Cathedral City City Council
April 10, 2024

CITY COUNCIL
AGENDA

Study Session
Wednesday, April 10, 2024
3:00 PM

City Council Chambers
68-700 Avenida Lalo Guerrero
Cathedral City, CA 92234

MAYOR
Mark Carnevale

CITY COUNCIL MEMBERS

Mayor Pro Tem
Nancy Ross

Councilmember
Raymond Gregory

Councilmember
Ernesto Gutierrez

Councilmember
Rita Lamb
• CALL TO ORDER
• ROLL CALL
• AGENDA FINALIZATION
At this time the City Council may announce any items being pulled from the agenda or continued to another date.

1. PUBLIC COMMENT
This is the opportunity for members of the public to comment on any items not appearing on the regular agenda. Because of restrictions contained in California Law, the City Council may not discuss or act on any item not on the agenda but may briefly respond to statements made or ask a question for clarification. The Mayor may also request a brief response from staff to questions raised during public comment or may request a matter be agendized for a future meeting. Public Comment will be limited to three (3) minutes.

2. STUDY SESSION
Normally no action is taken on Study Session items, however, the City Council reserves the right to give specific policy direction and take specific action as Cathedral City P a g e 2
necessary. Presentation will be limited to 10 minutes unless other provisions are made in advance.

A. Visit Greater Palm Springs Update on 2024 Goals and Objectives and Introduction of Proposed Revised Joint Powers Authority Agreement Recommendation: This item is for information and discussion only, no formal action will be taken.

B. Sphere of Influence Fiscal Impact Analysis
Recommendation: Review and discuss reports and findings and provide direction to staff.

ADJOURN

NOTES TO THE PUBLIC:

The City of Cathedral City complies with the Americans with Disabilities Act of 1990. If you require special assistance to participate in this meeting, please call the City Clerk’s Office at (760) 770-0322 at least 48 hours prior to the meeting.

If you desire to address the City Council during the meeting, please complete a Request to Speak Form available at the entrance and present it to the City Clerk. Speakers will be called upon at the appropriate time.

Any documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection in the City Clerk’s office at City Hall located at 68 -700 Avenida Lalo Guerrero during normal business hours. In addition, such documents will be posted on the City’s website at www.cathedralcity.gov.

Cathedral City Page 1 of 1 Printed on 4/9/2024

Staff Report

City Council

Item No. 2.A

Meeting Date: April 10, 2024
From: Tracey Hermosillo, City Clerk
Title: Visit Greater Palm Springs Update on 2024 Goals and Objectives and Introduction of Proposed Revised Joint Powers Authority Agreement

City Council

RECOMMENDATION:

This item is for information and discussion only, no formal action will be taken.

BACKGROUND:

Visit Greater Palm Springs is the official tourism marketing agency for the Coachella Valley.  Funded in May 1989 by a Joint Powers Authority comprising the cities of Palm Springs, Desert Hot Springs, Cathedral City, Rancho Mirage, Palm Desert, Indian Wells, La Quinta and Indio, Visit Greater Palm Springs was created as a public -private partnership to help grow the region’s tourism economy.

DISCUSSION:

Scott White, President & CEO, along with his team from Visit Greater Palm Springs will provide an update on their goals and objectives for 2024 as well as introduce their proposed revised Joint Powers Authority (JPA) agreement.  The approval of the amended and reinstated JPA Agreement will be on the April 10, 2024, Regular City Council Agenda for consideration.

FISCAL IMPACT:

There is no fiscal impact with this item.

FIVE-YEAR STRATEGIC PLAN:

There is no fiscal impact with this item.

2.A
Packet Pg. 3

Cathedral City Page 1 of 5 Printed on 4/9/2024

Staff Report

City Council

Item No. 2.B

Meeting Date: April 10, 2024
From: Andrew Firestine, Development Services Director
Title: Sphere of Influence Fiscal Impact Analysis

RECOMMENDATION:

Review and discuss reports and findings and provide direction to staff.

BACKGROUND:

At a goal setting strategy session held in January 2022, the City Council directed staff to update the fiscal impact analysis (FIA) for the City’s sphere of influence (SOI) . Last updated in 2018, the FIA provided the fiscal effect of a potential annexation of the City’s SOI at four stages: immediately upon annexation (Phase 1); at the time 10 percent of the currently vacant land is developed (Phase 2); at the time 50 percent of the currently vacant land has been developed (Phase 3); and at buildout (Phase 4). It also described how the demand for local services will be met when the annexed area is developed.

The analysis examined anticipated annual costs needed to serve the future annexation area at the four phases of development and projected annual revenues together with one-time revenue sources and significant one -time costs associated with public safety facilities and roadway improvements to bring currently substandard streets to City standards.

A review of the 2018 fiscal analysis was discussed with the City Council in a study session on August 24, 2022. After discussion, Council provided direction to develop a scope of work for a new fiscal analysis with specific direction to include an analysis of current and proposed development in the eastern end of the SOI and an analysis of options for the provision of public safety services in the sphere considering both direct provision of services by the City and the use of contract services.

A proposed scope of work was presented to the City Council in a study session on October 26, 2022. After discussion, the City Council directed staff to move forward with a request for proposal (RFP) process as recommended by staff. The RFP was released on December 23, 2022 and the City received two responses. The City Council approved a contract with Terra Nova Planning & Research on March 8, 2023.

DISCUSSION:

Terra Nova Planning & Research has produced a constraints and opportunities report

2.B
Packet Pg. 4

Cathedral City Page 2 of 5 Printed on 4/9/2024
and an updated FIA, substantially updating the 2018 analysis, accounting for changes in conditions and assumptions from the prior study and developing two annexation scenarios for the analysis while using the same general framework as the prior study.

Both the constraints and opportunities report, and the FIA are attached to this report. A thorough presentation is planned for the April 10, 2024 City Council study session.

Some of the key assumptions and findings from each of the studies are noted below.

Constraints and Opportunities Report

• The City’s SOI is composed of approximately 7,905.2+/- acres of land • For the purposes of the study, the SOI was divided into two areas, Area A and Area B
o Area A includes the portion of the SOI west of Cook Street, encompassing all of the Thousand Palms community.
o Area B contains those areas east of Cook Street, including the NorthStar Specific Plan area.
• Approximately 5,834.9+/- acres of the SOI are undeveloped and vacant, of which 5,586.7+/- acres are in Area A and 248.3+/- acres are in Area B. • The estimated population of the SOI is currently 7,967; the buildout population is estimated at 59,420 with 18,642 new residential dwelling units anticipated at buildout.
• The constraints and opportunities report evaluated the City’s existing and future services for multiple service areas.
• To serve the SOI at full buildout while meeting response time goals and providing an equivalent level of service, the Cathedral City Police Department would require an additional 20 police officers, 1 commander, 4 sergeants, 2 detectives, 4 dispatchers, 2 community service officers, 2 records specialists and 1 evidence technician.
• The report evaluate d both the provision of fire protection services through a contract with CalFire and as an expansion of current staffing. o Based on the per capita rate paid by other cities in the Coachella Valley for contracted fire protection, a contract with CalFire would cost the City approximately $15,715,827 per year at buildout.
o If the City were to provide fire protection to the Sphere area via the Cathedral City Fire Department, then it is assumed that the existing Riverside County Fire Station (Station No.35) would be acquired upon incorporation at a cost of approximately $9,544,870 and the cost of equipping the station is estimated at $1,969,489 for a total one -time expenditure of $11,514,359.
o Upon annexation and as an expansion of current staffing, the City would require an additional 9 full-time firefighters immediately upon incorporation in order to staff Station No. 35, resulting in $2,690,240 in annual personnel costs and estimates for annual recurring operations and maintenance costs are around $500,000.
o At buildout, the City will expend a total of $ 19,478,020 in annual recurring personnel and operations/maintenance costs and would like ly need to construct a second fire station to serve the SOI.
• Currently, there are approximately 63 miles of roads in the SOI, 16 miles of which are unpaved and would require expenditures of up to $30,722,651; the City

2.B
Packet Pg. 5

Cathedral City Page 3 of 5 Printed on 4/9/2024
would also be responsible for maintaining and upgrading 47 miles of paved roads which are substandard at an additional cost of $22,615,704 . Immediately upon annexation, the City would incur annual expenditures of $608,121 for existing street maintenance and an estimated annual cost of $4,535,480 at buildout.

Fiscal Impact Analysis

• The FIA include d analysis at four stages : immediately upon annexation (Phase 1); at the time 10 percent of the currently vacant land is developed (Phase 2); at the time 50 percent of the currently vacant land has been developed (Phase 3); and at buildout (Phase 4).
• The FIA is based on land use assumptions consistent with City land use designations and zoning districts and, the land uses proposed within the NorthStar Specific Plan.
• The FIA assume d buildout at a percentage of the allowed density / intensity to project the potential new residential and commercial development. o For areas outside the NorthStar Specific Plan:
▪ 75 percent of maximum density for residential zoning districts ▪ A range between 7.4 and 33 percent lot coverage for commercial zoning districts
▪ 34 percent lot coverage for industrial zoning districts ▪ Mixed use will develop 60 percent residential, 40 percent commercial and at 75 percent of the maximum density for residential and 22 percent lot coverage for commercial. o NorthStar Specific Plan
▪ 100 percent of residential density
▪ Full building coverage for commercial land
▪ 28.5 percent building coverage for light industrial
▪ Mixed use will develop at 100 percent of density and lot coverage. • The NorthStar Specific Plan comprises most of Area B of the SOI; the 2021 amended Specific Plan was used for the FIA.
• Proposed amendments to the NorthStar Specific Plan were not accounted for in the FIA, although they are acknowledged in the report, including their potential impact on revenues in the FIA.
• The FIA projected revenues from property tax, in -lieu motor vehicle tax, property transfer tax, sales tax, cannabis tax, transient occupancy tax, Highway User Gas Tax (HUTF), Utility Users Tax (UUT), franchise fees, ambulance service reimbursement, Development Impact Fees (DIF), Art in Public Places fees. • The FIA analyzed potential costs, including both one-time and annual costs:
o One-time
▪ Public works – road construction and improvements
▪ Police protection – patrol cars and equipment
▪ Fire protection – acquisition of fire station, fire engine, equipment, and apparatus.
o Annual
▪ Costs of general government – public and community services (code compliance and animal control) and municipal and support services
▪ Public works – street maintenance

2.B
Packet Pg. 6

Cathedral City Page 4 of 5 Printed on 4/9/2024
▪ Police protection
• The FIA analyze d revenues and costs for Area A, Area B, and a combination of Areas A and B and produces scenarios for fire protection as both a contracted service through CalFire and as an expansion of City staff and with and without cannabis tax revenues.
• In all scenarios, Area A has a negative fiscal impact for all buildout phases, not accounting for one-time revenues and costs.
o Area A is projected to generate $315,903,462 in DIFs and Art in Public Places Fees over the course of development of Area A.
o One-time costs range between $2,204,627 and $13,718,986 • At the time of annexation and at 50 and 100 percent buildout, Area B has a positive fiscal impact, not accounting for one-time revenues and costs. o Area B is projected to generate $643,849,337 in DIFs and Art in Public Places Fees over the course of development of Area B.
o One-time costs are estimated at $111,068
o Annual costs are based on population; as there is no existing population in Area B, no costs were assigned for police and fire protection, public works, or general government at the time of annexation, the actual costs at the time of annexation will likely exceed what is projected. o As with the annual costs, one-time costs are based on population and may be understated at the time of annexation.
• In all scenarios except buildout, an annexation of the full SOI, Areas A and B combined, has a negative fiscal impact.

Next Steps
No outreach has been conducted with the community of Thousand Palms as part of the current analysis, although it is contemplated in the scope of work with Terra Nova Planning & Research. Any future actions in the SOI should consider community engagement with the community of Thousand Palms.

Annexation of all or a part of the SOI will require an application to the Riverside Local Agency Formation Commission (LAFCO) and will be subject to the Riverside LAFCO Policies and Procedures, including those on Disadvantaged Unincorporated Communities (DUCs). The Riverside LAFCO Policies and Procedures support boundaries that maintain existing, identifiable communities . Additionally, the SOI includes several DUCs. The Riverside LAFCO policy on DUCs references California Government Code §56375(a)(8), which reads:

(8) (A) Except for those changes of organization or reorganization authorized under Section 56375.3, and except as provided by subparagraph (B), a commission shall not approve an annexation to a city of any territory greater than 10 acres, or smaller as determined by commission policy, where there exists a disadvantaged unincorporated community that is contiguous to the area of proposed annexation, unless an application to annex the disadvantaged unincorporated community to the subject city has been filed with the executive officer. (B) An application to annex a contiguous disadvantaged unincorporated community shall not be required if either of the following apply:

2.B
Packet Pg. 7

Cathedral City Page 5 of 5 Printed on 4/9/2024
(i) A prior application for annexation of the same disadvantaged unincorporated community has been made in the preceding five years.
(ii) The commission finds, based upon written evidence, that a majority of the registered voters within the affected territory are opposed to annexation.

While no formal discussions have occurred with the Riverside LAFCO, it is unlikely the Riverside LAFCO would consider an annexation of the SOI without including the DUCs unless there was evidence made part of the application that a majority of voters in the DUCs were opposed to the annexation.

FISCAL IMPACT:

The contract with Terra Nova Planning & Research is budgeted at a cost of $63,700.

FIVE-YEAR STRATEGIC PLAN:

Goal C: Fiscal Stability and Sustainability

Action C-10: Update the Thousand Palms Fiscal Analysis

Attachments:

Cathedral City Sphere of Influence Constraints and Opportunities Report, March 2024 Fiscal Impact Analysis of the Cathedral City Sphere of Influence Under Post -Annexation Conditions, January 2024

ATTACHMENTS:

CC Annex - Fiscal Impact Analysis 04.24
CC Annex - Constraints and Opportunities 03.24

2.B
Packet Pg. 8
FISCAL IMPACT ANALYSIS OF THE CATHEDRAL CITY SPHERE OF INFLUENCE UNDER POST-ANNEXATION CONDITIONS Prepared for City of Cathedral City 68-700 Avenida Lalo Guerrero Cathedral City, CA 92234 Prepared by Terra Nova Planning & Research, Inc.® 42635 Melanie Place, Suite #101 Palm Desert, California 92211 April 2024

2.B.a
Packet Pg. 9
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 1 FISCAL IMPACT ANALYSIS for the CITY OF CATHEDRAL CITY SPHERE OF INFLUENCE Table of Contents I. INTRODUCTION, PROJECT DESCRIPTION AND DEMOGRAPHICS ...................... 4 II. BUILDOUT ASSUMPTIONS ........................................................................................... 9 A. Buildout Assumptions ................................................................................................. 10 1. Residential ........................................................................................................ 10 2. Commercial ...................................................................................................... 11 3. Industrial ........................................................................................................... 12 III. Potential Revenues ............................................................................................................ 14 A. Potential Revenue Sources to the City of Cathedral City ........................................... 14 1. Annual Revenues .............................................................................................. 14 2. One-Time Revenues ......................................................................................... 35 IV. Potential Costs .................................................................................................................. 38 A. Potential Costs to the City of Cathedral City .............................................................. 38 1. Annual Costs .................................................................................................... 38 2. One-Time Costs ................................................................................................ 49 A. Area A Cost/Revenue Summaries .............................................................................. 54 B. Area B Cost/Revenue Summaries ............................................................................... 60 C. Area A and Area B Combined: Cost/Revenue Summaries ........................................ 68 D. Cost/Revenue Analysis – Conclusion ......................................................................... 73 E. NorthStar Specific Plan Amendment No. 3 ................................................................ 75 LIST OF TABLES Table 1 Cathedral City SOI Land Use and Build Out Projections ................................................. 7 Table 2 Area A: Property Tax Revenue Summary Table ............................................................. 15 Table 3 Area B: Property Tax Revenue Summary Table ............................................................. 16 Table 4 Area A and Area B: Total Property Tax Revenue Summary Table ................................ 17 Table 5 Area A: In-Lieu Motor Vehicle Tax Summary Table ..................................................... 18 Table 6 Area B: In-Lieu Motor Vehicle Tax Summary Table ...................................................... 19 Table 7 Area A and Area B: Total In-Lieu Motor Vehicle Tax Summary Table ......................... 20 Table 8 Area A: Property Transfer Tax Revenue Summary Table .............................................. 21 Table 9 Area B: Property Transfer Tax Revenue Summary Table ............................................... 21 Table 10 Area A and Area B: Total Property Transfer Tax Revenue Summary Table ................ 22 Table 11 Components of the 8.75% Sales Tax ............................................................................. 22 Table 12 Area A: Sales Tax Revenue Summary Table ................................................................ 23

2.B.a
Packet Pg. 10
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 2 Table 13 Area B: Sales Tax Revenue Summary Table ................................................................. 24 Table 14 Area A and Area B: Total Sales Tax Revenue Summary Table .................................... 24 Table 15 Area A: Measure A Revenue Summary Table .............................................................. 25 Table 16 Area B: Measure A Revenue Summary Table ............................................................... 25 Table 17 Area A and Area B: Total Measure A Revenue Summary Table .................................. 25 Table 18 Area A: Cannabis Tax Revenue Summary Table .......................................................... 26 Table 19 Area B: Cannabis Tax Revenue Summary Table .......................................................... 26 Table 20 Area A and Area B: Total Cannabis Tax Revenue Summary Table ............................. 27 Table 21 Area A: Transient Occupancy Tax Revenue Summary Table ....................................... 27 Table 22 Area B: Transient Occupancy Tax Revenue Summary Table ....................................... 28 Table 23 Area A and Area B: Total Transient Occupancy Tax Revenue Summary Table .......... 28 Table 24 Area A: Highway User Gas Tax Revenue Summary Table .......................................... 29 Table 25 Area B: Highway User Gas Tax Revenue Summary Table ........................................... 29 Table 26 Area A and Area B: Total Highway User Gas Tax Revenue Summary Table .............. 30 Table 27 Area A: Utility Users Tax Revenue Summary Table .................................................... 30 Table 28 Area B: Utility Users Tax Revenue Summary Table .................................................... 31 Table 29 Area A and Area B: Utility Users Tax Revenue Summary Table ................................. 31 Table 30 Area A: Franchise Fees Revenue Summary Table ........................................................ 32 Table 31 Area B: Franchise Fees Revenue Summary Table ........................................................ 32 Table 32 Area A and Area B: Total Franchise Fees Revenue Summary Table ........................... 33 Table 33 Area A: Ambulance Service Reimbursement Revenue Summary Table ...................... 34 Table 34 Area B: Ambulance Service Reimbursement Revenue Summary Table ...................... 34 Table 35 Area A and B: Total Ambulance Service Reimbursement Revenue Summary Table .. 34 Table 36 Area A: Development Fees Revenue Summary Table .................................................. 35 Table 37 Area B: Development Fees Revenue Summary Table .................................................. 35 Table 38 Area A and Area B: Total Development Fees Revenue Summary Table ..................... 36 Table 39 Area A: Art in Public Places Fees Revenue Summary Table ........................................ 36 Table 40 Area B: Art in Public Places Fees Revenue Summary Table ........................................ 37 Table 41 Area A and Area B: Art in Public Places Fees Revenue Summary Table ..................... 37 Table 42 Area A: Costs of General Government Summary Table ............................................... 39 Table 43 Area B: Costs of General Government Summary Table ............................................... 39 Table 44 Area A and Area B: Costs of General Government Summary Table ............................ 40 Table 45 Area A: Public Works Costs .......................................................................................... 40 Table 46 Area B: Public Works Costs .......................................................................................... 41 Table 47 Area A and Area B: Total Public Works Costs ............................................................. 41 Table 48 Area A: Police Protection Costs – Annual ..................................................................... 42 Table 49 Area B: Police Protection Costs – Annual ..................................................................... 42 Table 50 Area A and Area B: Total Police Protection Costs – Annual ........................................ 43 Table 51 Area A: Costs of Fire Protection – Annual .................................................................... 44 Table 52 Area B: Costs of Fire Protection – Annual .................................................................... 44 Table 53 Area A and Area B: Total Costs of Fire Protection – Annual ....................................... 44 Table 54 CalFire Contract: Average Per Capita Expense ............................................................. 45 Table 55 Area A: Costs of Fire Protection – Annual .................................................................... 45 Table 56 Area B: Costs of Fire Protection – Annual .................................................................... 46 Table 57 Area A and Area B: Total Costs of Fire Protection – Annual ....................................... 46

2.B.a
Packet Pg. 11
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 3 Table 58 Area A - Costs of Roadway Maintenance ..................................................................... 47 Table 59 Area B - Costs of Roadway Maintenance ...................................................................... 48 Table 60 Area A and Area B: Costs of Roadway Maintenance ................................................... 48 Table 61 Police Equipment Costs ................................................................................................. 49 Table 62 Area A: Police Equipment Costs ................................................................................... 49 Table 63 Area B: Police Equipment Costs ................................................................................... 50 Table 64 Area A and Area B: Total Police Equipment Costs (One-Time) .................................. 50 Table 65 Fire Department Equipment Costs ................................................................................. 51 Table 66 Area A and Area B: Total Fire Equipment Costs .......................................................... 52 Table 67 Roadway Improvement Costs ........................................................................................ 52 Table 68 Area A Cost and Revenue Summary Table ................................................................... 54 Table 69 Area A One-Time Revenues and Costs ......................................................................... 55 Table 70 Cost and Revenue Summary Table ................................................................................ 56 Table 71 Area A One-Time Revenues and Costs ......................................................................... 57 Table 72 Cost and Revenue Summary Table ................................................................................ 57 Table 73 Area A One-Time Revenues and Costs ......................................................................... 58 Table 74 Cost and Revenue Summary Table ................................................................................ 59 Table 75 Area A One-Time Revenues and Costs ......................................................................... 60 Table 76 Area B – Cost and Revenue Summary Table ................................................................ 60 Table 77 Area B – One-Time Revenues and Costs ...................................................................... 61 Table 78 Area B – Cost and Revenue Summary Table ................................................................ 63 Table 79 Area B – One-Time Revenues and Costs ...................................................................... 64 Table 80 Area B – Cost and Revenue Summary Table ................................................................ 65 Table 81 Area B – One-Time Revenues and Costs ...................................................................... 66 Table 82 Area B – Cost and Revenue Summary Table ................................................................ 66 Table 83 Area B – One-Time Revenues and Costs ...................................................................... 67 Table 84 Area A and B: Cost and Revenue Summary Table ....................................................... 68 Table 85 Area A and B: One-Time Revenues and Costs .............................................................. 69 Table 86 Cost and Revenue Summary Table ................................................................................ 69 Table 87 Area A and B: One-Time Revenues and Costs .............................................................. 70 Table 88 Area A and B: Cost and Revenue Summary Table ....................................................... 71 Table 89 Area A and B: One-Time Revenues and Costs .............................................................. 71 Table 90 Area A and B: Cost and Revenue Summary Table ....................................................... 72 Table 91 Area A and B: One-Time Revenues and Costs .............................................................. 73 Table 92 Costs and Revenues ....................................................................................................... 74 Table 93 NorthStar Specific Plan Amendments – Land Use Summaries ..................................... 75 Table 94 NorthStar Specific Plan Amendments – Land Use Comparison ................................... 75 Table 95 NorthStar Specific Plan Amendments – Tax Revenue Comparison ............................. 76 APPENDICES Appendix A.1 Area A Detailed Cost and Revenue Tables ......................................................... A.1 Appendix A.2 Area B Detailed Cost and Revenue Tables ......................................................... A.2 Appendix A.3 Area A + B Detailed Cost and Revenue Tables .................................................. A.3 Appendix B Police Department Personnel and Equipment Costs .................................................. B

2.B.a
Packet Pg. 12
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 4 I. INTRODUCTION, PROJECT DESCRIPTION AND DEMOGRAPHICS Background The City of Cathedral City Sphere of Influence north of the I-10 freeway was expanded through two separate approvals by the Riverside County Local Agency Formation Commission (LAFCO). The first occurred in January of 2011, and the second in September of that year. In addition, the most recent annexations occurred in the City’s North City area in December 2007, and in January 2015, when approximately 680 acres between Da Vall and Rio del Sol, immediately north of the City limits were annexed (the Messenger Annexation). In 2018, a Constraints and Opportunities Report (COR) and Fiscal Impact Analysis were prepared for the City to similarly consider the current and future conditions associated with incorporation of the Sphere. This COR and Fiscal Impact Analysis, completed in 2023, provide an update to the previous studies. The boundaries of the Sphere have remained the same, but the updated study considers the SOI in two areas (Area A and Area B), and bases the analysis on conditions in 2023. The City’s current Sphere encompasses 7,905± acres, generally located within the Thousand Palms community of interest. The purpose of this analysis is to consider the potential revenues and costs associated with future annexation of the Sphere into the City of Cathedral City. For purposes of this analysis, the entire 7,905± acres of the Sphere area have been considered. For the purpose of analysis, the Sphere will be analyzed as two separate areas (Exhibit 4). Area A makes up the majority of the SOI, comprising the portion of the sphere that is west of Cook Street. Area B is a significantly smaller area comprised of lands within the Sphere that are east of Cook Street. Most of these lands are within the NorthStar Specific Plan. This document evaluates the potential fiscal impacts associated with initial annexation and eventual buildout of the Sphere. The analysis includes both annual costs and revenues at four time periods, based on the level of development occurring at that time, and one-time costs and revenues. Methodologies and assumptions are discussed below, using the most recently available fiscal and demographic data, tax rates, city fees, and other information to reflect current conditions in the Sphere.

2.B.a
Packet Pg. 13
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 5 Introduction The County of Riverside Local Agency Formation Commission (LAFCO) is responsible for approving annexations proposed by cities in Riverside County. This fiscal impact analysis has been updated based on current factors for a variety of revenue and cost categories, State and County distributions, recently completed analysis for other jurisdictions, and City-specific costs and revenues. It addresses the costs and revenues which are projected to be generated through build out of the annexation area. For purposes of this analysis, build out is presumed to occur in four phases, none of which are tied to a time period: Phase 1 The first phase analyzes conditions immediate upon annexation with no additional development. This condition presents costs and revenues as they would be immediately upon city annexation. Phase 2 The second phase analyzes conditions at ten percent (10%) build out. Development projections were calculated utilizing assumptions that are further explained in the Build Out Assumptions methodology section. Phase 3 The third phase analyzes conditions at fifty percent (50%) build out. The projections were obtained utilizing assumptions that are further explained in the Build Out Assumptions methodology section. Phase 4 The final phase analyzes conditions at one hundred percent (100%) buildout. The projections were obtained utilizing assumptions that are further explained in the Build Out Assumptions methodology section. The analysis applies the appropriate revenue and cost factors to the proposed zoning designations assigned on the Cathedral City Zoning Map to the Sphere area. These designations were applied to the Sphere at the time it was designated by LAFCO, and are expected to be the designations the City would apply to Sphere lands, should annexation proceed. The revenue and cost categories used to develop this fiscal analysis are described in Sections III and IV of this document, respectively, and include both annual and one-time revenues and costs. Assumptions associated with each land use category are described in Section II. The cost/revenue analysis is shown in Section V. Both costs and revenues throughout this analysis are calculated in current dollars. It is important to note that no inflation adjustment has been made. Although costs and revenues will rise over the build out period after annexation, the ratio of costs to revenues is not expected to significantly change. As a result, the analysis in constant dollars is representative of the framework of costs and revenues likely to be experienced by the city throughout the time period analyzed.

2.B.a
Packet Pg. 14
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 6 Project Description The purpose of this fiscal analysis is to consider the potential financial impacts to the City of Cathedral City associated with annexation of its Sphere, an area that is currently under the jurisdiction of Riverside County. The Sphere is located immediately east and north of the Interstate 10 (I-10) transportation corridor in areas where urban development is expected to occur and intensify in the future. The Sphere area is bounded by the city’s corporate limits on the west and south. The unincorporated area in which the Sphere occurs is known as the community of Thousand Palms. The 7,905.2± acres of land considered in this analysis are a majority of the 9,700 acres total acres that are within the Thousand Palms community of interest boundary. The area of Thousand Palms not within the Sphere is primarily land within the Coachella Valley Multiple Species Habitat Conservation Plan (CVMSHCP). Table 1 shows the proposed zoning designations in the Sphere area, which include lands designated for residential, commercial, mixed use, industrial, and open space uses. Population Estimates The 2020 Census reported a population of 7,967 in Thousand Palms. It is estimated that at build out the estimated population will be 59,420. This estimated build out population is based on the current population plus an additional 51,452 new residents occupying the additional 18,642 new residential dwelling units anticipated at build out. Consistent with the City’s current average household size, it is assumed that future housing units would have a household size of 2.76 persons.

2.B.a
Packet Pg. 15
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 7 Table 1 Cathedral City SOI Land Use and Build Out Projections Land Use Category1 ROW Acres Developable Acres Total Acres Vacant Developed Total Acres Existing SF/Units Potential SF/Units Build out SF/Units Build out Population2 Residential Residential Estate (RE)(1 du/ac) 5.3 1,420.7 1,426.0 1,071.0 349.7 1,420.7 215 803 1,018 Resort Residential (RR)(7.4 du/ac in SP) 1.0 6.3 7.3 6.3 - 6.3 - 46 46 Single-Family Residential (R1)(6 du/ac) 12.8 1,020.7 1,033.5 481.5 539.1 1,020.7 3,230 2,167 5,397 Multiple-Family Residential (R2)(12 du/ac) - 198.2 198.2 121.4 76.8 198.2 85 1,093 1,178 Multiple-Family Residential (R3)(24 du/ac, 16.6 du/ac in SP) 3.7 191.3 195.0 173.4 17.9 191.3 81 3,080 3,161 Total Residential Acreage 22.9 2,837.1 2,860.0 1,853.6 983.5 2,837.1 3,611 7,189 10,800 27,809 Commercial Planned Professional Office (PPO) 1.0 11.5 12.6 11.5 - 11.5 - 165,741.4 165,741.4 Planned Community Commercial (PCC) - 16.7 16.7 16.7 - 16.7 - 83,456.6 83,456.6 Commercial Tourist & Recreation (CTR) 1.1 22.4 23.5 16.9 5.5 22.4 75,127.5 54,560.5 129,688.0 Total Commercial Acreage 2.1 50.6 52.7 45.1 5.5 50.6 75,127.5 303,759 378,886 Mixed Use Mixed Use - Commercial (MX-C) - 40.5 40.5 - 40.5 40.5 289,338.5 - 289,338.5 Mixed Use - Urban (MU-U Residential Component) 5.1 726.8 731.9 528.0 198.8 726.8 597.0 11,453 12,050 31,610 Mixed Use - Urban ( MU-U Commercial Component) 5.1 726.8 731.9 528.0 198.8 726.8 762,044.5 2,043,112.0 2,805,156.5 Total Mixed Use Acreage 5.1 767.3 772.4 528.0 239.3 767.3 n/a n/a n/a

2.B.a
Packet Pg. 16
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 8 Table 1 Cathedral City SOI Land Use and Build Out Projections Land Use Category1 ROW Acres Developable Acres Total Acres Vacant Developed Total Acres Existing SF/Units Potential SF/Units Build out SF/Units Build out Population2 Industrial Light Industrial (I-1) 11.2 1,766.0 1,777.3 1,396.8 369.2 1766.0 5,468,693.0 20,611,341.6 26,080,035 Business Park (BP) - 5.7 5.7 5.3 0.4 5.7 5,973.6 78,791.3 84,765 Total Industrial Acreage 11.2 1,771.7 1,783.0 1,402.1 369.7 1,771.7 5,747,666.6 20,690,133 26,162,800 Open Space Open Space – Residential (OS-R) - 2,404.2 2,404.2 2,006.1 398.1 2,404.2 n/a n/a n/a Total Open Space Acreage - 2,404.2 2,404.2 2,006.1 398.1 2,404.2 n/a n/a n/a ROW Total ROW Acreage 32.9 - 32.9 n/a n/a n/a n/a n/a n/a Totals 74.3 7,830.9 7,905.2 5,834.9 1,995.9 7,830.9 n/a n/a n/a 59,419 1 Existing residential units based on Riverside County Assessor's data or NorthStar Specific Plan (SP) where applicable. For areas outside of the NorthStar SP, existing and potential square footage of mixed use, commercial, and industrial land uses are calculated using the following assumptions: mixed use residential development is assumed to occur at 75% of the maximum density permitted and mixed use commercial development at 22% lot coverage; 22% lot coverage for commercial zones, and 34% lot coverage for industrial zones. For areas inside the NorthStar SP, existing and potential units and coverage are assumed to occur at the density/intensity proposed on the SP. Mixed Use - Urban development is assumed to be 60% residential and 40% commercial uses. 2 Future population calculated based on average City household size of 2.76 persons (Department of Finance, Table E-5, 2023).

2.B.a
Packet Pg. 17
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 9 II. BUILDOUT ASSUMPTIONS Introduction The buildout assumptions used to calculate the costs and revenues associated with the Sphere area are presented in this section, as are the alternatives analyzed. Build out assumptions are based on existing City land use designations and zoning districts. The eastern portion of the Sphere, referred to as Area B for the purpose of this analysis, is located within the NorthStar Specific Plan area. The NorthStar Specific Plan (SP) area includes approximately 456 acres north of I-10 and Varner Road, and east of the Cook Street interchange. The NorthStar SP was approved by Riverside County in 2006, and amended in 2021. The SP proposes a mix of commercial, light industrial, residential, and recreational land uses, including the Classic Club Golf Course and Acrisure Arena. This Fiscal Impact Analysis is based on land use assumptions consistent with the Cathedral City development code, and, for lands within the Specific Plan area, with the land uses proposed in the NorthStar SP. The City Council requested that several alternatives be considered in this analysis, which are described separately here, and throughout this document: • Area A, consisting of all lands within the Sphere and west of Cook Street, is analyzed separately, on the basis that this area encompasses the entirety of the community of Thousand Palms within the Sphere, which the City committed to annexing as a unit when the Sphere was created, and ends at the centerline of a street, Cook Street, a traditional edge used by LAFCo in establishing boundaries. • Area B, consisting of lands east of Cook Street, is analyzed separately, as its character of land uses are distinct from the balance of the Sphere, because of the NorthStar Specific Plan. • Combined Analysis is provided of Area A and B together, should the City opt to annex its entire Sphere. • Fire Costs are calculated as both an extension of City services, and as a contract with the County after annexation for Areas A and B. • Revenues are calculated with and without cannabis tax, because of the uncertainty associated with the expansion of this industry, and the large amount of land in Area A designated to allow cannabis cultivation and manufacturing.

2.B.a
Packet Pg. 18
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 10 A. Buildout Assumptions NorthStar Specific Plan The NorthStar Specific Plan (SP) was first approved by Riverside County in 2006, and amended in 2021. The SP area includes approximately 455.75 acres of land, located entirely within the Cathedral City SOI. Buildout of the SP area according to the amended NorthStar land use plan is projected to result in 970 dwelling units, 1,544,035 square feet of commercial and light industrial development, and 350 hotel rooms. The NorthStar SP comprises most of Area B of the City’s Sphere. For the purpose of this fiscal impact analysis, lands within the Specific Plan are assumed to build out in accordance with the land uses proposed in the 2021 amended plan. A new amendment to the NorthStar Specific Plan (SP 343 Amendment No. 3) has been proposed. Given that this amendment has not yet been adopted, the analysis in this document uses the land uses proposed in the adopted 2021 amended SP. However, Section IV. E. of this document provides a summary of the potential impacts of the proposed Amendment 3 on the revenues projected for Area B. Lands Outside the Specific Plan Lands in the Sphere but outside the NorthStar SP have been assumed to develop at the densities allowed in the City’s zoning code, less reductions for on-site infrastructure, as described below. 1. Residential Density Build out density was calculated based on a realistic development pattern, consistent with existing development in the City and region. Residential districts assume that 75% of the maximum permitted density will be constructed, with the remainder to be utilized for landscaping, open space, parking, and circulation. The portions of residential districts located within the NorthStar SP area assume that 100% of the density proposed in the Specific Plan will be constructed. This assumes that the NorthStar land use plan accounts for ancillary land uses such as open space and parking. Population Adding to the existing population in the Sphere, and applying the City’s average household size of 2.76 persons to 18,642 potential residential units at buildout (51,452 residents), yields and estimated buildout population of 59,419. Where per capita factors have been applied in this report, they are based on this population estimate, proportional to the number of units in Area A and Area B. Residential Estate (RE) The purpose of the Residential Estate (RE) district is to provide for appropriately located high quality family residential areas with very low densities, retention of open and natural areas and reduction of grading. The density in the RE zone is one dwelling unit per acre.

2.B.a
Packet Pg. 19
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 11 Resort Residential (RR) The purpose of the Resort Residential (RR) district is to provide appropriately located areas for a variety of housing types and visitor-serving and recreation-oriented uses in a resort development setting with ancillary commercial uses. The density in the RR zone is 7.4 dwelling units per acre. Single-Family Residential (R1) The purpose of the Single-Family Residential (R1) district is to provide a living area within the city where development is limited to low density concentrations of one-family dwellings and to promote and encourage a suitable environment for family life, to provide space for community facilities needed to complement urban residential areas and for institutions which require a residential environment and to minimize traffic congestion. The density in the R1 zone is 6 dwelling units per acre. Multiple-Family Residential (R2) The propose of the Multiple-Family Residential (R2) district is to provide appropriately located areas for families living in a variety of types of dwellings at a low to medium range of population density, and to provide space for community facilities needed to complement urban residential areas. The density in the R2 zone is 12 dwelling units per acre. Multiple-Family Residential (R3) The purpose of the Multiple-Family Residential (R3) district is to provide appropriately located areas for multiple-family dwellings at a medium to high range of population density, and to provide space for community facilities needed to complement urban residential areas. The density in the R3 zone is 24 dwelling units per acre. Where lands zoned as R3 are in the North Star Specific Plan area, the density is 16.6 dwelling units per acre. 2. Commercial Development Intensity Lands designated only for commercial uses occur only in the NorthStar Specific Plan. Commercial development potential outside the Specific Plan are designated Mixed Use on City maps, and are analyzed as described in Section II.A.4 below. Consistent with the land uses proposed in the NorthStar Specific Plan (SP), the PPO district assumes a 33% building coverage, the PCC district assumes an 11.5% building coverage, and the CTR district assumes a 7.4% building coverage. It is assumed that undeveloped lands in the NorthStar SP area will develop at the full building coverage proposed in the plan. Planned Professional Office (PPO) The purpose of the Planned Professional Office (PPO) district is to provide appropriately located areas for the development of professional and administrative office space together with

2.B.a
Packet Pg. 20
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 12 landscaping and off-street parking facilities served by the primary access. It is intended that this zone protect professional administrative offices from noise disturbances and other objectionable pollutions from industrial uses. The PPO district is also useful as a buffer district between residential and commercial districts, or between major roadways and adjacent residential uses. Planned Community Commercial (PCC) The purpose of the Planned Community Commercial (PCC) district is to provide for retail and service commercial uses which are of a relatively high intensity and are necessary to provide a wide range of shopping facilities and goods, professional and administrative offices and entertainment. Commercial Tourist & Recreation (CTR) The purpose of the Commercial Tourist and Recreation (CTR) district is to accommodate commercial uses which serve the tourist trade. Uses can include a combination of retail and service commercial as well as hotel, motel and other transient use facilities. Limited residential uses may be accommodated so long as a majority of the site is not devoted to such uses. The Sphere’s Area B contains approximately 45 acres of vacant commercial land. Based on the building coverages provided above, these lands are assumed to generate 303,759 square feet of new commercial development. 3. Industrial Development Intensity The Light Industrial and Business Park districts assume a 34% building coverage. This accounts for driveways, parking lots, stormwater retention/detention facilities, and similar acillary facilities. For lands located within the NorthStar Specific Plan, the Light Industrial district assumes a 28.5% building coverage. Industrial The purpose of the Light Industrial (I-1) district is to provide a wide diversity of light industrial and service commercial uses in areas where such uses are not likely to have adverse effects upon each other or upon neighboring residential or commercial areas. Uses permitted are those generally regarded as “light industry,” conducted primarily indoors, but which may require limited outdoor storage or assembly areas. This designation also allows for the cultivation of cannabis, and is the only designation on which cannabis tax potential has been allocated. Business Park The purpose of the Business Park (BP) district is to provide opportunity for commercial, office and light manufacturing, both in business park settings and on individually developed lots. This district encourages a complementary mix of uses that includes offices for administrative, business and professional activities in relatively large, campus-like settings, and supportive service and retail commercial businesses.

2.B.a
Packet Pg. 21
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 13 There are approximately 1,402 acres of vacant industrial land in the Sphere. Based on the building coverages provided above, these lands are assumed to generate 20,690,133 square feet of new industrial development. 4. Mixed Use Development Intensity In the Mixed Use – Urban district, it is assumed that 60% of the total district acreage will be developed as residential, and the remaining 40% will be developed as commercial. In portions of the MU-U district located outside of the NorthStar SP, the residential component is assumed to develop at 75% of the maximum density permitted, and the commercial component is assumed to develop at 22% lot coverage. Portions of the MU-U district located within the NorthStar SP are assumed to develop at 100% of the proposed density and coverage. Mixed Use – Urban (MU-U) The purpose of the Mixed-Use Urban (MU-U) district is to create the maximum amount of commercial development at a variety of scales, to encourage higher density residential development to occur in close proximity to employment uses and services to achevie smart growth objectives, and to foster pedestrian-oriented activity notes by providing a mix of uses in compact and walkable areas. (source: North City SP) The maximum floor-area ratio for the commercial component of developments in the MU-U district is 1.0, and the maximum density for the residential component is 45 dwelling units per acre. In the NorthStar Specific Plan, the maximum lot coverage for the commercial component is 25.4%, and the maximum density for the residential portion is 4.14 dwelling units per acre. Mixed Use Commercial (MXC) The purpose of the Mixed Use Commercial (MXC) district is to provide for retail and service commercial uses which are of a high intensity and are necessary to provide a wide range of entertainment venues and facilities, shopping facilities, and professional and administrative offices. In the NorthStar SP, the maximum lot coverage for the MXC district is 16.4%. There are approximately 528 acres of vacant mixed use land in the Sphere. Based on the development intensities provided above, these lands are assumed to generate 11,453 residential units and 2,043,122 square feet of commercial space.

2.B.a
Packet Pg. 22
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 14 III. Potential Revenues Buildout of the Sphere area has the potential to generate revenues to the City of Cathedral City. The following discussion describes potential revenue sources to the City. The discussion first addresses on-going annual revenues generated as development occurs in Area A and Area B, based on the Phases described in Section I of this document. Each revenue source is described, and the assumptions used in the analysis detailed where appropriate. For each revenue source, summary tables are provided for Area A and Area B individually, as well as a summary table showing total revenues in Area A and Area B combined. This discussion is followed by a discussion of one-time revenues, which include Development Impact Fees and Art in Public Places fees. A. Potential Revenue Sources to the City of Cathedral City 1. Annual Revenues Property Tax A property tax of 1% is imposed on the value of real property (land and permanently attached improvements, such as buildings) and tangible personal property (movable property) located within the state. In 1986, California voters passed a constitutional amendment (Article XIIIA of the State Constitution) which provided an exception to the 1% limitation. Local governments and school districts may increase the percentage above 1% to finance the issuance of general obligation bonds. The City participates in the Teeter Plan, an alternative method for property tax apportionment without regard for delinquencies. With the Teeter program, the city’s current secured property tax apportionment is increased by the taxes that were typically delinquent. The City of Cathedral City received approximately 16% of the property tax revenue collected by the County. The fiscal analysis assumes that all taxable properties within the Sphere are taxed at a rate of 1% of valuation, and the collection rate is 100%. Future development in the Sphere area will include residential, commercial, and light industrial development. Average property values for each land use category were calculated based on building permits issued in the City in 2021, 2022, and 2023. For land uses with insufficient building permit data available, alternative sources of real estate data for the area were used to determine average valuations. For existing development, the County provided existing property valuation for all parcels in the Sphere. These valuations were used to calculate the existing property tax collected by the County, and therefore formed the basis for anticipated property tax that the City would collect immediately upon annexation for existing development. This land value is included in the Existing Development category. Property tax for future development is calculated on the value of new construction only, based on the assumption that land value is already included in the Existing Development category.

2.B.a
Packet Pg. 23
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 15 Tables 2 and 3 show the estimated property tax revenue that the City would collect from Area A and Area B, respectively. Table 2 Area A: Property Tax Revenue Summary Table Buildout Phase Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Potential annual property tax revenue to City from existing development $1,365,455 $1,365,455 $1,365,455 $1,365,455 Potential annual property tax revenue to City from future Residential Estate (RE) development $0 $42,231 $211,153 $422,306 Potential annual property tax revenue to City from future Single-Family Residential (R1) development $0 $113,922 $569,610 $1,139,221 Potential annual property tax revenue to City from future Multiple-Family Residential (R2) development $0 $29,605 $148,024 $296,048 Potential annual property tax revenue to City from future Multiple-Family Residential (R3) development $0 $91,378 $456,892 $913,784 Potential annual property tax revenue to City from future Business Park development $0 $0 $0 $0 Potential annual property tax revenue to City from future Light Industrial development $0 $568,257 $2,841,285 $5,682,571 Potential annual property tax revenue to City from future Mixed Use - Urban development (commercial component) $0 $76,585 $382,925 $765,850 Potential annual property tax revenue to City from future Mixed Use - Urban development (residential component) $0 $420,643 $2,103,217 $4,206,434 Total Property Tax Revenue at Phase Buildout $1,365,455 $2,708,076 $8,078,562 $14,791,669

2.B.a
Packet Pg. 24
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 16 Table 3 Area B: Property Tax Revenue Summary Table Buildout Phase Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Potential annual property tax revenue to City from existing development $49,229 $49,229 $49,229 $49,229 Potential annual property tax revenue to City from future Multiple-Family Residential (R2) development $0 $11,451 $57,254 $114,508 Potential annual property tax revenue to City from future Multiple-Family Residential (R3) development $0 $24,361 $121,803 $243,606 Potential annual property tax revenue to City from future Resort Residential (RR) development $0 $1,745 $8,725 $17,450 Potential annual property tax revenue to City from future Planned Professional Office (PPO) development $0 $6,789 $33,944 $67,888 Potential annual property tax revenue to City from future Planned Community Commercial (PCC) development $0 $3,418 $17,092 $34,184 Potential annual property tax revenue to City from future Commercial Tourist & Recreation (CTR) development $0 $2,235 $11,174 $22,348 Potential annual property tax revenue to City from future Business Park (BP) development $0 $2,294 $11,472 $22,944 Potential annual property tax revenue to City from future Light Industrial development $0 $31,945 $159,726 $319,452 Potential annual property tax revenue to City from future Mixed Use - Commercial (MXC) development $0 $0 $0 $0 Potential annual property tax revenue to City from future Mixed Use - Urban development (commercial component) $0 $9,721 $48,605 $97,210 Potential annual property tax revenue to City from future Mixed Use - Urban development (residential component) $0 $7,101 $28,403 $35,504 Total Property Tax Revenue at Phase Buildout $49,229 $150,289 $547,427 $1,024,323 Table 4, below, shows the total property tax revenue anticipated from Area A and Area B, combined. At full buildout of the Sphere area, the City is estimated to collect $15,815,992 in property taxes.

2.B.a
Packet Pg. 25
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 17 Table 4 Area A and Area B: Total Property Tax Revenue Summary Table Buildout Phase Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Area A Property Tax Revenue at Phase Buildout $1,365,455 $2,708,076 $8,078,562 $14,791,669 Area B Total Property Tax Revenue at Phase Buildout $49,229 $150,289 $547,427 $1,024,323 Total Property Tax Revenue at Phase Buildout $1,414,684 $2,858,365 $8,625,989 $15,815,992 Property Tax in Lieu of Motor Vehicle License Fees Prior to 2004, the City received revenues from State Vehicle License Fees which were directly tied to population. In cities where population growth rose steadily, including Cathedral City, these fees represented considerable annual revenues. In 2004, however, the State substantially reduced the fee calculation, and instead assured local jurisdictions that the revenue loss would be offset by an increase in property tax based on valuation. The fiscal impact analysis assumes that the City will continue to receive property tax in lieu of Motor Vehicle License Fees at a rate of 0.65%.1 Tables 5 and 6 show the estimated taxes collected in-lieu of Motor Vehicle License Fees for Area A and Area B. 1 Based on Estimated VLF Adjustment Amount (post SB 130 approved 5-12-17 by Gov. Brown) provided Cathedral City Finance Department, Kevin Biersack - Financial Services Director.

2.B.a
Packet Pg. 26
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 18 Table 5 Area A: In-Lieu Motor Vehicle Tax Summary Table Buildout Phase Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Potential annual MVL in-lieu property tax revenue to City from existing development $8,875 $8,875 $8,875 $8,875 Potential annual MVL in-lieu property tax revenue to City from future Residential Estate development $0 $1,716 $8,578 $17,156 Potential annual MVL in-lieu property tax revenue to City from future Single-Family Residential development $0 $4,628 $23,140 $46,281 Potential annual MVL in-lieu property tax revenue to City from future Multiple Family Residential (R2) development $0 $1,203 $6,013 $12,027 Potential annual MVL in-lieu property tax revenue to City from future Multiple Family Residential (R3) development $0 $3,712 $18,561 $37,123 Potential annual MVL in-lieu property tax revenue to City from future Business Park development $0 $0 $0 $0 Potential annual MVL in-lieu property tax revenue to City from future Industrial development $0 $23,085 $115,427 $230,854 Potential annual MVL in-lieu property tax revenue to City from future Mixed Use - Urban development (commercial component) $0 $3,111 $15,556 $31,113 Potential annual MVL in-lieu property tax revenue to City from future Mixed Use - Urban development (residential component) $0 $114 $570 $1,140 Total MVL in-lieu Property Tax Revenue at Phase Buildout $8,875 $46,445 $196,722 $384,569

2.B.a
Packet Pg. 27
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 19 Table 6 Area B: In-Lieu Motor Vehicle Tax Summary Table Buildout Phase Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Potential annual MVL in-lieu property tax revenue to City from existing development $320 $320 $320 $320 Potential annual MVL in-lieu property tax revenue to City from future Multiple Family Residential (R2) development $0 $465 $2,326 $4,652 Potential annual MVL in-lieu property tax revenue to City from future Multiple Family Residential (R3) development $0 $990 $4,948 $9,897 Potential annual MVL in-lieu property tax revenue to City from future Resort Residential (RR) development $0 $71 $354 $709 Potential annual MVL in-lieu property tax revenue to City from future Planned Professional Office development $0 $276 $1,379 $2,758 Potential annual MVL in-lieu property tax revenue to City from future Planned Community Commercial development $0 $139 $694 $1,389 Potential annual MVL in-lieu property tax revenue to City from future Commercial Tourist & Recreation development $0 $91 $454 $908 Potential annual MVL in-lieu property tax revenue to City from future Business Park development $0 $93 $466 $932 Potential annual MVL in-lieu property tax revenue to City from future Industrial development $0 $1,298 $6,489 $12,978 Potential annual MVL in-lieu property tax revenue to City from future Mixed-Use Commercial (MXC) development $0 $0 $0 $0 Potential annual MVL in-lieu property tax revenue to City from future Mixed Use - Urban development (residential component) $0 $63 $316 $632 Potential annual MVL in-lieu property tax revenue to City from future Mixed Use - Urban development (commercial component) $0 $46 $185 $231 Total MVL in-lieu Property Tax Revenue at Phase Buildout $320 $3,851 $17,931 $35,404

2.B.a
Packet Pg. 28
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 20 As shown in Table 7, below, it is estimated that the City will collect $419,973 per year in lieu of Motor Vehicle License Fees at full buildout of the Sphere area. Table 7 Area A and Area B: Total In-Lieu Motor Vehicle Tax Summary Table Buildout Phase Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Area A Total MVL in-lieu Property Tax Revenue at Phase Buildout $8,875 $46,445 $196,722 $384,569 Area B Total MVL in-lieu Property Tax Revenue at Phase Buildout $320 $3,851 $17,931 $35,404 Total MVL in-lieu Property Tax Revenue at Phase Buildout $9,195 $50,296 $214,653 $419,973 Property Transfer Tax Property Transfer Tax is generated from changes in real property ownership. For analysis purposes, estimated Property Transfer Tax revenues are calculated based on a tax rate of $1.10 per $1,000 (or 0.11%) of the unencumbered property value. This analysis further assumes that for a transfer within an incorporated jurisdiction, the revenue is divided evenly between the County (50%) and the jurisdiction (50%). Upon the sale of a new unit, the unencumbered value (average 80%) of the property is subject to the property transfer tax. For the purpose of analysis, it is assumed the 10% of existing residential units will change ownership per year, thereby generating property transfer taxes. Given that sales of commercial and industrial properties are infrequent and sporadic, this analysis only assumes resale of residential units. As a result, this analysis is conservative, and revenues to the City from property transfer tax would likely to be higher than the totals shown in Tables 8, 9, and 10. Tables 8 and 9 show the annual property transfer tax that would be generated in Area A and Area B at full buildout.

2.B.a
Packet Pg. 29
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 21 Table 8 Area A: Property Transfer Tax Revenue Summary Table Buildout Phase Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Total tax revenue from existing residential development (at phase buildout) $30,425 $30,425 $30,425 $30,425 Total tax revenue from future RE dev. (at phase buildout) $3,110 $17,627 $61,177 $75,694 Total tax revenue from future R1 dev. (at phase buildout) $0 $40,483 $161,934 $202,417 Total tax revenue from future R2 dev. (at phase buildout) $0 $10,976 $43,902 $54,878 Total tax revenue from future R3 dev. (at phase buildout) $0 $32,525 $130,099 $162,624 Total tax revenue from future Mixed Use - Urban (resid.) dev. (at phase buildout) $0 $156,164 $624,655 $780,819 Area A property transfer tax revenue at phase buildout $33,535 $288,200 $1,052,193 $1,306,857 Table 9 Area B: Property Transfer Tax Revenue Summary Table Buildout Phase Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Total tax revenue from existing residential development (at phase buildout) $0 $0 $0 $0 Total tax revenue from future Multiple Family Residential (R2) development (at phase buildout) $0 $4,245 $16,981 $21,226 Total tax revenue from future Multiple-Family Residential (R3) development (at phase buildout) $0 $8,671 $34,683 $43,354 Total tax revenue from future Resort Residential (RR) development (at phase buildout) $0 $621 $2,483 $3,104 Total tax revenue from future Mixed Use - Urban development (residential component) (at phase buildout) $0 $3,460 $13,840 $17,300 Area B property transfer tax revenue at phase buildout $0 $16,997 $67,987 $84,984

2.B.a
Packet Pg. 30
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 22 As shown in Table 10, below, a total of $1,391,841 in property transfer tax is estimated to be generated from Area A and Area B, combined, at full buildout. Table 10 Area A and Area B: Total Property Transfer Tax Revenue Summary Table Buildout Phase Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Area A property transfer tax revenue at phase buildout $33,535 $288,200 $1,052,193 $1,306,857 Area B property transfer tax revenue at phase buildout $0 $16,997 $67,987 $84,984 Total property transfer tax revenue at phase buildout $33,535 $305,197 $1,120,180 $1,391,841 Sales Tax and Transient Users Tax In accordance with California law, taxes are paid on in-state purchases and items purchased out of state for use in California. Retailers are responsible for reporting and paying sales tax to the state via the State Board of Equalization. When an out-of-state or online retailer does not collect the tax for an item delivered to California, the purchaser may owe “use tax,” which is a tax on the use, storage, or consumption of personal property in California. Taxpayers can report and pay their use tax on their California income tax returns; registered sellers report their use tax on their sales and use tax returns. The current sales and use tax rate collected in Cathedral City is 7.25%. In Riverside County, the current sales and use tax rate is 7.75%, accounting for an addition 0.5% for Measure A. The total sales tax rate of 8.75%, as shown in Table 11, below, includes an additional 1.0% to account for the City’s transactions and use tax passed by Measure H in 2010. Table 11 Components of the 8.75% Sales Tax Rate Jurisdiction 3.9375% State of California General Fund 0.5000% State Local Revenue Fund (1991) 0.5000% State Local Public Safety Fund (1993) 1.0625% State Local Revenue Fund (2011) 1.2500% City/County Local Tax (0.25% County Transportation Funds / 1% City/County Operations) 0.5000% District Rate - Riverside County Measure A (transit) 1.0000% Cathedral City Measure H (Transactions and Use Tax) 8.75% TOTAL RATE Source: City of Cathedral City Adopted Biennial Budget – FY 2023/2024 & FY 2024/2025

2.B.a
Packet Pg. 31
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 23 The City receives 1% of the base sales tax generated in its jurisdiction. As stated above, with the passage of Measure H (2010) and subsequent Measure B (2014), the City imposes an additional 1% transaction and use tax on all retailers. According to the City’s budget, transactions and use tax revenues have typically represented approximately 60% of sales tax revenues. The fiscal analysis estimates total taxable sales that could be generated for each build out phase, then calculates 1.60% of taxable sales to determine how much sales tax and transaction and use tax revenue would be generated to the City. The fiscal impact analysis estimates the sales tax revenue generated by existing commercial lands in the Sphere and projects potential sales tax revenue that could be generated on currently vacant commercial lands in the Sphere area. The average annual sales per square foot of commercial space was calculated based on Cathedral City Transactions and Use Tax revenues ($9,711,000 in FY 2021) and the total square footage of existing commercial development in the City (approximately 4,134,907 square feet). Although limited sales tax revenue may be generated by development in districts zoned for Light Industrial and Business Park use, the amount is expected to be negligible, and industrial development is assumed to generate no taxable sales in this analysis. It is assumed that commercial development in the following districts will generate sales tax revenue: Planned Professional Office (PPO), Planned Community Commercial (PCC), Commercial Tourist & Recreation (CTR), Mixed Use Commercial (MXC), and Mixed Use – Urban (MU-U). Table 12 and 13 show the projected sales tax revenue generated by Area A and Area B, respectively. Table 12 Area A: Sales Tax Revenue Summary Table

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Total sales tax revenue from existing commercial development $944,070 $944,070 $944,070 $944,070 Total sales tax revenue from future mixed use - urban development $0 $632,320 $3,161,601 $6,323,202 Area A sales tax revenue from all development $944,070 $1,576,390 $4,105,671 $7,267,272

2.B.a
Packet Pg. 32
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 24 Table 13 Area B: Sales Tax Revenue Summary Table

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Total sales tax revenue from existing commercial development $0 $0 $0 $0 Total sales tax revenue from future commercial (PPO) development $0 $28,026 $140,128 $280,256 Total sales tax revenue from future commercial (PCC) development $0 $28,224 $141,118 $282,237 Total sales tax revenue from future mixed use (MX-C) development $0 $0 $0 $0 Total sales tax revenue from future mixed use (MU-U) development $0 $58,628 $293,138 $586,276 Area B sales tax revenue from all development $0 $114,877 $574,384 $1,148,768 As shown in Table 14, below, Area A and Area B are projected to generated a combined $8,416,040 in sales tax revenues at full buildout. Table 14 Area A and Area B: Total Sales Tax Revenue Summary Table

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Area A sales tax revenue from all development $944,070 $1,576,390 $4,105,671 $7,267,272 Area B sales tax revenue from all development $0 $114,877 $574,384 $1,148,768 Total sales tax revenue at phase buildout $944,070 $1,691,267 $4,680,055 $8,416,040 Measure A Revenue Of the 8.75% sales tax collected in Riverside County, 0.50% is contributed to the Measure A Fund for regional and local transportation projects. Of Measure A funds available countywide, approximately 24% is distributed to the Coachella Valley region. These funds are further allocated for specific purposes: 50% for State highways and regional road improvements, 35% for local streets and roads, and 15% for transit (Sunline Transit Agency). Of the 35% for local streets and roads, about 11% goes to the City. This percentage is based on a formula that accounts for Cathedral City’s total number of dwelling units and total taxable sales. Based on this breakdown of Measure A distribution, Table 15 and Table 16 show the estimated revenues generated by Area A and Area B at buildout.

2.B.a
Packet Pg. 33
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 25 Table 15 Area A: Measure A Revenue Summary Table

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Total Measure A revenue from existing commercial development $2,726 $2,726 $2,726 $2,726 Total Measure A revenue from future mixed use - urban development $0 $1,826 $9,129 $18,258 Area A Measure A revenue from all development $2,726 $4,552 $11,855 $20,984 Table 16 Area B: Measure A Revenue Summary Table

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Total Measure A revenue from existing commercial development $0 $0 $0 $0 Total Measure A revenue from future commercial (PPO) development $0 $81 $405 $809 Total Measure A revenue from future commercial (PCC) development $0 $81 $407 $815 Total Measure A revenue from future mixed use (MX-C) development $0 $0 $0 $0 Total Measure A revenue from future mixed use (MU-U) development $0 $169 $846 $1,693 Area B Measure A revenue from all development $0 $332 $1,659 $3,317 As shown in Table 17, below, at full buildout Area A and Area B are projected to generate a combined $24,301 in Measure A revenue for the City. Table 17 Area A and Area B: Total Measure A Revenue Summary Table

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Area A Measure A revenue from all development $2,726 $4,552 $11,855 $20,984 Area B Measure A revenue from all development $0 $332 $1,659 $3,317 Total Measure A revenue at phase buildout $2,726 $4,884 $13,514 $24,301

2.B.a
Packet Pg. 34
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 26 Cannabis Tax On November 4, 2014, the Cathedral City voters approved Measure N, a new tax on Cannabis businesses operating under California’s medical cannabis laws. The new tax allows for collection of up to 15% tax on each dollar of gross receipts received by a dispensary. On November 8, 2016, Measure P was approved allowing the City to impose up to $25 per square foot on cannabis cultivation space. The tax was reduced in 2023 and is currently $15 on past due accounts, $10 for customers current in tax payments. For the purpose this fiscal analysis, it has been assumed that 5% of lands in zoning districts that permit cannabis cultivation (Light Industrial (I-L), Planned Community Commercial (PCC), Business Park (BP) districts) would develop cultivation uses. Based on this assumption, Table 18 and Table 19 show the estimated cannabis tax revenues generated by buildout of Area A and Area B. Table 18 Area A: Cannabis Tax Revenue Summary Table

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Total cannabis tax revenue from future Industrial development $0 $780,573 $4,878,581 $9,757,161 Area A cannabis tax revenue from all development $0 $780,573 $4,878,581 $9,757,161 Table 19 Area B: Cannabis Tax Revenue Summary Table

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Total cannabis tax revenue from future Planned Community Commercial development $0 $3,338 $20,864 $41,728 Total cannabis tax revenue from future Business Park development $0 $3,152 $19,698 $39,396 Total cannabis tax revenue from future Industrial development $0 $43,881 $274,255 $548,509 Area B cannabis tax revenue from all development $0 $50,371 $314,817 $629,633 Table 20, below, shows the estimated total cannabis tax revenue from the combined buildout of Area A and Area B. It should be noted that these estimates are highly speculative. As noted in the Cathedral City Adopted Biennial Budget (FY 2023/2023 & FY 2024/2025), the City expects that cannabis tax revenues in FY 2022/2023 will be less than projected. To account for this uncertainty, the cost/revenue analysis provided in Section V of this report will analyze total revenues both with and without cannabis tax included.

2.B.a
Packet Pg. 35
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 27 Table 20 Area A and Area B: Total Cannabis Tax Revenue Summary Table

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Area A sales tax revenue from all development $0 $780,573 $4,878,581 $9,757,161 Area B sales tax revenue from all development $0 $50,371 $314,817 $629,633 Total cannabis tax revenue from all development $0 $830,943.58 $5,193,397.39 $10,386,794.78 Transient Occupancy Tax (TOT) Transient Occupancy Tax is collected from individuals when they occupy a hotel or motel room. In Cathedral City, the TOT is collected at a rate of 12%. The City also collects limited TOT revenue from RV parks, timeshares (non-owner stays), and vacation rentals. There is currently one hotel with approximately 115 rooms in the Sphere. The room rates at the property are lower than the average room rate in the City. For the purpose of this analysis, the room rate at the existing property is assumed to be 65% of the current average room rate in Cathedral City, and the average occupancy rate is assumed to be 65%. Potential TOT revenues from buildout of the Sphere area are based on the number of hotel/motels that could be constructed in Area A and Area B, the average nightly room rate charged, and the average occupancy rate. Area A is assumed to develop two hotels in the Mixed-Use Urban district, one in Phase 3 and one in Phase 4, that will have an occupancy rate of 65% and an average room rate based on the average price in Cathedral City. Based on the existing hotel and anticipated hotels in Area A, Table 21 provides the estimated TOT revenues at buildout. Table 21 Area A: Transient Occupancy Tax Revenue Summary Table

Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Annual TOT Revenue from Existing Hotels (at phase buildout) $401,693 $401,693 $401,693 $401,693 Annual TOT Revenue from Future Hotels (at phase buildout) $0 $0 $671,714 $1,343,428 Area A Annual TOT Revenue from all development (at phase buildout) $401,693 $401,693 $1,073,407 $1,745,121

2.B.a
Packet Pg. 36
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 28 As previously stated, Area B is mostly located within the NorthStar Specific Plan. The SP proposes the development of one 350-room hotel. For purposes of analysis, this hotel will have an average room rate of $365 per night and an average occupancy rate of 65%, based on similar resort hotels in the Coachella Valley. Table 22 shows the estimated TOT revenue that would be generated from buildout of the hotel in Area B. Table 22 Area B: Transient Occupancy Tax Revenue Summary Table

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Annual TOT Revenue from Existing Hotels (at phase buildout) $0 $0 $0 $0 Annual TOT Revenue from Future Hotels (at phase buildout) $0 $0 $3,637,043 $3,637,043 Area B Annual TOT Revenue from all development (at phase buildout) $0 $0 $3,637,043 $3,637,043 As shown in Table 23, below, Area A and Area B are estimated to generate a combined $5,382,164 in transient occupancy tax revenues at buildout. Table 23 Area A and Area B: Total Transient Occupancy Tax Revenue Summary Table

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Area A Annual TOT Revenue from all development (at phase buildout) $401,693 $401,693 $1,073,407 $1,745,121 Area B Annual TOT Revenue from all development (at phase buildout) $0 $0 $3,637,043 $3,637,043 Total Annual TOT Revenue from all development (at phase buildout) $401,693 $401,693 $4,710,450 $5,382,164

2.B.a
Packet Pg. 37
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 29 Highway User Gas Tax The State of California imposes a per gallon tax on all gasoline purchases. This fiscal impact analysis projects future highway users gas tax revenues by assuming a per capita ratio. The ratio was calculated by dividing the total revenue from the state gas tax fund that is allocated to the city2 by the current population in the City. The per capita Highway Use Gas Tax from existing development was estimated based on the existing population in Thousand Palms (7,967).3 The tax was applied to future development based on potential population at phase buildout using the average household size of 2.76 persons in Cathedral City.4 Tables 24 and 25 shows the estimated Highway User Gas Tax revenue from buildout of Area A and Area B. Table 24 Area A: Highway User Gas Tax Revenue Summary Table

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Total Annual Gas Tax Revenue from Existing Residential Development $208,895 $208,895 $208,895 $208,895 Total Annual Gas Tax Revenue from Future Residential Development $0 $125,803 $629,016 $1,258,031 Area A Annual Gas Tax Revenue from all development $208,895 $334,698 $837,910 $1,466,926 Table 25 Area B: Highway User Gas Tax Revenue Summary Table

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Total Annual Gas Tax Revenue from Existing Residential Development $0 $0 $0 $0 Total Annual Gas Tax Revenue from Future Residential Development $0 $9,105 $45,525 $91,050 Area B Annual Gas Tax Revenue from all development $0 $9,105 $45,525 $91,050 2 Cathedral City Adopted Budget for Fiscal Years 2023-24 and 2024-25 total revenue collected from the State Gas Tax Fund (p.241). 3 U.S. Census Bureau, 2020 Census of Population and Housing for Thousand Palms CDP. 4 Department of Finance E-5 Population and Housing Estimates for Cities, Counties, and the State, January 2021-2023, with 2020 Benchmark

2.B.a
Packet Pg. 38
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 30 As shown in Table 26, below, buildout of Area A and Area B is estimated to generate a combined total of $1,557,976 in Highway Users Gas Tax revenues. Table 26 Area A and Area B: Total Highway User Gas Tax Revenue Summary Table

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Area A Annual Gas Tax Revenue from all development $208,895 $334,698 $837,910 $1,466,926 Area B Annual Gas Tax Revenue from all development $0 $9,105 $45,525 $91,050 Total Annual Gas Tax Revenue from all development $208,895 $343,803 $883,435 $1,557,976 Utility Users Tax Cathedral City adopted its Utility Users’ Tax (UUT) in 2008. The City imposes a UUT rate of 3% on the telecommunication, cable, electricity, gas, and solid waste. A per capita ratio was utilized to calculated potential revenues from UUT by dividing the total UUT revenues collected by the city in fiscal year 2021/20225 by the current population. Revenues were then projected by each phase’s projected population. Using this method, Table 27 and 28 show the estimated UUT for Area A and Area B at buildout. Table 27 Area A: Utility Users Tax Revenue Summary Table

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Total Annual Utility Users Tax Revenue from Existing Residential Development $502,160 $502,160 $502,160 $502,160 Total Annual Utility Users Tax Revenue from Future Residential Development $0 $302,417 $1,512,085 $3,024,169 Area A Annual Utility Users Tax Revenue from all residential development $502,160 $804,577 $2,014,245 $3,526,329 5 Cathedral City Adopted Budget for Fiscal Years 2023-24 and 2024-25, total revenue collected from the Utility Users' Tax (p.58).

2.B.a
Packet Pg. 39
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 31 Table 28 Area B: Utility Users Tax Revenue Summary Table

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Total Annual Utility Users Tax Revenue from Existing Residential Development $0 $0 $0 $0 Total Annual Utility Users Tax Revenue from Future Residential Development $0 $21,887 $109,437 $218,873 Area B Annual Utility Users Tax Revenue from all residential development $0 $21,887 $109,437 $218,873 As shown in Table 29, an estimate $3,745,202 in Utilities Users Tax revenue is estimated to be generated at buildout of Area A and Area B, combined. Table 29 Area A and Area B: Utility Users Tax Revenue Summary Table

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Area A Annual Utility Users Tax Revenue from all residential development $502,160 $804,577 $2,014,245 $3,526,329 Area B Annual Utility Users Tax Revenue from all residential development $0 $21,887 $109,437 $218,873 Total Annual Utility Users Tax Revenue from all residential development $502,150 $826,464 $2,123,681 $3,745,202 Franchise Fees Revenue Franchise fees represent approximately 4.5% of total General Fund revenues. The City grants franchises to utility companies for the use of City streets and rights-of-way. The Public Utility Commission (PUC) limits electric and gas franchise fees to 2% and cable franchise fees to 5% of gross receipts. Currently, the City collects electric franchise fees from Southern California Edison and gas franchise fees from The Gas Company at the rate of 2% of gross receipts arising from the use, operation or possession of the franchise, and cable franchise fees from Time Warner Cable, Inc. at the rate of 5% of gross receipts. In addition to utilities, the City also charges a solid waste hauler’s franchise fee. The current franchise agreement is with Burrtec Waste Industries, Inc. The current franchise rate is 12% of gross receipts levied/paid semi-annually on property tax bills.

2.B.a
Packet Pg. 40
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 32 The City has granted Sunline Transit Agency use of public right-of-way for bus shelters within the city. Franchise fees from transportation account for approximately 0.5 % of total franchise fees. The following methodology and assumptions were used in this fiscal impact analysis to project potential future franchise fee revenues associated with Sphere annexation. Similar to the Highway Gas Tax and Utility Users Tax revenue assumptions, a per capita ratio was utilized to calculate potential revenues from franchise fees by dividing the total franchise fees revenues collected by the city in the fiscal year 2021/2022 by the current population. Revenues were then projected based on each phase’s projected population. Table 30 and Table 31 show the total revenues that the City is estimated to collected from franchise fees for Area A and Area B, respectively. Table 30 Area A: Franchise Fees Revenue Summary Table

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Total Annual Franchise Fees Revenue from Existing Residential Development $415,718 $415,718 $415,718 $415,718 Total Annual Franchise Fees Revenue from Future Residential Development $0 $250,359 $1,251,794 $2,503,588 Area A Annual Franchise Fees Revenue from all residential development $415,718 $666,077 $1,667,512 $2,919,306 Table 31 Area B: Franchise Fees Revenue Summary Table

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Total Annual Franchise Fees Revenue from Existing Residential Development $0 $0 $0 $0 Total Annual Franchise Fees Revenue from Future Residential Development $0 $18,120 $90,598 $181,196 Area B Annual Franchise Fees Revenue from all residential development $0 $18,120 $90,598 $181,196

2.B.a
Packet Pg. 41
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 33 Table 32, below, shows the estimated franchise fee revenue that the City will collect from the combined buildout of Area A and B. Table 32 Area A and Area B: Total Franchise Fees Revenue Summary Table

Buildout Phase
Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Area A Annual Franchise Fees Revenue from all residential development $415,718 $666,077 $1,667,512 $2,919,306 Area B Annual Franchise Fees Revenue from all residential development $0 $18,120 $90,598 $181,196 Total Annual Franchise Fees Revenue from all residential development $415,718 $684,196 $1,758,110 $3,100,502 Ambulance Service Reimbursement The Cathedral City Fire Department currently provides ambulance service to the City. According to Chief Contreras, the Department received 7,145 ambulance calls in 2023. When an ambulance is called, the Fire Department is later reimbursed for the service by the individual’s health care provider. The rate of reimbursement varies depending on the specifics of the agreement with the health care provider. In 2023, the Fire Department received $3.8 million in reimbursement for the ambulance service. As previously stated, this analysis considers two different scenarios for fire protection. Scenario 1 assumes that the Cathedral City Fire Department would serve the Sphere area at annexation, including the provision of ambulance service. Scenario 2 for fire protection assumes that the City would contract with CalFire to provide both fire protection and ambulance service to the Sphere area. The following methodology was used to estimate the potential revenue from ambulance service reimbursement at partial and full buildout of the potential annexed area. A per capita ratio was calculated based on the number of calls and amount of reimbursement received in 2023, as well as the City’s population in 2023. The resulting rates of 0.14 calls per capita per year and $531.84 in reimbursement received per call were then applied to the projected population at each phase of development for Area A and Area B. Using this method, Table 33 and Table 34 show the estimated total annual ambulance service reimbursement revenue for Area A and Area B, respectively. It is important to note that if the City were to contract with CalFire for these services, there would be no reimbursement to the City. Therefore, these revenues apply only to Scenario 1 for Fire Services.

2.B.a
Packet Pg. 42
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 34 Table 33 Area A: Ambulance Service Reimbursement Revenue Summary Table

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Total Annual Ambulance Service Reimbursement Revenue from Existing Residential Development $593,204 $593,204 $593,204 $593,204 Total Annual Ambulance Service Reimbursement Revenue from Future Residential Development $0 $357,246 $1,786,232 $3,572,464 Area A Total Annual Ambulance Service Reimbursement Revenue $593,204 $950,450 $2,379,436 $4,165,667 Table 34 Area B: Ambulance Service Reimbursement Revenue Summary Table

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Total Annual Ambulance Service Reimbursement Revenue from Existing Residential Development $0 $0 $0 $0 Total Annual Ambulance Service Reimbursement Revenue from Future Residential Development $0 $25,856 $129,278 $258,556 Area B Total Annual Ambulance Service Reimbursement Revenue $0 $25,856 $129,278 $258,556 Table 35, below, shows the estimated total ambulance reimbursement revenue that the City will collect from the combined buildout of Area A and B. Table 35 Area A and B: Total Ambulance Service Reimbursement Revenue Summary Table

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Area A Annual Ambulance Service Reimbursement Revenue from all residential development $593,204 $950,450 $2,379,436 $4,165,667 Area B Annual Ambulance Service Reimbursement Revenue from all residential development $0 $25,856 $129,278 $258,556 Total Annual Ambulance Service Reimbursement Revenue from all residential development $593,204 $976,306 $2,508,713 $4,424,223

2.B.a
Packet Pg. 43
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 35 2. One-Time Revenues Development Impact Fees As the Sphere area develops, the City will collect Development Impact Fees (DIF) based on its adopted DIF fee schedule. Pursuant to Government Code 66001 and 66006, local agencies must submit an annual report that details their DIF fees and make it available to the public. This fiscal analysis projects DIF revenues based on the rates provided in the City of Cathedral City AB 1600 Fee Justification Nexus Study (September 2023), effective as of January 1, 2024. The City’s DIFs include a park facilities fee, transportation fee, government facilities fee, fire facilities fee, and police facilities fee. The Master Underground Plan fees are based on the rate provided in the City of Cathedral City AB 1600 Development Impact Fee Report for FY 2021/2022. DIF revenues are projected based on development within that phase, and would vary considerably based on that level of development. DIF revenues will be significant given the fact that land in the Sphere area is largely undeveloped. Table 36 and Table 37 show the estimated one-time DIF revenues generated by buildout of Area A and Area B, respectively. Table 36 Area A: Development Fees Revenue Summary Table

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) New Single Family Residential Development $0 $5,358,554 $21,434,216 $26,792,770 New Multi-Family Residential Development $0 $20,677,197 $82,708,787 $103,385,984 New Commercial Development $0 $631,081 $2,524,322 $3,155,403 New Office Development $0 $0 $0 $0 New Industrial Development $0 $1,296,278 $5,185,112 $6,481,390 Area A Total Development Impact Fee Revenue at phase buildout $0 $27,963,109 $111,852,437 $139,815,546 Table 37 Area B: Development Fees Revenue Summary Table Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed)
Phase 4 (Build Out)
New Single Family Residential Development $0 $0 $0 $0 New Multi-Family Residential Development $0 $749,807 $2,999,227 $3,749,034

2.B.a
Packet Pg. 44
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 36 Table 37 Area B: Development Fees Revenue Summary Table Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed)
Phase 4 (Build Out)
New Commercial Development $0 $18,120,589 $72,482,354 $90,602,943 New Office Development $0 $31,199,340 $124,797,362 $155,996,702 New Industrial Development $0 $14,027,344 $56,109,377 $70,136,721 Area B Total Development Impact Fee Revenue at phase buildout $0 $64,097,080 $256,388,320 $320,485,400 Table 38 shows the combined DIF revenue that is estimated to be generated from buildout of Area A and Area B. Table 38 Area A and Area B: Total Development Fees Revenue Summary Table

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Area A Development Impact Fee Revenue from all new development at phase buildout $0 $27,963,109 $111,852,437 $139,815,546 Area B Development Impact Fee Revenue from all new development at phase buildout $0 $64,097,080 $256,388,320 $320,485,400 Total Development Impact Fee Revenue from all new development at phase buildout $0 $92,060,189 $368,240,757 $460,300,946 Art in Public Places Fees The Art in Public Places fund is reserved for maintaining public artwork throughout the City. For non-residential development, the fee is 1% of 90% valuation of the structure or the construction and installation of public art. Revenues were estimated based on average value per square foot of commercial and industrial development. Table 39 and Table 40 show the estimated revenues that would be generated from buildout of Area A and Area B, respectively. Table 39 Area A: Art in Public Places Fees Revenue Summary Table Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed)
Phase 4 (Build Out)
New Commercial Development (includes Mixed Use - Urban commercial component) $0 $430,791 $1,723,163 $2,153,954

2.B.a
Packet Pg. 45
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 37 Table 39 Area A: Art in Public Places Fees Revenue Summary Table Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed)
Phase 4 (Build Out)
New Business Park Development $0 $0 $0 $0 New Industrial Development $0 $3,196,446 $12,785,784 $15,982,231 Area A: Art in Public Places Revenue from all new development at phase buildout $0 $3,627,237 $14,508,948 $18,136,185 Table 40 Area B: Art in Public Places Fees Revenue Summary Table

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) New Retail Commercial Development $0 $59,171 $236,682 $295,853 New Non Retail Commercial and Industrial Development $0 $228,683 $914,733 $1,143,416 Area B: Art in Public Places Revenue from all new development at phase buildout $0 $287,854 $1,151,415 $1,439,268 As shown in Table 41, below, buildout of Area A and Area B are estimated to generate a combined $19,575,453 in revenue for the City’s Art in Public Places fund. Table 41 Area A and Area B: Art in Public Places Fees Revenue Summary Table

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Area A: Art in Public Places Revenue from all new development at phase buildout $0 $3,627,237 $14,508,948 $18,136,185 Area B: Art in Public Places Revenue from all new development at phase buildout $0 $287,854 $1,151,415 $1,439,268 Total Art in Public Places Revenue from all new development at phase buildout $0 $3,915,091 $15,660,363 $19,575,453

2.B.a
Packet Pg. 46
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 38 IV. Potential Costs A. Potential Costs to the City of Cathedral City 1. Annual Costs Future development of lands in the Sphere will not only generate additional revenues, but will also generate additional municipal costs. There will be expenditures for general government services as well as the expansion and/or extension of infrastructure, utilities, roads and other public services, particularly public safety. The fiscal model projects the City’s costs of providing general government services, public safety, and transportation/roadway maintenance to new development on lands in the area. Costs of General Government Costs of General Government are funded through the City’s General Fund. Costs to the city associated with general government include city-wide services, such as employee salaries and benefits, postage, printing, travel, equipment maintenance and repairs, contract services, computers, vehicles and other items necessary for the day-to-day functioning of government. It includes public and community services, such as code compliance and animal control, as well as municipal and support services. These are further described in the Constraints and Opportunities Analysis. For purposes of this analysis, a per capita factor has been applied to calculate government costs. In general, the population of a city generates the greatest demand for services, while the commercial and industrial components of a City’s development pattern generate a low demand for general government services. This analysis uses the City’s actual expenditures in FY 2021/22 to translate costs into a per capita factor for General Fund expenditures. Expenditures associated with elected officials, legal services, and city management were excluded from the per capita factor, assuming that these costs will not increase directly in proportion to development in the Sphere. Expenditures associated with public safety are also excluded from the per capita factor, because they are addressed separately, below. Finally, a separate per capita factor was calculated for public works, also addressed below. Based on expenditures on financial services, development services, and general government, the per capita factor is $259.46. The model applies that amount to the anticipated buildout population. The result is the estimated cost of providing general government services to future residents, as shown for Area A and Area B in Tables 42 and 43, below.

2.B.a
Packet Pg. 47
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 39 Table 42 Area A: Costs of General Government Summary Table

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Residential development Total Annual Cost from existing Residential development at phase buildout $2,067,118 $2,067,118 $2,067,118 $2,067,118 Total Annual Cost from future Residential Estate (RE) Development at phase buildout $0 $57,521 $287,605 $575,209 Total Annual Cost from future Single-Family Residential (R1) Development at phase buildout $0 $155,170 $775,848 $1,551,696 Total Annual Cost from future Multiple-Family Residential (R2) Development at phase buildout $0 $56,419 $282,094 $564,188 Total Annual Cost from future Multiple-Family Residential (R3) Development at phase buildout $0 $174,144 $870,718 $1,741,435 Total Annual Cost from future Mixed Use - Urban Residential Development at phase buildout $0 $801,633 $4,008,165 $8,016,331 Area A: Annual Govt. Costs at Phase Buildout $2,067,118 $3,312,004 $8,291,547 $14,515,977 Table 43 Area B: Costs of General Government Summary Table

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Residential development Total Annual Cost from existing Residential development at phase buildout $0 $0 $0 $0 Total Annual Cost from future Multiple-Family Residential (R2) Development at phase buildout $0 $21,822 $109,110 $218,221 Total Annual Cost from future Multiple-Family Residential (R3) Development at phase buildout $0 $46,425 $232,124 $464,248 Total Annual Cost from future Resort Residential (RR) Development at phase buildout $0 $3,326 $16,628 $33,255 Total Annual Cost from future Mixed Use - Urban Residential Development at phase buildout $0 $18,526 $92,628 $185,256 Area B: Annual Govt. Costs at Phase Buildout $0 $90,098 $450,490 $900,981 As shown in Table 44, buildout of Area A and Area B are estimated to generate a combined cost of $15,416,957 for general government.

2.B.a
Packet Pg. 48
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 40 Table 44 Area A and Area B: Costs of General Government Summary Table

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Area A: Annual Govt. Costs at Phase Buildout $2,067,118 $3,312,004 $8,291,547 $14,515,977 Area B: Annual Govt. Costs at Phase Buildout $0 $90,098 $450,490 $900,981 Total Annual Govt. Costs at Phase Buildout $2,067,118 $3,402,102 $8,742,038 $15,416,957 Public Works Costs In addition to general government costs, the City expends funds on costs associated with public works, such as street signage, traffic signal maintenance, drainage system maintenance, landscape maintenance, and minor improvement projects. Similar to the calculation of general government costs, a per capita factor has been applied to calculate increases in public works costs associated with buildout of the Sphere area. This analysis uses the City’s actual expenditures on engineering and public works in FY 2021/22 to translate costs into a per capita factor for public works expenditures. Using this method, the per capita factor is $76.33. The model applies that amount to the anticipated buildout population. The result is the estimated cost of providing general government services to future residents, as shown for Area A and Area B in Tables 45 and 46, below. Table 45 Area A: Public Works Costs

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Total Annual Public Works costs from Existing Residential Development $608,121 $608,121 $608,121 $608,121 Total Annual Public Works costs from Future Residential Development $0 $366,230 $1,831,151 $3,662,301 Area A: Annual Public Works costs from all residential development $608,121 $974,351 $2,439,272 $4,270,422

2.B.a
Packet Pg. 49
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 41 Table 46 Area B: Public Works Costs

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Total Annual Public Works costs from Existing Residential Development $0 $0 $0 $0 Total Annual Public Works costs from Future Residential Development $0 $26,506 $132,529 $265,058 Area B: Annual Public Works costs from all residential development $0 $26,506 $132,529 $265,058 As shown in Table 47, below, buildout of Area A and Area B would result in public works costs of $4,535,480 per year. Table 47 Area A and Area B: Total Public Works Costs

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Area A: Annual Public Works costs from all residential development $608,121 $974,351 $2,439,272 $4,270,422 Area B: Annual Public Works costs from all residential development $0 $26,506 $132,529 $265,058 Total Annual Public Works costs from all residential development $608,121 $1,000,857 $2,571,800 $4,535,480 Costs of Police Protection The Cathedral City Police Department would require additional staff, patrol vehicles, and equipment to serve the Sphere area. The Police Chief provided an estimate of the staffing and equipment that the Department would require immediately upon annexation, at 50% buildout, and at 100% buildout. The full staffing and equipment requirements and associated costs provided by the Police Department are provided in Appendix B. According to the information provided by the Police Department, 8 officers, 2 sergeants, 2 dispatchers and 1 records specialist would be required immediately upon annexation. By full buildout of the SOI area, an additional 16 police officers, 1 commander, 2 sergeants, 2 detectives, 2 dispatchers, 2 community service officers, 1 records specialists and 1 evidence technician would be required. Costs associated with personnel are recurring, and are calculated in this fiscal analysis on an annual basis. As provided in Appendix B, the Police Chief estimated the cost associated with staffing needs for immediately upon annexation, 50% buildout, and 100% buildout. According to the Police Chief, the fully burdened rate per staff is $624,000 per commander, $538,720 per sergeant,

2.B.a
Packet Pg. 50
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 42 $378,000 per officer and per detective, $282,880 per community service officer and evidence technician, $276,640 per dispatcher, and $255,840 per records specialist. Based on total annual costs associated with personnel, a per capita cost was calculated by dividing the annual cost by population in the SOI at each phase of buildout in Area A and Area B. In addition to staffing, the Police Department would need additional patrol cars to serve the Sphere area. Additional equipment would also be required to outfit the officers and sergeants. Costs associated with patrol cars and equipment would be incurred on a one-time basis. These costs are discussed in Section 2 – One Time Costs. Immediately at annexation, annual costs associated with Police Protection would total $616.36 per capita, and at full buildout of Area A and Area B, Police Protection would cost $263.58 per capita. Table 48 and Table 49 show the annual cost estimated to provide Police Protection to Area A and Area B at buildout. Table 48 Area A: Police Protection Costs – Annual

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Total Annual Police Protection costs from Existing Residential Development $4,910,540 n/a n/a n/a Total Annual Police Protection costs from Future Residential Development $0 $4,579,148 $8,453,328 $12,646,526 Area A: Annual Police Protection costs from all residential development $4,910,540 $4,579,148 $8,453,328 $12,646,526 Table 49 Area B: Police Protection Costs – Annual

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Total Annual Police Protection costs from Existing Residential Development $0 $0 $0 $0 Total Annual Police Protection costs from Future Residential Development $0 $331,414 $611,806 $915,287 Area B: Annual Police Protection costs from all residential development $0 $331,414 $611,806 $915,287

2.B.a
Packet Pg. 51
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 43 As shown in Table 50, the provision of Police Protection to Area A and Area B at buildout would cost the City $13,561,813 per year. Table 50 Area A and Area B: Total Police Protection Costs – Annual

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Area A: Annual Police Protection costs from all residential development $4,910,540 $4,579,148 $8,453,328 $12,646,526 Area B: Annual Police Protection costs from all residential development $0 $331,414 $611,806 $915,287 Total Annual Police Protection costs from all residential development $4,910,540 $14,910,562 $9,065,134 $13,561,813 Costs of Fire Protection – Scenario 1 As previously stated, this analysis will consider two different scenarios for fire protection. Scenario 1 assumes that the Cathedral City Fire Department would serve the Sphere area at annexation. According to consultation with the Fire Chief, an additional fire station, fire engine, and nine fire fighters would be required to provide Fire Protection to the Sphere area. Costs associated with acquisition of the fire station and fire engine, as well as purchase of equipment to outfit the station, engine, and nine officers, would occur on a one-time basis. These costs are discussed in Section 2 – One Time Costs. Costs associated with personnel would be recurring, and are calculated on an annual basis. Based on fully burdened staffing rates provided in the Cathedral City Master Fee Schedule for fiscal year 2023/24, it is assumed that each fire fighter would have a fully burdened cost of approximately $243,360 per year. The Fire Chief also estimates that operations and maintenance of the additional facilities required to serve the Sphere area would cost $500,000 per year. Based on the annual cost for personnel as well as operations and maintenance, a per capita cost of $337.67 was used to calculate annual fire protection costs for Area A and Area B, as shown in Table 51 and Table 52.

2.B.a
Packet Pg. 52
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 44 Table 51 Area A: Costs of Fire Protection – Annual Scenario 1

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Total Annual Fire Protection costs from Existing Residential Development $2,690,240 $2,690,240 $2,690,240 $2,690,240 Total Annual Fire Protection costs from Future Residential Development $0 $1,620,149 $8,100,746 $16,201,492 Area A: Annual Fire Protection costs from all residential development $2,690,240 $4,310,389 $10,790,986 $18,891,732 Table 52 Area B: Costs of Fire Protection – Annual Scenario 1

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Total Annual Fire Protection costs from Existing Residential Development $0 $0 $0 $0 Total Annual Fire Protection costs from Future Residential Development $0 $117,258 $586,288 $1,172,577 Area B: Annual Fire Protection costs from all residential development $0 $117,258 $586,288 $1,172,577 As shown in Table 53, in Scenario 1, annual fire protection costs from Area A and Area B at buildout would cost the City $20,064,309 per year. Table 53 Area A and Area B: Total Costs of Fire Protection – Annual Scenario 1

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Area A: Annual Fire Protection costs from all residential development $2,690,240 $4,310,389 $10,790,986 $18,891,732 Area B: Annual Fire Protection costs from all residential development $0 $117,258 $586,288 $1,172,577 Total Annual Fire Protection costs from all residential development $2,690,240 $4,427,647 $11,377,274 $20,064,309

2.B.a
Packet Pg. 53
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 45 Costs of Fire Protection – Scenario 2 (CalFire) Scenario 2 for fire protection assumes that the City would contract with CalFire to provide fire protection to the Sphere area. As shown in Table 54, a per capita contract rate was calculated based on the average per capita rate paid by other cities in the Coachella Valley for CalFire contract services.

Based on the per capita contract rate of $264.49, Table 55 and Table 56 show the annual fire protection costs associated with buildout of Area A and Area B under Scenario 2. Table 55 Area A: Costs of Fire Protection – Annual Scenario 2 (CalFire)

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Total Annual Fire Protection costs from Existing Residential Development $2,107,192 $2,107,192 $2,107,192 $2,107,192 Total Annual Fire Protection costs from Future Residential Development $0 $1,269,019 $6,345,094 $12,690,188 Area A: Annual Fire Protection costs from all residential development $2,107,192 $3,376,211 $8,452,286 $14,797,380 Table 54 CalFire Contract: Average Per Capita Expense Cities in Coachella Valley City Annual Expenditure – Fire Contract Services City Population (2023) Per Capita Expense Rancho Mirage $6,401,135.76 1 17,012 $376.27 Palm Desert $12,900,824.00 2 50,615 $254.88 La Quinta $6,164,684.00 3 37,979 $162.32 Average per capita expenditure: $264.49 Note: The City of Indian Wells pays a fire contract rate of $3,887,302 per year and has a population of 4,774 residents. The City’s per capita rate was excluded from the area average because the City has an especially small population which may skew the proportional rate, and because the City’s budget only shows contract fees as a line item in the future budget, not as actual expenditure. 1 Actual expenditure in FY 2021/2022, from City of Rancho Mirage FY 2023/24 and 2024/25 budget, (accessed August 2023). 2 Actual expenditure in FY 2021, from City of Palm Desert FY 2022-2023 Budget Worksheet, https://stories.opengov.com/C8IP_M-cR/published/undefined (accessed August 2023). 3 Actual expenditure in FY 2020/2021, from City of La Quinta 2022/23 Adopted Budget https://www.laquintaca.gov/home/showpublisheddocument/47828/638070437142600000 (accessed August 2023).

2.B.a
Packet Pg. 54
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 46 Table 56 Area B: Costs of Fire Protection – Annual Scenario 2 (CalFire)

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Total Annual Fire Protection costs from Existing Residential Development $0 $0 $0 $0 Total Annual Fire Protection costs from Future Residential Development $0 $91,845 $459,224 $918,447 Area B: Annual Fire Protection costs from all residential development $0 $91,845 $459,224 $918,447 As shown in Table 57, below, contract services with CalFire for fire protection in Area A and Area B would cost the City a combined $15,715,827 per year at buildout. Table 57 Area A and Area B: Total Costs of Fire Protection – Annual Scenario 2 (CalFire)

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Area A: Annual Fire Protection costs from all residential development $2,107,192 $3,376,211 $8,452,286 $14,797,380 Area B: Annual Fire Protection costs from all residential development $0 $91,845 $459,224 $918,447 Total Annual Fire Protection costs from all residential development $2,107,192 $3,468,055 $8,911,509 $15,715,827 Costs of Roadway Maintenance The costs associated with roadway maintenance were calculated based on existing road miles in the Sphere area and anticipated road miles as development occurs. Both existing and future roadways will require annual maintenance. Area A is assumed to have 34.39 miles of existing public paved roads, including Varner Road (west of Cook Street), Ramon Road, Rio del Sol, Monterey Avenue/Sierra del Sol, and Cook Street. Area B is assumed to have 2.34 miles of existing public paved roads, comprised of Varner Road (east of Cook Street), Chase School Road, and Shadow Valley Drive.

2.B.a
Packet Pg. 55
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 47 Upon annexation, the City will also be responsible for the reconstruction of sub-standard roadways in the Sphere area, adjacent to properties already developed. The paving and widening of these roadways would be a one-time cost for the City. One-time costs are described in greater detail in Section 2 – One Time Costs. Once built out, the City will be responsible for maintaining these roadways. Based on the proportion of Sphere lands within Area A and Area B, and a public paved road miles per city acre based on the existing conditions in Cathedral City, it is estimated that buildout of Area A will result in an additional 78.43 miles of paved public roads, and Area B will result in an addition 6.82 miles of paved public roads. According to the City Engineer, the cost of roadway maintenance is approximately $6,039 per road mile per year. Based on this annual cost per mile, Table 58 and Table 59 show the annual cost of maintaining existing and future roadways in Area A and Area B, respectively. Table 58 Area A - Costs of Roadway Maintenance

Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Existing Roadway Data No. of existing public paved road miles 34.39 34.39 34.39 34.39 Future Roadway Projections No. of future public paved road miles 0.00 8.53 34.10 42.63 Factor of public paved road miles per city acre 97.35 97.35 97.35 97.35 No. of future public paved road miles at phase buildout 0.00 8.53 42.63 85.25 Proportion of future public paved road miles in Area A at phase buildout 0.00 7.84 39.22 78.43 Cost of Road Maintenance - Existing and Future Roads Total public paved road miles 34.39 42.23 73.61 112.82 Annual Cost of Roadway Maintenance (per road mile) 2 $6,039.00 $6,039.00 $6,039.00 $6,039.00 Annual Costs of street maintenance & resurfacing for all roads $207,681.21 $255,045.09 $444,500.60 $681,319.98 Area A Annual Cost of Roadway Maintenance at Phase Buildout $207,681 $255,045 $444,501 $681,320

2.B.a
Packet Pg. 56
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 48 Table 59 Area B - Costs of Roadway Maintenance

Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Existing Roadway Data No. of existing public paved road miles 2.34 2.34 2.34 2.34 Future Roadway Projections No. of future public paved road miles 0.00 8.53 34.10 42.63 Factor of public paved road miles per city acre 97.35 97.35 97.35 97.35 No. of future public paved road miles at phase buildout 0.00 8.53 42.63 85.25 Proportion of future public paved road miles in Area B at phase buildout 0.00 0.68 3.41 6.82 Cost of Road Maintenance - Existing and Future Roads Total public paved road miles 2.34 3.02 5.75 9.16 Annual Cost of Roadway Maintenance (per road mile) $6,039.00 $6,039.00 $6,039.00 $6,039.00 Annual Costs of street maintenance & resurfacing for all roads $14,131.26 $18,249.86 $34,724.25 $55,317.24 Area B: Annual Cost of Roadway Maintenance at Phase Buildout $14,131 $18,250 $34,724 $55,317 Buildout of Area A and Area B would result in total roadway maintenance costs of $736,367 per year, as shown in Table 60. Table 60 Area A and Area B: Costs of Roadway Maintenance

Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Area A Annual Cost of Roadway Maintenance at Phase Buildout $207,681 $255,045 $444,501 $681,320 Area B: Annual Cost of Roadway Maintenance at Phase Buildout $14,131 $18,250 $34,724 $55,317 Total Annual Cost of Roadway Maintenance at Phase Buildout $221,812 $273,295 $479,225 $736,367

2.B.a
Packet Pg. 57
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 49 2. One-Time Costs Police Equipment Costs As previously stated, in addition to increased personnel, the City’s Police Department would need additional patrol cars to serve the Sphere area, as well as equipment to outfit the patrol cars and personnel. According to the information from the Police Department, as provided in Appendix B, it is expected that 22 marked police vehicles, 3 unmarked police vehicles, 2 community support officer (CSO) vehicles, and 1 evidence utility vehicle would be needed by full build out of the Sphere area. An additional $4,000 of safety equipment would be required per officer. Table 61 provides the unit cost for the required equipment. It is assumed that 9 marked police vehicles would be required immediately upon annexation, and the an additional 5 marked and 2 unmarked police vehicles would be required by Phase 3 of development in the Sphere area. Based on the cost of the patrol cars and the equipment required for personnel and the patrol cars, a per capita cost was determined. This per capita cost would be $96.46 immediately upon annexation, and $16.82 per capita by full buildout. Using these per capita rates for equipment costs, Table 62 and Table 63 show the one-time costs associated with police protection for Area A and Area B, respectively. Table 62 Area A: Police Equipment Costs

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Total One-Time Police Protection costs from Existing Residential Development $670,000 n/a n/a n/a Total One-Time Police Protection costs from Future Residential Development $0 $403,496 $423,362 $707,770 Area A: One-Time Police Protection costs from all residential development $670,000 $403,496 $423,362 $707,770 Table 61 Police Equipment Costs Item Quantity by Buildout Cost per Unit Marked police vehicles 22 $70,000 Unmarked police vehicles 3 $40,000 CSO vehicles 2 $45,000 Evidence utility vehicles 1 $45,000 Equipment for officers and sergeants 24 $4,000 Source: Cathedral City Police Department, Chief Crum, July 2023.

2.B.a
Packet Pg. 58
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 50 Table 63 Area B: Police Equipment Costs

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Total One-Time Police Protection costs from Existing Residential Development $0 n/a n/a n/a Total One-Time Police Protection costs from Future Residential Development $0 $29,203 $30,641 $51,225 Area B: One-Time Police Protection costs from all residential development $0 $29,203 $30,641 $51,225 Table 64, below, shows the estimated combined one-time equipment cost, at each phase of development, for the City to adequately provide police protection to Area A and Area B. Table 64 Area A and Area B: Total Police Equipment Costs (One-Time)

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Area A: One-Time Police Protection costs from all residential development $670,000 $403,496 $423,362 $707,770 Area B: One-Time Police Protection costs from all residential development $0 $29,203 $30,641 $51,225 Total One-Time Police Protection costs from all residential development $670,000 $432,698 $454,003 $758,994 Fire Station and Equipment Costs In Scenario 1, fire protection would be provided to the Sphere area by the Cathedral City Fire Department. In order to serve existing and future development in the area, the City would need an additional fire station immediately upon annexation. It is assumed that the City would acquire the existing County Fire Station No. 35, which is estimated to cost $9,544,870. As outlined in Table 62, additional equipment requirements include one fire engine (estimated to cost $1,500,000), uniforms and personal protective equipment for nine fire fighters, and various equipment to outfit the fire station and fire engine. The one-time cost associated with facilities and equipment needed to provide fire protection to the Sphere area would total an estimated $11,514,359.

2.B.a
Packet Pg. 59
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 51 It should be noted that the one-time facilities and equipment costs shown in Table 65 would be required only for fire protection Scenario 1. It is assumed that in Scenario 2, the CalFire contract would cover costs associated with facilities and equipment. The $11,514,359 in facilities and equipment would be required immediately upon annexation of the Sphere. For the purpose of analysis, the division of costs between Area A and Area B was calculated based on a per capita rate. However, because Area B has no existing residents, the entire share of fire facilities and equipment costs was applied to Area A, as shown in Table 66, below. However, it should be noted that if the City were to only annex Area B, some costs associated with fire facilities and equipment would likely still be incurred.

Table 65 Fire Department Equipment Costs Item Quantity Cost Fire Station (No.35) 1 $9,544,870 Fire Engine 1 $1,500,000 Cardiac Monitor/Defibrillator 1 $33,000 Auto Pulse Device 1 $16,000 Extrication Set 1 $25,000 Gas Detectors Monitor 1 $1,500 Thermal Imaging Camera 1 $10,000 Extractor for Decontaminating Turn Outs 1 $15,000 Self-Contained Breathing Apparatus (SCBA) 3 $48,000 ($16,000 ea.) SCBA Compressor/Fill Station 1 $75,000 Engine Equip. Set-Up/Medications 1 $7,500 ePCR tablets 1 $4,250 Stair Chair 1 $3,250 Personal Protective Equipment (primary and secondary) 18 $73,125 ($4,062.50 ea.) Uniforms/Footwear 9 $11,574 ($1,286 ea.) Washer/Dry (decontaminating uniforms) 1 $1,200 iPad, Mount, Cover, and Case for mapping 1 $1,750 Positive Pressure Fan 1 $3,540 Hire Hose, Nozzle, Adapters 1 $139,800 Total $11,514,359 Source: Cathedral City Fire Department, July 2023.

2.B.a
Packet Pg. 60
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 52 Table 66 Area A and Area B: Total Fire Equipment Costs (applies to fire protection Scenario 1 only)

Buildout Phase
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Area A: One-Time Fire Protection costs from all residential development $11,514,359 $0 $0 $0 Area B: One-Time Fire Protection costs from all residential development $0 $0 $0 $0 Total One-Time Fire Protection costs from all residential development $11,514,359 $0 $0 $0 Road Construction Costs Within the Sphere of Influence there are approximately 16 miles of unpaved roads. In order to calculate the costs associated with these improvements, the City’s current per square foot factor for road construction, provided by the Public Works Department, was utilized. After incorporation, the City will be responsible for constructing these roads which would cost the City up to $30,722,651. In addition, the City would also be responsible for maintaining and upgrading 47 miles of paved roads which currently are substandard (ranging from missing sidewalks to under-sized paved widths and roadway widening to comply with anticipated build out requirements) which would cost the City an additional $22,615,704 Although these costs would not be incurred immediately upon annexation, a total of $53,338,355 in capital improvement projects to improve and widening existing roads is anticipated. Table 67 Roadway Improvement Costs Road’s Current Condition Total Length (miles) Description Estimated Cost Fully paved 34
These roads are currently fully paved. Sidewalks are not provided along some portions on these roads. Approximately 6.69. miles of these roads along Ramon Road, 30th Avenue, Cook Street, and Rio Del Sol Road will need to be upgraded to Secondary Highway (4-lane undivided; 88 feet wide). $6,537,568

2.B.a
Packet Pg. 61
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 53 Table 67 Roadway Improvement Costs Road’s Current Condition Total Length (miles) Description Estimated Cost Partially paved 2 These roads are generally substandard and will need to be improved/widened to City local street standards. Of the total 13 miles of substandard roads, approximately 0.37 miles (along 31st Avenue) will need to be upgraded and widened to Secondary Highway (4-lane undivided; 88 feet wide). The balance will require widening to City local road standards. $14,329,554
Substandard 11 $1,748,581
Unpaved 16
Approximately 16 miles of roads in the SOI are unpaved and would require full improvements to Local Streets (2-lanes; 60 feet wide). These unpaved roads also include portions of 28th Avenue (0.65 miles), 30th Avenue (1.38 miles), and 31st Avenue (0.14 miles), which will need to be upgraded to Secondary Highway (4-lane undivided; 88 feet wide). $30,722,651
Grand Total Cost $53,338,355 Source: Cathedral City Department of Public Works, Director of Engineering / Public Works, John Corella (July 2023). The majority of the unpaved roads are surrounded by undeveloped lands where future development will be responsible for its share of roadway improvements. Therefore, the City would recover some of the widening expenses from future developments. However, the rebuilding of existing streets, the build out of sub-standard streets where development occurs, and the on-going maintenance of streets will be the responsibility of the City. The City has established transportation impact fees through its Development Impact Fee schedule. These are assessed on a per unit basis for single and multi-family residential development, and per square foot for commercial and industrial development. These fees would be applied to new development within the Sphere of Influence after incorporation. Because of the added territory involved in the Sphere of Influence, the Development Impact Fee study would need to be updated to encompass the added territory, should incorporation occur. Gas taxes and Local Transportation Funds are also used for the construction and maintenance of streets and highways. These revenues would increase proportionally should the Sphere of Influence be incorporated. Given that approximately 92% of the acreage of the Sphere area is in Area A, it is assumed that an equivalent proportion of the roadway improvement costs would be required for substandard and unpaved roadways in this area. Likewise, it is assumed that 8% of the roadway improvement costs would go to Area B, which comprises 8% of the Sphere area. Using this breakdown, the City would need to spend approximately $49,071,286.60 to improve roadways in Area A and $4,267,068.40 to improve roadways in Area B.

2.B.a
Packet Pg. 62
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 54 V. COST/REVENUE ANALYSIS Based on the assumptions described above, the following sections will analyze the costs and revenues associated with incorporation of the Sphere. Costs and revenues are summarized for twelve development scenarios, based on the three variables explored in this fiscal analysis: • Incorporation of Area A (the Sphere west of Cook Street), Area B (the Sphere east of Cook Street), or Area A and B combined; • Cannabis tax revenues: Total City revenues as calculated with or without revenues from cannabis tax; and • Fire protection costs: calculated as an extension of City services or as a contract with the County after annexation. It should be noted that all values are in Year 2023 dollars and are subject to rounding. A. Area A Cost/Revenue Summaries Costs and Revenues: Area A, Fire Protection Scenario 1, with Cannabis Tax Table 68 shows the costs and revenues associated with the incorporation of Area A, including cannabis tax, using costs resulting from fire protection Scenario 1 (extension of City service). Table 68 Area A Cost and Revenue Summary Table (Fire Protection Scenario 1; with Cannabis Tax) Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed)
Phase 4 (Build Out)
ANNUAL REVENUES Annual General Fund Revenue at Phase Buildout $3,671,507 $7,272,031 $23,066,893 $41,698,286 Annual Restricted Fund Revenue at Phase Buildout $211,621 $339,250 $849,766 $1,487,910 Annual Other Fund Revenue at Phase Buildout $593,204 $950,450 $2,379,436 $4,165,667 Total Potential Annual Revenues at Phase Buildout $4,476,331 $8,561,731 $26,296,094 $47,351,863

2.B.a
Packet Pg. 63
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 55 Table 68 Area A Cost and Revenue Summary Table (Fire Protection Scenario 1; with Cannabis Tax) Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed)
Phase 4 (Build Out)
ANNUAL COSTS Costs of General Government $2,067,118 $3,312,004 $8,291,547 $14,515,977 Costs of Public Works $608,121 $974,351 $2,439,272 $4,270,422 Costs of Police Protection $4,910,540 $4,579,148 $8,453,328 $12,646,526 Costs of Fire Protection $2,690,240 $4,310,389 $10,790,986 $18,891,732 Costs of Roadway Maintenance $207,681 $255,045 $444,501 $681,320 Total Potential Annual Costs at Phase Buildout $10,483,700 $13,430,937 $30,419,633 $51,005,977 Potential Cashflow at Phase Buildout -$6,007,369 -$4,869,206 -$4,123,539 -$3,654,113 As shown in the table above, this development scenario for Area A would result in negative cash flow through full build out. It would result in a net loss of $3,654,113 for the City at build out. Table 69 shows the one-time revenues and costs that would be generated by incorporation of Area A in this development scenario. Table 69 Area A One-Time Revenues and Costs (Fire Protection Scenario 1; with Cannabis Tax) One-time revenues: CITY DEVELOPER IMPACT FEE REVENUES Total Development Impact Fees $0 $27,963,109 $111,852,437 $139,815,546 Art in Public Places Fees $0 $3,627,237 $14,508,948 $18,136,185 Total Potential Developer Impact Fee Revenues at Phase Buildout $0 $31,590,346 $126,361,385 $157,951,731 One-time costs: PUBLIC SAFETY FACILITIES/EQUIPMENT Police Equipment Costs $670,000 $403,496 $423,362 $707,770 Fire Protection Equipment/Facilities $11,514,359 $0 $0 $0 Total Potential Public Safety Facilities/Equipment Costs at Phase Buildout $12,184,359 $403,496 $423,362 $707,770 As shown in the above table, the City would collect a total of $315,903,462 in DIFs and Art in Public Places Fees over the course of development of Area A. Public safety facilities and equipment would cost the City $13,718,986 over the course of development.

2.B.a
Packet Pg. 64
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 56 Costs and Revenues: Area A, Fire Protection Scenario 1, no Cannabis Tax Table 70 shows the costs and revenues associated with the incorporation of Area A, without cannabis tax, using costs resulting from fire protection Scenario 1 (extension of City service). Table 70 Cost and Revenue Summary Table (Fire Protection Scenario 1; no Cannabis Tax) Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed)
Phase 4 (Build Out)
ANNUAL REVENUES Annual General Fund Revenue at Phase Buildout $3,671,507 $6,491,458 $18,188,312 $31,941,124 Annual Restricted Fund Revenue at Phase Buildout $211,621 $339,250 $849,766 $1,487,910 Annual Other Fund Revenue at Phase Buildout $593,204 $950,450 $2,379,436 $4,165,667 Total Potential Annual Revenues at Phase Buildout $4,476,331 $7,781,158 $21,417,513 $37,594,702 ANNUAL COSTS Costs of General Government $2,067,118 $3,312,004 $8,291,547 $14,515,977 Costs of Public Works $608,121 $974,351 $2,439,272 $4,270,422 Costs of Police Protection $4,910,540 $4,579,148 $8,453,328 $12,646,526 Costs of Fire Protection $2,690,240 $4,310,389 $10,790,986 $18,891,732 Costs of Roadway Maintenance $207,681 $255,045 $444,501 $681,320 Total Potential Annual Costs at Phase Buildout $10,483,700 $13,430,937 $30,419,633 $51,005,977 Potential Cashflow at Phase Buildout -$6,007,369 -$5,649,779 -$9,002,120 -$13,411,275 As shown in the tables above, this development scenario for Area A would result in negative cash flow through full build out without substantial cannabis tax generation. The determinant in this scenario is the generation of cannabis tax, which provides significant annual revenues for the City if it occurs at the levels assumed. This development scenario for Area A would result in a net $13,411,275 loss annually for the City. Table 71 shows the one-time revenues and costs that would be generated by incorporation of Area A in this development scenario.

2.B.a
Packet Pg. 65
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 57 Table 71 Area A One-Time Revenues and Costs (Fire Protection Scenario 1; no Cannabis Tax) One-time revenues: CITY DEVELOPER IMPACT FEE REVENUES Total Development Impact Fees $0 $27,963,109 $111,852,437 $139,815,546 Art in Public Places Fees $0 $3,627,237 $14,508,948 $18,136,185 Total Potential Developer Impact Fee Revenues at Phase Buildout $0 $31,590,346 $126,361,385 $157,951,731 One-time costs: PUBLIC SAFETY FACILITIES/EQUIPMENT Police Equipment Costs $670,000 $403,496 $423,362 $707,770 Fire Protection Equipment/Facilities $11,514,359 $0 $0 $0 Total Potential Public Safety Facilities/Equipment Costs at Phase Buildout $12,184,359 $403,496 $423,362 $707,770 As shown in the above table, the City would collect a total of $315,903,462 in DIFs and Art in Public Places Fees over the course of development of Area A. Public safety facilities and equipment would cost the City $13,718,986. Costs and Revenues: Area A, Fire Protection Scenario 2, with Cannabis Tax Table 72 shows the costs and revenues associated with the incorporation of Area A, with cannabis tax, using costs resulting from fire protection Scenario 2 (contract). Table 72 Cost and Revenue Summary Table (Fire Protection Scenario 2; with Cannabis Tax) Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed)
Phase 4 (Build Out)
ANNUAL REVENUES Annual General Fund Revenue at Phase Buildout $3,671,507 $7,272,031 $23,066,893 $41,698,286 Annual Restricted Fund Revenue at Phase Buildout $211,621 $339,250 $849,766 $1,487,910 Total Potential Annual Revenues at Phase Buildout $3,883,128 $7,611,281 $23,916,658 $43,186,196 ANNUAL COSTS Costs of General Government $2,067,118 $3,312,004 $8,291,547 $14,515,977 Costs of Public Works $608,121 $974,351 $2,439,272 $4,270,422 Costs of Police Protection $4,910,540 $4,579,148 $8,453,328 $12,646,526

2.B.a
Packet Pg. 66
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 58 Table 72 Cost and Revenue Summary Table (Fire Protection Scenario 2; with Cannabis Tax) Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed)
Phase 4 (Build Out)
Costs of Fire Protection $2,107,192 $3,376,211 $8,452,286 $14,797,380 Costs of Roadway Maintenance $207,681 $255,045 $444,501 $681,320 Total Potential Annual Costs at Phase Buildout $9,900,652 $12,496,759 $28,080,933 $46,911,625 Potential Cashflow at Phase Buildout -$6,017,524 -$4,885,478 -$4,164,275 -$3,725,429 As shown in the table above, this development scenario for Area A would result in negative cash flow through 100% build out. It would result in a net loss of $3,725,429 annually for the City. Table 73 shows the one-time revenues and costs that would be generated by incorporation of Area A in this development scenario. Table 73 Area A One-Time Revenues and Costs (Fire Protection Scenario 2; with Cannabis Tax) One-time revenues: CITY DEVELOPER IMPACT FEE REVENUES Total Development Impact Fees $0 $27,963,109 $111,852,437 $139,815,546 Art in Public Places Fees $0 $3,627,237 $14,508,948 $18,136,185 Total Potential Developer Impact Fee Revenues at Phase Buildout $0 $31,590,346 $126,361,385 $157,951,731 One-time costs: PUBLIC SAFETY FACILITIES/EQUIPMENT Police Equipment Costs $670,000 $403,496 $423,362 $707,770 Total Potential Public Safety Facilities/Equipment Costs at Phase Buildout $670,000 $403,496 $423,362 $707,770 As shown in the above table, the City would collect a total of $315,903,462 in DIFs and Art in Public Places Fees over the course of development of Area A. Police equipment would cost the City $2,204,627. Under fire protection Scenario 2, there would be no one-time costs associated with fire facilities or equipment.

2.B.a
Packet Pg. 67
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 59 Costs and Revenues: Area A, Fire Protection Scenario 2, no Cannabis Tax Table 74 shows the costs and revenues associated with the incorporation of Area A, without cannabis tax, using costs resulting from fire protection Scenario 2 (contract). Table 74 Cost and Revenue Summary Table (Fire Protection Scenario 2; without Cannabis Tax) Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed)
Phase 4 (Build Out)
ANNUAL REVENUES Annual General Fund Revenue at Phase Buildout $3,671,507 $6,491,458 $18,188,312 $31,941,124 Annual Restricted Fund Revenue at Phase Buildout $211,621 $339,250 $849,766 $1,487,910 Total Potential Annual Revenues at Phase Buildout $3,883,128 $6,830,708 $19,038,078 $33,429,034 ANNUAL COSTS Costs of General Government $2,067,118 $3,312,004 $8,291,547 $14,515,977 Costs of Public Works $608,121 $974,351 $2,439,272 $4,270,422 Costs of Police Protection $4,910,540 $4,579,148 $8,453,328 $12,646,526 Costs of Fire Protection $2,107,192 $3,376,211 $8,452,286 $14,797,380 Costs of Roadway Maintenance $207,681 $255,045 $444,501 $681,320 Total Potential Annual Costs at Phase Buildout $9,900,652 $12,496,759 $28,080,933 $46,911,625 Potential Cashflow at Phase Buildout -$6,017,524 -$5,666,051 -$9,042,856 -$13,482,590 As shown in the table above, this development scenario for Area A would result in negative cash flow even through buildout. This development scenario for Area A would result in a net loss of $13,482,590 annually for the City. Table 75 shows the one-time revenues and costs that would be generated by incorporation of Area A in this development scenario.

2.B.a
Packet Pg. 68
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 60 Table 75 Area A One-Time Revenues and Costs (Fire Protection Scenario 2; no Cannabis Tax) One-time revenues: CITY DEVELOPER IMPACT FEE REVENUES Total Development Impact Fees $0 $27,963,109 $111,852,437 $139,815,546 Art in Public Places Fees $0 $3,627,237 $14,508,948 $18,136,185 Total Potential Developer Impact Fee Revenues at Phase Buildout $0 $31,590,346 $126,361,385 $157,951,731 One-time costs: PUBLIC SAFETY FACILITIES/EQUIPMENT Police Equipment Costs $670,000 $403,496 $423,362 $707,770 Total Potential Public Safety Facilities/Equipment Costs at Phase Buildout $670,000 $403,496 $423,362 $707,770 As shown in the above table, the City would collect a total of $315,903,462 in DIFs and Art in Public Places Fees over the course of development of Area A. Police equipment would cost the City $2,204,627. Under fire protection Scenario 2, there would be no one-time costs associated with fire facilities or equipment. B. Area B Cost/Revenue Summaries Costs and Revenues: Area B, Fire Protection Scenario 1, with Cannabis Tax Table 76 shows the costs and revenues associated with the incorporation of Area B, including cannabis tax, using costs resulting from fire protection Scenario 1 (extension of City service). Table 76 Area B – Cost and Revenue Summary Table (Fire Protection Scenario 1; with Cannabis Tax) Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed)
Phase 4 (Build Out)
ANNUAL REVENUES Annual General Fund Revenue at Phase Buildout $49,549 $376,391 $5,359,623 $6,960,224 Annual Restricted Fund Revenue at Phase Buildout $0 $9,437 $47,183 $94,367 Annual Other Fund Revenue at Phase Buildout $0 $25,856 $129,278 $258,556

2.B.a
Packet Pg. 69
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 61 Table 76 Area B – Cost and Revenue Summary Table (Fire Protection Scenario 1; with Cannabis Tax) Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed)
Phase 4 (Build Out)
Total Potential Annual Revenues at Phase Buildout $49,549 $411,683 $5,536,084 $7,313,146 ANNUAL COSTS Costs of General Government $0 $90,098 $450,490 $900,981 Costs of Public Works $0 $26,506 $132,529 $265,058 Costs of Police Protection $0 $331,414 $611,806 $915,287 Costs of Fire Protection $0 $117,258 $586,288 $1,172,577 Costs of Roadway Maintenance $14,131 $18,250 $34,724 $55,317 Total Potential Annual Costs at Phase Buildout $14,131 $583,525 $1,815,838 $3,309,219 Potential Cashflow at Phase Buildout $35,418 -$171,842 $3,720,247 $4,003,927 As shown in the table above, this development scenario for Area B would result in a positive cash flow immediately upon annexation, though costs would exceed revenues at Phase 2. However, in practice, the City would likely incur more costs than shown in Table 76 at Phase 1. For analysis purposes, annual costs were calculated on a per capita basis. Because there are no existing residents in Area B, no costs associated with general government, public works, police protection, fire protection, or roadway maintenance were assigned. However, it is probable that the City would provide some of these services to the existing commercial land uses in Area B immediately at annexation. At full buildout, this development scenario for Area B would result in an estimated $4,003,927 in net annual revenue for the City. Table 77 shows the one-time revenues and costs that would be generated by incorporation of Area B in this development scenario. Table 77 Area B – One-Time Revenues and Costs (Fire Protection Scenario 1; with Cannabis Tax) One-time revenues: CITY DEVELOPER IMPACT FEE REVENUES Total Development Impact Fees $0 $64,097,080 $256,388,320 $320,485,400 Art in Public Places Fees $0 $287,854 $1,151,415 $1,439,268 Total Potential Developer Impact Fee Revenues at Phase Buildout $0 $64,384,934 $257,539,735 $321,924,669

2.B.a
Packet Pg. 70
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 62 Table 77 Area B – One-Time Revenues and Costs (Fire Protection Scenario 1; with Cannabis Tax) One-time costs: PUBLIC SAFETY FACILITIES/EQUIPMENT Police Equipment Costs $0 $29,203 $30,641 $51,225 Fire Protection Equipment/Facilities $0 $0 $0 $0 Total Potential Public Safety Facilities/Equipment Costs at Phase Buildout $0 $29,203 $30,641 $51,225 As shown in the above table, the City would collect a total of $643,849,337 in DIFs and Art in Public Places Fees over the course of development of Area B. Public safety facilities and equipment would cost the City an estimated $111,068, as shown in Table 77. This number likely underrepresents the one-time costs associated with public safety, for the reasons described above. Because costs were calculated on a per capita basis, and Area B has no existing residents, this analysis calculated no costs immediately at annexation. However, particularly given that all fire facilities and equipment costs are expected to be paid up-front, it is likely that Area B would actually incur some one-time costs for the City. Costs and Revenues: Area B, Fire Protection Scenario 1, no Cannabis Tax Table 78 shows the costs and revenues associated with the incorporation of Area B, excluding revenues from cannabis tax, using costs resulting from fire protection Scenario 1 (extension of City service).

2.B.a
Packet Pg. 71
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 63 Table 78 Area B – Cost and Revenue Summary Table (Fire Protection Scenario 1; without Cannabis Tax) Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed)
Phase 4 (Build Out)
ANNUAL REVENUES Annual General Fund Revenue at Phase Buildout $49,549 $326,021 $5,044,807 $6,330,591 Annual Restricted Fund Revenue at Phase Buildout $0 $9,437 $47,183 $94,367 Annual Other Fund Revenue at Phase Buildout $0 $25,856 $129,278 $258,556 Total Potential Annual Revenues at Phase Buildout $49,549 $361,313 $5,221,268 $6,683,513 ANNUAL COSTS Costs of General Government $0 $90,098 $450,490 $900,981 Costs of Public Works $0 $26,506 $132,529 $265,058 Costs of Police Protection $0 $331,414 $611,806 $915,287 Costs of Fire Protection $0 $117,258 $586,288 $1,172,577 Costs of Roadway Maintenance $14,131 $18,250 $34,724 $55,317 Total Potential Annual Costs at Phase Buildout $14,131 $583,525 $1,815,838 $3,309,219 Potential Cashflow at Phase Buildout $35,418 -$222,213 $3,405,430 $3,374,294 As shown in the table above, this development scenario for Area B would result in a positive cash flow immediately upon annexation. Cashflow would be negative during Phase 2, but would be positive by Phase 3 of development. As previously stated, the City would likely incur more costs than shown in Table 78 at Phase 1. Annual costs were calculated on a per capita basis, for analysis purposes, and because there are no existing residents in Area B, no costs associated with general government, public works, police protection, fire protection, or roadway maintenance were assigned. However, it is probable that the City would provide some of these services to the existing commercial land uses in Area B immediately at annexation. At full buildout, this development scenario for Area B would result in an estimated $3,374,294 in net annual revenue for the City. Table 79 shows the one-time revenues and costs that would be generated by incorporation of Area B in this development scenario.

2.B.a
Packet Pg. 72
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 64 Table 79 Area B – One-Time Revenues and Costs (Fire Protection Scenario 1; without Cannabis Tax) One-time revenues: CITY DEVELOPER IMPACT FEE REVENUES Total Development Impact Fees $0 $64,097,080 $256,388,320 $320,485,400 Art in Public Places Fees $0 $287,854 $1,151,415 $1,439,268 Total Potential Developer Impact Fee Revenues at Phase Buildout $0 $64,384,934 $257,539,735 $321,924,669 One-time costs: PUBLIC SAFETY FACILITIES/EQUIPMENT Police Equipment Costs $0 $29,203 $30,641 $51,225 Fire Protection Equipment/Facilities $0 $0 $0 $0 Total Potential Public Safety Facilities/Equipment Costs at Phase Buildout $0 $29,203 $30,641 $51,225 As shown in the above table, the City would collect a total of $643,849,337 in DIFs and Art in Public Places Fees over the course of development of Area B. Public safety facilities and equipment would cost the City an estimated $111,068, as shown in Table 79. This number likely underrepresents the one-time costs associated with public safety, for the reasons described above. However, particularly given that all fire facilities and equipment costs are expected to be paid up-front, it is likely that Area B would actually incur some one-time costs for the City. Costs and Revenues: Area B, Fire Protection Scenario 2, with Cannabis Tax Table 80 shows the costs and revenues associated with the incorporation of Area B, including revenues from cannabis tax, using costs resulting from fire protection Scenario 2 (contract services).

2.B.a
Packet Pg. 73
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 65 Table 80 Area B – Cost and Revenue Summary Table (Fire Protection Scenario 2; with Cannabis Tax) Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed)
Phase 4 (Build Out)
ANNUAL REVENUES Annual General Fund Revenue at Phase Buildout $49,549 $376,391 $5,359,623 $6,960,224 Annual Restricted Fund Revenue at Phase Buildout $0 $9,437 $47,183 $94,367 Total Potential Annual Revenues at Phase Buildout $49,549 $385,828 $5,406,807 $7,054,591 ANNUAL COSTS Costs of General Government $0 $90,098 $450,490 $900,981 Costs of Public Works $0 $26,506 $132,529 $265,058 Costs of Police Protection $0 $331,414 $611,806 $915,287 Costs of Fire Protection $0 $91,845 $459,224 $918,447 Costs of Roadway Maintenance $14,131 $18,250 $34,724 $55,317 Total Potential Annual Costs at Phase Buildout $14,131 $558,112 $1,688,773 $3,055,090 Potential Cashflow at Phase Buildout $35,418 -$172,285 $3,718,033 $3,999,501 As shown in the table above, this development scenario for Area B would result in a positive cash flow immediately upon annexation. While this costs would exceed revenues during at 10% development, the cashflow would be positive by the 50% development phase. However, as previously stated, the method of calculating costs on a per capita basis suggests that Area B would not incur any costs associated with government, public works, or public safety upon annexation. It is probable that actual Phase 1 costs would be higher than represented in the above table. At full buildout, this development scenario for Area B would result in an estimated $3,999,501 in net annual revenue for the City. Table 81 shows the one-time revenues and costs that would be generated by incorporation of Area B in this development scenario.

2.B.a
Packet Pg. 74
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 66 Table 81 Area B – One-Time Revenues and Costs (Fire Protection Scenario 2; with Cannabis Tax) One-time revenues: CITY DEVELOPER IMPACT FEE REVENUES Total Development Impact Fees $0 $64,097,080 $256,388,320 $320,485,400 Art in Public Places Fees $0 $287,854 $1,151,415 $1,439,268 Total Potential Developer Impact Fee Revenues at Phase Buildout $0 $64,384,934 $257,539,735 $321,924,669 One-time costs: PUBLIC SAFETY FACILITIES/EQUIPMENT Police Equipment Costs $0 $29,203 $30,641 $51,225 Total Potential Public Safety Facilities/Equipment Costs at Phase Buildout $0 $29,203 $30,641 $51,225 As shown in the above table, the City would collect a total of $643,849,337 in DIFs and Art in Public Places Fees over the course of development of Area B. Public safety facilities and equipment would cost the City an estimated $111,068, as shown in Table 81. Costs and Revenues: Area B, Fire Protection Scenario 2, no Cannabis Tax Table 79 shows the costs and revenues associated with the incorporation of Area B, excluding revenues from cannabis tax, using costs resulting from fire protection Scenario 2 (contract services). Table 82 Area B – Cost and Revenue Summary Table (Fire Protection Scenario 2; without Cannabis Tax) Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed)
Phase 4 (Build Out)
ANNUAL REVENUES Annual General Fund Revenue at Phase Buildout $49,549 $326,021 $5,044,807 $6,330,591 Annual Restricted Fund Revenue at Phase Buildout $0 $9,437 $47,183 $94,367 Total Potential Annual Revenues at Phase Buildout $49,549 $335,457 $5,091,990 $6,424,957 ANNUAL COSTS Costs of General Government $0 $90,098 $450,490 $900,981 Costs of Public Works $0 $26,506 $132,529 $265,058 Costs of Police Protection $0 $331,414 $611,806 $915,287

2.B.a
Packet Pg. 75
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 67 Table 82 Area B – Cost and Revenue Summary Table (Fire Protection Scenario 2; without Cannabis Tax) Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed)
Phase 4 (Build Out)
Costs of Fire Protection $0 $91,845 $459,224 $918,447 Costs of Roadway Maintenance $14,131 $18,250 $34,724 $55,317 Total Potential Annual Costs at Phase Buildout $14,131 $558,112 $1,688,773 $3,055,090 Potential Cashflow at Phase Buildout $35,418 -$222,655 $3,403,217 $3,369,867 As shown in the table above, this development scenario for Area B would result in a positive cash flow immediately upon annexation, followed by negative cash flow at Phase 2 of development, and positive cash flow beginning with Phase 3. There would likely be more costs associated with Area B immediately upon annexation than shown in Table 82, as previously stated. At full buildout, this development scenario for Area B would result in an estimated $3,369,867 in net annual revenue for the City. Table 83 shows the one-time revenues and costs that would be generated by incorporation of Area B in this development scenario. Table 83 Area B – One-Time Revenues and Costs (Fire Protection Scenario 2; without Cannabis Tax) One-time revenues: CITY DEVELOPER IMPACT FEE REVENUES Total Development Impact Fees $0 $64,097,080 $256,388,320 $320,485,400 Art in Public Places Fees $0 $287,854 $1,151,415 $1,439,268 Total Potential Developer Impact Fee Revenues at Phase Buildout $0 $64,384,934 $257,539,735 $321,924,669 One-time costs: PUBLIC SAFETY FACILITIES/EQUIPMENT Police Equipment Costs $0 $29,203 $30,641 $51,225 Total Potential Public Safety Facilities/Equipment Costs at Phase Buildout $0 $29,203 $30,641 $51,225 As shown in the above table, the City would collect a total of $643,849,337 in DIFs and Art in Public Places Fees over the course of development of Area B. Public safety facilities and equipment would cost the City an estimated $111,068, as shown in Table 83.

2.B.a
Packet Pg. 76
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 68 C. Area A and Area B Combined: Cost/Revenue Summaries Costs and Revenues: Area A and Area B, Fire Protection Scenario 1, with Cannabis Tax Table 84 shows the costs and revenues associated with the incorporation of the whole Sphere area, including cannabis tax, using costs resulting from fire protection Scenario 1 (extension of City service). Table 84 Area A and B: Cost and Revenue Summary Table (Fire Protection Scenario 1; with Cannabis Tax) Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed)
Phase 4 (Build Out)
ANNUAL REVENUES Annual General Fund Revenue at Phase Buildout $3,721,056 $7,648,422 $28,426,516 $48,658,510 Annual Restricted Fund Revenue at Phase Buildout $211,621 $348,686 $896,949 $1,582,277 Annual Other Fund Revenue at Phase Buildout $593,204 $976,306 $2,508,713 $4,424,223 Total Potential Annual Revenues at Phase Buildout $4,525,880 $8,973,414 $31,832,178 $54,665,010 ANNUAL COSTS Total Potential Annual Costs at Phase Buildout $10,497,832 $14,014,462 $32,235,471 $54,315,196 Potential Cashflow at Phase Buildout -$5,971,951 -$5,041,048 -$403,293 $349,814 As shown in the table above, this development scenario for Area A and B combined would result in negative cash flow until full build out. At full buildout, this development scenario would result in $349,814 in net annual revenue for the City. Table 85 shows the one-time revenues and costs that would be generated by incorporation of the whole Sphere area in this development scenario.

2.B.a
Packet Pg. 77
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 69 Table 85 Area A and B: One-Time Revenues and Costs (Fire Protection Scenario 1; with Cannabis Tax) One-time revenues: CITY DEVELOPER IMPACT FEE REVENUES Total Development Impact Fees $0 $92,060,189 $368,240,757 $460,300,946 Art in Public Places Fees $0 $3,915,091 $15,660,363 $19,575,453 Total Potential Developer Impact Fee Revenues at Phase Buildout $0 $95,975,280 $383,901,120 $479,876,400 One-time costs: PUBLIC SAFETY FACILITIES/EQUIPMENT Police Equipment Costs $670,000 $432,698 $454,003 $758,994 Fire Protection Equipment/Facilities $11,514,359 $0 $0 $0 Total Potential Public Safety Facilities/Equipment Costs at Phase Buildout $12,184,359 $432,698 $454,003 $758,994 As shown in the above table, the City would collect a total of $959,757,799 in DIFs and Art in Public Places Fees over the course of development of the entire Sphere. Public safety facilities and equipment would cost the City $13,830,005. Costs and Revenues: Area A and Area B, Fire Protection Scenario 1, without Cannabis Tax Table 86 shows the costs and revenues associated with the incorporation of the whole Sphere area, excluding cannabis tax, using costs resulting from fire protection Scenario 1 (extension of City service). Table 86 Cost and Revenue Summary Table (Fire Protection Scenario 1; no Cannabis Tax) Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed)
Phase 4 (Build Out)
ANNUAL REVENUES Annual General Fund Revenue at Phase Buildout $3,721,056 $6,817,479 $23,233,119 $38,271,715 Annual Restricted Fund Revenue at Phase Buildout $211,621 $348,686 $896,949 $1,582,277 Annual Other Fund Revenue at Phase Buildout $593,204 $976,306 $2,508,713 $4,424,223 Total Potential Annual Revenues at Phase Buildout $4,525,880 $8,142,471 $26,638,781 $44,278,215

2.B.a
Packet Pg. 78
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 70 Table 86 Cost and Revenue Summary Table (Fire Protection Scenario 1; no Cannabis Tax) Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed)
Phase 4 (Build Out)
ANNUAL COSTS Total Potential Annual Costs at Phase Buildout $10,497,832 $14,014,462 $32,235,471 $54,315,196 Potential Cashflow at Phase Buildout -$5,971,951 -$5,871,992 -$5,596,690 -$10,036,981 As shown in the table above, this development scenario for the whole Sphere area would result in negative cash flow through all phases of buildout. At full build out, this development scenario for Area A and B would result in $10,036,981 in net annual loss for the City. Table 87 shows the one-time revenues and costs that would be generated by incorporation of the whole Sphere area in this development scenario. Table 87 Area A and B: One-Time Revenues and Costs (Fire Protection Scenario 1; no Cannabis Tax) One-time revenues: CITY DEVELOPER IMPACT FEE REVENUES Total Development Impact Fees $0 $92,060,189 $368,240,757 $460,300,946 Art in Public Places Fees $0 $3,915,091 $15,660,363 $19,575,453 Total Potential Developer Impact Fee Revenues at Phase Buildout $0 $95,975,280 $383,901,120 $479,876,400 One-time costs: PUBLIC SAFETY FACILITIES/EQUIPMENT Police Equipment Costs $670,000 $432,698 $454,003 $758,994 Fire Protection Equipment/Facilities $11,514,359 $0 $0 $0 Total Potential Public Safety Facilities/Equipment Costs at Phase Buildout $12,184,359 $432,698 $454,003 $758,994 As shown in the above table, the City would collect a total of $959,757,799 in DIFs and Art in Public Places Fees over the course of development of the entire Sphere. Public safety facilities and equipment would cost the City $13,830,005. Costs and Revenues: Area A and Area B, Fire Protection Scenario 2, with Cannabis Tax Table 88 shows the costs and revenues associated with the incorporation of the whole Sphere area, including cannabis tax, using costs resulting from fire protection Scenario 2 (contract services).

2.B.a
Packet Pg. 79
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 71 Table 88 Area A and B: Cost and Revenue Summary Table (Fire Protection Scenario 2; with Cannabis Tax) Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed)
Phase 4 (Build Out)
ANNUAL REVENUES Annual General Fund Revenue at Phase Buildout $3,721,056 $7,648,422 $28,426,516 $48,658,510 Annual Restricted Fund Revenue at Phase Buildout $211,621 $348,686 $896,949 $1,582,277 Total Potential Annual Revenues at Phase Buildout $3,932,677 $7,997,109 $29,323,465 $50,240,787 ANNUAL COSTS Total Potential Annual Costs at Phase Buildout $9,914,783 $13,054,871 $29,769,706 $49,966,715 Potential Cashflow at Phase Buildout -$5,982,107 -$5,057,762 -$446,241 $274,072 As shown in the table above, this development scenario for the whole Sphere area would result in negative cash flow until approximately 50% build out. At full buildout, this development scenario for Area A and B would result in $274,072 in net annual revenue for the City. Table 89 shows the one-time revenues and costs that would be generated by incorporation of the whole Sphere area in this development scenario. Table 89 Area A and B: One-Time Revenues and Costs (Fire Protection Scenario 2; with Cannabis Tax) One-time revenues: CITY DEVELOPER IMPACT FEE REVENUES Total Development Impact Fees $0 $92,060,189 $368,240,757 $460,300,946 Art in Public Places Fees $0 $3,915,091 $15,660,363 $19,575,453 Total Potential Developer Impact Fee Revenues at Phase Buildout $0 $95,975,280 $383,901,120 $479,876,400 One-time costs: PUBLIC SAFETY FACILITIES/EQUIPMENT Police Equipment Costs $670,000 $432,698 $454,003 $758,994 Total Potential Public Safety Facilities/Equipment Costs at Phase Buildout $670,000 $432,698 $454,003 $758,994

2.B.a
Packet Pg. 80
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 72 As shown in the above table, the City would collect a total of $959,757,799 in DIFs and Art in Public Places Fees over the course of development of Area A. Police equipment would cost the City $2,315,696. Costs and Revenues: Area A and Area B, Fire Protection Scenario 2, no Cannabis Tax Table 90 shows the costs and revenues associated with the incorporation of the whole Sphere area, excluding revenues from cannabis tax, using costs resulting from fire protection Scenario 2 (contract services). Table 90 Area A and B: Cost and Revenue Summary Table (Fire Protection Scenario 2; no Cannabis Tax) Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed)
Phase 4 (Build Out)
ANNUAL REVENUES Annual General Fund Revenue at Phase Buildout $3,721,056 $6,817,479 $23,233,119 $38,271,715 Annual Restricted Fund Revenue at Phase Buildout $211,621 $348,686 $896,949 $1,582,277 Total Potential Annual Revenues at Phase Buildout $3,932,677 $7,166,165 $24,130,068 $39,853,992 ANNUAL COSTS Total Potential Annual Costs at Phase Buildout $9,914,783 $13,054,871 $29,769,706 $49,966,715 Potential Cashflow at Phase Buildout -$5,982,107 -$5,888,706 -$5,639,639 -$10,112,723 As shown in the table above, this development scenario for the whole Sphere area would result in negative cash flow through full build out. At 100% buildout, this development scenario for Area A and B would result in $10,112,723 in net annual losses for the City. Table 91 shows the one-time revenues and costs that would be generated by incorporation of the whole Sphere area in this development scenario.

2.B.a
Packet Pg. 81
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 73 Table 91 Area A and B: One-Time Revenues and Costs (Fire Protection Scenario 2; no Cannabis Tax) One-time revenues: CITY DEVELOPER IMPACT FEE REVENUES Total Development Impact Fees $0 $92,060,189 $368,240,757 $460,300,946 Art in Public Places Fees $0 $3,915,091 $15,660,363 $19,575,453 Total Potential Developer Impact Fee Revenues at Phase Buildout $0 $95,975,280 $383,901,120 $479,876,400 One-time costs: PUBLIC SAFETY FACILITIES/EQUIPMENT Police Equipment Costs $670,000 $432,698 $454,003 $758,994 Total Potential Public Safety Facilities/Equipment Costs at Phase Buildout $670,000 $432,698 $454,003 $758,994 As shown in the above table, the City would collect a total of $959,757,799 in DIFs and Art in Public Places Fees over the course of development of Area A. Police equipment would cost the City $2,314,696. D. Cost/Revenue Analysis – Conclusion Table 92 shows the potential cashflow at phase buildout for each of the twelve development scenarios in the Sphere area. All scenarios in which just Area A is incorporated would have negative cashflows at annexation and through full buildout. Similarly, all scenarios incorporating the whole Sphere, and excluding cannabis tax revenues, would also have negative cash flows through full buildout. Scenarios incorporating the whole Sphere and including cannabis tax revenues would have a negative cash flow until 50% buildout of vacant lands, but a positive cash flow at full buildout. Scenarios showing annexation of only Area B appear to be cashflow positive immediately at annexation. However, as previously stated, the City would likely incur higher costs immediately at annexation than represented in order to provide services to the existing commercial uses. Scenarios showing annexation of only Area B would have a negative cash flow at 10% buildout of vacant lands, but would be cashflow positive at 50% buildout.

2.B.a
Packet Pg. 82
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 74 Table 92 Costs and Revenues Comparison of Scenarios Potential Cashflow at Phase Buildout Buildout Phase Phase 1 (At Annexation) Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed) Phase 4 (Build Out) Area A (Fire Protection Scenario 1, Cannabis Tax Revenues Included) -$6,007,369 -$4,869,206 -$4,123,539 -$3,654,113 Area A (Fire Protection Scenario 1, without Cannabis Tax Revenues) -$6,007,369 -$5,649,779 -$9,002,120 -$13,411,275 Area A (Fire Protection Scenario 2, Cannabis Tax Revenues Included) -$6,017,524 -$4,885,478 -$4,164,275 -$3,725,429 Area A (Fire Protection Scenario 2, without Cannabis Tax Revenues) -$6,017,524 -$5,666,051 -$9,042,856 -$13,482,590 Area B (Fire Protection Scenario 1, Cannabis Tax Revenues Included) $35,418 -$171,842 $3,720,247 $4,003,927 Area B (Fire Protection Scenario 1, without Cannabis Tax Revenues) $35,418 -$222,213 $3,522,688 $3,960,582 Area B (Fire Protection Scenario 2, Cannabis Tax Revenues Included) $35,418 -$172,285 $3,718,033 $3,999,501 Area B (Fire Protection Scenario 2, without Cannabis Tax Revenues) $35,418 -$222,655 $3,405,430 $3,374,294 Area A + B (Fire Protection Scenario 1, Cannabis Tax Revenues Included) -$5,971,951 -$5,041,048 -$403,293 $349,814 Area A + B (Fire Protection Scenario 1, without Cannabis Tax Revenues) -$5,971,951 -$5,871,992 -$5,596,690 -$10,036,981 Area A + B (Fire Protection Scenario 2, Cannabis Tax Revenues Included) -$5,982,107 -$5,057,762 -$446,241 $274,072 Area A + B (Fire Protection Scenario 2, without Cannabis Tax Revenues) -$5,982,107 -$5,888,706 -$5,639,639 -$10,112,723

2.B.a
Packet Pg. 83
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 75 E. NorthStar Specific Plan Amendment No. 3 As previously stated, the NorthStar Specific Plan (SP) was approved by Riverside County in 2006, and amended in 2021. An additional amendment (Specific Plan No. 343 Amendment No. 3) has been proposed, and is currently undergoing review by the County. Given that the proposed amendment was not adopted at the time of this writing, the proposed land uses were not accounted for in this document’s fiscal analysis. Instead, the most recent approved land uses, from the 2021 amendment, were used at the basis for projecting the potential costs and revenues generated by buildout of Area B. This section will provide a summary of the potential impact of Amendment No. 3 on projected revenues. Table 93 provides a summary of the land uses proposed by the 2021 Amendment and the proposed Amendment No.3. Table 93 NorthStar Specific Plan Amendments – Land Use Summaries Land Use NorthStar SP Amendment (2021) NorthStar SP Amendment No.3 Total DUs Total Hotel Keys Max Floor Area (SF) Total DUs Total Hotel Keys Max Floor Area (SF) Commercial 350 238,000 366 81,000 Mixed Use 150 695,000 900 525 427,000 Residential 820 205 650,000 Industrial 611,035 TOTAL 970 350 1,544,035 1,105 891 1,158,000 Table 94 summarizes the differences in number of dwelling units, hotel keys, commercial square footage, and industrial square footage, resulting from the two specific plan amendments. Table 94 NorthStar Specific Plan Amendments – Land Use Comparison Category NorthStar SP Amendment (2021) NorthStar SP Amendment No.3 Difference Dwelling Units 970 1,105 13.9% Hotel Keys 350 891 154.6% Square Feet of Commercial/MU 933,000 SF 1,158,000 SF 24.1% Square Feet of Industrial 611,035 SF 0 SF -100.00% As shown in the above table, the proposed SP Amendment No.3 would result in a small increase in the number of potential dwelling units, a significant increase in the number of potential hotel keys, a small increase in the potential square feet of commercial and mixed use space, and a complete reduction in the amount of industrial space. The potential changes in tax revenue associated with these land uses were calculated for the three taxes most likely to be impacted: transient occupancy tax, sales tax, and property tax. For each of these taxes, a “revenue per unit” was calculated based on the total number of dwelling units, hotel keys, square feet of commercial/mixed-use development, and square feet of industrial

2.B.a
Packet Pg. 84
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis 76 development in Area B, and the associated tax revenues projected from each of these land uses. This “revenue per unit” was then applied to the change in land uses proposed by SP Amendment No. 3 to determine the potential impact on revenues. As shown in Table 95, the land use changes proposed in SP Amendment No. 3 would result in increased transient occupancy tax and sales tax revenues, and decreased property tax revenues, and would overall increase revenues by $5,751,757. Table 95 NorthStar Specific Plan Amendments – Tax Revenue Comparison Land Use NorthStar SP (2021) SP Amendment No.3 Change in Land Use Revenue per Unit Change in Revenue TRANSIENT OCCUPANCY TAX Hotel Keys 350 keys 891 keys + 541 keys $10,131.04 per key + $5,480,892 SALES TAX Commercial/MU 933,000 SF 1,158,000 SF + 225,000 SF $1.37 per SF + $307,126 PROPERTY TAX Residential 970 DUs 1,105 DUs + 135 DUs $375.81 per DU + $50,735 Commercial/MU 933,000 SF 1,158,000 SF + 225,000 SF $0.25 per SF + $55,917 Industrial 611,035 SF 0 SF - 611,035 SF $0.23 per SF - $142,913 Property Tax Subtotal - $36,261 + $5,751,757

2.B.a
Packet Pg. 85
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Terra Nova/City of Cathedral City Sphere of Influence Fiscal Impact Analysis A.1
Appendix A.1 Area A Detailed Cost and Revenue Tables

2.B.a
Packet Pg. 86
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Potential Annexation Fiscal AnalysisCity of Cathedral City Prop. Tax

From Existing Conditions
Phase 1 (At Annexation)Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed)Phase 4 (Build Out) Calculation of Property Tax Revenue
Total Property Value1 $853,409,439$853,409,439$853,409,439$853,409,439Property Tax Rate 1% 1% 1% 1%Total Property Tax Collected by County at phase buildout$8,534,094 $8,534,094$8,534,094$8,534,094Percent of Property Tax Allocated to City's General Fund16.00% 16.00% 16.00% 16.00%Property Tax Revenue collected by City $1,365,455 $1,365,455$1,365,455$1,365,455 From Future Residential Development
Phase 1 (At Annexation)Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed)Phase 4 (Build Out) Calculation of Property Tax RevenueNumber of acres developed during phase 0.00 107.10 428.40 535.49Maximum density permitted (units/acre) 1.0 1.0 1.0 1.0 Maximum potential units constructed during this phase 1 0.0 80 321 402Number of total potential units constructed at buildout 0 80 402 803 Average value per unit2 $328,595 $328,595 $328,595 $328,595Total Value $0 $26,394,121$131,970,603$263,941,206Property Tax Rate 1% 1% 1% 1%Total Property Tax Collected by County at Phase Buildout$0 $263,941 $1,319,706$2,639,412Percent of Property Tax Allocated to City's General Fund16.00% 16.00% 16.00% 16.00%Property Tax Revenue collected by City $0 $42,231 $211,153 $422,306 Existing Conditions (developed parcels are taxed on value of land & structure; vacant parcels are taxed on value of land) 1 From Riverside County Assessors records, June 2023. Includes value of land for vacant parcels, and value of land and structures for developed parcels with the exclusion of tax exempt parcels. 1Assumes land will be developed at 75% of the maximum density permitted.2 Average value per issued building permits in City, 2022-2023.

Zoning District: Residential Estate (RE)(1 du/ac)Total No. Acres: 1,071No. of Potential Buildout Units: 803 Property Tax Revenue
Buildout Phase
Buildout Phase

2.B.a
Packet Pg. 87
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Potential Annexation Fiscal AnalysisCity of Cathedral City Prop. Tax

Phase 1 (At Annexation)Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed)Phase 4 (Build Out) Calculation of Property Tax RevenueNumber of acres developed during phase 0.00 48.15 192.61 240.76Maximum density permitted (units/acre) 6.0 6.0 6.0 6.0 Maximum potential units constructed during this phase 1 0.0 216.7 866.7 1083.4Number of total potential units constructed at buildout 0 217 1083 2167 Average value per unit2 $328,595 $328,595 $328,595 $328,595Total Value $0 $71,201,307$356,006,536$712,013,072Property Tax Rate 1% 1% 1% 1%Total Property Tax Collected by County at Phase Buildout$0 $712,013 $3,560,065$7,120,131Percent of Property Tax Allocated to City's General Fund16.00% 16.00% 16.00% 16.00%Property Tax Revenue collected by City $0 $113,922 $569,610 $1,139,221 Phase 1 (At Annexation)Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed)Phase 4 (Build Out) Calculation of Property Tax RevenueNumber of acres developed during phase 0.00 8.75 35.02 43.77Maximum density permitted (units/acre) 12.0 12.0 12.0 12.0 Maximum potential units constructed during this phase 1 0 79 315 394Number of total potential units constructed at buildout 0 79 394 788 Average value per unit2 $234,854 $234,854 $234,854 $234,854Total Value $0 $18,503,010$92,515,051$185,030,101Property Tax Rate 1% 1% 1% 1%Total Property Tax Collected by County at Phase Buildout$0 $185,030 $925,151 $1,850,301Percent of Property Tax Allocated to City's General Fund16.00% 16.00% 16.00% 16.00%Property Tax Revenue collected by City $0 $29,605 $148,024 $296,048 Phase 1 (At Annexation)Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed)Phase 4 (Build Out) Calculation of Property Tax RevenueNumber of acres developed during phase 0.00 13.51 54.04 67.55Maximum density permitted (units/acre) 24.0 24.0 24.0 24.0 Maximum potential units constructed during this phase 1 0.0 243 973 1216Number of total potential units constructed at buildout 0 243 1,216 2,432 Average value per unit2 $234,854 $234,854 $234,854 $234,854Total Value $0 $57,111,477$285,557,384$571,114,767Property Tax Rate 1% 1% 1% 1%Total Property Tax Collected by County at Phase Buildout$0 $571,115 $2,855,574$5,711,148Percent of Property Tax Allocated to City's General Fund16.00% 16.00% 16.00% 16.00%Property Tax Revenue collected by City $0 $91,378 $456,892 $913,784 Zoning District: Single-Family Residential (R1)(6 du/ac)Total No. Acres: 481.5No. of Potential Buildout Units: 2,167 2 Median sale price of a single family home per Redfin, Housing Market: House Prices & Trends https://www.redfin.com/zipcode/92234/housing-market (accessed July 2023). 1Assumes land will be developed at 75% of the maximum density permitted. 2 Per average value of new multifamily development permits per Cathedral City Build Department. 1Assumes land will be developed at 75% of the maximum density permitted.

Buildout Phase
Zoning District: Multiple-Family Residential (R3)(24 du/ac)Total No. Acres: 135.1No. of Potential Buildout Units: 2,432 Buildout Phase
1Assumes land will be developed at 75% of the maximum density permitted.2 Per average value of new multifamily development permits per Cathedral City Build Department.

Zoning District: Multiple-Family Residential (R2)(12 du/ac)Total No. Acres: 87.5No. of Potential Buildout Units: 788 Buildout Phase

2.B.a
Packet Pg. 88
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Potential Annexation Fiscal AnalysisCity of Cathedral City Prop. Tax

From Future Business Park Development
Phase 1 (At Annexation)Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed)Phase 4 (Build Out) Calculation of Property Tax RevenueNumber of acres developed during phase 0.00 0.00 0 0 Percentage of lot covered by structure1 34% 34% 34% 34%Square footage constructed during this phase 0.00 0.00 0.00 0.00Total square footage constructed at phase buildout 0 0 0 0 Average value per square foot2 $182 $182 $182 $182Total Value $0 $0 $0 $0Property Tax Rate 1% 1% 1% 1%Total Property Tax Collected by County at Phase Buildout$0 $0 $0 $0Percent of Property Tax Allocated to City's General Fund16.00% 16.00% 16.00% 16.00%Property Tax Revenue collected by City $0 $0 $0 $0 From Future Industrial Development
Phase 1 (At Annexation)Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed)Phase 4 (Build Out) Calculation of Property Tax RevenueNumber of acres developed during phase 0.00 131.76 527.04378658.804725 Percentage of lot covered by structure1 34% 34% 34% 34%Square footage constructed during this phase 0.00 1,951,432 7,805,729 9,757,161 Total square footage constructed at phase buildout 0.00 1,951,432 9,757,161 19,514,323 Average value per square foot2 $182 $182 $182 $182Total Value $0 $355,160,679$1,775,803,393$3,551,606,786Property Tax Rate 1% 1% 1% 1%Total Property Tax Collected by County at Phase Buildout$0 $3,551,607$17,758,034$35,516,068Percent of Property Tax Allocated to City's General Fund16.00% 16.00% 16.00% 16.00%Property Tax Revenue collected by City $0 $568,257 $2,841,285$5,682,571 Zoning District: Business ParkTotal No. Acres: 0No. of Potential Buildout Sq. Ft.: 0 sf Zoning District: IndustrialTotal No. Acres: 1,317.6No. of Potential Buildout Sq. Ft.: 19,514,323 2 Average price per square foot of industrial property Riverside County Economic Development Industrial Submarket Report Coachella Valley 2023. 1Assumes structure will account for 34% lot coverage. Remainder of lot will include access roads, parking facilities, landscaping, and other ancillary uses. 2 Average price per square foot of industrial property Riverside County Economic Development Industrial Submarket Report Coachella Valley 2023.

Buildout Phase
Buildout Phase
1Assumes structure will account for 34% lot coverage. Remainder of lot will include access roads, parking facilities, landscaping, and other ancillary uses.

2.B.a
Packet Pg. 89
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Potential Annexation Fiscal AnalysisCity of Cathedral City Prop. Tax

From Future Mixed Use Development
Phase 1 (At Annexation)Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed)Phase 4 (Build Out) Calculation of Property Tax RevenueNumber of acres developed during phase 0.00 29.27 117.06 146.33Maximum density permitted (units/acre) 45 45 45 45 Maximum potential units constructed during this phase 1 0 1,119 4,478 5,597 Number of total potential units constructed at buildout 0 1,119 5,597 11,194 Average value per unit2 $234,854 $234,854 $234,854 $234,854Total Value $0 $262,902,129$1,314,510,643$2,629,021,287Property Tax Rate 1% 1% 1% 1%Total Property Tax Collected by County at Phase Buildout$0 $2,629,021$13,145,106$26,290,213Percent of Property Tax Allocated to City's General Fund16.00% 16.00% 16.00% 16.00%Property Tax Revenue collected by City $0 $420,643 $2,103,217$4,206,434 From Future Mixed Use Development
Phase 1 (At Annexation)Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed)Phase 4 (Build Out) Calculation of Property Tax RevenueNumber of acres developed during phase 0.00 19.51 78.04 97.55 Percentage of lot covered by structure1 22% 22% 22% 22%Square footage constructed during this phase - 186,975 747,901 934,876 Total square footage constructed at phase buildout 0 186,975 934,876 1,869,752 Average value per square foot2 $256 $256 $256 $256Total Value $0 $47,865,650$239,328,249$478,656,499Property Tax Rate 1% 1% 1% 1%Total Property Tax Collected by County at Phase Buildout$0 $478,656 $2,393,282$4,786,565Percent of Property Tax Allocated to City's General Fund16.00% 16.00% 16.00% 16.00%Property Tax Revenue collected by City $0 $76,585 $382,925 $765,850 1Assumes land will be developed at 85% of the maximum density permitted.2 Per average value of new multifamily development permits per Cathedral City Build Department. 1Assumes 22% of lot coverage density permitted. Remainder of lot will include access roads, parking facilities, landscaping, and other ancillary uses.2 Per average value per square foot of retail development, Riverside County Economic Development, Coachella Valley Retail Submarket Report, 2023 Zoning District: Mixed Use - Urban (Residential Component)Total No. Acres: 292.68No. of Potential Buildout Sq. Ft.: 11,194 du Buildout Phase
Buildout Phase
Zoning District: Mixed Use - Urban (Commercial Component)Total No. Acres: 195.12No. of Potential Buildout Sq. Ft.: 1,869,752 sf

2.B.a
Packet Pg. 90
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Potential Annexation Fiscal AnalysisCity of Cathedral City Prop. Tax

Phase 1 (At Annexation)Phase 2 (10% of Vacant Land Developed) Phase 3 (50% of Vacant Land Developed)Phase 4 (Build Out) Potential annual property tax revenue to City from existing development$1,365,455 $1,365,455$1,365,455$1,365,455 Potential annual property tax revenue to City from future Residential Estate development $0 $42,231 $211,153 $422,306 Potential annual property tax revenue to City from future Single-Family Residential development $0 $113,922 $569,610 $1,139,221 Potential annual property tax revenue to City from future Multiple-Family Residential (R2) development $0 $29,605 $148,024 $296,048 Potential annual property tax revenue to City from future Multiple Family Residential (R3) Residential development $0 $91,378 $456,892 $913,784 Potential annual property tax revenue to City from future Industrial development$0 $568,257 $2,841,285$5,682,571 Potential annual property tax revenue to City from future Business Park development $0 $0 $0 $0 Potential annual property tax revenue to City from future Mixed Use - Urban development (commerical component) $0 $76,585 $382,925 $765,850 Potential annual property tax revenue to City from future Mixed Use - Urban development (residential component) $0 $420,643 $2,103,217$4,206,434 Total Property Tax Revenue at Phase Buildout $1,365,455 $2,708,076$8,078,562$14,791,669 Property Tax Revenue Summary Table
Buildout Phase

2.B.a
Packet Pg. 91
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Potential Annexation Fiscal AnalysisCity of Cathedral CityMotor Veh. In Lieu

Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed)Phase 4 (Build Out) Number of acres developed at phase buildout1,623.301,623.30 1,623.30 1,623.30Number of total units developed at phase buildout4,208 4,208 4,208 4,208 Total Property Tax Collected by County$8,534,094$8,534,094$8,534,094$8,534,094 Percent of Property Tax Allocated to City's General Fund16.00%16.00% 16.00% 16.00%Total Amount Allocated to City General Fund at phase buildout $1,365,455$1,365,455$1,365,455$1,365,455 In Lieu Property Tax Percentage 1 0.65% 0.65% 0.65% 0.65% Annual Motor Vehicle In-Lieu Revenue at phase buildout$8,875 $8,875 $8,875 $8,875 From Future Residential Development
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed)Phase 4 (Build Out) Number of acres developed during phase0.00 107.10 428.40 535.49Maximum density permitted (units/acre) 1 1 1 1 Maximum potential units constructed during this phase1 0 80 321 402Number of total potential units constructed at phase buildout0 80 402 803 Total Property Tax Collected by County $ - $ 263,941.00 $ 1,319,706.03 $ 2,639,412.06 Percent of Property Tax Allocated to City's General Fund16.00%16.00% 16.00% 16.00% Total Amount Allocated to City General Fund at phase buildout $0 $42,231 $211,153$422,306 In Lieu Property Tax Percentage 2 0.65% 0.65% 0.65% 0.65% Annual Motor Vehicle In-Lieu Revenue at phase buildout$0 $1,716 $8,578 $17,156 Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed)Phase 4 (Build Out) Number of acres developed during phase0.00 48.15 192.61 240.76Maximum density permitted (units/acre) 6 6 6 6 Maximum potential units constructed during this phase1 0 217 867 1,083Number of total potential units constructed at phase buildout0 217 1,083 2,167 Total Property Tax Collected by County $ - $ 712,013.00 $ 3,560,065.36 $ 7,120,130.72 Percent of Property Tax Allocated to City's General Fund16.00%16.00% 16.00% 16.00% Total Amount Allocated to City General Fund at phase buildout $0 $113,922$569,610$1,139,221 In Lieu Property Tax Percentage 2 0.65% 0.65% 0.65% 0.65%Annual Motor Vehicle In-Lieu Revenue at phase buildout$0 $4,628 $23,140 $46,281 2 Based on Estimated VLF Adjustment Amount (post SB 130 approved 5-12-17 by Gov. Brown) provided Cathedral City Finance Department, Kevin Biersack - Financial Services Director. 1 Assumes buildout occurs at 75% of the maximum density permitted. 2 Based on Estimated VLF Adjustment Amount (post SB 130 approved 5-12-17 by Gov. Brown) provided Cathedral City Finance Department, Kevin Biersack - Financial Services Director. 1 Assumes buildout occurs at 75% of the maximum density permitted.

Calculation of Annual Motor Vehicle In-Lieu Tax Revenue Buildout Phase
Zoning District: Single-Family Residential (R1)(6 du/ac)Total No. Acres: 481.5No. of Potential Buildout Units: 2,167Land Use Buildout Data Property Tax In Lieu of Motor Vehicle License Fees
Calculation of Annual Motor Vehicle In-Lieu Tax Revenue Land Use Buildout Data
Buildout Phase
Land Use Buildout Data
Zoning District: Residential Estate (RE)(1 du/ac)Total No. Acres: 1,071.0No. of Potential Buildout Units: 803 1 Based on Estimated VLF Adjustment Amount (post SB 130 approved 5-12-17 by Gov. Brown) provided Cathedral City Finance Department, Kevin Biersack - Financial Services. Director.

From Existing Development
Zoning District: ALL - Area ATotal No. Acres: 1,623.3No. of Existing Units: 4,208 Calculation of Annual Motor Vehicle In-Lieu Revenue
Buildout Phase

2.B.a
Packet Pg. 92
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Potential Annexation Fiscal AnalysisCity of Cathedral CityMotor Veh. In Lieu

Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed)Phase 4 (Build Out) Number of acres developed during phase0.00 8.75 35.02 43.77Maximum density permitted (units/acre)12 12 12 12 Maximum potential units constructed during this phase1 0 79 315 394 Number of total potential units constructed at phase buildout0 79 394 788 Total Property Tax Collected by County $ - $ 185,030.00 $ 925,150.51 $ 1,850,301.01 Percent of Property Tax Allocated to City's General Fund16.00%16.00% 16.00% 16.00% Total Amount Allocated to City General Fund at phase buildout $0 $29,605 $148,024$296,048 In Lieu Property Tax Percentage 2 0.65% 0.65% 0.65% 0.65%Annual Motor Vehicle In-Lieu Revenue at phase buildout$0 $1,203 $6,013 $12,027 Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed)Phase 4 (Build Out) Number of acres developed during phase0.00 13.51 54.04 67.55Maximum density permitted (units/acre)24 24 24 24 Maximum potential units constructed during this phase1 0 243 973 1,216Number of total potential units constructed at phase buildout0 243 1,216 2,432 Total Property Tax Collected by County $ - $ 571,118.00 $ 2,855,589.79 $ 5,711,179.57 Percent of Property Tax Allocated to City's General Fund16.00%16.00% 16.00% 16.00%Total Amount Allocated to City General Fund at phase buildout $0 $91,379 $456,894$913,789 In Lieu Property Tax Percentage 2 0.65% 0.65% 0.65% 0.65%Annual Motor Vehicle In-Lieu Revenue at phase buildout$0 $3,712 $18,561 $37,123 From Future Business Park Development
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed)Phase 4 (Build Out) Number of acres developed during phase0.00 0.00 0.00 0.00Square footage constructed at Phase buildout0 0 0 0 Total Property Tax Collected by County $ - $ - $ - $ - Percent of Property Tax Allocated to City's General Fund16.00%16.00% 16.00% 16.00% Total Amount Allocated to City General Fund at phase buildout $0 $0 $0 $0 In Lieu Property Tax Percentage 2 0.65% 0.65% 0.65% 0.65%Annual Motor Vehicle In-Lieu Revenue at phase buildout$0 $0 $0 $0 1 Assumes buildout occurs at 75% of the maximum density permitted.2 Based on Estimated VLF Adjustment Amount (post SB 130 approved 5-12-17 by Gov. Brown) provided Cathedral City Finance Department, Kevin Biersack - Financial Zoning District: Business ParkTotal No. Acres: 0No. of Potential Buildout Sq. Ft.: 0 sf Buildout Phase
1 Based on Estimated VLF Adjustment Amount (post SB 130 approved 5-12-17 by Gov. Brown) provided Cathedral City Finance Department, Kevin Biersack - Financial 1 Assumes buildout occurs at 75% of the maximum density permitted.

Zoning District: Multiple-Family Residential (R3)(24 du/ac)Total No. Acres: 135.1No. of Potential Buildout Units: 2,432 Calculation of Annual Motor Vehicle In-Lieu Revenue
Buildout Phase
Land Use Buildout Data
Land Use Buildout Data
Buildout Phase
Calculation of Annual Motor Vehicle In-Lieu Tax Revenue Zoning District: Multiple-Family Residential (R2)(12 du/ac)Total No. Acres: 87.5No. of Potential Buildout Units: 788 2 Based on Estimated VLF Adjustment Amount (post SB 130 approved 5-12-17 by Gov. Brown) provided Cathedral City Finance Department, Kevin Biersack - Financial Land Use Buildout Data
Calculation of Annual Motor Vehicle In-Lieu Revenue

2.B.a
Packet Pg. 93
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Potential Annexation Fiscal AnalysisCity of Cathedral CityMotor Veh. In Lieu

From Future Industrial Development
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed)Phase 4 (Build Out) Number of acres developed during phase0.00 131.76 527.04 658.80 Square footage constructed at Phase buildout1 0 1,951,4329,757,16119,514,323 Total Property Tax Collected by County $ - $ 3,551,607 $ 17,758,034 $ 35,516,068 Percent of Property Tax Allocated to City's General Fund16.00%16.00% 16.00% 16.00% Total Amount Allocated to City General Fund at phase buildout $0 $568,257$2,841,285$5,682,571 In Lieu Property Tax Percentage 2 0.65% 0.65% 0.65% 0.65%Annual Motor Vehicle In-Lieu Revenue at phase buildout$0 $23,085 $115,427 $230,854 From Future Mixed Use Development
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed)Phase 4 (Build Out) Number of acres developed during phase0.00 19.51 78.04 97.55 Square footage constructed at Phase buildout1 0 186,975 934,8761,869,752 Total Property Tax Collected by County $ - $ 478,656 $ 2,393,282 $ 4,786,565 Percent of Property Tax Allocated to City's General Fund16.00%16.00% 16.00% 16.00% Total Amount Allocated to City General Fund at phase buildout $0 $76,585 $382,925$765,850In Lieu Property Tax Percentage 2 0.65% 0.65% 0.65% 0.65% Annual Motor Vehicle In-Lieu Revenue at phase buildout$0 $3,111 $15,556 $31,113 Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed)Phase 4 (Build Out) Number of acres developed during phase0.00 29.27 117.06 146.33Maximum density permitted (units/acre)45 45 45 45 Maximum potential units constructed during this phase1 0 1,119 4,478 5,597Number of total potential units constructed at phase buildout0 1,119 5,597 11,194 Total Property Tax Collected by County $ - $ 2,629,021.00 $ 13,145,106.43 $ 26,290,212.87 Percent of Property Tax Allocated to City's General Fund16.00%16.00% 16.00% 16.00%Total Amount Allocated to City General Fund at phase buildout $0 $17,539 $87,695 $175,391 In Lieu Property Tax Percentage 2 0.65% 0.65% 0.65% 0.65%Annual Motor Vehicle In-Lieu Revenue at phase buildout$0 $114 $570 $1,140 1 Assumes buildout occurs at 22% lot coverage permitted.2 Based on Estimated VLF Adjustment Amount (post SB 130 approved 5-12-17 by Gov. Brown) provided Cathedral City Finance Department, Kevin Biersack - Financial 1 Assumes buildout occurs at 34% lot coverage permitted.2 Based on Estimated VLF Adjustment Amount (post SB 130 approved 5-12-17 by Gov. Brown) provided Cathedral City Finance Department, Kevin Biersack - Financial Zoning District: IndustrialTotal No. Acres: 1,317.6No. of Potential Buildout Sq. Ft.: 19,514,323 Buildout Phase
Land Use Buildout Data
Calculation of Annual Motor Vehicle In-Lieu Revenue
Zoning District: Mixed Use - Urban (Commercial Component)Total No. Acres: 195.12No. of Potential Buildout Sq. Ft.: 1,869,752 sf Buildout Phase
Land Use Buildout Data
Zoning District: Mixed Use - Urban (Residential Component)Total No. Acres: 292.68No. of Potential Buildout Sq. Ft.: 11,195 du Buildout Phase
Land Use Buildout Data
Calculation of Annual Motor Vehicle In-Lieu Revenue
Calculation of Annual Motor Vehicle In-Lieu Revenue
1 Assumes buildout occurs at 34% lot coverage permitted.2 Based on Estimated VLF Adjustment Amount (post SB 130 approved 5-12-17 by Gov. Brown) provided Cathedral City Finance Department, Kevin Biersack - Financial

2.B.a
Packet Pg. 94
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Potential Annexation Fiscal AnalysisCity of Cathedral CityMotor Veh. In Lieu

Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed)Phase 4 (Build Out)Potential annual MVL in-lieu property tax revenue to City from existing development $8,875 $8,875 $8,875 $8,875 Potential annual MVL in-lieu property tax revenue to City from future Residential Estate development $0 $1,716 $8,578 $17,156 Potential annual MVL in-lieu property tax revenue to City from future Single-Family Residential development$0 $4,628 $23,140 $46,281 Potential annual MVL in-lieu property tax revenue to City from future Multiple Family Residential (R2) development$0 $1,203 $6,013 $12,027 Potential annual MVL in-lieu property tax revenue to City from future Multiple Family Residential (R3) development$0 $3,712 $18,561 $37,123 Potential annual MVL in-lieu property tax revenue to City from future Business Park development $0 $0 $0 $0 Potential annual MVL in-lieu property tax revenue to City from future Industrial development $0 $23,085 $115,427 $230,854 Potential annual MVL in-lieu property tax revenue to City from future Mixed Use - Urban development (commerical component) $0 $3,111 $15,556 $31,113 Potential annual MVL in-lieu property tax revenue to City from future Mixed Use - Urban development (residential component)$0 $114 $570 $1,140 Total MVL in-lieu Property Tax Revenue at Phase Buildout $8,875 $46,445 $196,722 $384,569 Buildout Phase
Motor Vehicle In-Lieu RevenueSummary Table

2.B.a
Packet Pg. 95
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Potential Annexation Fiscal AnalysisCity of Cathedral CityProperty Transfer Tax Rev.

From Existing Residential Development
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed)Phase 4 (Build Out) Existing Units (80% of market value is subject to tax) Number of units existing in 1st year of this phase 4208 4208 4208 4208 Number of existing units changing ownership annually1 421 421 421 421 Property Value per dwelling unit $164,325 $164,325 $164,325 $164,325 Unencumbered Value per unit (80% of value) $131,460 $131,460 $131,460 $131,460 Amount subject to Property Transfer Tax $55,318,415$55,318,415$55,318,415$55,318,415 Property Transfer Tax Rate 0.11% 0.11% 0.11% 0.11% Total Property Transfer Tax Collected $60,850 $60,850 $60,850 $60,850 Percent of Property Transfer Tax allocated to City 50% 50% 50% 50% Total Property Transfer Tax Allocated to Cathedral City General Fund$30,425 $30,425 $30,425 $30,425 1 Assumes 10% of existing units will change ownership per year.

From Future Residential Development
Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed)Phase 4 (Build Out)New Units (100% of market value is subject to tax) Number of acres developed 0 107.10 428.40 535.49 Maximum Density permitted (units/acre) 1.00 1.00 1.00 1.00 Number of new units during this phase1 0 80 321 402
Market Value per unit2 $328,595 $328,595 $328,595 $328,595 Amount Subject to Property Transfer Tax for all new units sold$0 $26,394,121$105,576,482$131,970,603 Property Transfer Tax Rate 0.11% 0.11% 0.11% 0.11% Total Property Transfer Tax Collected at Phase Buildout$0 $29,034 $116,134 $145,168 Percent of Property Transfer Tax allocated to Cathedral City50% 50% 50% 50% Total Property Transfer Tax Allocated to Cathedral City General Fund$0 $14,517 $58,067 $72,584Existing Units (80% of market value is subject to tax) 215Number of Units changing ownership 22 22 22 22 Property Value per dwelling unit $328,786 $328,786 $328,786 $328,786 Unencumbered Value per unit (80% of value) $263,029 $263,029 $263,029 $263,029 Amount subject to Property Transfer Tax $5,655,128$5,655,128 $5,655,128$5,655,128 Property Transfer Tax Rate 0.11% 0.11% 0.11% 0.11% Total Property Transfer Tax Collected $6,221 $6,221 $6,221 $6,221 Percent of Property Transfer Tax allocated to City 50% 50% 50% 50% Total Property Transfer Tax Allocated to Cathedral City General Fund$3,110 $3,110 $3,110 $3,110 Total Property Transfer Tax (New and Existing Units)$3,110 $17,627 $61,177 $75,694 Property Transfer Tax Revenue
Existing Residential UnitsNo. of Acres: 1,034.98No. of Dwelling Units: 4,207 Zoning District: Residential Estate (RE)(1 du/ac)Total No. Acres: 1,071.0No. of Potential Buildout Units: 803 1 Assumes future development will occur at 75% of the maximum density permitted.2 Median sale price of a single family home per Redfin, Housing Market: House Prices & Trends https://www.redfin.com/zipcode/92234/housing-market (accessed July 2023).

Buildout Phase
Buildout Phase

2.B.a
Packet Pg. 96
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Potential Annexation Fiscal AnalysisCity of Cathedral CityProperty Transfer Tax Rev.

Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed)Phase 4 (Build Out)New Units (100% of market value is subject to tax) Number of acres developed during phase 0.00 48.15 192.61 240.76 Maximum Density permitted (units/acre) 6 6 6 6 Number of new units during this phase1 0 217 867 1083
Market Value per unit2 $328,595 $328,595 $328,595 $328,595 Amount Subject to Property Transfer Tax for all new units sold$0 $71,201,307$284,805,229$356,006,536 Property Transfer Tax Rate 0.11% 0.11% 0.11% 0.11% Total Property Transfer Tax Collected at Phase Buildout$0 $78,321 $313,286 $391,607 Percent of Property Transfer Tax allocated to Cathedral City50% 50% 50% 50% Total Property Transfer Tax Allocated to Cathedral City General Fund$0 $39,161 $156,643 $195,804 Existing Units (80% of market value is subject to tax)
Number of Units changing ownership 0 22 87 108 Property Value per dwelling unit $138,734 $138,734 $138,734 $138,734 Unencumbered Value per unit (80% of value) $110,988 $110,988 $110,988 $110,988 Amount subject to Property Transfer Tax $0 $2,404,924 $9,619,698$12,024,622 Property Transfer Tax Rate 0.11% 0.11% 0.11% 0.11% Total Property Transfer Tax Collected $0 $2,645 $10,582 $13,227 Percent of Property Transfer Tax allocated to City 50% 50% 50% 50% Total Property Transfer Tax Allocated to Cathedral City General Fund$0 $1,323 $5,291 $6,614 Total Property Transfer Tax (New and Existing Units)$0 $40,483 $161,934 $202,417 Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed)Phase 4 (Build Out)New Units (100% of market value is subject to tax) Number of acres developed during phase 0.00 8.75 35.02 43.77 Maximum Density permitted (units/acre) 12.0 12.0 12.0 12.0 Number of new units during this phase1 0 79 315 394
Market Value per unit2 $234,854 $234,854 $234,854 $234,854 Amount Subject to Property Transfer Tax for all new units sold$0 $18,503,010$74,012,041$92,515,051 Property Transfer Tax Rate 0.11% 0.11% 0.11% 0.11% Total Property Transfer Tax Collected at Phase Buildout$0 $20,353 $81,413 $101,767 Percent of Property Transfer Tax allocated to Cathedral City50% 50% 50% 50% Total Property Transfer Tax Allocated to Cathedral City General Fund$0 $10,177 $40,707 $50,883Existing Units (80% of market value is subject to tax) Number of Units changing ownership 0 8 32 39 Property Value per dwelling unit $230,444 $230,444 $230,444 $230,444 Unencumbered Value per unit (80% of value) $184,355 $184,355 $184,355 $184,355 Amount subject to Property Transfer Tax $0 $1,452,445 $5,809,779$7,262,223 Property Transfer Tax Rate 0.11% 0.11% 0.11% 0.11% Total Property Transfer Tax Collected $0 $1,598 $6,391 $7,988 Percent of Property Transfer Tax allocated to City 50% 50% 50% 50% Total Property Transfer Tax Allocated to Cathedral City General Fund$0 $799 $3,195 $3,994 Total Property Transfer Tax (New and Existing Units)$0 $10,976 $43,902 $54,878 Zoning District: Single-Family Residential (R1)(6 du/ac)Total No. Acres: 481.5No. of Potential Buildout Units: 2,167 Zoning District: Multiple-Family Residential (R2)(12 du/ac)Total No. Acres: 87.5No. of Potential Buildout Units: 788 Buildout Phase
Buildout Phase
1 Assumes future development will occur at 75% of the maximum density permitted.2 Median sale price of a single family home per Redfin, Housing Market: House Prices & Trends https://www.redfin.com/zipcode/92234/housing-market (accessed July 2023). 1 Assumes future development will occur at 75% of the maximum density permitted.2 Per average value of new multifamily development permits per Cathedral City Build Department.

2.B.a
Packet Pg. 97
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Potential Annexation Fiscal AnalysisCity of Cathedral CityProperty Transfer Tax Rev.

Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed)Phase 4 (Build Out)New Units (100% of market value is subject to tax) Number of acres developed during phase 0.00 13.51 54.04 67.55 Maximum Density permitted (units/acre) 24 24 24 24 Number of new units during this phase1 0 243 973 1216
Market Value per unit2 $234,854 $234,854 $234,854 $234,854 Amount Subject to Property Transfer Tax for all new units sold$0 $57,111,796$228,447,183$285,558,979 Property Transfer Tax Rate 0.11% 0.11% 0.11% 0.11% Total Property Transfer Tax Collected at Phase Buildout$0 $62,823 $251,292 $314,115 Percent of Property Transfer Tax allocated to Cathedral City50% 50% 50% 50% Total Property Transfer Tax Allocated to Cathedral City General Fund$0 $31,411 $125,646 $157,057 Existing Units (80% of market value is subject to tax)
Number of Units changing ownership 0 24 97 122 Property Value per dwelling unit $104,050 $104,050 $104,050 $104,050 Unencumbered Value per unit (80% of value) $83,240 $83,240 $83,240 $83,240 Amount subject to Property Transfer Tax $0 $2,024,231 $8,096,923$10,121,154 Property Transfer Tax Rate 0.11% 0.11% 0.11% 0.11% Total Property Transfer Tax Collected $0 $2,227 $8,907 $11,133 Percent of Property Transfer Tax allocated to City 50% 50% 50% 50% Total Property Transfer Tax Allocated to Cathedral City General Fund$0 $1,113 $4,453 $5,567 Total Property Transfer Tax (New and Existing Units)$0 $32,525 $130,099 $162,624 Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed)Phase 4 (Build Out)New Units (100% of market value is subject to tax) Number of acres developed during phase 0.00 29.27 117.06 146.33 Maximum Density permitted (units/acre) 45 45 45 45 Number of new units during this phase2 0 1119 4478 5597 Market Value per unit3 $234,854 $234,854 $234,854 $234,854 Amount Subject to Property Transfer Tax for all new units sold$0 $262,902,129$1,051,608,515$1,314,510,643 Property Transfer Tax Rate 0.11% 0.11% 0.11% 0.11% Total Property Transfer Tax Collected at Phase Buildout$0 $289,192 $1,156,769$1,445,962 Percent of Property Transfer Tax allocated to Cathedral City50% 50% 50% 50% Total Property Transfer Tax Allocated to Cathedral City General Fund$0 $144,596 $578,385 $722,981 Existing Units (80% of market value is subject to tax)
Number of Units changing ownership 0 112 448 560 Property Value per dwelling unit3 $234,854 $234,854 $234,854 $234,854 Unencumbered Value per unit (80% of value) $187,883 $187,883 $187,883 $187,883 Amount subject to Property Transfer Tax $0 $21,032,170$84,128,681$105,160,851 Property Transfer Tax Rate 0.11% 0.11% 0.11% 0.11% Total Property Transfer Tax Collected $0 $23,135 $92,542 $115,677 Percent of Property Transfer Tax allocated to City 50% 50% 50% 50% Total Property Transfer Tax Allocated to Cathedral City General Fund$0 $11,568 $46,271 $57,838 Total Property Transfer Tax (New and Existing Units)$0 $156,164 $624,655 $780,8191 Based on 60% of the total developed MU-U area to account for only the residential portion. 2 Assumes future development will occur at 75% of the maximum density permitted.3 Per average value of new multifamily development permits per Cathedral City Build Department.

Land Use Designation: Mixed Use - Urban (Residential Component) Total No. Acres: 292.68 1
No. of Potential Buildout Sq. Ft.: 11,195 du
Buildout Phase
1 Assumes future development will occur at 75% of the maximum density permitted.2 Per average value of new multifamily development permits per Cathedral City Build Department.

Zoning District: Multiple-Family Residential (R3)(24 du/ac)Total No. Acres: 135.1No. of Potential Buildout Units: 2,432 Buildout Phase

2.B.a
Packet Pg. 98
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Potential Annexation Fiscal AnalysisCity of Cathedral CityProperty Transfer Tax Rev.

Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed)Phase 4 (Build Out)Total tax revenue from existing resid. development (at phase buildout)$30,425 $30,425 $30,425 $30,425Total tax revenue from future RE dev. (at phase buildout)$3,110 $17,627 $61,177 $75,694Total tax revenue from future R1 dev. (at phase buildout)$0 $40,483 $161,934 $202,417Total tax revenue from future R2 dev. (at phase buildout)$0 $10,976 $43,902 $54,878Total tax revenue from future R3 dev. (at phase buildout)$0 $32,525 $130,099 $162,624Total tax revenue from future Mixed Use - Urban (resid.) dev. (at phase buildout) $0 $156,164 $624,655 $780,819Total property transfer tax revenue at phase buildout$33,535 $288,200 $1,052,193$1,306,857 Buildout Phase Property Transfer Tax Revenue Summary Table

2.B.a
Packet Pg. 99
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Potential Annexation Fiscal Analysis
City of Cathedral City
SalesTax Rev.

Phase 1 (At
Annexation)
Phase 2 (10% of
Vacant Land
Developed)
Phase 3 (50% of
Vacant Land
Developed)
Phase 4 (Build
Out)
Number of acres developed 29.13 29.13 29.13 29.13
Number of square feet constructed 2 279,159 279,159 279,159 279,159 Percent leasable space 90% 90% 90% 90%
No. of leasable square feet 251,243 251,243 251,243 251,243 Percent of leasable sq. ft. considered "General Commercial" 100% 100% 100% 100% No. of leasable sq. ft. considered "General Commercial" 251,243 251,243 251,243 251,243 Ave. annual sales volume per sq. ft. 3 $234.85 $234.85 $234.85 $234.85 Total annual sales from "General Commercial" development$59,004,361$59,004,361$59,004,361$59,004,361 Total annual sales at phase buildout $59,004,361$59,004,361$59,004,361$59,004,361 City sales tax rate4 1.60% 1.60% 1.60% 1.60%
Annual sales tax revenue collected by City at phase buildout$944,070 $944,070 $944,070 $944,070 County-wide Measure A tax rate 0.50% 0.50% 0.50% 0.50%
Amount collected for County-wide Measure A fund $295,022 $295,022 $295,022 $295,022 Percent allocated to the Coachella Valley region 5 24% 24% 24% 24% Amount allocated to the Coachella Valley region $70,805 $70,805 $70,805 $70,805 Percent allocated to local streets and roads 5 35% 35% 35% 35% Amount allocated to local streets and roads $24,782 $24,782 $24,782 $24,782 Percent allocated to City of Cathedral City 5 11% 11% 11% 11% Amount allocated to City of Cathedral City $2,726 $2,726 $2,726 $2,726 Calculation of Total Leasable Square Feet
"General Commercial" Development
Calculation of Total Sales Tax Revenues
Calculation of Measure A Revenues
1 Based on 40% of the total developed MU-U area to account for only the commercial portion. 2.45 acres subtracted to account for hotel. 2 Assumes building covers 22% of lot. The remaining area is used for landscaping, parking, roadway access, and other ancillary uses. 23,467 SF subtracted to account for hotel.3 Average sales per square foot calculated based on Cathedral City tax revenues ($9,711,000 in Transactions and Use Tax in FY2021) and existing commercial area city-wide (4,134,907± SF).4 Total of 1% sales tax based and 1% transactions and use tax (Measure H). Assumes that transaction and use tax represents aaproximately 60% of sales tax.5 Measure A distribution data provided by Riverside County Transportation Commission.

Sales Tax Revenue
Measure A Revenue
From Existing Commercial Development
Zoning District: Mixed Use - Urban (Commercial Component) (does not include hotel)
No. of Acres: 77.07 1
Square Feet of Bldg. Space: 738,577 sf
Buildout Phase
Land Use Data

2.B.a
Packet Pg. 100
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Potential Annexation Fiscal Analysis
City of Cathedral City
SalesTax Rev.

Phase 1 (At
Annexation)
Phase 2 (10% of
Vacant Land
Developed)
Phase 3 (50% of
Vacant Land
Developed)
Phase 4 (Build
Out)
Number of acres developed during this phase 0.0 19.5 78.0 97.6 Number of acres developed at phase buildout 0.0 19.5 97.6 195.1 Number of square feet developed during this phase1 0 186,975 747,901 934,876 Number of square feet developed at phase buildout 0 186,975 934,876 1,869,752 Percent leasable space 90% 90% 90% 90%
No. of leasable square feet 0 168,278 841,388 1,682,777 Percent of leasable sq. ft. considered "General Commercial" 100% 100% 100% 100% No. of leasable sq. ft. considered "General Commercial" 0 168,278 841,388 1,682,777 Ave. annual sales volume per sq. ft.2 $234.85 $234.85 $234.85 $234.85 Total annual sales from "General Commercial" development $0 $39,520,012$197,600,060$395,200,121 Total annual sales at phase buildout $0 $39,520,012$197,600,060$395,200,121 City sales tax rate3 1.60% 1.60% 1.60% 1.60%
Annual sales tax revenue collected by City at phase buildout $0 $632,320 $3,161,601 $6,323,202 County-wide Measure A tax rate 0.50% 0.50% 0.50% 0.50%
Amount collected for County-wide Measure A fund $0 $197,600 $988,000 $1,976,001 Percent allocated to the Coachella Valley region 3 24% 24% 24% 24% Amount allocated to the Coachella Valley region $0 $47,424 $237,120 $474,240 Percent allocated to local streets and roads 3 35% 35% 35% 35% Amount allocated to local streets and roads $0 $16,598 $82,992 $165,984 Percent allocated to City of Cathedral City 3 11% 11% 11% 11% Amount allocated to City of Cathedral City $0 $1,826 $9,129 $18,258 Zoning District: Mixed Use - Urban (Commercial Component) Total No. Acres: 195.12
No. of Potential Buildout Sq. Ft.: 1,869,752 sf
Buildout Phase
Land Use Data
Calculation of Total Leasable Square Feet
"General Commercial" Development
Calculation of Total Sales Tax Revenues
Calculation of Measure A Revenues
1 Assumes building covers 22% of lot. The remaining area is used for landscaping, parking, roadway access, and other ancillary uses.2 Average sales per square foot calculated based on Cathedral City tax revenues ($9,711,000 in Transactions and Use Tax in FY2021) and existing commercial area city-wide (4,134,907± SF).3 Total of 1% sales tax based and 1% transactions and use tax (Measure H). Assumes that transaction and use tax represents aaproximately 60% of sales tax.4 Measure A distribution data provided by Riverside County Transportation Commission.

From Future Commercial Development

2.B.a
Packet Pg. 101
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Potential Annexation Fiscal Analysis
City of Cathedral City
SalesTax Rev.

Phase 1 (At
Annexation)
Phase 2 (10% of
Vacant Land
Developed)
Phase 3 (50% of
Vacant Land
Developed)
Phase 4 (Build
Out)
Total sales tax revenue from existing commercial development$944,070 $944,070 $944,070 $944,070 Total sales tax revenue from future mixed use - urban development$0 $632,320 $3,161,601 $6,323,202 Total sales tax revenue from all development $944,070 $1,576,390 $4,105,671 $7,267,272 Phase 1 (At
Annexation)
Phase 2 (10% of
Vacant Land
Developed)
Phase 3 (50% of
Vacant Land
Developed)
Phase 4 (Build
Out)
Total Measure A revenue from existing commercial development$2,726 $2,726 $2,726 $2,726 Total Measure A revenue from future mixed use - urban development$0 $1,826 $9,129 $18,258 Total Measure A revenue from all development $2,726 $4,552 $11,855 $20,984 Buildout Phase
Sales Tax Revenue Summary Table
Buildout Phase
Measure A Revenue Summary Table

2.B.a
Packet Pg. 102
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) TN PD Potential Annexation Fiscal Analysis
City of Palm Desert
Cannabis Tax

Phase 1 (At
Annexation)
Phase 2 (10% of
Vacant Land
Developed)
Phase 3 (50% of
Vacant Land
Developed)
Phase 4 (Build
Out)
Number of acres developed during this phase 0.0 131.8 527.0 658.8 Number of acres developed at phase buildout 0.0 131.8 658.8 1,317.6 Number of square feet developed during this phase1 0 1,951,432 7,805,729 9,757,161 Number of square feet developed at phase buildout 0 1,951,432 9,757,161 19,514,323 Percent developed for cannabis cultivation 5% 5% 5% 5%
No. of leasable square feet 0 97,572 487,858 975,716
Percent of culitivation sq. ft. 80% 80% 80% 80%
No. of cultivation sq. ft. 0 78,057 487,858 975,716
Annual cultivation tax per sq. ft.2 $10.00 $10.00 $10.00 $10.00 Total annual cultivation tax $0 $780,573 $4,878,581 $9,757,161 2 Up to $10 per square foot of culivation provided by Cathedral City Finance Department.

From Future Industrial Development
Cannabis Tax Revenue
Zoning District: Industrial
Total No. Acres: 1317.6
No. of Potential Buildout Sq. Ft.: 19,514,323
Buildout Phase
Land Use Data
Calculation of Total Leasable Square Feet
Cultivation Assumptions
1 Assumes building covers 34% of lot. The remaining area is used for landscaping, parking, roadway access, and other ancillary uses.

2.B.a
Packet Pg. 103
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) TN PD Potential Annexation Fiscal Analysis
City of Palm Desert
Cannabis Tax

Phase 1 (At
Annexation)
Phase 2 (10% of
Vacant Land
Developed)
Phase 3 (50% of
Vacant Land
Developed)
Phase 4 (Build
Out)
Total cannabis tax revenue from future Industrial development $0 $780,573 $4,878,581 $9,757,161 Total sales tax revenue from all development $0 $780,573 $4,878,581 $9,757,161 Cannabis Tax Revenue Summary Table
Buildout Phase

2.B.a
Packet Pg. 104
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Potential Annexation Fiscal Analysis
City of Cathedral City
TOT

Phase 1 (At
Annexation)
Phase 2 (10% of
Vacant Land
Developed)
Phase 3 (50% of
Vacant Land
Developed)
Phase 4 (Build
Out)
Number of acres developed 2.45 2.45 2.45 2.45
Number of rooms developed 115 115 115 115
Average room rate ($ per night)1 $122.69 $122.69 $122.69 $122.69 Average occupancy rate 65% 65% 65% 65%
Annual revenue from all rooms at phase buildout $3,347,443 $3,347,443 $3,347,443 $3,347,443 City's Transient Occupancy Tax Rate 12% 12% 12% 12%
City's annual TOT revenue at phase buildout $401,693 $401,693 $401,693 $401,693 Phase 1 (At
Annexation)
Phase 2 (10% of
Vacant Land
Developed)
Phase 3 (50% of
Vacant Land
Developed)
Phase 4 (Build
Out)
Number of acres developed during this phase 0.00 19.51 78.04 97.55 Number of acres developed at phase buildout 0.00 19.51 97.55 195.11 Number of rooms developed during this phase 0.0 0.0 125.0 125.0 Number of rooms developed at phase buildout 0.0 0.0 125.0 250.0 Average room rate ($ per night)1 $188.75 $188.75 $188.75 $188.75 Average occupancy rate 65% 65% 65% 65%
Annual revenue from all rooms at phase buildout $0 $0 $5,597,617$11,195,234 City's Transient Occupancy Tax Rate 12% 12% 12% 12%
City's annual TOT revenue at phase buildout $0 $0 $671,714 $1,343,428 Phase 1 (At
Annexation)
Phase 2 (10% of
Vacant Land
Developed)
Phase 3 (50% of
Vacant Land
Developed)
Phase 4 (Build
Out)
Annual TOT Revenue from Existing Hotels (at phase buildout)$401,693 $401,693 $401,693 $401,693 Annual TOT Revenue from Future Hotels (at phase buildout)$0 $0 $671,714 $1,343,428 Total Annual TOT Revenue from all development (at phase buildout) $401,693 $401,693 $1,073,407 $1,745,121
Transient Occupancy Tax Revenue
Land Use Buildout Data
Calculation of TOT Revenue
Transient Occupancy Tax Revenue
Summary Table
Buildout Phase
From Existing Development
Zoning District: Mixed Use - Urban (hotel component)
Total No. Acres: 2.45
Existing Rooms: 115
From Future Development
Zoning District: Mixed Use - Urban (commercial component) Total No. Acres: 195.12
Projected No. of Rooms: 250
Buildout Phase
Calculation of TOT Revenue
Land Use Buildout Data
Buildout Phase
1 Based on price trend information for Cathedral City from tripadvisor.com. Price per night averaged over 12 months, exludes taxes and fees, and based on base rates for a nightly stay for 2 adults.
1 Based on price trend information for Cathedral City from tripadvisor.com. The existing hotel is assumed to have rates that are 65% of current average room rate in the City.

2.B.a
Packet Pg. 105
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Potential Annexation Fiscal Analysis
City of Cathedral City
Gas, UUT, Franch Tax

From Exisiting Development
Phase 1 (At
Annexation)
Phase 2 (10% of
Vacant Land
Developed)
Phase 3 (50% of
Vacant Land
Developed)
Phase 4 (Build
Out)
Development Summary
Existing developed acres 1034.98 1034.98 1034.98 1034.98 Existing developed units 4208 4208 4208 4208
Existing population 1 7,967 7,967 7,967 7,967
Estimated annual per capita gas tax revenue 2 $26.22 $26.22 $26.22 $26.22 Annual gas tax revenue at phase buildout $208,895 $208,895 $208,895 $208,895 From Future Development
Phase 1 (At
Annexation)
Phase 2 (10% of
Vacant Land
Developed)
Phase 3 (50% of
Vacant Land
Developed)
Phase 4 (Build
Out)
Development Summary
Number of acres developed during phase 0 206.78 827.12 1033.90 Number of potential units constructed during this phase 0 1738 6954 8692 Number of potential units at phase buildout 0 1738 8692 17384 Average no. persons per household1 2.76 2.76 2.76 2.76
Potential population at phase buildout 0 4,798 23,990 47,980 Estimated annual per capita gas tax revenue 2 $26.22 $26.22 $26.22 $26.22 Annual gas tax revenue at phase buildout $0 $125,803 $629,016$1,258,031 Calculation of Annual Gas Tax Revenue
Highway Users Gas Tax Revenue
1 Average household size provided by Department of Finance E-5 Population and Housing Estimates for Cities, Counties, and the State, Janaury 2021-2023, with 2020 Benchmark.

Buildout Phase
Calculation of Annual Gas Tax Revenue
Zoning District: ALL Residential
Total No. Acres: 1,034.98 ac
No. of Existing Units: 4,208 du
Zoning District: ALL Residential
Total No. Acres: 2,067.78 ac
No. of Potential Buildout Units: 17,244 du
Buildout Phase
1 U.S. Census Bureau, 2020 Census of Population and Housing for Thousand Palms CDP. 2 Based on the Cathedral City Adopted Budget for Fiscal Years 2023-24 and 2024-25 total revenue collected from the State Gas Tax Fund (p.241) divided by total city population.
2 Based on the Cathedral City Adopted Budget for Fiscal Years 2023-24 and 2024-25 total revenue collected from the State Gas Tax Fund (p.241) divided by total city population.

2.B.a
Packet Pg. 106
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Potential Annexation Fiscal Analysis
City of Cathedral City
Gas, UUT, Franch Tax

Phase 1 (At
Annexation)
Phase 2 (10% of
Vacant Land
Developed)
Phase 3 (50% of
Vacant Land
Developed)
Phase 4 (Build
Out)
Total Annual Gas Tax Revenue from Existing Residential
Development $208,895 $208,895 $208,895 $208,895
Total Annual Gas Tax Revenue from Future Residential
Development $0 $125,803 $629,016$1,258,031
Total Annual Gas Tax Revenue from all development $208,895 $334,698 $837,910$1,466,926 Highway User Gas Tax Revenue
Summary Table
Buildout Phase

2.B.a
Packet Pg. 107
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Potential Annexation Fiscal Analysis
City of Cathedral City
Gas, UUT, Franch Tax

From Exisiting Development
Phase 1 (At
Annexation)
Phase 2 (10% of
Vacant Land
Developed)
Phase 3 (50% of
Vacant Land
Developed)
Phase 4 (Build
Out)
Existing developed acres 1034.98 1034.98 1034.98 1034.98 Existing developed units 4208 4208 4208 4208
Existing population1 7,967 7,967 7,967 7,967
Estimated annual per capita Utility Users Tax revenue 2 $63.03 $63.03 $63.03 $63.03 Annual utility users tax revenue at phase buildout $502,160 $502,160 $502,160 $502,160 From Future Development
Phase 1 (At
Annexation)
Phase 2 (10% of
Vacant Land
Developed)
Phase 3 (50% of
Vacant Land
Developed)
Phase 4 (Build
Out)
Number of acres developed during phase 0.00 206.78 827.12 1033.90 Number of potential units constructed during this phase 0 1738 6954 8692 Number of potential units at phase buildout 0 1738 8692 17384 Average no. persons per household1 2.76 2.76 2.76 2.76
Potential population at phase buildout 0 4,798 23,990 47,980 Estimated annual per Utility Users Tax revenue 2 $63.03 $63.03 $63.03 $63.03 Annual utility users tax revenue at phase buildout $0 $302,417$1,512,085$3,024,169 Utility Users Tax
Calculation of Annual Utility Users Tax Revenue
1 U.S. Census Bureau, 2020 Census of Population and Housing for Thousand Palms CDP. 2 Based on the Cathedral City Adopted Budget for Fiscal Years 2023-24 and 2024-25 total revenue collected from the Utility Users' Tax (p.58) divided by total city Zoning District: ALL Residential
Total No. Acres: 2,067.78 ac
No. of Potential Buildout Units: 17,244 du
Buildout Phase
Zoning District: ALL Residential
Total No. Acres: 1,034.98 ac
No. of Existing Units: 4,208 du
Buildout Phase
Development Summary
Development Summary
Calculation of Annual Utility Users Tax Revenue
1 Average household size provided by Department of Finance E-5 Population and Housing Estimates for Cities, Counties, and the State, Janaury 2021-2023, with 2020 Benchmark. 2 Based on the Cathedral City Adopted Budget for Fiscal Years 2023-24 and 2024-25 total revenue collected from the Utility Users' Tax (p.58) divided by total city population.

2.B.a
Packet Pg. 108
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Potential Annexation Fiscal Analysis
City of Cathedral City
Gas, UUT, Franch Tax

Phase 1 (At
Annexation)
Phase 2 (10% of
Vacant Land
Developed)
Phase 3 (50% of
Vacant Land
Developed)
Phase 4 (Build
Out)
Total Annual Utility Users Tax Revenue from Existing
Residential Development $502,160 $502,160 $502,160 $502,160 Total Annual Utility Users Tax Revenue from Future
Residential Development $0 $302,417$1,512,085$3,024,169 Total Annual Utility Users Tax Revenue from all
residential development $502,160 $804,577$2,014,245$3,526,329 Utility Users Tax Revenue
Summary Table
Buildout Phase

2.B.a
Packet Pg. 109
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Potential Annexation Fiscal Analysis
City of Cathedral City
Gas, UUT, Franch Tax

From Exisiting Development
Phase 1 (At
Annexation)
Phase 2 (10% of
Vacant Land
Developed)
Phase 3 (50% of
Vacant Land
Developed)
Phase 4 (Build
Out)
Existing developed acres 1034.98 1034.98 1034.98 1034.98 Existing developed units 4208 4208 4208 4208
Existing population1 7,967 7,967 7,967 7,967
Estimated annual per capita franchise fees revenue 2 $52.18 $52.18 $52.18 $52.18 Annual franchise fees revenue at phase buildout $415,718 $415,718 $415,718 $415,718 From Future Development
Phase 1 (At
Annexation)
Phase 2 (10% of
Vacant Land
Developed)
Phase 3 (50% of
Vacant Land
Developed)
Phase 4 (Build
Out)
Number of acres developed during phase 0.00 206.78 827.12 1033.90 Number of potential units constructed during this phase 0 1738 6954 8692 Number of potential units at phase buildout 0 1738 8692 17384 Average no. persons per household1 2.76 2.76 2.76 2.76
Potential population at phase buildout 0 4,798 23,990 47,980 Estimated annual per capita franchise fees revenue 2 $52.18 $52.18 $52.18 $52.18 Annual franchise fees revenue at phase buildout $0 $250,359$1,251,794$2,503,588 Zoning District: ALL Residential
Total No. Acres: 2,067.78 ac
No. of Potential Buildout Units: 17,244 du
Buildout Phase
Calculation of Annual Franchise Fees Revenue
1 Average household for Cathedral City size provided by Department of Finance E-5 Population and Housing Estimates for Cities, Counties, and the State, Janaury 2021- 2023, with 2020 Benchmark.

Development Summary
Development Summary
2 Based on the Cathedral City Adopted Budget for Fiscal Years 2023-24 and 2024-25 total revenue collected from the Franchise Fees (p.61) divided by total city population.

Franchise Fees Revenue
Zoning District: ALL Residential
Total No. Acres: 1,034.98 ac
No. of Existing Units: 4,208 du
Buildout Phase
Calculation of Annual Franchise Fees Revenue
1 U.S. Census Bureau, 2020 Census of Population and Housing for Thousand Palms CDP. 2 Based on the Cathedral City Adopted Budget for Fiscal Years 2023-24 and 2024-25 total revenue collected from Franchise Fees (p.61) divided by total city population.

2.B.a
Packet Pg. 110
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Potential Annexation Fiscal Analysis
City of Cathedral City
Gas, UUT, Franch Tax

Phase 1 (At
Annexation)
Phase 2 (10% of
Vacant Land
Developed)
Phase 3 (50% of
Vacant Land
Developed)
Phase 4 (Build
Out)
Total Annual Franchise Fees Revenue from Existing Residential Development $415,718 $415,718 $415,718 $415,718
Total Annual Franchise Fees Revenue from Future Residential Development $0 $250,359$1,251,794$2,503,588
Total Annual Franchise Fees Revenue from all residential development $415,718 $666,077$1,667,512$2,919,306
Buildout Phase
Franchise Fees Revenue
Summary Table

2.B.a
Packet Pg. 111
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Potential Annexation Fiscal AnalysisCity of Cathedral City City DIF Fees

Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed)Phase 4 (Build Out) Number of dwelling units constructed during this phase - 1,738 6,954 8,692 Average square footage of new dwelling unit1 2,510 2,510 2,510 2,510New Master Underground Plan rate (per square foot)2 $0.15 $0.15 $0.15 $0.15Total Master Underground Plancollected on new residential development$0.00$654,507.59$2,618,030.37$3,272,537.97 Number of square feet constructed during this phase - 186,975 747,901 934,876 New Master Underground Plan rate (per square foot)2 $0.15 $0.15 $0.15 $0.15 Total Master Underground Plan collected on new commercial development$0.00$28,046.28$112,185.12$140,231.40 Number of square feet constructed during this phase - - - - New Master Underground Plan rate (per square foot)2 $0.15 $0.15 $0.15 $0.15 Total Master Underground Plan collected on new business park development$0.00 $0.00 $0.00 $0.00 Number of square feet constructed during this phase - 1,951,432 7,805,729 9,757,161 New Master Underground Plan rate (per square foot)2 $0.15 $0.15 $0.15 $0.15 Total New Construction Tax collected on new industrial development$0.00$292,714.84$1,170,859.38$1,463,574.22 Total Master Underground Plan Revenue at phase buildout $0.00$975,268.72$3,901,074.87$4,876,343.59 Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed)Phase 4 (Build Out) Number of dwelling units constructed during this phase - 297 1,188 1,485 Average square footage of new dwelling unit2 2,510 2,510 2,510 2,510 Police Facility Fee rate (per square foot)3 $0.47 $0.47 $0.47 $0.47 Total Police Facility Fee collected on new single family residential development$0.00$350,380.64$1,401,522.56$1,751,903.20 Number of dwelling units constructed during this phase - 1,441 5,766 7,207 Average square footage of new dwelling unit2 1,670 1,670 1,670 1,670 Police Facility Fee rate (per square foot)3 $0.66 $0.66 $0.66 $0.66 Total Police Facility Fee collected on new multi-family residential development$0.00$1,588,701.96$6,354,807.84$7,943,509.80 Number of square feet constructed during this phase - 186,975 747,901 934,876 Police Facility Fee rate (per thousand square feet)5 $220.05 $220.05 $220.05 $220.05 Total Police Facility Fee collected on new commercial development$0.00$41,143.89$164,575.57$205,719.46 Number of square feet constructed during this phase 0 0 0 0 Police Facility Fee rate (per thousand square feet)5 $483.63 $483.63 $483.63 $483.63 Total Police Facility Fee collected on new office development $0.00 $0.00 $0.00 $0.00 Number of square feet constructed during this phase - 1,951,432 7,805,729 9,757,161 Police Facility Fee rate (per thousand square feet)5 $48.36 $48.36 $48.36 $48.36 Total Police Facility Fee collected on new industrial development $0.00$94,371.27$377,485.06$471,856.33 Total Police Facility Fee Revenue at phase buildout $0.00$2,074,597.76$8,298,391.03$10,372,988.79 2 Per Assembly Bill (AB) 1600 Development Impact Fee Report for FY 2021/2022, provided by Kevin Biersack, Director of Financial Services. 2 Average square footage per dwelling unit per development permits provided by Cathedral City Build Department. 4 Includes development in the R2 and R3 zoning districts, as well as the residential portion of the Mixed Use - Urban zoning district.

Police Facilities Fee RevenueBuildout Phase
New Multi-Family Residential Development4
New Single Family Residential Development1
New Commercial Development (includes Mixed Use - Urban commercial component) New Industrial Development
5 Per City of Cathedral City AB1600 Fee Justification Nexus Study (September 2023), Police Facilities Fee is $220.05 per 1,000 SF for commercial development, $483.63 per 1,000 SF for office development, and $48.36 per 1,000 SF of industrial development.
1 Includes development in the RE and R1 zoning districts.

Development Impact Fees (One-Time Revenues)
New Commercial Development (includes Mixed Use - Urban commercial component) New Business Park Development
New Industrial Development
Master Underground Plan RevenueBuildout Phase
New Residential Development (includes Mixed Use - Urban residential component) 1 Average square footage per dwelling unit per development permits provided by Cathedral City Build Department.

New Office Development
3 Per City of Cathedral City AB1600 Fee Justification Nexus Study (September 2023), Police Facilities Fee is $0.47 per square foot for single family residential development and $0.66 per square foot for multi- family residential development.

2.B.a
Packet Pg. 112
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Potential Annexation Fiscal AnalysisCity of Cathedral City City DIF Fees

Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed)Phase 4 (Build Out) Number of dwelling units constructed during this phase - 297 1,188 1,485 Average square footage of new dwelling unit2 2,510 2,510 2,510 2,510 Fire Facility Fee rate (per square foot)3 $0.68 $0.68 $0.68 $0.68 Total Fire Facility Fee collected on new single family residential development$0.00$506,933.69$2,027,734.76$2,534,668.45 Number of dwelling units constructed during this phase - 1,441 5,766 7,207 Average square footage of new dwelling unit2 1,670 1,670 1,670 1,670 Fire Facility Fee rate (per square foot)3 $0.95 $0.95 $0.95 $0.95 Total Fire Facility Fee collected on new multi-family residential development$0.00$2,286,767.97$9,147,071.89$11,433,839.87 Number of square feet constructed during this phase - 186,975 747,901 934,876 Fire Facility Fee rate (per thousand square feet)5 $319.36 $319.36 $319.36 $319.36 Total Fire Facility Fee collected on new commercial development $0.00$59,712.40$238,849.59$298,561.99 Number of square feet constructed during this phase - - - - Fire Facility Fee rate (per thousand square feet)5 $701.88 $701.88 $701.88 $701.88Total Fire Facility Fee collected on new office development $0.00 $0.00 $0.00 $0.00 Number of square feet constructed during this phase - 1,951,432 7,805,729 9,757,161 Fire Facility Fee rate (per thousand square feet)5 $70.18 $70.18 $70.18 $70.18 Total Fire Facility Fee collected on new industrial development $0.00$136,951.52$547,806.08$684,757.59 Total Fire Facility Fee Revenue at phase buildout $0.00$2,990,365.58$11,961,462.32$14,951,827.90 2 Average square footage per dwelling unit per development permits provided by Cathedral City Build Department.3 Per City of Cathedral City AB1600 Fee Justification Nexus Study (September 2023), Fire Facilities Fee is $0.68 per square foot for single family residential development and $0.95 per square foot for multi- family residential development.

New Multi-Family Residential Development4
Fire Facilities Fee Revenue
1 Includes development in the RE and R1 zoning districts. 4 Includes development in the R2 and R3 zoning districts, as well as the residential portion of the Mixed Use - Urban zoning district. 5 Per City of Cathedral City AB1600 Fee Justification Nexus Study (September 2023), Fire Facilities Fee is $319.36 per 1,000 SF for commercial development, $701.88 per 1,000 SF for office development, and $70.18 per 1,000 SF of industrial development.

New Office Development
New Industrial Development
Buildout Phase
New Commercial Development (includes Mixed Use - Urban commercial component) New Single Family Residential Development1

2.B.a
Packet Pg. 113
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Potential Annexation Fiscal AnalysisCity of Cathedral City City DIF Fees

Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed)Phase 4 (Build Out) Number of dwelling units constructed during this phase 0 297 1188 1485 Average square footage of new dwelling unit2 2,510 2,510 2,510 2,510 General Government Facilities Fee (per square feet)3 $1.23 $1.23 $1.23 $1.23 Total General Government Facilities fees collected on new single family residential development$0 $916,954$3,667,814$4,584,768 Number of dwelling units constructed during this phase 0 1441 5766 7207 Average square footage of new dwelling unit2 1,670 1,670 1,670 1,670 General Government Facilities Fee (per square feet)3 $1.73 $1.73 $1.73 $1.73 Total General Government Facilities fees collected on new multi-family residential development$0 $4,164,325$16,657,299$20,821,624 Number of acres constructed during this phase - 186,975 747,901 934,876 General Government Facilities Fee (per thousand square feet)5 $579.18 $579.18 $579.18 $579.18 Total General Government Facilities fees collected on new commercial development$0 $108,292$433,169$541,461 Number of square feet constructed during this phase - - - - General Government Facilities Fee (per thousand square feet)5 $1,272.92$1,272.92$1,272.92$1,272.92 Total General Government Facilities fees collected on new office development$0.00 $0.00 $0.00 $0.00 Number of acres developed during this phase 0 1,951,4327,805,7299,757,161 General Government Facilities Fee (per thousand square feet)5 $127.29 $127.29 $127.29 $127.29 Total General Government Facilities fees collected on new industrial development$0 $248,398$993,591$1,241,989 Total General Government Facilities Fee Revenues at phase buildout$0 $4,521,015$18,084,060$22,605,075 New Industrial Development
1 Includes development in the RE and R1 zoning districts.

New Single Family Residential Development1
New Office Development
General Government Facilities Fee RevenueBuildout Phase New Multi-Family Residential Development4
New Commercial Development
2 Average square footage per dwelling unit per development permits provided by Cathedral City Build Department.3 Per City of Cathedral City AB1600 Fee Justification Nexus Study (September 2023), General Government Facilities Fee is $1.23 per square foot for single family residential development and $1.73 per square foot for multi-family residential development. 4 Includes development in the R2 and R3 zoning districts, as well as the residential portion of the Mixed Use - Urban zoning district. 5 Per City of Cathedral City AB1600 Fee Justification Nexus Study (September 2023), General Government Facilities Fee is $579.18 per 1,000 SF for commercial development, $1,272.92 per 1,000 SF for office development, and $268.44 per 1,000 SF of industrial development.

2.B.a
Packet Pg. 114
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Potential Annexation Fiscal AnalysisCity of Cathedral City City DIF Fees

Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed)Phase 4 (Build Out) Number of dwelling units constructed during this phase 0 297 1188 1485 Average square footage of new dwelling unit2 2,510 2,510 2,510 2,510 Transportation Fee (per square feet)3 $0.63 $0.63 $0.63 $0.63 Total Transportation Fees collected on new single family residential development$0 $469,659$1,878,637$2,348,296 Number of dwelling units constructed during this phase 0 1441 5766 7207 Average square footage of new dwelling unit2 1,670 1,670 1,670 1,670 Transportation Fee (per square feet)3 $0.60 $0.60 $0.60 $0.60 Total Transportation Fees collected on new multi-family residential development$0 $1,444,275$5,777,098$7,221,373 Number of square feet constructed during this phase - 186,975 747,901 934,876 Transportation Fee (per thousand square feet)5 $2,106.62$2,106.62$2,106.62$2,106.62 Total Transportation Fees collected on new commercial development at phase buildout$0 $393,886$1,575,543$1,969,428 Number of square feet constructed during this phase - - - - Transportation Fee (per thousand square feet)5 $1,770.12$1,770.12$1,770.12$1,770.12 Total Transportation Fees collected on new office development $0 $0 $0 $0 Number of acres developed during this phase 0 1,951,4327,805,7299,757,161Transportation Fee (per acre)5 $268.44 $268.44 $268.44 $268.44 Total Transportation Fees collected on new industrial development at phase buildout$0 $523,842$2,095,370$2,619,212 Total Transportation Fee Revenues at phase buildout $0 $2,831,662$11,326,647$14,158,309 Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed)Phase 4 (Build Out) Number of dwelling units constructed during this phase 0 297 1188 1485 Average square footage of new dwelling unit2 2,510 2,510 2,510 2,510 Park Facilities Fee (per square feet)3 $3.30 $3.30 $3.30 $3.30 Total Park Facilities Fees collected on new single family residential development$0 $2,460,119$9,840,478$12,300,597 Number of dwelling units constructed during this phase - 1,441 5,766 7,207 Average square footage of new dwelling unit2 1,670 1,670 1,670 1,670 Park Facilities Fee (per square feet)3 $4.65 $4.65 $4.65 $4.65 Total Park Facilities Fees collected on new multi-family residential development$0$11,193,127$44,772,510$55,965,637 Total Park Facilities Fee Revenues at phase buildout $0$13,653,247$54,612,987$68,266,234 Buildout Phase
Buildout Phase
1 Includes development in the RE and R1 zoning districts.

New Single Family Residential Development1
New Multi-Family Residential Development4
2 Average square footage per dwelling unit per development permits provided by Cathedral City Build Department.3 Per City of Cathedral City AB1600 Fee Justification Nexus Study (September 2023), Park Facilities Fee is $3.30 per square foot for single family residential development and $4.65 per square foot for multi- family residential development. 4 Includes development in the R2 and R3 zoning districts, as well as the residential portion of the Mixed Use - Urban zoning district.

Transportation Fee Revenue
1 Includes development in the RE and R1 zoning districts.

New Multi-Family Residential Development4
New Commercial Development
New Industrial Development
New Single Family Residential Development1
Park Facilities Fee Revenue
New Office Development
2 Average square footage per dwelling unit per development permits provided by Cathedral City Build Department.3 Per City of Cathedral City AB1600 Fee Justification Nexus Study (September 2023), Transportation Fee is $0.63 per square foot for single family residential development and $0.60 per square foot for multi- family residential development. 4 Includes development in the R2 and R3 zoning districts, as well as the residential portion of the Mixed Use - Urban zoning district. 5 Per City of Cathedral City AB1600 Fee Justification Nexus Study (September 2023), Transportation Fee is $2,106.62 per 1,000 SF for commercial development, $1,770.12 per 1,000 SF for office development, and $268.44 per 1,000 SF of industrial development.

2.B.a
Packet Pg. 115
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Potential Annexation Fiscal AnalysisCity of Cathedral City City DIF Fees

Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed)Phase 4 (Build Out) New Single Family Residential Development $0 $5,358,554$21,434,216$26,792,770 New Multi-Family Residential Development $0$20,677,197$82,708,787$103,385,984 New Commercial Development $0 $631,081$2,524,322$3,155,403 New Office Development $0 $0 $0 $0
New Industrial Development $0 $1,296,278$5,185,112$6,481,390 Total Development Impact Fee Revenue from all new development at phase buildout$0$27,963,109$111,852,437$139,815,546 Development Impact Fees SummaryBuildout Phase

2.B.a
Packet Pg. 116
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Potential Annexation Fiscal AnalysisCity of Cathedral City City DIF Fees

Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed)Phase 4 (Build Out) Number of square feet constructed during this phase - 186,975 747,901 934,876 Average value (per square foot)1 $256 $256 $256 $256
Total value of commercial dev. at phase buildout $0$47,865,650$191,462,600$239,328,249 1% of valuation of all new commercial development $0 $478,656$1,914,626$2,393,282

0.90 of 1% valuation2 $0 $430,791$1,723,163$2,153,954
Total Art in Public Places fees collected on new commercial development$0 $430,791$1,723,163$2,153,954 Number of square feet constructed during this phase - - - - Average value (per square foot)3 $182 $182 $182 $182
Total value of business park dev. at phase buildout $0 $0 $0 $0 1% of valuation of all new business park development $0 $0 $0 $0

0.90 of 1% valuation2 $0 $0 $0 $0
Total Art in Public Places fees collected on new business park development$0 $0 $0 $0 Number of square feet constructed during this phase - 1,951,432 7,805,729 9,757,161 Average value (per square foot)3 $182 $182 $182 $182
Total value of industrial dev. at phase buildout $0$355,160,679$1,420,642,714$1,775,803,393 1% of valuation of all new industrial development $0 $3,551,607$14,206,427$17,758,034

0.90 of 1% valuation2 $0 $3,196,446$12,785,784$15,982,231 Total Art in Public Places fees collected on new industrial development$0 $3,196,446$12,785,784$15,982,231 Total Art in Public Places Revenue from all new development at phase buildout$0 $3,627,237$14,508,948$18,136,1851 Per average value per square foot of new commercial development permits per Cathedral City Build Department.

New Industrial Development
Buildout Phase
New Commercial Development (includes Mixed Use - Urban commercial component) New Business Park Development
Art in Public Places Fund Revenue
3 Average price per square foot of industrial property for sale in Cathedral City, per LoopNet Commercial Real Estate, https://www.loopnet.com/search/industrial-properties/cathedral-city-ca/for-sale/ (accessed July 2023).
2 Art in Public Places In-Lieu Fee is 1% of 90% of project value, per Assembly Bill (AB) 1600 Development Impact Fee Report for FY 2021/2022, provided by Kevin Biersack, Director of Financial Services.

2.B.a
Packet Pg. 117
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Potential Annexation Fiscal AnalysisCity of Cathedral City City DIF Fees

Phase 1 (At Annexation)
Phase 2 (10% of Vacant Land Developed)
Phase 3 (50% of Vacant Land Developed)Phase 4 (Build Out) New Commercial Development (includes Mixed Use - Urban commercial component)$0 $430,791$1,723,163$2,153,954 New Business Park Development $0 $0 $0 $0
New Industrial Development $0 $3,196,446$12,785,784$15,982,231 Total Art in Public Places Revenue from all new development at phase buildout$0 $3,627,237$14,508,948$18,136,185 Art in Public Places SummaryBuildout Phase

2.B.a
Packet Pg. 118
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Potential Annexation Fiscal Analysis
City of Cathedral City
Government/PW Costs

Phase 1 (At
Annexation)
Phase 2 (10% of
Vacant Land
Developed)
Phase 3 (50% of
Vacant Land
Developed)
Phase 4 (Build
Out)
Number of acres developed at phase buildout 1035.0 1035.0 1035.0 1035.0 Number of dwelling units existing at phase buildout 4,208 4,208 4,208 4,208 Existing Population1 7,967 7,967 7,967 7,967 Cost of General Government (per capita)2 $259.46 $259.46 $259.46 $259.46 Total annual cost of General Government at phase buildout$2,067,118$2,067,118$2,067,118$2,067,118 Phase 1 (At
Annexation)
Phase 2 (10% of
Vacant Land
Developed)
Phase 3 (50% of
Vacant Land
Developed)
Phase 4 (Build
Out)
Number of acres developed during phase 0.0 107.1 428.4 535.5 Maximum density permitted (units/acre) 1 1 1 1
Maximum potential units constructed during this phase1 0 80 321 402 Number of total potential units constructed at phase buildout 0 80 402 803 Average number of persons per household2 2.76 2.76 2.76 2.76 Total no. of potential residents at phase buildout 0 222 1108 2217 Cost of General Government (per capita)3 $259.46 $259.46 $259.46 $259.46 Total annual cost of General Government at phase buildout $0 $57,521 $287,605 $575,209 Phase 1 (At
Annexation)
Phase 2 (10% of
Vacant Land
Developed)
Phase 3 (50% of
Vacant Land
Developed)
Phase 4 (Build
Out)
Number of acres developed during phase 0.0 48.2 192.6 240.8 Maximum density permitted (units/acre) 6 6 6 6
Maximum potential units constructed during this phase1 0 217 867 1083 Number of total potential units constructed at phase buildout 0 217 1083 2167 Average number of persons per household2 2.76 2.76 2.76 2.76 Total no. of potential residents at phase buildout 0 598 2990 5980 Cost of General Government (per capita)3 $259.46 $259.46 $259.46 $259.46 Total annual cost of General Government at phase buildout $0 $155,170 $775,848$1,551,696 Costs of General Government
Zoning District: Single-Family Residential (R1)(6 du/ac) Total No. Acres: 481.5
No. of Potential Buildout Units: 2,167
Buildout Phase
1 Assumes future residential development occurs at 75% of the maximum density permitted.2 Department of Finance E-5 Population and Housing Estimates for Cities, Counties, and the State - Cathedral City, Janaury 2021-2023. 3 Total General Fund Expenditures for Financial Services, Development Services, and General Goverment, FY 2021/2022 Actual (Cathedral City Adopted Budget for Fiscal Years 2023-24 and 2024-25, p.45) divided by total city population (Department of Finance E-5 Population and Housing Estimates for Cities, Counties, and the State, 2021-2023 with 2020 Census Benchmark).

Existing Residential Units
No. of Acres: 1,034.98 1
No. of Dwelling Units: 4,207
Buildout Phase
From Future Residential Development
Zoning District: Residential Estate (RE)(1 du/ac)
Total No. Acres: 1,071.0
No. of Potential Buildout Units: 803
1 Assumes future residential development occurs at 75% of the maximum density permitted.2 Department of Finance E-5 Population and Housing Estimates for Cities, Counties, and the State - Cathedral City, Janaury 2021-2023. 3 Total General Fund Expenditures for Financial Services, Development Services, and General Goverment, FY 2021/2022 Actual (Cathedral City Adopted Budget for Fiscal Years 2023-24 and 2024-25, p.45) divided by total city population (Department of Finance E-5 Population and Housing Estimates for Cities, Counties, and the State, 2021-2023 with 2020 Census Benchmark).

From Existing Residential Development
1 U.S. Census Bureau, 2020 Census of Population and Housing for Thousand Palms CDP. 2 Total General Fund Expenditures for Financial Services, Development Services, and General Goverment, FY 2021/2022 Actual (Cathedral City Adopted Budget for Fiscal Years 2023-24 and 2024-25, p.45) divided by total city population (Department of Finance E-5 Population and Housing Estimates for Cities, Counties, and the State, 2021-2023 with 2020 Census Benchmark).

Buildout Phase
Calculating Annual Costs of General Government
Land Use Buildout Data
Land Use Buildout Data
Calculating Annual Costs of General Government

2.B.a
Packet Pg. 119
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Potential Annexation Fiscal Analysis
City of Cathedral City
Government/PW Costs

Phase 1 (At
Annexation)
Phase 2 (10% of
Vacant Land
Developed)
Phase 3 (50% of
Vacant Land
Developed)
Phase 4 (Build
Out)
Number of acres developed during phase 0.0 8.8 35.0 43.8 Maximum density permitted (units/acre) 12 12 12 12
Maximum potential units constructed during this phase1 0 79 315 394 Number of total potential units constructed at phase buildout 0 79 394 788 Average number of persons per household2 2.76 2.76 2.76 2.76 Total no. of potential residents at phase buildout 0 217 1087 2174 Cost of General Government (per capita)3 $259.46 $259.46 $259.46 $259.46 Total annual cost of General Government at phase buildout $0 $56,419 $282,094 $564,188 Phase 1 (At
Annexation)
Phase 2 (10% of
Vacant Land
Developed)
Phase 3 (50% of
Vacant Land
Developed)
Phase 4 (Build
Out)
Number of acres developed during phase 0.0 13.5 54.0 67.6 Maximum density permitted (units/acre) 24 24 24 24
Maximum potential units constructed during this phase1 0 243 973 1216 Number of total potential units constructed at phase buildout 0 243 1216 2432 Average number of persons per household2 2.76 2.76 2.76 2.76 Total no. of potential residents at phase buildout 0 671 3356 6712 Cost of General Government (per capita)3 $259.46 $259.46 $259.46 $259.46 Total annual cost of General Government at phase buildout $0 $174,144 $870,718$1,741,4351 Assumes future residential development occurs at 75% of the maximum density permitted.2 Department of Finance E-5 Population and Housing Estimates for Cities, Counties, and the State - Cathedral City, Janaury 2021-2023. 3 Total General Fund Expenditures for Financial Services, Development Services, and General Goverment, FY 2021/2022 Actual (Cathedral City Adopted Budget for Fiscal Years 2023-24 and 2024-25, p.45) divided by total city population (Department of Finance E-5 Population and Housing Estimates for Cities, Counties, and the State, 2021-2023 with 2020 Census Benchmark).

Zoning District: Multiple-Family Residential (R2)(12 du/ac) Total No. Acres: 87.5
No. of Potential Buildout Units: 788
Buildout Phase
Buildout Phase
Zoning District: Multiple-Family Residential (R3)(24 du/ac) Total No. Acres: 135.1
No. of Potential Buildout Units: 2,432
1 Assumes future residential development occurs at 75% of the maximum density permitted.2 Department of Finance E-5 Population and Housing Estimates for Cities, Counties, and the State - Cathedral City, Janaury 2021-2023. 3 Total General Fund Expenditures for Financial Services, Development Services, and General Goverment, FY 2021/2022 Actual (Cathedral City Adopted Budget for Fiscal Years 2023-24 and 2024-25, p.45) divided by total city population (Department of Finance E-5 Population and Housing Estimates for Cities, Counties, and the State, 2021-2023 with 2020 Census Benchmark).

Land Use Buildout Data
Calculating Annual Costs of General Government
Land Use Buildout Data
Calculating Annual Costs of General Government

2.B.a
Packet Pg. 120
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Potential Annexation Fiscal Analysis
City of Cathedral City
Government/PW Costs

Phase 1 (At
Annexation)
Phase 2 (10% of
Vacant Land
Developed)
Phase 3 (50% of
Vacant Land
Developed)
Phase 4 (Build
Out)
Number of acres developed during phase 0.0 29.3 117.1 146.3 Maximum density permitted (units/acre) 45 45 45 45
Maximum potential units constructed during this phase1 0 1119 4478 5597 Number of total potential units constructed at phase buildout 0 1119 5597 11194 Average number of persons per household2 2.76 2.76 2.76 2.76 Total no. of potential residents at phase buildout 0 3,090 15448 30896 Cost of General Government (per capita)3 $259.46 $259.46 $259.46 $259.46 Total annual cost of General Government at phase buildout $0 $801,633$4,008,165$8,016,331 Phase 1 (At
Annexation)
Phase 2 (10% of
Vacant Land
Developed)
Phase 3 (50% of
Vacant Land
Developed)
Phase 4 (Build
Out)
Total Annual Cost from existing Residential development at phase buildout$2,067,118$2,067,118$2,067,118$2,067,118 Total Annual Cost from future Residential Estate (RE) Development at phase buildout $0 $57,521 $287,605 $575,209
Total Annual Cost from future Single-Family Residential (R1) Development at phase buildout $0 $155,170 $775,848$1,551,696
Total Annual Cost from future Multiple-Family Residential (R2) Development at phase buildout $0 $56,419 $282,094 $564,188
Total Annual Cost from future Multiple-Family Residential (R3) Development at phase buildout $0 $174,144 $870,718$1,741,435
Total Annual Cost from future Mixed Use - Urban Residential Development at phase buildout $0 $801,633$4,008,165$8,016,331
Total Annual Govt. Costs at Phase Buildout $2,067,118$3,312,004$8,291,547$14,515,977 Buildout Phase
Land Use Buildout Data
Calculating Annual Costs of General Government
1 Assumes future residential development occurs at 75% of the maximum density permitted.2 Department of Finance E-5 Population and Housing Estimates for Cities, Counties, and the State - Cathedral City, Janaury 2021-2023. 3 Total General Fund Expenditures for Financial Services, Development Services, and General Goverment, FY 2021/2022 Actual (Cathedral City Adopted Budget for Fiscal Years 2023-24 and 2024-25, p.45) divided by total city population (Department of Finance E-5 Population and Housing Estimates for Cities, Counties, and the State, 2021-2023 with 2020 Census Benchmark).

Land Use Designation: Mixed Use - Urban (Residential Component) Total No. Acres: 292.68
No. of Potential Buildout Sq. Ft.: 11,195 du
Residential development
Costs of General Government
Buildout Phase

2.B.a
Packet Pg. 121
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Potential Annexation Fiscal Analysis
City of Cathedral City
Government/PW Costs

From Exisiting Development
Phase 1 (At
Annexation)
Phase 2 (10% of
Vacant Land
Developed)
Phase 3 (50% of
Vacant Land
Developed)
Phase 4 (Build
Out)
Number of acres developed at phase buildout 1035 1035 1035 1035 Number of dwelling units existing at phase buildout 4,208 4,208 4,208 4,208 Existing Population1 7,967 7,967 7,967 7,967 Cost of Public Works (per capita)2 $76.33 $76.33 $76.33 $76.33 Total annual cost of Public Works at phase buildout $608,121 $608,121 $608,121 $608,121 From Future Development
Phase 1 (At
Annexation)
Phase 2 (10% of
Vacant Land
Developed)
Phase 3 (50% of
Vacant Land
Developed)
Phase 4 (Build
Out)
Number of acres developed during phase 0 207 827 1034
Number of potential units constructed during this phase 0 1738 6954 8692 Number of potential units at phase buildout 0 1738 8692 17384 Average no. persons per household1 2.76 2.76 2.76 2.76
Potential population at phase buildout 0 4,798 23,990 47,980 1 Department of Finance E-5 Population and Housing Estimates for Cities, Counties, and the State - Cathedral City, Janaury 2021-2023. 2 Total General Fund Expenditures for Engineering/Public Works, FY 2021/2022 Actual (Cathedral City Adopted Budget for Fiscal Years 2023-24 and 2024-25, p.45) divided by total city population (Department of Finance E-5 Population and Housing Estimates for Cities, Counties, and the State, 2021-2023 with 2020 Census Benchmark). $76.33 $76.33 $76.33 $76.33 Annual Public Works cost per capita at phase buildout $0 $366,230$1,831,151$3,662,301 Phase 1 (At
Annexation)
Phase 2 (10% of
Vacant Land
Developed)
Phase 3 (50% of
Vacant Land
Developed)
Phase 4 (Build
Out)
Total Annual Public Works costs from Existing Residential Development $608,121 $608,121 $608,121 $608,121 Total Annual Public Works costs from Future Residential Development$0 $366,230$1,831,151$3,662,301 Total Annual Public Works costs from all residential development $608,121 $974,351$2,439,272$4,270,422 Public Works Costs
Buildout Phase
Calculation of Annual Public Works Cost
1 Department of Finance E-5 Population and Housing Estimates for Cities, Counties, and the State - Cathedral City, Janaury 2021-2023. 2 Total General Fund Expenditures for Engineering/Public Works, FY 2021/2022 Actual (Cathedral City Adopted Budget for Fiscal Years 2023-24 and 2024-25, p.45) divided by total city population (Department of Finance E-5 Population and Housing Estimates for Cities, Counties, and the State, 2021-2023 with 2020 Census Benchmark).

Public Works Costs
Land Use Designation: ALL Residential
Total No. Acres: 2,068
No. of Potential Buildout Units: 17,384 du
Buildout Phase
1 U.S. Census Bureau, 2020 Census of Population and Housing for Thousand Palms CDP. 2 Total General Fund Expenditures for Engineering/Public Works, FY 2021/2022 Actual (Cathedral City Adopted Budget for Fiscal Years 2023-24 and 2024-25, p.45) divided by total city population (Department of Finance E-5 Population and Housing Estimates for Cities, Counties, and the State, 2021-2023 with 2020 Census Benchmark).

Calculation of Total Population
Buildout Phase
Existing Residential Units
No. of Acres: 1,034.98 1
No. of Dwelling Units: 4,207

2.B.a
Packet Pg. 122
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Potential Annexation Fiscal Analysis
City of Cathedral City
Government/PW Costs

Phase 1 (At
Annexation)
Phase 2 (10% of
Vacant Land
Developed)
Phase 3 (50% of
Vacant Land
Developed)
Phase 4 (Build
Out)
Total Annual General Government costs $2,067,118$3,312,004$8,291,547$14,515,977 Total Annual Public Works costs $608,121 $974,351$2,439,272$4,270,422 Total Annual Public Works costs from all residential development $2,675,239$4,286,355$10,730,819$18,786,399 Total Government Costs
Summary Table
Buildout Phase

2.B.a
Packet Pg. 123
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Potential Annexation Fiscal Analysis
City of Cathedral City
Police Protection Costs

From Exisiting Development
Phase 1 (At
Annexation)
Phase 2 (10% of
Vacant Land
Developed)
Phase 3 (50% of
Vacant Land
Developed)
Phase 4 (Build
Out)
Number of acres developed at phase buildout 1035.0 1035.0 1035.0 1035.0 Number of dwelling units existing at phase buildout 4,208 4,208 4,208 4,208 Existing Population1 7,967 7,967 7,967 7,967 Cost of Police Protection (per capita)2 $84.10 $84.10 $84.10 $84.10 Total one-time cost of Police Protection at phase buildout$670,000 $670,000 $670,000 $670,000 From Future Development
Phase 1 (At
Annexation)
Phase 2 (10% of
Vacant Land
Developed)
Phase 3 (50% of
Vacant Land
Developed)
Phase 4 (Build
Out)
Number of acres developed during phase 0 207 827 1034
Number of potential units constructed during this phase 0 1738 6954 8692 Number of potential units at phase buildout 0 1738 8692 17384 Average no. persons per household1 2.76 2.76 2.76 2.76
Potential population at phase buildout 0 4,798 23,990 47,980 Annual Cost of Police Protection (per capita)2 $84.10 $84.10 $17.65 $14.75 Total one-time cost of Police Protection at phase buildout$0 $403,496 $423,362 $707,770 Phase 1 (At
Annexation)
Phase 2 (10% of
Vacant Land
Developed)
Phase 3 (50% of
Vacant Land
Developed)
Phase 4 (Build
Out)
Total One-Time Police Protection costs from Existing
Residential Development $670,000 n/a n/a n/a
Total One-Time Police Protection costs from Future Residential Development $0 $403,496 $423,362 $707,770
Total One-Time Police Protection costs from all residential development $670,000 $403,496 $423,362 $707,770
Calculation of Annual Police Protection Cost
1 Department of Finance E-5 Population and Housing Estimates for Cities, Counties, and the State - Cathedral City, Janaury 2021-2023.

Police Protection Costs
Buildout Phase
2 Phase 3: Total cost for 7 marked and unmarked patrol cards, and equipment for 4 officers and 2 sergents = $454,000, divided by buildout population in SOI. Phase 4:

Total cost of additional 9 marked and unmarked patrol cars, 2 CSO vehicles, 1 evidence utility vehicle, and equipment for 6 officers = $759,000, divided by buildout population in SOI.

Calculation of Total Population
Costs of Police Protection (One-Time)
Land Use Designation: ALL Residential
Total No. Acres: 1,035 ac
No. of Potential Buildout Units: 8,173 du
Buildout Phase
1 Based on average household size of 2.76 people, per Department of Finance E-5 Population and Housing Estimates for Cities, Counties, and the State - Cathedral City, Janaury 2021-2023.

Land Use Designation: ALL Residential
Total No. Acres: 2,068
No. of Potential Buildout Units: 17,394 du
Buildout Phase
2 Total cost for 9 patrol cars and equipment for 8 officers and 2 sergents = $670,000, divided by existing population in SOI.

2.B.a
Packet Pg. 124
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Potential Annexation Fiscal Analysis
City of Cathedral City
Police Protection Costs

From Exisiting Development
Phase 1 (At
Annexation)
Phase 2 (10% of
Vacant Land
Developed)
Phase 3 (50% of
Vacant Land
Developed)
Phase 4 (Build
Out)
Number of acres developed at phase buildout 1035.0 1035.0 1035.0 1035.0 Number of dwelling units existing at phase buildout 4,208 4,208 4,208 4,208 Existing Population1 7,967 7,967 7,967 7,967 Cost of Police Protection (per capita)2 $616.36 $616.36 $616.36 $616.36 Total annual cost of Police Protection at phase buildout$4,910,540 $4,910,540 $4,910,540 $4,910,540 From Future Development
Phase 1 (At
Annexation)
Phase 2 (10% of
Vacant Land
Developed)
Phase 3 (50% of
Vacant Land
Developed)
Phase 4 (Build
Out)
Number of acres developed during phase 0 207 827 1034
Number of potential units constructed during this phase 0 1738 6954 8692 Number of potential units at phase buildout 0 1738 8692 17384 Average no. persons per household1 2.76 2.76 2.76 2.76
Potential population at phase buildout 0 4,798 23,990 47,980 Annual Cost of Police Protection (per capita)2 $616.36 $954.39 $352.37 $263.58 Annual Police Protection cost at phase buildout $0 $4,579,148 $8,453,328$12,646,526 Phase 1 (At
Annexation)
Phase 2 (10% of
Vacant Land
Developed)
Phase 3 (50% of
Vacant Land
Developed)
Phase 4 (Build
Out)
Total Annual Police Protection costs from Existing Residential Development $4,910,540 n/a n/a n/a
Total Annual Police Protection costs from Future Residential Development $0 $4,579,148 $8,453,328$12,646,526
Total Annual Police Protection costs from all residential development $4,910,540 $4,579,148 $8,453,328$12,646,526 Costs of Police Protection (Annual)
Land Use Designation: ALL Residential
Total No. Acres: 1,035 ac
No. of Existing Units: 8,173 du
Buildout Phase
1 Based on average household size of 2.76 people, per Department of Finance E-5 Population and Housing Estimates for Cities, Counties, and the State - Cathedral City, Janaury 2021-2023. 2 Annual cost of 8 officers, 2 sergents, 2 dispatchers, and 1 records specialist = $4,910,560.00, divided by existing population in SOI.

Buildout Phase
Land Use Designation: ALL Residential
Total No. Acres: 2,068
No. of Potential Buildout Units: 17,384 du
Buildout Phase
Calculation of Annual Police Protection Cost
1 Department of Finance E-5 Population and Housing Estimates for Cities, Counties, and the State - Cathedral City, Janaury 2021-2023. 2 Phase 1 and 2: annual cost of 8 officers, 2 sergents, 2 dispatchers, and 1 records specialist = $4,910,560.00, divided by phase buildout population. Phase 3: annual cost of 4 sergents, 12 officers, 4 dispatchers, 2 detectives and 2 records specialist = $9,065,120.00, divided by phase buildout population. Phase 4: annual cost of 1 commander, 4 sergents, 20 officers, 2 detectives, 4 dispatchers, 2 CSOs, 1 evidence technician, and 2 records specialists = $13,561,760.00, divided by buildout population.

Police Protection Costs
Calculation of Total Population

2.B.a
Packet Pg. 125
Attachment: CC Annex - Fiscal Impact Analysis 04.24 (4177 : Sphere of Influence Fiscal Impact Analysis) Potential Annexation Fiscal Analysis
City of Cathedral City
Fire Ambulance Costs