Mountain View Whisman School District

Agenda Item for Board Meeting of 8/17/2023

Agenda Category:  REVIEW AND DISCUSSION

Agenda Item Title:  Response to City of Mountain View's Fiscal Report on North Bayshore Master Plan (NBMP) (40 minutes)

Estimated Time: 

Person Responsible: 

Ayindé Rudolph, Ed.D., Superintendent 

Phil Henderson, Orbach Huff & Henderson LLP

Dante Gumucio, Public Economics, Inc.

Background: 

On June 27 City staff created a fiscal impact analysis or report (FIR) for the North Bayshore Master Plan (NBMP).  MVWSD staff has completed a review and will present a number of exhibits, tables, and different bullet summaries of the implications of the FIR for the District.

As with other fiscal impact analyses prepared for Cities and Counties, the FIR for NBMP employs a *static* method of calculating recurring fiscal impacts that not only expresses impacts in constant FY 22/23 dollars, but in effect assumes impacts occur only once, i.e., based on *TOTAL new development* at buildout.  In contrast, when dealing with RDA tax increment and Pass-Throughs, one must employ a *dynamic* method of calculating fiscal impacts on the District that is based on *CUMULATIVE new development* over the 30-year buildout period, which is the basis for Pass-Throughs to the District.

FIR Context

Using the FIR’s *static* methodology, buildout of the NBMP area will result in the following recurring fiscal impacts in constant FY 22/23 dollars:

·        $7.6542 Billion increase in Total AV 

·        $76.542 Million of 1% Tax Increment of which

·        $18.179 Million would be District’s “full allocation” based on its 23.75% share of 1% TI

With actual Pass-Throughs to District of 

·        $14.227 Million (about 78%) based on: 

§  100% Pass-Through for 7,000 new Residential DUs but only about

§   10% Pass-Through for 3,536,972 SF of new Non-Residential space and 525 new hotel rooms

Resulting in:

·        ($ 3.952 Million) (about 22%) cost to District of NOT receiving 100% Pass-Through for all new development

This cost is the constant dollar shortfall to the District implicit in the FIR from the District’s not receiving its 100% “full allocation” of 1% TI in NBMP.  The letter to the City can cite any or all of the above amounts/percentages.

District Context

However, using a *dynamic* methodology, buildout of the NBMP area will result in the following TOTAL fiscal impacts over 30 years:

·        $12.139 Billion increase in Total AV 

·        $  1.616 Billion of total 1% Tax Increment of which

·        $383.790 Million would be District’s total “full allocation” based on its 23.75% share of 1% TI

With actual Pass-Throughs to District of 

·        $266.084 Million (about 69% though the percentage starts at the FIR’s implied 78% *in the first year*) based on:

§  100% Pass-Through for 7,000 new Residential DUs but only about

§     4.5% Pass-Through for 3,536,972 SF of new Non-Residential space and 525 new hotel rooms

Resulting in:

·        ($63.487 Million) (about 30%) cost to District of NOT receiving 100% Pass-Through for all new development

This cost is the projected total shortfall to the District over 30 years from the District’s not receiving its 100% “full allocation” of total future 1% TI in NBMP. 

Staff would like board direction on what information to include in a letter to the City to help City Council to understand the full context of the impact of NBMP on MVWSD Students and Staff.

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