AgdaPkt 2018-02-26 Joint SA PFA - Laserfiche WebLink

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7.A - Page 18 65,000 60,000 55,000 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 51000 Projected Property Tax, Downtown Property Tax, Sales Tax, and TOT (in thousands) 0 , 0 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 Property Tax ■ Downtown Property Tax Development Fees FY 2021-22 Sales Tax ■ TOT IN 1 FY 2022-23 Late in FY 2016-17, the City Council approved the adoption of increased fees related to development services and public safety-related fees. Actual revenues in FY 2017-18 are out -pacing the adopted budget revenues. Mid -year budget amendments indicate that budgeted revenue for development fees will increase by approximately $2 million due in large part to the higher fees. Although downtown development applications have slowed, this is a function of development cap limitations rather than demand. Areas outside of downtown are seeing significant development interest, including existing projects known as Harbor View (at Seaport/Blomquist), Sobrato (at Broadway/Woodside), GreyStar V (south of Downtown), Syufy (former Century Theater site on East Bayshore), and Strada (Maple Street, east of Hwy 101). City review of these projects could extend for the next 24 months. However, within the five-year forecast period, the total number of projects (small, medium, and large) may decline, especially if the local and regional economy transitions to a recessionary phase, or if development project financing becomes more restrictive. Due to the volatility of development related revenues and the cyclical nature of these revenues, estimates for FY 2018-19 show a decrease of approximately 7 percent, which reflects the anticipated decrease in development activity. Estimates for subsequent fiscal years indicate additional reductions to these revenues based on an anticipated reduction of large project submittals.