75C - PH MORTIMER MIXED USE - Laserfiche WebLink

Home Browse Search

Richard M. Gollis, Principal THE CONCORD GROUP June 3, 2020 Page 12 CITY EXPENDITURES RSG estimated the additional population that will move into the Project to estimate the total added expenditures to the City General Fund for servicing the new residents. Consistent with other recent analyses prepared by RSG on projects in Santa Ana, RSG assumed that each studio would house 1.25 residents, each one -bedroom unit would house 1.75 residents, each two -bedroom unit would house 3.25 residents, each three -bedroom unit would house 4 residents, and each four -bedroom unit would house 5.25. Overall, this works out to an average household size of 3.12 residents per unit, which RSG considers reasonable. RSG estimates at full occupancy the Project could hold 527 residents. Taking into account that a small percentage of the units will normally be vacant due to turnover, we estimate the fiscal impacts based on residents' time spent in the City. This is done by calculating the full-time equivalent (FTE) residents, defined as those who spend a vast majority of their daily consumption in Santa Ana. The assumption being that new residents who work out of the City, do not consume products in the City during the time they are gone. RSG gathered data from the US Census and ESRI Business Analyst Online to estimate the FTE residents of the Project. Approximately 13 percent of Santa Ana residents work within Santa Ana, which, in effect means that the City is servicing these resident -employees 100 percent of the time. Another 37 percent of Santa Ana residents work outside the city. Assuming the residents that work outside of the city are outside City limits from 9 am to 5 pm, Santa Ana is servicing these residents approximately 73 percent of the time. The city's remaining residential population (about 51 percent), is serviced by the City 100 percent of the time. Accounting for all residents and employees based on the percent of time spent in the city, the Project will generate a daily (24/7) population of 476 persons. RSG identified variable costs, as opposed to fixed costs, by department in the City of Santa Ana FY 2019-20 Adopted Budget. Variable costs are City expenditures that increase or decrease based on the resident and employee population. The City Manager and City Attorney offices, for example, are fixed costs that will not vary based on population, but the Police and Fire departments will vary based on population. With that said, RSG estimates expenditure increases of $120,441 during the first full year of operations. Over a 25-year projection period, the Project will add $2.4 million in City expenditures (net present value, discounted at 4 percent). 75C-456