Finance Issues
Sales Tax, The Biggest Source of Revenue for the Proposed City, Dropped Almost 20% the Year AFTER the Numbers Were Analyzed for the Fiscal Analysis
What does this mean? Revenues for the proposed city would be at least $2 million lower EVERY YEAR
The fiscal analysis for the proposed city is built on a series of faulty assumptions, but the biggest may be the assumption regarding sales tax revenue, which is supposed to provide one-third of the city’s funding. The fiscal analysis was based on County sales tax revenue for the year ending June 30, 2009. But the very next year, fiscal year 2009/10, sales tax PLUMMETED.
Instead of sales tax revenue being 1% higher than 08/09, it will be as much as 20% LOWER by Year 1 of the fiscal model. That’s a gap of at least $2 million. And that gap doesn’t go away. Every single year of the model will be off by that much. This isn’t a guess about what will happen in the future. This is a fact about what has already happened before the proposed city has its first day of operation.
See the Sacramento County Adopted Budget Overview as of 9.21.10.
Property Tax Incomes Plumments While Foreclosures and Short Sales Remain High. No Telling When Property Tax Revenue Will Return To 08/09 Levels.
Vehcile License Fee (VLF) Shortfall.
Vehicle License Fee income represents the third largest source of revenue for the proposed city (see fiscal analysis below). During the first full year of operation, the proposed city is counting on receiving $6.9 million from the state.
But they will never see that amount of money and from what we have learned though LAFCO, the analyst did not review the critical funding issues surrounding the severe lack of VLF distributions to the cities.
The State Controller sent these two spreadsheets showing the amount of VLF money recieved by each of the cities? Click 2008/2009 or 2009/2010 to view the data.
Comprehensive Fiscal Analysis and Environmental Impact Report
We take great issue with the Fiscal Analysis as the numbers do not reflect what has and is occuring in the economy today. Cities and counties that depend on resources from a number of sources including the State of California, Vehicle License Fees (VLF), local sales tax revenue, transient tax, new business growth and other unreliable income.
With the Stae of California $40 billion dollars in the hole, state employee furloghs on the rise,VLF fund distribution to cities reduced to barely anything, small businesses barely making it or going out of business which all means severely reduced sales tax revenue.
Final Comprehensive Fiscal Analysis
They make the numbers look so rosy, but the truth is that the economy does not support the numbers presented in the fiscal analysis
Final Environmental Impact Report
