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Return to city analysis and OMB incorporation of EDC project tax revenues
0:30:49
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74 sec
Council Member Farías inquires about OMB's incorporation of tax revenue projections from EDC projects into the city's budget. Andrew Kimball explains the timeline of tax revenue realization from development projects and expresses uncertainty about OMB's inclusion of these projections in future budgets.
- Tax revenues from development projects typically come years after the initial investment
- Projects are evaluated over a 20-40 year time range
- Kimball is unsure if OMB counts projected tax revenues 3-5 years out in their budgeting process
- EDC must demonstrate to OMB that projects will generate positive tax revenue exceeding the initial investment
Amanda Farías
0:30:49
Do we have like an estimate on
Andrew Kimball
0:30:53
I can get that for you in terms of just pure tax revenue.
0:30:59
I'd be happy to follow-up on that.
Amanda Farías
0:31:02
Great.
0:31:02
I I asked the OMB director if their revenue estimates included these calculations.
0:31:08
Do you know if they do?
0:31:09
Does IDA share their analysis with OMB's revenue team?
0:31:13
Do you think it's a problem if not incorporating your tax and your economic and tax impacts into their budget?
Andrew Kimball
0:31:22
The the question is does the budgeted director assume those tax
Amanda Farías
0:31:25
If if we know for a fact that they OMB is incorporating
Andrew Kimball
0:31:31
their In in future tax projections?
0:31:34
Yes.
0:31:35
I don't know the answer to that.
0:31:36
I mean typically those tax revenues come in years after the investment because whatever the investment is takes a while to build, in some case many years, and then you start to leverage positive tax revenue after that.
0:31:48
You're typically looking at these projects over somewhere between twenty and forty year time range.
0:31:54
I have a number, this is for fiscal year twenty four of a hundred and $51,000,000 in tax revenues on IDA projects?