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City of Santa Ana Annexation Road Fund revenues were estimated on a citywide per capita basis and then applied to the Study Area residential population. Road costs were provided by the City of Santa Ana and consist of annual non -replacement preventive maintenance for the 1.63 lane miles of roads within the Study Area. While the General Fund and Road Fund have separate funding sources, City General Funds can be flexibly allocated to address road maintenance. As a result the estimated General Fund net fiscal surplus of the existing and proposed uses within the Study Area could feasibly be allocated to cover a portion of the estimated Road Fund net fiscal deficit. Table 1.4: Estimated Study Area General Fund Net Annual Fiscal Impact from Proposed Land Uses (2018 dollars) Cost/Revenue Description Low High Estimated Total Costs to the City General Fund $91000 $9,000 Sources of Revenue Property Tax $2,000 $4,000 Property Tax In Lieu of VLF $1,000 $2,000 Property Transfer Tax $100 $100 Sales Tax (Including Measure X) $64,000 $95,000 Other Revenue $2,000 $2,000 Total Estimated Revenue from Annexation $69,000 $103,000 Estimated Net Fiscal Surplus from Annexation $60,000 $94,000 'Low and High estimates are based on comparisons of assessed property value and estimated sales per square foot for Chic- Fil-A and In-n-Out in Santa Ana and Orange County. • See Appendix Table D for General Fund cost breakdown and calculations. -See Appendix Table C for sources and calculations included in 'Other Revenue.' Source: Orange CountyTmasurer-Tax Collector, City of Santa Ana, California Department of Finance, Costar AECOM, 201R 2. Methodology General Fund Property Taxes The total assessed value of all properties in the Study Area for the 2017 tax year was approximately $26 million, including values for both land and improvements. According to California state law, 1 % of this total value will be paid in property taxes to be allocated to various government agencies, school districts, and other funds. The Master Property Tax Transfer Agreement between the City of Santa Ana and the County of Orange dictates that 24% of property tax revenue will be allocated to the City of Santa Ana's General Fund. If a new City TRA were established that had a different allocation rate, these assumptions would have to be adapted upwards or downwards depending on the new rate. Under the assumed TRA the City of Santa Ana General Fund can anticipate an increase of approximately $62,000 in property taxes as a result of the annexation of the Study Area. Since 2004, the California State Legislature has compensated cities and counties for the state-wkte reduction in Vehicle License Fees (VLF) with a like amount of property taxes, known as Property Taxes in Lieu of VLF. This allocation increases annually in proportion to the growth in both the gross assessed property valuation and the relative population in that city or county. Taking into account the estimated population growth as a result of the annexation of the Study Area, Property Taxes in Lieu of VLF are estimated to increase by approximately $30,000. 75C-133 AECOM