Ordinance 2008-1539 - Laserfiche WebLink

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2. Spending Power Spending power illustrated the reallocation of 1% incremental sales tax revenue collection each year to each community by spending power. • Used the total number of households, median household income, and the Consumer expenditure survey to identify the expected total taxable retail sales for each city/town for each year. • Determined what percentage of annual purchases were sales taxable. • Determined the total expected retail sales taxable purchases each city/town contributed, and correlated them to a percent of total. • These percentages were applied to the incremental sales tax revenue pooled for that year, and redistributed based on share of spending power. 3. Leakage The leakage adjustment identified which communities are leaking sales tax revenue and which are importers, and reallocated 1% of incremental sales tax revenue to those communities who are leaking shoppers. • Determined the "actual" total retail sales from city/town budgets and sales tax rate. • Compared the "actual" total retail sales with the "expected" total retail sales calculated in the Spending Power methodology. • Those whose actual retail sales were less than their expected retail sales were leaking, and those whose actual retail sales were higher than their expected retail sales were importing. • For those who were leaking, the total leakage in dollars was calculated, and a percentage determined for how much each city/town was leaking. • These percentages were applied to thE~ incremental sales tax revenue pooled for that year, and redistributed based on share of total leakage. 4. Regional Land Bank The regional land bank proved to be very difficult to model. The regional land bank concept is that each community contributes to a pool all future regional retail sites or redevelopment sites that will be regional retail. Based on percentage of total land contributed, anti a weighting of the type of land and development potential, each community receives a share of the total sales tax generated by retail on those sites. • Every participating municipality provided 2i map or list of potential regional retail parcels in their city/town, including in-fill and bare land peircels. • Boulder County Assessors data was used to determine actual values of each parcel. • Commercial values were created for parcels currently zoned as agricultural. • Using the actual values of each parcel, determined the percentage ownership of the land bank for each city/town. • Assumed a 30 year build-out time frame with a random absorption/development schedule. • Used a .25 FAR ratio for every acre. • Assumed retail sales of $350 per sq. foot for every municipality. • Sales tax rates for each city/town were usE~d.