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City of Santa Ana Annexation Property Transfer Taxes are also collected in the state of California whenever a property is sold, amounting to 550 per $1,000 of assessed value to be divided between the city and the county. Based on the assumption of a 5% annual property turnover rate, the City of Santa Ana can anticipate gathering approximately $1,400 from the sale of property. The amount of Property Transfer Tax actually received will depend on the sale of properties in a given year, which is subject to an upward or downward adjustment based on recorded transactions. (Table A) Sales Taxes The minimum statewide sales tax for California is 7.25%, and the City of Santa Ana General Fund receives 1 % of the purchase price for all sales in the city (the additional 0.5% rate levied for Measure M to fund transportation projects received by the City is accounted for in the revenues for the Road Fund). The Orange County Treasurer -Tax Collector estimates that there are approximately 27,750 square feet of rentable commercial space on 3 separate properties in the Study Area. Current occupants include food and beverage establishments, merchandise retail, professional offices, and other service providers. There are approximately 20 sales tax generating businesses in the Study Area. AECOM estimated total employees and sales per square foot of occupied commercial space based on regional trends and recent studies on business patterns (eMarketer 2018, Baker Tilly Restaurant Benchmarking 2017, AECOM 2018). In November of 2018, Santa Ana voters approved Measure X (City of Santa Ana Ordinance No. NS-2952) authorizing a citywide sales tax of 1.5% to be collected for 10 years beginning in the first quarter of 2019 (dropping to 1 % from 2029 to 2039). The revenue from this transactions and use tax will be fund general city services and address the City's structural deficit. The City of Santa Ana General Fund can anticipate an increase of approximately $166,000 in sales taxes from annexation of the Study Area. This estimate depends on actual sales for businesses and will change depending on the mix of future tenants and industries that occupy the retail and office space. (Table B) Other Taxes Other sources of revenue are expected to increase as the result of the annexation of the Study Area, including business permits, licenses and inspections, franchise fees, fines and forfeitures, and intergovernmental transfers. The increase to the City of Santa Ana's General Fund was estimated on a per service population basis and amounts to an approximate increase of $50,000. (Table C) Expenditures AECOM estimated the expenditures for services administered by the City of Santa Ana on a per service population basis and applied the costs of extending these services to the service population of the Study Area. Based on data from recent fiscal analyses in Southern California, percentages of the marginal cost burden for extending services to additional residents and employees were assigned by category. Again, it should be noted that actual marginal costs per service population can vary significantly by city and lower marginal costs would reduce overall service costs and reduce the estimated overall net fiscal deficit. The total estimated City cost to serve the Study Area is t $182,000 (Table D) Road Fund Revenues The federal government and the state of California impose direct and indirect taxes on the sale of gasoline and other fuels and the registration of motor vehicles with allocations dedicated to transportation purposes. A portion of these funds are redistributed to counties and cities in California, primarily through the Highway Users Tax Account (HUTA) and the Road Maintenance and Rehabilitation Account (RMRA). HUTA includes several sections (2105, 2106, 2107, 2103) with specific apportionments to diverse transportation related purposes and an apportionment to cities based on population. RMRA also allocates funds to state and regional projects with the remainder divided between the state highway account and local apportionments, 50% of which go to counties based on the number of registered vehicles and 50% of which go to cities based on population. Based on the estimated increase in population from the 75C-134 0.ECOM