Contents of Document
Memo from Steve Glueck to City Council Regarding Subsidies
City of Golden - Memorandum
To: City Council
Thru: Michael C. Bestor, City Manager
From: Steve Glueck, Director of Planning and Development
Date: June 29, 1999
Re: Economic Incentives Summary
Councilor Starling asked for a summary of economic incentives by individual agreement. Although the sales tax figures for individual businesses on an annual basis are protected by City and state confidentiality laws, the total estimates and costs to date information for each agreement are not confidential.
Table 1, attached, shows the city's estimates for the total costs of all incentive agreements, as well as the costs from the start of the program in 1987 to December 31, 19998. Expenditures for 1999 to date are approximately $112,000.
The table shows 13 agreements where no further obligations exist, and 10 agreements with further estimated costs.
The table shows that the projects associated with the fee waivers and rebates generated increased revenues for the five year period from 1994 thru 1998 of roughly three times the amount of the incentives. The increased revenue figures for 1987 thru 1993 were not readily available, but would show additional benefit.
Virtually all of the remaining costs are sales tax rebates consisting of 1/6 to 1/3 of actual sales taxes collected.
City staff estimates that over $24 million in new collections (over otherwise expected collections) will accrue to the City over the remaining period of these agreements.