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REDWOOD CITY FAIR AND AFFORDABLE HOUSING ORDINANCE
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<br />Economic & Planning Systems, Inc. 48 Impact on City Finances
<br />Cost and Schedule
<br />The program’s financial obligations would vary over time as start-up costs are
<br />repaid and reserves are established. The following schedule summarizes the
<br />anticipated cost structure across different phases of implementation.
<br />During the first two years, program fees would need to support full operations
<br />while also funding reserve contributions and repaying start-up costs. In years
<br />three through five, reserve contributions would no longer be required, but
<br />interfund loan repayment would continue. After year five, once start-up costs
<br />have been fully repaid, fees would only need to cover ongoing program
<br />administration costs.
<br />Table 20. Program Cost Schedule by Year
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<br />Taken together, the cost schedule illustrates that the proposed fee levels would
<br />need to cover more than the base annual operating cost, particularly during the
<br />first five years of implementation. The first two years would be the most cost-
<br />intensive because fees would need to fund ongoing administration, interfund loan
<br />repayment, and reserve contributions at the same time. This front-loaded cost
<br />structure increases the importance of setting fees at a level sufficient to recover
<br />full program costs from the outset, especially given the proposed Ordinance’s
<br />restriction on General Fund support.
<br />Minimum Average Maximum
<br />Years 1-2
<br />Interfund loan repayment $152,589 $188,054 $234,844
<br />Reserve contribution $416,466 $634,920 $923,133
<br />Ongoing administration costs $4,997,594 $7,619,044 $11,077,596
<br />Total Cost Year 1-2 $5,566,649 $8,442,018 $12,235,572
<br />Cost Per Unit Years 1-2 $344 $522 $757
<br />Years 3-5
<br />Interfund loan repayment $152,589 $188,054 $234,844
<br />Ongoing administration costs $4,997,594 $7,619,044 $11,077,596
<br />Total Cost Year 3-5 $5,150,183 $7,807,098 $11,312,439
<br />Cost Per Unit Years 3-5 $319 $483 $700
<br />Years 6 and Beyond
<br />Ongoing administration costs $4,997,594 $7,619,044 $11,077,596
<br />Total Cost Year 6 and Beyond $4,997,594 $7,619,044 $11,077,596
<br />Cost Per Unit Years 6 and Beyond $309 $471 $685
<br />Level of Enforcement
<br />Cost
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