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ELF Financing Strategy
<br /> San Mateo County ELF Study‐2016
<br />February 21, 2017
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<br />Prepared by Brion Economics Team Final Report 28
<br />is possible to fund child care. Additionally, none of these mechanisms represent a huge burden. To
<br />summarize, the funding mechanisms would result in the following rates:
<br /> Countywide Sales Tax Add‐On – average of $96 per household per year30
<br /> Countywide Parcel Tax ‐ $41 per residential parcel31
<br /> Countywide Development Impact Fee – about $4,600 per residential unit.
<br />The County could decide to use one of these mechanisms or adopt a policy to fund 50% of need or
<br />some reduced amount, with the assumption that others will step in to fund the rest. It is difficult to
<br />predict how many spaces would be provided with the many mechanisms and funding sources
<br />discussed in this study but it does illustrate that there are ample methods available.
<br />In conclusion, there are many possible combinations of mechanisms that could be used to fund child
<br />care. This analysis presents one possible combination at the county level. Individual cities may choose
<br />to use other methods or combinations. For instance, a city could choose to use just a parcel tax for
<br />existing shortfalls and a developer impact fee for costs associated with new growth. The key purpose
<br />of this analysis is to start to frame the possible financing tools that can be applied to fund the
<br />significant need for child care that exists in San Mateo County currently, and which will only increase
<br />over time.
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<br />30 This rate would be less because businesses and visitors generate sales tax as well, which would go towards the funding of
<br />child care.
<br />31 This rate could be less as well as the costs could be spread over commercial properties.
<br />Table 9
<br />Potential Funding Strategy by Source
<br />San Mateo Countywide ELF Study ‐ 2016
<br />Child Care Cost of Total
<br />Development/Method Spaces Needed New Spaces Sales Tax Parcel Tax Impact Fee Funding
<br />Existing Development 7,802 $327,226,880
<br />Percent Funding 75% 25% 0% 100%
<br />Sales Tax Rate or Assessment/Parcel 0.25% $42
<br />Funding $245,420,160 $81,806,720 $0 $327,226,880
<br />New Development 2,414 $101,222,220
<br />Residential Impact Fee 100% 100%
<br />Impact Fee/New Unit $4,658
<br />Funding $101,222,220 $101,222,220
<br />Total Need & Funding 10,216 $428,449,100 $245,420,160 $81,806,720 $101,222,220 $428,449,100
<br />Percent of Need 57% 19% 24% 100%
<br />Total Finance & Adm Costs $263,379,840 $87,993,280 $2,948,220 $354,321,340
<br />Total Costs/Financing $508,800,000 $169,800,000 $104,170,440 $782,770,440
<br />Sources: Brion Economics, Inc.
<br />Funding Mechanism
<br />8.C. - Page 47
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