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8.A. - Page 15 of 72 <br />65,000 <br />60,000 <br />55,000 <br />50,000 <br />45,000 <br />40,000 <br />35,000 <br />30,000 <br />25,000 <br />20,000 <br />15,000 <br />10,000 <br />5,000 <br />Development Fees <br />Projected Property Tax, Downtown Property Tax, <br />Sales Tax, and TOT (in thousands) <br />19-20 20-21 21-22 22-23 23-24 24-25 25-26 26-27 27-28 28-29 29-30 <br />Property Tax ■ Downtown Property Tax Sales Tax ■ TOT <br />Development -related fees are used to recover the cost of staff and consultant time to process <br />development applications. The City Council updated these fees in 2017 and 2018. Budgeted revenue for <br />development fees is on par with current estimates. There has been relative stability of development <br />demand in the past five years, and with no clear signs of a significantly declining economy, staff <br />estimates development fee revenues to be slightly higher in FY 2019-20. <br />However, projecting for a ten-year forecast period will be dependent on upcoming City Council policy <br />decisions. The City Council's creation of a vision for development in the core of Redwood City and <br />development of criteria to prioritize future projects will have an impact on development fees. <br />Additionally, projections must take into consideration market trends and state of the economy. <br />Currently, the City is projecting development fees to stay relatively flat over the next ten years. These <br />projections will be updated following the completion of the Central Redwood City Vision. <br />Cannabis <br />The Cannabis Business Tax ordinance became effective and the assessment of the tax began on January <br />1, 2019. The Cannabis Business Tax applies to City approved cannabis business activities: 2.5% of gross <br />receipts for Cannabis Nursery Businesses; and 4.0% of gross receipts for Cannabis Retail Business Sales. <br />As of December 2019, one cannabis business was approved as a cannabis delivery center (non -storefront <br />retail) and five other cannabis businesses have been approved with conditions. Staff will have a better <br />idea of the amount of potential revenue that will be generated as businesses begin to operate in 2020 <br />and taxes are remitted to the City over the next year. <br />Page 15 of 26 <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore <br />250 <br />