983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 1 MEMO
To: Raimi + Associates
From: Lisa Wise Consulting, Inc.
Date: February 13, 2023
Subject: City of Santa Maria General Plan Update: Fiscal Impact Analysis Memo
Introduction
This memo describes the key findings from Task 4.7 Fiscal Impact Analysis , which assesses estimated new revenues and expenditures to the Santa Maria General Fund based on three land use alternatives.
The alternatives were provided by Raimi + Associates and developed in collaboration with the City for the Santa Maria General Plan Update. Following the key findings, the memo also describes the assumptions and methodology used in the analysis.
General Plan Development Alternatives Overview
The fiscal impact analysis evaluates the proposed land use program for three different scenarios in the City of Santa Maria. The three alternatives provide options for different development intensities and allowed uses citywide . In this analysis , the maximum potential buildout for each alternative is evaluated and assumed to occur by the year 2050. Although development trends in the next 30 years are unknown, the full “buildout” capacity of the alternatives is analyzed as a means of comparing the alternatives on a relative basis. The three alternatives include the following:
• Alternative A –Annexation: This alternative represents the continuation of the City’s existing pattern of growth within the City’s limits and the addition of 1,770 acres of annexed land. Alternative A has the largest amount of net new retail, office, and industrial space of the three alternatives (Figures 1-3).
• Alternative B–City Infill: This alternative plans for new residential and commercial development entirely within the existing Cit y limits. Alternative B has the greatest number of net new housing units of the three alternatives (Figure 4).
• Alternative C –Hybrid: This alternative would include future development within the C ity’s boundaries and on annexed land. Infill development is focused along Main Street and Broadway and on major opportunity sites, and a smaller amount of land would be annexed compared to Alternative A, about 720 acres.
A summary of the estimated total number of residents, jobs, housing units, and commercial square feet for alternatives is provided in Table 1.
Attachment A
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 2
Table 1: Summary of General Plan Alternatives 2050 Buildout 2020 2050 Total Buildout 2020-2050 Net Change
Baseline Alternative A:
Annexation3
Alternative B:
Infill3
Alternative C:
Hybrid3
Alternative A:
Annexation
Alternative B:
Infill
Alternative C:
Hybrid
Residents 108,6001 142,680 144,420 141,480 34,080 35,820 32,880 Jobs 43,0501 65,540 59,680 66,800 22,490 16,630 23,750
Housing Units 28,2001 44,420 45,660 44,340 16,220 17,460 16,140 Single-Family - 31,538 32,419 31,481 11,516 12,397 11,459 Condominiums - 5,153 5,297 5,143 1,882 2,025 1,872
Apartments - 5,153 5,297 5,143 1,882 2,025 1,872
BMR Condominiums - 1,288 1,324 1,286 470 506 468
BMR Apartments - 1,288 1,324 1,286 470 506 468
Retail 13,038,3792 21,806,708 20,061,667 18,693,970 8,768,329 7,023,288 5,655,591 Office 11,391,6372 19,817,768 13,943,569 14,127,726 8,426,131 2,551,932 2,736,089 Industrial 83,903,5302 88,551,242 82,147,495 83,278,635 4,647,713 -1,756,034 -624,894
Other Land Use4 34,743,4562,4 37,072,578 33,324,271 35,706,820 2,329,122 -1,419,185 963,364 1 Existing (2020)
2 Capacity under the City of Santa Maria's current General Plan 3 Figures represent the maximum potential buildout under each alternative 4 Includes agricultural, conservational, and recreational open space and community facilities.
Source: Raimi + Associate, 2022.
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 3 Figure 1: Alternatives Net New Retail 2050 Buildout
Source: Raimi + Associates, 2022.
Figure 2: Alternatives Net New Office 2050 Buildout
Source: Raimi + Associates, 2022.
8,768,329
7,023,288
5,655,591
0 1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
Alternative A:
Annexation
Alternative B:
City Infill
Alternative C:
Hybrid
Square Feet
8,426,131
2,551,932 2,736,089
0 1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
Alternative A:
Annexation
Alternative B:
City Infill
Alternative C:
Hybrid
Square Feet
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 4 Figure 3: Alternatives Net New Industrial 2050 Buildout
Source: Raimi + Associates, 2022.
Figure 4: Alternatives Net New Housing Units 2050 Buildout
Source: Raimi + Associates, 2022.
Alternative Phasing
In addition to assessing the fiscal impact of the alternatives at the 2050 full buildout, the analysis evaluates fiscal impacts in 5 -year increments through 2050, which enables reviewing fiscal impacts during various phases of development.
LWC worked with Raimi + Associates and City of Santa Maria Planning Department staff to evaluate each Alternative’s land use program and develop assumptions on phasing. The key phasing assumptions include the following:
• For all the alternatives, from 2020 to 2030, the rate of residential development is set to meet the 2031 RNHA obligation and the rate of residential development is assumed to continue at this same rate in the following years.
4,647,713
-1,756,034
-624,894
-3,000,000
-2,000,000
-1,000,000
0 1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
Alternative A:
Annexation
Alternative B:
City Infill
Alternative C:
Hybrid
Square Feet
16,220 17,460
16,140
0 2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
Alternative A:
Annexation
Alternative B:
City Infill
Alternative C:
Hybrid
Housing Units
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 5 • The annexation and development of annexed land is expected to occur in the latter half of the 2020 to 2050 planning period, and commercial development is expected to increase with the annexation of land.
o Alternative A assumes a large amount of square feet from annexed land, and therefore commercial growth is relatively less intense in earlier years and greater in later years when the annexation is expected to occur.
o Alternative B assumes no annexation and therefore commercial development through infill could occur at any time and is assumed at a steady rate. o Alternative C assumes growth in commercial space occurs faster in the earlier years than in Alternative A due to growth from infill.
A summary of the estimated total number of residents, jobs, housing units, and commercial square feet for the alternatives in 5-year increments is provided in Table 2.
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 6
Table 2: Summary of General Plan Alternatives Net Change in 5-Year Increments 2025 2030 2035
Alternative A:
Annexation
Alternative
B: Infill
Alternative
C: Hybrid
Alternative A:
Annexation
Alternative
B: Infill
Alternative
C: Hybrid
Alternative A:
Annexation
Alternative
B: Infill
Alternative
C: Hybrid
Residents 5,794 6,089 5,590 5,794 6,089 5,590 5,623 5,910 5,425 Jobs 1,125 2,661 2,375 1,125 2,661 2,375 1,125 2,827 2,375
Housing Units 2,757 2,968 2,744 2,757 2,968 2,744 2,676 2,881 2,663 Single-Family 1,958 2,107 1,948 1,958 2,107 1,948 1,900 2,045 1,891 Condominiums 320 344 318 320 344 318 310 334 309
Apartments 320 344 318 320 344 318 310 334 309
BMR Condominiums 80 86 80 80 86 80 78 84 77
BMR Apartments 80 86 80 80 86 80 78 84 77
Retail 438,416 1,123,726 565,559 438,416 1,123,726 565,559 438,416 1,193,959 565,559 Office 421,307 408,309 273,609 421,307 408,309 273,609 421,307 433,828 273,609 Industrial 232,386 -280,965 -62,489 232,386 -280,965 -62,489 232,386 -298,526 -62,489
Other Land Use1 116,456 -227,070 96,336 116,456 -227,070 96,336 116,456 -241,261 96,336 1 Includes agricultural, conservational, and recreational open space and community facilities.
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 7 2040 2045 2050
Alternative A:
Annexation
Alternative
B: Infill
Alternative
C: Hybrid
Alternative A:
Annexation
Alternative
B: Infill
Alternative
C: Hybrid
Alternative A:
Annexation
Alternative
B: Infill
Alternative
C: Hybrid
Residents 5,623 5,910 5,425 5,623 5,910 5,425 5,623 5,910 5,425 Jobs 3,374 2,827 4,750 7,872 2,827 5,938 7,872 2,827 5,938
Housing Units 2,676 2,881 2,663 2,676 2,881 2,663 2,676 2,881 2,663 Single-Family 1,900 2,045 1,891 1,900 2,045 1,891 1,900 2,045 1,891 Condominiums 310 334 309 310 334 309 310 334 309
Apartments 310 334 309 310 334 309 310 334 309
BMR Condominiums 78 84 77 78 84 77 78 84 77
BMR Apartments 78 84 77 78 84 77 78 84 77
Retail 1,315,249 1,193,959 1,131,118 3,068,915 1,193,959 1,413,898 3,068,915 1,193,959 1,413,898 Office 1,263,920 433,828 547,218 2,949,146 433,828 684,022 2,949,146 433,828 684,022 Industrial 697,157 -298,526 -124,979 1,626,699 -298,526 -156,224 1,626,699 -298,526 -156,224
Other Land Use1 349,368 -241,261 192,673 815,193 -241,261 240,841 815,193 -241,261 240,841 1 Includes agricultural, conservational, and recreational open space and community facilities.
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 8 Key Findings
Table 3 provides a summary of the net revenues and expenditures to the City of Santa Maria’s General Fund at full buildout in 2050 under each alternative. Impacts to the General Fund are described including and excluding Measure U.1
All three alternatives are estimated to have a positive fiscal impact on the City’s General Fund. At complete buildout in 2050, Alternative A is estimated to achieve the greatest gains in net revenue s, and Alternative B is estimated to achieve the next largest increases in net revenues, followed by Alternative C (Figure 5).
When Measure U is included in the fiscal impact calculations , each alternative is estimated to generate greater net revenues to the General Fund (Figure 6). Alternative A generates the highest net revenues of the three alternatives due to a larger amount of commercial space relative to the other alternatives (Figures 1-3). While Alternative B and C have a similar amount of total commercial space, Alternative B has a greater number of housing units, which increases revenues slightly above those of Alternative C (Figure 4).
Table 4 summarizes the net revenues and expenditures to the City of Santa Maria’s General Fund for each alternative in 5- year intervals. All three alternatives are estimated to have a positive fiscal impact on the City’s General Fund during each 5- year period from 2020 to 2050. From 202 5 to 2035, Alternative B is estimated to achieve the greatest increases in net revenues and Alternative A is estimated to achieve the next highest net revenues. From 2040 to 2050, Alternative A is estimated to surpass Alternative B in net revenues.
Table 3: General Fund Fiscal Impact Summary 2050 Buildout
Alternative A:
Annexation
Alternative B:
City Infill
Alternative C:
Hybrid
Revenues $53,555,559 $44,515,708 $41,298,029
Expenditures $19,603,412 $19,594,769 $19,208,722
Net Impact $33,952,148 $24,920,939 $22,089,307
Net Impact as % of Revenues 63% 56% 53%
Revenues with Measure U $64,182,745 $53,714,751 $49,328,151 Expenditures with Measure U $24,953,831 $24,942,830 $24,451,418 Net Impact $39,228,914 $28,771,922 $24,876,734
Net Impact as % of Revenues 61% 54% 50%
1 Measure U is a one-cent sales tax that primarily funds operations also supported by the General Fund such as police and fire, recreation and parks, libraries.
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 9 Figure 5: General Fund Revenues and Expenditures
Figure 6: General Fund Revenues and Expenditures with Measure U
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
Alternative A:
Annexation
Alternative B:
City Infill
Alternative C:
Hybrid
Nominal Dollars
Revenues Expenditures
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
Alternative A:
Annexation
Alternative B:
City Infill
Alternative C:
Hybrid
Nominal Dollars
Revenues Expenditures
Revenues with Measure U Expenditures with Measure U
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 10 Table 4: General Fund Fiscal Impact Summary 5-Year Increments 2025 2030 2035 2040 2045 2050
Alternative A: Annexation
Revenues $6,147,555 $6,322,718 $6,001,777 $8,559,123 $13,148,328 $13,323,490 Expenditures $2,943,825 $2,943,825 $2,862,006 $3,185,969 $3,833,894 $3,833,894 Net Impact $3,203,730 $3,378,893 $3,139,771 $5,373,154 $9,314,434 $9,489,596 Net Impact as % of Revenues 52% 53% 52% 63% 71% 71%
Revenues with Measure U $7,026,428 $7,201,590 $6,866,170 $10,196,640 $16,332,093 $16,507,255 Expenditures with Measure U $3,747,292 $3,747,292 $3,643,142 $4,055,525 $4,880,290 $4,880,290 Net Impact $3,279,136 $3,454,298 $3,223,028 $6,141,115 $11,451,803 $11,626,965 Net Impact as % of Revenues 47% 48% 47% 60% 70% 70%
Alternative B: City Infill
Revenues $7,341,965 $7,517,127 $7,313,431 $7,488,593 $7,313,431 $7,488,593 Expenditures $3,307,156 $3,307,156 $3,245,114 $3,245,114 $3,245,114 $3,245,114 Net Impact $4,034,809 $4,209,972 $4,068,316 $4,243,479 $4,068,316 $4,243,479 Net Impact as % of Revenues 55% 56% 56% 57% 56% 57%
Revenues with Measure U $8,844,250 $9,019,412 $8,862,049 $9,037,212 $8,862,049 $9,037,212 Expenditures with Measure U $4,209,788 $4,209,788 $4,130,813 $4,130,813 $4,130,813 $4,130,813 Net Impact $4,634,462 $4,809,624 $4,731,236 $4,906,398 $4,731,236 $4,906,398 Net Impact as % of Revenues 52% 53% 53% 54% 53% 54%
Alternative C: Hybrid
Revenues $6,086,923 $6,262,085 $5,942,999 $7,311,694 $7,733,298 $7,908,461 Expenditures $3,026,004 $3,026,004 $2,947,066 $3,289,178 $3,460,235 $3,460,235 Net Impact $3,060,919 $3,236,081 $2,995,934 $4,022,516 $4,273,063 $4,448,226 Net Impact as % of Revenues 50% 52% 50% 55% 55% 56%
Revenues with Measure U $7,085,513 $7,260,676 $6,927,620 $8,819,930 $9,503,341 $9,678,503 Expenditures with Measure U $3,851,900 $3,851,900 $3,751,418 $4,186,904 $4,404,647 $4,404,647 Net Impact $3,233,613 $3,408,775 $3,176,202 $4,633,026 $5,098,693 $5,273,856 Net Impact as % of Revenues 46% 47% 46% 53% 54% 54%
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 11 Methodology
This section describes the assumptions and methodology used in the analysis. Additional tables supporting the analysis can also be found in the Appendix.
Fiscal Impact Analysis Overview
A fiscal impact analysis measure s the impact of potential new development on a municipal budget. New residential and commercial development bring new residents and businesses to a city, which increases the need for more city services while also generat ing additional taxes and other revenues for the city . A development program has a positive fiscal impact on a city’s budget when the associated new development generates more revenue for the city than the cost of additional city services needed to support it . A development program that generates more services costs than revenues is considered to have a negative fiscal impact.
This fiscal impact analysis estimates the increased revenues and service costs to the City of Santa Maria’s General Fund on an annual basis that result from net new development at full buildout in 2050 and in five- year increment s over about 3 0 years (2020 to 2050) . The analysis does not include expenditures or revenues associated with other funds outside the General Fund except for Measure U. 1 Additionally, the analysis focuses on city service costs related to ongoing operations and maintenance and does not include capital costs for new infrastructure or facilities.
City of Santa Maria General Fund
The General Fund is the City’s primary source for funding and ongoing revenues and expenditures applicable to the general operations of the city government, which are not properly accounted for in another fund. These are activities and services traditionally associated with governments, such as police and fire, recreation and parks, and a city administration that is financed primarily through tax-generated revenues.
The fiscal impact analysis relies on the City’s 2020 -2021 General Plan Budget Actuals, which reflect the recorded revenues and expenditures that occurred and do not represent estimated budget projections.
Table 5 shows the revenues by source to the City’s General Fund, and Table 6 shows the expenditures to the General Fund by source.
1 Measure U is a one-cent sales tax that primarily funds operations also supported by the General Fund such as police and fire, recreation and parks, libraries.
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 12 Table 5: City of Santa Maria General Fund Budget Actuals Revenues (FY 2020-21) Source Revenues
Property Tax $12,546,615
Property Tax in Lieu of VLF $9,746,972
Sales and Use Tax $27,389,316
Transient Occupancy Tax $3,213,990
Franchise Fees $4,683,115
Business Licenses $659,964
Property Transfer $352,611
Licenses, Permits & Fines $3,374,512
Revenue from Use of Money & Property $147,917
Revenues from Other Agencies $1,197,025
Charges for Current Services $5,897,018
Other Revenue1 $446,468
Transfers In $2,343,387
Cost Allocation Transfers $2,406,651
Total Revenues $74,405,561
Measure U Revenues $22,751,964
Total Revenues (with Measure U) $97,157,525
1Includes the following sources: Prior Year & Damage Recover, Sales of Property, Sale of Maps, Plans & Others, Other Miscellaneous Revenue
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 13 Table 6: City of Santa Maria General Fund Budget Actuals Expenditures (FY 2020-21) Source Expenditures
General Government
Mayor & Council $169,773
City Attorney $1,213,032
City Manager $6,472,790
Finance $9,730,595
Community Development $3,978,834
Recreation & Parks $8,728,872
Police $28,431,813
Fire $11,201,739
Public Works $2,913,642
Total Expenditures $72,841,090
Measure U Expenditures
Police $8,626,919
Fire $7,140,520
Recreation & Parks $1,774,476
Library $471,290
Community Development $314,509
City Manager $27,601
Finance $108,719
Total Measure U Expenditures $18,464,034
Total Expenditures (with Measure U) $91,305,124
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 14 Service Population
The analysis uses per capita revenue and expenditure estimates , which are based on the current and projected future service population. The service population includes the total resident population and those who work within the City’s boundaries. Employees in Santa Maria are assumed to generate l ess demand for city services compared to residents, and the service population calculation estimates the impacts of workers in Santa Maria to be 30 percent of residents. Table 7 shows the current service population estimate.
Table 8 shows the net service population for the three alternatives at buildout in 2050. Table 9 shows the net service population in 5-year increments until 2050.
Table 7: 2020 Service Population
2020
Baseline
Residents 108,600
Employees
Total Jobs 43,050
Employee Factor 30%
Employee Estimate 12,915
Service Population 121,515
Table 8: Net New Service Population 2050 Buildout
Alternative A:
Annexation
Alternative B:
City Infill
Alternative C:
Hybrid
Residents 34,080 35,820 32,880
Employees
Total Jobs 22,490 16,630 23,750
Employee Factor 30% 30% 30%
Employee Estimate 6,747 4,989 7,125
Net New Service Population 40,827 40,809 40,005
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 15 Table 9: Net New Service Population 5-Year Increments
2025 2030 2035
Alternative A:
Annexation
Alternative
B: Infill
Alternative
C: Hybrid
Alternative A:
Annexation
Alternative
B: Infill
Alternative
C: Hybrid
Alternative A:
Annexation
Alternative
B: Infill
Alternative
C: Hybrid
Residents 5,794 6,089 5,590 5,794 6,089 5,590 5,623 5,910 5,425 Employees 1,125 2,661 2,375 1,125 2,661 2,375 1,125 2,827 2,375 Total Jobs
Employee Factor 30% 30% 30% 30% 30% 30% 30% 30% 30%
Employee Estimate 337 798 713 337 798 713 337 848 713
Net New Service
Population 6,131 6,888 6,302 6,131 6,888 6,302 5,961 6,758 6,138
2040 2045 2050
Alternative A:
Annexation
Alternative
B: Infill
Alternative
C: Hybrid
Alternative A:
Annexation
Alternative
B: Infill
Alternative
C: Hybrid
Alternative A:
Annexation
Alternative
B: Infill
Alternative
C: Hybrid
Residents 5,623 5,910 5,425 5,623 5,910 5,425 5,623 5,910 5,425 Employees 3,374 2,827 4,750 7,872 2,827 5,938 7,872 2,827 5,938 Total Jobs
Employee Factor 30% 30% 30% 30% 30% 30% 30% 30% 30%
Employee Estimate 1,012 848 1,425 2,361 848 1,781 2,361 848 1,781
Net New Service
Population 6,635 6,758 6,850 7,985 6,758 7,206 7,985 6,758 7,206 …
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 16 Assessed Property Value
In the analysis, property value estimates were created to calculate future property tax revenue estimates.
Table 10 shows the assumptions used for estimating assessed property values. Estimated values for apartment units and retail, office, and industrial square footage were created using a capitalized rent value approach, the key assumptions of which are shown in Table 11. Estimates for the assessed property value of net new residential units and commercial square feet are shown in Table 12 and Table 13.
Table 10: Assessed Property Value Assumptions
Estimated Value
Residential
Single Family (3BD) $760,000 per unit
Condominiums (2BD) $512,000 per unit
Apartments (2BD)1 $502,330 per unit
BMR Condominiums (2BD)2 $402,179 per unit
BMR Apartments (2BD) 2 $335,894 per unit
Commercial
Retail $301 per SF
Office $496 per SF
Industrial $203 per SF
1 Based on an average apartment size of 950
2 Assumes units are made affordable to low-income households (80% AMI), see Santa Maria 6th Cycle Housing Element
Source: Santa Maria 6th Cycle Housing Element; NAR Commercial Real Estate Metro Market Report, Santa Maria-Santa Barbara, 2021 Q2; Redfin 2022; Zillow, 2022; Loopnet, 2022.
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 17 Table 11: Capitalized Rent Values
Annual Rent
per SF
Capitalization
Rate Vacancy Operating
Expenses
Capitalized
Value per SF
Apartments (2BD) $37.80 4.50% 4.6% 32.5% $529
BMR Apartments (2BD) $25.28 4.50% 4.6% 32.5% $354
Commercial
Retail $27.00 7.30% 6.2% 12.5% $301
Office $27.00 4.50% 4.9% 12.5% $496
Industrial $15.00 6.20% 3.8% 12.5% $203
Source: Santa Maria 6th Cycle Housing Element; NAR Commercial Real Estate Metro Market Report, Santa Maria-Santa Barbara, 2021 Q2; Redfin 2022; Zillow, 2022; Loopnet, 2022.
Table 12: Net New Assessed Property Value Estimate 2050 Buildout
Alternative A:
Annexation
Alternative B:
City Infill
Alternative C:
Hybrid
Residential
Single Family (3BD) $8,752,312,000 $9,421,416,000 $8,709,144,000 Condominiums (2BD) $963,338,240 $1,036,984,320 $958,586,880 Apartments (2BD) $945,143,175 $1,017,398,263 $940,481,556 BMR Condominiums (2BD) $189,176,958 $203,639,315 $188,243,903 BMR Apartments (2BD) $157,997,618 $170,076,351 $157,218,345 Residential Total $11,007,967,991 $11,849,514,250 $10,953,674,684
Commercial
Retail $2,636,624,376 $2,111,892,990 $1,700,628,412
Office $4,175,990,507 $1,264,737,553 $1,356,005,481
Industrial $941,161,803 -$355,596,942 -$126,541,103
Commercial Total $7,753,776,686 $3,021,033,601 $2,930,092,791
Total Assessed Value $18,761,744,677 $14,870,547,851 $13,883,767,475
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 18 Table 13: Net New Assessed Property Value Estimates 5-Year Increments 2025 2030
Alternative A:
Annexation
Alternative B:
Infill
Alternative C:
Hybrid
Alternative A:
Annexation
Alternative B:
Infill
Alternative C:
Hybrid
Residential
Single Family (3BD) $1,487,893,040 $1,601,640,720 $1,480,554,480 $1,487,893,040 $1,601,640,720 $1,480,554,480 Condominiums (2BD) $163,767,501 $176,287,334 $162,959,770 $163,767,501 $176,287,334 $162,959,770 Apartments (2BD)1 $160,674,340 $172,957,705 $159,881,865 $160,674,340 $172,957,705 $159,881,865 BMR Condominiums (2BD) $32,160,083 $34,618,684 $32,001,463 $32,160,083 $34,618,684 $32,001,463 BMR Apartments (2BD) $26,859,595 $28,912,980 $26,727,119 $26,859,595 $28,912,980 $26,727,119 Residential Total $1,871,354,559 $2,014,417,422 $1,862,124,696 $1,871,354,559 $2,014,417,422 $1,862,124,696
Commercial
Retail $131,831,219 $337,902,878 $170,062,841 $131,831,219 $337,902,878 $170,062,841 Office $208,799,525 $202,358,008 $135,600,548 $208,799,525 $202,358,008 $135,600,548 Industrial $47,058,090 -$56,895,511 -$12,654,110 $47,058,090 -$56,895,511 -$12,654,110 Commercial Total $387,688,834 $483,365,376 $293,009,279 $387,688,834 $483,365,376 $293,009,279
Total Assessed Value $2,259,043,393 $2,497,782,799 $2,155,133,975 $2,259,043,393 $2,497,782,799 $2,155,133,975
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 19 2035 2040
Alternative A:
Annexation
Alternative B:
Infill
Alternative C:
Hybrid
Alternative A:
Annexation
Alternative B:
Infill
Alternative C:
Hybrid
Residential
Single Family (3BD) $1,444,131,480 $1,554,533,640 $1,437,008,760 $1,444,131,480 $1,554,533,640 $1,437,008,760 Condominiums (2BD) $158,950,810 $171,102,413 $158,166,835 $158,950,810 $171,102,413 $158,166,835 Apartments (2BD)1 $155,948,624 $167,870,713 $155,179,457 $155,948,624 $167,870,713 $155,179,457 BMR Condominiums (2BD) $31,214,198 $33,600,487 $31,060,244 $31,214,198 $33,600,487 $31,060,244 BMR Apartments (2BD) $26,069,607 $28,062,598 $25,941,027 $26,069,607 $28,062,598 $25,941,027 Residential Total $1,816,314,719 $1,955,169,851 $1,807,356,323 $1,816,314,719 $1,955,169,851 $1,807,356,323
Commercial
Retail $131,831,219 $359,021,808 $170,062,841 $395,493,656 $359,021,808 $340,125,682 Office $208,799,525 $215,005,384 $135,600,548 $626,398,576 $215,005,384 $271,201,096 Industrial $47,058,090 -$60,451,480 -$12,654,110 $141,174,270 -$60,451,480 -$25,308,221 Commercial Total $387,688,834 $513,575,712 $293,009,279 $1,163,066,503 $513,575,712 $586,018,558
Total Assessed Value $2,204,003,553 $2,468,745,563 $2,100,365,602 $2,979,381,221 $2,468,745,563 $2,393,374,881
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 20 2040 2050
Alternative A:
Annexation
Alternative B:
Infill
Alternative C:
Hybrid
Alternative A:
Annexation
Alternative B:
Infill
Alternative C:
Hybrid
Residential
Single Family (3BD) $1,444,131,480 $1,554,533,640 $1,437,008,760 $1,444,131,480 $1,554,533,640 $1,437,008,760 Condominiums (2BD) $158,950,810 $171,102,413 $158,166,835 $158,950,810 $171,102,413 $158,166,835 Apartments (2BD)1 $155,948,624 $167,870,713 $155,179,457 $155,948,624 $167,870,713 $155,179,457 BMR Condominiums (2BD) $31,214,198 $33,600,487 $31,060,244 $31,214,198 $33,600,487 $31,060,244 BMR Apartments (2BD) $26,069,607 $28,062,598 $25,941,027 $26,069,607 $28,062,598 $25,941,027 Residential Total $1,816,314,719 $1,955,169,851 $1,807,356,323 $1,816,314,719 $1,955,169,851 $1,807,356,323
Commercial
Retail $922,818,532 $359,021,808 $425,157,103 $922,818,532 $359,021,808 $425,157,103 Office $1,461,596,677 $215,005,384 $339,001,370 $1,461,596,677 $215,005,384 $339,001,370 Industrial $329,406,631 -$60,451,480 -$31,635,276 $329,406,631 -$60,451,480 -$31,635,276 Commercial Total $2,713,821,840 $513,575,712 $732,523,198 $2,713,821,840 $513,575,712 $732,523,198
Total Assessed Value $4,530,136,559 $2,468,745,563 $2,539,879,521 $4,530,136,559 $2,468,745,563 $2,539,879,521 …
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 21 Revenue Assumptions
This section describes the assumptions used to estimate net new revenues for each source to the City of Santa Maria’s General Fund.
Property Tax
Key assumptions used to estimate property tax revenues are show n in Table 14. Under California’s Proposition 13, the base property tax rate is one percent of the assessed property value. In Santa Maria, the City receives 10.16 percent of the one percent tax revenue.
Table 14: Property Tax Assumptions
Assumption
Property Tax Rate 1.00%
City Share of Tax Revenue 10.16%
Source: City of Santa Maria, Comprehensive
Annual Financial Report FY 19/20
Property Transfer Tax
The City collects property transfer tax when residential and commercial properties change ownership. The City receives $0.55 of every $1,000 of assessed property value that changes ownership (Table 15) .
Residential properties are assumed to change ownership more frequently than commercial properties. The annual transfer rate was assumed to be 4.2 percent for residential properties and 2.5 percent for commercial properties.
Table 15: Property Transfer Tax Assumptions
Assumption
Property Transfer Tax Rate 0.055%
Annual Transfer Rate
Residential 4.2%
Commercial 2.5%
Property Tax In-Lieu of Vehicle License Fees (VLF)
Beginning in 2004, the State of California changed its approach for allocating vehicle license fees (VLF) to local jurisdictions by substituting VLF fees with property tax revenues. Property tax provided in-lieu of VLF increases proportionally with the City’s assessed property values , and T able 16 shows the assumptions used to calculate the VLR property rate that is used to estimate future in-lieu VLF values.
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 22 Table 16: Property Tax In-Lieu of VLF Assumptions
Assumption
Total Estimated Citywide Assessed Value (FY 2019-20) $10,001,100,318 Citywide VLF Property Tax In-lieu Revenue (FY 2019-20) $9,278,869 VLF Property Tax In-lieu Per $1,000 in Assessed Value $0.9278 Source: City of Santa Maria, Comprehensive Annual Financial Report FY 2019-20
Sales Tax and Measure U
The City receives one percent (also known as Bradley Burns portion) of the sales tax collected from retail sales generated within the city. The City receives an additional one percent of sales tax revenues from the local Measure U. City voters initially approved Measure U in the June 2012 election at a one-quarter-cent rate, and in November 2018, voters extended and increased the rate to one-cent. Nearly all of Measure U's revenues (90 percent) are allocated to public safety-related services, while the remaining amount goes to youth services (5 percent) and programs for quality of life (5 percent).
Estimated sales tax revenues are based on residential and employee taxable sales per capita. Revenues are also based on net new retail square footage. A capture rate for residential and employee sales per capita is applied to account for retail spending by households and employees outside of the city, and a capture rate is applied to net new on- site retail to accommodate for any overlapping spending by new households and employees within the c ity. Table 17 provides key assumptions for estimating sales tax revenues.
Table 17: Property Sales Tax Assumptions
Assumption
Taxable Sales per Household $11,330
Taxable Sales per Employee $3,598
Residential and Employee Capture Rate 75%
On-Site Revenue Capture Rate 25%
Retail Taxable Sales per sf. $325
Sales Tax Rate to City General Fund 1.0%
Sales Tax Measure U Rate 1.0%
Sources: Esri, Retail Goods and Services Expenditures,
2022; California Board of Equalization, 2012; ICSC "Office Worker Retail Spending in a Digital Age" 2012
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 23 Transit Occupancy Tax (TOT) Revenues
Transit occupancy taxes (TOT) are levied on hospitality businesses such as motels and hotels. There are 30 motels and hotels in the City of Santa Maria with a total of 1,668 rooms. Since 2010, there has been one hotel built in Santa Maria, the Hampton Inn and Suites, with 107 rooms.
Table 18 shows key assumptions for estimating TOT taxes. The 1,668 hotel and motel rooms in Santa Maria generated $3,213,990 in TOT revenues to the City’s General Fund in fiscal year 2020-2021. A hotel or motel room in Santa Maria averages $1,926.85 in TOT revenues per year. Assuming Santa Maria adds a 100-room hotel every 10 years, the City could expect to add $192,685 in TOT revenues every 10 years.
Table 18: Transient Occupancy Tax Assumptions
Assumptions
Existing Number of Hotel Rooms 1,668
Baseline TOT Revenues (FY 2020/21) $3,213,990
TOT per Hotel Room $1,926.85
Net New Hotel Rooms per 10 years 100
Net New Revenue per 10 years $192,685
Other Tax Revenues
Additional tax revenues were calculated on a per capita basis based on the service population except for business license tax revenues, which are calculated based solely on employment. Table 19 shows the key assumptions used to calculate the additional tax revenues.
Table 19: Other Tax Revenue Assumptions
FY 2018/19
Revenues Rate Basis Estimated
Rate
Business Licenses $646,006 Per Employee $15.01
Licenses, Permits & Fines $2,485,948 Per Service Population $20.46 Revenue from Use of Money & Property $4,027,140 Per Service Population $33.14 Revenues from Other Agencies $700,564 Per Service Population $5.77 Charges for Current Services $6,378,802 Per Service Population $52.49 Other Revenue1 $1,014,961 Per Service Population $8.35
1Includes the following sources: Prior Year & Damage Recover, Sales of Property, Sale of Maps, Plans & Others, Other Miscellaneous Revenue.
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 24 Expenditures
Net new expenditures to the City’s General Fund were calculated on a per capita basis. The per capita rate was established by dividing expenditures occurring to the City’s General Fund (2020-2021 Budget Actuals) by the estimated 2022 service population. Future net new expenditures were determined by multiplying the per capita costs by future service population estimates. A percentage variable was applied to account for the scale at which the demand for city service would grow with an increase in households and employees within the City. Table 20 shows the estimated per capita rate assumptions for expenditures to the General Fund, and Table 21 shows the rate for expenditures calculated for Measure U.
Table 20: Expenditures Rate Assumptions
FY 2020/21
Expenditures
Percent
Variable
Variable
Revenues
Estimated
Rate
General Government
Mayor & Council $169,773 50% $84,887 $0.70
City Attorney $1,213,032 50% $606,516 $4.99
City Manager $6,472,790 50% $3,236,395 $26.63
Finance $9,730,595 70% $6,811,417 $56.05
Community Development $3,978,834 80% $3,183,067 $26.19
Recreation & Parks $8,728,872 80% $6,983,098 $57.47
Police $28,431,813 90% $25,588,632 $210.58
Fire $11,201,739 85% $9,521,478 $78.36
Public Works $2,913,642 80% $2,330,914 $19.18
Table 21: Measure U Expenditures Rate Assumptions
FY 2020/21
Expenditures
Percent
Variable
Variable
Revenues
Estimated
Rate
Police $8,626,919 90% $7,764,227 $63.90
Fire $7,140,520 85% $6,069,442 $49.95
Recreation & Parks $1,774,476 80% $1,419,581 $11.68
Library $471,290 70% $329,903 $2.71
Community Development $314,509 80% $251,607 $2.07
City Manager $27,601 50% $13,801 $0.11
Finance $108,719 70% $76,103 $0.63
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 25 Appendix
Table A-1: Detailed General Fund Net New Revenues 2050 Buildout
Alternative A:
Annexation
Alternative B:
City Infill
Alternative C:
Hybrid
Property Tax $19,061,933 $15,108,477 $14,105,908
Property Transfer Tax $361,029 $315,404 $293,449
Property Tax in Lieu of VLF $17,406,862 $13,796,668 $12,881,149 Sales Tax $10,627,186 $9,199,043 $8,030,122
Transient Occupancy Tax $578,056 $578,056 $578,056
Business Licenses $612,648 $612,378 $600,313
Licenses, Permits & Fines $835,237 $834,869 $818,420
Revenue from Use of Money & Property $1,353,051 $1,352,455 $1,325,809 Revenues from Other Agencies $235,378 $235,274 $230,639 Charges for Current Services $2,143,170 $2,142,225 $2,100,020 Other Revenue1 $341,010 $340,860 $334,144
Total General Fund Revenues $53,555,559 $44,515,708 $41,298,029
Measure U Revenues $10,627,186 $9,199,043 $8,030,122
Total General Fund Revenues with Measure U $64,182,745 $53,714,751 $49,328,151 1Includes the following sources: Prior Year & Damage Recover, Sales of Property, Sale of Maps, Plans & Others, Other Miscellaneous Revenue.
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 26 Table A-2: Detailed General Fund Net New Expenditures 2050 Buildout
Alternative A:
Annexation
Alternative B:
City Infill
Alternative C:
Hybrid
General Government
Mayor & Council $28,520 $28,508 $27,946
City Attorney $203,779 $203,689 $199,676
City Manager $1,087,374 $1,086,895 $1,065,481
Finance $2,288,522 $2,287,513 $2,242,445
Community Development $1,069,457 $1,068,986 $1,047,925
Recreation & Parks $2,346,204 $2,345,169 $2,298,966
Police $8,597,351 $8,593,560 $8,424,254
Fire $3,199,057 $3,197,646 $3,134,648
Public Works $783,148 $782,803 $767,380
Total General Fund Expenditures $19,603,412 $19,594,769 $19,208,722 Net Annual Surplus/(Deficit) $33,952,148 $24,920,939 $22,089,307 Net Annual Surplus/(Deficit) as % of Total
Revenue 63.40% 55.98% 53.49%
Measure U Expenditures
Police $2,608,650 $2,607,500 $2,556,128
Fire $2,039,231 $2,038,332 $1,998,173
Recreation & Parks $476,955 $476,745 $467,352
Library $110,842 $110,793 $108,610
Community Development $84,536 $84,499 $82,834
City Manager $4,637 $4,635 $4,543
Finance $25,569 $25,558 $25,055
Total Measure U Expenditures $5,350,420 $5,348,061 $5,242,696
Total General Fund Expenditures with Measure U $24,953,831 $24,942,830 $24,451,418 Net Annual Surplus/(Deficit) with Measure U $39,228,914 $28,771,922 $24,876,734 Net Annual Surplus/(Deficit) as % of Total
Revenue 61.12% 53.56% 50.43%
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 27 Table A-3: Detailed General Fund Net New Revenues 5-Year Increments 2025 2030
Alternative A:
Annexation
Alternative B:
Infill
Alternative C:
Hybrid
Alternative A:
Annexation
Alternative B:
Infill
Alternative C:
Hybrid
Property Tax $2,295,188 $2,537,747 $2,189,616 $2,295,188 $2,537,747 $2,189,616 Property Transfer Tax $48,581 $53,203 $47,066 $48,581 $53,203 $47,066 Property Tax in Lieu of VLF $2,095,906 $2,317,405 $1,999,501 $2,095,906 $2,317,405 $1,999,501 Sales Tax $878,873 $1,502,285 $998,591 $878,873 $1,502,285 $998,591 Transient Occupancy Tax $0 $0 $0 $192,685 $192,685 $192,685 Business Licenses $92,001 $103,356 $94,569 $92,001 $103,356 $94,569 Licenses, Permits & Fines $125,427 $140,907 $128,928 $125,427 $140,907 $128,928 Revenue from Use of Money & Property $203,186 $228,264 $208,858 $203,186 $228,264 $208,858 Revenues from Other Agencies $35,346 $39,709 $36,333 $35,346 $39,709 $36,333 Charges for Current Services $321,838 $361,559 $330,822 $321,838 $361,559 $330,822 Other Revenue $51,209 $57,529 $52,639 $51,209 $57,529 $52,639 Total General Fund Revenues $6,147,555 $7,341,965 $6,086,923 $6,340,241 $7,534,650 $6,279,608
Measure U Revenues $878,873 $1,502,285 $998,591 $878,873 $1,502,285 $998,591 Total General Fund Revenues with Measure U $7,026,428 $8,844,250 $7,085,513 $7,219,113 $9,036,935 $7,278,198
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 28 2035 2040
Alternative A:
Annexation
Alternative B:
Infill
Alternative C:
Hybrid
Alternative A:
Annexation
Alternative B:
Infill
Alternative C:
Hybrid
Property Tax $2,239,268 $2,508,245 $2,133,971 $3,027,051 $2,508,245 $2,431,669 Property Transfer Tax $47,309 $52,249 $45,800 $57,971 $52,249 $49,829 Property Tax in Lieu of VLF $2,044,841 $2,290,465 $1,948,687 $2,764,225 $2,290,465 $2,220,537 Sales Tax $864,393 $1,548,618 $984,621 $1,637,517 $1,548,618 $1,508,235 Transient Occupancy Tax $0 $0 $0 $192,685 $192,685 $192,685 Business Licenses $89,444 $101,417 $92,102 $99,568 $101,417 $102,794 Licenses, Permits & Fines $121,941 $138,264 $125,565 $135,744 $138,264 $140,141 Revenue from Use of Money & Property $197,539 $223,982 $203,410 $219,899 $223,982 $227,023 Revenues from Other Agencies $34,364 $38,964 $35,385 $38,254 $38,964 $39,493 Charges for Current Services $312,893 $354,777 $322,192 $348,310 $354,777 $359,594 Other Revenue $49,786 $56,450 $51,265 $55,421 $56,450 $57,217 Total General Fund Revenues $6,001,777 $7,313,431 $5,942,999 $8,576,646 $7,506,116 $7,329,217
Measure U Revenues $864,393 $1,548,618 $984,621 $1,637,517 $1,548,618 $1,508,235 Total General Fund Revenues with Measure U $6,866,170 $8,862,049 $6,927,620 $10,214,163 $9,054,734 $8,837,452
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 29 2045 2050
Alternative A:
Annexation
Alternative B:
Infill
Alternative C:
Hybrid
Alternative A:
Annexation
Alternative B:
Infill
Alternative C:
Hybrid
Property Tax $4,602,619 $2,508,245 $2,580,518 $4,602,619 $2,508,245 $2,580,518 Property Transfer Tax $79,293 $52,249 $51,844 $79,293 $52,249 $51,844 Property Tax in Lieu of VLF $4,202,992 $2,290,465 $2,356,462 $4,202,992 $2,290,465 $2,356,462 Sales Tax $3,183,765 $1,548,618 $1,770,043 $3,183,765 $1,548,618 $1,770,043 Transient Occupancy Tax $0 $0 $0 $192,685 $192,685 $192,685 Business Licenses $119,817 $101,417 $108,140 $119,817 $101,417 $108,140 Licenses, Permits & Fines $163,350 $138,264 $147,429 $163,350 $138,264 $147,429 Revenue from Use of Money & Property $264,620 $223,982 $238,830 $264,620 $223,982 $238,830 Revenues from Other Agencies $46,033 $38,964 $41,547 $46,033 $38,964 $41,547 Charges for Current Services $419,146 $354,777 $378,295 $419,146 $354,777 $378,295 Other Revenue $66,692 $56,450 $60,192 $66,692 $56,450 $60,192 Total General Fund Revenues $13,148,328 $7,313,431 $7,733,298 $13,341,013 $7,506,116 $7,925,983
Measure U Revenues $3,183,765 $1,548,618 $1,770,043 $3,183,765 $1,548,618 $1,770,043 Total General Fund Revenues with Measure U $16,332,093 $8,862,049 $9,503,341 $16,524,778 $9,054,734 $9,696,026
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 30 Table A-4: Detailed General Fund Net New Expenditures 5-Year Increments 2025 2030
Alternative A:
Annexation
Alternative B:
Infill
Alternative C:
Hybrid
Alternative A:
Annexation
Alternative B:
Infill
Alternative C:
Hybrid
General Government
Mayor & Council $4,283 $4,811 $4,402 $4,283 $4,811 $4,402 City Attorney $30,601 $34,378 $31,456 $30,601 $34,378 $31,456 City Manager $163,290 $183,443 $167,848 $163,290 $183,443 $167,848 Finance $343,665 $386,081 $353,259 $343,665 $386,081 $353,259 Community Development $160,599 $180,421 $165,083 $160,599 $180,421 $165,083 Recreation & Parks $352,327 $395,812 $362,163 $352,327 $395,812 $362,163 Police $1,291,056 $1,450,399 $1,327,096 $1,291,056 $1,450,399 $1,327,096 Fire $480,399 $539,691 $493,810 $480,399 $539,691 $493,810 Public Works $117,605 $132,119 $120,888 $117,605 $132,119 $120,888 Total General Fund Expenditures $2,943,825 $3,307,156 $3,026,004 $2,943,825 $3,307,156 $3,026,004
Net Annual Surplus/(Deficit) $3,203,730 $4,034,809 $3,060,919 $3,396,416 $4,227,494 $3,253,604 Net Annual Surplus/(Deficit) as % of Total
Revenue 52% 55% 50% 54% 56% 52%
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 31
2025 2030
Alternative A:
Annexation
Alternative B:
Infill
Alternative C:
Hybrid
Alternative A:
Annexation
Alternative B:
Infill
Alternative C:
Hybrid
Measure U Expenditures
Police $391,738 $440,087 $402,674 $391,738 $440,087 $402,674 Fire $306,229 $344,024 $314,778 $306,229 $344,024 $314,778 Recreation & Parks $71,624 $80,464 $73,623 $71,624 $80,464 $73,623 Library $16,645 $18,699 $17,110 $16,645 $18,699 $17,110 Community Development $12,695 $14,261 $13,049 $12,695 $14,261 $13,049 City Manager $696 $782 $716 $696 $782 $716
Finance $3,840 $4,314 $3,947 $3,840 $4,314 $3,947
Total Measure U Expenditures $803,467 $902,632 $825,897 $803,467 $902,632 $825,897
Total General Fund Expenditures with Measure U $3,747,292 $4,209,788 $3,851,900 $3,747,292 $4,209,788 $3,851,900 Net Annual Surplus/(Deficit) with Measure U $3,279,136 $4,634,462 $3,233,613 $3,471,821 $4,827,147 $3,426,298 Net Annual Surplus/(Deficit) as % of Total Revenue 47% 52% 46% 48% 53% 47%
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 32
2035 2040
Alternative A:
Annexation
Alternative B:
Infill
Alternative C:
Hybrid
Alternative A:
Annexation
Alternative B:
Infill
Alternative C:
Hybrid
General Government
Mayor & Council $4,164 $4,721 $4,288 $4,635 $4,721 $4,785 City Attorney $29,751 $33,733 $30,635 $33,118 $33,733 $34,191 City Manager $158,752 $180,002 $163,470 $176,721 $180,002 $182,446 Finance $334,113 $378,838 $344,043 $371,933 $378,838 $383,982 Community Development $156,136 $177,036 $160,776 $173,809 $177,036 $179,440 Recreation & Parks $342,535 $388,386 $352,715 $381,308 $388,386 $393,660 Police $1,255,173 $1,423,190 $1,292,477 $1,397,251 $1,423,190 $1,442,515 Fire $467,047 $529,566 $480,928 $519,914 $529,566 $536,757 Public Works $114,336 $129,641 $117,734 $127,278 $129,641 $131,401 Total General Fund Expenditures $2,862,006 $3,245,114 $2,947,066 $3,185,969 $3,245,114 $3,289,178
Net Annual Surplus/(Deficit) $3,139,771 $4,068,316 $2,995,934 $5,390,677 $4,261,002 $4,040,039 Net Annual Surplus/(Deficit) as % of Total
Revenue 52% 56% 50% 63% 57% 55%
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 33
2035 2040
Alternative A:
Annexation
Alternative B:
Infill
Alternative C:
Hybrid
Alternative A:
Annexation
Alternative B:
Infill
Alternative C:
Hybrid
Measure U Expenditures
Police $380,851 $431,831 $392,170 $423,961 $431,831 $437,695 Fire $297,718 $337,571 $306,566 $331,418 $337,571 $342,154 Recreation & Parks $69,633 $78,954 $71,703 $77,515 $78,954 $80,026 Library $16,182 $18,349 $16,663 $18,014 $18,349 $18,598 Community Development $12,342 $13,994 $12,709 $13,739 $13,994 $14,184 City Manager $677 $768 $697 $754 $768 $778
Finance $3,733 $4,233 $3,844 $4,156 $4,233 $4,290
Total Measure U Expenditures $781,136 $885,699 $804,352 $869,556 $885,699 $897,726
Total General Fund Expenditures with Measure U $3,643,142 $4,130,813 $3,751,418 $4,055,525 $4,130,813 $4,186,904 Net Annual Surplus/(Deficit) with Measure U $3,223,028 $4,731,236 $3,176,202 $6,158,638 $4,923,921 $4,650,548 Net Annual Surplus/(Deficit) as % of Total Revenue 47% 53% 46% 60% 54% 53%
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 34
2045 2050
Alternative A:
Annexation
Alternative B:
Infill
Alternative C:
Hybrid
Alternative A:
Annexation
Alternative B:
Infill
Alternative C:
Hybrid
General Government
Mayor & Council $5,578 $4,721 $5,034 $5,578 $4,721 $5,034 City Attorney $39,854 $33,733 $35,969 $39,854 $33,733 $35,969 City Manager $212,661 $180,002 $191,934 $212,661 $180,002 $191,934 Finance $447,573 $378,838 $403,951 $447,573 $378,838 $403,951 Community Development $209,157 $177,036 $188,772 $209,157 $177,036 $188,772 Recreation & Parks $458,854 $388,386 $414,133 $458,854 $388,386 $414,133 Police $1,681,408 $1,423,190 $1,517,534 $1,681,408 $1,423,190 $1,517,534 Fire $625,648 $529,566 $564,671 $625,648 $529,566 $564,671 Public Works $153,162 $129,641 $138,235 $153,162 $129,641 $138,235 Total General Fund Expenditures $3,833,894 $3,245,114 $3,460,235 $3,833,894 $3,245,114 $3,460,235
Net Annual Surplus/(Deficit) $9,314,434 $4,068,316 $4,273,063 $9,507,119 $4,261,002 $4,465,749 Net Annual Surplus/(Deficit) as % of Total
Revenue 71% 56% 55% 71% 57% 56%
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 35
2045 2050
Alternative A:
Annexation
Alternative B:
Infill
Alternative C:
Hybrid
Alternative A:
Annexation
Alternative B:
Infill
Alternative C:
Hybrid
Measure U Expenditures
Police $510,181 $431,831 $460,458 $510,181 $431,831 $460,458 Fire $398,818 $337,571 $359,948 $398,818 $337,571 $359,948 Recreation & Parks $93,279 $78,954 $84,188 $93,279 $78,954 $84,188 Library $21,678 $18,349 $19,565 $21,678 $18,349 $19,565 Community Development $16,533 $13,994 $14,922 $16,533 $13,994 $14,922 City Manager $907 $768 $818 $907 $768 $818
Finance $5,001 $4,233 $4,513 $5,001 $4,233 $4,513
Total Measure U Expenditures $1,046,396 $885,699 $944,413 $1,046,396 $885,699 $944,413
Total General Fund Expenditures with Measure U $4,880,290 $4,130,813 $4,404,647 $4,880,290 $4,130,813 $4,404,647 Net Annual Surplus/(Deficit) with Measure U $11,451,803 $4,731,236 $5,098,693 $11,644,488 $4,923,921 $5,291,379 Net Annual Surplus/(Deficit) as % of Total Revenue 70% 53% 54% 70% 54% 55%
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 36
Table A-5: Retail Rent Comparables
Year
Built SF Annual Rent Annual
Rent PSF
E Betteravia Rd, Ste 3B 2022 1,290 $59,598 $46.20
560 S Blosser Rd, Ste X 2020 5,737 $120,477 $21.00
560 S Blosser Rd, Ste Y 2020 1,656 $49,680 $30.00
2247 S Depot St, Ste 103 2019 5,682 $143,186 $25.20
1606 E Clark Ave, Ste 101 2019 1,100 $39,600 $36.00
550 E Betteravia Rd, Ste D 2008 3,510 $84,240 $24.00
1423 S Bradley Rd 2000 7,000 $210,000 $30.00
335 E Betteravia Rd 1994 8,032 $195,660 $24.36
230-238 E Betteravia Rd, Ste 230 C 1982 2,086 $50,040 $23.99 230-238 E Betteravia Rd, Ste 230 M/R 1982 8,400 $201,600 $24.00 223 E Betteravia Rd 1981 4,860 $131,220 $27.00
4869 S Bradley Rd 1981 1,420 $24,708 $17.40
402 E Main St 1980 3,610 $86,640 $24.00
1609-1637 S Broadway, Ste 1617 1977 3,440 $61,920 $18.00
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 37 Table A-6: Office Rent Comparables
Year
Built SF Annual Rent Annual
Rent PSF
1414 S Miller St, Ste L-P 2019 3,825 $91,800 $24.00
2247 S Depot St, Ste 103 2019 5,682 $143,186 $25.20
1430 E Main St, Ste 103 2018 1,096 $23,016 $21.00
1430 E Main St, Ste 107 2018 467 $9,807 $21.00
411-421 E Betteravia Rd, Ste 202/203 2005 2,740 $73,980 $27.00 2236 S Broadway, Ste A 2000 2,214 $39,852 $18.00
525 E Plaza Dr, Ste 306 1994 3,422 $58,311 $17.04
525 E Plaza Dr, Ste 307 1994 1,450 $24,708 $17.04
1300 E Cypress St 1990 15,360 $460,800 $30.00
201 S Miller St, Ste 105 1988 1,760 $34,848 $19.80
201 S Miller St, Ste 107 1988 1,550 $30,690 $19.80
1105 E Foster Rd, Ste C 1985 1,035 $22,977 $22.20
1105 E Foster Rd, Ste H 1985 814 $18,071 $22.20
230-238 E Betteravia Rd, Ste 230 C 1982 2,086 $50,040 $23.99 230-238 E Betteravia Rd, Ste 230 M/R 1982 8,400 $201,600 $24.00 402 E Main St 1980 3,610 $86,640 $24.00
821 E Chapel St, Ste 201 1950 1,922 $44,975 $23.40
Table A-7: Industrial Rent Comparables
Year
Built SF Annual Rent Annual
Rent PSF
1158-1160 W Betteravia Rd, Ste 1158 2014 11,944 $136,162 $11.40 2377 A St 2008 1,500 $18,000 $12.00
2330 A St, Ste 2-B 2006 6,968 - $10.20
3070 Skyway Dr, Ste 402 2004 2,000 $42,000 $21.00
2049 Preisker Ln 2001 1,534 $15,647 $10.20
1344 White Ct 1990 7,500 $99,000 $13.20
2315 Meredith Ln 1987 3,130 $33,804 $10.80
850-900 E Stowell Rd 1960 10,000 $120,000 $12.00
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 38
Table A-8: 2-Bedroom Multifamily Rent Comparables
Year
Built
Building
type
Number of
Units SF Total Monthly
Rent Price PSF
703 E Meehan St Unit 7303 2020 Apartment 318 870 $2,763 $3.18 703 E Meehan St Unit 1114 2020 Apartment 318 947 $2,803 $2.96 1735 Biscayne St Unit O-159 2011 Apartment 128 1,257 $3,038 $2.42 1735 Biscayne St Unit N-153 2011 Apartment 128 1,257 $3,073 $2.44 2460 Rubel Way Unit 2429J 2004 Apartment 208 1,109 $3,289 $2.97 2460 Rubel Way Unit 2517J 2004 Apartment 208 1,084 $3,322 $3.06 740 S Western Ave Unit 3-049 1979 Apartment 460 788 $2,804 $3.56 740 S Western Ave Unit 1-001 1979 Apartment 460 788 $2,797 $3.55
Table A-9: 2-Bedroom Multifamily Sales Price Comparables Year
Built
Building
Type SF Sale Price Price
PSF Date Sold
5684 Kai Ct 2019 Townhouse 1,884 $605,000 $321 July-1-2022 5677 Kai Ct 2019 Townhouse 1,884 $538,000 $286 February-26-2021 5612 Aidan Way 2018 Townhouse 1,841 $589,000 $320 June-24-2022 5622 Kai Ct 2018 Condo/Co-op 1,749 $545,000 $312 March-12-2021 4344 Foxenwood Cir 2008 Townhouse 2,137 $545,000 $255 February-26-2021 4316 Foxenwood Cir 2007 Condo/Co-op 2,137 $705,000 $330 April-13-2022 610 Sunrise Dr Unit 10L 2005 Condo/Co-op 1,129 $330,000 $292 August-18-2021 610 Sunrise Dr Unit 4G 2005 Condo/Co-op 1,129 $322,500 $286 August-13-2021 610 Sunrise Dr Unit 9D 2005 Condo/Co-op 1,129 $295,000 $261 February-18-2021 610 Sunrise Dr Unit 4J 2005 Condo/Co-op 1,129 $295,000 $261 November-17-2020 310 E McCoy Ln Unit 5D 2003 Condo/Co-op 1,130 $347,000 $307 August-9-2022 310 E Mccoy Ln Unit 2C 2003 Condo/Co-op 1,130 $375,000 $332 May-13-2022 310 E McCoy Ln Unit 5H 2003 Condo/Co-op 1,130 $359,000 $318 April-8-2022 310 E McCoy Ln Unit 10K 2003 Condo/Co-op 1,130 $332,000 $294 September-14-2021 310 E McCoy Ln Unit 5J 2003 Condo/Co-op 1,130 $289,900 $257 March-10-2021 310 E McCoy Ln Unit 7G 2003 Condo/Co-op 1,130 $305,000 $270 December-30-2020 310 E McCoy Ln Unit 2L 2003 Condo/Co-op 1,130 $277,500 $246 July-17-2020 310 E Mccoy Ln Unit 2k 2003 Condo/Co-op 1,130 $245,095 $217 December-19-2019
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 39
Table A-10: 3-Bedroom Single-Family Home Sales Price Comparables Year
Built SF Sale Price Price PSF Date Sold
1517 Copperberry Way 2022 2004 $999,999 $499 April-25-2022 1618 Tuscan Way 2021 2949 $999,000 $339 June-16-2022
1612 Tuscan Way 2021 2949 $1,024,000 $347 June-10-2022
5606 Kai Ct 2020 2055 $620,000 $302 September-14-2022
5891 Leaf Springs Pl 2020 2150 $989,000 $460 April-26-2022 1876 Sterling Pl 2019 1585 $588,000 $371 April-27-2022
1013 Shultz Ln 2018 1801 $680,000 $378 November-10-2022 1932 Blue Sage Ln 2018 1585 $535,000 $338 October-14-2022 1053 Shultz Ln 2018 2362 $850,000 $360 August-9-2022
1320 Shelton Way 2018 1499 $572,500 $382 July-8-2022
1021 Shultz Ln 2018 2362 $815,000 $345 June-6-2022
1870 Sterling Pl 2018 1446 $545,000 $377 May-13-2022
1107 Suncrest Pl 2018 1585 $586,000 $370 April-20-2022
1505 S Irving Ln 2017 1401 $545,000 $389 November-1-2022 1502 S Lennox 2017 1300 $551,000 $424 September-13-2022 1348 W Milford Way 2017 1763 $600,000 $340 August-18-2022 1336 W Milford Way 2017 1499 $625,000 $417 August-15-2022 1826 Sterling Pl 2017 1705 $569,000 $334 July-29-2022
1971 S Miller St 2017 1588 $550,000 $346 July-20-2022
301 Dressler Ave 2017 1739 $768,000 $442 June-30-2022
1974 Blue Sage Ln 2017 1585 $549,000 $346 June-30-2022
1541 S Syracuse Ln 2017 1506 $530,000 $352 June-14-2022 1959 Celebration Ave 2016 1732 $530,000 $306 October-4-2022 325 Dressler 2016 2132 $790,000 $371 June-10-2022
2441 Parkland 2015 1505 $52,000 $35 August-12-2022
787 Mahogany St 2014 1562 $759,000 $486 September-21-2022 810 Union Ave 2012 1466 $584,000 $398 November-3-2022
1167 Hastings Ct 2012 1879 $850,000 $452 May-20-2022
785 Sage Crest Dr 2011 2081 $849,000 $408 August-12-2022
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 40 Year
Built SF Sale Price Price PSF Date Sold
1345 Veneto Dr 2011 1206 $500,000 $415 June-24-2022
735 Damask Ct 2008 1242 $555,000 $447 July-22-2022
1738 Bilbao Dr 2007 2144 $530,000 $247 September-29-2022 205 Navarra Way 2007 2394 $715,000 $299 August-12-2022
1595 Jensen Ranch Rd 2006 1682 $684,000 $407 September-2-2022 1571 Jensen Ranch Rd 2006 1871 $795,000 $425 July-6-2022 2612 Long Ter 2005 2120 $739,000 $349 October-26-2022
2737 Taran Ct 2005 2328 $745,000 $320 August-11-2022
2214 Cordoban Ln 2005 1874 $550,000 $293 July-22-2022
927 Sloan 2005 1868 $630,500 $338 July-19-2022
1031 Anabelle St 2005 2268 $670,000 $295 June-30-2022
1608 Paraiso Dr 2005 1845 $650,000 $352 June-24-2022
610 Sunrise Dr Unit 8D 2005 1128 $407,000 $361 June-10-2022 2990 Wildhaven Cir #2 2005 3200 $1,600,000 $500 April-22-2022