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Plan and will consider initiatives that can be incorporated into the Santa Ana Opioid Settlement spending plan. Parcels Not Contributing to Tax Base. The City receives property tax, sales tax, utility user tax, business license tax, and hotel visitor tax. Each parcel contributes a mix of some of these taxes to the City’s revenue base. 1. Property Tax: Property Tax is the 1% base assessment distributed to multiple taxing entities. Direct assessments are a different animal (e.g. school bond debt). There are 2 types of parcels for this Property Tax conversation. A list of parcels that do not pay the 1% Property Tax assessment is attached to this memo. a. Exempt parcels do not pay property tax (those owned by governmental agencies, public schools, affordable housing that are JPA’s formed to take market rate housing and convert it entirely to affordable housing, etc.). If a government owns a parcel outside of their jurisdiction they will pay property tax (e.g. water district with a tank outside their jurisdiction). Exempt parcels with on-site operations will still pay utility user tax and potentially sales tax (e.g. gift shop, cafe). b. Parcels with exemptions that pay a reduced amount of property tax or no property tax depending on the approved exemption. Parcels with exemptions are those owned by churches, private schools, hospitals, affordable housing not formed as a JPA, non-profits with on-site operations. These property owners must apply annually for their exemption. Those with on-site operations will still pay utility user tax and potentially sales tax (e.g. gift shop, cafe). This category also includes Mill Act properties. 2. Sales Tax: A government-owned parcel or a business-owned parcel may generate sales tax if they have taxable sales as defined by the state. Some businesses generate sales tax, and some do not (e.g. professional services office). 3. Utility User Tax: All parcels using electricity, water, or natural gas will pay this tax. 4. Business License Tax: All business operating in the City pays this tax. 5. Hotel Visitor Tax: All hotels and motels generate this tax. Police Metropolitan Division Elimination. The Budget Office is working with PD to reallocate the Metropolitan Division Funding to other PD budget programs. This change will be reflected in the updated budget document for your June 4 Public Hearing. The Police Department is expected to provide a separate communication regarding the deployment of Police Officers previously assigned to the Division, including the Met team. Sidewalk Spending. In addition to the $1 million sidewalk repair allocation in the proposed FY24-25 budget, various CIP projects include amounts for repair of adjacent sidewalks at the same time street repairs are done. Staff estimates this additional sidewalk repair work may total $940,000. When added to the $1 million allocation, the proposed FY24-25 budget includes nearly $2 million of sidewalk repair.