AgdaPkt 2009-12-14 - Laserfiche WebLink

Browse Search

6.1 B - Attachment No. 4 Property Tages Property tax projections for FY 2009/10 call for modest growth, about 1%, over FY 2008/09 with indications that growth will remain flat, or perhaps negative, in FY 2010/11. The downturn in the housing market has affected the San Francisco Peninsula, although not as severely as some areas of the State. This past spring the County of San Mateo Assessor reduced the assessed values of some 15,000 residential properties countywide as their market value had declined to less than the assessed value. Based on property transfer tax revenues it appears that the housing market is still not showing signs of recovery and that assessed values will not be increasing in the near term. There are some indications that due to increase in commercial office vacancy rates the value of some commercial office buildings could be declining which could trigger downward assessments for these properties. Educational Revenue Augmentation Fund Refunds In FY 1992/93 and FY 1993/94, the State shifted property taaces from cities, counties, and special districts to school districts to supplant funding that the State was providing to school districts. The funds shifted from cities, the county, and special districts are placed into the Educational Revenue Augmentation Fund by the county controller. The controller then disburses these funds to school districts based upon the formula prescribed by State law. Any funds remaining in the Educational Revenue Augmentation Fund (after the distribution to the school districts) are returned to the cities, county, and special districts in proportion to the amount they contributed to the Educational Revenue Augmentation Fund. The continued receipt of these funds, which amounted to $3.0 million in FY 2008/09 and $2.7 million in FY 2007/08, depends upon the complicated school financing formula and the State legislature not redirecting these revenues elsewhere. Long-Term Financial Planning The City Council has made economic development a high priority and has directed staff to develop strategies in support of this goal. Inasmuch as most of Redwood City is a built-out out community a good measure of the City's focus is now being devoted to in-fill projects that will intensify uses of existing properties, particularly in the downtown area. In the spring of 2009 the City received a development proposal for the Cargill Saltworks property— 1,400 acres of land east of U.S. Highway 101 that up until recently was used for extracting salt from the San Francisco Bay. The proposal submitted by DMB Associates envisions 50% of the property to be used for a mix of housing, retail, and commercial uses while the remaining 50%would be dedicated to wetlands restoration,open space,and recreation. The receipt of this development proposal begins what will likely be a very thorough, multi-year process of public engagement and environmental review to shape the plan and its alternatives and prepare for the decision making process. Development of this property could have significant fiscal impacts upon the City. These impacts will also be studied as part of the review process. Stanford University has submitted a proposal to redevelop a 35 acre site in Redwood City that was formerly known as the Mid-Point Technology Park. The proposed project includes administrative offices, research and development uses, and a medical clinic. This project has the potential to bring many jobs into the community. The City has engaged a consultant to thoroughly analyze the fiscal impact of this project as the property involved in this project would not generate any property t�es because the university is a non-profit organization and is exempted under California law from paying property taxes. The City is also attempting to implement a Downtown Precise Plan which is intended to serve as a"blueprint" for downtown development. It will contain explicit development guidelines that will cover all aspects of sites and building. Developers interested in undertaking projects in the downtown area will be provided with a clear understanding of the type of projects that the City and public desire. By providing such clear guidance the City hopes that this will assist investors and developers contemplating downtown projects. Relevant Financial Policies In April 1999 the City Council adopted a policy targeting general fund reserves to fall within a range from 15%to 20% of anticipated general fund revenues. When the recommended FY 2009/10 budget was presented to Council in June 2009,general fund reserves were projected to be within this range at the end of FY 2009/10. iv