitted (units/acre) 16.0 16.0 16.0 16.0 Maximum potential units constructed during this phase 0 56 223 279 Number of total potential units constructed at phase buildout 0 56 279 558 Calculation of Annual Property Tax In Lieu of VLF revenue Property Tax Revenue Allocated to City $0 $8,167 $40,833 $81,666 Percentage of Property Tax Revenue 59.6% 59.6% 59.6% 59.6% Annual Property Tax In Lieu of VLF revenue $0 $4,867 $24,336 $48,673 Zoning Designation: Community Commercial Total Developable Acres: 236 No. of Potential Buildout Sq. Ft: 2,575,777 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Land Use Buildout Data Number of acres developed during phase 0.00 23.65 94.60 118.25 Square footage constructed at Phase buildout 0 257,549 1,287,743 2,575,777 Calculation of Annual Property Tax In Lieu of VLF revenue Property Tax Revenue Allocated to City $0 $28,613 $143,066 $286,164 Percentage of Property Tax Revenue 59.6% 59.6% 59.6% 59.6% Annual Property Tax In Lieu of VLF revenue $0 $17,053 $85,267 $170,554 Page 7 of 38 369 Sphere of Influence Analysis City of La Quinta Zoning Designation: Industrial (includes 40.96 AC of private land at Airport, designated MC) Total Developable Acres: 445 No. of Potential Buildout Sq. Ft.: 6,606,265 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Land Use Buildout Data Number of acres developed during phase 0.00 44.50 178.00 222.50 Square footage constructed at Phase buildout 0 678,447 3,392,235 6,606,265 Calculation of Annual Property Tax In Lieu of VLF revenue Property Tax Revenue Allocated to City $0 $61,589 $307,944 $599,710 Percentage of Property Tax Revenue 59.6% 59.6% 59.6% 59.6% Annual Property Tax In Lieu of VLF revenue $0 $36,707 $183,534 $357,427 Page 8 of 38 370 Sphere of Influence Analysis City of La Quinta Motor Vehicle In -Lieu Revenue Summary Table Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Annual Property Tax In -Lieu VLF revenue to City from: Existing conditions $137,141 $137,141 $137,141 $137,141 Future Very Low Density Residential $0 $108,560 $542,802 $1,085,603 Future Low Density Residential $0 $30,302 $151,512 $303,023 Future Medium Density Residential $0 $109,788 $548,942 $1,097,884 Future High Density Residential $0 $4,867 $24,336 $48,673 Future Community Commercial $0 $17,053 $85,267 $170,554 Future Industrial $0 $36,707 $183,534 $357,427 Total annual Property Tax In -Lieu VLF revenue at phase buildout: $137,141 $444,420 $1,673,535 $3,200,306 Page 9 of 38 371 Sphere of Influence Analysis City of La Quinta Property Transfer Tax Revenue Zoning Designation: Very Low Density Residential (2/AC) Total Developable Acres: 1,768 No. of Potential Buildout Units: 3,535 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) New Units (100% of market value is subject to tax) Number of acres developed - 177 707 884 Maximum Density permitted (units/acre) 2.0 2.0 2.0 2.0 Number of new units during this phase - 354 1,414 1,768 Market Value per unit $792,500 $792,500 $792,500 $792,500 Amount Subject to Property Transfer Tax for all new units sold $0 $280,228,000 $1,120,912,000 $1,401,140,000 Property Transfer Tax Rate 0.11% 0.11% 0.11% 0.11% Total Property Transfer Tax Collected at Phase Buildout $0 $308,251 $1,233,003 $1,541,254 Percent of Property Transfer Tax allocated to City 50% 50% 50% 50% Total Property Transfer Tax Allocated to City General Fund $0 $154,125 $616,502 $770,627 Existing Units (80% of market value is subject to tax) Number of Units changing ownership 0 35 141 177 Property Value per dwelling unit $792,500 $792,500 $792,500 $792,500 Unencumbered Value per unit (80% of value) $634,000 $634,000 $634,000 $634,000 Amount subject to Property Transfer Tax $0 $22,418,240 $89,672,960 $112,091,200 Property Transfer Tax Rate 0.11% 0.11% 0.11% 0.11% Total Property Transfer Tax Collected $0 $24,660 $98,640 $123,300 Percent of Property Transfer Tax allocated to City 50% 50% 50% 50% Total Property Transfer Tax Allocated to City General Fund $0 $12,330 $49,320 $61,650 Total Property Transfer Tax (New and Existing Units) $0 $166,455 $665,822 $832,277 Zoning Designation: Low Density Residential (Ag Overlay, 3/AC) Total Developable Acres: 329 No. of Potential Buildout Units: 987 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) New Units (100% of market value is subject to tax) Number of acres developed - 33 132 165 Maximum Density permitted (units/acre) 3.0 3.0 3.0 3.0 Number of new units during this phase - 99 395 494 Market Value per unit $792,500 $792,500 $792,500 $792,500 Amount Subject to Property Transfer Tax for all new units sold $0 $78,219,750 $312,879,000 $391,098,750 Property Transfer Tax Rate 0.11% 0.11 % 0.11% 0.11% Total Property Transfer Tax Collected at Phase Buildout $0 $86,042 $344,167 $430,209 Percent of Property Transfer Tax allocated to City 50% 50% 50% 50% Total Property Transfer Tax Allocated to City General Fund $0 $43,021 $172,083 $215,104 Existing Units (80% of market value is subject to tax) Number of Units changing ownership 0 10 39 49 Property Value per dwelling unit $792,500 $792,500 $792,500 $792,500 Unencumbered Value per unit (80% of value) $634,000 $634,000 $634,000 $634,000 Amount subject to Property Transfer Tax $0 $6,257,580 $25,030,320 $31,287,900 Property Transfer Tax Rate 0.11% 0.11% 0.11% 0.11% Total Property Transfer Tax Collected $0 $6,883 $27,533 $34,417 Percent of Property Transfer Tax allocated to City 50% 50% 50% 50% Total Property Transfer Tax Allocated to City General Fund $0 $3,442 $13,767 $17,208 Total Property Transfer Tax (New and Existing Units) $0 $46,463 $185,850 $232,313 Page 10 of 38 372 Sphere of Influence Analysis City of La Quinta Zoning Designation: Medium Density Residential (8/A C) Total Developable Acres: 447 No. of Potential Buildout Units: 3,576 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) New Units (100% of market value is subject to tax) Number of acres developed - 45 179 224 Maximum Density permitted (units/acre) 8.0 8.0 8.0 8.0 Number of new units during this phase - 358 1,430 1,788 Market Value per unit $792,500 $792,500 $792,500 $792,500 Amount Subject to Property Transfer Tax for all new units sold $0 $283,398,000 $1,133,592,000 $1,416,990,000 Property Transfer Tax Rate 0.11% 0.11% 0.11% 0.11% Total Property Transfer Tax Collected at Phase Buildout $0 $311,738 $1,246,951 $1,558,689 Percent of Property Transfer Tax allocated to City 50% 50% 50% 50% Total Property Transfer Tax Allocated to City General Fund $0 $155,869 $623,476 $779,345 Existing Units (80% of market value is subject to tax) Number of Units changing ownership 0 36 143 179 Property Value per dwelling unit $792,500 $792,500 $792,500 $792,500 Unencumbered Value per unit (80% of value) $634,000 $634,000 $634,000 $634,000 Amount subject to Property Transfer Tax $0 $22,671,840 $90,687,360 $113,359,200 Property Transfer Tax Rate 0.11% 0.11% 0.11% 0.11% Total Property Transfer Tax Collected $0 $24,939 $99,756 $124,695 Percent of Property Transfer Tax allocated to City 50% 50% 50% 50% Total Property Transfer Tax Allocated to City General Fund $0 $12,470 $49,878 $62,348 Total Property Transfer Tax (New and Existing Units) $0 $168,338 $673,354 $841,692 Page 11 of 38 373 Sphere of Influence Analysis City of La Quinta Property Transfer Tax Revenue Summary Table Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Annual Property Transfer Tax revenue to City from: Future Very Low Density Residential $0 $166,455 $665,822 $832,277 Future Low Density Residential $0 $46,463 $185,850 $232,313 Future Medium Density Residential $0 $168,338 $673,354 $841,692 Total annual Property Transfer Tax revenue at phase buildout: $0 $168,338 $673,354 $841,692 Page 12 of 38 374 Sphere of Influence Analysis City of La Quinta Sales Tax Revenue, Measure G Revenue Measure A Revenue Existing Conditions Existing Sales Tax Collected Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Current Taxable Sales Base sales tax collected by City $0 $0 $0 $0 Measure G sales tax collected by City $0 $0 $0 $0 Annual sales tax revenue collected by City $0 $0 $0 $0 From Future Commercial Development Zoning Designation: Community Commercial Total Developable Acres: 236.5 No. of Potential Buildout Sq. Ft.: 2,575,777 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Land Use Data Number of acres developed during this phase 0.0 23.7 94.6 118.3 Number of acres developed at phase buildout 0.0 23.7 118.3 236.5 Number of square feet developed during this phase 0 257,549 1,030,194 1,288,034 Number of square feet developed at phase buildout 0 257,549 1,287,743 2,575,777 Calculation of Total Leasable Square Feet Percent leasable space 90% 90% 90% 90% No. of leasable square feet 0 231,794 1,158,968 2,318,199 "Retail Commercial" Development Percent of leasable sq. ft. considered "Retail Commercial" 80% 80% 80% 80% No. of leasable sq. ft. considered "Retail Commercial" 0 185,435 1,158,968 2,318,199 Ave. annual sales volume per sq. ft. $283.00 $283.00 $283.00 $283.00 Total annual sales from "Retail Commercial" development $0 $52,478,082 $327,988,015 $656,050,275 Calculation of Total Sales Tax Revenues Total annual sales at phase buildout $0 $52,478,082 $327,988,015 $656,050,275 City sales tax rate 1.00% 1.00% 1.00% 1.00% Base sales tax collected by City - 524,781 3,279,880 6,560,503 Measure G tax rate 1.00% 1.00% 1.00% 1.00% Measure G sales tax collected by City' - 603,498 3,771,862 7,544,578 Annual sales tax revenue collected by City at phase buildout $0 $1,128,279 $7,051,742 $14,105,081 1 Includes 15% above 1 °% per historic performance - assumed to be off -site delivery increase Calculation of Measure A Revenues County -wide Measure A tax rate 0.50% 0.50% 0.50% 0.50% Amount collected for County -wide Measure A fund $0 $262,390 $1,639,940 $3,280,251 Percent allocated to the Coachella Valley region 2 20% 20% 20% 20% Amount allocated to the Coachella Valley region $0 $52,478 $327,988 $656,050 Percent allocated to local streets and roads 2 35% 35% 35% 35% Amount allocated to local streets and roads $0 $18,367 $114,796 $229,618 Percent allocated to City 2 20% 20% 20% 20% Amount allocated to City $0 $3,673 $22,959 $45,924 2 Measure A distribution data provided by John Standiford, Deputy Executive Director, Riverside County Transportation Commission, Dec. 30, 2021. Page 13 of 38 375 Sphere of Influence Analysis City of La Quinta Sales Tax Revenue Summary Table Buildout Phase Phase 1 (At Annexation) of Vacant Land Developed) of Vacant Land Developed) Phase 4 (Build Out) Annual Sales Tax revenue to City from: Existing Sales Tax $o $o $o $o Future Community Commercial $0 $1,128,279 $7,051,742 $14,105,081 Total annual Sales Tax revenue at phase buildout: $0 $1,128,279 $7,051,742 $14,105,081 Measure A Revenue Summary Table Buildout Phase Phase 1 (At Annexation) of Vacant Land Developed) of Vacant Land Developed) Phase 4 (Build Out) Annual Measure A revenue to City from: Future Community Commercial $0 $3,673 $22,959 $45,924 Total annual Measure A revenue at phase buildout: $0 $3,673 $22,959 $45,924 Page 14 of 38 376 Sphere of Influence Analysis City of La Quinta Transient Occupancy Tax Revenue From Existing Conditions Existing Conditions Transient Occupancy Tax Collected by County 2020/2021 Fiscal Year Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Current TOT Collected by County $0 $0 $0 $0 From Future Short Term Vacation Rentals Zoning Designation: Very Low Density Residential (2/AC) Total Developable Acres: 1,768 No. of Potential Buildout Units: 3,535 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Land Use Buildout Data Number of acres developed during this phase 0 177 707 884 Number of acres developed at phase buildout 0 177 884 1,768 Number of units developed during this phase 0 354 1,414 1,768 Number of units developed at phase buildout 0 354 1,768 3,536 Calculation of TOT Revenue Participation Rate 10% 10% 10% 10% Total STVRs at Phase Buildout 0 35 177 354 Average rate ($ per night) $365.00 $365.00 $365.00 $365.00 Average occupancy rate 50% 50% 50% 50% Annual revenue from all rooms at phase buildout $0 $2,355,418 $11,777,090 $23,554,180 City's Transient Occupancy Tax Rate 10% 10% 10% 10% City's annual TOT revenue at phase buildout $0 $235,542 $1,177,709 $2,355,418 Zoning Designation: Low Density Residential (Ag Overlay, 3/AC) Total Developable Acres: 329 No. of Potential Buildout Units: 987 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Land Use Buildout Data Number of acres developed during this phase 0 33 132 165 Number of acres developed at phase buildout 0 33 165 329 Number of units developed during this phase 0 99 395 494 Number of units developed at phase buildout 0 99 494 987 Calculation of TOT Revenue Participation Rate 10% 10% 10% 10% Total STVRs at Phase Buildout 0 10 49 99 Average rate ($ per night) $365.00 $365.00 $365.00 $365.00 Average occupancy rate 50% 50% 50% 50% Annual revenue from all rooms at phase buildout $0 $657,465 $3,287,327 $6,574,654 City's Transient Occupancy Tax Rate 10% 10% 10% 10% City's annual TOT revenue at phase buildout $0 $65,747 $328,733 $657,465 Page 15 of 38 377 Sphere of Influence Analysis City of La Quinta Zoning Designation: Medium Density Residential (8/AC) Total Developable Acres: 447 No. of Potential Buildout Units: 3,576 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Land Use Buildout Data Number of acres developed during this phase 0 45 179 224 Number of acres developed at phase buildout 0 45 224 447 Number of units developed during this phase 0 358 1,430 1,788 Number of units developed at phase buildout 0 358 1,788 3,576 Calculation of TOT Revenue Participation Rate 10% 10% 10% 10% Total STVRs at Phase Buildout 0 36 179 358 Average rate ($ per night) $365.00 $365.00 $365.00 $365.00 Average occupancy rate 50% 50% 50% 50% Annual revenue from all rooms at phase buildout $0 $2,382,063 $11,910,315 $23,820,630 City's Transient Occupancy Tax Rate 10% 10% 10% 10% City's annual TOT revenue at phase buildout $0 $238,206 $1,191,032 $2,382,063 Page 16 of 38 378 Sphere of Influence Analysis City of La Quinta TOT Revenue Summary Table Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Annual TOT revenue to City from: Existing STVRs $0 $0 $0 $0 Future STVRs $0 $539,495 $2,697,473 $5,394,946 Total annual TOT revenue at phase buildout: $0 $539,495 $2,697,473 $5,394,946 Page 17 of 38 379 Sphere of Influence Analysis City of La Quinta Gas Tax Revenue From Existing Conditions Existing Housing Units Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Existing Housing Units 276 276 276 276 Calculation of Annual Gas Tax Revenue Average no. persons per household' 2.37 2.37 2.37 2.37 Potential population at phase buildout 654 654 654 654 Estimated annual per capita gas tax revenue 2 $30.18 $30.18 $30.18 $30.18 Annual gas tax revenue at phase buildout $19,741 $19,741 $19,741 $19,741 ' Califomia Department of Finance, January 1, 2022. 2 Gas tax revenue $1,142,800 (City of La Quinta Budget, 2022/2023) divided by City population 37,860 (California Department of Finance, January 1, 2022). Zoning Designation: Very Low Density Residential (2/AC) Total Developable Acres: 1,768 No. of Potential Buildout Units: 3,535 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Development Summary Number of acres developed during phase - 177 707 884 Numbers of acres developed at phase buildout 177 884 1,768 Number of potential units constructed during this phase - 354 1,414 1,768 Number of potential units at phase buildout - 354 1,768 3,536 Calculation of Annual Gas Tax Revenue Average no. persons per household' 2.37 2.37 2.37 2.37 Potential population at phase buildout 0 838 4,190 8,380 Estimated annual per capita gas tax revenue 2 $30.18 $30.18 $30.18 $30.18 Annual gas tax revenue at phase buildout $0 $25,292 $126,459 $252,918 Califomia Department of Finance, January 1, 2022. 2 Gas tax revenue $1,142,800 (City of La Quinta Budget, 2022/2023) divided by City population 37,860 (Califomia Department of Finance, January 1, 2022). Zoning Designation: Low Density Residential (Ag Overlay, 3/AC) Total Developable Acres: 329 No. of Potential Buildout Units: 987 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Development Summary Number of acres developed during phase - 33 132 165 Numbers of acres developed at phase buildout - 33 165 329 Number of potential units constructed during this phase - 99 395 494 Number of potential units at phase buildout - 99 494 987 Calculation of Annual Gas Tax Revenue Average no. persons per household' 2.37 2.37 2.37 2.37 Potential population at phase buildout 0 234 1,170 2,339 Estimated annual per capita gas tax revenue 2 $30.18 $30.18 $30.18 $30.18 Annual gas tax revenue at phase buildout $0 $7,060 $35,298 $70,597 ' Califomia Department of Finance, January 1, 2022. 2 Gas tax revenue $1,142,800 (City of La Quinta Budget, 2022/2023) divided by City population 37,860 (California Department of Finance, January 1, 2022). Page 18 of 38 380 Sphere of Influence Analysis City of La Quinta Zoning Designation: Medium Density Residential (8/AC) Total Developable Acres: 447 No. of Potential Buildout Units: 3,576 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Development Summary Number of acres developed during phase - 45 179 224 Numbers of acres developed at phase buildout - 45 224 447 Number of potential units constructed during this phase - 358 1,430 1,788 Number of potential units at phase buildout - 358 1,788 3,576 Calculation of Annual Gas Tax Revenue Average no. persons per household 2.37 2.37 2.37 2.37 Potential population at phase buildout 0 848 4,238 8,475 Estimated annual per capita gas tax revenue 2 $30.18 $30.18 $30.18 $30.18 Annual gas tax revenue at phase buildout $0 $25,578 $127,890 $255,779 1 Califomia Department of Finance, January 1, 2022. 2 Gas tax revenue $1,142,800 (City of La Quinta Budget, 2022/2023) divided by City population 37,860 (California Department of Finance, January 1, 2022). Zoning Designation: High Density Residential (16/AC) Total Developable Acres:35 No. of Potential Buildout Units: 559 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Development Summary Number of acres developed during phase 0.0 3.5 14.0 17.5 Numbers of acres developed at phase buildout 0.0 3.5 17.5 34.9 Number of potential units constructed during this phase 0 56 223 279 Number of potential units at phase buildout 0 56 279 558 Calculation of Gas Tax Revenue Average no. persons per household 2.37 2.37 2.37 2.37 Potential population at phase buildout 0 132 662 1,323 Estimated annual per capita gas tax revenue 2 $30.18 $30.18 $30.18 $30.18 Annual gas tax revenue at phase buildout $0 $3,994 $19,970 $39,940 1 Califomia Department of Finance, January 1, 2022. 2 Gas tax revenue $1,142,800 (City of La Quinta Budget, 2022/2023) divided by City population 37,860 (California Department of Finance, January 1, 2022). Page 19 of 38 381 Sphere of Influence Analysis City of La Quinta Gas Tax Revenue Summary Table Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Annual Gas Tax revenue to City from: Existing Units $19,741 $19,741 $19,741 $19,741 Future Very Low Density Residential $0 $25,292 $126,459 $252,918 Future Low Density Residential $0 $7,060 $35,298 $70,597 Future Medium Density Residential $0 $25,578 $127,890 $255,779 Future High Density Residential $0 $3,994 $19,970 $39,940 Total Annual Gas Tax Revenue at phase buildout: $19,741 $81,665 $329,359 $638,976 Page 20 of 38 382 Sphere of Influence Analysis City of La Quinta Franchise Fees Revenue From Existing Conditions Existing Housing Units Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Existing Housing Units 276 276 276 276 Calculation of Annual Franchise Revenue Average no. persons per household 2.37 2.37 2.37 2.37 Potential population at phase buildout 654 654 654 654 Estimated annual per capita franchise revenue 2 $55.34 $55.34 $55.34 $55.34 Annual franchise revenue at phase buildout $36,199 $36,199 $36,199 $36,199 1 Califomia Department of Finance, January 1, 2022. 2 Franchise tax revenue $2,095,000 (City of La Quinta Budget, 2022/2023) divided by City population 37,860 (Califomia Department of Finance, January 1, 2022). Zoning Designation: Very Low Density Residential (2/AC) Total Developable Acres: 1,768 No. of Potential Buildout Units: 3,535 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Development Summary Number of acres developed during phase - 177 707 884 Numbers of acres developed at phase buildout - 177 884 1,768 Number of potential units constructed during this phase - 354 1,414 1,768 Number of potential units at phase buildout - 354 1,768 3,536 Calculation of Annual Franchise Revenue Average no. persons per household 2.37 2.37 2.37 2.37 Potential population at phase buildout 0 838 4,190 8,380 Estimated annual per capita franchise revenue 2 $55.34 $55.34 $55.34 $55.34 Annual franchise revenue at phase buildout $0 $46,377 $231,883 $463,767 1 Califomia Department of Finance, January 1, 2022. 2 Franchise tax revenue $2,095,000 (City of La Quinta Budget, 2022/2023) divided by City population 37,860 (Califomia Department of Finance, January 1, 2022). Zoning Designation: Low Density Residential (Ag Overlay, 3/AC) Total Developable Acres: 329 No. of Potential Buildout Units: 987 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Development Summary Number of acres developed during phase - 33 132 165 Numbers of acres developed at phase buildout - 33 165 329 Number of potential units constructed during this phase - 99 395 494 Number of potential units at phase buildout - 99 494 987 Calculation of Annual Franchise Revenue Average no. persons per household 2.37 2.37 2.37 2.37 Potential population at phase buildout 0 234 1,170 2,339 Estimated annual per capita franchise revenue 2 $55.34 $55.34 $55.34 $55.34 Annual franchise revenue at phase buildout $0 $12,945 $64,725 $129,451 1 Califomia Department of Finance, January 1, 2022. 2 Franchise tax revenue $2,095,000 (City of La Quinta Budget, 2022/2023) divided by City population 37,860 (Califomia Department of Finance, January 1, 2022). Page 21 of 38 383 Sphere of Influence Analysis City of La Quinta Zoning Designation: Medium Density Residential (8/AC) Total Developable Acres: 447 No. of Potential Buildout Units: 3,576 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50°/a of Vacant Land Developed) Phase 4 (Build Out) Development Summary Number of acres developed during phase - 45 179 224 Numbers of acres developed at phase buildout - 45 224 447 Number of potential units constructed during this phase - 358 1,430 1,788 Number of potential units at phase buildout - 358 1,788 3,576 Calculation of Annual Franchise Revenue Average no. persons per household 2.37 2.37 2.37 2.37 Potential population at phase buildout 0 848 4,238 8,475 Estimated annual per capita franchise revenue 2 $55.34 $55.34 $55.34 $55.34 Annual franchise revenue at phase buildout $0 $46,901 $234,507 $469,013 1 Califomia Department of Finance, January 1, 2022. 2 Franchise tax revenue $2,095,000 (City of La Quinta Budget, 2022/2023) divided by City population 37,860 (Califomia Department of Finance, January 1, 2022). Zoning Designation: High Density Residential (16/AC) Total Developable Acres:35 No. of Potential Buildout Units: 559 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Development Summary Number of acres developed during phase 0.0 3.5 14.0 17.5 Numbers of acres developed at phase buildout 0.0 3.5 17.5 34.9 Number of potential units constructed during this phase 0 56 223 279 Number of potential units at phase buildout 0 56 279 558 Calculation of Annual Franchise Revenue Average no. persons per household 2.37 2.37 2.37 2.37 Potential population at phase buildout 0 132 662 1,323 Estimated annual per capita franchise revenue 2 $55.34 $55.34 $55.34 $55.34 Annual franchise revenue at phase buildout $0 $7,324 $36,619 $73,237 1 Califomia Department of Finance, January 1, 2022. 2 Gas tax revenue $1,142,800 (City of La Quinta Budget, 2022/2023) divided by City population 37,860 (California Department of Finance, January 1, 2022). Page 22 of 38 384 Sphere of Influence Analysis City of La Quinta Franchise Fees Revenue Summary Table Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Annual Franchise Fee revenue to City from: Existing Units $36,199 $36,199 $36,199 $36,199 Future Very Low Density Residential $0 $46,377 $231,883 $463,767 Future Low Density Residential $0 $12,945 $64,725 $129,451 Future Medium Density Residential $0 $46,901 $234,507 $469,013 Future High Density Residential $0 $7,324 $36,619 $73,237 Total annual Franchise Fee revenue at phase buildout: $36,199 $149,746 $603,933 $1,171,667 Page 23 of 38 385 Sphere of Influence Analysis City of La Quinta Development Impact Fees - New Development Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) From future Very Low Density Residential Development Number of units constructed during this phase - 354 1,414 1,768 DIF per unit $9,380 $9,380 $9,380 $9,380 Total DIF collected $0 $3,316,768 $13,267,072 $16,583,840 From future Low Density Residential Development Number of units constructed during this phase 0 99 395 494 DIF per unit $9,380 $9,380 $9,380 $9,380 Total DIF collected $0 $925,806 $3,703,224 $4,629,030 From future Medium Density Residential Development Number of units constructed during this phase - 358 1,430 1,788 DIF per unit $9,380 $9,380 $9,380 $9,380 Total DlFcollected $0 $3,354,288 $13,417,152 $16,771,440 From future High Density Residential Number of units constructed during this phase 0 56 223 279 DIF per unit $6,113 $6,113 $6,113 $6,113 Total DlFcollected $0 $341,350 $1,365,400 $1,706,750 From future Community Commercial Number of SF constructed during this phase - 257,549 1,030,194 1,288,034 DIF per 1,000 SF $9,191 $9,191 $9,191 $9,191 Total DlFcollected $0 $2,367,128 $9,468,513 $11,838,320 From future Industrial Number of SF constructed during this phase - 678,447' 2,713,788 3,214,030 DIF per 1,000 SF1 $7,589 $7,589 $7,589 $7,589 Total DlFcollected $0 $5,148,734 $20,594,937 $24,391,274 Total Revenue for that phase $0 $15,454,074 $61,816,298 $75,920,654 1 The City does not have a DIF for Industrial development. The Office/Medical DIF has been assumed for purposes of analysis. Page 24 of 38 386 Sphere of Influence Analysis City of La Quinta Costs of General Government Existing Conditions 276 Existing Homes Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Current Units 276 276 276 276 Average number of persons per household 2.37 2.37 2.37 2.37 Total no. of potential residents at phase buildout 654 654 654 654 Calculating Annual Costs of General Government Cost of General Government (per capita)1 $374.89 $374.89 $374.89 $374.89 Total annual cost of General Government at phase buildout $245,223 $245,223 $245,223 $245,223 I City of La Quinta Budget, 2022-2023; General Fund Expenses for Community Resources, Wellness Center, Recreation Programs, Park Maintenance, Marketing, Public Buildings, Design & Development, Planning, Building, Code Compliance/Animal Control, and Engineering Services. Zoning Designation: Very Low Density Residential (2/AC) Total Developable Acres: 1,768 No. of Potential Buildout Units: 3,535 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Land Use Buildout Data Number of acres developed during phase 0 177 707 884 Maximum density permitted (units/acre) 2 2 2 2 Maximum potential units constructed during this phase 0 354 1,414 1,768 Number of total potential units constructed at phase buildout 0 354 1,768 3,536 Average number of persons per household 2.37 2.37 2.37 2.37 Total no. of potential residents at phase buildout 0 838 4,190 8,380 Calculating Annual Costs of General Government Cost of General Government (per capita)1 $374.89 $374.89 $374.89 $374.89 Total annual cost of General Government at phase buildout $0 $314,170 $1,570,849 $3,141,698 1 City of La Quinta Budget, 2022-2023; General Fund Expenses for Community Resources, Wellness Center, Recreation Programs, Park Maintenance, Zoning Designation: Low Density Residential (Ag Overlay, 3/AC) Total Developable Acres: 329 No. of Potential Buildout Units: 987 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Land Use Buildout Data Number of acres developed during phase 0 33 132 165 Maximum density permitted (units/acre) 3 3 3 3 Maximum potential units constructed during this phase 0 99 395 494 Number of total potential units constructed at phase buildout 0 99 494 987 Average number of persons per household 2.37 2.37 2.37 2.37 Total no. of potential residents at phase buildout 0 234 1,170 2,339 Calculating Annual Costs of General Government Cost of General Government (per capita)1 $374.89 $374.89 $374.89 $374.89 Total annual cost of General Government at phase buildout $0 $87,694 $438,469 $876,939 1 City of La Quinta Budget, 2022-2023; General Fund Expenses for Community Resources, Wellness Center, Recreation Programs, Park Maintenance, Marketing, Public Buildings, Design & Development, Planning, Building, Code Compliance/Animal Control, and Engineering Services. Page 25 of 38 387 Sphere of Influence Analysis City of La Quinta Zoning Designation: Medium Density Residential (8/AC) Total Developable Acres: 447 No. of Potential Buildout Units: 3,576 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Land Use Buildout Data Number of acres developed during phase 0 45 179 224 Maximum density permitted (units/acre) 8 8 8 8 Maximum potential units constructed during this phase 0 358 1,430 1,788 Number of total potential units constructed at phase buildout 0 358 1,788 3,576 Average number of persons per household 2.37 2.37 2.37 2.37 Total no. of potential residents at phase buildout 0 848 4,238 8,475 Calculating Annual Costs of General Government Cost of General Government (per capita)1 $374.89 $374.89 $374.89 $374.89 Total annual cost of General Government at phase buildout $0 $317,724 $1,588,619 $3,177,238 1 City of La Quinta Budget, 2022-2023; General Fund Expenses for Community Resources, Wellness Center, Recreation Programs, Park Maintenance, Zoning Designation: High Density Residential (16/AC) Total Developable Acres:35 No. of Potential Buildout Units: 559 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50)/0 of Vacant Land Developed) Phase 4 (Build Out) Land Use Buildout Data Number of acres developed during phase 0.0 3.5 14.0 17.5 Maximum density permitted (units/acre) 16 16 16 16 Maximum potential units constructed during this phase 0 56 223 279 Number of total potential units constructed at phase buildout 0 56 279 558 Average number of persons per household 2.37 2.37 2.37 2.37 Total no. of potential residents at phase buildout - 132 662 1,323 Calculating Annual Costs of General Government Cost of General Government (per capita)1 $374.89 $374.89 $374.89 $374.89 Total annual cost of General Government at phase buildout $0 $49,613 $248,066 $496,132 I City of La Quinta Budget, 2022-2023; General Fund Expenses for Community Resources, Wellness Center, Rec eation Programs, Park Maintenance, Marketing, Public Buildings, Design & Development, Planning, Building, Code Compliance/Animal Control, and Engineering Services. Page 26 of 38 388 Sphere of Influence Analysis City of La Quinta Costs of General Government Summary Table Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Annual General Government Costs from: Existing Development $245,223 $245,223 $245,223 $245,223 Future Very Low Density Residential $0 $314,170 $1,570,849 $3,141,698 Future Low Density Residential $0 $87,694 $438,469 $876,939 Future Medium Density Residential $0 $317,724 $1,588,619 $3,177,238 Future High Density Residential $0 $49,613 $248,066 $496,132 Total annual General Government Costs at phase buildout: $245,223 $1,014,424 $4,091,227 $7,937,230 Page 27 of 38 389 Sphere of Influence Analysis City of La Quinta Costs of Public Works Existing Conditions 276 Existing Homes Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Current Units 276 276 276 276 Average number of persons per household 2.37 2.37 2.37 2.37 Total no. of potential residents at phase buildout 654 654 654 654 Calculating Annual Costs of Public Works Cost of Public Works (per capita)' $54.48 $54.48 $54.48 $54.48 Total annual cost of Public Works at phase buildout $35,636 $35,636 $35,636 $35,636 I City of La Quinta Budget, 2022-2023; General Fund Expenses for Public Works Administration, Development Services, Streets Zoning Designation: Very Low Density Residential (2/AC) Total Developable Acres: 1,768 No. of Potential Buildout Units: 3,535 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Land Use Buildout Data Number of acres developed during phase - 177 707 884 Maximum density permitted (units/acre) 2 2 2 2 Maximum potential units constructed during this phase 0 354 1,414 1,768 Number of total potential units constructed at phase buildout 0 354 1,768 3,536 Average number of persons per household 2.37 2.37 2.37 2.37 Total no. of potential residents at phase buildout 0 838 4,190 8,380 Calculating Annual Costs of Public Works Cost of Public Works (per capita)' $54.48 $54.48 $54.48 $54.48 Total annual cost of Public Works at phase buildout $0 $45,656 $228,280 $456,560 1 City of La Quinta Budget, 2022-2023; General Fund Expenses for Public Works Administration, Development Services, Streets Zoning Designation: Low Density Residential (Ag Overlay, 3/AC) Total Developable Acres: 329 No. of Potential Buildout Units: 987 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Land Use Buildout Data Number of acres developed during phase - 33 132 165 Maximum density permitted (units/acre) 3 3 3 3 Maximum potential units constructed during this phase 0 99 395 494 Number of total potential units constructed at phase buildout 0 99 494 987 Average number of persons per household 2.37 2.37 2.37 2.37 Total no. of potential residents at phase buildout 0 234 1,170 2,339 Calculating Annual Costs of Public Works Cost of Public Works (per capita)' $54.48 $54.48 $54.48 $54.48 Total annual cost of Public Works at phase buildout $0 $12,744 $63,720 $127,439 1 City of La Quinta Budget, 2022-2023; General Fund Expenses for Public Works Administration, Development Services, Streets Page 28 of 38 390 Sphere of Influence Analysis City of La Quinta Zoning Designation: Medium Density Residential (8/AC) Total Developable Acres: 447 No. of Potential Buildout Units: 3,576 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Land Use Buildout Data Number of acres developed during phase - 45 179 224 Maximum density permitted (units/acre) 8 8 8 8 Maximum potential units constructed during this phase 0 358 1,430 1,788 Number of total potential units constructed at phase buildout 0 358 1,788 3,576 Average number of persons per household 2.37 2.37 2.37 2.37 Total no. of potential residents at phase buildout 0 848 4,238 8,475 Calculating Annual Costs of Public Works Cost of Public Works (per capita)' $54.48 $54.48 $54.48 $54.48 Total annual cost of Public Works at phase buildout $0 $46,172 $230,862 $461,725 1 City of La Quinta Budget, 2022-2023; General Fund Expenses for Public Works Administration, Development Services, Streets Zoning Designation: High Density Residential (16/AC) Total Developable Acres:35 No. of Potential Buildout Units: 559 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Land Use Buildout Data Number of acres developed during phase 0.0 3.5 14.0 17.5 Maximum density permitted (units/acre) 16 16 16 16 Maximum potential units constructed during this phase 0 56 223 279 Number of total potential units constructed at phase buildout 0 56 279 558 Average number of persons per household 2.37 2.37 2.37 2.37 Total no. of potential residents at phase buildout - 132 662 1,323 Calculating Annual Costs of Public Works Cost of Public Works (per capita)' $54.48 $54.48 $54.48 $54.48 Total annual cost of Public Works at phase buildout $0 $7,210 $36,050 $72,099 I City of La Quinta Budget, 2022-2023; General Fund Expenses for Public Works Administration, Development Services, Streets Page 29 of 38 391 Sphere of Influence Analysis City of La Quinta Costs of Public Works Summary Table Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Annual Public Works Costs from: Existing Residential $35,636 $35,636 $35,636 $35,636 Future Very Low Densty Residential $0 $45,656 $228,280 $456,560 Future Low Density Residential $0 $12,744 $63,720 $127,439 Future Medium Density Residential $0 $46,172 $230,862 $461,725 Future High Density Residential $0 $7,210 $36,050 $72,099 Total annual Public Works Costs at phase buildout: $35,636 $147,419 $594,548 $1,153,459 Page 30 of 38 392 Sphere of Influence Analysis City of La Quinta Costs of Police Protection Existing Conditions 276 Existing Homes Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Current Units 276 276 276 276 Average number of persons per household 2.37 2.37 2.37 2.37 Total no. of potential residents at phase buildout 654 654 654 654 Calculating Annual Costs of Police Protection Cost of Police Services (per capita)1 $480.35 $480.35 $480.35 $480.35 Total annual cost of Police Protection at phase buildout $314,207 $314,207 $314,207 $314,207 1 City of La Quinta Budget, 2022-2023; General Fund Expenses for Police. Zoning Designation: Very Low Density Residential (2/AC) Total Developable Acres: 1,768 No. of Potential Buildout Units: 3,535 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Land Use Buildout Data Number of acres developed during phase - 177 707 884 Maximum density permitted (units/acre) 2 2 2 2 Maximum potential units constructed during this phase 0 354 1,414 1,768 Number of total potential units constructed at phase buildout 0 354 1,768 3,536 Average number of persons per household 2.37 2.37 2.37 2.37 Total no. of potential residents at phase buildout 0 838 4,190 8,380 Calculating Annual Costs of Police Protection Cost of Police Services (per capita)1 $480.35 $480.35 $480.35 $480.35 Total annual cost of Police Protection at phase buildout $0 $402,549 $2,012,743 $4,025,487 1 City of La Quinta Budget, 2022-2023; General Fund Expenses for Police. Zoning Designation: Low Density Residential (Ag Overlay, 3/AC) Total Developable Acres: 329 No. of Potential Buildout Units: 987 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Land Use Buildout Data Number of acres developed during phase - - - - Maximum density permitted (units/acre) 3 3 3 3 Maximum potential units constructed during this phase 0 99 395 494 Number of total potential units constructed at phase buildout 0 99 494 987 Average number of persons per household 2.37 2.37 2.37 2.37 Total no. of potential residents at phase buildout 0 234 1,170 2,339 Calculating Annual Costs of Police Protection Cost of Police Services (per capita)1 $480.35 $480.35 $480.35 $480.35 Total annual cost of Police Protection at phase buildout $0 $112,363 $561,815 $1,123,630 1 City of La Quinta Budget, 2022-2023; General Fund Expenses for Police. Page 31 of 38 393 Sphere of Influence Analysis City of La Quinta Zoning Designation: Medium Density Residential (8/AC) Total Developable Acres: 447 No. of Potential Buildout Units: 3,576 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Land Use Buildout Data Number of acres developed during phase - 45 179 224 Maximum density permitted (units/acre) 8 8 8 8 Maximum potential units constructed during this phase 0 358 1,430 1,788 Number of total potential units constructed at phase buildout 0 358 1,788 3,576 Average number of persons per household 2.37 2.37 2.37 2.37 Total no. of potential residents at phase buildout 0 848 4,238 8,475 Calculating Annual Costs of Police Protection Cost of Police Services (per capita)' $480.35 $480.35 $480.35 $480.35 Total annual cost of Police Protection at phase buildout $0 $407,102 $2,035,512 $4,071,024 Zoning Designation: High Density Residential (16/AC) Total Developable Acres:35 No. of Potential Buildout Units: 559 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Land Use Buildout Data Number of acres developed during phase 0.0 3.5 14.0 17.5 Maximum density permitted (units/acre) 16 16 16 16 Maximum potential units constructed during this phase 0 56 223 279 Number of total potential units constructed at phase buildout 0 56 279 558 Average number of persons per household 2.37 2.37 2.37 2.37 Total no. of potential residents at phase buildout 0 132 662 1323 Calculating Annual Costs of Police Protection Cost of Police Services (per capita)' $480.35 $480.35 $480.35 $480.35 Total annual cost of Police Protection at phase buildout $0 $63,570 $317,850 $635,699 Page 32 of 38 394 Sphere of Influence Analysis City of La Quinta Costs of Police Protection Summary Table Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Annual Police Protection Costs from: Existing Residential Units $314,207 $314,207 $314,207 $314,207 Future Very Low Density Residential $0 $402,549 $2,012,743 $4,025,487 Future Low Density Residential $0 $112,363 $561,815 $1,123,630 Future Medium Density Residential $0 $407,102 $2,035,512 $4,071,024 Future High Density Residential $0 $63,570 $317,850 $635,699 Total annual Police Protection Costs at phase buildout: $314,207 $1,299,790 $5,242,126 $10,170,046 Page 33 of 38 395 Sphere of Influence Analysis City of La Quinta Costs of Fire Protection Existing Conditions 276 Existing Homes Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Current Units 276 276 276 276 Average number of persons per household 2.37 2.37 2.37 2.37 Total no. of potential residents at phase buildout 654 654 654 654 Calculating Annual Costs of Fire Protection Cost of Fire Protection (per capita)' $233.81 $233.81 $233.81 $233.81 Total annual cost of Fire Protection at phase buildout $152,940 $152,940 $152,940 $152,940 1 City of La Quinta Budget, 2022-2023; General Fund Expenses for Police. Zoning Designation: Very Low Density Residential (2/AC) Total Developable Acres: 1,768 No. of Potential Buildout Units: 3,535 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Land Use Buildout Data Number of acres developed during phase - 177 707 884 Maximum density permitted (units/acre) 2 2 2 2 Maximum potential units constructed during this phase 0 354 1,414 1,768 Number of total potential units constructed at phase buildout 0 354 1,768 3,536 Average number of persons per household 2.37 2.37 2.37 2.37 Total no. of potential residents at phase buildout 0 838 4,190 8,380 Calculating Annual Costs of Fire Protection Cost of Fire Protection (per capita)' $233.81 $233.81 $233.81 $233.81 Total annual cost of Fire Protection at phase buildout $0 $195,940 $979,701 $1,959,403 1 City of La Quinta Budget, 2022-2023; General Fund Expenses for Police. Zoning Designation: Low Density Residential (Ag Overlay, 3/AC) Total Developable Acres: 329 No. of Potential Buildout Units: 987 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Land Use Buildout Data Number of acres developed during phase - 33 132 165 Maximum density permitted (units/acre) 3 3 3 3 Maximum potential units constructed during this phase 0 99 395 494 Number of total potential units constructed at phase buildout 0 358 1,788 3,576 Average number of persons per household 2.37 2.37 2.37 2.37 Total no. of potential residents at phase buildout 0 848 4,238 8,475 Calculating Annual Costs of Fire Protection Cost of Fire Protection (per capita)' $233.81 $233.81 $233.81 $233.81 Total annual cost of Fire Protection at phase buildout $0 $198,157 $990,784 $1,981,568 1 City of La Quinta Budget, 2022-2023; General Fund Expenses for Police. Page 34 of 38 396 Sphere of Influence Analysis City of La Quinta Zoning Designation: Medium Density Residential (8/AC) Total Developable Acres: 447 No. of Potential Buildout Units: 3,576 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Land Use Buildout Data Number of acres developed during phase - 45 179 224 Maximum density permitted (units/acre) 8 8 8 8 Maximum potential units constructed during this phase 0 358 1,430 1,788 Number of total potential units constructed at phase buildout 0 358 1,788 3,576 Average number of persons per household 2.37 2.37 2.37 2.37 Total no. of potential residents at phase buildout 0 848 4,238 8,475 Calculating Annual Costs of Fire Protection Cost of Fire Protection (per capita)' $233.81 $233.81 $233.81 $233.81 Total annual cost of Fire Protection at phase buildout $0 $198,157 $990,784 $1,981,568 1 City of La Quinta Budget, 2022-2023; General Fund Expenses for Police. Zoning Designation: High Density Residential (16/AC) Total Developable Acres:35 No. of Potential Buildout Units: 559 Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Land Use Buildout Data Number of acres developed during phase 0.0 3.5 14.0 17.5 Maximum density permitted (units/acre) 16 16 16 16 Maximum potential units constructed during this phase 0 56 223 279 Number of total potential units constructed at phase buildout 0 56 279 558 Average number of persons per household 2.37 2.37 2.37 2.37 Total no. of potential residents at phase buildout - 132 662 1,323 Calculating Annual Costs of Fire Protection Cost of Fire Protection (per capita)' $233.81 $233.81 $233.81 $233.81 Total annual cost of Fire Protection at phase buildout $0 $30,943 $154,713 $309,426 1 City of La Quinta Budget, 2022-2023; General Fund Expenses for Police. Page 35 of 38 397 Sphere of Influence Analysis City of La Quinta Costs of Fire Protection Summary Table Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Annual Fire Protection Costs from: Existing Residential Units $152,940 $152,940 $152,940 $152,940 Future Very Low Density Residential $0 $195,940 $979,701 $1,959,403 Future Low Density Residential $0 $198,157 $990,784 $1,981,568 Future Medium Density Residential $0 $198,157 $990,784 $1,981,568 Future High Density Residential $0 $30,943 $154,713 $309,426 Total annual Fire Protection Costs at phase buildout: $152,940 $776,136 $3,268,922 $6,384,904 Page 36 of 38 398 Sphere of Influence Analysis City of La Quinta Total Potential Costs/Revenues Summary Table Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) ANNUAL REVENUES General Fund: Property Tax Potential County RPTTF $250,000 $250,000 $250,000 $250,000 Property Tax in Lieu of VLF $137,141 $444,420 $1,673,535 $3,200,306 Property Transfer Tax $0 $168,338 $673,354 $841,692 Sales Tax & Measure G $0 $1,128,279 $7,051,742 $14,105,081 Transient Occupancy Tax $0 $539,495 $2,697,473 $5,394,946 Franchise Fees $36,199 $149,746 $603,933 $1,171,667 Subtotal, General Fund $423,340 $2,680,278 $12,950,037 $24,963,692 Special Revenue Funds: Gas Tax $19,741 $81,665 $329,359 $638,976 Measure A $0 $3,673 $22,959 $45,924 Subtotal, Special Revenue Funds $19,741 $85,338 $352,318 $684,899 Total, All Revenues $462,823 $2,850,954 $13,654,672 $26,333,491 ANNUAL COSTS Costs of General Government $245,223 $1,014,424 $4,091,227 $7,937,230 Costs of Public Works $35,636 $147,419 $594,548 $1,153,459 Costs of Police Protection $314,207 $1,299,790 $5,242,126 $10,170,046 Costs of Fire Protection $152,940 $776,136 $3,268,922 $6,384,904 Total Annual Costs $748,006 $3,237,769 $13,196,823 $25,645,640 Balance at Phase Buildout -$285,183 -$386,815 $457,850 $687,851 DEVELOPMENT IMPACT FEE REVENUES (One time only) Total Development Impact Fees $0 $15,454,074 $61,816,298 $75,920,654 Total Development Impact Fee Revenues $0 $15,454,074 $61,816,298 $75,920,654 Page 37 of 38 399 Sphere of Influence Analysis City of La Quinta Total Potential Costs/Revenues Summary Table Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) ANNUAL REVENUES General Fund: Property Tax $230,103 $745,671 $2,807,944 $5,369,640 Property Tax in Lieu of VLF $137,141 $444,420 $1,673,535 $3,200,306 Property Transfer Tax $0 $168,338 $673,354 $841,692 Sales Tax & Measure G $0 $1,128,279 $7,051,742 $14,105,081 Transient Occupancy Tax $0 $539,495 $2,697,473 $5,394,946 Franchise Fees $36,199 $149,746 $603,933 $1,171,667 Subtotal, General Fund $403,443 $3,175,949 $15,507,981 $30,083,332 Special Revenue Funds: Gas Tax $19,741 $81,665 $329,359 $638,976 Measure A $0 $3,673 $22,959 $45,924 Subtotal, Special Revenue Funds $19,741 $85,338 $352,318 $684,899 Total, All Revenues $442,926 $3,346,625 $16,212,616 $31,453,131 ANNUAL COSTS Costs of General Government $245,223 $1,014,424 $4,091,227 $7,937,230 Costs of Public Works $35,636 $147,419 $594,548 $1,153,459 Costs of Police Protection $314,207 $1,299,790 $5,242,126 $10,170,046 Costs of Fire Protection $152,940 $776,136 $3,268,922 $6,384,904 Total Annual Costs $748,006 $3,237,769 $13,196,823 $25,645,640 Balance at Phase Buildout -$305,080 $108,856 $3,015,794 $5,807,491 DEVELOPMENT IMPACT FEE REVENUES (One time only) Total Development Impact Fees $0 $15,454,074 $61,816,298 $75,920,654 Total Development Impact Fee Revenues $0 $15,454,074 $61,816,298 $75,920,654 Page 38 of 38 400