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Oceanside will spend and lose $8 million over next decade. It is estimated that over the next decade, rent control will have an $8 million negative impact on the City of Oceanside. This includes an approximate $4 million in new expenditures and an estimated property tax loss of $4 million. Both of these estimates are "conservative," therefore it is likely these losses will be higher. $4 Million in new costs Based on the available data, it is estimated that the city spent over $400,000 in 2011 on rent control related activities. $170,000 as outlined in the "Rent Control "fund" and an estimated $250,000 additional management cost. Measured in 2012 dollars, the City will spend over $4 million on rent control related activities in the next Ten years. $4 million in Lost Property Taxes Property Taxes are the City's largest revenue source representing 39.9 percent of the total General Fund revenue. They are derived from a portion of the one -percent property tax collected by the County of San Diego and allocated to the various governmental entities within the county. Oceanside's General Fund receives approximately $19,64 for every $100 collected. In accordance with State law, property is assessed at actual full cash value and the maximum tax is one percent of the assessed valuation. Proposition 13, passed by California voters in 1978, specified that an assessed value may increase at the rate of the Consumer Price Index, not to exceed two percent per year based on the 1975 value, unless the property is improved or sold to establish a new market value. (Source: City of Oceanside 2012 Budget) Rent Control Depresses Property Values and Resale Values Oceanside has 17 mobile home parks, with a little over 2500 units. Because rent control depresses property and resale values, the average estimated annual TOTAL property tax paid by EACH mobile home parks is only $13,500. The City of Oceanside receives back approximately $2,646 annually from EACH park, or about $45,000 a year. An actual calculation of the reduced value resulting from rent control cannot be determined. For the purpose of this study, an increased assessed valuation of 10 x current value is used. In other words, if rent control were NOT in place this past two decades, it is assumed for this study that the existing properties would be paying 10 times their current property taxes. The increased valuation of non -rent control revenue producing properties over the last two decades in San Diego County and in Oceanside, this is considered a "conservative" estimate. Therefore, it is assumed that in the absence of rent control these past 20 years, the 17 mobile home parks 7