Attachment G - Fiscal and Economic Impact Analysis — San Marcos City Council, May 26, 2026

ATTACHMENT G

FISCAL AND ECONOMIC IMPACT ANALYSIS

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FISCAL IMPACT
S
T
UDY

SANTA FE FLORES

GENERAL PLA
N

AMENDMENT
GPA2
5 -
000
1 SAN MARCOS, CALIFORNIA
MARCH
17 , 2026

www.FinanceDTA.com 18201 Von Karman Ave. # 200
Irvine, CA 92612

CITY OF SAN MARCOS

FISCAL IMPACT
STUDY

SANTA FE
F
LORES
General P
l
an Amendment
(
GPA2
5 -
000
1 )

Prepared for:

City of San Marcos
1 Civic Center Drive
San Marcos
,
CA
Attention:

Sarah Cluff
,
Senior
Planner

1 City of San Marcos
–
Santa Fe Flores
M
a
rch
17 , 2026
Fiscal Impact Study

TABLE

OF CONTENT
S

SECTION
I

EXECUTIVE SUMMARY
................................
...........
2 A
Purpose of the Report
................................
.................
2 B
Types of Fiscal Impacts Evaluated in this
Study
................................
................................
...............
2 C
Fiscal Impact on City General Fund
(Approved Plan vs. Proposed Plan)
..........................
3 D
Market Considerations
................................
................
3 II

INTRODUCTION
................................
.....................
3 A
Scope and Methodology
–
Recurring
Fiscal Impacts
................................
...............................
3 B
Persons Served Calculation
................................
.......
4 C
Case Study Methodology
................................
...........
5 D
Limitations
–
Accuracy of Information
..................
6 III

DESCRIPTION OF RECURRING FISCAL

REVENUES/COSTS
................................
...........................
7 A
Analysis of Recurring Revenues
-
Case
Study Method
................................
...............................
7 B
Analysis of Recurring Revenues
–
Multiplier Method
................................
......................
10 C
Analysis of Recurring Costs
–
Case Study
Method
................................
................................
.........
11 D
Analysis of Recurring Costs
–
Multiplier
Method
................................
................................
.........
12 IV

FISCAL IMPACTS TO THE CITY
.........................
15 A
Total Recurring Revenues
................................
........
15 B
Total Recurring Costs
................................
...............
15 C
Overall Net Fiscal Impact
................................
.........
16 D
Market Considerations
................................
..............
17 APPENDIX A

FISCAL IMPACT STUDY

2 SECTION
III

EXECUTIVE SUMMARY

City of San Marcos
–
Santa Fe Flores
M
a
rch
17 , 2026
Fiscal Impact Study

www.FinanceDTA.com
I

EXECUTIVE

SUMMARY
A
Purpose of the
Report
The objective of this
Fiscal
Impact Study (the “Study”) is to analyze the
fiscal
impacts to the
City of San Marcos (the “City”)
from the zoning and
land use change proposed for
the
development on
the

2.6 acre
property
(the “Project”).

The
project site is located
on the northwest corner of S
o
uth
Santa Fe Ave. and
North
Los
Flores
Drive and
is
north of the 78 freeway
. The p
r
operty is
comprised of Assessor’s Parcel
Numbers (APNs)
217
-
161
-
1 7
-
00,
217
-
161
-
19 -
000 and 217
,161
-
19 -

The Subject site has grown
from 2.5
0 acres previously slated for Commercial and Multi
-
family
Residential R
-
3 -
10 apartments (the “Original” project) to total 2
.60
acres, planned for a 46
-
unit for
-
sale
residential townhome community (
T
he
“Proposed” project).

All of the planned units are
3 bedrooms.

The
building footprint
is approximately

0.89 acres
with

0.82 acres dedicated to
parking.

In aggregate, the seven buildings will comprise approximately 73,952 square feet.

There will be a total of 107 parking spaces, 92 of which will be covered garages.

In addition,
14,795 square feet
of l
andscape
and
common open space will be provided throughout the
development.

Consequently, the Study estimates the fiscal impacts of the Approved Plan and Proposed Plan (collectively, the “Scenarios”) and provides a side -
by
-
side comparison of both
Scenarios.

B
Types of Fiscal Impacts Evaluated in this Study
The fiscal impacts identified in this Study include recurring municipal revenues and costs to the City General Fund that result from the
Project
. The recurring revenues to the
C
ity
identified in this Study are generated from a variety of sources, including property taxes, sales taxes, licenses and permits, franchise fees, fines ,
and other
revenues
. Although these
revenues vary from year to year, they occur on a regular basis and are part of the City’s
budgeting plans on a yearly basis. The recurring
General
Fund expenditures for
the City are
equally important in this analysis.

These r
ecurring costs are associated with a variety of
3 SECTION
III

EXECUTIVE SUMMARY

City of San Marcos
–
Santa Fe Flores
M
a
rch
17 , 2026
Fiscal Impact Study

www.FinanceDTA.com
other services including public safety, public works maintenance ,
and general government
administrative services. Like
the General Fund
revenues, these are costs that the
C
ity must
anticipate and plan for on a yearly basis.

Revenues that are considered non
-
recurring to the
C
ity such as various permitting fees are
excluded from this
Study
.

The reason for excluding them is because new development is generally required to pay specific fees such as grading and building prior to the construction of
a
project. As these are considered one
-
time revenues, there is no expectation that new
development will need to pay these fees a second time. In addition, expenditures
result
ing
from
the Project that are considered to be non
-
recurring
are also excluded from the
Study
.

C
Fiscal Impact on City General Fund (
Approved
Plan
vs. Proposed Plan)
The following table displays the
annual
net fiscal impact to the City under the
Approved
Plan
and the Proposed Plan.

T
able
ES
-
1 :

Annual
Net Fiscal Impact (City General Fund)
Fiscal Impact
Approved
Plan
Proposed Plan
Total Recurring General Fund Revenues
$94,671
$115,754
Total Recurring General Fund Expenditures
($85,199)
($77,751)
Net Fiscal Impact
$9,472
$38,003
Revenue to Expense Ratio

1.11 1.49
As indicated in
Table ES
-
1 above
, under the
Approved
Plan
the overall fiscal impact to the
City General Fund
resulting from revenues generated by development and the recurring costs associated with th
e Project
, is a
n annual
recurring fiscal
surplus
of
$
9 ,
4 7
2 . This total
is based on
$
94 ,
6 7
1 in recurring annual revenue and
$
85,199
in recurring annual costs.

In
this analysis, the total annual
revenue
-
to
-
cost ratio is projected to equal

1. 11
, which
represents a
positive
impact
to the City.

Under the Proposed Plan, the overall fiscal impact to the City General Fund, resulting from revenues generated by the Project and the recurring costs associated with this area is a recurring fiscal
surplus
of
$
38 ,
0 0
3 . This amount is based on
$
1 1
5,7
54 in recurring annual
revenues and
$
77,751
in
r
ecurring
current annual costs (expenditures).

In this analysis, the
total annual
revenue
-
to
-
cost ratio is projected to equal

1. 4
9 , which
represents a positive
impact to the City
.

D
Market Considerations
The primary advantage of the proposed rezone over the original is that the site can provide new for
-
sale product to San Marcos which has strong buyer demand for townhomes coupled with a historical undersupply of new for
-
sale housing. Additionally, t
he site
developed as
p
roposed
t
ownhomes can deliver relatively attainably priced new for -
sale
product to San Marcos, at an average un
it
size which is much larger than the
o
riginal
a
partment unit size.

The proposed project consists of 2 lots with an existing medi um
4 SECTION
III

EXECUTIVE SUMMARY

City of San Marcos
–
Santa Fe Flores
M
a
rch
17 , 2026
Fiscal Impact Study

www.FinanceDTA.com
density residential 2 (MDR2) 15.1
–

20.0 du/ac general plan land use designation and a 0.37 -
acre portion of an adjacent parcel with a commercial (C) designation. The proposed project would re
-
designate both the MDR2 sites and the portion of the commercial si te to medium
high density residential (MHDR), 20.1
–

30.0 du/ac, to develop 46 residential townhome
units.

According to
the Zonda market study, d
rive thru commercial retail performance
remains relatively strong in the right areas and should be attractive t o commuters.

However, the changing face of retail is causing high vacancies and putting downward pressure on rents and further rent correction could occur at secondary commercial retail locations. However, the proposed residential R
-
3 -
6 zoning for
-
sale re
sidential would
introduce needed homes at an attractive price point, fulfilling a deep demand pool of homebuyers looking to move to or purchase in San Marcos.

In addition, there is an extreme
market demand and supply shortage of for
-
sale residential townh
omes, and the for
-
sale
scenario has
the
ability
to translate potential City revenue into actual dollars, whereas the approved project does not.

In addition, t
he area immediately east of the proposed project
is an affordable housing development.

An
advantage of the rezone over the existing use is
that the site can provide new for sale product to San Marcos, which currently does not have new multifamily product.
1 SECTION I

EXECUTIVE SUMMARY

City of San Marcos
–
Santa Fe Flores
M
a
rch 1
7 , 2026
Fiscal Impact
Study
www.FinanceDTA.com
($100,000)
($80,000)
($60,000)
($40,000)
($20,000)
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$94,671
($85,199)
$9,472 Total Recurring General Fund
Revenues
Total Recurring General Fund
Expenditures
Net Fiscal Impact
.

Figure
1 :

Net Fiscal Impact (City General Fund)
–
Approved
Plan

2 SECTION I

EXECUTIVE SUMMARY

City of San Marcos
–
Santa Fe Flores
M
a
rch 1
7 , 2026
Fiscal Impact
Study
www.FinanceDTA.com

Figure
2 :

Net Fiscal Impact (City General Fund)
–
Proposed Plan

($80,000)
($60,000)
($40,000)
($20,000)
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$115,754
($77,751)
$38,003
Total Recurring General Fund
Revenues
Total Recurring General Fund
Expenditures
Net Fiscal Impact
3 SECTION II

INTRODUCTION

City of San Marcos
–
Santa Fe Flores
M
a
rch 1
7 , 2026
Fiscal Impact
Study
www.FinanceDTA.com
II

INTRODUCTION
The objective of this
Fiscal
Impact Study (the “Study”) is to analyze the
fiscal
impacts to
the City of
San Marcos (the “City”) from the zoning and land use change proposed for the development on the 2.
6 acre property (the “Project”).

The project site is located on the northwest corner of South Santa Fe Ave. and North Los Flores Drive and is north of the 78 freeway. The property is comprised of Assessor’s Parcel Numbers (APNs) 217
-
161
-
17 -
00, 217
-
161
-
19 -
000 and 217,161
-
19 -

The existing R
-
3 -
10 zoned properties at 2972 & 2982 S. Santa Fe Ave will also be rezoned to R
-
3 -
6, to be consistent with the other portion of the project site. The Subject site has
grown from 2.5 acres previously slated for Commercial and Multi -
family Residential R
-
3 -
10 apartments (the “Original” project) to total 2.60 acres, planned for a 46 -
unit for
-
sale
residential townhome community (The “Proposed” project).

Based on the market analysis prepared by Zonda Advisory (the “Zonda Analysis”), the (“Approved Plan”) has been assumed to be a 50 Unit Apartment Development (APN’s:217 -
161
-
18 -
00 & 217
-
161
-
19 -
00) plus a 2,821 Commercial Retail Strip Center, (APN: 217 -
161
-
17 -
00). The (“Proposed Plan”) is a 46 Unit
townhome
Development (APN’s: 217
-
161
-
1800;
217
-
161
-
19 -
00; and a 0.37
-
acre portion of 217
-
161
-
17 -
00). All of the planned units are 3
bedrooms. The building footprint is approximately 0.89 acres with 0.82 acres dedic ated
to parking. In aggregate, the seven buildings will comprise approximately 73,952 square feet. There will be a total of 107 parking spaces, 92 of which will be covered garages. In addition, 14,795 square feet of landscape and common open space will be provided
throughout the development.

Consequently, the Study estimates the
fiscal
impacts of the Approved Plan and Proposed
Plan (collectively, the “Scenarios”) and provides a side -
by
-
side comparison of both
Scenarios.

A
Scope and Methodology
–
Recurring Fiscal Impacts
Fiscal impacts arising from a land development plan can be broadly categorized as one of two types
: one
-
time impacts or recurring impacts. Each of these types may, in turn, be divided into a revenue component and a cost component. In this Study
, it is assumed
that one
-
time revenues would directly offset one
-
time costs; thus, the fiscal impacts
considered focus on ongoing, or recurring, fiscal impacts of the Project on the City General Fund
.

Revenues that are generated outside of the City’s General Fund (e.g., special district revenues) or costs are incurred by the City outside of the General Fund (e.g., costs financed through a special district) are
not
included
in
th
e
fiscal
impact
analysis.
4 SECTION II

INTRODUCTION

City of San Marcos
–
Santa Fe Flores
M
a
rch 1
7 , 2026
Fiscal Impact
Study
www.FinanceDTA.com
The fiscal impact analysis presented in this
Study
utilizes two specific methods of
analysis
:

T
he Multiplier
a
pproach
(consisting of three
separate
methodologies,
specifically “Per Capita”, “Per Employee”, and “
Per Capita/Employee
”)
and the Case Study
a
pproach.

Notably, t
he primary Multiplier
approach
used
in this Study
is the
Per
Capita/Employee
m
ethodology, which recognizes the fact that the exact relationship of service demands and revenue generating potential between residents and employees is difficult to quantify. In order to address this challenge, several assumptions are employed.

B
Persons Served Calculation
DTA has determined that utilizing a
Per Capita/Employee
, or Persons Served population,
comprised of all residents and 50% of employees is common fiscal practice in quantifying
the impact of a new development in a given service area.

This number suggests that a
resident generally has twice the fiscal impact of an employee. This methodology involves calculating the average City
-
wide revenues/costs per Persons Served, utilizing the
City’s
Operating Budget for
fiscal year (“FY”)
202
5 -
202
6 (the “City Budget”)
, and applying these
revenue/cost
assumptions
to
the
specific number of Persons Served projected for the
P
roject.

According to information provided by the California Department of Finance Housing and Population Information and the State of California Employees Development Department (EDD), as of
2025
, the City of San Marcos has a resident population of
97,123
and an
employee population base of
45,700
persons. Given the assumptions presented in the
previous paragraph; the City population of
97,123
plus the employee base of (
45,700
x
50%), results in a current Persons Served population of 119,973
for the City of San Marcos.

Table
1 : Persons Served (
Approved
Plan
)
Land Use
1 Residents

Direct
Employees
Persons Served
Commercial Retail
2 1
Apartments
123
123

Total
123
2 124
Notes
:

1. Numbers may not sum due to rounding.

Both
Approved
and Proposed plans presented in this report will generate a Persons Served total, which will be used to calculate recurring fiscal revenue and expenditures to the City General fund. As indicated earlier, the
Approved
Plan consists of
be a 50 Unit
Apartment Development
and
a 2,
821
Commercial Retail Strip Center
.

As illustrated in
Table 1
above
, this scenario projects
2 direct
employees
in
commercial
development
x (50%)
resulting in
1 persons served
and
123
apartment
residents
. The
5 SECTION II

INTRODUCTION

City of San Marcos
–
Santa Fe Flores
M
a
rch 1
7 , 2026
Fiscal Impact
Study
www.FinanceDTA.com
persons served total
s
presented in this table
are
used in the following sections of the
report to generate both revenue and expenditures totals to the City’s General Fund as a result of the implementation of the
Approved
Plan
scenario
.

In contrast, the Proposed Plan scenario consists of
the construction of a
46 -
unit
residential
to
wnhome
buildings
and 107 parking spaces
on the

2. 6
acre
subject
property
and
as indicated
in
Table 2
below,
generating
113 residents and
persons served.

The
persons served total presented in
both of these
table
s
are used in
each of
the following
sections of this report to generate both revenue and expenditures totals to the City’s General Fund due to the implementation of the Proposed Plan scenario.

Table
2 : Persons Served (
Proposed
Plan
)
Land Use
1 Residents
Persons Served
Townhomes
113
113

Total
113
113
Notes
:
1 Numbers may not sum due to rounding.

If necessary, DTA will also use the Per Employee
m
ethodology to project recurring fiscal
factors based on employment only, in areas such as business license revenues.

Similarly,
DTA will use the Per Capita methodology where appropriate to project recurring fiscal factors based on population only. Again,
the Per Employee
m
ethodology
or Per Capita
methodology
involve calculating the average City
-
wide revenues/costs per employee
or
per capita
, utilizing the City Budget, and applying these factors to the specific number of residents or
employees
, respectively,
projected under
each
S
cenario.

Finally, c
ertain revenues and expenditures for which the Multiplier m
ethodology w
as
utilized
,
were not expected to increase one
-
to
-
one with new development
.

Therefore, i
n
order to accurately account for this, DT
A
appl
ied
a series of discount rates to specific
revenues/costs.

Generally,
if needed,
a discount rate
would be
applied to revenues or
expenditures to exclude an administrative/overhead component of the revenue or expenditure that would
likely
not increase one
-
to
-
one with population or employment
g
rowth.

C
Case Study Methodology
While most recurring revenues analyzed in
this Study
are projected using the Multiplier
m
ethodology, some major revenue sources, including Property Taxes and Sales Taxes, were calculated using a Case Study
m
ethodology that involves calculating marginal
revenues to be specifically generated by a particular land use, instead of applying an 6 SECTION II

INTRODUCTION

City of San Marcos
–
Santa Fe Flores
M
a
rch 1
7 , 2026
Fiscal Impact
Study
www.FinanceDTA.com
average City
-
wide revenue factor. For purposes of this
Study
, all recurring revenues and
costs are stated in current (un
-
inflated)
20 25
dollars, based on the assumption that the
relative impacts of inflation in future years will be the same for both of these fiscal impact categories.

D
Limitations
–
Accuracy of Information
The fiscal models in this
Study
contain an analysis of revenues, service costs
(expenditures)
,
and impacts to
the
City resulting from the Project. These models are
based on both (i) information provided to DTA by City staff, and (ii) certain DTA assumptions compiled by DTA from various sources including previous fiscal impact studies prepared by the firm. The sources
of information and basis of the estimates
calculated in the
Study
are stated herein. While DTA is confident that the sources of information are reliable, DTA does not exp
ress an opinion or any other form of assurance
on the accuracy of such information.

Furthermore, t
he analysis of fiscal impacts contained in this
Study
is not considered to
be a “financial forecast” or a “financial projection;” as technically defined by the American Institute of Certified Public Accountants. The word “projection” used within this Study
relates to broad expectations of future events and/or market conditions. Since the analysis contained herein is based on estimates and assumptions that are inherently subject to uncertainty and variation depending on evolving events, DTA c annot represent
that such estimates will definitely be achieved. Some assumptions inevitably will not materialize, and unanticipated events and circumstances may occur. Therefore, the actual results achieved may vary over time from the projections stated throughout this
Study
.

7 SECTION
III

DESCRIPTION OF RECURRING

FISCAL REVENUES/COSTS

City of San Marcos
–
Santa Fe Flores
M
a
rch 1
7 , 2026
Fiscal Impact
Study
www.FinanceDTA.com
III

DESCRIPTION OF RECURRING FISCAL REVENUES/COSTS
This section presents recurring revenue and service cost (expenditure) impacts to the City General Fund for both the
Approved
Plan
and the Proposed Plan, along with the
methodology and assumptions utilized to project these impacts. Detailed numerical analyses of anticipated revenue and service cost (expenditure) impacts are contained in Appendix
A
.

A
Analysis of Recurring Revenues
-
Case Study Method

Property
Taxes
–
Secured and Unsecured
Secured p
roperty tax revenues are projected based on the City’s estimated share of the general one percent (1%) property tax levy. Total projected secured property tax revenues to the City from the Project are estimated at

16.541
% of the basic 1%
property tax levy
, for
Tax Rate Area (
“
TRA
”
)
13 203
. Please refer to
Table 1
on the next
page
and
Exhibit 5
of
Appendix A
for details regarding the secured and unsecured
property tax assumptions utilized in the fiscal impact analysis.

Unsecured property taxes collected in the City are levied on tangible personal property that is not secured by real estate. Examples of unsecured property include trade fixtures (e.g., manufacturing equipment and computers), as well as airplanes, boats, a
nd mobile homes on leased land. In generating the fiscal impact models for this
Study
, DTA has assumed that unsecured property values average 2.75% of the secured value for residential land uses and 10.00% of the secured value for non -
residential land use
s.

Unsecured p
roperty tax revenue generated for both the
Approved
Plan
and Proposed Plan are presented in
Exhibit 5
of
Appendix
A
.

Property
Transfer Tax
Per California Revenue & Taxation Code §11901 et seq. and the San Marcos Municipal Code §3.12.0
3 0, sales of real property are taxed by the County of San Diego (the “County”) at a rate of $1.10 per $1,000 of property value. For property located in the City, the property transfer tax is divided equally between the City and the County, with the City re
ceiving $0.55 per $1,000 of transferred property sale or resale value, excluding assumed liens or encumbrances. Per typical baseline assumptions, DTA assumes t
hat residential development changes ownership at an average rate of 10% per year. DTA also assumes that non
-
residential development changes ownership at
an average rate of 5% per year, and that continuing liens and encumbrances are insignificant.

Property Taxes in
-
Lieu of Vehicle License Fees (VLF)
The passage of Proposition 1A in California in 2004 enacted a constitutional amendment that introduced a new methodology to calculate property taxes in -
lieu
of VLF. Per California Revenue and Taxation Code §97.70, the property tax in -
lieu of
VLF amount no
w grows in proportion to the growth rate of gross assessed valuation in a city or county. Property taxes in
-
lieu of VLF revenues are projected to grow with
8 SECTION
III

DESCRIPTION OF RECURRING

FISCAL REVENUES/COSTS

City of San Marcos
–
Santa Fe Flores
M
a
rch 1
7 , 2026
Fiscal Impact
Study
www.FinanceDTA.com
the change in the City
-
wide gross assessed valuation of taxable property from the prior fiscal year.

Property tax in
-
lieu of VLF revenues constitute an addition to other property tax apportionments and were calculated for purposes of this Study
at $
0 .67 per $1,000
increase in assessed valuation on a City
-
wide basis.

Table
3 presents
details
regarding the property tax assumptions utilized in the fiscal impact analysis.

Table
3 :

Property Tax Assumptions
Property Tax Assumptions
Approved

Plan
Proposed
P
lan
Assessed Valuation
Residential
$18,196,500
$35,436,744
Non
-
residential
$1,579,486
$0

Unsecured Property Tax
(Assumptions apply to both Scenarios)
(As a Portion of the 1% General Property Tax Levy)
TRA
13203
City of San
Marcos

9.591%

9.591%
TRA
13203
Fire District

6.950%

Unsecured Property Tax
(Assumptions apply to both Scenarios)
Residential

2.75%

2.75%
Non
-
residential

10.0%

Property Transfer Tax
(Assumptions apply to both Scenarios)
Residential Property Turnover Rate

10.0%

10.0%
Non
-
residential Property Turnover Rate

5.0%

5.0%
Transfer Tax as a % of Assessed Value

0.11%

0.11%
Property Transfer Tax Passed through to the City

50.0%

Property Tax in
-
Lieu of Vehicle License Fee (VLF)

(Assumptions apply to both Scenarios)

Total San Marcos Gross Assessed Value (VLF Base year)
$7,756,621,947
$7,756,621,947
Total City Property Tax In
-
Lieu of VLF Revenues
$5,191,930
$5,191,930
Property Tax In
-
Lieu of VLF Increase per $1,000 of AV
$0.67
$0.67

S
ales Taxes
Direct sales tax revenues are generated by retail sales from businesses within City limits, with 1.00% of taxable sales receipts passed through to the City.

Exhibit 6
of
Appendix A
reflects estimated taxable sales per square foot for each on -
site, non
-
residential land use type, based on data from the Urban Land Institute’s Dollars & 9 SECTION
III

DESCRIPTION OF RECURRING

FISCAL REVENUES/COSTS

City of San Marcos
–
Santa Fe Flores
M
a
rch 1
7 , 2026
Fiscal Impact
Study
www.FinanceDTA.com
Cents of Shopping Projects
publication and total estimated taxable sales for the
Project, based on development assumptions provided by the City and the
Zonda
Analysis
.

Indirect sales tax revenues, as also summarized in
Exhibit 6
of
Appendix A
, are
projected based on estimated purchases made by residents and employees of the Project within the City. Based on
the methodology
outlined in the International
Council of Shopping Centers’ Office
-
Worker Retail Spending in a Digital Age (2012),
DTA assumed that each on
-
site employee spends
approximately
$
7,437
w
ithin the
City
per year
, while l
ocal
Townhome Residential
household
spending is expected to
be
$
21,721 and local Ap
artment spending is expected to be $14,738
w
ithin the City.

The assumed capture rate for employee spending in the
C
ity is 50%.

Sales tax
assumptions
presented in this Study
are summarized in
Table
4 below.

Table
4 :

Sales Tax Assumptions
Sales Tax Assumptions
Approved
Plan
Proposed

Plan
Percentage of Sales Tax Passed through City of San Marcos

1.00%

1.00%
Local Employee Spending
$7,437
$7,437
Local Residential
Spending
(Townhomes)
-
$21,721
Local Residential Spending (
Apartments)
$14,738
-
Capture Rate of Retail Spending (within the City)
50%
50%
Displacement Rate (existing taxable sales within the City) 20%
20 %
Taxable Sales per Square Foot
–
Commercial Retail
$
5 00
NA
Notes
:

1. Residential spending based on
US Census median income levels for San Marcos
.

Community Facilities District
(“CFD”)
Special Tax Revenue
The Project is currently located in five (5) separate Community Facilities Districts (collectively, the “CFDs”) and will be subject to the applicable special tax for each CFD based on the land uses
anticipated
under each Scenario. Notably, revenues
generated from CFD No. 98
-
02 and CFD No. 2011
-
01 will
not
be
deposited in the
City’s General Fund and have therefore been excluded from this analysis.

Table
5 below and
Exhibit 7
of
Appendix A
summarize the CFD assumptions utilized for the
Approved
Plan
and the Proposed Plan.

10 SECTION
III

DESCRIPTION OF RECURRING

FISCAL REVENUES/COSTS

City of San Marcos
–
Santa Fe Flores
M
a
rch 1
7 , 2026
Fiscal Impact
Study
www.FinanceDTA.com
Table
5 :

CFD
Assumptions
Community Facilities
Approved
Proposed
Fund
District
Plan
Plan
Designation
CFD 98
-
01 IA 1
General Fund
Commercial (Per Acre)
$1,364.20
Office (Per Acre)
$2,728.40
Industrial (Per Acre)
$1,032.90
Residential (Per Unit)
$194.90
CFD 98
-
02 (Zones A
-
E)
Non
-
General
Fund
Commercial (Per Acre)
$1,196.40
Office (Per Acre)
$1,196.43
Industrial (Per Acre)
$796.63
Residential (Per Unit)
$268.00
CFD 98
-
02 (Zone F)
Non
-
General
Fund
Commercial (Per Acre)
NA
Office (Per Acre)
NA
Industrial (Per Acre)
NA
Residential (Per Unit)
NA
CFD 2001
-
01 General Fund
Commercial (Per Acre)
$1,261.10
Office (Per Acre)
$2,522.25
Industrial (Per Acre)
$954.81
Residential (Per Unit)
$180.01
CFD 2011
-
01 Non
-
General
Fund
Commercial (Per Sq. Ft.)
$0.4
6 8
Office (Per Sq. FT)
$0.4
6 8
Industrial (Per Sq. Ft.)
$

1. 2
0 5
3 Residential (Per Unit)
$354.11

B
Analysis of Recurring Revenues
–
Multiplier Method
Utilizing the
Multiplier methodology discussed in Section II (A) of this Study , the
multipliers presented in this section and
i
llustrated in
Table
6 below
quantify the
marginal increase in revenue
for each
specific revenue category as a result of the
proposed development
S
cenario(s).

Additional details on each revenue category are
also provided below.

11 SECTION
III

DESCRIPTION OF RECURRING

FISCAL REVENUES/COSTS

City of San Marcos
–
Santa Fe Flores
M
a
rch 1
7 , 2026
Fiscal Impact
Study
www.FinanceDTA.com
Table
6 :

General Fund Revenues (Multiplier Method)
Revenue Category
Amount
Methodology
Discount
Franchise Fees
$49.26
Persons Served
0%
Licenses and Permits
$2.82
Persons Served
0%
Fines and Forfeitures
$9.37
Persons Served
0%

Franchise Fees
The City receives franchise
fee
revenue from a variety of sources including utility
companies (e.g. electricity, water, trash, etc.), pipelines that run under the C
ity’s
streets, cable TV, taxi, and from companies that operate in the C
ity’s right
-
of
-
way to
provide services for residents (e.g. tow trucks and solid waste haulers). Some franchise taxes (fees) are set dollar amounts that increase each year according to changes in some index, such as the Consumer Price Index. Other franchi se fees are
based on a percentage of utility revenues
.

U
sing the
Per Capita/Employee
Multiplier
approach
,
DTA has projected Franchise
fees at $

49.26 per
p
erson
s served
.

This
number
represents the marginal increase in
revenue per additional persons served in this category
.

Licenses and Permits
Although
Licenses and Permits made up
only
a small portion
of the City’s revenue in
FY
20 2
5 -
20 2
6 , it
is considered an important source of income to the City’s General Fund. In addition to business licenses,
the city imposes fees on a variety of permits
including building, electrical, plumbing, grading, construction ,
and many other
areas.

DTA projects Licenses and Permits at $

2.82 per persons served using the
Per
Capita
/Employee
Multiplier
approach
.

Fines and Forfeitures
To ensure the payment of various licenses and fees, the City’s Municipal Code empowers the City to impose penalties and to collect fines in several areas. Among the significant categories in this section are parking fines, traffic fines, and forfeitures/
penalties for business licenses and franchises. After a careful review of this revenue source, Fines and Forfeiture
have
also
been
projected
using the
Per
Capita/Employee Multiplier
approach,
at $

9.37 per persons served.

C
A
nalysis of
R
ecurring
C
osts
–
Case Study Method

General Government
According to the
City
Budget, the percentage of recurring General Government
overhead (percentage of total recurring General
Fund expenditures) to the City
General Fund non
-
government expenditures
,
is

28.15 %.

This is based on total
general
government expenditures of $
23,2
08,622
and non
-
general
government
12 SECTION
III

DESCRIPTION OF RECURRING

FISCAL REVENUES/COSTS

City of San Marcos
–
Santa Fe Flores
M
a
rch 1
7 , 2026
Fiscal Impact
Study
www.FinanceDTA.com
expenditure of $
82 ,432,038
.

General
Government costs are generated from several
areas including City Council, Administration, Economic Development , City Attorney,
City Clerk, Human Resources/Risk Management, Finance/Information Systems,
and
Real Property Services. Non
-
general
government costs include Public Works,
Development Services, Public Safety,
Parks
and Recreation
,
and other Financing
Sources.

D
A
nalysis of
R
ecurring
C
osts
–
Multiplier Method
Table
7 below quantif
ies
the marginal increase in
expenditures
for
specific
expenditure
category as a result of the proposed development
S
cenario(s).

A detailed description of
each category is also provided below.

Table
7 :

General Fund Costs (Multiplier Method)
Categories
Amount
Methodology
Discount
Public Works
$62.26
Persons Served
0%
Development Services
$60.54
Persons Served
0%
Public Safety
$331.72
Persons Served
0%
Parks
and Recreation
$39.12
Persons Served
0%
Other Financing Sources
$0.00
Persons Served
90%

Public Works
The Public Works Department is responsible for the design, construction, maintenance and management of the City’s vital municipal infrastructure system. It is composed of two divisions, Operations and Engineering. The Operations divisions includes adminis
tration, right
-
of
-
way maintenance, facilities maintenance, fleet
maintenance, and parks and
landscape maintenance
,
and is responsible for the
maintenance and repair of City streets, buildings, flood control, storm drains, street lights, traffic signals, pu
blic places, parks, special districts, vehicles and equipment.

The Engineering division administers and coordinates the capital improvement program, traffic engineering, stormwater maintenance,
and
construction inspection
and management.

The Department also overse
e
s the drafting and execution of related contracts and
agreements; coordination with outside agencies; preparation and administration of capital grant funding; management of City
-
owned asset data; and provides
inspection and acceptance services for development and public infrastructure improvements in
the City
.

DTA projects the combined Public Works Department multiplier at $

62.26 per
persons served using the
Per
-
Capita
/Employee
Multiplier
approach
.

Again, t
his
represents the marginal increase in
expenditure
per additional persons served in this
category
.

13 SECTION
III

DESCRIPTION OF RECURRING

FISCAL REVENUES/COSTS

City of San Marcos
–
Santa Fe Flores
M
a
rch 1
7 , 2026
Fiscal Impact
Study
www.FinanceDTA.com

Development Services
The Development Services
Department handles
a wide array of development activity
from project entitlement approvals to grading permits and serves to address violations of City ordinances related to land use and development. The planning division administers the City’s General Plan and various zonin g and environmental
regulations by analyzing and recommending measures to protect existing resources and to ensure the orderly development of the community that will maintain a
balance between the quality of life, the environment and economic stability of the
City.

The engineering divisions administer and coordinate the capital improvement program, land development engineering, traffic engineering, watershed management, construction inspection and management. The geographic information system (GIS) division supports
municipal services including planning,
infrastructure management, and asset control by providing geospatial data and mapping services. The administration division provides general department oversight and support as well as special projects as ne eded.

Notably,
DTA projects the combined Development Services multiplier at $

60.54 per
persons served using the
Per
-
Capita
/Employee
Multiplier
approach
.

Public Safety
The Public Safety
division
discussed in this section is made up of both Law
Enforcement and Fire services. According to the City
B
udget, this
division
accounts
for
the City’s largest
General
Fund
expenditure
(
over 50.0% of the City’s
annual
General Fund
expenditure)
. The City currently has a contract for police services with the San Diego County Sherriff’s Department.

The City contract for law enforcement
services includes patrol, traffic, community
-
oriented policing, gang and narcotics
details, detectives,
and
clerical and supervisory personnel.

In contrast, the City
operates
its
own Fire Department, which provides services to over 100,000 residents in the 33 square mile San Marcos Fire Protection District ( “
SMFPD
”
). The City itself,
comprises 24 square miles of the
SMFPD.

Based on the City Budget,
DTA projects the combined Public Safety multiplier
at
$
331.72
per persons served using the
Per
Capita
/Employee
Multiplier
approach
.

Parks
and Recreation
The
Parks
and Recreation
department
is responsible for providing programs and
services at the City’s parks and recreation facilities.

Among the specific elements of
the
d
epartment
’
s work
,
are pre
-
school and youth programming, holiday
celebrations, special events, cultural and
performing arts activities, parks and trails
planning,
as well as
aquatics and other
programs
.

San Marcos has 44 park
s
spanning
300 acres
,
and more than
72 miles of trails.

Based on the City Budget,
DTA projects
the
Parks
and Recreation multiplier at $

39.12 per persons served using the
Per
Capita
/Employee
Multiplier
approach
.
14 SECTION
III

DESCRIPTION OF RECURRING

FISCAL REVENUES/COSTS

City of San Marcos
–
Santa Fe Flores
M
a
rch 1
7 , 2026
Fiscal Impact
Study
www.FinanceDTA.com

Other Financing Services
The O
ther
F
inancial Services
category is
comprised of Transfers Out, Annual
Replacement
,
and Rehab Transfers
. In
FY
202
5 -
2 6
it
is
projected to have a combined
multiplier of $

0.00 per persons served using the
Per
Capita
/Employee
Multiplier
approach
as no other financing sources were reported
in the
202
5 -
2 02
6 budget
.

However, as explained in the earlier Scope and Methodology section, a discount rate
of 90%
would have been
applied to this expenditure to exclude an
administrative/overhead component of the expenditure that would not increase one
-
to
-
one with population or employment growth.
15 SECTION
III

FISCAL IMPACTS TO THE CITY

City of San Marcos
–
Santa Fe Flores
M
a
rch 1
7 , 2026
Fiscal Impact
Study
www.FinanceDTA.com
IV

FISCAL IMPACTS

TO THE CITY
A
T
otal
R
ecurring
R
evenues
U
nder the
Approved
Plan
,
total annual incremental recurring
revenues
are projected to
total
$
9 4
,
6 7
1 Notably
Secured Propert
y
Tax
r
evenue
makes up the largest percentage total
(
3 7
.
3 %).

In addition, a
s shown in the table below,
CFD Revenue,
Property In
-
lieu
of Vehicle
License Fees and Direct and Indirect Sales Tax
also make up significant portions of the
revenue to the City.

U
nder the Proposed Plan,
annual incremental recurring revenues
total
$
115
,
7 5
4 .

As
illustrated below in
Table
8 , the largest percentage of revenue generated
under the
Proposed Plan
is
attributed
to
Secured Property
Tax
revenue (

50. 6
%)
.

Other
areas
making
up a significant portion of the revenue to the City include Property In
-
Lieu of Vehicle
License fee
s
and CFD Revenues
.

Exhibits 1 and 11,
in
Appendix A
provide additional details
regarding
all recurring revenues and the assumptions used in their derivation.

Table
8 :

Recurring Fiscal Revenues (City General Fund)
Revenue Category
Approved
Plan
Proposed Plan
Amount
Percent
Amount
Percent
Secured Property Tax
$35,325

37.3%
$58,617

50.6%
Unsecured Property Tax
$1,089

1.2%
$1,612

1.4%
Property Transfer Tax
$1,044

1.1%
$1,965

1.7%
Property In
-
Lieu of Vehicle
License Fee
$11,811

12.5%
$23,151

20.0%
Direct and Indirect Sales tax
$18,690

19.7%
$6,780

5.9%
Franchise Fees
$6,108

6.5%
$5,574

4.8%
Licenses and Permits
$537

0.6%
$490

0.4%
Fines and Forfeitures
$350

0.4%
$319

0.3%
CFD Revenue
$19,717

20.8%
$17,246

14.9%
Total Revenues
$94,671
100.0%
$115,754
100.0%
B
Total
R
ecurring
C
osts
As illustrated in
Table
9 below
, under
the
Approved
Plan
,
the total annual incremental
recurring costs are projected to be
$
85,199
per year. Public Safety (

48.3 %)
and
General
Government (

28.2 %)
make up the largest cost percentage
s in this category
.

Under the
Proposed Plan, the total annual recurring costs are projected to be $
77,751
per year.

Like
the
Approved
Plan, the largest annual costs are expected to be Public Safety and
General
Government
.

Exhibits 1
and
12 , in
Appendix A
provide additional details about all recurring
costs and the assumptions used in their derivation.
16 SECTION
III

FISCAL IMPACTS TO THE CITY

City of San Marcos
–
Santa Fe Flores
M
a
rch 1
7 , 2026
Fiscal Impact
Study
www.FinanceDTA.com
Table
9 :

Recurring Fiscal Costs (City General Fund)
Categories
Approved
Plan
Proposed Plan
Amount
Percent
Amount
Percent
Public Works
$7,720

9.1%
$7,045

9.1%
Development Services
$7,507

8.8%
$6,851

8.8%
Public Safety
$41,133

48.3%
$37,537

48.3%
Parks
and Recreation
$4,851

5.7%
$4,427

5.7%
Other Financing
Sources
$0

0.0%
$0

0.0%
General Government
$23,988

28.2%
$21,891

28.2%
Total
Costs
$85,199
100.0%
$77,751
100.0%
C
O
verall
N
et
F
iscal
I
mpact
Table
10 presented below
,
under the
Approved
Plan
the overall fiscal impact to the City
General Fund, resulting from revenues generated by development is an annual recurring
fiscal surplus of $
9,
47 2
. This total is based on $
94 ,
6 7
1 in recurring annual revenue and
$85,199 in recurring annual costs. In this analysis, the total annual revenue -
to
-
cost ratio is
projected to equal 1.
11 , which represents a positive impact to the City.

Under the Proposed Plan, the overall fiscal impact to the City General Fund, resulting from revenues generated by the Project and the recurring costs associated with this area is a recurring fiscal surplus of $
38 ,
0 03
. This amount is based on $
115
,
7 5
4 in recurring annual
revenues and $77,751 in recurring current annual costs (expenditures). In this analysis, the total annual revenue
-
to
-
cost ratio is projected to equal 1.4
9 , which represents a positive
impact to the City.

Table
10 :

Annual
Net Fiscal Impa
ct (City General Fund)

Fiscal Impact
Approved
Plan
Proposed Plan
Total Recurring General Fund Revenues
$94,671
$115,754
Total Recurring General Fund Expenditures
($85,199)
($77,751)
Net Fiscal Impact
$9,472
$38,003
Revenue to Expense Ratio

1.11 1.49

17 SECTION
III

FISCAL IMPACTS TO THE CITY

City of San Marcos
–
Santa Fe Flores
M
a
rch 1
7 , 2026
Fiscal Impact
Study
www.FinanceDTA.com
D
Market Considerations
The primary advantage of the proposed rezone over the original is that the site can provide new for
-
sale product to San Marcos which has strong buyer demand for townhomes coupled with a historical undersupply of new for
-
sale housing. Additionally, t
he site
developed as
p
roposed
t
ownhomes can deliver relatively attainably priced new for -
sale
product to San Marcos, at an average un
it
size which is much larger than the
o
riginal
a
partment unit size.

The proposed project consists of 2 lots with an existing medium density residential 2 (MDR2) 15.1
–

20.0 du/ac general plan land use designation and a 0.37 -
acre portion of an adjacent parcel with a commercial (C) designation. The proposed project would re
-
d
esignate both the MDR2 sites and the portion of the
c
ommercial site to
m
edium
h
igh
d
en
sity
r
esidential (MHDR), 20.1
–

30.0 du/ac, to develop 46 residential townhome
units.

According to
the Zonda market study, d
rive thru commercial retail performance
remains relatively strong in the right areas and should be attractive to commuters.

However, the changing face of retail is causing high vacancies and putting downward pressure on rents and further rent correction c
ould occur at secondary commercial retail
locations. However, the proposed residential R
-
3 -
6 zoning for
-
sale residential would
intro
duce needed homes at an attractive price point, fulfilling a deep demand pool of homebuyers looking to move to or purchase in San Marcos.

In addition, there is an extreme
market demand and supply shortage of for
-
sale residential townhomes, and the for
-
sale
scenario has
the
ability
to translate potential City revenue into actual dollars, whereas the approved project does not.

In addition, t
he area immediately east of the proposed project
is an affordable housing development.

An
advantage of the rezone ove
r the existing use is
that the site can provide new for sale product to San Marcos, which currently does not have new multifamily product.

APPENDIX A

City of San Marcos
Santa Fe Flores General Plan Amend
ment
Fiscal Impact Report

FISCAL IMPACT
STUDY

CITY BUDGET SUMMARY

DEMOGRAPHICS

CASE STUDY REVENUES

CASE STUDY EXPENDITURES

MULTIPLIER REVENUES

MULTIPLIER EXPENDITURES

PROJECT SUMMARY

CITY OF SAN MARCOS

SANTA FE FLORES TOWNHOMES

FISCAL IMPACT SUMMARY

FISCAL IMPACT ANALYSIS

Page 1 of 17 ends

RECURRING GENERAL FUND REVENUES1 AMOUNT % OF TOTAL AMOUNT % OF TOTAL SECURED PROPERTY TAX $35,325 37.3% $58,617 50.6%
UNSECURED PROPERTY TAX $1,089 1.2% $1,612 1.4%
PROPERTY TRANSFER TAX $1,044 1.1% $1,965 1.7%
PROPERTY TAX IN-LIEU OF VEHICLE LICENSE FEE $11,811 12.5% $23,151 20.0% DIRECT AND INDIRECT SALES TAX $18,690 19.7% $6,780 5.9% FRANCHISE FEES $6,108 6.5% $5,574 4.8%
LICENSES AND PERMITS $537 0.6% $490 0.4%
FINES AND FORFEITURES $350 0.4% $319 0.3%
CFD REVENUE $19,717 20.8% $17,246 14.9%
TOTAL RECURRING GENERAL FUND REVENUES $94,671 100.0% $115,754 100.0% RECURRING GENERAL FUND EXPENDITURES2 AMOUNT % OF TOTAL AMOUNT % OF TOTAL PUBLIC WORKS $7,720 9.061% $7,045 9.061%
DEVELOPMENT SERVICES $7,507 8.811% $6,851 8.811%
PUBLIC SAFETY $41,133 48.279% $37,537 48.278%
PARKS AND RECREATION $4,851 5.694% $4,427 5.694%
OTHER FINANCING USES $0 0.000% $0 0.000%
GENERAL GOVERNMENT $23,988 28.155% $21,891 28.155%
TOTAL RECURRING GENERAL FUND EXPENDITURES $85,199 100.0% $77,751 100.0%

NET FISCAL IMPACT

TOTAL ANNUAL RECURRING GENERAL FUND SURPLUS/(DEFICIT)

TOTAL ANNUAL REVENUE/EXPENDITURE RATIO
NOTES:
1 Please see Exhibits 5-7 and 9 for the derivation of these calculations. 2 Please see Exhibits 8 and 10 for the derivation of these calculations. *All figures subject to rounding

APPROVED PLAN PROPOSED PLAN
$9,472

1.11 $38,003

1.49 APPROVED PLAN PROPOSED PLAN
EXHIBIT 1

CITY OF SAN MARCOS

FISCAL IMPACT SUMMARY

APPROVED PLAN PROPOSED PLAN

SANTA FE FLORES TOWNHOMES

Page 2 of 17 ends

TOTAL GROSS ACRES BUILDING BUILDING ESTIMATED TOTAL BUILDING BUILDING ESTIMATED ESTIMATED TOTAL BUILDING BUILDING ESTIMATED TOTAL BUILDING BUILDING ESTIMATED ESTIMATED TOTAL

SPACE SPACE VALUE ESTIMATED SPACE SPACE VALUE AVERAGE ESTIMATED SPACE SPACE VALUE ESTIMATED SPACE SPACE VALUE AVERAGE ESTIMATED LAND USE TYPE ACRES1 SF1 BSF VALUE2 ACRES1 UNITS1 SF1 BSF VALUATION 2,3 VALUE2 ACRES1 SF1 BSF VALUE2 ACRES1 UNITS1 SF1 BSF VALUATION2,3 VALUE2 GRAND TOTAL 2.60 0.37 2,821 $560 $1,579,486 2.50 50 36,393 $500 $363,930 $18,196,500 0.00 0 $0 $0 1.70 46 73,968 $483 $776,664 $35,726,544 NON-RESIDENTIAL 0.37 2,821 $1,579,486
COMMERCIAL RETAIL STRIP CENTER0.37 2,821 $560 $1,579,486

RESIDENTIAL

NON RESIDENTIAL
-
RESIDENTIAL 2.50 50 36,393 $500 $363,930 $18,196,500
MULTI-FAMILY APARTMENTS 2.50 50 36,393 $500 $363,930 $18,196,500 TOWNHOMES 1.70 46 73,968 $483 $776,664 $35,726,544
NOTES
1 Source: City of San Marcos.
2 Source: Zonda Research
3 "Estimated average sale price" refers to the Estimated closing price per Zonda assumptions. 4 Source: Zonda Research, "Santa Fe Flores 2025
* Totals may not sum due to rounding
EXHIBIT 2

CITY OF SAN MARCOS

PROJECT SUMMARY

SANTA FE FLORES TOWNHOMES

PROPOSED PLANORGINAL PLAN

Page 3 of 17 ends

POPULATION, HOUSEHOLDS, AND EMPLOYMENT (2025)
POPULATION1 97,123 97,123
EMPLOYMENT2 45,700 45,700
TOTAL PERSONS SERVED3 119,973 119,973
HOUSEHOLDS 1 33,157 33,157
MFR AVERAGE HOUSEHOLD SIZE1 2.46 2.46
Multi-family
NOTES
1 California Department of Finance, Housing and Population Information, January 1, 2025 and US Census. 2 Source: Calif. Employment Development Dept. June 2025 EXHIBIT 3

CITY OF SAN MARCOS

SANTA FE FLORES TOWNHOMES

CITY DEMOGRAPHICS
3 Assumes City population plus 50% of employees.

Page 4 of 17 ends

SF PERSONS SF PERSONS

PER DIRECT PERSONS PER DIRECT PERSONS PER DIRECT PERSONS PER DIRECT PERSONS LAND USE TYPE BSF EMPLOYEE2 EMPLOYEES SERVED BSF UNITS HOUSEHOLD1RESIDENTS EMPLOYEES SERVED BSF EMPLOYEE2 EMPLOYEES SERVED BSF UNITS HOUSEHOLD1 RESIDENTS EMPLOYEES SERVED GRAND TOTAL 2,821 2 1 36,393 50 2.46 123 0 123 0 0 0 73,968 46 2.46 113 0 113 NON-RESIDENTIAL 2,821 2 1
COMMERCIAL RETAIL STRIP CENTER2,821 1,221 2 1

RESIDENTIAL 0 0 0 0 0 0

NON-RESIDENTIAL
73,968 46 113 0 113
TOWNHOMES 73,968 46 2.46 113 0 113
RESIDENTIAL 36,393 50 2.46 123 0 123
MULTI-FAMILY APARTMENTS 36,393 50 2.46 123 0 123
NOTES
1 Source: Zonda Research.
2 Source: Commercial Buildings Energy Consumption Survey (CBECS), 2018.

EXHIBIT 4

CITY OF SAN MARCOS

SANTA FE FLORES TOWNHOMES

PROJECT DEMOGRAPHICS

APPROVED PLAN PROPOSED PLAN

Page 5 of 17 ends

APPROVED PROPOSED

LAND USE TYPE PLAN PLAN

ALL PROPERTY TAXES
SECURED PROPERTY TAXES $35,325 $58,617
UNSECURED PROPERTY TAXES $1,089 $1,612
PROPERTY TRANSFER TAXES $1,044 $1,965
PROPERTY TAX IN-LIEU OF VLF $11,811 $23,151
GRAND TOTAL ALL PROPERTY TAXES $49,269 $85,345

RESIDENTIAL PROPERTY TAXES
SECURED PROPERTY TAXES $32,712 $58,617
UNSECURED PROPERTY TAXES $828 $1,612
PROPERTY TRANSFER TAXES $1,001 $1,965
PROPERTY TAX IN-LIEU OF VLF $11,516 $23,151
TOTAL RESIDENTIAL PROPERTY TAXES $46,057 $85,345

NON-RESIDENTIAL PROPERTY TAXES
SECURED PROPERTY TAXES $2,613 $0
UNSECURED PROPERTY TAXES $261 $0
PROPERTY TRANSFER TAXES $43 $0
PROPERTY TAX IN-LIEU OF VLF $295 $0
TOTAL NON-RESIDENTIAL PROPERTY TAXES $3,212 $0

APPROVED PROPOSED

LAND USE TYPE PLAN PLAN

GRAND TOTAL
ESTIMATED BUILDOUT VALUE $19,775,986 $35,726,544
ESTIMATED EXEMPTIONS $0 ($289,800)
ESTIMATED ASSESSED VALUE $19,775,986 $35,436,744
ESTIMATED SECURED PROPERTY TAXES $32,712 $58,617

RESIDENTIAL
ESTIMATED BUILDOUT VALUE $18,196,500 $35,726,544
ESTIMATED EXEMPTIONS ($289,800)
HOMEOWNER'S EXEMPTION (ANNUALLY) 1 $7,000
PERCENT OF SALE UNITS TAKING HOMEOWNER'S EXEMPTION1 90% ESTIMATED ASSESSED VALUE $18,196,500 $35,436,744
ESTIMATED SECURED PROPERTY TAXES $30,100 $58,617

NON-RESIDENTIAL
ESTIMATED BUILDOUT VALUE $1,579,486 $0
ESTIMATED EXEMPTIONS $0 $0
ESTIMATED ASSESSED VALUE $1,579,486 $0
ESTIMATED SECURED PROPERTY TAXES $2,613 $0

APPROVED PROPOSED

LAND USE TYPE PLAN PLAN
GRAND TOTAL $1,089 $1,612

RESIDENTIAL
ESTIMATED UNSECURED PROPERTY TAXES $828 $1,612
UNSECURED TAXES AS A % OF SECURED 2.75%

NON-RESIDENTIAL
ESTIMATED UNSECURED PROPERTY TAXES $261 $0
UNSECURED TAXES AS A % OF SECURED 10.00%
[1] Per the City of San Marcos Housing Needs Assessment 2019 only 9% of City's of housing stock is made up of condominiums/townhouses and mobile homes DTA estimates that 90% of these units will be owner occupied Sinc e 10 % are rented out we use 90% as homeowners exemption number

UNSECURED PROPERTY TAX CALCULATION

SANTA FE FLORES TOWNHOMES

PROPERTY TAX SUMMARY
EXHIBIT 5

CITY OF SAN MARCOS

ESTIMATED PROPERTY TAX REVENUES (CASE STUDY)

SECURED PROPERTY TAX CALCULATION

Page 6 of 17 ends

APPROVED PROPOSED

LAND USE TYPE PLAN PLAN
GRAND TOTAL $1,044 $1,965

RESIDENTIAL
ESTIMATED PROPERTY TRANSFER TAXES $1,001 $1,965
ESTIMATED BUILDOUT VALUE $18,196,500 $35,726,544
TRANSFER TAX AS A % OF ASSESSED VALUE 0.11%
PROPERTY TRANSFER TAX PASSED THROUGH TO CITY OF SAN MARCOS50.00% RESIDENTIAL PROPERTY TURNOVER RATE 10.00%

NON-RESIDENTIAL
ESTIMATED PROPERTY TRANSFER TAXES $43 $0
ESTIMATED BUILDOUT VALUE $1,579,486 $0
TRANSFER TAX AS A % OF ASSESSED VALUE 0.11%
PROPERTY TRANSFER TAX PASSED THROUGH TO CITY OF SAN MARCOS50.00% NON-RESIDENTIAL PROPERTY TURNOVER RATE 5.00%

APPROVED PROPOSED

LAND USE TYPE PLAN PLAN
GRAND TOTAL $11,811 $23,151

RESIDENTIAL
ESTIMATED PROPERTY TAX IN-LIEU OF VLF $11,516 $23,151
ESTIMATED BUILDOUT VALUE $18,196,500 $35,726,544
ESTIMATED EXISTING ASSESSED VALUE $992,179 $1,139,022
PROPERTY TAX IN-LIEU OF VLF INCREASE PER $1,000 OF AV $0.67

NON-RESIDENTIAL
ESTIMATED PROPERTY TAX IN-LIEU OF VLF $295 $0
ESTIMATED BUILDOUT VALUE $1,579,486 $0
ESTIMATED EXISTING ASSESSED VALUE $1,139,022 $0
PROPERTY TAX IN-LIEU OF VLF INCREASE PER $1,000 OF AV $0.67

PROPERTY TAX IN-LIEU OF VEHICLE LICENSE FEE CALCULATION

PROPERTY TRANSFER TAX CALCULATION
EXHIBIT 5 - CONTINUED

CITY OF SAN MARCOS

SANTA FE FLORES TOWNHOMES

ESTIMATED PROPERTY TAX REVENUES (CASE STUDY)

Page 7 of 17 ends

PROPERTY TAX ALLOCATION (AS A PORTION OF THE 1% GENERAL PROPERTY TAX LEVY) CITY OF SAN MARCOS3,4 9.591%
FIRE DISTRICT3,4 6.950%
TOTAL 16.541379%
PROPERTY TRANSFER TAX RATE AND ALLOCATION5
TRANSFER TAX AS A % OF ASSESSED VALUE 0.11%
PROPERTY TRANSFER TAX PASSED THROUGH TO CITY OF SAN MARCOS 50.00%

PROPERTY TAX IN-LIEU OF VLF ASSUMPTIONS
TOTAL CITY OF SAN MARCOS GROSS ASSESSED VALUE6 $7,756,621,947 TOTAL CITY PROPERTY TAX IN-LIEU VLF REVENUES6 $5,191,930 PROPERTY TAX IN-LIEU OF VLF INCREASE PER $1,000 OF AV $0.67 NOTES
1 Estimate, subject to change.
2 Based on typical DTA baseline assumptions.
3 Based on "General Fund" levy for Tax Rate Area (TRA) 13203. Data provided by the County of San Diego Auditor-Controller's Office. 4 Based on the average of the rates for TRA 13112.
5 Source: California Revenue & Taxation Code §11901, et seq.; San Marcos Municipal Code §3.12.020.

PROPERTY TAX AND PROPERTY TRANSFER TAX RATES AND ASSUMPTIONS EXHIBIT 5 - CONTINUED

CITY OF SAN MARCOS

SANTA FE FLORES TOWNHOMES

ESTIMATED PROPERTY TAX REVENUES (CASE STUDY)
6 Source: State Controller's Office Division of Accounting and Reporting, Revenue and Taxation Code Section 97.70 (c)(1)(B)(i) - Vehicle License Fee Adjustment Amounts. ]

Page 8 of 17 ends

APPROVED PROPOSED

LAND USE TYPE PLAN PLAN
GRAND TOTAL $18,690 $6,780

RESIDENTIAL SALES TAXES

DIRECT SALES TAX NA NA

INDIRECT SALES TAX - TAXABLE RESIDENT PURCHASES
TOWNHOMES $0 $6,780
TOTAL RESIDENTIAL SALES TAXES $0 $6,780

NON-RESIDENTIAL SALES TAXES
DIRECT SALES TAX1
COMMERCIAL RETAIL STRIP CENTER $11,284 NA
INDIRECT SALES TAX - TAXABLE EMPLOYEE PURCHASES $37 $0
INDIRECT SALES TAX - TAXABLE RESIDENT PURCHASES $7,369
TOTAL NON-RESIDENTIAL SALES TAXES $18,690 $0
TAXABLE SALES PER SF1
COMMERCIAL RETAIL STRIP CENTER $500.00 $0.00
DISPLACED TAXABLE SALES2 20% 20%
1 Based on typical DTA baseline assumptions.
2 Based on typical DTA baseline assumptions.

EXHIBIT 6

CITY OF SAN MARCOS

ESTIMATED SALES TAX REVENUES (CASE STUDY)

DIRECT SALES TAX ASSUMPTIONS

SALES TAX SUMMARY

SANTA FE FLORES TOWNHOMES

Page 9 of 17 ends

DISPOSABLE INCOME PER HOUSEHOLD (OWNER)
ESTIMATED AVERAGE HOUSEHOLD INCOME (ASSUMES 3:1 INCOME TO HOUSEHOLD PAYMENT RATIO) 1 RESIDENTIAL $176,016

MORTGAGE ASSUMPTIONS

RESIDENTIAL
AVERAGE PROJECTED SALES PRICE PER UNIT $776,664
AVERAGE MORTGAGE (20% DOWN PAYMENT) $621,331
ANNUAL MORTGAGE PAYMENT (6.0% FOR 30 YEARS) $44,702
ADDITIONAL ANNUAL PROPERTY TAXES & HOA $13,970
RETAIL TAXABLE EXPENDITURES (AS A % OF DISPOSABLE INCOME) RESIDENTIAL 24.6810%

RESIDENTIAL SALES TAX ASSUMPTIONS (RENTAL)
DISPOSABLE INCOME PER HOUSEHOLD $105,000
RETAIL TAXABLE EXPENDITURES (AS A % OF DISPOSABLE INCOME) 28.073%

RESIDENTIAL SALES TAX ASSUMPTIONS (AFFORDABLE HOUSING)
DISPOSABLE INCOME PER HOUSEHOLD $74,667
RETAIL TAXABLE EXPENDITURES (AS A % OF DISPOSABLE INCOME) 31.254% EMPLOYEES (ANNUAL SPENDING PER EMPLOYEE)2 $7,437
RESIDENTIAL (ANNUAL SPENDING PER HOUSEHOLD) HOMEOWNER 2 $21,721 RESIDENTIAL (ANNUAL SPENDING PER HOUSEHOLD) RENTAL $14,738 RESIDENTIAL (ANNUAL SPENDING PER HOUSEHOLD) AFFORDABLE HOUSING $10,480 1 Based on typical DTA baseline assumptions.
2 Based on typical DTA baseline assumptions.

RESIDENTIAL / NON-RESIDENTIAL INDIRECT SALES TAX ASSUMPTIONS 2 EXHIBIT 6 - CONTINUED

CITY OF SAN MARCOS

SANTA FE FLORES TOWNHOMES

ESTIMATED SALES TAX REVENUES (CASE STUDY)

RESIDENTIAL INDIRECT SALES TAX ASSUMPTIONS

Page 10 of 17 ends

SALES TAX % TO CITY1 1.00%
CITY RETAIL TAXABLE PURCHASE CAPTURE RATE2 50%
FY 2025-26 AD VALOREM PROPERTY TAX RATE () 1.14247%
PROPOSED SCHOOL CFD 0.00000%
CITY CFD SPECIAL TAXES $997.02

OTHER DIRECT ASSESSMENTS
VECTOR CONTROL $7.92
CWA WATER AVAILABILITY $10.00
MOSQUITO SURVEILLANCE $2.28
MWD WATER STANDBY CHARGE $11.50
SEWER SERVICE CHARGE $467.88
TOTAL ETR 1.335166%
NOTES
1 Estimate, subject to change.
2 Estimate, subject to change.
* All figures subject to rounding
EXHIBIT 6 - CONTINUED

CITY OF SAN MARCOS

SANTA FE FLORES TOWNHOMES

ESTIMATED SALES TAX REVENUES (CASE STUDY)

SAMPLE PROPERTY TAX BILL

CITY INDIRECT SALES TAX ASSUMPTIONS

Page 11 of 17 ends

APPROVED PROPOSED

LAND USE TYPE COMMERCIAL OFFICE RESIDENTIAL COMMERCIAL OFFICE RESIDENTIAL PLAN PLAN TOTAL CFD SPECIAL TAXES $19,717 $17,246
RESIDENTIAL CFD SPECIAL TAXES1
CFD 98-01 IA 1 50 46 $9,745.00 $8,965
CFD 2001-01 (FIRE) 50 46 $9,000.50 $8,280
TOTAL RESIDENTIAL CFD SPECIAL TAXES $18,746 $17,246
NON-RESIDENTIAL CFD SPECIAL TAXES1
CFD 98-01 IA 1 0.37 $505 $0
CFD 2001-01 (FIRE) 0.37 $467 $0
TOTAL NON-RESIDENTIAL CFD SPECIAL TAXES $971 $0

APPROVED PROPOSED

LAND USE TYPE COMMERCIAL OFFICE RESIDENTIAL COMMERCIAL OFFICE RESIDENTIAL PLAN PLAN TOTAL CFD SPECIAL TAXES $32,752 $28,617
RESIDENTIAL CFD SPECIAL TAXES1
CFD 98-02 (ZONES A - E)2 50 46 $13,400.00 $12,328
CFD 98-02 (ZONE F)2, 3 50 46 NA NA
CFD 2011-012, 4 50 46 $17,705.50 $16,289
TOTAL RESIDENTIAL CFD SPECIAL TAXES $31,106 $28,617
NON-RESIDENTIAL CFD SPECIAL TAXES1
CFD 98-02 (ZONES A - E)2 0.37 $443 $0
CFD 98-02 (ZONE F)2, 3 NA NA
CFD 2011-012, 5 2,821 $1,204 $0
TOTAL NON-RESIDENTIAL CFD SPECIAL TAXES $1,647 $0

LAND USE PER ACRE PER SF PER UNIT
RESIDENTIAL1
CFD 98-01 IA 1 $194.90
CFD 2001-01 (FIRE) $180.01
CFD 98-02 (ZONES A - E)2 $268.00
CFD 98-02 (ZONE F)2, 3 NA
CFD 2011-012, 4 $354.11
COMMERCIAL 1
CFD 98-01 IA 1 $1,364.20
CFD 2001-01 (FIRE) $1,261.10
CFD 98-02 (ZONES A - E)2 $1,196.40
CFD 98-02 (ZONE F)2, 3 N/A
CFD 2011-012, 5 $0.4268
OFFICE 1
CFD 98-01 IA 1 $2,728.40
CFD 2001-01 (FIRE) $2,522.25
CFD 98-02 (ZONES A - E)2 $1,196.43
CFD 98-02 (ZONE F)2, 3 NA
CFD 2011-012, 5 $0.4268
INDUSTRIAL 1
CFD 98-01 IA 1 $1,032.90
CFD 2001-01 (FIRE) $954.81
CFD 98-02 (ZONES A - E)2 $796.63
CFD 98-02 (ZONE F)2, 3 NA
CFD 2011-012, 5 $1.2053
NOTES
1 Source: City of San Marcos. Assumes Senior Residential property is charged as Commercial property under the RMA. Subject to confirmation by the City. 2 Special assessments collected from the CFD are deposited into Special Funds, not the General Fund. Therefore, these CFD revenues are excluded from this analysis. 3 No special tax rate for Zone F has been established for the project. 4 "Townhome" Rate, per dwelling unit
5 "Retail" Rate, per building square foot
*All figures subject to rounding
EXHIBIT 7

CITY OF SAN MARCOS

ESTIMATED CFD SPECIAL TAX REVENUES (CASE STUDY)

CFD SPECIAL TAX SUMMARY - GENERAL FUND IMPACTS

SANTA FE FLORES TOWNHOMES
FY 2025-26 SPECIAL TAX RATE

CFD SPECIAL TAX RATE ASSUMPTIONS

CFD SPECIAL TAX SUMMARY - NON-GENERAL FUND IMPACTS (EXCLUDED FROM ANALYSIS) APPROVED ACRES / SQ. FT.

PROPOSED ACRES / SQ FT/ UNITS

PROPOSED ACRES / SQ FT/ UNITS
APPROVED ACRES / SQ. FT.

Page 12 of 17 ends

APPROVED PROPOSED

PLAN PLAN
ESTIMATED RECURRING GENERAL GOVERNMENT OVERHEAD EXPENDITURES1 $23,988 $21,891 TOTAL RECURRING CITY GENERAL FUND EXPENDITURES (EXCLUDING GENERAL GOVERNMENT OVERHEAD)2 $59,223,416 TOTAL RECURRING CITY GENERAL GOVERNMENT OVERHEAD3 $23,208,622 TOTAL RECURRING GENERAL FUND EXPENDITURES $82,432,038
RECURRING CITY GENERAL GOVERNMENT OVERHEAD (% OF TOTAL RECURRING GENERAL FUND EXPENDITURES)3 39.19% MARGINAL INCREASE IN GENERAL GOVERNMENT COSTS 100%
NOTES
1 Based on total recurring project general fund expenditures (excluding general government overhead) from Exhibit 12. 2 Based on City of San Marcos Operating Budget, Fiscal Year 2025 - 2026 *All figures subject to rounding
3 General Government Overhead Expenditures defined as costs for City Council, Administration, Housing and Neighborhood Services, City Attorney, City Clerk, Human Resources/Risk Management, Finance/Information Systems, and Real Property Services.

EXHIBIT 8

CITY OF SAN MARCOS

ESTIMATED GENERAL GOVERNMENT EXPENDITURES (CASE STUDY)

GENERAL GOVERNMENT ASSUMPTIONS

GENERAL GOVERNMENT EXPENDITURES CALCULATION

SANTA FE FLORES TOWNHOMES

Page 13 of 17 ends

APPROVED PROPOSED

REVENUE CATEGORY PLAN PLAN
FRANCHISE FEES $6,108 $5,574
BUILDING PERMIT FEES $537 $490
BUSINESS LICENSE FEES $350 $319
OTHER LICENSE AND PERMITS $1,162 $1,060
TOTAL ESTIMATED MULTIPLIER REVENUES $8,157 $7,443
REVENUE CATEGORY MULTIPLIER1 BASIS

SALES TAX NA CASE STUDY

PROPERTY TAX NA CASE STUDY
FRANCHISE FEES $49.26 PERSONS SERVED
BUILDING PERMIT FEES $4.33 PERSONS SERVED
BUSINESS LICENSE FEES $2.82 PERSONS SERVED
OTHER LICENSE AND PERMITS $9.37 PERSONS SERVED
NOTES
1 Based on City of San Marcos Operating Budget, Fiscal Year 2025-26 *All figures subject to rounding

MULTIPLIER BASED REVENUE ASSUMPTIONS
EXHIBIT 9

CITY OF SAN MARCOS

ESTIMATED MULTIPLIER BASED GENERAL FUND REVENUES

MULTIPLIER BASED GENERAL FUND REVENUE SUMMARY

SANTA FE FLORES TOWNHOMES

Page 14 of 17 ends

APPROVED PROPOSED

EXPENDITURE CATEGORY PLAN PLAN
PUBLIC WORKS $7,720 $7,045
DEVELOPMENT SERVICES $7,507 $6,851
PUBLIC SAFETY $41,133 $37,537
PARKS AND RECREATION $4,851 $4,427
OTHER FINANCING USES $0 $0
TOTAL MULTIPLIER EXPENDITURES $61,211 $55,860
EXPENDITURE CATEGORY MULTIPLIER1 BASIS
PUBLIC WORKS $62.26 PERSONS SERVED
DEVELOPMENT SERVICES $60.54 PERSONS SERVED
PUBLIC SAFETY $331.72 PERSONS SERVED
PARKS AND RECREATION $39.12 PERSONS SERVED
OTHER FINANCING USES $0.00 PERSONS SERVED
NOTES
1 Based on City of San Marcos Operating Budget, Fiscal Year 2025-26 *All figures subject to rounding

MULTIPLIER BASED EXPENDITURE ASSUMPTIONS
EXHIBIT 10

CITY OF SAN MARCOS

ESTIMATED MULTIPLIER BASED GENERAL FUND EXPENDITURES

MULTIPLIER BASED GENERAL FUND EXPENDITURE SUMMARY

SANTA FE FLORES TOWNHOMES

Page 15 of 17 ends

TOTAL REVENUE PROJECTION
REVENUE CATEGORY REVENUES TYPE METHOD DISCOUNT 1 MULTIPLIER

REVENUES INCLUDED IN FISCAL IMPACT ANALYSIS

TAXES AND SPECIAL ASSESSMENTS
SALES TAX $22,009,320 RECURRING CASE STUDY NA NA
PROPERTY TAX $33,863,177 RECURRING CASE STUDY NA NA
SPECIAL TAXES/ASSESSMENTS $7,822,600 RECURRING CASE STUDY NA NA TRANSIENT OCCUPANCY TAX $1,928,000 RECURRING CASE STUDY NA NA TOTAL TAXES AND SPECIAL ASSESSMENTS $65,623,097

LICENSES AND PERMITS
FRANCHISE FEES $5,910,000 RECURRING PERSONS SERVED 0% $49.26 BUILDING PERMIT FEES $520,000 RECURRING PERSONS SERVED 0% $4.33 BUSINESS LICENSE FEES $338,600 RECURRING PERSONS SERVED 0% $2.82 OTHER LICENSE AND PERMITS $1,124,363 RECURRING PERSONS SERVED 0% $9.37 TOTAL LINCENSE AND PERMITS $7,892,963
TOTAL INCLUDED GENERAL FUND REVENUES $65.78

INTERGOVERNMENTAL
STATE MANDATES $255,000 NA NA NA NA
STATE GRANTS $459,500 NA NA NA NA
LOCAL GRANTS $0 NA NA NA NA
COUNTY $320,000 NA NA NA NA
FEDERAL GRANTS $0 NA NA NA NA
TOTAL INTERGOVERNMENTAL $1,034,500
CHARGES FOR SERVICES 3
DEPARTMENTAL SERVICES $10,623,185 NA NA NA NA
REIMBURSEMENTS $4,068,500 NA NA NA NA
TOTAL CHARGES FOR SERVICES $14,691,685

FINES AND FORFITURES
FINES AND FORFITURES $492,000 NA NA NA NA
Total FINES AND FORFITURES $492,000

USE OF MONEY AND PROPERTY
RENTAL INCOME $33,500 NA NA NA NA
PARTNNERSHIP INCOME $540,000 NA NA NA NA
INTEREST INCOME $940,000 NA NA NA NA
TOTAL USE OF MONEY AND PROPERTY $1,513,500

DEVELOPER FEES
DEVELOPER FEES $20,000 NA NA NA NA
DEVELOPER FEES $20,000

MISCELLANEOUS REVENUE
DONATIONS $8,000 NA NA NA NA
OTHER MIS. REVENUE $221,200 NA NA NA NA
TOTAL MISCELLANEOUS REVENUE $229,200

OTHER FINANCING SOURCES
OPERATING TRANSFERS IN - REAL PROPERTY $4,500,000 NA NA NA NA

OPERATING TRANSFERS IN - CREEKSIDE NA NA NA NA
MANAGEMENT $1,425,000 NA NA NA NA
OPERATING TRANSFERS IN - OTHER $966,800 NA NA NA NA
TOTAL OTHER FINANCING SOURCES $6,891,800
TOTAL GENERAL FUND REVENUES + CHARGES FOR SERVICES
TOTAL RECURRING GENERAL FUND REVENUES $98,428,745
NOTES
1 Certain revenues may not be be expected to increase one-to-one with the new development. 2 Source: FY 2025-26 Budget.
3 All Charges for Services are deducted from expenditures on Exhibit 12. 4 Interest income is modeled on a case study basis on Exhibit 8. *All figures subject to rounding
EXHIBIT 11

CITY OF SAN MARCOS
FY 2025-26 GENERAL FUND REVENUE SUMMARY

SANTA FE FLORES TOWNHOMES

Page 16 of 17 ends

CHARGES FOR

TOTAL SERVICES EXPENDITURE PROJECTION
EXPENDITURE CATEGORY EXPENDITURES ADJUSTMENT TYPE METHOD1 DISCOUNT2 MULTIPLIER

EXPENDITURES INCLUDED IN FISCAL IMPACT ANALYSIS

GENERAL GOVERNMENT EXPENDITURES
CITY COUNCIL $276,917 RECURRING CASE STUDY NA NA
ADMINISTRATION $9,931,163 RECURRING CASE STUDY NA NA
COMMUNICATION AND ENGAGEMENT $494,276 RECURRING CASE STUDY NA NA ECONOMIC DEVELOPMENT $676,616 RECURRING CASE STUDY NA NA CITY ATTORNEY $855,000 RECURRING CASE STUDY NA NA
CITY CLERK $838,298 RECURRING CASE STUDY NA NA
HUMAN RESOURCES/ RISK MANAGEMENT $4,521,963 RECURRING CASE STUDY NA NA FINANCE $2,116,422 RECURRING CASE STUDY NA NA
INFORMATION SYSTEMS $3,464,442 RECURRING CASE STUDY NA NA REAL PROPERTY SERVICES ` $33,525 RECURRING CASE STUDY NA NA TOTAL GENERAL GOVERNMENT EXPENDITURES $23,208,622
$23,208,622 $0.00

PUBLIC WORKS
ADMNISTRATION 0.064107187 $739,665 ($260,820) RECURRING PERSONS SERVED 0% $3.99 RIGHT OF WAY MAINTENANCE 0.287728435 $3,319,794 ($1,170,623) RECURRING PERSONS SERVED 0% $17.91 FLEET MAINTENANCE 0.217243508 $2,506,543 ($883,855) RECURRING PERSONS SERVED 0% $13.53 PARK AND LANDSCAPE 0.291173677 $3,359,545 ($1,184,640) RECURRING PERSONS SERVED 0% $18.13 FACILITIES MAINTENANCE 0.139747192 $1,612,395 ($568,561) RECURRING PERSONS SERVED 0% $8.70 TOTAL PUBLIC WORKS 1.0000000 $11,537,942 ($4,068,500)
$7,469,442 PERSONS SERVED 0% $62.26

DEVELOPMENT SERVICES
ADMINISTRATION $1,237,473 RECURRING PERSONS SERVED 0% $10.31 PLANNING $2,077,493 RECURRING PERSONS SERVED 0% $17.32
BUILDING $0 RECURRING PERSONS SERVED 0% $0.00
ENGINEERING $3,009,307 RECURRING PERSONS SERVED 0% $25.08 WATERSHED PROGRAM MANAGEMENT $939,254 RECURRING PERSONS SERVED 0% $7.83 TOTAL DEVELOPMENT SERVICES $7,263,527
$7,263,527 PERSONS SERVED 0% $60.54

PUBLIC SAFETY
FIRE DEPARTMENT $25,324,773 ($5,311,593) RECURRING PERSONS SERVED 0% $166.81 LAW ENFORCEMENT $25,096,100 ($5,311,593) RECURRING PERSONS SERVED 0% $164.91 TOTAL PUBLIC SAFETY $50,420,873 ($10,623,185)
$39,797,688 PERSONS SERVED 0% $331.72

PARKS AND RECREATION
PARKS AND RECREATION $4,692,759 RECURRING PERSONS SERVED 0% $39.12 TOTAL PARKS AND RECREATION $4,692,759 $0
$4,692,759 PERSONS SERVED 0% $39.12

OTHER FINANCING USES
ANNUAL REPLACEMENT/REHAB TRANSFERS $0 RECURRING PERSONS SERVED 90% $0.00 TOTAL OTHER FINANCING SOURCES $0 $0
$0 PERSONS SERVED 90% $0.00
TOTAL INCLUDED EXPENDITURES $97,123,723 $82,432,038

EXPENDITURES EXCLUDED FROM FISCAL IMPACT ANALYSIS
TRANSFERS OUT $831,000 NA NA NA NA
TOTAL EXCLUDED GENERAL FUND EXPENDITURES $831,000
TOTAL GENERAL FUND EXPENDITURES $97,954,723 $82,432,038 Ratio

28.15%
NOTES
1 Persons Served method assumes City population plus 50% of employees. 2 Certain expenditures may not be expected to increase one-to-one with the new development. * Source: FY 2025-26 Budget.
*All figures subject to rounding
EXHIBIT 12

CITY OF SAN MARCOS
FY 2025-26 GENERAL FUND EXPENDITURE SUMMARY

SANTA FE FLORES TOWNHOMES

Page 17 of 17 ends

18201 VON
KARMAN #200
IRVINE
, CA
92612
PHONE (800) 969
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4DTA
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ECONOMIC IMPACT STUDY

SANTA FE FLORES

GENERAL PLAN AMENDMENT
GPA
25 -
000
1 SAN MARCOS, CALIFORNIA
March
16 ,
2026

www.FinanceDTA.com
18201 Von Karman #200
Irvine, CA
92612

CITY OF SAN MARCOS

ECONOMIC IMPACT REPORT

SANTA FE FLORES GENERAL PLAN AMENDMENT
(GPA
25 -
000
1 )
Prepared for:

City of San Marcos
1 Civic Center Drive
San Marcos, CA 92069
Attention:

Sarah Cluff
,
Senior
Planner

1 City of San Marcos
M
a
r
c
h
1 6
, 2026
Economic Impact Study

TABLE

OF CONTENT
S

SECTION
PAGE
I

EXECUTIVE SUMMARY
................................
...........
2 A
Purpose of the Study
................................
...................
2 B
Types of Economic Impacts Evaluated in
the Study
................................
................................
.......
2 C
Economic Impact Conclusions
................................
.
3 D
Market Considerations
................................
................
4 II

INTRODUCTION
................................
.....................
6 A
Scope and Methodology
................................
............
6 B
Limitations
–
Accuracy of Information
..................
9 III

ECONOMIC IMPACTS
................................
..........
10 A
Recurring Economic Impacts
................................
..
10 B
One
-
Time Employment and Output
Impacts (Construction)
................................
............
13 C
Market Considerations
................................
..............
15 APPENDICES

APPENDIX A

ECONOMIC IMPACT MODEL,

APPROVED PLAN

APPENDIX B

ECONOMIC IMPACT MODEL,

PROPOSED PLAN
2 SECTION
III

EXECUTIVE SUMMARY

City of San Marcos
M
a
r
c
h
1 6
, 2026
Economic Impact Study

www.FinanceDTA.com
I

EXECUTIVE SUMMARY
A
Purpose of the Study
The objective of this
Economic
Impact Study (the “Study”) is to analyze the
economic
impacts to the
City of San Marcos (the “City”) from the zoning and land use change proposed for the development on the 2.
6 -
acre property (the “Project”).

The project site is located on the northwest corner of South Santa Fe Ave. and North Los Flores Drive and is north of the 78 freeway. The property is comprised of Assessor’s Parcel Numbers (APNs) 217
-
161
-
17 -
00, 217
-
161
-
19 -
000 and 217,161
-
19 -

00. The projec
t consists of
a Multi
-
Family Site Development Plan modification to GPA 21
-
0008 and Tentative
Subdivision Map for construction of 46 residential townhomes on 2.6 acres. The project includes a General Plan Amendment and Rezone from Commercial (C) to Multi -
Fa
mily
Residential (R
-
3 -
6) to add a 0.37
-
acre portion of the 2966 S. Santa Fe Avenue property. The existing R
-
3 -
10 zoned properties at 2972 & 2982 S. Santa Fe Ave will also be rezoned to R -
3 -
6, to be consistent with the other portion of the project site. The Subject site has grown
from 2.5 acres previously slated for Commercial and Multi -
family Residential R
-
3 -
10 apartments (the “Original” project) to total 2.60 acres, planned for a 46 -
unit for
-
sale
residential townhome community (The “Proposed” project).

Based on the market analysis prepared by Zonda Advisory (the “Zonda Analysis”), the (“Approved Plan”) has been assumed to be a 50 Unit Apartment Development (APN’s:217 -
161
-
18 -
00 & 217
-
161
-
19 -
00) plus a 2,821 Commercial Retail Strip Center, (APN: 217 -
161
-
17 -
00). The (“Proposed Plan”) is a 46 Unit
townhome
Development (APN’s: 217
-
161
-
1800; 217
-
161
-
19 -
00; and a 0.37
-
acre portion of 217
-
161
-
17 -
00). All of the planned units are 3
bedrooms. The building footprint is approximately 0.89 acres with 0.82 acres dedic ated to
parking. In aggregate, the seven buildings will comprise approximately 73,952 square feet.

There will be a total of 107 parking spaces, 92 of which will be covered garages. In addition, 14,795 square feet of landscape and common open space will be provided throughout the
development. Consequently, the Study estimates the economic impacts of the Approved Plan and Proposed Plan (collectively, the “Scenarios”) and provides a side -
by
-
side
comparison of both Scenarios.

B
Types
o
f Economic Impacts Evaluated in the Study
The Study identifies the general economic impacts that would occur due to the Project and quantifies these impacts wherever possible.

General economic impacts include additions
to employment (number of average annual full
-
and
part
-
time jobs) and economic output
(e.g., gross receipts) in the City.

The Study also distinguishes between one
-
time impacts and permanent impacts.

One
-
time
impacts include benefits that occur on a non
-
recurring basis as a result of construction
activity, while permanent impacts refer to benefits that occur on a continuing basis, year after year.

Generally, first, there is a one
-
time impact from the construction of a facility.
3 SECTION
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EXECUTIVE SUMMARY

City of San Marcos
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Economic Impact Study

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Then, after the construction phases are complete, firms have a recurring impact on the economy through their ongoing operations.

Economic impact studies also operate under the basic assumption that any increase in spending has three effects:
direct, indirect, and induced.

First, there is a direct effect caused
by the additional output of goods or services.

Second, there is a ripple of indirect effects on
all of the industries whose outputs are used by various industries and by a firm’s supply chain.

Third, there are induced effects that arise when employment increases in the region and stimulates greater household spending.

C
Economic Impact Conclusions
The economic impact of the
Approved
Plan
and the Proposed Plan are analyzed separately
within the Study
.

I
n order to quantify the findings, t
he Study has
evaluated
the
following
elements
as the major indicators of the economic impact
: (i) Permanent Employment
–
direct
-
on
-
site and indirect/induced (which supplies or supports direct employment), (ii) Permanent Output (Gross Receipts)
–
total direct output plus output produced by suppliers
and employee spending, and (iii) One
-
Time Constr
uction Impacts.

C.1
Recurring Impacts
As illustrated in
Tables ES
-
1 and
ES
-
2 below, Permanent Employees
are higher under
the Approved Plan while
permanent Gross Receipts
are
higher under the
Proposed
Plan. The number of employees listed in the Tables below; two
(
2 ) for the
Approved
Plan and
zero
(
0 ) for the Proposed Plan refer solely to Direct Employment as opposed to the Employment totals presented in
Tables ES
-
3 and
ES
-
4 , which refer to both
Direct and Indirect/Induced Total Employees.

Table ES
-
1 :

Permanent (Recurring) Employment and Overall Economic Output Approved
Plan
Recurring Impacts
Direct
Indirect
/
Induced
Total
Employees
City of San Marcos
2 0
2 Overall Output
City of San Marcos
$871,680
$103,972
$975,652

4 SECTION
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EXECUTIVE SUMMARY

City of San Marcos
M
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1 6
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Economic Impact Study

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Table ES
-
2 :

Permanent (Recurring) Employment and Overall Economic Output Proposed Plan
Recurring Impacts
Direct
Indirect
/
Induced
Total
Employees
City of San Marcos
0 0
0 Overall Output
City of San Marcos
$999,176
$253,381
$1,252,557
In addition,
DTA has estimated that the direct and indirect/induced effects on the City to total
$
975,562
for the
Approved
Plan and
$
1,252,557
for the Proposed Plan
.

C.2
One
-
Time Impacts
In
addition
,
the number of
o
ne
-
t
ime
c
onstruction
e
mployees
is
almost
twice the
number
under the Proposed
t
han in the
Approved
Plan
.
(
It
’
s important to note that
the townhomes
are about twice the square footage as the apartment units) In
addition
, the Gross receipts are
also expected to be higher under the
Proposed
Plan
.

The
t
ables present
ed in this section summarize
the major conclusions related to the
One
-
Time
economic impacts of
both
the
Approved
Plan
and the Proposed Plan
.

Table ES
-
3 :

Construction (One
-
Time) Employment and Overall Economic Output
Approved
Plan
One
-
Time Impact
Direct
Indirect
/
Induced
Total
Employees
City of San Marcos
65 40
105
Overall Output
City of San Marcos
$11,342,563
$4,615,938
$15,958,501

Table ES
-
4 :

Construction (One
-
Time) Employment and Overall Economic Output

Proposed Plan
One
-
Time Impact
Direct
Indirect/Induced
Total
Employees
City of San Marcos
122
80 202
Overall Output
City of San Marcos
$21,831,600
$10,489,695
$32,321,295
D
Market Considerations
The primary advantage of the proposed rezone over the original is that the site can provide new for
-
sale product to San Marcos which has strong buyer demand for townhomes coupled with a historical undersupply of new for
-
sale housing. Additionally, t
he site
developed as
p
roposed
t
ownhomes can deliver relatively attainably priced new for -
sale
5 SECTION
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EXECUTIVE SUMMARY

City of San Marcos
M
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c
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1 6
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Economic Impact Study

www.FinanceDTA.com
product to San Marcos, at an average un
it
size which is much larger than the
o
riginal
a
partment unit size.

The proposed project consists of 2 lots with an existing medium density residential 2 (MDR2) 15.1
–

20.0 du/ac general plan land use designation and a 0.37 -
acre portion of an adjacent parcel with a commercial (C) designation. The proposed project would re
-
d
esignate both the MDR2 sites and the portion of the commercial site to medium high density residential (MHDR), 20.1
–

30.0 du/ac, to develop 46 reside
ntial townhome
units.

According to
the Zonda market study, d
rive thru commercial retail performance
remains relatively strong in the right areas and should be attractive to commuters.

However, the changing face of retail is causing high vacancies and putting downward pressure on rents and further rent correction c
ould occur at secondary commercial retail
locations. However, the proposed residential R
-
3 -
6 zoning for
-
sale residential would
introduce needed homes at an attractive price point, fulfilling a de ep demand pool of
homebuyers looking to move to or purchase in San Marcos.

In addition, there is an extreme
market demand and supply shortage of for
-
sale residential townhomes, and the for
-
sale
scenario has
the
ability
to translate potential City revenue into actual dollars, whereas the approved project does not.

In addition, t
he area immediately east of the proposed project
is an affordable housing development.

An
advantage of the rezone over the existing use is
that the site can provide new for sale pr
oduct to San Marcos, which currently does not have
new multifamily product.
6 SECTION II

INTRODUCTION

City of San Marcos
M
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r
c
h
1 6
, 2026
Economic Impact Study

www.FinanceDTA.com
II

INTRODUCTION
The objective of this Economic Impact Study (the “Study”) is to analyze the economic impacts to the City of San Marcos (the “City”) from the zoning and land use change proposed for the development on the 2.6
-
acre property (the “Project”).

The project site is located on the northwest corner of South Santa Fe Ave. and North Los Flores Drive and is north of the 78 freeway. The property is comprised of Assessor’s Parcel Numbers (APNs) 217
-
161
-
17 -
00, 217
-
161
-
19 -
000 and 217,161
-
19 -

Consequently, the Study estimates the
economic
impacts of the Approved Plan and
Proposed Plan (collectively, the “Scenarios”) and provides a side -
by
-
side comparison of
both Scenarios.

A
Scope
a
nd Methodology
A.1
Approach
The Study identifies the general economic impacts that would occur with the
development of the
Approved
Plan
and the Proposed Plan individually and
quantifies these impacts wherever possible.

General economic impacts include
additions to employment (number of average annual full
-
and
part
-
time jobs), and
economic output (e.g., gross receipts).

The Study also distinguishes between one
-
time economic impacts and permanent economic impacts.

One
-
time impacts
include benefits to the community that occur on a non
-
recurring basis as a result
7 SECTION II

INTRODUCTION

City of San Marcos
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Economic Impact Study

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of construction and development activity, while permanent, recurring impacts refer to benefits that occur on a continuing basis, year after year .

Additionally, for
purposes of the Study, all economic impacts are stated in constant (un -
inflated)
202
5 dollars, based on the assumption that the relative impacts of inflation in future years may be difficult to gauge.

Furthermore, i
n evaluating economic impacts, the Study quantifies both direct and indirect/induced economic impacts on the City
.

Direct economic impacts
reflect the initial or first
-
round increases in jobs and output, all of which occur
directly on
-
site.

Indirect/induced economic impacts are the secondary and other additional rounds of economic activity that occur as a consequence of the direct impacts and can occur elsewhere within the City.

The indirect impacts represent
the economic activity
–
buying and selling of
goods and services
–
of suppliers to
the land use types analyzed.

In this Study, suppliers to the Proposed Plan
would
likely include
maintenance and repair professionals, utilities’ providers, wholesale trade companies,
commercial
and business support services; while suppliers to
the
Approved
Plan
may include
construction supply
firms, computer and other
technology firms, accounting and bookkeeping professionals, and utilities’ providers.

Additionally,
the suppliers representing the indirect one
-
time impa
cts
would likely include
heavy industrial and construction suppliers for the actual development of buildings and facilities.

Finally, t
he induced impacts represent the
economic activity that results from household spending by employees of all companies directly and indirectly affected by the construction and operation of the land uses analyzed in th
e
Study.

A.2
North American Industry Classification
Indirect and induced impacts can occur throughout all industries of the economy and have been categorized using the North American Industry Classification System (“NAICS”).

Adopted by the Office of Management and Budget (“OMB”) in 1997 to replace the Standard Industrial Classification System (“SIC”), NAICS is a widely
-
used system to classify business establishments for the collection, analysis, and publication of statistical
data in Canada, Mexico, and the United States.

NAICS
industries are identified us
ing a
6 -
digit coding system to classify all economic
activity into twenty broad sectors, five of which are mainly goods -
producing
sectors and fifteen of which are services
-
pro
viding
sectors.

This
6 -
digit
hierarchical structure allows for the identification of nearly 1,170 industries.

The
broad NAICS sectors include the Retail/Commercial, Business Park, Industrial/Warehousing, and Construction, which are the focal NAICS categories analyzed within this Study to determine the indirect and induced economic im
pacts generated under
both Scenarios
.
8 SECTION II

INTRODUCTION

City of San Marcos
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Economic Impact Study

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A.3
IMPLAN Multiplier Method
Although there is a consensus among economists that indirect and induced, or “multiplier” effects exist, most economists also agree that such effects are difficult to measure.

Patterns on spending and employment among suppliers and employee households often vary over time and from one region to another.

Nevertheless, there are certain input
-
output models that can be used to estimate
indirect and induced effects.

In quantifying the indirect and induced economic impacts for the Study, DTA utilized the Impact Analysis for Planning (“IMPLAN”) Input/output Modeling System, a type of quantitative economic model that provides an approximate measure of the “multiplier eff
ect” of a firm’s spending on payroll and the
purchasing of goods and services.

In this study, DTA used Version 3 of the IMPLAN
economic modeling system.

Like similar econometric models, IMPLAN helps to calculate the flow of payments for goods and services across different industry sectors, and between households and industries.

The IMPLAN model can be envisioned simply as a large
spreadsheet with hundreds of industries (plus the household sector) arrayed across the top as producers, and the same industries and households listed down the side as consumers
.

Each million dollars (output) in spending by any one
consumer (i.e.
,
within the
Approved
Plan or the
Proposed Plan) is allocated across
the producing industries from which that consumer buys goods and services.

These producing industries, in turn, spend money buying goods and services from their own distinct sets of suppliers.

Thus, the IMPLAN multiplier model allows one
to gauge the effect on each dollar an industry spends as it diffuses through a regional economy.

Furthermore, it allows one to translate the overall regional impact of spending into jobs and employee compensation.

Please refer to the
e
xample presented in
Figure
1 for a graphical representation of the multiplier
effect in development.
9 SECTION II

INTRODUCTION

City of San Marcos
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Economic Impact Study

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Figure
1 :

Example of the Multiplier Effect
(
Direct,
Indirect and Induced Output)

Source: DTA, 2019
B
Limitations
–
Accuracy
o
f Information
The economic models
presented in this
Study contain analysis of revenues and impacts
resulting from the
Approved
Plan
and the Proposed Plan.

Th
e
s
e
model
s
are
based on
both (i) information provided to DTA by the City and its consultants, Applicant of the Proposed Plan
,
and (ii) certain DTA assumptions taken from DTA’s proprietary databases, as compiled by DTA from previous studies prepared by the firm.

The sources of
information and basis of the estimates calculated in the Study are stated herein.

While
DTA is confident that the sources of information are reliable, DTA does not express an opinion or any other form of assurance on the accuracy of such information.

The
analysis of economic impacts contained in the Study is not considered to be a “financial forecast” or a “financial projection” as technically defined by the American Institute of Certified Public Accountants.

The word “projection” used wit
hin the Study relates to
broad expectations of future events or market conditions.

Since the analyses contained
herein are based on estimates and assumptions that are inherently subject to uncertainty and variation depending on evolving events, DTA cannot represent that such estimates will definitely be achieved.

Some assumptions inevitably will not materialize, and
unanticipated events and circumstances may occur
.

T
herefore, the actual results
achieved may vary from these projections stated throughout t he Study.

10 SECTION
III

ECONOMIC IMPACTS

City of San Marcos
M
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r
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h
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, 2026
Economic Impact Study

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III

ECONOMIC IMPACTS
The Study identifies the general economic impacts that would occur under the
Approved
Plan
and
compares
them
to
the
impacts under the
Proposed Plan
,
quantif
ying
the impacts
of each
S
cenario
wherever possible.

General economic impacts include additions to
employment (number of average annual full
-
and
part
-
time jobs) and economic output
(e.g., gross receipts).

The Study also distinguishes between one
-
time economic impacts
and permanent economic impacts.

One
-
time impacts include benefits to the community
that occur on a non
-
recurring time basis as a result of construction and development activity, while permanent, recurring impacts refer to benefits that occur on a continuing basis, year after year.

A
Recurring Economic Impacts
A.1
Assumptions
Information provided to DTA indicates that the
Approved
Plan
includes a 50
-
unit
multifamily apartment project consisting of 50 rental units on 2.5 gross acres (2.23 acres net) plus an additional 0.37 acres currently zoned as Commercial. The proposed plan
includes 107 parking spaces, 14,795 square feet of common open space, dog relief
areas,
four BBQ areas, two
artificial turf game courts, and an 800
-
square
-
foot play area for children. The 28 corner units each feature a 64 -
square
-
foot
private balcony
and a 4
50 -
square
-
foot private roof deck, while the 18 interior units
each include a 61
-
square
-
foot balcony and a 340
-
square
-
foot roof deck
.

Under the
P
roposed plan
site consists
of
46 townhome units distributed across seven
buildings on 2.6 acres
.

All of the planned units are 3 bedrooms. The building
footprint is approximately 0.89 acres with 0.82 acres dedicated to parking. In aggregate, the seven buildings will comprise approximately 73,952 square feet. There will be a total of 107 parking space
s, 92 of which will be covered garages. In addition,
14,795 square feet of landscape and common open space will be provided throughout the developme
nt.

Please see
Table 1
, presented below, for a general
summary of the built
-
out projection on the Approved Plan and the Proposed Plan.

11 SECTION
III

ECONOMIC IMPACTS

City of San Marcos
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Economic Impact Study

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Table
1 :

Assumptions
–
Approved
Plan
vs. Proposed P
lan
Assumptions
Approved
Plan
Proposed
Plan
Residential Land Use
Units
Units
Apartments
50 Town Homes
46 Residential Land Use
Sq. Ft.

Sq. Ft.

Apartments
36,393
Town Homes
73,9
52 Residential Land Use
Residents
Residents
Apartments
123
Town Homes
113
Non
-
Residential Land Use
Sq. Ft.

Sq. Ft.

Commercial Retail
2,821

Employment
Direct
Employees
Direct
Employees
Commercial Retail
2 0

A.2
J
ob Creation
As indicated in
the
Table
below
,
full
development
and build
-
out
of
both
the
Approved
Plan
is expected to
be
slight
,
result
ing
in
two (2)
new jobs
, while the
Proposed Plan is expected to result in zero
(0)
recurring
jobs
in the City.

This total
includes combined direct and indirect/induced employment.

Although
the specific
location of the additional indirect jobs created cannot be identified in this Study
,
most of these jobs will
likely
be support service jobs in
r
etail,
t
ransportation
,
and
similar areas.

Table
2 :

Approved
Plan
–
Recurring Employment
Recurring Impacts
Direct
Indirect
/
Induced
Total
Total Output
City of San Marcos
2 0
2 Tables 2
and
3 presented, as well as Exhibit 1
of
Appendices
A
and
B
, summarize the
direct and indirect
/induced
recurring
employment impacts of the
Approved Plan
and
the Proposed Plan
.
12 SECTION
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ECONOMIC IMPACTS

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Economic Impact Study

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Table
3 :

Proposed Plan
–
Recurring Employment
Recurring Impacts
Direct
Indirect
/
Induced
Total
Total Output
City of San Marcos
0 0
0 S
ince the analys
e
s contained herein are based on estimates and assumptions that are inherently subject to uncertainty and variation depending on evolving events, DTA cannot represent that such estimates will definitely be achieved.

Some
assumptions inevitably will not materialize, and unanticipated events and circumstances may occur
.

T
herefore, the actual results achieved may vary from
these projections stated throughout the Study.

A.3
Overall Economic Output
In addition to the Employment projections presented in the previous section, Total Output (i.e., total expenditures including sales or gross receipts, or other operating income) within the City will increase noticeably under both development Scenarios.

However, a
s indicated below in
Tables 4
and
5 t
otal
o
utput p
rojections under the
Approved
Plan exceed those of the
Proposed
Plan.

Total output is estimated
and
based on the different types of development projected to occur. As stated in Section
I, this Stu
dy analyzes direct and indirect/induced impacts. Regarding gross receipts, the direct impact reflects the initial or first -
round increases in output (total
spending/gross receipts, including payroll), all of which occur directly on the either the
Approved
Plan site or the Proposed Plan site.

Table
4 :

Approved
Plan
–
Recurring Total
Output
Recurring
Impacts
Direct
Indirect
/
Induced
Total
Overall Output
City of San Marcos
$871,680
$103,972
$975,652

Table
5 :

Proposed Plan
–
Recurring Total Output
Recurring Impacts
Direct
Indirect
/
Induced
Total
Overall Output
City of San Marcos
$999,176
$253,381
$1,252,557
Indirect/induced economic impacts are the secondary
effects,
and other additional
rounds of economic activity that occur as a consequence of the direct output impacts can occur outside of the
Approved
Plan
and the Proposed Plan.

The indirect
impacts represent the economic activity
–
buying and selling of goods and services
–
of suppliers and/or supporting businesses. The induced impacts represent the 13 SECTION
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ECONOMIC IMPACTS

City of San Marcos
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Economic Impact Study

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$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
Current Plan
,
$975,652
Proposed Plan
,
$1,252,557
economic activity that results from household spending by employees of all companies directly and indirectly affected by the Project.

Based again on IMPLAN Version 3 multipliers and other assumptions utilized in the Study, DTA has estimated that the direct and indirect/induced effects on the City total
$
5 975,652
for the
Approved
Plan and
$
1,252,557
for the Proposed Plan.

As shown in the tables above, DTA estimate
s
that the direct and indirect/induced
effects on the City
resulting from the
Approved
Plan
(including employees and
residents)
are greater than those under the
Proposed
Plan.

The side
-
by
-
side
comparison of
recurring
Total Output can be seen in the
graphical representation
of
presented in
Figure
2 below.

F
igure
2 :

Approved
Plan vs. Proposed Plan
–
Recurring Total Output

B
One
-
Time Employment
a
nd Output Impacts (Construction)
According to IMPLAN, development of the
Approved
Plan
area is projected to create
approximately
one hundred and five
(
105
)
one
-
time construction jobs in the City of San
Marcos.

This total includes combined direct and indirect/induced employment .

For the
Proposed Plan,
two hundred and two
(
202
)
one
-
time construction jobs are expected to be
created.

Again, one
-
time construction and development costs will also have multiplier effects on the economy
, generating one
-
time increases in output from construction of the
non
-
residential buildings and all related site improvements.

Table
s
6 and
7 below
summarize the projected increases in employment resulting from construction activities, under each Scenario
.

14 SECTION
III

ECONOMIC IMPACTS

City of San Marcos
M
a
r
c
h
1 6
, 2026
Economic Impact Study

www.FinanceDTA.com
Table
6 :

Approved
Plan
–
One
-
Time Employment
One
-
Time Impacts
Direct
Indirect
/
Induced
Total
Employees
City of San Marcos
65 40
105

Table
7 :

Proposed Plan
–
One
-
T
ime Employment
One
-
Time Impacts
Direct
Indirect
/
Induced
Total
Employees
City of San Marcos
122
80 202
As with recurring economic impacts, experience and modeling indicate that a large percentage of these jobs will be support service and construction jobs in industries currently
occupying the
Approved
area.

These jobs are likely to be located close to either
the
Approved
Plan
or the Proposed Plan.

The tables
presented
above
summarize the
projected increases in employment to be generated directly from construction of the Project land uses, based on DTA construction cost assumptions .

Table
8 :

Approved
Plan
–
One
-
time Total Output
One
-
Time Impacts
Direct
Indirect
/
Induced
Total
Output
City of San Marcos
$11,342,563
$4,615,938
$15,958,501

Table
9 :

Proposed Plan
–
One
-
time Total Output
One
-
Time Impacts
Direct
Indirect
/
Induced
Total
Output
City of San Marcos
$21,831,600
$10,489,695
$32,321,295
Notably, projected one
-
time Total Output is expected to increase considerably
under
both
the
Approved
and
Proposed
scenarios
, as illustrated in
Tables 8 and 9
above
. DTA estimates
that the direct and indirect/induced effects on the City total $
15,958,501
m
illion
in One
-
Time Total Output for the
Approved
Plan and
$
32,321,296
m
illion
for the Proposed Plan. A
side
-
by
-
side comparison of both Scenarios can be seen graphically in Figure
3 presented
below
.

15 SECTION
III

ECONOMIC IMPACTS

City of San Marcos
M
a
r
c
h
1 6
, 2026
Economic Impact Study

www.FinanceDTA.com
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
Approved Plan
,
$15,958,501
Proposed Plan
,
$32,321,295
Figure
3 :

Approved
Plan
vs. Proposed Plan
–
One
-
Time Total Output

C
Market Considerations
The primary advantage of the proposed rezone over the original is that the site can provide new for
-
sale product to San Marcos which has strong buyer demand for townhomes coupled with a historical undersupply of new for
-
sale housing. Additionally, t
he site
developed as
p
roposed
t
ownhomes can deliver relatively attainably priced new for -
sale
product to San Marcos, at an average un
it
size which is much larger than the
o
riginal
a
partment unit size.

The proposed project consists of 2 lots with an existing medi um
density residential 2 (MDR2) 15.1
–

20.0 du/ac general plan land use designation and a 0.37 -
acre portion of an adjacent parcel with a commercial (C) designation. The proposed project would re
-
designate both the MDR2 sites and the portion of the commercial site to medium
high density residential (MHDR), 20.1
–

30.0 du/ac, to develop 46 residential townhome
units.

According to
the Zonda market study, d
rive thru commercial retail performance
remains relatively strong in the right areas and should be attractive to commuters.

However, the changing face of retail is causing high vacancies and putting downward pressure on rents and further rent correction c
ould occur at secondary commercial retail
locations. However, the proposed residential R
-
3 -
6 zoning for
-
sale residential would
introduce needed homes at an attractive price point, fulfilling a deep demand pool of homebuyers looking to move to or purchase i
n San Marcos.

In addition, there is an extreme
16 SECTION
III

ECONOMIC IMPACTS

City of San Marcos
M
a
r
c
h
1 6
, 2026
Economic Impact Study

www.FinanceDTA.com
market demand and supply shortage of for
-
sale residential townhomes, and the for
-
sale
scenario has
the
ability
to translate potential City revenue into actual dollars, whereas the approved project does not.

In addition, t
he area immediately east of the proposed project
is an affordable housing development.

An
advantage of the rezone over the existing use is
that the site can provide new for sale product to San Marcos, which currently does not have new multifamily product.

APPENDIX A
City of San Marcos
Santa Fe F
l
ores
Economic Impact Study

ECONOMIC IMPACT
MODEL
,

APPROVED
PLAN

CITY OF SAN MARCOS

SANTA FE FLORES

ECONOMIC IMPACT ANALYSIS - (APPROVED PLAN)

RECURRING JOBS

RECURRING IMPACTS

ONE-TIME JOBS

ONE TIME IMPACTS

JOB HOUSING BALANCE

SUMMARY

Page 1 of 7 ends

EXHIBIT 1A

SANTA FE FLORES

RECURRING EMPLOYMENT - APPROVED PLAN

ASSUMPTIONS
I. RESIDENTIAL LAND USE ASSUMPTIONS

LAND USE CATEGORY UNITS
Apartments 50
II. NON-RESIDENTIAL LAND USE ASSUMPTIONS
LAND USE CATEGORY1 EMPLOYEES/1,000 SQ. FT.2 SQ. FT.1
COMMERCIAL RETAIL 0.82 2,821
2,821

RECURRING EMPLOYMENT
III. CITY
DIRECT EMPLOYEES3 INDIRECT EMPLOYEES4 INDUCED EMPLOYEES4 TOTAL EMPLOYEES COMMERCIAL RETAIL 2 0 0 2

APARTMENTS
TOTAL RECURRING EMPLOYMENT 2 0 0 2
NOTES:
* All figures subject to rounding
4 Source: San Marcos City IMPLAN multipliers.
1 Source: City of San Marcos.
2 Commercial Buildings Energy Consumption Survey (CBECS), 2012. 3 Based on multiplying Category SF by Employees/1,000 SF metric.

Page 2 of 7 ends

EXHIBIT 2A

SANTA FE FLORES

RECURRING ECONOMIC IMPACTS - APPROVED PLAN

ASSUMPTIONS
% INCOME SPENT TOTAL RESIDENT
I. RESIDENTIAL SPENDING ASSUMPTIONS HOUSEHOLD INCOME IN CITY SPENDING / YR.

APARTMENTS $105,000 28.07% $736,909
II. NON-RESIDENTIAL OUTPUT ASSUMPTIONS AVERAGE OUTPUT / EMPLOYEE1 OUTPUT / YR.1 COMMERCIAL RETAIL $67,385 $134,771

RECURRING OUTPUT
III. CITY
DIRECT OUTPUT INDIRECT OUTPUT 1 INDUCED OUTPUT 1 TOTAL OUTPUT COMMERCIAL RETAIL $134,771 $25,076 $36,302 $196,150
APARTMENTS $736,909 $16,065 $26,529 $779,503
TOTAL RECURRING OUTPUT $871,680 $41,141 $62,831 $975,652 NOTES:
1 Source: San Marcos City IMPLAN multipliers.

Page 3 of 7 ends

EXHIBIT 3A

SANTA FE FLORES

ONE-TIME EMPLOYMENT -APPROVED PLAN

ASSUMPTIONS
I. RESIDENTIAL LAND ASSUMPTIONS UNITS
APARTMENTS 50
II. NON-RESIDENTIAL LAND USE ASSUMPTIONS SQ. FT.

COMMERCIAL RETAIL 2,821
III. PUBLIC FACILITIES TOTAL COST

PROJECT INFRASTRUCTURE NA

ONE-TIME EMPLOYMENT
IV. CITY
DIRECT EMPLOYEES 1 INDIRECT EMPLOYEES 1 INDUCED EMPLOYEES 1 TOTAL EMPLOYEES COMMERCIAL RETAIL 9 1 2 12
APARTMENTS 56 21 16 93
TOTAL ONE-TIME EMPLOYEES 65 22 18 105
NOTES:
* All figures subject to rounding
1 Source: San Marcos City IMPLAN multipliers (IMPLAN Sector 58: Construction of new non-residential structures).

Page 4 of 7 ends

EXHIBIT 4A

SANTA FE FLORES

ONE-TIME IMPACTS - APPROVED PLAN

ASSUMPTIONS

ESTIMATED
I. RESIDENTIAL CONSTRUCTION COST ASSUMPTIONS UNITS SQ. FT. PER DWELLING UNIT COST PER UNIT townhomes 50 525 to 820 $200,000
II. NON-RESIDENTIAL CONSTRUCTION COST ASSUMPTIONS IMPROVEMENT VALUE1 CONSTRUCTION COST PER SQ. FT.

Commercial Retail $1,342,563 $476
III. PUBLIC FACILITIES TOTAL COST

PROJECT INFRASTRUCTURE NA

ONE-TIME OUTPUT
IV. CITY
DIRECT OUTPUT INDIRECT OUTPUT 2 INDUCED OUTPUT 2 TOTAL OUTPUT Apartments $10,000,000 $1,875,354 $2,194,219 $14,069,573 Commercial Retail $1,342,563 $251,778 $294,588 $1,888,929 TOTAL ONE-TIME OUTPUT $11,342,563 $2,127,132 $2,488,806 $15,958,501 NOTES:
1 Assumes that improvement value is approximately 85% of total valuation. 2 Source: San Marcos City IMPLAN multipliers (IMPLAN Sector 58: Construction of new non-residential structures). * All figures subject to rounding

Page 5 of 7 ends

EXHIBIT 5A

SANTA FE FLORES

JOBS-HOUSING BALANCE - APPROVED PLAN

ASSUMPTIONS
I. EXISTING DEMOGRAPHICS

CITY OF SAN MARCOS
HOUSING UNITS 1 33,157
EMPLOYEES 2 45,700
II. JOB IMPACTS 3

CITY OF SAN MARCOS
DIRECT IMPACT 2
ADDITIONAL INDIRECT 0
ADDITIONAL INDUCED 0
TOTAL 2
III. CUMULATIVE PROJECT DEMOGRAPHICS
EXISTING HOUSING UNITS PLUS PROJECT - CITY OF SAN MARCOS 33,207 PERCENTAGE INCREASE 0.15%
EXISTING EMPLOYEES PLUS PROJECT - CITY OF SAN MARCOS 45,702 PERCENTAGE INCREASE 0.0044%

JOBS-HOUSING BALANCE
IV. JOBS-HOUSING BALANCE

CITY OF SAN MARCOS
EXISTING 1.38
EXISTING WITH PROJECT 1.38
PERCENTAGE INCREASE -0.15%
NOTES:
1 Source: State of California, Department of Finance, E-5 Population and Housing Estimates for Cities, Counties, and the State (20252). * All figures subject to rounding
2 Source: California Employment Development Department ("EDD") - Labor Market Information Division. 3 Please see Exhibit B-1: Recurring Jobs.

Page 6 of 7 ends

EXHIBIT 6A

SANTA FE FLORES

SUMMARY - APPROVED PLAN

ASSUMPTIONS
I. RESIDENTIAL LAND USE ASSUMPTIONS UNITS
Apatments 123
II. NON-RESIDENTIAL LAND USE ASSUMPTIONS EMPLOYEES/1,000 SQ. FT. SQ. FT.

Commercial Retail 0.82 2,821

ECONOMIC IMPACTS CONCLUSIONS

RECURRING IMPACTS
III. JOB CREATION DIRECT INDIRECT/INDUCED TOTAL
CITYWIDE 2 0 2
IV. TOTAL OUTPUT DIRECT INDIRECT/INDUCED TOTAL
CITYWIDE $871,680 $103,972 $975,652

ONE-TIME IMPACTS
V. CONSTRUCTION JOBS DIRECT INDIRECT/INDUCED TOTAL
CITYWIDE 65 40 105
VI. CONSTRUCTION OUTPUT DIRECT INDIRECT/INDUCED TOTAL
CITYWIDE $11,342,563 $4,615,938 $15,958,501

OTHER IMPACTS
BALANCE BALANCE % INCREASE/
VII. JOBS-HOUSING BALANCE EXISTING WITH PROJECT (DECREASE) CITYWIDE 1.37829 1.37628 -0.15%

Page 7 of 7 ends

APPENDIX
B
City of San Marco
s
Santa Fe Flores
Economic Impact Study

ECONOMIC IMPACT
MODEL
, PROPOSED PLAN

CITY OF SAN MARCOS

SANTA FE FLORES

ECONOMIC IMPACT ANALYSIS - (PROPOSED PLAN)

RECURRING JOBS

RECURRING IMPACTS

ONE-TIME JOBS

ONE TIME IMPACTS

JOB HOUSING BALANCE

SUMMARY

Page 1 of 7 ends

EXHIBIT 1b

SANTA FE FLORES

RECURRING EMPLOYMENT - PROPOSED PLAN

ASSUMPTIONS
I. RESIDENTIAL LAND USE ASSUMPTIONS

LAND USE CATEGORY UNITS
Townhomes 46
II. NON-RESIDENTIAL LAND USE ASSUMPTIONS
LAND USE CATEGORY1 EMPLOYEES/1,000 SQ. FT.2 SQ. FT.1
0 RECURRING EMPLOYMENT
III. CITY
DIRECT EMPLOYEES3 INDIRECT EMPLOYEES4 INDUCED EMPLOYEES4 TOTAL EMPLOYEES Townhomes 0 0 0 0
TOTAL RECURRING EMPLOYMENT 0 0 0 0
NOTES:
* All figures subject to rounding
1 Source: City of San Marcos.
2 Commercial Buildings Energy Consumption Survey (CBECS), 2012. 3 Based on multiplying Category SF by Employees/1,000 SF metric. 4 Source: San Marcos City IMPLAN multipliers.

Page 2 of 7 ends

EXHIBIT 2b

SANTA FE FLORES

RECURRING ECONOMIC IMPACTS - PROPOSED PLAN

ASSUMPTIONS
% INCOME SPENT TOTAL RESIDENT
I. RESIDENTIAL SPENDING ASSUMPTIONS HOUSEHOLD INCOME IN CITY SPENDING / YR.

Townhomes $176,016 24.68% $999,176
II. NON-RESIDENTIAL OUTPUT ASSUMPTIONS AVERAGE OUTPUT / EMPLOYEE1 OUTPUT / YR.1

RECURRING OUTPUT
III.CITY
DIRECT OUTPUT INDIRECT OUTPUT 1 INDUCED OUTPUT 1 TOTAL OUTPUT Townhomes $999,176.1 $217,581.4 $35,799.4 $1,252,557
TOTAL RECURRING OUTPUT $999,176 $217,581 $35,799 $1,252,557 NOTES:
* All figures subject to rounding
1 Source: San Marcos City IMPLAN multipliers.

Page 3 of 7 ends

EXHIBIT 3b

SANTA FE FLORES

ONE-TIME EMPLOYMENT - PROPOSED PLAN

ASSUMPTIONS
I. RESIDENTIAL LAND ASSUMPTIONS UNITS
Townhomes 46
II. NON-RESIDENTIAL LAND USE ASSUMPTIONS SQ. FT.
-
-
-
-
III. PUBLIC FACILITIES TOTAL COST

PROJECT INFRASTRUCTURE NA

ONE-TIME EMPLOYMENT
IV. CITY
DIRECT EMPLOYEES 1 INDIRECT EMPLOYEES 1 INDUCED EMPLOYEES 1 TOTAL EMPLOYEES Townhomes 122 46 34 202
TOTAL ONE-TIME EMPLOYEES 122 46 34 202
NOTES:
* All figures subject to rounding
1 Source: San Marcos City IMPLAN multipliers (IMPLAN Sector 58: Construction of new non-residential structures).

Page 4 of 7 ends

EXHIBIT 4b

SANTA FE FLORES

ONE-TIME IMPACTS - PROPOSED PLAN

ASSUMPTIONS

ESTIMATED
I. RESIDENTIAL CONSTRUCTION COST ASSUMPTIONS UNITS SQ. FT. PER DWELLING UNIT COST PER UNIT Townhomes 46 NA $474,600
II. NON-RESIDENTIAL CONSTRUCTION COST ASSUMPTIONS IMPROVEMENT VALUE1CONSTRUCTION COST PER SQ. FT.

III. PUBLIC FACILITIES TOTAL COST

PROJECT INFRASTRUCTURE NA

ONE-TIME OUTPUT
IV. CITY
DIRECT OUTPUT INDIRECT OUTPUT 2 INDUCED OUTPUT 2 TOTAL OUTPUT Townhomes $21,831,600 $5,875,672 $4,614,023 $32,321,295 TOTAL ONE-TIME OUTPUT $21,831,600 $5,875,672 $4,614,023 $32,321,295 NOTES:
1 Assumes that improvement value is approximately 85% of total valuation. 2 Source: San Marcos City IMPLAN multipliers (IMPLAN Sector 58: Construction of new non-residential structures). * All figures subject to rounding

Page 5 of 7 ends

EXHIBIT 5b

SANTA FE FLORES

JOBS-HOUSING BALANCE - PROPOSED PLAN

ASSUMPTIONS
I. EXISTING DEMOGRAPHICS

CITY OF SAN MARCOS
HOUSING UNITS 1 33,157
EMPLOYEES 2 45,700
II. JOB IMPACTS 3

CITY OF SAN MARCOS
DIRECT IMPACT 0
ADDITIONAL INDIRECT 0
ADDITIONAL INDUCED 0
TOTAL 0
III. CUMULATIVE PROJECT DEMOGRAPHICS
EXISTING HOUSING UNITS PLUS PROJECT - CITY OF SAN MARCOS 33,203 PERCENTAGE INCREASE 0.14%
EXISTING EMPLOYEES PLUS PROJECT - CITY OF SAN MARCOS 45,700 PERCENTAGE INCREASE 0.0%

JOBS-HOUSING BALANCE
IV. JOBS-HOUSING BALANCE

CITY OF SAN MARCOS
EXISTING 1.38
EXISTING WITH PROJECT 1.38
PERCENTAGE INCREASE -0.14%
NOTES:
1 Source: State of California, Department of Finance, E-5 Population and Housing Estimates for Cities, Counties, and the State (2025). * All figures subject to rounding
2 Source: California Employment Development Department ("EDD") - Labor Market Information Division. 3 Please see Exhibit B-1: Recurring Jobs.

Page 6 of 7 ends

EXHIBIT 6b

SANTA FE FLORES

ASSUMPTIONS
I. RESIDENTIAL LAND USE ASSUMPTIONS UNITS
MIXED USE RESIDENTIAL 46
II. NON-RESIDENTIAL LAND USE ASSUMPTIONS EMPLOYEES/1,000 SQ. FT. SQ. FT. - - -
- - -
- - -
- - -

ECONOMIC IMPACTS CONCLUSIONS

RECURRING IMPACTS
III. JOB CREATION DIRECT INDIRECT/INDUCED TOTAL
CITYWIDE 0 0 0
IV. TOTAL OUTPUT DIRECT INDIRECT/INDUCED TOTAL
CITYWIDE $999,176 $253,381 $1,252,557

ONE-TIME IMPACTS
V. CONSTRUCTION JOBS DIRECT INDIRECT/INDUCED TOTAL
CITYWIDE 122 80 202
VI. CONSTRUCTION OUTPUT DIRECT INDIRECT/INDUCED TOTAL
CITYWIDE $21,831,600 $10,489,695 $32,321,295

OTHER IMPACTS
BALANCE BALANCE % INCREASE/
VII. JOBS-HOUSING BALANCE EXISTING WITH PROJECT (DECREASE) CITYWIDE 1.378 1.376 -0.14%

Page 7 of 7 ends

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May 26, 2026