HomeMy Public PortalAboutVolume III - Economic, Demographic and Fiscal AnalysisGENERAL PLAN
1995 - 2014
VOLUME III:
Economic, Demographic and Fiscal Analysis
Adopted February 15, 1996
by Town Council Resolution 96-08
Town of Truckee
Community Development Department,
Planning Division
11570 Donner Pass Road
Truckee, CA 96161
(916) 582-7876
TOWN OF TRUCKEE
GENERAL PLAN
ECONOMIC, DEMOGRAPHIC AND FISCAL ANALYSIS
January 12, 1996
STN1 ' R.I IC�F
Planning and Development Services
3922 Plcea Court
Hayward. Cah orn a 94542
(510) 537-4595
A
TABLE OF CONTENTS
Page
List of Figure and Tables iii
PART 1. KEY ISSUES 1
Chapter 1 Economic and Fiscal Issues 2
1.1 Truckee Overview 2
1.2 Economic Issues 4
1.3 Fiscal Issues 6
1.4 Capital Facilities Financing Issues 12
PART 2. ECONOMIC AND DEMOGRAPHIC ANALYSIS 15
Chapter 2 Economic and Demographic Database 16
2.1 Population, Housing and Labor Force Characteristics 16
2.2 Economic and Employment Characteristics 33
Chapter 3 Development Market Evaluation 39
3.1 Residential Development 39
3.2 Visitor Industry 41
3.3 Retail Sales Analysis 45
3.4 Industrial Market 56
Chapter 4 Economic and Demographic Projections 58
4.1 Regional Growth Trends and Projections 59
4.2 Truckee Area Projections 66
4.3 Comparative Analysis of Truckee Projections 73
4.4 Sensitivity Analysis of Housing and Employment Projections 76
PART 3 FISCAL IMPACT ANALYSIS 77
Chapter 5 Fiscal Analysis Approach and Base Year Revenues and Costs 78
5.1 Fiscal Analysis Approach 78
5.2 Base Year Fiscal Analysis 79
5.3 Overview of the Fiscal Analysis 83
Chapter 6 Draft General Plan Fiscal Analysis 86
6.1 Draft General Plan Development Description 86
6.2 Draft General Plan Fiscal Analysis 90
6.3 Implications of Capital Facilities Funding on the
Fiscal Balance of the Draft General Plan 93
TABLE OF CONTENTS
(continued)
Page
Chapter 7 Fiscal Analysis of Alternatives 94
7.1 High Volume/Discount Retail Alternative 94
7.2 Low Growth Alternative 96
7.3 No Project Alternative 101
7.4 Comparison of Alternatives 101
Appendix A Land Use and Market Factors 111
Appendix B Fiscal Factors 117
Appendix C Detailed Revenue and Cost Projections 126
Appendix D Persons and Agencies Contacted 131
ii
LIST OF FIGURE AND TABLES
Figure Page
1 Town of Truckee, Truckee Environs and Area of Concern 18
Table Page
2-1 Nevada County, Population and Housing Unit Growth: 1980 to 1990 19
2-2 Town of Truckee, Residential Building Permits 20
2-3 Nevada County, Population and Housing Unit Growth: 1990 to 1995 21
2-4 Town of Truckee, Truckee Environs, Truckee Area of Concern
and Nevada County, 1990 Demographic Characteristics 22
2-5 Town of Truckee, Housing Unit and Population: 1980 and 1990 24
2-6 Town of Truckee, 1990 Housing Units by Tenure 25
2-7 Town of Truckee, 1990 Housing Value and Contract Rent 26
2-8 Town of Truckee, Population by Age Group: 1980 and 1990 26
2-9 Town of Truckee, Households by Race and Ethnicity: 1980 and 1990 27
2-10 Town of Truckee, 1990 Education and Income 28
2-11 Town of Truckee, 1990 Labor Force Characteristics 28
2-12 Truckee Environs, Housing Units and Population: 1980 and 1990 29
2-13 Truckee Environs, 1990 Housing Units by Tenure 30
2-14 Truckee Environs, 1990 Housing Value and Contract Rent 31
2-15 Truckee Environs, Population by Age Group: 1980 and 1990 31
2-16 Truckee Environs, Households by Race and Ethnicity: 1980 and 1990 32
2-17 Truckee Environs, 1990 Education and Income 32
2-18 Truckee Environs, 1990 Labor Force Characteristics 33
2-19 Truckee Area and Nevada County, Estimated Employment by Industry 34
2-20 Truckee Area Annual Employment Growth by Industry Division 35
2-21 Truckee Area and Nevada County,
Comparative Industrial Structure: 1994 36
2-22 Truckee Area and Nevada County, Comparative Employment Growth 36
3-1 Residential Building Permits and Housing Unit Absorption 40
3-2 Truckee Area Residential Valuations 42
3-3 Truckee Area Lodging Summary 44
3-4 Retail Sales Distribution: Town, County and State 47
3-5 Estimation of 1992 Taxable Retail Purchasing Power 48
3-6 Estimation of Housing Units: 1990-1994 50
3-7 1992 Taxable Retail Sales Capture Analysis 52
3-8 Estimation of 2015 Taxable Retail Purchasing Power 54
3-9 Estimation of Commercial Acres: 2015 55
iii
LIST OF TABLES
(continued)
Table Page
4-1 Historic Employment, Housing and Population, Bi-State Region 60
4-2 Projected Employment, Housing and Population, Bi-State Region 62
4-3 Historic and Projected Employment, Nevada County 64
4-4 Basic Employment: Nevada County and Truckee Capture 67
4-5 Truckee Area: Local Serving Employment,
Housing and Population 69
4-6 Truckee Area: Estimates of Employees per Acre 71
4-7 Truckee Area: Estimates of Acreage Required
to Accommodate Employment Growth 73
4-8 Comparison of General Plan Projections
with Other Available Projections 74
4-9 Nevada County 1994 Employment Estimates 75
5-1 Estimated Existing Development, Residential Uses 80
5-2 Estimated Existing Development, Non -Residential Uses 81
5-3 Base Year Budget, Fiscal Year 1994 - 1995 82
5-4 Base Year and Adjusted Base Year,
Recurring Revenues and Costs 84
6-1 Draft General Plan, Projected Residential Development 87
6-2 Year 2015 Projections of Non-residential Development
Based on Economic Projections 88
6-3 Draft General Plan, Projected Non -Residential Development 89
6-4 Draft General Plan, Projected Recurring Revenues and Costs 92
7-1 High Volume/Discount Retail Alternative,
Projected Non -Residential Development 95
7-2 High Volume/Discount Retail Alternative,
Projected Recurring Revenues and Costs 97
7-3 Low Growth Alternative, Projected Residential Development 98
7-4 Low Growth Alternative, Projected Non -Residential Development 99
7-5 Low Growth Alternative, Projected Recurring Revenues and Costs 100
7-6 No Project Alternative, Projected Residential Development 102
7-7 No Project Alternative, Projected Non -Residential Development 103
7-8 No Project Alternative, Projected Recurring Revenues and Costs 104
7-9 Comparison of 1995 and Alternatives: 2015
Estimated and Projected Residential Development 105
7-10 Comparison of 1995 and Alternatives: 2015
Estimated and Projected Non -Residential Development 106
iv
LIST OF TABLES
(continued)
Table Page
7-11 Comparison of 1995 and Alternatives at Buildout
Estimated and Projected Residential Development 107
7-12 Comparison of 1995 and Alternatives at Buildout
Estimated and Projected Non -Residential Development 108
7-13 Comparison of Adjusted Base Year and Alternatives: 2015
Estimated and Projected Recurring Revenues and Costs 109
7-14 Comparison of Adjusted Base Year and Alternatives at Buildout
Estimated and Projected Recurring Revenues and Costs 110
A-1 Land Use and Market Factors, Residential 112
A-2 Land Use and Market Factors, Non -Residential 114
B-1 Revenue Factors 119
B-2 Cost Factors 124
C-1 Draft General Plan, Detailed Revenue and Cost Projections 127
C-2 High Volume/Discount Retail Alternative,
Detailed Revenue and Cost Projections 128
C-3 Low Growth Alternative, Detailed Revenue and Cost Projections 129
C-4 No Project Alternative, Detailed Revenue and Cost Projections 130
v
PART 1
KEY ISSUES
1
CHAPTER 1
ECONOMIC AND FISCAL ISSUES
This chapter begins the analysis by discussing a number of issues, including alternative
land uses. Many of the issues relate to fiscal and financial considerations and increasing
the Town of Truckee's economic competitiveness within the regional economy. The
issues have been organized into two distinct, but interrelated, categories: economic
issues and fiscal issues.
1.1 Truckee Overview
The Town of Truckee has experienced significant employment, population and housing
unit growth over the last 10 years. A number of favorable conditions have contributed to
this growth. The Town is well positioned within the Truckee/Tahoe/Reno area. Truckee
is located along Interstate 80, approximately 100 miles east of Sacramento near the
California State boundary. In addition to Interstate 80, Truckee has highway access north
and south via highways 89 and 267. In addition AMTRAK rail and Greyhound bus
transportation is available in the Town. Air transportation is available from Reno/Tahoe
International Airport, 35 miles east of Truckee. The local Truckee -Tahoe Airport along
Highway 267 provides facilities for small aircraft and cargo business.
Town of Truckee
Economic and Demographic Summary Data
Historic Levels
Projected Levels
1985
1995
2015
Total Employment
3,401
5,225
8,109
Total Population
7,226
11,791
17,253
Total Housing Units
5,225
9,039
13,271
Source: Stanley R. Hoffman Associates, Inc.
The Town of Truckee has taken advantage of its location in the Truckee/Tahoe/Reno area
and successfully demonstrated the Town's attractiveness to visitors and permanent
residents. The Town offers a wide variety of summer and winter recreational
opportunities and quality of life amenities which can be enhanced through continued
provision of good levels of public service and infrastructure development to attract year-
round residents upon which a strong economic base can be built.
Housing Growth. Over the period from 1985 to 1995, the estimated number of dwelling
units in Truckee grew from 5,225 to 9,039. This represents nearly an increase of about
73 percent. Truckee has a high rate of home ownership, with nearly two-thirds of the
2
housing stock being owner -occupied. However, over 50 percent of the housing units in
Truckee are used only seasonally. Housing is projected to grow to 13,271 units by 2015.
Population Growth. Population is estimated to have increased from 7,226 in 1985 to
11,791 in 1995. Population projections are based on historic trends of employment to
population, and population to housing units. Population is projected to expand from its
current estimated level of 11,791 to 17,253 by 2015.
Employment Growth. Truckee job base grew rapidly during the last 10 years. According
to the consultant's database, jobs in Truckee expanded at an annual average rate of
about 4.4 percent from 1985 to 1995, from about 3,401 in 1985 to an estimated 5,225 by
1995. Employment is projected to expand to 8,109 by 2015. The Truckee economy
shows a preponderance of local serving employment because Truckee serves as a trade
center for a large trading hinterland and receives additional demand through travel and
tourism. The Truckee area has not been a center for basic jobs because of its remote
location, higher costs of construction and operation and lack of a large labor force.
Town of Truckee
Employment Growth: 1985 - 2015
Employment Category
Historic
Levels
Projected
Level
Historic
Growth
Projected
Growth
1985
1994
2015
1985-1994
1994-2015
Basic Manufacturing
78
162
359
84
197
Basic Non -Manufacturing
500
727
1,009
227
282
Local Serving
2,823
4,155
6,741
1,331
2,586
Total Employment
3,401
5,044
8,109
1,642
3,065
Source: Stanley R. Hoffman Associates, Inc.
Local serving jobs represent over 80 percent of the total jobs in the Town of Truckee.
The largest shares of local serving jobs in Truckee are in the retail trade, local
government and construction sectors. Retail trade establishments are engaged in selling
merchandise to the general public for personal or household consumption. Local
government jobs are primarily those associated with the Town, special districts and the
school district. Construction includes building construction by general contractors or
operative builders, heavy construction, and special trade contractors.
The following table shows that the Town of Truckee captured 17.7 percent of the job
growth within Nevada County over the 1985 to 1994 period. Truckee captured 18.8
percent of the County's growth in basic manufacturing and 18.7 percent of the County's
growth in local serving employment over the 1985 to 1994 period. Truckee's share of the
County's basic non -manufacturing growth over the same period was 13.5 percent.
3
Town of Truckee
Share of Nevada County
Employment Category
Share of Jobs
Share of Growth
1985
1994
1985-1994
Basic Manufacturing
3.6%
6.2%
18.8%
Basic Non -Manufacturing
16.2%
15.2%
13.5%
Local Serving
20.5%
19.9%
18.7%
Total Employment
17.9%
17.8%
17.7%
Nevada County is projected to add jobs at a faster average annual rate over the 1994 to
2015 period than over the past ten years, 7.2 percent annually for 1994 to 2015,
compared with 4.9 percent annually over the 1984 to 1994 period. Truckee is projected
to add jobs at the average annual rate of 6.7 percent from 1994 to 2015, growing from
an employment base of 5,044 in 1994 to a projected employment of 8,109 in 2015.
While the Town is viewed as undergoing transition to support more manufacturing and
other basic employment activities, the local serving employment sectors are still expected
to account for the bulk of job growth. As was shown above, an additional 2,586 local
serving jobs are projected over the 1994 to 2015 period. The most important categories
of local serving employment will be retail trade, local government, self employed and
construction.
While the Town wishes to accommodate more basic jobs, there is a recognized need to
maintain the Town's high standard of community development and quality of life. The
provision of a range of housing opportunities to attract business and meet general plan
goals must be included in the Town's economic development strategy. Existing and
future residents of Truckee will benefit from economic development in a number of ways.
Economic development will provide a wider range of job opportunities for individuals, and
will also contribute financial resources to improve the quality of life in Truckee.
1.2 Economic Issues
Issue Statement
How can Truckee accommodate projected employment growth while providing a diversity
and balance of development, employment and housing opportunities?
Description of Options
Defining Market Segments for Employment Centers. Under this alternative, the Town
would define roles or niches for each employment center in the Town. Potential types
of employment centers may include:
4
• Expansion and enhancement of retail space in the historic commercial core
• Continued support of Downtown development for civic uses, mixed use, cultural
facilities, government offices and attached housing
• Promote tourism and recreation through destination resort development
• Promote retail development to meet broader retail demand, especially in general
merchandise categories
• Promote upscale garden office employment center near residential development to
attract regional serving activities
• Promote industrial development with a range of lot sizes which could accommodate
single users or multi -tenant developments and take advantage of the highway, rail and
air accessibility of Truckee
Promote additional manufacturing opportunities for resource based industries
• Accommodate commercial recreation uses, focusing on the many recreation activities
in the Truckee area
Meeting a Range of Housing Demands. The Town would review designations for
housing development and evaluate the residential mix in terms of meeting future demand,
including housing of the following types:
• Well -planned, high -quality attached ownership and rentership housing
• Large lot and executive homes
• High density developments adjacent to employment centers, shopping, transit facilities
and community services
Planning for Mixed -Use Developments. The Town should apply mixed -use concepts
to generate additional market support for its employment centers. Based on Urban Land
Institute standards, mixed -use developments include three or more income -generating
land uses, such as office, retail and hotel. Mixed -use developments could be integrated
with circulation plans and adjacent developments to reduce automobile dependency.
Implications
Defining Market Segments for Employment Centers. By clearly defining a role, image
and market segment for each employment center, Truckee can reduce unnecessary
competition, serve a wider range of new businesses and provide diversity and mixed -use
development opportunities in the Town.
5
Meeting a Range of Housing Demands. By providing diversity in the housing market,
Truckee will meet requirements associated with the Housing Element, will enhance the
potential to attract business, and increase economic opportunities for Truckee residents.
Planning for Mixed -Use Developments. Mixed -use development would be appropriate in
providing a diversity in the Town's employment centers. This development type may also
provide attractive locations for attached housing. Service provision to mixed -use
developments may be facilitated and Town revenue generation enhanced.
Recommendation
The Town should develop a marketing strategy and economic development element
geared toward diversification, specifically identifying retail and industrial types and resort
developments most suited to Truckee.
1.3 Fiscal Issues
Issue Statement
How can Truckee best plan its future development and implement policies to achieve
fiscal viability?
Service Provision
The Town of Truckee provides services in the areas of police protection, streets and
drainage maintenance, snow removal, community development, animal control and
general government services. Fire protection and ambulance service is provided by the
Truckee Fire Protection District, which is a special district of Nevada County. The
Truckee -Donner Recreation and Park District (T-DR&PD) provides recreation programs
and services, and operates and maintains park and recreation facilities. The Truckee Fire
Protection District and the T-DR&PD receive property tax revenues, grants, parcel
assessments, user fees and subdivision fees. This discussion focuses on the fiscal
viability of the Town and does not address the fiscal viability of the special districts.
Truckee currently maintains a high level of service provision to residents and businesses.
The Town's future growth will require significant additional Town services, but will also
bring the potential for increased revenue generation. In addition to the ongoing service
requirements, the Town faces needs for major capital improvements; which are being
addressed through a variety of implementation techniques.
Truckee's Existing Fiscal Balance
The 1994-1995 Estimated Actual Budget shows a fiscal balance after transfers of
revenues from the impact fee fund. An analysis of the budget in terms of annual
recurring revenues and costs for maintenance and operations shows the following results.
6
The Truckee Revenue Base. Truckee receives most of its operations revenues from
the following six sources:
Percent of Budget Revenues
Property tax 35.9%
Sales and use tax 22.1%
State gasoline tax 10.2%
Transient occupancy tax 9.1%
Motor vehicle license fees 9.1%
Special service area revenue 4.9%
Percentage from Top Six Revenue Sources 91.3%
This revenue analysis is based on ongoing revenues, and does not include one-time
revenues, such as building permits, planning and inspection fees which are levied
one-time only, and are intended to cover service costs.
Service Cost Requirements. In terms of service costs, the direct costs associated with
police protection, snow removal, contribution to reserves, general government
overhead and streets maintenance account for most costs.
Police protection
Snow removal
Contribution to reserves
General government overhead
Streets maintenance
Percentage of Top Five Costs
Percent of Budget Expenditures
27.7%
18.1%
17.5%
14.7%
11.9%
89.9%
Fiscal Characteristics of Different Land Uses. Land uses have varying fiscal
characteristics in terms of revenue and cost generation. However, fiscal
interdependencies must also be considered when evaluating land use mixes for the
General Plan.
Residential. Residential land uses typically create the highest service demands,
creating additional needs for police and fire protection, and other city services.
However, residential land uses also generate significant population -based revenues
such as motor vehicle license fees, and state gasoline taxes. While these population -
based revenue sources may partially compensate for increased service demands,
residential development alone may often generate a negative fiscal impact.
Retail Development. Shopping centers and other retail developments generate sales
tax revenues for the Town of Truckee equal to 1.00 percent of taxable sales. While
retail developments can create some demands for public safety and public services,
revenues generated typically exceed costs by a substantial margin.
7
Lodging. Hotel, motel and bed and breakfast uses generate transient occupancy
taxes based on room rental revenues, and are fiscally very positive. The Town also
receives transient occupancy tax revenues rentals of second homes and cabins.
Employment. Employment land uses include office developments, business parks,
and industrial, manufacturing and warehouse uses. The major revenue sources for
employment land uses are property taxes and business license taxes. However, the
Town of Truckee does not currently have a business license tax. Without an
additional revenue source, such as sales tax, employment land uses often have a
fiscally neutral impact on the Town. However, some manufacturing and warehouse
land uses can also generate significant sales taxes.
Economic Interdependence of Land Uses. Independently, different land use types
produce a diverse range of fiscal impacts. However, different land uses are economically
dependent upon each other, resulting in the need for a balance of land uses. Some of
these economic interdependencies include:
Housing and employment. Housing availability and community amenities are
emerging as a key component in attracting business to an area.
Employment and lodging. The non -destination lodging industry relies on employment
generated by industrial and business park land uses. In addition, a segment of the
demand for lodging is also generated by visitors.
Residential and retail. Local population generates the majority of the demand for
community and neighborhood retail, as well as a significant portion of the demand for
regional retail.
Land Development Phasing Criteria. In addition to the mix of land use types,
consideration needs to be given to the phasing of land uses such that revenue streams
are in place to expand services to new development. For capital needs, consideration
must be given to the capacity of existing and new development to incur debt to provide
for infrastructure improvements in a timely manner.
Description of Options
The Land Use Alternatives and Fiscal Balance. The Town has identified four land use
alternatives for the general plan:
• Draft General Plan
• High Volume/Discount Retail Alternative
• Low Growth Alternative
• No Project Alternative
These land use alternatives are described in detail in Chapters 6 and 7 of this report.
8
As shown in the table below, the year 2015 projection is the same for the Low Growth
Alternative and the Draft General Plan. The High Volume/Discount Retail Alternative
results in higher employment totals for the year 2015. The year 2015 development under
the No Project Alternative essentially assumes buildout of an additional 4,000 housing
units and an additional 45,000 square feet of entitled commercial and industrial
development. Employment in 2015 for the No Project Alternative is projected at 5,368,
significantly below the other three alternatives.
Town of Truckee General Plan
Alternative Development Descriptions: Year 2015
Draft
General Plan
High Volume/
Discount
Retail
Alternative
Low Growth
Alternative
No Project
Alternative
Population (persons)
17,253
17,253
17,253
17,751
Housing Units (dwelling units)
13,271
13,271
13,271
13,039
Employment (jobs)
8,109
8,505
8,109
5,368
Source Stanley R. Hoffman Associates, Inc.
The table below shows the projected land uses at buildout for the alternatives. The
development proposed for the Low Growth Alternative would result in 545 fewer housing
units and 660 fewer people than the housing units and population projected under the
Draft General Plan and the High Volume/Discount Retail Alternatives. Some 1,150 fewer
jobs are projected under the Low Growth Alternative than under the Draft General Plan.
At buildout, the High Volume/Discount Retail Alternative represents a different mix of the
total commercial square feet projected than that projected under the Draft General Plan,
and results in only a slight increase in employment. Finally, the No Project Alternative
projection is the same at buildout as in 2015.
Town of Truckee General Plan
Alternative Development Descriptions at Buiklout
Draft
General Plan
High Volume/
Discount
Retail
Alternative
Low Growth
Alternative
No Project
Alternative
Population (persons)
22,500
22,500
21,840
17,751
Housing Units (dwelling units)
17,620
17,620
17,075
13,039
Employment (jobs)
13,480
13,609
12,330
5,368
Source: Stanley R. Hoffman Associates, Inc.
9
Projected Fiscal Balance in 2015. The alternative projections in 2015 all result in positive
fiscal outcomes, as shown below.
Town of Truckee General Plan
Projected Fiscal Impacts of Alternatives: Year 2015
(In Constant 1994-1995 Dollars)
Draft
General Plan
High Volume!
Discount Retail
Alternative
Low Growth
Alternative
No Project
Alternative
Recurring Revenues
$10,073,123
$10,534,528
$10,073,123
$9,150,651
Recurring Costs
$7,449,162
$7,476,989
$7,449,162
$7,577,511
Net Annual Recurring Surplus
$2,623,961
$3,057,539
$2,623,961
$1,573,140
Revenue/Cost Ratio
1.35
1.41
1.35
1.21
Source Stanley R. Hoffman Associates, Inc.
Projected Fiscal Balance at Buildout. Buildout of all land use alternatives results in
substantially positive fiscal outcomes. As shown below, the net surplus at buildout ranges
from $6.15 million for the Low Growth Alternative to $6.92 million for the Draft General
Plan and $7.14 million for the High Volume/Discount Retail Alternative; with revenue/cost
ratios of 1.66, 1.72 and 1.74.
The major difference between the alternatives is that more sales and use tax is generated
under the Draft General Plan and the High Volume/Discount Retail Alternative.
Commercial retail and mixed use categories constitute a critical component in the
generation of future fiscal surpluses for these alternatives, particularly in the downtown
commercial area and for specialty and regional retail opportunities. These alternatives
also constitute an increase and a diversification of other non-residential land uses,
including the industrial base and the commercial and resort hotel market.
The No Project Alternative is also fiscally positive, with its buildout fiscal projection the
same as for 2015. A projected recurring surplus of $1.57 million, with a revenue/cost
ratio of 1.21 is projected for the No Project Alternative. Property tax and population
based revenues from residential land uses are the critical components of the No Project
Alternative. Sales and use tax revenues generated by commercial retail and other non-
residential land uses represent a smaller share of total projected revenues than the share
they represent in Truckee's 1995 total estimated revenues.
10
Town of Truckee General Plan
Projected Fiscal Impacts of Alternatives at Buildout
(In Constant 1994-1995 Dollars)
Draft
General Plan
High Volume/
Discount Retail
Alternative
Low Growth
Alternative
No Project
Alternative
Recurring Revenues
$16,550,705
$16,789,746
$15,522,736
$9,150,651
Recurring Costs
$9,633,530
$9,646,129
$9,368,204
$7,577,511
Net Annual Recurring Surplus
$6,917,175
$7,143,618
$6,154,531
$1,573,140
Revenue/Cost Ratio
1.72
1.74
1.66
1.21
Source- Stanley R. Hoffman Associates, Inc.
Additional Revenue Sources. While new revenue sources to towns are limited, the
potential sources, identified by the Town include utility user taxes, business license tax,
a redevelopment property tax increment to finance infrastructure and public facilities in
downtown and selected fees and charges. The Town may also want to encourage
collection of transient occupancy tax for private rentals of second homes.
Service Cost Management Approaches. Management approaches to service costs may
include cost reduction through consolidation of various agencies and special districts.
Implications
The Overall Land Use Mix and Fiscal Balance. The land use alternatives for the general
plan include a strong component of retail, visitor -oriented and employment land uses.
Achieving such a mix in a realistic manner will involve defining maximum opportunities
related to transportation improvements; the proximity to highway, rail and air facilities;
recreational and tourism opportunities; and important quality of life attractors.
The Phasing of Development and Fiscal Balance. Phasing the types of development to
achieve fiscal balance may be necessary to enable the Town to provide adequate
services. The Town may need to monitor the fiscal balance as development occurs.
Additional Revenue Sources. Tax increases will always be difficult to enact, particularly
since they are likely to require at least a majority vote of the electorate. Fee increases,
however, can be continually updated to reflect actual Town costs. The Town needs to
annually review and adjust revenue programs based on capital and operations and
maintenance needs and economic and political feasibility.
Service Cost Management Approaches. It is likely that service cost management
approaches, including consolidation, will continue to be explored and applied by local
governments in California. Government restructuring will probably be dramatic over the
next several years, and Truckee needs to anticipate and prepare for these changes.
11
Recommendations
The General Plan must accommodate employment opportunities and retail opportunities
which would benefit from the Town's accessibility to the major highways and proximity to
major recreational and other quality of life attractions. Included in these opportunities
should be a focus on the economic strengthening of the downtown.
The Town should explore development standards which will promote compact, mixed -use
developments to provide diversity, economic advantages and linkages with the
transportation system.
In its Land Use Element, the Town should consider methods to assure the phasing of
land uses to maximize the Town's fiscal liquidity and flexibility. The Town may also
consider phasing criteria related to portions of its Sphere of Influence, particularly outlying
areas, to avoid premature development and costly extensions of Town services. Each
of the proposed General Plan Alternatives evaluated, with the exception of the No Project
Alternative, achieves such a mix.
The Town may want to consider a business license tax that is reasonable and
economically feasible, particularly as it impacts local businesses. The business license
tax can also be a source of economic information that is useful for planning purposes.
The Town's land use policy, economic development strategy and marketing strategy
should be integrated and coordinated. The strategy should include ongoing monitoring
of the Town's fiscal balance to assure a mix of land uses that achieve fiscal viability.
1.4 Capital Facilities Financing Issues
Issue Statement
How can Truckee best improve and maintain necessary capital facilities?
Necessary Improvements
Truckee's need for improved capital facilities have been quantified in the area of road
improvements. A recent report by the Road Improvement Committee to the Town Council
estimated that the costs to improve the roads in the Town were $15.9 million, based on
engineering studies. There is also a need to provide an ongoing and equitable snow
removal system. A brief discussion of the options and recommended alternative for the
financing of road improvements and snow removal is presented.
The Town currently operates from rented office space and rents space for the animal
shelter. The Town's corporation yard is also inadequate. Cost estimates for
improvements to these facilities are not currently available. Because this analysis is
prepared at a general plan level, no repayment analysis or recommended financing
12
strategy is presented for these capital facilities, however a description of financing options
and implications for these and other capital facility improvements is presented.
Road Financing
The Truckee Road Improvement Committee has recommended a combination financing
strategy for road restoration and ongoing maintenance. The Committee assumes that
with community adoption of this recommended policy, snow removal activities will be
funded entirely by the Town General Fund. The Committee recommendations include a
$15.9 million bond issue for road restoration purposes accompanied by a 0.5 cent local
sales tax to provide for ongoing road maintenance. Under the recommended alternative,
an annual assessment of $133 per residential unit and $0.099 per commercial and
industrial square foot is estimated for repayment of the bond over a period of fifteen (15)
years. The additional sales tax of 0.5 percent would also be added to all taxable
purchases in Truckee for the long term road maintenance programs.
General Financing Techniques
The following general financing techniques can be used for a variety of Town facilities,
as well as facilities of other agencies.
Options
Pay -as -You -Go. This financing approach involves direct financing of facilities and
services in direct relationship to the needs of each development project as it occurs.
Examples of pay as you go financing include developer impact fees (DIFs), growth impact
fees and traffic mitigation fees which can be implemented subject to Government Code
§66000 et seq. (AB1600). While discussion of financing mechanisms is premature at this
time, the use of sinking funds to allow improvements to be made on a pay-as-you-go
basis has been discussed by Town staff. A strong fiscal base for Truckee may enable
pay-as-you-go funding from Town annual surpluses.
Pay-as-you-go financing is often favored by property owners and developers, since
payments are not required until development occurs.
Special Tax Funding. This approach relies upon a single mechanism for funding of
capital facilities and services, such as a Mello -Roos Community Facilities District (CFD).
The CFD can issue bonds to be repaid through annual special taxes, and can also levy
one-time special taxes which can support pay as you go funding of facilities.
Mello -Roos bonds can be used for a wide range of public facilities, including many which
cannot be funded through assessment bonds. These facilities include libraries, fire
stations, schools and Town facilities such as a corporation yard or Town Hall.
13
Assessments. Assessments on property can be structured under the Municipal
Improvement Act of 1913 and the Improvement Bond Act of 1915 (1913/1915 Acts) and
the Landscape and Lighting Assessment Act of 1972.
Assessment bonds are limited to facilities for which special benefits can be attributed to
specific parcels. These facilities include roads, water, sewer and landscaping.
Assessments may be less favored by property owners and developers than developer
impact fees, because assessments are levied upon adoption of proceedings. Thus they
are levied equally upon all property, whether development is imminent, or not
contemplated until far in the future.
General Obligation Bonds. General obligation bonds would be backed by the full faith
and credit of the Town. They could be funded by general fund surpluses. General
obligation bonds would require a two-thirds majority approval of Town voters.
General obligation bonds would be appropriate for Town -wide facilities, such as a Town
Hall or corporation yard. If funded through general fund surpluses, general obligation
bonds would have no direct tax or fee impacts on residents, businesses, property owners
and developers.
Recommendation
It is likely that as the General Plan is implemented a number of specific financing
techniques will be applied. It is important that these techniques be designed as part of
an explicit financing strategy, considering the interests of the property owners, future
residents and businesses, the Town of Truckee and other service providing agencies.
A determination of detailed financing requirements and programs for timely funding of
improvements should be part of the financing strategy. This will include funding levels,
method of funding, nature and extent of public fiscal commitments, if any, and other
aspects of funding provisions.
14
PART 2
ECONOMIC AND DEMOGRAPHIC ANALYSIS
15
CHAPTER 2
ECONOMIC AND DEMOGRAPHIC DATABASE
This chapter presents the economic and demographic database for the Town of Truckee
General Plan. Section 2.1 provides the population, housing and labor force
characteristics. Included in this section is a regional overview of the Town of Truckee.
Population and housing growth trends for the 1980 to 1990 period are presented for
Nevada County and the jurisdictions within the County. Current estimates for population
and housing are then presented. A comparison of key 1990 demographic information for
the Town of Truckee, the Truckee Environs, the Truckee Area of Concern and Nevada
County is included as part of the regional overview.
Section 2.1 also presents detailed 1980 and 1990 population, housing, and household
characteristics for the Town of Truckee and the Truckee Environs. Detailed 1990 income
and labor force information is also presented for the these two areas.
Section 2.2 presents the economic and employment database. Historical trends of
employment by industry for Nevada County and the Town of Truckee are presented. In
addition, this section includes current estimates of employment by industry.
Regional Setting
The Town of Truckee was incorporated in March 1993. The Town of Truckee is located
in Nevada County, along Interstate 80 near the California State boundary. The Town's
southern boundary is coterminous with the Placer County boundary. The Town is 12
miles northwest of the Placer County community of Kings Beach, which lies along the
northern shore of Lake Tahoe via Highway 267. The Northstar resort is on Highway 267
approximately 6 miles south of Truckee. The Squaw Valley and Alpine Meadows resorts
in Placer County lie about 10 miles south of the Town along Highway 89. The City of
Reno, Nevada is approximately 35 miles to the east of the Town of Truckee and
Sacramento is approximately 100 miles to the west.
2.1. Population, Housing and Labor Force Characteristics
Demographic information from the 1980 and 1990 Censuses and the California
Department of Finance (DOF) Demographic Research Unit is not available at a town level
for Truckee because Truckee did not become incorporated until March 1993. Therefore,
a geographic description of the Town of Truckee and surrounding areas of interest in
terms of census tracts is necessary to adequately describe the population, housing and
labor force characteristics. Census geography is used because of data availability, and
are not meant to depict any future boundaries of Truckee. These future boundaries will
be based on political and economic factors.
16
A visual depiction of the Town of Truckee and the Truckee Environs is shown in Figure
1. The Town boundary closely approximates the summation of Census Tract 12.01 and
Census Tract 12.02, excluding Block Group 2 of Census Tract 12.02 from the 1990
Census. The 1980 Census description of the Town of Truckee includes Census Tract 12.
The Truckee Environs area is outside the current Town boundary and is closely related
to the Town of Truckee in terms of daily interactions between the two areas. The
Truckee Environs is defined as Block Group 2 of Census Tract 12.02 and Census Tract
11 from the 1990 Census. The 1980 Census definition of the Truckee Environs includes
Census Tract 11 only.
In addition to the above areas, some key 1990 demographic information is also presented
for the Truckee Area of Concern. The Truckee Area of Concern is the area to the south
of the Town in Placer County and is defined as Census Tract 220.01 in Placer County.
Growth and development in this area, which includes Martis Valley, impacts the Town of
Truckee.
The following regional overview presents comparisons of population and housing for 1980
and 1990 for the jurisdictions within Nevada County. A comparison of key 1990
characteristics for the Town of Truckee, the Truckee Environs and the Truckee Area of
Concern with Nevada County will then be presented. Northwest Lake Tahoe is also
discussed in terms of its potential impact on retail demand in Truckee. Detailed
demographic information for the Town of Truckee and the Truckee Environs follows the
regional overview.
2.1.1 Regional Overview
Population and Housing Unit Growth
Table 2-1 presents the 1980 and 1990 Census population for the current jurisdictions
within Nevada County and the unincorporated area of the County. There are currently
three incorporated areas in the County of Nevada. The incorporated cities of Grass
Valley and Nevada City were joined by Truckee which incorporated in March 1993.
Nevada County grew significantly over the 1980 to 1990 period. The population
increased by 26,865 persons and the total housing stock increased by 12,593 units over
this period. This growth represents an average annual growth rate of 4.3 percent for
population and 4.2 percent for housing units.
The Town of Truckee experienced a faster growth rate in both population and housing
units during the 1980s than the County, the unincorporated area of the County and Grass
Valley and Nevada City. Truckee and Nevada City experienced average annual housing
growth rates that were higher than their average annual growth rates for population.
17
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However, Truckee's average annual housing growth rate of 6.8 percent was considerably
higher than the rates in the other jurisdictions in the County and higher than the Nevada
County average annual growth rate of 4.2 percent.
When the Truckee area is included as part of the unincorporated County area, the
unincorporated area increased in population by 24,090 people, based on a population of
42,517 in 1980 and a population of 66,607 in 1990. The increase in the Town of Truckee
population, at 3,373 persons, represents approximately 14.0 percent of the unincorporated
area population growth over the 1980 to 1990 period.
TABLE 2-1
NEVADA COUNTY
POPULATION AND HOUSING UNIT GROWTH: 1980 TO 1990
Population
Housing Units
1980-1990 Change
Average Annual
Growth Rate
Area
1980
1990
1980
1990
Population
Housing
Units
Population
Housing
Units
Grass Valley
Nevada City
Truckee'
6,697 9,048 3,388 4,385
2,431 2,855 1,150 1,399
5,539 8,912 3,577 6,932
2,351
424
3,373
997
249
3,355
3.1%
1.6%
4.9%
2.6%
2.0%
6.8%
Unincorporated 36,978 57,695 16,644 24,636 20,717 7,992 4.5% 4.0%
County Total 51,645 78,510 24,759 37,352 26,865 12,593 4.3% 4.2%
Note 1: Truckee is defined as the summation of Census Tracts 12.01 and 12.02, excluding Block Group 2 of Census Tract
12.02 in 1990, and Census Tract 12 in 1980.
Source: Stanley R. Hoffman Associates, Inc.
1980 Census, "Detailed Characteristics, Census Tract 12.
1990 Census, "Summary Tape File 3A", Census Tract 12.01 and Census Tract 12.02, excluding
Block Group 2 of Census Tract 12.02.
Housing unit growth for the unincorporated area of the County with the Truckee area
included as part of the unincorporated County area shows an increase of 11,347 units,
from 20,221 units in 1980 to 31,568 in 1990. The 3,355 housing units that were added
to Truckee over the 1980 to 1990 period represent 29.6 percent of the total housing
growth in the unincorporated area.
Residential Building Permit Trend Data
Table 2-2 presents seasonal data on residential building permits issued in Truckee for the
16 -year period from fiscal year 1977-1978 through fiscal year 1992-1993. Over this
period, residential building permits average 369 per year. In terms of seasonality, about
38 percent of permits are issued in the summer and 32 percent are issued in the spring.
About 20 percent are issued in the months from October through December and only 9
percent are issued in winter months from January through March. This table illustrates
19
TABLE 2-2
TOWN OF TRUCKEE GENERAL PLAN
RESIDENTIAL BUILDING PERMITS
BY FISCAL YEAR AND QUARTER
Quarter
July -
September
October -
December
January -
March
April -
June
Total for
Fiscal
Year
Fiscal Year
1977-1978 94 83 30 194 401
1978-1979 296 271 76 262 905
1979-1980 316 106 118 166 706
1980-1981 244 119 42 151 556
1981-1982 146 49 5 30 230
1982-1983 83 38 6 50 177
1983-1984 103 40 8 79 230
1984-1985 107 31 6 67 211
1985-1986 90 35 16 78 219
1987-1988 107 20 23 57 207
1988-1989 62 52 49 161 324
1989-1990 29 34 7 53 123
1990-1991 113 55 17 138 323
1991-1992 143 87 31 164 425
1992-1993 198 96 72 152 518
15 -year Average 142 74 34 120 370
Percent by Quarter 38.4% 20.1% 9.1% 32.4% 100.0%
Source: Stanley R. Hoffman Associates, Inc.
Town of Truckee, Community Development Department, Building and Safety Division
20
the long-term strength of residential demand in Truckee, as well as the seasonal nature
of the construction economy.
Current Population and Housing Estimates
Department of Finance (DOF) January 1, 1995 population and housing estimates for
Nevada County jurisdictions, including the Town of Truckee, are presented in Table 2-3.
These are the first estimates available for Truckee since incorporation.
Town of Truckee. As shown in Table 2-3, Truckee's population is estimated to have
grown by 2,879 over the period from 1990 to 1995, representing an increase of about 32
percent. Over the same period, housing units expanded by 2,107, for an increase of
about 30 percent.
TABLE 2-3
NEVADA COUNTY
POPULATION AND HOUSING UNIT GROWTH: 1990 TO 1995
Area
Population
Housing Units
1990-1995 Change
1990 1995
1990 1995
Population Housing Units
Grass Valley
Nevada City
Truckee
9,048
2,855
8,912
9,639
2,938
11,791
4,385
1,399
6,932
4,634
1,443
9,039
591
83
2,879
249
44
2,107
Unincorporated 57,695 65,124 31,568 35,225 7,997 3,657
County Total 78,510 89,492 37,352 42,126 10,982 4,774
Source: Stanley R. Hoffman Associates, Inc.
California Department of Finance, Demographic Research Unit, Report E-8090, January, 1992; Report E-5, May 1995.
1990 Demographic Characteristics
Table 2-4 presents key 1990 demographic information for the Town of Truckee, the
Truckee Environs, the Truckee Area of Concern and Nevada County.
• The Town of Truckee has 18.6 percent of the housing units in Nevada County and
11.4 percent of the County population.
The Town of Truckee plus the Truckee Environs represents 21.0 percent of the
Nevada County housing units and 12.0 percent of the County population.
The Town of Truckee has a higher percentage of occupied housing units than
does the Truckee Environs and the Truckee Area of Concern. However, at 47.2
percent, this percentage is far below the 82.4 percent occupancy rate in Nevada
County.
21
Owner -occupied housing units represent 30.8 percent of all housing units in the
Town of Truckee. This percentage is half of the ratio of owner -occupied housing
units in Nevada County and higher than the ratio of owner -occupied units in the
Truckee Environs and the Truckee Area of Concern.
The Town of Truckee, the Truckee Environs and the Area of Concern have very
high vacancy rates when compared with Nevada County. These vacancy rates are
indicative of the large number of seasonal housing units in these areas. Truckee's
vacancy rate of 52.8 percent is considerably lower than the 79.0 percent vacancy
rate in the Truckee Environs and the 69.1 percent vacancy rate in the Area of
Concern.
TABLE 2-4
TOWN OF TRUCKEE, TRUCKEE ENVIRONS, TRUCKEE AREA OF CONCERN
AND NEVADA COUNTY
1990 DEMOGRAPHIC CHARACTERISTICS
Town of Truckee
Truckee Environs
Area of Concern
Nevada County
Number Percent
Number Percent
Number Percent
Number
Percent
Housing Units
Owner -Occupied 2,134 30.8% 126 13.7% 1,207 24.1% 22,886 61.3%
Renter -Occupied 1,137 16.4% 67 7.3% 343 6.8% 7,872 21.1%
Vacant 3,661 52.8% 725 79.0% 3,472 69.1% 6,594 17.6%
Total 6,932 100.0% 918 100.0% 5,022 100.0% 37,352 100.0%
Total Population 8,912 508 4,013 78,510
Population Per
Dwelling Unit 1.28 0.55 0.80 2.10
Population Per
Household 2.70 2.26 2.57 2.51
Per Capita
Income $17,468 $29,485 $18,175 $15,760
Median
Household
Income $40,012 $24,708 $35,121 $32,200
Median Housing
Value $132,865 $88,928
Median Rent
$149,700 $154,400
$690 $654 $667 $598
Unemployment
Rate 4.9% 16.9% 4.2% 6.1%
Source: Stanley R. Hoffman Associates, Inc.
1990 Census, "Summary Tape File 3A".
22
The low number of persons per dwelling unit for Truckee, the Truckee Environs
and the Area of Concern are also indicative of the large number of seasonal units
in these areas. Truckee has 1.28 persons per dwelling unit, while the Area of
Concern has 0.80 persons per dwelling unit and the Truckee Environs has 0.55
persons per dwelling unit. Nevada County has 2.10 persons per dwelling unit.
When comparing households, or occupied housing units, with the other areas,
Truckee has the highest population per household. At 2.70 persons per
household, it is 0.19 higher than the 2.51 persons per household in Nevada
County. Truckee's average household size is considerably higher than the 2.26
persons per household in the Truckee Environs.
While Truckee's $17,568 per capita income is higher than the County per capita
income, it is comparable to the per capita income of $18,175 in the Area of
Concern and considerably lower than the $29,485 per capita income in the
Truckee Environs. Per capita income is calculated by dividing the total aggregate
income reported by occupied housing units by the population of the area. The
Truckee Environs high per capita income is a result of both the small number of
occupied housing units in the Environs and the fact that some of the occupied
housing units or households reported very high incomes. For such small samples,
average income per person, or per capita income, can exceed median income per
household if some very high income households pull up the average with relatively
little effect on the median, or the midpoint of the distribution.
Truckee has the highest median household income of the four areas, at $40,012,
some $7,812 higher than the median household income for Nevada County.
Truckee's median household income is $15,304 higher than the median household
income in the Truckee Environs and $4,891 higher than the median household
income in the Area of Concern. The median household income is the midpoint
income in the distribution of household incomes.
The Truckee median housing value is $43,937 higher than the median housing
value in the Truckee Environs, but it is $21,535 below the median housing value
for Nevada County and $16,385 below the median housing value in the Area of
Concern.
Truckee has the highest median rent of the four areas, at $690. Median rents in
Nevada County are $92 lower at $598, while median rents in the Truckee Environs
and the Area of Concern are $36 and $23 lower, respectively.
The unemployment rate in the Area of Concern is the lowest of the four areas, at
4.2 percent unemployed civilian workers. The unemployment rate of 4.4 percent
for the Town of Truckee is significantly lower than the County unemployment rate
of 6.1 percent and far below the 16.9 percent unemployed in the Truckee Environs.
23
2.1.2 Town of Truckee
Table 2-5 summarizes population and housing unit growth over the 1980 to 1990 period
for the Town of Truckee. Truckee experienced significant population growth over the past
decade. As of the 1990 Census, the population of the Town of Truckee was 8,912, an
increase of 60.9 percent from the 1980 population. This represents an average annual
growth rate of 4.9 percent.
1990 Census data indicates that the housing stock increased 93.8 percent over the 1980
to 1990 period, from 3,577 to 6,932 dwelling units. The number of occupied housing
units in 1990 was 3,271, an increase of 61.2 percent over the number of occupied
housing units in 1980. The number of persons per occupied dwelling unit (household)
decreased from 2.73 in 1980 to 2.70 in 1990.
TABLE 2-5
TOWN OF TRUCKEE
HOUSING UNITS AND POPULATION: 1980 AND 1990
1980-1990
1980-1990
Average
Annual
1980
1990
Change
Growth Rate
Total Housing Units
Occupied units
Vacant units
Vacancy Rate
Total Population
Population per housing unit
Persons per occupied unit
(Household)
3,577
2,029
1,548
43.3%
5,539
1.55
2.73
6,932
3,271
3,661
52.8%
8,912
1.28
2.70
3,355
1,242
2,113
3,373
-0.27
-0.03
Source: Stanley R. Hoffman Associates, Inc.
1980 Census, "Detailed Characteristics, Census Tract 12.
1990 Census, "Summary Tape File 3A", Census Tract 12.01 and Census Tract 12.02, excluding
Block Group 2 of Census Tract 12.02.
6.8%
4.9%
8.8%
4.9%
The Truckee vacancy rate was 52.8 percent in 1990, an increase over the 43.3 percent
vacancy rate in 1980. The high vacancy rate reflects the large number of units held for
seasonal or other uses. Also reflective of the high number of vacant units is the low
number of persons per dwelling unit, at 1.28 persons per unit in 1990.
The 1990 Truckee housing stock by unit type and tenure is shown in Table 2-6. Nearly
87.3 percent of the total housing stock is comprised of single-family units. Multi -family
housing with five or more units is the second -most prevalent housing type, representing
5.3 percent of the total housing stock. Mobile homes and housing with two to four units
24
constitute 3.9 percent and 2.9 percent of the total housing stock, respectively. The
remaining units are defined by the Census as "Other" and include living quarters such as
railroad cars, campers and vans which are occupied as housing units.
Single family units comprise nearly the same percentage of both the owner -occupied and
the vacant units at 91.8 percent and 91.6 percent, respectively. Single family units
represent a smaller percentage of renter -occupied units at 65.1 percent of all renter -
occupied units. While housing with five or more units is a very small percent of the
owner -occupied housing, this unit type represents nearly 16 percent of renter -occupied
units and 4.8 percent of vacant units.
Nearly two-thirds, approximately 65 percent, of the occupied housing stock is owner -
occupied. The rate of homeownership in the Town of Truckee is higher than the
homeownership rate of 55 percent for the State of California, according to the 1990
Census.
TABLE 2-6
TOWN OF TRUCKEE
1990 HOUSING UNITS BY TENURE
Unit Type
Owner -Occupied
Units
Renter -Occupied
Units
Vacant Units
Total
Number Percent
Number Percent
Number Percent
Number Percent
Single-family
2-4
5 or more
Mobile Homes
Other
Total
1,959
14
13
138
10
2,134
91.8%
0.6%
0.6%
6.5%
0.5%
100%
740
119
181
74
23
1,137
65.1%
10.5%
15.9%
6.5%
2.0%
100%
3,354
67
174
60
6
3,661
91.6%
1.8%
4.8%
1.6%
0.2%
100%
Source: Stanley R. Hoffman Associates, Inc.
1990 Census, "Summary Tape File 3A", Census Tract 12.01 and Census Tract 12.02, excluding
Block Group 2 of Census Tract 12.02.
6,053
200 2.9%
368
272 3.9%
39 0.6%
6,932 100.0%
87.3%
5.3%
Table 2-7 shows housing valuation for the Town of Truckee housing stock (note that the
total owner- and renter -occupied units reporting valuation and contract rent, respectively,
does not equal the total housing stock due to sampling.)
Two-thirds of owner -occupied units are valued at less than $150,000, and the median
housing value is $132,865.
The majority of renters pay more than $650 per month for rent. The median contract rent
in the Town of Truckee is $690.
25
TABLE 2-7
TOWN OF TRUCKEE
1990 HOUSING VALUE AND CONTRACT RENT
Specified Owner -Occupied Units
Specified Renter -Occupied Units
Housing Value
Number of
Occupied
Units
Percent of
Owner-
Occupied
Contract Rent
Number of
Occupied
Units
Percent of
Renter -
Occupied
Less than $75,000
$75,000-$99,999
$100,000-$124,999
$125,000-$149,999
$150,000-$174,999
$175,000-$199,999
$200,000-$249,999
$250,000-$299,999
$300,000-$399,999
$400,000-$499,000
$500,000 and more
Total
Median Housing
Value:
55
289
399
410
240
112
103
50
63
16
7
1,744
$132,865
3.2% Less than $350
16.6% $350-$399
22.9% $400-$449
23.5% $450-$499
13.8% $500-$549
6.4% $550-$599
5.9% $600-$649
2.9% $650-$699
3.6% $700-$749
0.9% $750-$999
0.4% $1,000 and more
100.0% Total
Median Contract
Rent:
126
69
65
56
30
89
75
47
83 7.7%
301 27.9%
138 12.8%
1,079 100.0%
$690
Source: Stanley R. Hoffman Associates, Inc.
19934)0 Census, "Summary Tape File 3A", Census Tract 12.01 and Census Tract 12.02, excluding
Block Group 2 of Census Tract 12.02.
11.7%
6.4%
6.0%
5.2%
2.8%
8.2%
7.0%
4.4%
The distribution of population in terms of age is shown for 1980 and 1990 in Table 2-8.
The age distribution of the Town's population is similar for 1980 and 1990. The largest
age group in both years was the working age group of 19 to 64 years of age, with a very
slight increase in this group's share of the total population from 1980 to 1990.
TABLE 2-8
TOWN OF TRUCKEE
POPULATION BY AGE GROUP: 1980 AND 1990
1980
1990
Age Group
Total
Percent of Total
Total
Percent of Total
Pre-school (0-4)
School age (5-18)
Working age (19-64):
(19-34)
(35-64)
Senior (65 and over)
Total
489 8.8% 816
1,229 22.2% 1,740
3,643 65.8% 5,883
n/a 2,348
n/a 3,535
178 3.2% 473
5,539 100.0% 8,912
Source: Stanley R. Hoffman Associates, Inc.
1980 Census, "Detailed Characteristics, Census Tract 12.
1990 Census, "Summary Tape File 3A", Census Tract 12.01 and Census Tract 12.02, excluding
Block Group 2 of Census Tract 12.02.
9.2%
19.5%
66.0%
26.3%
39.7%
5.3%
100.0%
26
The only age group to experience a decline in their share of the total population was the
school age group of 5 to 18 years, with a decline of 1.5 percent from 1980 to 1990. The
65 and over age group experienced the largest increase in share of the total population,
from 3.2 percent of the total population in 1980 to 5.3 percent of the total population in
1990. The pre-school age group (0-4) showed a small increase of 0.4 percent from 1980
to their 1990 share of 9.2 percent of the total population.
Table 2-9 presents the race and ethnicity of the occupied households for the Town of
Truckee for 1980 and 1990. The racial and ethnic composition of the Town of Truckee
households is very similar in 1980 and 1990.
The 1990 Census showed a one percentage point decline in the share of the white
households, with increases in the share of American Indian and Asian/Pacific Islander
households.
The number of households identifying themselves as Spanish Origin households more
than doubled between 1980 and 1990, from 80 to 172 households.
TABLE 2-9
TOWN OF TRUCKEE
HOUSEHOLDS BY RACE AND ETHNICITY: 1980 AND 1990
1980
1990
Total
Percent of Total
Total
Percent of Total
White 1,972
Black 0
American Indian 13
Asian/Pacific Islander 9
Other 35
Total 2,029
Spanish Origin 80
97.2%
0.0%
0.6%
0.4%
1.8%
100.0%
3,147
0
59
27
38
3,271
172
Source: Stanley R. Hoffman Associates, Inc.
1980 Census, "Detailed Characteristics, Census Tract 12.
1990 Census, "Summary Tape File 3A", Census Tract 12.01 and Census Tract 12.02, excluding
Block Group 2 of Census Tract 12.02.
96.2%
0.0%
1.8%
0.8%
1.2%
100.0%
The educational attainment and income of the 1990 population for the Town of Truckee
is presented in Table 2-10. Over two-thirds of the population had at least some college,
with 34.2 percent of the population having 4 years of college and 6.6 percent of the
population having more than 4 years of college. Less than 10 percent of the population
had received no high school diploma.
The 1990 per capita income for the Town of Truckee was $17,468 and the 1990 median
household income was $40,012.
27
TABLE 2-10
TOWN OF TRUCKEE
1990 EDUCATION AND INCOME
Total
Percent of Total
Educational Attainment (persons 25+)
No high school diploma 561
High school 1,168
Some college 1,730
4 Years college 2,001
4+ years college 386
Total 5,846
Per capita income $17,468
Median household income $40,012
Source: Stanley R. Hoffman Associates, Inc.
1990 Census, "Summary Tape File 3A", Census Tract 12.01 and Census Tract 12.02, excluding
Block Group 2 of Census Tract 12.02.
9.6%
20.0%
29.6%
34.2%
6.6%
100.0%
The labor force characteristics of the 1990 Truckee population are presented in Table 2-
11. Some 78.5 percent of the population 16 years and over was in the labor force in
1990. Of the 5,218 persons in the labor force, 95.1 percent or 4,961 were employed.
TABLE 2-11
TOWN OF TRUCKEE
1990 LABOR FORCE CHARACTERISTICS
Civilian Labor Force (persons 16+)
Not in the labor force 1,433
In the labor force 5,218
Total 6,651
Employed 4,961
Unemployed 257
Total 5,218
Total
Percent of Total
Source: Stanley R.Hoffman Associates, Inc.
1990 Census, "Summary Tape File 3A", Census Tract 12.01 and Census Tract 12.02, excluding
Block Group 2 of Census Tract 12.02.
2.1.3 Truckee Environs
21.5%
78.5%
100.0%
95.1%
4.9%
100.0%
The Truckee Environs area extends beyond the Town boundary to the north and west.
The Truckee Environs area is defined as Block Group 2 of Census Tract 12.02 and
Census Tract 11. These census tract boundaries are used for analytical purposes, and
do not represent political boundaries.
Table 2-12 presents 1980 and 1990 housing unit and population information for the
Truckee Environs. A total of 832 housing units were added to the housing stock during
the 1980s. This increase in the housing stock represents an average annual growth rate
of 26.7 percent, much higher than the 6.8 percent average annual growth rate
28
experienced by the Town of Truckee over the same period. However, the high average
annual growth rate for the Truckee Environs is attributable to the fact that the starting
base of housing units in 1980 was very small.
The number of occupied housing units in the Truckee Environs increased by 140 over the
1980 to 1990 period. This 13.8 percent average annual growth rate is about half the
growth rate of total housing units in the Truckee Environs, and much faster than the
average annual occupied housing growth rate of 4.9 percent in the Town of Truckee.
The population in the Truckee Environs grew at an average annual rate of 12.5 percent
over the 1980 to 1990 period. The persons per household decreased from 2.57 in 1980
to 2.26 in 1990, while the number of persons per dwelling unit decreased from 1.83 to
0.55 persons per unit.
The vacancy rate more than doubled over the 1980 to 1990 period in the Truckee
Environs, reaching 79 percent by 1990. This clearly indicates the large number of
seasonal housing units in the Truckee Environs.
TABLE 2-12
TRUCKEE ENVIRONS
HOUSING UNITS AND POPULATION: 1980 AND 1990
Total Housing Units
Occupied
Vacancy Rate
1980
1990
1980-1990
Change
1980-1990
Average
Annual Growth
Rate
86
53
38.4%
918
193
79.0%
832
140
26.7%
13.8%
Total Population 157 508 351 12.5%
Per Dwelling Unit 1.83 0.55 -1.28
Per Occupied Housing Unit (Household) 2.57 2.26 -0.31
Source: Stanley R. Hoffman Associates, Inc.
1980 Census, "Detailed Characteristics, Census Tract 11.
1990 Census, "Summary Tape File 3A", Census Tract 11 and Block Group 2 of Census Tract 12.02.
Table 2-13 presents the housing units by type and tenure for the Truckee Environs.
Single-family units comprise 68.1 percent of the total housing stock in the Truckee
Environs compared with 87.3 percent of the total housing in the Town of Truckee being
single-family units. According to the 1990 census, the Truckee Environs has a very large
percentage of mobile home units, 20.0 percent compared with 3.9 percent in the Town.
The third largest component of the Truckee Environs housing stock is the 5 or more unit
type, which comprise 8.0 percent of the its total housing. The percentage of 2 to 4 units
is slightly below the Town, 2.3 percent compared with 2.9 percent.
The distribution by unit type for the vacant housing stock in the Truckee Environs is very
similar to the total housing unit -type distribution. However, the unit mix of the owner -
occupied units and the renter -occupied is noticeably different from the total housing mix.
29
Single family units account for 95.2 percent of all owner -occupied units, with mobile
homes being the only other unit type.
Single-family units are also the largest component of the renter -occupied housing stock,
at 59.7 percent of all rental units. Rentals with 2 to 4 units and 5 or more units comprise
16.4 percent and 9.0 percent of all rentals. Other units are a significant component of the
rental units, accounting for 14.9 percent of rentals.
TABLE 2-13
TRUCKEE ENVIRONS
1990 HOUSING UNITS BY TENURE
Unit Type
Owner -Occupied
Units
Renter -Occupied
Units
Vacant Units
Total
Number Percent
Number Percent
Number Percent
Number Percent
Single-family
2-4
5 or more
Mobile Homes
Other
Total
120
0
0
6
0
126
95.2%
0.0%
0.0%
4.8%
0.0%
100%
40
11
6
0
10
67
59.7%
16.4%
9.0%
0.0%
14.9%
100%
465
10
67
178
5
725
64.1%
1.4%
9.2%
24.6%
0.7%
100%
Source: Stanley R. Hoffman Associates, Inc.
1990 Census, "Summary Tape File 3A", Census Tract 11 and Block Group 2 of Census Tract 12.02.
625
21
73
184
15
918
68.1%
2.3%
8.0%
20.0%
1.6%
100.0%
Table 2-14 presents the housing valuation for the Truckee Environs housing stock. The
median housing value in the Truckee Environs is $88,928, with over three -fourths of the
owner -occupied units valued below $100,000.
The distribution of rents in the Truckee Environs shows that nearly 30.0 percent of rents
are below $400 and no rentals are priced between $400 and $550. Nearly fifty percent
of the rents are between $550 and $700. The remainder of the rent payments fall
between $750 and $1,000.
Table 2-15 presents the age distribution of the Truckee Environs population for 1980 and
1990. The working age group accounts for the largest share of the total population in
both 1980 and 1990. This age group grew by 9.3 percentage points while all other age
groups experienced a decline in their shares of the 1980 to 1990 population growth. The
growth in this segment of the population may account for the high per capita income in
the Truckee Environs.
The largest percentage decrease in share of the total population over the 1980 to the
1990 period in the Truckee Environs was in the school age population, the 5 to 18 year
old group. This group's share of the total population decreased by 5.3 percentage points,
from 24.8 percent in 1980 to 19.5 percent in 1990. The senior age group (65+ years)
decreased by 2.5 percentage points over the 1980 to 1990 period, while the under 5
group decreased by 1.5 percentage points over the same period.
30
TABLE 2-14
TRUCKEE ENVIRONS
1990 HOUSING VALUE AND CONTRACT RENT
Specified Owner -Occupied Units
Specified Renter -Occupied Units
Housing Value
Number of
Occupied
Units
Percent of
Owner-
Occupied
Contract Rent
Number of
Occupied
Units
Percent of
Renter -
Occupied
Less than $75,000
$75,000-$99,999
$100,000-$124,999
$125,000-$149,999
$150,000-$174,999
$175,000-$199,999
$200,000-$249,999
$250,000-$299,999
$300,000-$399,999
$400,000-$499,000
$500,000 and more
Total
Median Housing
Value:
$88,928
31
56
10
17
0
0
0
0
0
0
0
114
27.2%
49.1%
8.8%
14.9%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
100.0%
Less than $350
$350-$399
$400-$449
$450-$499
$500-$549
$550-$599
$600-$649
$650-$699
$700-$749
$750-$999
$1,000 and more
Total
Median Contract
Rent:
$654
12
5
0
0
0
4
6
18
0
12
0
57
Source: Stanley R. Hoffman Associates, Inc.
1990 Census, "Summary Tape File 3A", Census Tract 11 and Block Group 2 of Census Tract 12.02.
TABLE 2-15
TRUCKEE ENVIRONS
POPULATION BY AGE GROUP: 1980 AND 1990
21.1%
8.8%
0.0%
0.0%
0.0%
7.0%
10.5%
31.6%
0.0%
21.1%
0.0%
100.0%
1980
1990
Age Group
Total
Percent of Total
Total
Percent of Total
Pre-school (0-4)
School age (5-18)
Working age (19-64)
Senior (65 and over)
Total
7
39
101
10
157
4.5%
24.8%
64.3%
6.4%
100.0%
15
99
374
20
508
Source: Stanley R. Hoffman Associates, Inc.
1980 Census, "Detailed Characteristics, Census Tract 11.
1990 Census, "Summary Tape File 3A", Census Tract 11 and Block Group 2 of Census Tract 12.02.
3.0%
19.5%
73.6%
3.9%
100.0%
The racial and ethnic composition of the Truckee Environs households for 1980 and 1990
is presented in Table 2-16. The white households accounted for 100 percent of all
household in 1980 and 93.8 percent of all households in 1990. Some 6.2 percent of the
households were in the Other category in the 1990 Census. There were no Spanish
Origin households in 1980, whereas the number of households identifying themselves as
Spanish Origin was 18 in the 1990 Census.
31
TABLE 2-16
TRUCKEE ENVIRONS
HOUSEHOLDS BY RACE AND ETHNICITY. 1980 AND 1990
1980
1990
Total
Percent of Total
Total
Percent of Total
White 53
Black 0
American Indian 0
Asian/Pacific Islander 0
Other 0
Total 53
Spanish Origin 0
100.0%
0.0%
0.0%
0.0%
0.0%
100.0%
18
181
0
0
0
12
193
Source: Stanley R. Hoffman Associates, Inc.
1980 Census, "Detailed Characteristics, Census Tract 11.
1990 Census, "Summary Tape File 3A", Census Tract 11 and Block Group 2 of Census Tract 12.02.
93.8%
0.0%
0.0%
0.0%
6.2%
100.0%
The 1990 education and income characteristics for the Truckee Environs population is
presented in Table 2-17. Some 62.5 percent of the population had at least some college,
with 37.9 percent of the population having 4 years of college and none of the population
having more than 4 years of college. Only 3.5 percent of the population had received no
high school diploma.
The 1990 median household income of $24,708 for the Truckee Environs was below the
areas per capita income of $29,485. The large number of vacant housing units accounts
for the household income being below the per capita income.
TABLE 2-17
TRUCKEE ENVIRONS
1990 EDUCATION AND INCOME
Educational Attainment (persons 25+)
No high school diploma
High school
Some college
4 Years college
4+ years college
Total
Per capita income
Median household income $24,708
Total
Percent of Total
$29,485
11
108
78
120
0
317
Source: Stanley R. Hoffman Associates, Inc.
1990 Census, "Summary Tape File 3A", Census Tract 11 and Block Group 2 of Census Tract 12.02.
3.5%
34.1%
24.6%
37.9%
0.0%
100.0%
32
Table 2-18 presents the labor force characteristics of the 1990 Truckee Environs
population. While this area has a higher labor force participation rate than the Town of
Truckee, 82.5 percent compared with 78.5 percent, the unemployment rate for the
Truckee Environs is over three times higher than the unemployment rate in Truckee.
Some 16.9 percent of the people in the labor force were unemployed in the Truckee
Environs compared with 4.9 percent in Truckee.
TABLE 2-18
TRUCKEE ENVIRONS
1990 LABOR FORCE CHARACTERISTICS
Civilian Labor Force (persons 16+)
Not in the labor force 73
In the labor force 343
Total 416
Employed 285
Unemployed 58
Total 343
Source: Stanley R. Hoffman Associates, Inc.
1990 Census, "Summary Tape File 3A", Census Tract 11 and Block Group 2 of Census Tract 12.02.
Total
Percent of Total
17.5%
82.5%
100.0%
83.1%
16.9%
100.0%
2.2. Economic and Employment Characteristics
2.2.1 The Truckee Employment Base
This section presents historic trends regarding employment in Truckee and in Nevada
County. The analysis of these historic trends will serve three purposes:
To provide a basis for economic projections
To identify the position of the Town of Truckee in the overall Nevada County
economy
To identify key sectors in the Truckee economic base
This analysis focuses on employment trends by industry; comparative industrial
compositions; and comparative growth analysis.
Table 2-19 presents employment growth data for Truckee. The estimated employment
is based on ZIP Code information from County Business Patterns, from the U.S.
Department of Commerce and on other available sources, including the U.S. Census, the
California Employment Development Department, and selected information on major
employers in Truckee. These data are presented for the Truckee area, as defined by ZIP
codes 96160, 96161 and 96162. This area does not correspond to the boundaries of the
Town of Truckee, but is an approximation and the basis upon which available
employment data are compiled.
Employment is presented on a place of work basis. The following data represent jobs
located in the Truckee area compared with the same jobs by industrial category in
Nevada County.
33
TABLE 2-19
TRUCKEE AREA AND NEVADA COUNTY
ESTIMATED EMPLOYMENT BY INDUSTRY
Truckee Community
1983
1989
1994
Agriculture, forestry, fisheries
Construction and mining
Manufacturing
Transportation, communication, utilities
Wholesale trade
Retail trade
Finance, insurance, real estate
Services
Government
Self employed
Total
25
273
32
66
56
917
151
353
553
383
2,809
38
509
171
35
56
1,072
283
607
847
572
4,190
60
558
162
39
75
1,254
463
698
997
738
5,044
Nevada County
1983
1989
1994
Agriculture, forestry, fisheries
Construction and mining
Manufacturing
Transportation, communication, utilities
Wholesale trade
Retail trade
Finance, insurance, real estate
Services
Government
Self employed
50 50 86
700 1,450 1,706
1,850 2,950 2,598
525 525 528
225 375 591
3,275 4,625 5,245
725 1,050 1,531
3,250 4,725 6,280
2,900 3,725 4,307
2,822 4,070 5,400
Total 16,322 23,545 28,272
Source: Stanley R. Hoffman Associates, Inc.
County Business Patterns
California Employment Development Department, Annual Planning Information, Nevada County, June 1993.
As shown in Table 2-19, employment in the Truckee area is estimated to have increased
from 2,809 to 5,044 over the period from 1983 to 1994. Employment in 1989 is estimated
at 4,190. As also shown in Table 2-1, employment in Nevada County increased from
16,322 in 1983 to 28,272 in 1994, with countywide employment in 1989 estimated at
23,545.
2.2.2 Employment Growth Increments
Table 2-20 presents the Truckee area employment growth on an annual average basis.
During the 1983-1989 period, employment is estimated to have grown on average by 230
jobs per year. This growth was spread over nearly all industry divisions, including
construction and mining, manufacturing, and a wide range of non -manufacturing sectors.
34
TABLE 2-20
TRUCKEE AREA
ANNUAL EMPLOYMENT GROWTH BY INDUSTRY DIVISION
Annual Job Growth
Industry Division
Agriculture, forestry, fisheries
Construction and mining
Manufacturing
Transportation, communication, utilities
Wholesale trade
Retail trade
Finance, insurance, real estate
Services
Government
Self employed
1983-1989
1989-1994
2 4
39 10
23 -2
-5 1
0 4
26 36
22 36
42 18
49 30
32 33
Total 230 170
Source: Stanley R. Hoffman Associates, Inc.
County Business Patterns
California Employment Development Department, Annual Planning Information, Nevada County, June 1993.
During the 1989-1994 period, annual employment growth in the Truckee area is estimated
at 170, approximately three -fourths of the annual increments during the 1980s. During
this latter period, growth in construction, mining and manufacturing has been significantly
constrained. However, annual growth increments in retail trade; and finance, insurance
and real estate (FIRE), have been greater than during the 1980s.
2.2.3 The Truckee Economy and Nevada County
Industry Structure. Table 2-21 compares the structure of the Truckee area economy with
Nevada County, based on 1994 data.
The Truckee area economy shows greater dependence on the industries of construction
and mining, retail trade and government, when compared to Nevada County. This
condition is consistent with Truckee's role as a local center for governmental services, a
retailing center (including highway -oriented retail), and as a basis of the construction
industry for much of the activity within the Tahoe Basin.
The Truckee economy shows less prominence within the sectors of manufacturing,
wholesale trade and services. This latter condition reflects a limited export base for
Truckee, and opportunities for economic diversification.
Comparative Growth Rates. Table 2-22 presents a comparison of annual average
percentage growth rates for the Truckee area and Nevada County over the 1983 to 1994.
The first conclusion is that both the Truckee area and Nevada County show very high
rates of employment growth, compared to the state. Over this period, the California
employment base has grown by an average annual rate of 3.0 percent, significantly
slower than the Truckee Area and Nevada County.
35
TABLE 2-21
TRUCKEE AREA AND NEVADA COUNTY
COMPARATIVE INDUSTRIAL STRUCTURE: 1994
Industry Division
Truckee Area
Nevada County
Employment
Percent of
Total
Employment
Percent
of Total
Agriculture, forestry, fisheries
Construction and mining
Manufacturing
Transportation, communication, utilities
Wholesale trade
Retail trade
Finance, insurance, real estate
Services
Government
Self employed
Total
60
558
162
39
75
1,254
463
698
997
738
5,044
1.2%
11.0%
3.2%
0.8%
1.5%
24.9%
9.2%
13.8%
19.8%
14.6%
100.0%
86
1,706
2,598
528
591
5,245
1,531
6,280
4,307
5,400
28,272
Source: Stanley R. Hoffman Associates, Inc.
County Business Patterns
California Employment Development Department, Annual Planning Information, Nevada County, June 1993.
0.3%
6.0%
9.2%
1.9%
2.1%
18.6%
5.4%
22.2%
15.2%
19.1%
100.0%
When compared to the County, the Truckee area has shown particularly strong growth
in manufacturing, FIRE and government. The service sector in the Truckee area has also
grown at a slightly higher rate than in the County as a whole. Finally, the Truckee
economy has lagged behind that of Nevada County in construction and mining, wholesale
trade and retail trade.
TABLE 2-22
TRUCKEE AREA AND NEVADA COUNTY
COMPARATIVE EMPLOYMENT GROWTH
(Annual Average Growth Rates: 1983-1994
Truckee Area
Truckee minus
Industry Division
Nevada County
Nevada County
Agriculture, forestry, fisheries
Construction and mining
Manufacturing
Transportation, communication, utilities
Wholesale trade
Retail trade
Finance, insurance, real estate
Services
Government
Self employed
Total
8.3%
6.7%
15.9%
-4.7%
2.7%
2.9%
10.7%
6.4%
5.0%
8.4%
3.1%
0.0%
4.2%
4.4%
7.0%
6.2%
5.5% 3.7%
5.4%
5.4%
6.1%
5.1%
Source: Stanley R. Hoffman Associates, Inc.
County Business Patterns
California Employment Development Department, Annual Planning Information, Nevada County, June 1993.
3.3%
- 1.7%
12.8%
-4.7%
- 1.5%
-1.5%
3.7%
0.2%
1.8%
-0.7%
0.3%
36
2.2.4 Key Sectors in the Truckee Economy
Much of the analysis in the General Plan will be focused on identifying key sectors in the
Truckee economy. In regional economic analysis, employment is often grouped into
basic and local -serving categories. Basic employment is that which primarily serves
markets outside the area, while local -serving employment primarily serves local demand.
The growth of basic employment is viewed as providing the major impetus for economic
development in an area. For an economy such as that of Truckee, basic employment is
found in the following sectors:
• Resource based industries, including forestry and mining
• Manufacturing
• Long distance transportation
• Wholesale trade
• Retail trade serving highway and tourism demand
• Lodging
• Business and professional services
• Regional, federal and state government
The historic data show some emerging strength in the Truckee economy in
manufacturing. Most of the manufacturing currently in Truckee serves local and regional
construction, including planing mills, sheet metal, and air conditioning and heating.
Additional opportunities to provide export -base manufacturing, possibly in conjunction with
the airport, may exist.
While the Truckee economy has not shown strength in long-distance transportation,
opportunities in this area may be appropriate, given the location and access
characteristics of Truckee. Such transportation expansions may often be coupled with
wholesale trade activities serving the Tahoe Basin.
Truckee is positioned as a gateway to the major four -season resort opportunities of the
Tahoe Basin, and is also about 35 miles from Reno. Thus, Truckee has superior
locational and accessibility advantages. Also, Truckee possesses considerable natural
beauty and historic and cultural amenities. All of these conditions imply a potential for
tourism and recreation as a component of the Truckee economic base.
Retail expansion, particularly the recently developed outlet mall, has occurred in Truckee.
The comparative analysis, however, does not show that Truckee has fully exploited this
opportunity. Also, additional lodging opportunities, including destination resorts, may exist
in Truckee.
Truckee has shown expansion and diversification in services over the 1983-1994 period.
This expansion and diversification may continue if Truckee serves a role as a regional
center for the Tahoe Basin and eastern Nevada County.
37
It is clear that Truckee serves as a regional governmental center for eastern Nevada
County. Expanded state and federal government activities may be appropriately located
in Tr:.ckee as the area grows.
2.2.5 Identifying Econ=;mic Development Opportunities in Truckee
Future analysis will identify specific economic development opportunities in Truckee. This
analysis will include input from the following sources:
The market for retail, visitor -oriented, employment and residential
development, to be determined through on -site data development and
analysis
Long-range projections of employment, housing and population for Truckee,
its Environs and the surrounding region
Town policies regarding economic development and the role of Truckee in
the regional economy
Ongoing coordination with community economic development interests
Economic development opportunities will then be tested within the overall context of the
General Plan, identifying fiscal impacts, jobs and housing implications, and the role of
major facilities and infrastructure in supporting economic development in Truckee.
38
CHAPTER 3
DEVELOPMENT MARKET EVALUATION
This chapter presents the key characteristics of the Truckee development market,
including valuations, existing and projected retail sales generation, the visitor industry and
the existing industrial market.
Residential absorption rates, valuations and development types are first presented to
determine the residential support for retail sales. An evaluation of the visitor industry in
Truckee follows with a profile of the hotel and motel market, based on a telephone survey
conducted in June of 1994. In addition, the second home development and recreational
aspects of the Truckee visitor industry are discussed.
The retail sales analysis includes a discussion of the existing and projected retail sales
and related commercial acreage demand for combined taxable and non-taxable retail
sales. The retail analysis examines support from year-round residential, second home
and transient demand sources. Finally, a discussion of the industrial sector of the
Truckee economy is presented.
3.1. Residential Development
3.1.1 Residential Absorption
Truckee has experienced substantial housing growth over the last fifteen years. Growth
restrictions in the Lake Tahoe area, the tax advantages of owning second homes and the
attractiveness of Truckee as a "bedroom" community for people working in Reno have
contributed to this housing growth.
The housing unit estimate for the Town of Truckee for January 1, 1994 is 8,166 units.
Table 3-1 summarizes monthly historical residential permit data for three time periods
from 1978 to 1994. A total of 5,894 residential permits were issued over this period at
an average annual rate of 393 permits.
Housing unit growth over this same fifteen year period is estimated at 5,204, based on
the assumption, based on discussions with Town staff, that about 88 percent of issued
permits result in completed units. Housing units increased at an average annual rate of
347 units over the 1978 to 1994 period.
The strongest housing growth occurred over the five year period from 1978-79 to 1983-
84, with an estimated 2,577 units at an annual increase of 515 units. Over the 1983-84
to 1988-89 period housing growth slowed considerably with only 200 additional units per
year, or a total of 1,000 additional units over this five year period. Housing unit growth
39
TABLE 3-1
TOWN OF TRUCKEE GENERAL PLAN
RESIDENTIAL BUILDING PERMITS
AND HOUSING UNIT ABSORPTION
Permits i Completed Units'
April to April
Time Period
Total
Increment
Annual Average I Total
Increment I Increment
Annual Average
Increment
1978-79 to 1983-84 2,919 584 2,577 515
1983-84 to 1988-89 1,133 227 1,000 200
1988-89 to 1993-94 '842 368 1.626 325
Total Increment 5,894 5,204
15 Year Annual Increment
393 347
Note: 1. Completed units are based on the assumption that 88.3 percent of issued residential
permits become completed housing units.
Source: Stanley R. Hoffman Associates, Inc.
Town of Truckee, Community Development Department
40
increased to an estimated 325 units per year over the 1988-89 to 1993-94 period so that
1,626 additional units were added over this five year period.
3.1.2 Residential Valuation
Residential valuations for 1992 and 1993 for the Truckee area are presented in Table 3-2.
Single family units averaged $165,661 per unit in 1993, up 3.0 percent over the average
per unit of $160,844 in 1992. Multi -family units experienced a decrease of 4.6 percent
in price over the 1992 to 1993 period, to an average price of $63,130 in 1993 from an
average price of $66,154 in 1992.
3.1.3 Unit Types
The mix of single family and multi -family units has changed slightly since the 1990
Census. Based on recent assessor parcel information, single family units represent 88.2
percent of all parcels, while in the 1990 Census single family units accounted for 87.8
percent of all housing units.
Multi -family units now account for 7.7 percent of all units, compared with representing 8.2
of all units in the 1990 Census. Mobile homes have experienced only a slight increase
in their share of all units, now 4.1 percent compared with 4.0 percent in the 1990 Census.
3.2. Visitor Industry
Truckee represents a hub of the North Lake Tahoe -Reno area, with highway access east
and west on Interstate 80 and north and south on Highway 89 and east on Highway 267.
In addition, accessibility to and from Truckee is provided by AMTRAK rail lines and
Greyhound bus lines. Air transportation is available through Reno Cannon International
Airport, 35 miles east of Truckee and the Truckee -Tahoe Airport along Highway 267
provides facilities for small aircraft and cargo flights. Truckee also offers local
transportation through the Tahoe Area Regional Transit, the Truckee Trolley, car rentals,
and limousine and tour services.
Truckee is a popular vacation and recreation destination. Unlimited summer and winter
recreational opportunities include downhill and cross country skiing; hiking opportunities
in the area's National Forest Wilderness Area with the Pacific Crest Trail head located
minutes from Truckee; golfing at Ponderosa and Tahoe Donner Golf Courses; fishing at
Donner Lake and nearby Prosser, Boca and Stampede reservoirs; swimming, sailing,
sailboarding and paddle boats at Donner Lake. Other recreation attractions include
equestrian activities, biking, hot air ballooning, camping .
Recreational activities and events are also provided through the Truckee Donner
Recreation and Parks District, including swimming, tennis, exercise classes, and summer
concerts and a Farmer's Market at the Regional Park. Truckee also has the special
41
TABLE 3-2
TOWN OF TRUCKEE GENERAL PLAN
TRUCKEE AREA
RESIDENTIAL VALUATIONS
Subdivison
1992
1993
Units
Sold
Average
Price
Units I Average
Sold Price
1992-1993
Percent
Increase
Single Family-,
Glenshire 75 $135,500 71 $137,500 1.5%
The Meadows 0 0 0 0 n/a
Pannonia Ranchos 0 0 2 520,750 n/a
Prosser Heights 3 137,000 7 187,500 36.9%
Prosser Lakeview Estates 24 147,000 18 131,875 -10.3%
Martis Valley Estates 1 134,000 3 128,000 -4.5%
Martiswoods Estates 1 237,500 1 250,000 5.3%
Ponderosa Ranchos 3 320,000 3 252,000 -21.3%
Olympic Heights 5 118,000 9 126,000 6.8%
Ponderosa Palisades 20 126,500 15 127,500 0.8%
Sierra Meadows 15 142,000 29 150,000 5.6%
Central Truckee 7 120,000 12 116,750 -2.7%
Donner Lake 22 147,500 16 146,000 -1.0%
Donner North 8 120,000 10 108,300 -9.8%
Tahoe Donner 213 179.000 215 186.000 3.9%
Total 397 $160,844 411 $165,661 3.0%
Multi -family;
Donner Lake Condos
Tahoe Donner Condos
Total
11 $64,000 5 $51,000 -20.3%
a 67,000 1$ 66.500 -0.7%
39 $66,154 23 $63,130 -4.6%
Source: Stanley R. Hoffman Associates, Inc.
"Our Town Truckee", February -March 1994.
42
attractions of the Sierra Nevada Children's Museum, the Truckee Tahoe Air Show, the
Truckee 4th of July Downtown Parade and Celebration Fireworks at Donner Lake, the
Cannibal Cruise Car Show and the Truckee Championship Rodeo.
A survey of the motel and hotel market shows that the majority of the recreation and
tourist activities attract visitors to Truckee during the peak seasons of winter and the
summer months of June through September. Proprietors also indicate much higher
occupancy rates over weekends than during weekdays. Tourism during the weekdays
and the off-peak seasons of spring and fall may be boosted by increased promotional
efforts coupled with the provision of destination resorts and additional golfing, tennis,
hiking and horseback riding.
The visitor industry in the Truckee area which serves the vacation and tourist demand is
defined as including the hotel and motel market and the second home market.
3.2.1 Hotel and Motel Development
The lodging inventory in the Truckee area, including the Truckee Environs and Area of
Concern, is currently estimated as comprising 487 hotel and motel rooms, and 42 bed
and breakfast rooms. Available information on lodging is based on published directories
and a telephone survey of establishments, and is summarized in Table 3-3. All identified
lodging facilities were established either prior to 1960, or between 1980 and the present.
Pre -1960 Inventory. Some 58 hotel and motel rooms, and 37 bed and breakfast rooms
are identified in the pre -1960 inventory. Typical occupancy rates are estimated at 85 to
90 percent for the peak season periods (winter and summer); while in the off peak
season, some occupancy rates are as low as 30 percent. Typical hotel and motel room
rates are about $70 for these older establishments; while the bed and breakfast room
rates are estimated at $95.
Post -1980 Inventory. In the period since 1980, some 429 hotel and motel rooms have
been added, while five bed and breakfast rooms have been added. The post -1980 hotel
and motel rooms show occupancy rates comparable with those of the older
establishments, but typical room rates are higher at about $100. The added bed and
breakfast rooms show similar room rates to the older establishments at $95, but have a
narrower fluctuation of occupancy rates --estimated at 75 percent in peak periods, and 50
percent in off-peak periods.
In the historic expansion of 434 rooms over the period from 1980 to 1994, some 235
rooms were accounted for by the single resort establishment of Northstar at Tahoe, with
the remaining 199 representing more diversified lodging development in Truckee. The
lodging at Northstar was included in the inventory to show the lodging market absorption
for the broader Truckee area.
43
TABLE 3-3
TRUCKEE AREA
LODGING SUMMARY
Date Opened
Pre -1960
Motel and Hotels
1961-1979 1980 -Present Total
Number of Rooms
Truckee 58 0 194 252
Northstar Q Q 235 235
Total 58 0 429 487
Typical Occupancy Rates
Peak season 90% 90% 90%
Off season Ea 541s 5.Q3
Average 70% 70% 70%
Typical Room Rates $70 $100 $85
Bed ind Breakfast
Number of Rooms 37 0 5 42
Typical Occupancy Rates
Peak season 85% 75% 84%
Off season an K°ls 441s
Average 58% 63% 58%
Typical Room Rates $95 $95 $95
Source: Stanley R. Hoffman Associates, Inc.
44
Lodging Outlook. Employment projections prepared as part of this analysis indicate an
increase in lodging employment for the Truckee area of about 53 jobs over the 1994-2015
period. Based on this increase, and an assumption of 0.25 employees per motel room
and 0.40 employees per bed and breakfast room, some 180 motel rooms and 20 bed and
breakfast rooms are projected. This projection could be higher if successful destination
resort developments broadened the range of recreational opportunities.
3.2.2 Second Home Development
A large number of housing units in Truckee are owned as second homes and rented or
used seasonally by their owners. The 1990 Census showed that 52.8 percent of all units
were vacant, with 28.6 percent of all housing units identified as seasonal, recreational or
utilized occasionally, 2.6 percent as vacant for sale or rent and 21.6 percent as all other
vacant. Most of the 21.6 percent of all other vacant units are assumed to be second
homes.
The 1995 DOF estimates for Truckee show 9,039 housing units, with 4,352 occupied
units and 4,687 vacant units. Most vacant units are assumed to be second homes.
3.2.3 Recreation Development
Another area for potential development in Truckee is destination resort development. The
Town's Draft General Plan provides opportunities for destination resort development in
planned communities and opportunities for recreational development in OSR
designations.
3.3. Retail Sales Analysis
This section presents an analysis of existing and projected retail sales and related
commercial acreage demand for combined taxable and non-taxable retail sales. The
proportion of existing taxable transactions that represent non -retail sales is also
presented. Non -retail sales are taxable transactions that occur from non -retail buildings,
such as industrial facilities or business parks.
The primary retail market area includes the Town of Truckee, the Truckee Environs within
Nevada County, and the Area of Concern. This latter area includes the Martis Valley and
other adjacent areas within Placer County. It is assumed that these adjacent areas will
grow at approximately the same rate as the Town of Truckee and that Truckee will
continue to be the focal point of the market area. Market demand from beyond these
areas, and transient demand, are factored in as a proportion of primary market demand
and represent through traffic, day visitors and demand from the North Lake Tahoe area.
45
3.3.1 Comparative Taxable Sales Analysis
Table 3-4 presents a comparison of taxable sales for calendar year 1992 for the Town
of Truckee, Nevada County and the State of California. This is the latest year for which
taxable data is available for all three areas, although Truckee is estimated to have
generated virtually the same amount of taxable sales in 1993 and 1994. Since the Town
of Truckee did not incorporate until March 1993, the Truckee data is from a special
tabulation from the State Board of Equalization for the Truckee postal area which
approximates the current corporate boundaries.
In 1992 Truckee generated about $115.04 million in taxable sales. About 79 percent, or
$91.03 million, was taxable retail sales, and about 21 percent, or $24.01 million, was non -
retail taxable sales. Truckee's non -retail sales proportion (20.9 percent) is lower than that
of Nevada County (28.5) percent and California (34.2 percent). Most non -retail sales are
generated by industrial and business park developments, and Truckee's lower proportion
of these sales is consistent with its less industrialized economy.
Truckee has high per capita taxable sales at $9,680, when compared to Nevada County
at $4,953 and California at $5,682. Truckee's high per capita sales reflects the additional
demand from tourists and seasonal home visitors. However, when the ratios of taxable
sales per housing unit are compared, Truckee sales of $12,391 fall between the ratios
for Nevada County ($10,459) and California ($15,485), because taxable sales are spread
over occupied and vacant units.
The effects of the tourist, seasonal home and transient population markets can be seen
in the distribution of retail sales by category in Truckee when compared with statewide
distribution, which represents demand patterns of resident households. Truckee is
relatively higher than California in the proportion of retail sales in apparel stores (8.7%
to 5.8%), food stores (16.2% to 9.7%), building materials and farm implements (13.4%
to 7.5%), service stations (16.2% to 9.1%) and other retail stores (22.5% to 15.5%).
However, Truckee is much lower for general merchandise stores (1.9% to 15.1%) and
auto dealers and auto supplies (1.7% to 15.3%).
3.3.2 Estimation of 1992 Taxable Retail Purchasing Power
Table 3-5 presents the estimation of the retail purchasing power for the Town of Truckee
for two resident groupings; permanent and seasonal. Permanent residents are defined
as those who make the Truckee their home on a year round basis. Seasonal residents
can be defined as those who reside part-time in a second home, a rental unit, or other
similar living arrangement. In addition to these two groupings, the retail purchasing power
estimation is divided into three geographic areas consisting of the Town of Truckee,
Truckee Environs, and the Area of Concern. Retail demand beyond these areas and
transient demand from short-term visitors is factored in based on the current proportion
of the primary market area and includes the North Lake Tahoe area.
46
TABLE 3-4
TOWN OF TRUCKEE
RETAIL SALES DISTRIBUTION: TOWN, COUNTY AND STATE
1992 Town of Truckee
Retail Category Amount
Apparel stores
General merchandise stores
Drug stores
Food stores
Packaged liquor stores
Eating and drinking places
Home furnishings & appliances
Bldg. materials & farm implements
Auto dealers and auto supplies
Service stations
Other retail stores
Retail stores total
All other outlets
Total all outlets
Number of housing units
Retail sales per housing unit
Population
Retail sales per capita
Distribution
1992 Nevada County I 1992 State of California
Amount
Distribution (thousands) !Distribution,
Amount
$7,952,000
1,762,000
N/A
14, 740, 000
N/A
14,175,000
3,462,000
12,169, 000
1,504,000
14, 754, 000
20.507.000
$91,025,000
$24,018,000
$115,043,000
7,346
$12,391
9,403
$9,680
8.7%
1.9%
0.0%
16.2%
0.0%
15.6%
3.8%
13.4%
$17,326,000
34, 235, 000
19, 357, 000
67, 760, 000
2,482,000
52, 978, 000
19, 479, 000
50, 802, 000
1.7% 43,975,000
16.2% 50,396,000
22.5% 64.691.000
100.0% $423,481,000
20.9% $168,823,000
$592,304,000
40,491
$10,459
85,492
$4,953
Source: Stanley R. Hoffman Associates, Inc.
Board of Equalization
Department of Finance, Population and Housing Estimates, January 1, 1993
47
4.1%
8.1%
4.6%
16.0%
0.6%
12.5%
4.6%
12.0%
10.4%
11.9%
15.3%
$10,383,844
27,107, 738
5,353,109
17,459,415
1,978, 317
23, 545, 444
8,558,819
13,451,730
27,380,832
16, 351, 959
27.703.898
100.0% $179,275,105
28.5% $93,093,186
$272,368,291
11, 577,114
$15,485
31,551,554
$5,682
5.8%
15.1%
3.0%
9.7%
1.1%
13.1%
4.8%
7.5%
15.3%
9.1%
15.5%
100.0%
34.2%
TABLE 3-5
TOWN OF TRUCKEE
ESTIMATION OF 1992 TAXABLE RETAIL PURCHASING POWER
Permanent Residents
Permanent Median
Occupied Household
Area ! Units Income
Truckee 3,466 $40,012
Truckee environs 201 24,708
Area of concern 1 616 35,121
5,283
Truckee
Truckee environs
Area of concern
Truckee
Truckee environs
Area of concern
Estimated Estimated Taxable
Purchasing Aggregate Retail
Capture' I EBI2 ' Sales3
60.0% $65,154,412 $25,625,230
60.0% 2,336,350 918,886
60.0% 26,661,794 10,486,084
$94,152,556 $37,030,200
Seasonal Residents
Seasonal
Occupied
Units
3,880
756
3,619
8,255
Median
Household
Income
$40,012
24,708
35,121
Estimated
Purchasing
Capture
Estimated
Aggregate
EBI
Taxable
Retail
Sales
30.0% $36,466,517 $14,342,281
30.0% 4,386,166 1,725,079
30.0% 29,857,449 11,742,935
$70,710,133 $27,810,295
Total of Seasonal and Permanent
Units
7,346
957
5 235
13,538
Transient Taxable Retail Sales
Total Taxable Retail Sales
Median
Household
Income
$40,012
24,708
35,121
Estimated Taxable
Aggregate Retail
EBI Sales
$101,620,929 $39,967,511
6,722,516 2,643,966
56,519.243 22 229,018
$164,862,688 $64,840,495
Notes: 1. Estimated purchasing capture is the estimated amount captured in Truckee.
2. EBI = Effective Buying Income equals 0.783 times total agregate income.
3. Taxable retail sales equals 0.393 times EBI.
Source: Stanley R. Hoffman Associates, Inc.
48
Percent of
Total
Taxable
Retail Sales
40.7%
30.6%
$26,184,505 28.8%
$91,025,000 100.0%
Estimation of 1992 housing units are presented in Table 3-6 based on 1990 Census
distributions. These distributions are applied against growth rates in Truckee based on
local building permit data, and estimated growth rates in the unincorporated areas from
California Department of Finance housing unit estimates.
Overall, the permanent residents are estimated to account for 40.7 percent of the total
taxable retail sales of $91.03 million. Total taxable retail sales from seasonal residents
are estimated at 30.6 percent. The remaining 28.8 percent of taxable retail sales are
estimated to be from transient demand. Sales from the transient category primarily
include taxable purchases from persons who pass through the area and stop to refuel,
make a retail purchase or have a meal. Additional taxable purchases are derived from
overnight tourists using local lodging.
Permanent Residents. In order to derive the taxable retail sales from the permanent
residents, the number of permanent occupied units in the study is multiplied by the
median household income of each geographic region. Based on the 1990 Census, the
median household income ranges from a high of $40,012 for the Town of Truckee to a
low of $24,708 for the Truckee Environs. This amount is then multiplied by an estimated
purchasing capture of 60 percent.
The final step in determining the Effective Buying Income (EBI) is to multiply the median
income of all households by a factor of 78.3 percent to account for personal tax and non -
tax payments. The aggregate EBI is then converted to retail purchasing power by
multiplying household EBI by 39.3 percent, the amount of income estimated to be spent
on taxable retail sales. The 39.3 percent factor is based on data from "Annual Survey
of Buying Power," from Sales and Marketing Management Magazine, August 1993.
As shown in Table 3-5, the total estimated retail purchasing power of the permanent
residents of Truckee, Truckee Environs and the Area of Concern is estimated at $37.03
million. The majority of the purchasing power is projected from the 3,466 Truckee
households which comprise an estimated 65.6 percent of the total permanent units.
Seasonal Residents. Seasonal residents are estimated to have a purchasing capture of
about 30 percent. This figure is estimated on the basis of a local survey that estimated
that about 28 percent of the recreational users were non -local residents.
The estimated retail purchasing power of the seasonal residents is estimated at $27.81
million. As with the permanent resident estimation, the units within the Town of Truckee
comprise the largest percentage of the taxable retail purchasing power at $14.34 million,
or about 51.6 percent of the total seasonal resident purchasing power.
Derivation of the total taxable retail sales for the seasonal residents is estimated in the
same manner as the permanent residents. The residual retail sales of $26.18 million, or
28.8 percent of total retail sales, is estimated from the transient visitors in the area.
49
TABLE 3-6
TOWN OF TRUCKEE GENERAL PLAN
ESTIMATION OF HOUSING UNITS 1990 -1994
Truckee
Occupied
Vacant
Total
1990
1991 I 1992
1993
1994 I
3,271 3,367 3,466 3,632 3,853
3,661 3,769 3,880 4,066 4.313
6,932 7,136 7,346 7,698 8,166
Truckee environs
Occupied 193 197 201 205 210
Vacant 725 740 756 772 788
Total 918 937 957 977 998
Area of concern
Occupied 1,550 1,583 1,616 1,650 1,684
Vacant 3,472 3,545 3,619 3,695 3 773
Total 5,022 5,127 5,235 5,345 5,457
Source: Stanley R. Hoffman Associates, Inc.
50
Potential Retail Capture from North Lake Tahoe. Based on the Tahoe Basin Short Range
Transit Plan, issued in June 1994, the northwest Lake Tahoe area is estimated to have
a population of 9,322 in 4,028 households. Based on census data, the median household
income is $28,281. A capture by Truckee of 50 percent of the household purchasing
power would generate about $22.40 million in retail sales in Truckee. Such a capture
would require development of a stronger retail base in Truckee, especially in general
merchandise stores. Using the taxable retail sales estimate of $135 per square foot
(which is based on 1994 actual taxable sales from the California Board of Equalization
and estimated existing commercial retail square feet), the potential capture of demand
from North Lake Tahoe would result in absorption of an additional 165,800 square feet
of retail space. This general analysis suggests significant demand potential for Truckee
from North Lake Tahoe.
3.3.3 Retail Sales Capture Analysis
A retail capture analysis is presented in Table 3-7 for the permanent households that
reside in the Truckee market area. While the taxable retail sales generated in 1992 are
estimated at about $91.03 million, the purchasing power for the permanent households
is estimated at about $37.03 million, or about 40.7 percent of the total. The residual
purchasing power comes from the second home, tourist and transient populations.
When the permanent household purchasing power is further compared by retail category
with actual taxable retail sales, shortfalls in selected retail categories are identified. The
distribution of retail sales for the permanent households is assumed to be similar to the
statewide pattern. The overall Truckee distribution is skewed by the non-resident
population purchases.
As shown in Table 3-7, this approach estimates actual sales to be considerably below the
resident household purchasing powerfor general merchandise, and auto dealers and auto
supplies. Lesser shortfalls are shown for drug stores and packaged liquor stores. This
suggests that these types of purchases by residents may be made outside the Truckee
market area, except for some substitution from other stores. Conversely, it also points
to potential retail development needs within the market area, particularly as the number
of permanent households increase and the areas around Truckee grow.
3.3.4 Projection of 2015 Taxable Retail Purchasing Power
The projection of 2015 retail demand is based primarily on the projections of permanently
occupied and seasonal households within Truckee, Truckee Environs and the Area of
Concern. The projections of housing units and population are based on historic trend
ratios of employment to population and population to housing units, as presented in
Chapter 4 of this report. The transient retail sales is then factored in based on its existing
proportion of household demand.
51
TABLE 3-7
TOWN OF TRUCKEE
1992 TAXABLE RETAIL SALES CAPTURE ANALYSIS
A
B A -B
Retail Category
Apparel stores
General merchandise stores
Drug stores
Food stores
Packaged liquor stores
Eating and drinking places
Home furnishings & appliances
Bldg. materials & farm implements
Auto dealers and auto supplies
Service stations
Other retail stores
Retail stores total
Source: Stanley R. Hoffman Associates, Inc.
Town of Truckee
Amount !Distribution
$7,952,000
1,762,000
N/A
14, 740, 000
N/A
14,175, 000
3,462,000
12,169, 000
1,504,000
14,754,000
20.507.000
$91,025,000
8.7%
1.9%
0.0%
16.2%
0.0%
15.6%
3.8%
13.4%
1.7%
16.2%
22,5%
100.0%
52
Permanent HH Pur. Power
California
Amount !Distribution! Amount
$2,144,837
5,599,243
1,105,712
3,606,332
408,632
4,863,433
1,767,868
2,778,524
5,655,652
3,377,582
5.722.383
$37,030,200
5.8%
15.1%
3.0%
9.7%
1.1%
13.1%
4.8%
7.5%
15.3%
9.1%
15,5%
100.0%
$5,807,163
(3,837,243)
(1,105,712)
11,133,668
(408,632)
9,311,567
1,694,132
9,390,476
(4,151,652)
11, 376, 418
14.784.617
$53,994,800
Residual Purchasing Power
Distribution
10.8%
-7.1%
-2.0%
20.6%
-0.8%
17.2%
3.1%
17.4%
-7.7%
21.1%
27.4%
100.0%
Over the 1990 to 1994 period, housing units in the Town of Truckee grew at an average
annual rate of 4.2 percent compared with 2.1 percent for the Truckee Environs and the
Area of Concern, which includes Martis Valley. The projections show Truckee moderating
to a long term average annual growth rate of about 2.3 percent, while the Environs and
the Area of Concern increase slightly to about 2.4 percent per year. This reflects the
assumption that as growth continues in the future, the surrounding areas will grow at
comparable rates to Truckee.
Table 3-8 presents a projection of the retail purchasing power, or demand, for the year
2015 for the Town of Truckee, the Truckee Environs and the Area of Concern. The total
demand from permanent residents, seasonal residents and transient sources is estimated
to support taxable retail sales of $161.16 million. Demand from the permanent residents
is estimated at 40.8 percent of the total, while the percentage from seasonal residents isis
estimated at 30.4 percent. The remaining 28.8 percent of retail demand is estimated to
be from transient sources. This percentage may increase if more regional serving
retailers are added in the primary market areas.
Permanent Residents. Retail purchasing power from the permanent residents of Truckee,
Truckee Environs and the Area of Concern in the year 2015 is projected at $65.82 million,
representing an increase of about $28.79 million from 1992. The majority of this
purchasing power is projected from the Truckee units which comprise an estimated 6,262
units, or about 66.8 percent of total units.
Seasonal Residents. The estimated retail purchasing power of the seasonal residents
for the year 2015 is estimated at some $48.97 million. As with the permanent resident
estimation, those units located within the Town of Truckee comprise the largest
component of the taxable retail purchasing power at about $25.91 million, or about 52.9
percent of the total. Retail demand from transient sources is projected at $46.36 million,
maintaining the same proportion of total retail sales at 15.2 percent.
3.3.5 Estimated Commercial Acreage Demand for 2015
Table 3-9 presents an overview of the commercial acreage estimated to be supportable
from the projection of new housing units and lack of existing retail space based on sales
leakage estimates. As shown in Table 3-9, a total of 67.71 acres of supportable retail
acres is estimated.
Incremental Growth. The estimation of supportable retail acres from incremental growth
is derived by taking the projected retail sales of $161.16 million for 2015 less the existing
retail sales of $91.03 million in 1992 for an increment of $70.13 million. The $70.13
million figure is then divided by the average taxable retail sales of $135 per square foot
53
TABLE 3-8
TOWN OF TRUCKEE
ESTIMATION OF 2015 TAXABLE RETAIL PURCHASING POWER
Permanent Residents
Area
Truckee
Truckee environs
Area of concern
Permanent
Occupied
Units
6,262
345
2,767
9,374
Median I Estimated Estimated
Household Purchasing I Aggregate
Income Capture' I EBI2
$40,012
24,708
35,121
60.0% $117,705,445
60.0% 4,001,335
60.0% 45,658,640
$167,365,420
Taxable
Retail
Sales3
$46,293,552
1,573,725
17, 957, 543
$65,824,820
Seasonal Residents
Seasonal
Occupied
Units
Median
Household
Income
Estimated j Estimated
Purchasing ' Aggregate
Capture ; EBI
Taxable
Retail
Sales
Truckee 7,009
Truckee environs 1,294
Area of concern 6.198
14,501
$40,012
24,708
35,121
30.0% $65,879,002
30.0% 7,511,940
30.0% 51131,239
$124,522,180
$25,910,211
2,954,446
20,109_916
$48,974,573
Units
Truckee 13,271
Truckee environs 1,639
Area of concern 8.965
23,875
Transient Taxable Retail Sales
Total Taxable Retail Sales
Median
Household
Income
$40,012
24,708
35,121
Total of Seasonal and Permanent
Estimated
Aggregate
EBI
$183,584,447
11, 513, 275
96,789,879
$291,887,600
Notes: 1. Estimated purchasing capture is the estimated amount captured in Truckee.
2. EBI = Effective Buying Income equals 0.783 times total agregate income.
3. Taxable retail sales equals 0.393 times EBI.
Source: Stanley R. Hoffman Associates, Inc.
54
Taxable
Retail
Sales
$72,203,763
4,528,171
38.067 459
$114,799,393
$46,359,381
Percent of
Total
Taxable
Retail Sales
40.8%
30.4%
28.8%
$161,158,775 100.0%
TABLE 3-9
TOWN OF TRUCKEE
ESTIMATION OF COMMERCIAL ACRES: 2015
Incremental Growth
Total Taxable Retail Sales
Buildout 2015 $161,158,775
Existing 1992 91,025,000
Taxable Retail Sales Increment $70,133,775
Taxable retail sales per square foot $135
Supportable square feet 519,509
Commercial floor area ratio 0.20
Total land square feet 2,597,547
Square feet per acre 43,560
Supportable retail acres 59.63
Existing Demand
Deficiency $9,503,240
Taxable retail sales per square foot $135
Estimated square feet 70,394
Commercial floor area ratio 0.20
Total land square feet 351,972
Square feet per acre 43,560
Supportable retail acres 8.08
Total
Supportable retail acres 67.71
Source: Stanley R. Hoffman Associates, Inc.
Town of Truckee
55
for the Town of Truckee to yield an increment of 519.5 thousand square feet. The
estimated 519.5 thousand building square feet is then divided by the overall commercial
floor area ratio (FAR), about 0.20 for the Truckee area, to obtain the land square footage
needed for commercial sites. The land square footage (2,547,947) is then divided by the
number of square feet in one acre, 43,560, for a total of 59.63 acres.
Existing Demand. Total net new supportable retail acres under existing demand
conditions are estimated at 8.08 acres. For the existing demand, the current deficiency
of $9.50 million is estimated by totalling those retail categories which exhibit retail leakage
from the area from the residual purchasing power analysis presented in Table 3-7. It is
assumed that sales in these categories are lost to the surrounding areas outside the
Town of Truckee. About 85.3 percent of the leakage is estimated from the general
merchandise stores and the auto dealers and auto supplies categories.
The estimated 70.4 thousand building square feet is then divided by the overall
commercial floor area ratio (FAR) of 0.20 to yield the land square footage estimated at
352.0 thousand square feet. The land square footage then converts to 8.08 acres.
Total Commercial Acreage Demand. As presented in Table 3-9, projected supportable
retail acreage is 67.71.
3.4 Industrial Market
The industrial market in Truckee has largely been serving the smaller user occupying
about 1,000 to 1,500 square feet of space. Many of these users serve the local or
regional market and perform automotive, construction, repair, building supplies,
warehousing and storage, light manufacturing and office functions. One large user
occupies about 18,000 square feet, providing manufacturing related to the gaming
industry, although this size of user is generally atypical for the current market.
The industrial lease rates are quoted as triple net (NNN). Triple net rates mean that the
tenant pays property taxes, insurance, maintenance and utilities. Lease rates range from
$0.65 per square foot for lower quality space to $0.85 per square foot for average quality
space. Class A space leases for about $1.00 per square foot, although in some centers
the rates have been quoted as high as $1.35 per square foot for selected uses. Users
of industrial space in Truckee generally pay a premium because of the higher construction
costs in the area, the climate and the lack of industrial sites. Also, distribution activities
can be hindered during the winter months. In comparison, industrial space in the Reno
area is quoted to range from $0.20 to $0.30 per square foot/NNN.
Vacancies are relatively low, estimated currently at about 2,500 square feet. This
vacancy is partially a function of the relatively small amount of supply and the non-
industrial nature of the area. Many of the industrial space users could be classified as
commercial services serving the local market. Truckee has not been an active area for
56
industrial development with about 188,000 square feet of existing industrial space
currently estimated, based on a parcel level study recently prepared for the Town.
Also, large sites are generally not readily available. For example, one large industrial
user occupies 18,000 square feet, but is planning to relocate to Reno where the land
prices in the $2.00 to $2.50 per square foot range are significantly below the $5.00 per
square foot price in Truckee. Also, it was indicated that their expansion needs of about
30,000 square feet could not be currently accommodated in Truckee.
The next chapter presents a projection of industrial employment and related space
demand. While the Truckee area has not historically experienced strong industrial
growth, some modest expansion of the industrial base is projected with much the same
mix of tenants as currently exists.
57
CHAPTER 4
ECONOMIC AND DEMOGRAPHIC PROJECTIONS
This chapter presents and discusses the long range population, housing and employment
projections prepared for the General Plan program for the Town of Truckee. These
projections are summarized below and presented in detail in the following sections.
Town of Truckee
Economic and Demographic Summary Data
Historic Levels
Projected Levels
1985
1995
2005
2015
Total Employment 3,401 5,225 6,776 8,109
Total Population 7,226 11,791 14,417 17,253
Total Housing Units 5,225 9,039 11,090 13,271
The projections for Truckee are based on projections for Nevada County, the Greater
Sacramento Region, Washoe County in Nevada and the total Bi-State Region. The
projections for these areas are based on the following sources:
The population projections in Report 93 P-1 "Population Projections by
Race/Ethnicity for California and Its Counties, 1990 - 2040", California Department
of Finance, Demographic Research Unit. These projections were used to scale
the regional employment projections from the year 2000 to the year 2015.
The population, housing unit and employment projections in the report Washoe
County Consensus Forecast, 1993 - 2015 from the Washoe County Department
of Comprehensive Planning.
Employment growth data for Truckee is based on ZIP code information in County
Business Patterns, from the U.S. Department of Commerce.
The Employment Development Department Annual Planning Information reports
for the counties of Nevada, Placer, El Dorado, Sacramento and Yuba were used
to estimate the employment database and provide industry level projections for the
1994 to 2000 period.
The consultant's economic model and projections for the Bi-State Region, including
the Sacramento and Yuba City MSAs, Nevada County, and Washoe County,
Nevada.
58
A geographic breakdown of the Nevada County and Truckee area projections,
based on historic capture rates and characteristics of the local Truckee economy.
Projections for the Truckee General Plan are based on the consultant's growth
analysis for the 1985 -1994 period, and the General Plan holding capacity.
These projections are based on a number of assumptions, including a recovery from the
current recession; an addition of 6 million jobs in California by the year 2010, with
comparable growth rates in the following decades.
4.1 Regional Growth Trends and Projections
This section presents historic levels and projections for Nevada County, Washoe County,
the Greater Sacramento Region and the total Bi-State Region.
The regional growth trends indicate some important background information for Truckee:
Nevada County has been growing faster than the region. The County's projected
growth rates will continue to outpace the region, however growth rates are
projected to slow.
• Washoe County has historically grown at a slower rate than the region. However,
growth rates for Washoe County are projected to outpace growth in the region.
4.1.1 Historic Trends
The historic growth trends clearly show that while growth in Nevada County was driven
by the regional growth in the Greater Sacramento Region and Washoe County, the
County also served as a destination for businesses and new households.
Over the 1985 to 1994 period, Nevada County experienced faster population, housing
and employment growth rates than the Greater Sacramento Region, Washoe County and
the total Bi-State Region. Population and housing units increased by 37 percent and 32
percent from their 1985 levels over this period. As shown in Table 4-1, this growth
represents an average annual growth rate of 3.6 percent for population and 3.2 percent
for housing units. Nevada County employment increased by nearly 49 percent of its 1985
level. Employment growth far outpaced employment growth in the region, at an average
annual rate of 4.5 percent.
During this same historic period from 1985 to 1994, the population of Washoe County
increased from 222,989 to 280,273, an increase of 57,284. Jobs expanded by 27,914
from 134,128 to 162,041, at an average annual rate of 2.1 percent. Washoe County's
housing grew from 98,539 units to 119,976 over the 1985-1994 period. These additional
21,437 units represented an average annual growth rate of 2.2 percent.
59
TABLE 4-1
TOWN OF TRUCKEE GENERAL PLAN
HISTORIC EMPLOYMENT, HOUSING AND POPULATION
BI -STATE REGION
Nevada County
Employment
Basic manufacturing
Basic non -manufacturing
Local serving
Total
Housing Units
Population
Historic Levels
Historic
Growth
Increment
Annual
Average
Growth Rate
1985 1994 1985-1994
1985-1994
2,150 2,598 448
3,090 4,775 1,685
13,765 20,899 7,134
19,005 28,272 9,267
31,182 41,236 10,054
63,484 87,172 23,688
2.1%
5.0%
4.7%
4.5%
3.2%
3.6%
Washoe County
Employment
Basic manufacturing 9,351 9,375 24 0.0%
Basic non -manufacturing 57,530 71,499 13,969 2.4%
Local serving 67,247 81,167 13,921 2.1%
Total 134,128 162,041 27,914 2.1%
Housing Units 98,539 119,976 21,437 2.2%
Population 222,989 280,273 57,284 2.6%
Greater Sacramento Region
Employment
Basic manufacturing 36,950 43,430 6,480 1.8%
Basic non -manufacturing 191,594 220,801 29,207 1.6%
Local serving 343,597 479,518 135,921 3.8%
Total 572,141 743,749 171,608 3.0%
Housing Units 556,941 707,763 150,822 2.7%
Population 1,346,475 1,774,918 428,443 3.1%
Total Bi-State Region
Employment
Basic manufacturing 48,451 55,403 6,952 1.5%
Basic non -manufacturing 252,214 297,075 44,861 1.8%
Local serving 424,608 581,584 156,976 3.6%
Total 725,273 934,062 208,789 2.9%
Housing Units 686,662 868,975 182,313 2.7%
Population 1,632,948 2,142,363 509,415 3.1%
Source: Stanley R. Hoffman Associates, Inc.
60
Over the 1985 to 1994 period, the Greater Sacramento Region gained 428,443 people,
increasing from a population of 1,346,475 to 1,774,918 --at an average annual growth rate
of 3.1 percent. The Greater Sacramento Region added 171,608 jobs over the same
period, that is employment grew at an annual rate of 3.0 percent. Housing unit growth in
the Greater Sacramento Region experienced an even slower rate of 2.7 percent annually.
The historical growth trends of the total Bi-State Region are very similar to the Greater
Sacramento Region. Population grew at an average annual growth rate of 3.1 percent,
while employment grew at a slower rate of 2.9 percent. Housing unit growth experienced
an average annual growth rate of 2.7 percent.
4.1.2 Projections
The projected growth increments for the 1994 to 2005 period and the 2005 to 2015 period
are shown in Table 4-2.
1994 to 2005 Projected Growth. Housing growth rates in Nevada County, the Greater
Sacramento Region and the total Bi-State Region are projected to decrease over
historical trends, while Washoe County housing growth rates are projected to remain at
historical levels. All areas are projected to experience slower population growth rates
over the 1994 to 2005 period than experienced from 1985 to 1994. Washoe County is
projected to experience a faster employment growth rate than over the historical period,
while all other areas are projected to have slower employment growth rates over the 1994
to 2005 period.
Nevada County is projected to continue growing faster than Washoe County, the Greater
Sacramento Region and the Bi-State Region. Over the 1994 to 2005 period, population
and housing growth is projected to grow at an annual average rates of 3.0 and 3.1
percent, while employment growth is projected to slow from its historical growth rate to
an average annual rate of 3.2 percent.
Washoe County population growth is projected to slow to a 2.3 percent average annual
rate, while growth in employment is projected to increase over the 1994 to 2005 period
to 2.6 percent annually. Housing is projected to continue its historical growth rate of 2.2
percent annually.
The Greater Sacramento Region is projected to slow in population, housing and
employment growth over the 1994 to 2005 period when compared with its historical
growth rates. Population growth is projected at a 2.3 percent annual rate, down from its
3.1 percent annual historical growth rate. The average annual growth rate for housing
is projected at 2.2 percent, while employment is projected to grow at 1.6 percent per year.
Growth rates for the total Bi-State Region are projected to slow to rates very similar to
the Greater Sacramento Region. However, because of the faster growth rates projected
61
TABLE 4-2
PROJECTED EMPLOYMENT, HOUSING AND POPULATION
BI -STATE REGION
Existing
1994
Projected Projected Increments
2005 I 2015 1994-2005 2005-2015
Average Annual
Growth Rates
1994-2005 2005-2015
Nevada County
Employment
Basic manufacturing 2,598 3,366 3,915 768 549 2.4% 1.5%
Basic non -manufacturing 4,775 6,735 8,248 1,960 1,512 3.2% 2.0%
Local serving 20,899 29,759 36,508 8,860 6,749 3.3% 2.1%
Total 28,272 39,860 48,670 11,588 8,810 3.2% 2.0%
Housing Units 41,236 57,518 70,231 16,282 12,713 3.1% 2.0%
Population 87,172 120,788 147,485 33,616 26,697 3.0% 2.0%
Washoe County
Employment
Basic manufacturing 9,375 10,371 11,496 996 1,125 0.9% 1.0%
Basic non -manufacturing 71,499 94,802 114,012 23,303 19,210 2.6% 1.9%
Local serving 81,167 110,301 134,698 29,134 24,397 2.8% 2.0%
Total 162,041 215,475 260,206 53,434 44,731 2.6% 1.9%
Housing Units 119,976 152,819 184,543 32,843 31,724 2.2% 1.9%
Population 280,273 359,125 433,677 78,852 74,552 2.3% 1.9%
Greater Sacramento Region
Employment
Basic manufacturing 43,430 53,225 60,904 9,795 7,679 1.9% 1.4%
Basic non -manufacturing 220,801 255,852 286,517 35,051 30,665 1.3% 1.1%
Local serving 479,518 576,327 663,502 96,809 87,176 1.7% 1.4%
Total 743,749 885,404 1,010,924 141,655 125,520 1.6% 1.3%
Housing Units 707,763 902,896 1,036,146 195,133 133,250 2.2% 1.4%
Population 1,774,918 2,271,492 2,600,247 496,574 328,755 2.3% 1.4%
Total Bi-State Region
Employment
Basic manufacturing 55,403 66,962 76,315 11,559 9,353 1.7% 1.3%
Basic non -manufacturing 297,075 357,390 408,777 60,315 51,387 1.7% 1.4%
Local serving 581,584 716,387 834,708 134,803 118,321 1.9% 1.5%
Total 934,062 1,140,739 1,319,800 206,677 179,061 1.8% 1.5%
Housing Units 868,975 1,113,233 1,290,920 244,258 177,687 2.3% 1.5%
Population 2,142,363 2,751,404 3,181,409 609,041 430,005 2.3% 1.5%
Source: Stanley R. Hoffman Associates, Inc.
62
for Washoe County, the Bi-State Region is projected to have slightly faster growth in
housing and employment than the Greater Sacramento Region.
2005 to 2015 Projected Growth. Nevada County is projected to have the faster
population, housing and employment growth rates of all the areas over the 2005 to 2015
period, at 2.0 percent annually. Growth rates for Washoe County are close to those of
Nevada County, at a 1.9 percent average annual rate of growth.
Housing growth is projected to increase at an average annual rate of 1.4 percent over the
2005 to 2015 period for the Greater Sacramento Region and 1.5 percent annually for the
Bi-State Region. Population growth rates are very similar for the two regions, with the
Greater Sacramento Region projected to increase at 1.4 percent annually and the Bi-
State Region projected to increase at 1.5 percent annually. The total Bi-State Region is
projected to gain jobs at an average annual rate of 1.5 percent over the 2005 to 2015
period, while the Greater Sacramento Region is projected to increase its employment at
an average annual rate of 1.3 percent.
4.1.3 Nevada County Employment Distribution
The Nevada County historic and projected employment is presented in detail in Table 4-3.
In preparing employment projections, the data are presented in different categories.
Basic employment activities bring in income to the community from outside demand
sources and local serving activities primarily serve local residents and businesses. The
following breakdown of employment is presented:
•
Basic manufacturing
Basic non -manufacturing
Local serving
Basic manufacturing employment represents industries producing goods and services
serving markets beyond the area in which they are located. These industries include food
products, metal fabrication and high technology manufacturing. Basic non -manufacturing
employment includes agriculture, long distance transportation, wholesale trade, business
services and federal and state government
Local serving employment is generated by basic employment and housing growth in the
local area and principally serves local demand. These industries include construction;
local transportation, communication and utilities; retail trade; finance, insurance and real
estate; services related to hotels, business, personal, educational, health and recreational
industries; local government; and self employed.
The mix of basic manufacturing, basic non -manufacturing and local serving employment
for Nevada County is summarized below.
63
TABLE 4-3
HISTORIC AND PROJECTED EMPLOYMENT
NEVADA COUNTY
Historic
Historic Levels Projected Levels •, Growth Projected Growth
SIC Industrial Category i 1985 j 1994 2005 , 2015 I 985-1994 ` 1994-2005 2005-2015
Basic Manufacturing
24 Lumber and wood products 425 270 310 353 (155) 40 43
Other 20-39 Other manufacturing 1.725 2.328 3.056 3.562 525 Z2$ 525
Subtotal 2,150 2,598 3,366 3,915 448 768 549
Basic Non -manufacturing
01-09 Agriculture, forestry, fisheries 75 86 86 86 11 0 0
10-14 Mining 51 97 97 97 46 0 0
40-42,44-47 Transportation 207 208 232 259 1 24 27
50 Wholesale trade 325 591 1,320 1,840 266 729 520
70 Hotels and motels 225 386 702 917 161 316 215
73,75,76,78,79,87 Basic services 1,457 2,686 3,582 4,317 1,229 896 735
Federal and state government zu 22 az 232 (221 L41 15
Subtotal 3,090 4,775 6,735 8,248 1,685 1,960 1,512
Local Serving
15-17 Construction 924 1,609 2,385 3,108 685 776 723
48,49 Communication and utilities 268 320 517 616 52 197 99
52-59 Retail trade 3,825 5,245 7,223 8,519 1,420 1,978 1,296
60-67 Finance, insurance, real estate 825 1,531 1,957 2,386 706 426 429
72,80,81,84-86,89 Local services 1,868 3,208 4,799 6,171 1,340 1,591 1,372
Local government 2,425 3,586 5,067 6,061 1,161 1,481 994
Self employed 3.630 5.400 7.812 9.647 1.770 2.412 1.835
Subtotal 13,765 20,899 29,759 36,508 7,134 8,860 6,749
TOTAL 19,005 28,272 39,860 48,670 9,267 11,588 8,810
Source: Stanley R. Hoffman Associates, Inc.
64
Basic Manufacturing. The share of basic manufacturing has declined to 9.2 percent of
total employment in 1994 from 11.3 percent of total employment in 1985. While overall
basic manufacturing experienced a net gain of 448 jobs over the 1985 to 1994 period the
situation is mixed within manufacturing categories. Lumber and wood products lost 155
jobs over this period, and other manufacturing gained 603 jobs.
Basic manufacturing is projected to account for 8.6 percent of all employment in Nevada
County in 2005, and 8.4 percent of all employment in 2015. Lumber and wood products
are projected to gain 40 jobs over the 1994 to 2005 period and 43 jobs over the 2005 to
2015 period. Other manufacturing is projected to gain 728 jobs over the 1994 to 2005
period and 506 jobs over the 2005 to 2015 period.
Nevada County
Historic and Projected Employment
Historic Share of
Total Employment
Projected Share of
Total Employment
Employment Category
1985
1994
2005
2015
Basic Manufacturing
Basic Non- Manufacturing
Local Serving
11.3%
16.3%
72.4%
9.2%
16.9%
73.9%
8.6%
17.1%
74.3%
8.4%
17.2%
74.4%
Basic Non -manufacturing. The share of basic non -manufacturing employment increased
to 16.9 percent in 1994 from 16.3 percent in 1985. Some 1,685 basic non -manufacturing
jobs were added over this period. Basic services added nearly 73 percent of these jobs
at 1,229; followed by wholesale trade with 266 new jobs.
The share of basic non -manufacturing jobs is projected to increase to 17.1 percent by the
year 2005. Of the 1,960 jobs projected to be added over the 1994 to 2005 period, basic
services will account for 46 percent, wholesale trade will account for 37 percent and
hotels and motels will account for 16 percent of the jobs in this category. The remaining
basic non -manufacturing jobs will be in transportation.
Projected basic non -manufacturing jobs are projected to account for about the same
share of total jobs in 2015 as they did in 2005, about 17.2 percent of all jobs. Basic
services are projected to add the largest number of jobs at 735 jobs, followed by
wholesale trade at 520 jobs. Hotels and motels are projected to account for about 14
percent of jobs added over this period with 215 jobs. Transportation is projected to add
27 jobs and 15 state and federal government jobs are projected.
Local Serving. Local serving jobs account for the largest share of all jobs throughout the
historic and projected periods. And local serving jobs are projected to account for larger
shares of total employment in 2005 and 2015.
65
Of the 7,134 local serving jobs added over the 1985 to 1994 period, the largest number
of jobs were in the self employed category. The next largest number of jobs added over
this period were in retail trade, followed by local services as hotels and motels, business,
personal, educational, health and recreational industries. Local government accounted
for the next large number of jobs over the historical period, followed by finance, insurance
and real estate (FIRE). Some 685 construction jobs were added over the 1985 to 1994
period, with the remaining local serving jobs in communication and utilities.
The local serving job mix is projected to remain relatively stable over the projection
periods, with the largest share of jobs in the self employed category. Over the 1994 to
2005 period retail trade will add the second largest number of jobs, followed by local
services and local government. Construction jobs are projected to increase their share
of total jobs while the share of FIRE jobs is projected to decline.
Over the 2005 to 2015 projection period, the self employed category is projected to be
followed by local services in terms of the number of new jobs. Retail trade is projected
to add the third largest number of jobs over this period, followed by local government;
construction; finance, insurance and real estate; and communications and utilities.
4.2. Truckee Area Projections
The projections for the Truckee area have been prepared through the following steps:
• First, projections of basic employment have been based on Nevada County
projections and estimated Truckee capture rates, based on historic trends.
Second, projections of local serving employment, housing and population
have been based on economic and demographic characteristics of Truckee,
and the basic employment projections.
4.2.1 Employment, Population and Housing Projections
The following discussion describes the specific aspects of the Truckee projections,
including the projected basic industries, the overall structure of the local economy, and
the local serving employment, housing and population projections.
Basic Employment. Table 4-4 presents the projections of basic employment. For Nevada
County, some 768 additional manufacturing jobs are projected for the 1994-2005 period,
and 549 manufacturing jobs are projected for the 2005-2015 period. Truckee is assumed
to capture 15 percent of this growth, resulting in an addition of 115 manufacturing jobs
between 1994 and 2005; and 82 manufacturing jobs between 2005 and 2015. The
assumption that the Truckee area will capture 15 percent of manufacturing job growth in
the county is based on historic trends in employment capture, and the expected position
of Truckee as a regional center for the north Lake Tahoe basin.
66
TABLE 4-4
BASIC EMPLOYMENT: NEVADA COUNTY AND TRUCKEE CAPTURE
SIC Industrial Category
NEVADA COUNTY EMPLOYMENT
Historic
Historic Levels i Projected Levels Growth Projected Growth
1985 ! 1994 2005 2015 r 1985-1994 1994-2005 2005-2015
Basic Manufacturing
24 Lumber and wood products 425 270 310 353 (155) 40 43
Other 20-39 Other manufacturing 1 725 2.328 a.M. 3.562 §.Q3 728 51/5
Subtotal 2,150 2,598 3,366 3,915 448 768 549
Basic Non -manufacturing
01-09 Agriculture, forestry, fisheries 75 86 86 86 11 0 0
1014 Mining 51 97 97 97 46 0 0
40-42,44-47 Transportation 207 208 232 259 1 24 27
50 Wholesale trade 325 591 1,320 1,840 266 729 520
70 Hotels and motels 225 386 702 917 161 316 215
73,75,76,78,79,87 Basic services 1,457 2,686 3,582 4,317 1,229 896 735
Federal and state government Z5Q 721 717 732 L231 (AI 15
Subtotal 3,090 4,775 6,735 8,248 1,685 1,960 1,512
TRUCKEE COMMUNITY I Estimated i Employment
I Capture I Historic
I of County Historic Levels Projected Levels Growth Projected Growth
Basic Manufacturing Growth I 1985 j 1994 2005 i 2015 j 1985-1994 ( 1994-2005 1 2005-2015
24 Lumber and wood products 15% I 24 50 56 62 26 6 6
Other 20-39 Other manufacturing i 15%j 54 112 221 29.1 a 1QQ ZQ
Subtotal 78 162 277 359 84 115 82
Basic Non -manufacturing
01-09 Agriculture, forestry, fisheries
10-14 Mining
40-42,44-47 Transportation
50 Wholesale trade
70 Hotels and motels
73,75,76,78,79,87 Basic services
Federal and state government
Subtotal
Source: Stanley R. Hoffman Associates, Inc.
=key assumptions
NA
NA
5%
5%1
10% 1
10%
10%
27 60 60 60 33 0 0
0 0 0 0 0 0 0
10 10 11 12 0 1 1
56 75 111 137 19 36 26
36 90 122 143 54 32 21
208 243 333 407 35 90 74
152 242 242 2QQ 55 Q 1
500 727 886 1,009 227 159 123
67
For non -manufacturing basic employment, the Truckee capture rates are estimated at 5
percent for transportation and wholesale trade; 10 percent for federal and state
government and basic services; and 10 percent for hotels and motels. As for
manufacturing activities, these capture rates are based on historic observations, and the
expected role of Truckee in its regional economy. The capture assumptions result in a
projection of 159 added non -manufacturing jobs over the 1994 to 2005 period; and 123
jobs from 2005 to 2015.
Local Serving Employment. The projections of local serving employment for Truckee are
shown in Table 4-5. These projections are derived from the basic employment
projections, and the observed relationships in Truckee between basic and local serving
employment. As shown in Table 4-5, the Truckee economy consists predominantly of
local serving jobs --with 4,155 local serving jobs as compared with only 889 basic jobs in
1994.
This economic structure exists for the following reasons:
The Truckee area his historically not been a center for basic jobs because
of its remote location, higher costs of construction and operation and lack
of a large labor force.
•
Local serving employment is strong because Truckee serves as a trade
center fora large trading hinterland and receives additional demand through
travel and tourism.
While the Truckee economy is viewed as undergoing transition to support more
manufacturing and other basic employment activities, the local serving employment
sectors are still expected to account for the bulk of job growth. As shown in Table 4-5,
an additional 1,458 local serving jobs in Truckee are projected for the 1994-2005 period;
and 1,128 are projected over the period from 2005 to 2015. The most important
categories of local serving employment are retail trade, local government, self employed
and construction. It should be noted that local government includes special district and
school district employment.
The projected growth in construction employment in Truckee over the period from 1995-
2015 can be attributed to several factors.
• First, housing and employment are projected to continue expanding.
Second, the quality and complexity of the future developments in the Town
of Truckee are likely to be greater than in the past when Truckee was
unincorporated, resulting in additional labor requirements.
68
TABLE 4-5
TRUCKEE AREA
LOCAL SERVING EMPLOYMENT, HOUSING AND POPULATION
Historic Levels i Projected Level
SIC Industrial Category 1985 1994 2005 1 2015
Basic Employment
Manufacturing
Non -manufacturing
Subtotal
Historic 1
Growth ! Projected Growth
1985-199411994-2005 2005-201511994-2015
78 162 277 359 84 115 82 197
5QQ Z2Z 2.5.a 1.009 22Z ]5.2 122 2$2
578 889 1,163 1,368 311 274 205 479
Local Serving Employment
15-17 Construction 352 558 748 895
48,49 Communication and utilities 45 29 39 46
52-59 Retail trade 968 1,254 1,727 2,091
60-67 Finance, insurance, real estate 195 463 620 742
72,80,81,84-86,89 Local services 278 365 489 585
Local government 488 748 1,002 1,199
Self employed 497 738 `,a1 1183
Subtotal 2.823 4.155 5.613 6.741
TOTAL 3,401 5,044 6,776 8,109
Local Serving Share
15-17 Construction 0.125 0.134 0.133 0.133
48,49 Communication and utilities 0.016 0.007 0.007 0.007
52-59 Retail trade 0.343 0.302 0.308 0.310
60-67 Finance, insurance, real estate 0.069 0.111 0.110 0.110
72,80,81,84-86,89 Local services 0.098 0.088 0.087 0.087
Local government 0.173 0.180 0.179 0.178
Self employed 0.176 0.178 0.176 0.175
1.000 1.000 1.000 1.000
Ratio of Total to Basic Employment 5.885 5.673 5.826 5.928
Summary Economic and Demographic Data
Total Employment
Total Population
Total Housing Units
Ratio of Total Employment to Population
Ratio of Total Population to Housing Units
Ratio of Total Employment to Housing Units
Source: Stanley R. Hoffman Associates, Inc.
1=key assumptions
3,401 5,044 6,776 8,109
7,226 10,492 14,417 17,253
5,255 8,166 11,090 13,271
0.47 0.48 0.47 0.47
1.38 1.28 1.30 1.30
0.65 0.62 0.61 0.61
69
206 190 147 337
(16) 10 7 17
286 473 364 837
268 157 122 279
87 124 96 220
260 254 197 451
244 254 195 444
1.331 1.458 1.128 2.586
1,642 1,732 1,333 3,065
• Third, the demand for special trade contractors, residential remodeling and
maintenance and repair construction will increase as Truckee grows.
Fourth, many unprecedented public works projects, particularly in roads and
circulation, will create construction jobs in Truckee.
Fifth, and finally, Truckee will have opportunities to serve as the service
base for maintenance and repair, renovations and new residential and non-
residential construction in North Lake Tahoe resorts and communities.
The Truckee economy shows a preponderance of local serving employment, with nearly
five local serving jobs projected for every basic job. This characteristic is consistent with
the difficulty of locating many basic jobs in the area; and the residential, recreation, and
tourism nature of the area.
Housing and Population. Table 4-5 also shows the projections of housing units and
population, which are based on historic trend ratios of employment to population, and
population to housing units. Population is projected to expand from its 1994 estimated
level of 10,492 to 14,417 by 2005 and to 17,253 by 2015. Housing units are estimated
on the basis of 1.3 persons per unit, and are projected to increase from the 1994 level
of 8,166 units to 11,090 units by 2005, and 13,271 units by 2015.
4.2.2. Land Use Projections
For use in the General Plan, the employment projections are converted into estimates of
land absorption. Table 4-6 shows the factors of employees per acre. With the exception
of hotels and motels, these factors are based on an assumption of a 0.20 floor area ratio
(FAR) for all types of development, based on advice from the Town of Truckee. The floor
area ratio (or FAR) refers to the ratio of building area to the total site area. For example,
an FAR of 0.20 represents a building area of 8,712 square feet on one acre, which is
comprised of 43,560 square feet. This building of 8,712 square feet is then estimated to
accommodate employment based on industry standards. For example, retail trade is
estimated to use 600 square feet per employee; manufacturing is estimated to use 750
square feet per employee; basic services is estimated to use 400 square feet per
employee, and so forth. Employees per acre are then defined as square feet per acre
divided by square feet per employee. In all cases, employees per acre are rounded
downward to the nearest whole employee.
For hotels and motels, the analysis assumes 0.50 employees per room (based on a mix
of motor lodge, hotel and bed and breakfast development) and 30 rooms per acre,
resulting in a factor of 15 employees per acre.
The land use factors range from a low of 8 employees per acre for construction,
transportation and wholesale trade, to a high of 21 employees per acre for
70
TABLE 4-6
TOWN OF TRUCKEE GENERAL PLAN
TRUCKEE AREA
ESTIMATES OF EMPLOYEES PER ACRE
Square Feet
per Acre
0.20 FAR'
Basic Manufacturing Employment
24 Lumber and wood products
Other 20-39 Other manufacturing
Basic Non -manufacturing Employment
01-09 Agriculture, forestry, fisheries
10-14 Mining
40-42,44-47 Transportation
50 Wholesale trade
70 Hotels and motels
73,75,76, 78, 79, 87 Basic services
Federal and state government
Local Serving Employment
15-17 Construction
48,49 Communication and utilities
52-59 Retail trade
60-67 Finance, insurance, and real estate
72,80,81,84-86,89 Local services
Local government
Self employed
Note: 1. FAR = Floor area ratio, the ratio of building floor space to land area.
Source: Stanley R. Hoffman Associates, Inc.
Town of Truckee
71
8,712
8,712
NA
NA
8,712
8,712
NA
8,712
8,712
8,712
8,712
8,712
8,712
8,712
8,712
8,712
Square Feet
per Employee
750
750
NA
NA
1,000
1,000
NA
400
400
1,000
400
600
400
400
400
400
Employees
per Acre
NA
NA
8
8
15
21
21
8
21
14
21
21
21
21
communication, utilities, and a range of finance, local service and government functions.
Retail trade is estimated at 14 employees per acre, and manufacturing is estimated at 11
employees per acre.
Table 4-7 shows the land use projections for non-residential development. In summary,
some 17.91 acres are estimated to be absorbed in manufacturing activities; 19.39 acres
in basic non -manufacturing employment; and 169.17 acres in local serving employment.
These land use acreages are based on Truckee's estimated capture rate of the projected
Nevada County basic employment and the Town's observed relationships of basic
employment to local serving employment.
These are acreages projected to be absorbed, and additional acreage in the General Plan
may be designated to provide supply margins. Supply margins are important in the
General Plan for a number of reasons:
To provide a range of choice in the development market, without a few
developers and property owners exerting excessive influence over prices
and absorption
To recognize that many parcels, for unique reasons, will never be
developed
• To recognize the uncertainty in the projections process and allow for
changing future conditions
4.3. Comparative Analysis of Truckee Projections
The above Truckee projections are compared with two other sets of projections:
The projections prepared by Recht Hausrath for Nevada County, and
presented in the memorandum, "Market Analysis and Development
Forecasts for Nevada County," dated April 4, 1994
The projections prepared by John Cone in June 1989 for the Nevada
County Planning Department, Land Use Projections for the Truckee
Community.
Table 4-8 presents the comparisons. The John Cone projections, which were originally
prepared for the 1990 to 2010 period, have been extrapolated to extend to 2015.
Generally, the General Plan projections for population and housing units show
consistency with those prepared by Recht Hausrath, although the General Plan
projections are somewhat lower. The population and housing projections prepared by
John Cone are not comparable with the General Plan projections.
72
TABLE 4-7
TRUCKEE AREA
ESTIMATES OF ACREAGE REQUIRED TO ACCOMMODATE EMPLOYMENT GROWTH
Basic Manufacturing Employment
24 Lumber and wood products
Other 20-39 Other manufacturing
Subtotal
Projected
Job Growth Employees Acres
1994-2015 per Acre Required
12 11 1.09
1.$5 11 16.82
197 17.91
Basic Non -manufacturing Employment
01-09 Agriculture, forestry, fisheries 0 NA NA
10-14 Mining 0 NA NA
40-42,44-47 Transportation 2 8 0.25
50 Wholesale trade 62 8 7.75
70 Hotels and motels 53 15 3.53
73,75,76,76,79,87 Basic services 164 21 7.81
Federal and state government 1. 21 Q.Q.
subtotal 282 19.39
Local Serving Employment
15-17 Construction 337 8 42.13
48,49 Communication and utilities 17 21 0.81
52-59 Retail trade 837 14 59.79
60-67 Finance, insurance, and real estate 279 21 13.29
72,80,81,84-86,89 Local services 220 21 10.48
Local government 451 21 21.48
Self employed 445 21 21.21
Subtotal 2,586 169.17
TOTAL 3,065 206.47
Source: Stanley R. Hoffman Associates, Inc.
73
TABLE 4-8
TOWN OF TRUCKEE GENERAL PLAN
COMPARISON OF GENERAL PLAN PROJECTIONS
WITH OTHER AVAILABLE PROJECTIONS
Truckee
General Plan
Recht E John
Hausrath t Cone'
Population
1994 10,492 9,329 11,200
2015 17.253 17.305 23.333
Growth 1994-2015 6,761 7,976 12,133
Housing Units
1994 8,166 7,359 6,689
2015 13.271 13.356 10.356
Growth 1994-2015 5,105 5,997 3,667
Employment
1994 5,044 7,427 7,297
2015 8,109 13.032 12,644
Growth 1994-2015 3,065 5,605 5,347
Source: Stanley R. Hoffman Associates, Inc
Recht Hausrath & Associates, Market Analysis and
Forecasts for Nevada County, April 4, 1994
John W. Cone, Land Use Projections for the Truckee
Community, June 1989
Note: 1. The John Cone projections were prepared for the 1990-2010 period. The 2015
projections shown have been extrapolated from the 1990-2010 projections.
74
On the employment side, the General Plan 1994 estimates and projections are well below
both the Recht Hausrath and John Cone estimates and projections. The General Plan
analysis estimates existing employment of 5,044 in Truckee, with expansion of 3,065 jobs
over the projection period. Both the Recht Hausrath and John Cone projections begin
with a current employment estimate of over 7,000 and project expansion of over 5,000
jobs.
The General Plan projections represent a 61 percent increase over the existing
employment estimate, while the Recht Hausrath and John Cone projections represent a
75 percent increase and a 73 percent increase over their estimated existing employment.
The major difference between the General Plan employment projections and the Recht
Hausrath and John Cone employment projections is attributed to the employment
database for Nevada County. The General Plan database is derived from the California
Employment Development Department (EDD) and the Census Transportation Planning
Package (CTPP). The EDD source is used for the estimates of wage and salary
employment and the CTPP source is used for estimates of self employed. The Recht
Hausrath and John Cone databases are derived solely from the U.S. Bureau of Economic
Analysis (BEA), Regional Economic Information System.
Table 4-9 presents the major differences between the General Plan and Recht Hausrath
databases for 1994. The General Plan database estimates Nevada County employment
of 28,272, consisting of 22,872 wage and salary employees and 5,400 self employed.
The Recht Hausrath database shows total employment of 37,500, consisting of 24,400
wage and salary employees and 13,100 self employed. While the Recht Hausrath wage
and salary data exceed those for the General Plan by only 1,528 (or about 6.7 percent),
the Recht Hausrath self employed data exceed the General Plan estimates by 7,700
(about 142.7 percent).
TABLE 4-9
TOWN OF TRUCKEE GENERAL PLAN
NEVADA COUNTY
1994 EMPLOYMENT ESTIMATES
Recht
Hausrath
Recht Hausrath
percent increase
General
Recht
minus
over
Plan
Hausrath
General Plan
General Plan
Wage and salary employees 22,872
Self employed 5,400
Total 28,272
Source: Stanley R. Hoffman Associates, Inc.
75
24,400
13,100
37,500
1,528
7.700
9,228
6.7%
142.6%
32.6%
A direct comparison between the General Plan and John Cone databases is not possible,
because the John Cone report does not include estimates of wage and salary versus self
employed workers for 1994. However, the John Cone report does include an estimate
of total employment in Nevada County for 1986. This estimate is 26,435, based on BEA
data, and is much higher than the General Plan estimate of 19,005 jobs in Nevada
County in 1985.
4.4 Sensitivity Analysis of Housing and Employment Projections
Housing Projections. The housing projections were linked to the population projections
through current relationships between housing and population. The annual average
expansion of the housing stock in Truckee is projected at 243 units, resulting in a
projection of 13,271 units in 2015. If the annual average growth of 310 units over the
past four years is used instead, the 2015 projection would be 14,676 units, an increase
of about 10 percent over the projection of 13,277 units
The ratio of population to housing units is influenced by the second home market. Based
on census information, the ratio of population to housing units in Truckee declined from
1.55 in 1980 to 1.28 in 1990, reflecting an increasing proportion of second homes in the
Truckee housing stock. A decline in this ratio implies an increase in the projected
number of housing units for a given population. Recent estimates from the California
Department of Finance show the ratio of population to housing units in Truckee at 1.30,
close to the 1990 ratio of 1.28.
Employment Projections. The employment projections shown in Table 4-2 indicate that
the rate of employment growth is projected to decline in the future. These trends are
based on projections from the California Employment Development Department to 1998,
which were extrapolated to 2005 and 2015. If the rate of growth of employment in
Truckee were to continue at the recent historic rate of 3.0 percent annually, the 2015
projection of jobs would be 9,103, or about 12 percent higher than the trend projection
of 8,109 jobs.
76
PART 3
FISCAL IMPACT ANALYSIS
77
CHAPTER 5
FISCAL ANALYSIS APPROACH AND BASE YEAR REVENUES AND COSTS
This part of the report presents the fiscal analysis approach, base year revenues and
costs and the fiscal impacts of the Truckee Draft General Plan and a Low Growth
Alternative for the General Plan. In addition a High Volume/Discount Retail Alternative
and a No Project Alternative are analyzed. The analysis presents both the 2015 and
cumulative buildout fiscal projections. Buildout assumes full development of all proposed
land uses some time after 2015.
The fiscal analysis presents recurring revenues and costs to the Town of Truckee
projected to result from the alternatives. While the significance of capital cost issues is
recognized, particularly for road improvements, capital costs and one-time development
fees are not projected as part of this analysis. Implications of capital facility financing on
the fiscal balance of the Draft General Plan are presented.
5.1 Fiscal Analysis Approach
This report uses the following information sources:
1 Land use acreages, dwelling units, population and employment for buildout are
based on the land use plans prepared by The Planning Center, January 17, 1995.
2. The land use descriptions for 2015 are based on the projections of housing units,
population and employment in Part 1 of this report.
3. Local street lane miles are derived for each land use by the consultant based on
site planning standards. Arterial and collector lane miles are based on planned
road expansions.
4. Residential product valuation is based on residential valuation information
presented in Our Town Truckee, February -March, 1994. The land use and market
factors for residential land uses are presented in detail in Appendix A.
5. Non-residential valuations are based on representative improvement costs and site
values. Taxable sales are based on the most recent taxable sales information
from the 1994-1995 Town Budget. The non-residential land use market and land
use factors are presented in Appendix A.
6. Revenue and cost factors have been derived from analysis of the 1994-1995 Town
of Truckee Annual Operating Budget; and from case study interviews with Town
staff. These factors are presented in detail in Appendix B.
78
7 All revenues and costs are presented in constant 1994-1995 dollars, with no
adjustments for possible future inflation.
8. Fiscal projections are for annually recurring revenues and costs for operations and
maintenance. No projections are made for capital facilities.
9. Fiscal projections are made only for the Town of Truckee.
5.2 Base Year Fiscal Analysis
A fiscal analysis of the base year 1994-1995 budget is presented, along with estimates
of housing, population and employment in 1995. Table 5-1 shows the estimated existing
residential uses in Truckee, based on estimates from the California Department of
Finance, Report E-5, issued in May 1995, and available planning data. As shown in
Table 5-1, there are an estimated 9,039 housing units in Truckee, occupying 5,923 acres.
The permanent population is estimated at 11,791.
Non-residential development is shown in Table 5-2. These data have been prepared on
the basis of assessor parcel files for Truckee and the employment analysis from Part 1
of this report. Commercial and industrial space is estimated at 2.30 million square feet,
occupying 259 acres. Employment is estimated at 5,225.
Table 5-3 presents the existing fiscal situation in Truckee, based on the 1994-1995
budget. The budget is balanced, with total revenues of about $7.79 million, including a
transfer from the impact fee fund for administrative costs related to processing the impact
fees, and total expenditures of the same amount. The expenditures are shown separately
for citywide overhead functions and direct departmental expenditures.
Taxes represent about 58 percent of total revenues, followed by State subventions of
motor vehicle in -lieu fees and road -related gas taxes, together representing about 16
percent of total recurring revenues. Because the Town of Truckee is newly incorporated,
the State subventions are calculated on the population basis of three times registered
voters through fiscal year 1997-1998. This calculation uses a population of 15,282
instead of the current actual population estimate of 11,791.
The adjusted budget column shown on Table 5-3 represents the estimated decrease in
State subventions when the formula reverts to the estimated population in the base year.
This calculation results in an estimated decrease of about $204.9 thousand in subvention
revenues when all other revenues and expenditures are held constant.
In order to present the base year fiscal analysis in terms of the categories which will be
used in the fiscal projections, a number of categories of revenues and costs are not
projected, as listed in Table 5-3. Essentially, revenues not projected include revenues
and costs that can not be projected on a per unit basis.
79
TABLE 5-1
TOWN OF TRUCKEE GENERAL PLAN
ESTIMATED EXISTING DEVELOPMENT
RESIDENTIAL USES
1995
Acres
2 dwelling units per acre and less 3,622
3-4 dwelling units per acre 292
6-12 dwelling units per acre 67
Mixed -use residential 1.941
Total 5,923
Dwelling Units
2 dwelling units per acre and less 3,980
3-4 dwelling units per acre 1,100
6-12 dwelling units per acre 539
Mixed -use residential 3.420
Total 9,039
Population
2 dwelling units per acre and less 5,573
3-4 dwelling units per acre 1,430
6-12 dwelling units per acre 1,000
Mixed -use residential 3.788
Total 11,791
Source: Stanley R. Hoffman Associates, Inc.
The Planning Center
80
TABLE 5-2
TOWN OF TRUCKEE GENERAL PLAN
ESTIMATED EXISTING DEVELOPMENT
NON-RESIDENTIAL USES
1995
Acres
Commercial/retail 78
High volume/discount retail 0
Commercial/office 11
Industrial 21
Motel 10
Resort hotel 0
Bed and breakfast 2
Public, institutional, other 138
Total 259
Square Feet
Commercial/retail 676,048
High volume/discount retail 0
Commercial/office 95,871
Industrial 180,097
Motel 113,400
Resort hotel 0
Bed and breakfast 31,500
Public, institutional, other 1,203.430
Total 2,300,346
Employment
Commercial/retail 2,697
High volume/discount retail 0
Commercial/office 641
Industrial 705
Motel 63
Resort hotel 0
Bed and breakfast 17
Public, institutional, other 1,102
Total 5,225
Source: Stanley R. Hoffman Associates, Inc.
The Planning Center
81
TABLE 5-3
TOWN OF TRUCKEE GENERAL PLAN
BASE YEAR BUDGET - ESTIMATED ACTUAL BUDGET, FISCAL YEAR 1994195
(In Constant 1994195 Dollars)
Category
REVENUE$
Taxes
Property taxes -- secured
Property taxes -- unsecured
Prior year taxes
Sales tax
Transient occupancy tax
Franchise tax
Business license tax
Real property transfer tax
Total taxes
Intergovernment Revenue
Motor vehicle in -lieu tax
Homeowners prop. tax relief
Off hwy motor vehicle in -lieu
Mandated costs reimbursement
Total Intergovernment Revenue
Qther Revenue
Animal control licenses
Animal Control -- Sierra County
Court fines -- moving violations
Parking violations
Interest income
Admin 10% impact fees
Animal shelter fees & charges
Reimbursable engineering
Miscellaneous revenue
Sublease revenues - CDD
Proceeds from sale of equipment
Total Other Revenues
Subtotal Revenues
Special Revenues
Planning revenue
Building and safety revenue
Street Revenue
Parcel Charges
Gas Tax 2105
Gas Tax 2106
Gas Tax 2107
Gas Tax 2107-5
Gas Tax 2107 -Snow
Project Revenue
Transit Revenue
Total Special Revenues
Total Revenues
EXPENDITURE$
Citywide Overhead
Town council
Town manager
Town attorney
Town clerk
Finance
Visitors Center
Shared government
Total Citywide
Direct Expenditures
Public works engineering - admin.
Public works engineering - capital
Public works snow
Public works maintenance
Planning
Building and safety
Animal control
Sheriff
Transit
Total Direct Expenditures
Total Expenditures
REVENUEIEXPENDITURE BALANCE
Total Less: i Equals: Percent of Total
I Base Year Non Base Year !Base Year Adjusted! Base Year I
Budget Amount i Amount' I Budget Amount ! Adjusted Amount i
$2,198,000 50 $2,198,000 29.0%
72800 0 72,800 1.0%
0 0 0 0.0%
1,397,000 0 1,397,000 18.4%
577,000 0 577,000 7.6%
101,000 0 101,000 1.3%
0 0 0 0.0%
MQ44 0 .QQQ 0 7%
4,400,800 0 4,400,800 58.0%
575,000 131,352 443,648 5.9%
55,000 0 55,000 0.7%
2,900 0 2,900 0.0%
2.442 0 2.404 Q.Qdt
634,900 131,352 503,548 6.6%
14,220 0 14,220 0.2%
850 0 850 0.0%
120,000 0 120,000 1.6%
26,000 0 26,000 0.3%
220,000 0 220,000 2.9%
66,300 0 66,300 0.9%
11,000 0 11,000 0.1%
24,000 0 24 000 0.3%
10,000 0 10.000 0,1%
1,600 0 1,600 0.0%
0 0 Q QIN
493,970 0 493,970 6 5%
5,529,670 131,352 5.398.318 71.2%
137,750 0 137,750 1.8%
827,320 0 827,320 10.9%
674,200 0 674,200 8.9%
0 0 0 0.0%
95,200 21,747 73.453 1 0%
95,000 21,702 73.298 1.0%
131,600 30,063 101,537 1,3%
4,000 0 4,000 0.1%
325,000 0 325,000 4.3%
23,400 0 23,400 0 3%
616.989 Q 616 989 8 114
2,256,259 73,512 2,182,747 28.8%
$7,785,929 $204,864 $7,581,065 100.0%
$92,600 $0 $92.600 1.4%
182,616 0 182.616 2.8%
41,250 0 41,250 0.6%
78,220 0 78,220 1.2%
176,840 0 176,840 2.7%
0 0 0 0.0%
281 684 0 281 684 4 3%
853,210 0 853,210 13.1%
105,166 0 105,166 1.6%
36,350 0 36.350 0.6%
1,227,882 0 1,227.882 18 8%
725,422 0 725,422 11.1%
328,193 0 328.193 5.0%
652,013 0 652,013 10.0%
127,790 0 127,790 2.0%
1,854 ,861 0 1,854,861 28.5%
Os 537 0 605 537 8.3&
5,663,214 0 5,663,214 86.9%
$6,516,424 $0 $6,516,424 100.0%
$1,269,505 $204,864 $1,064,641
Factor
Calculation
Explanation
per units and valuation
per commercial square foot
not projected
per square foot and sales per square foot
per room rate, occupancy and TOT
per housing unit
not projected
turnover rate
adjust for existing population
not projected
not projected
not projected
per capita
per capita
per capita and per visitor
per capita and per visitor
percent of total general fund revenues
not projected
per capita
not projected
per capita
per capita
not projected
not projected
not projected
per parcel
adjust for existing population
adjust for existing population
adjust for existing population
not projected
based on 50% of prior year costs
not projected
not projected
percent of direct costs
per capita
not projected
per lane mile
per lane mile, per signal, etc.
50 percent of costs - per capita
not projected
per capita
per capita
not projected
Not 1. Non -base year modifications include adjustments to factors for existing population versus three times registered voters which occurs after 1997/98.
Source: Stanley R. Hoffman Associates. Inc_
Townof Truckee. Estimated Actual Budget, Fiscal Year 199495
82
For purposes of comparing the base year fiscal balance with the projected fiscal impacts
of the General Plan Alternatives, a base year revenue adjustment component is
calculated. This base year revenue adjustment component includes those revenues
which are not projected and the offsetting adjustments made to costs for building and
safety and transit revenues.
The base year and adjusted base year revenue adjustment component is estimated at
$478,709, based on the following 1995 revenues:
Homeowners property tax relief $55,000
Off highway motor vehicle in -lieu 2,900
Mandated costs reimbursement 2,000
Admin.10% impact fees 66,300
Gasoline tax 2107.5 4,000
Reimbursable engineering 24,000
Planning department revenue 137,750
Building and safety surplus 175,307
Transit surplus 11,452
Total $478,709
The fiscal projections for the Draft General Plan and the other General Plan Alternatives
assume the collection of all property tax. The revenue adjustment component for fiscal
projections is estimated at $423,709 when homeowners property tax relief revenues of
$55,000 are subtracted from the $478,709 base year revenue adjustment component.
Table 5-4 shows the base year fiscal analysis in terms of the revenues and costs for
which fiscal projections are made for the Draft General Plan and alternatives. With the
revenue adjustment component of $478,709, Table 5-4 shows a fiscal surplus of $21.2
thousand for the base year budget and a deficit of $183.7 thousand for the adjusted base
year budget.
However, the analysis of the base year budget indicates that new revenue sources,
including sales and use tax and transient occupancy tax will be increasingly important if
Truckee is to maintain its fiscal viability.
5.3 Overview of the Fiscal Analysis
Chapter 6 presents the fiscal analysis for the Draft General Plan, including a description
of land uses and a projection of recurring revenues and costs. In Chapter 7, the three
alternatives are presented, including the High Volume/Discount Retail Alternative, the Low
Growth Alternative and the No Project Alternative. Chapter 7 also provides a comparative
analysis of all fiscal projections, including the 1995 base year revenues and costs.
83
TABLE 5-4
TOWN OF TRUCKEE GENERAL PLAN
BASE YEAR BUDGET AND ADJUSTED BASE YEAR BUDGET
RECURRING REVENUES AND COSTS
(In Constant 1994 -1995 Dollars)
Recurring Revenues
Property tax
Real property transfer tax
Sales and use tax
Transient occupancy tax
Franchise fees
State gasoline tax
Motor vehicle license fees
Special Service Area revenue
Fines
Licenses and fees
Other revenues
Interest
Revenue Subtotal
Revenue adjustment component
Total Revenues
Recurring Costs
Police protection
Animal control
Public works administration
Streets maintenance
Snow removal
Planning
Contribution to reserves
General government overhead
Total Costs
Net Recurring (Deficit)
Revenue/Cost Ratio
Base Year
Budget
$2,270,800
55,000
1,397,000
577,000
101,000
646,800
575,000
309,170
146,000
15,070
10,000
220.000
$6,322,840
$478,709
$6,801,549
$1,881,100
177,100
96,300
806,100
1,225,850
411,200
1,185,600
997.100
$6,780,349
$21,199
1.00
Percent
of Total
35.9%
0.9%
22.1%
9.1%
1.6%
10.2%
9.1%
4.9%
2.3%
0.2%
0.2%
3.5%
100.0%
27.7%
2.6%
1.4%
11.9%
18.1%
6.1%
17.5%
14.7%
100.0%
Adjusted
Base Year
Budget'
$2,270,800
55,000
1,397,000
577,000
101,000
573,288
443,648
309,170
146,000
15,070
10,000
220.000
$6,117,976
$478,709
$6,596,685
$1,881,100
177,100
96,300
806,100
1,225,850
411,200
1,185,600
997.100
$6,780,349
($183,665)
0.97
Percent
of Total
37.1%
0.9%
22.8%
9.4%
1.7%
9.4%
7.3%
5.1%
2.4%
0.2%
0.2%
3.6%
100.0%
27.7%
2.6%
1.4%
11.9%
18.1%
6.1%
17.5%
14.7%
100.0%
Note 1. The adjusted base year budget includes adjustments to population based revenues from the state.
These population based revenues are currently based on three times the registered voters when
Truckee incorporated. After 1997/98 these population based revenues will be based on Truckee's
population.
Source: Stanley R. Hoffman Associates, Inc.
Town of Truckee, Estimated Actual Budget, Fiscal Year 1994-1995
84
Appendix A presents the land use and market assumptions and Appendix B presents the
revenue and cost factors used for all the fiscal projections. The detailed revenue and
cost projections for the four alternatives are presented in Appendix C. Appendix D lists
the persons and agencies contacted in preparing the fiscal analysis.
85
CHAPTER 6
DRAFT GENERAL PLAN FISCAL ANALYSIS
This chapter presents the Draft General Plan fiscal analysis. The land use descriptions
are first presented, followed by the projected fiscal impacts for the Draft General Plan and
a discussion of the implications of capital facilities funding on the fiscal balance of the
Draft General Plan. Detailed land use and market factors are presented in Appendix A.
6.1 Draft General Plan Development Description
Residential and Non-residential Summary
The following is a summary of future residential and non-residential development in
Truckee, based on the Draft General Plan. As shown in Table 6-1, by 2015, housing
units in Truckee are projected at 13,271 and population is projected at 17,253,
representing an increase of 4,232 housing units and a population increase of 5,462.
Buildout of the Draft General Plan projects would include 17,620 housing units and a
population of 22,500. These projections represent an incremental growth of 8,581
housing units and a population increment of 10,709.
Non-residential development in 2015 is based on the economic analysis, as shown in
Table 6-2. This table shows the derivation of growth in retail square footage to the year
2015, based upon retail demand; and the derivation of growth in office and industrial
square footage, based on employment projections.
Table 6-3 shows the year 2015 and buildout non-residential development projections for
the Draft General Plan. The year 2015 projections reflect the growth increments
calculated in Table 6-2. Non-residential development in the Town of Truckee is currently
estimated at 2.30 million square feet and employment is estimated at 5,225. Non-
residential development is projected at 3.95 million square feet for 2015 and employment
is projected at 8,109. These projections represent an increase of 1.65 million square feet
and employment growth of 2,884. Non-residential development of the Draft General Plan
at buildout is projected at 8.07 million square feet and employment is projected at 13,480.
These projections represent an increase of 5.77 million square feet and an employment
increase of 8,255 over current estimated levels.
Detailed Development Description
The following discussion examines the composition of residential and non-residential
development. The buildout descriptions are presented first, since the 2015 descriptions
assume the buildout proportions of residential and non-residential categories.
86
TABLE 6.1
TOWN OF TRUCKEE GENERAL PLAN
DRAFT GENERAL PLAN
PROJECTED RESIDENTIAL DEVELOPMENT
2015 Buildout
Acres
2 dwelling units per acre and less 6,952 9,878
3-4 dwelling units per acre 331 426
6-12 dwelling units per acre 190 251
Mixed -use residential 3.008 3.870
Total 10,481 14,425
Dwelling Units
2 dwelling units per acre and less 4,218 5,530
3-4 dwelling units per acre 1,252 1,610
6-12 dwelling units per acre 1,514 2,010
Mixed -use residential 6.287 8.470
Total 13,271 17,620
Population
2 dwelling units per acre and less 5,472 7,030
3-4 dwelling units per acre 1,622 2,050
6-12 dwelling units per acre 1,972 2,570
Mixed -use residential 8.187 10.850
Total 17,253 22,500
Source: Stanley R. Hoffman Associates, Inc.
The Planning Center
87
TABLE 6-2
TOWN of TRUCKEE GENERAL PLAN
YEAR 2015 PROJECTIONS of NON-RESIDENTIAL DEVELOPMENT
BASED on ECONOMIC PROJECTIONS
A Retail Space Growth based on Retail Demand'
Excess existing demand
Projected local demand
North Lake Tahoe capture
Total
Retail
Dollar Square Feet
Amount @ $135 per SF
$9,503,240 70,394
70,133, 775 519,509
22.400.000 165.926
$102,037,015 755,830
B Office Space Growth based on Employment Projections2
Incremental
Jobs Square Feet
1995-2015 per Employee
Finance, insurance and real estate (1/2 share) 140
Local services (1/3 share) 73
Basic services (1/3 share) 55
Local government (1/3 share) 150
Self employed (1/3 share) j4$
Total 566
C Industrial Space Growth based on Employment Projections2
Manufacturing
Construction
Transportation
Communication and utilities
Wholesale trade
Local services (1/3 share)
Basic services (1/3 share)
Self employed (1/3 share)
Total
350
350
350
350
350
Estimated
Square Feet
49,000
25.550
19,250
52,500
51.800
198,100
Incremental
Jobs
1995-2015
197
337
2
17
62
73
55
891
Square Feet
per Employee
750
1,000
1,000
400
1,000
400
400
400
Estimated
Square Feet
147,750
337,000
2,000
6,800
62,000
29,200
22,000
59.200
665,950
Notes: 1. Retail demand analysis is derived from Table 3-9.
2. Employment -based office and industrial analysis is derived from Tables 4-4 and 4-5.
Source: Stanley R. Hoffman Associates, Inc.
88
TABLE 6-3
TOWN OF TRUCKEE GENERAL PLAN
DRAFT GENERAL PLAN
PROJECTED NON-RESIDENTIAL DEVELOPMENT
2015 j Buildout
Acres
Commercial/retail 143 359
High volume/discount retail 0 0
Commercial/office 34 97
Industrial 97 189
Motel 17 21
Resort hotel 0 8
Bed and breakfast 2 3
Public, institutional, other 152 231
Total 446 908
Square Feet
Commercial/retail 1,245,919 3,129,950
High volume/discount retail 0 0
Commercial/office 293,971 841,550
Industrial 846,047 1,647,000
Motel 194,400 236,250
Resort hotel 0 150,000
Bed and breakfast 46,500 56,250
Public, institutional, other 1.323.650 2.012.000
Total 3,950,487 8,073,000
Employment
Commercial/retail 3,298 6,008
High volume/discount retail 0 0
Commercial/office 1,638 2,751
Industrial 1,620 2,080
Motel 108 181
Resort hotel 0 271
Bed and breakfast 25 29
Public, institutional, other 1.421 2.160
Total 8,109 13,480
Source: Stanley R. Hoffman Associates, Inc.
The Planning Center
89
Residential Development
Residential Development at Buildout. As shown in Table 6-1, a total of 17,620 housing
units and a population of 22,500 are projected for buildout of the Draft General Plan. The
residential acreage is projected at 14,425.
Four general residential land use categories are projected. At buildout, units at a density
of 2 dwelling units per acre or less are projected to account for 5,530 units out of a total
of 17,620. Mixed -use residential units are projected to account for 8,470 units. Finally,
units at 3-4 per acre and units at 6-12 per acre are projected at 1,610 and 2,010,
respectively. Total population in Truckee at buildout of the Draft General Plan is
projected at 22,500.
Residential Development in 2015. The total residential development for 2015 is based
on the projection of 13,271 housing units and a population projection of 17,253.
Development within each land use designation for 2015 is assumed to occur at the same
relative proportion as represented at buildout of the Draft General Plan.
Non -Residential Development
Non-residential Development at Buildout. As shown in Table 6-3, a total of 8.07 million
square feet of public, office, industrial, commercial and mixed use development is planned
for buildout of the Draft General Plan. Employment is projected at 13,480 and non-
residential acreage is projected at 908.
Commercial/retail development is projected at 3.13 million square feet at buildout and is
the largest category of non-residential development. Commercial/retail employment is
projected at 6,008. Development in public, institutional and other uses is projected for
2.01 million square feet. Industrial development of 1.65 million square feet, with
employment of 2,080, is projected. Commercial/office development is projected at 841.5
thousand square feet with 2,751 jobs. Lodging development consisting of motels, a hotel
resort and bed and breakfast facilities are projected at 442.5 thousand square feet.
Lodging employment is projected at 481.
Non-residential Development in 2015. Development within each land use designation for
2015 is assumed to occur at the same relative proportion as represented for buildout of
the Draft General Plan. The total non-residential development for 2015 is based on the
employment projection of 8,109.
6.2 Draft General Plan Fiscal Analysis
This section presents the projected recurring revenues and costs for the Draft General
Plan land uses for 2015 and buildout. The buildout analysis assumes full development
of all proposed land uses at some unspecified time after 2015. All projections are
90
presented in constant 1994-1995 dollars. The fiscal projections are cumulative; that is,
they represent all revenues and costs from existing development (as presented above in
Table 5-4) plus future revenues and costs from new development.
Recurring Revenue and Cost Categories
The fiscal analysis of the Draft General Plan focuses on recurring revenues and costs and
does not project capital costs or development impact fees. The projected revenues
include property and property transfer taxes, sales and use tax, transient occupancy
taxes, State subventions, such as gasoline taxes and motor vehicle license fees, other
license and franchise fees, fines, special and other revenues and interest income.
The projected costs include those handled directly by the Town of Truckee as well as
those provided under contract, such as police protection. Services provided directly by
the Town include public works related to streets, drainage and snow removal, planning,
animal control and citywide overhead functions. Also included is a contingency for
contribution to reserves. Selected services, such as building and safety, are assumed
to be self-supporting through processing fees and charges.
The projected fiscal impacts of the Draft General Plan are substantially positive for both
2015 and buildout as presented in Table 6-4. For 2015, a projected surplus of about
$2.62 million is projected, representing a revenue/cost ratio of 1.35. This ratio means that
$1.35 in revenues are projected for every $1.00 of costs. At buildout, the fiscal surplus
is projected at $6.92 million, for a revenue/cost ratio of 1.72. This favorable fiscal result
is largely based on the projected property tax and sales and use tax, which together are
projected to account for 68.9 percent of total revenues at buildout. These two revenue
sources comprised about 59.9 percent of Town revenues in the base year budget for
1994-1995. The buildout projection is more positive than the 2015 projection because
it includes relatively more commercial retail and lodging development.
The projected transient occupancy tax of $788,398 in 2015 is higher than that of
$577,000 for the base year 1995. The lodging projections assume conservative
occupancy rates of 65 percent for motels and 60 percent for bed and breakfast. These
rates are lower than the rates assumed to be experienced in 1994-1995.
For projected costs, police protection is the largest category constituting 37.3 percent of
total recurring costs. The next largest categories are snow removal, general government
overhead and streets maintenance. In total, these four categories account for 82.5
percent of total Town costs.
The streets maintenance costs are based on estimated expansion of local roads and
planned expansion of arterial and collector roads, including the Tahoe Donner Bypass
and the Deerfield Bypass. Contributions to reserves are assumed to be 5 percent of all
Town revenues. This is a prudent allocation, based on experience of other jurisdictions.
91
TABLE 6-4
TOWN OF TRUCKEE GENERAL PLAN
DRAFT GENERAL PLAN
PROJECTED RECURRING REVENUES AND COSTS
(In Constant 1994 - 1995 Dollars)
Percent of Total
2015 Buildout at Buildout
Recurring Revenues
Property tax
Real property transfer tax
Sales and use tax
Transient occupancy tax
Franchise fees
State gasoline tax
Motor vehicle license fees
Special Service Area revenue
Fines
Licenses and fees
Other revenues
Interest
Revenue Subtotal
$4,097,707
98,179
2,042,871
788,398
117,749
1,098,371
655,930
453,921
213,632
22,051
14,632
45.972
$9,649,414
Revenue adjustment component $423,709
Total Revenues
Recurring Costs
Police protection
Animal control
Public works administration
Streets maintenance
Snow removal
Planning
Contribution to reserves
General government overhead
Total Costs
Net Recurring Surplus
Revenue/Cost Ratio
$10,073,123
$2,752,491
259,139
113,976
972,088
1,432,832
300,841
503,656
1.114.140
$7,449,162
$2,623,961
1.35
$6,008,091
136,218
5,098,666
1,504,941
156,336
1,361,384
855,412
602,674
278,602
28,757
19,082
76.833
$16,126,996
$423,709
$16,550,705
Source: Stanley R. Hoffman Associates, Inc.
Town of Truckee, Estimated Actual Budget, 1994 -1995
$3,589,581
337,948
137,794
1,180, 955
1,726,535
392,333
827,535
1.440.847
$9,633,530
$6,917,175
1.72
37.3%
0.8%
31.6%
9.3%
1.0%
8.4%
5.3%
3.7%
1.7%
0.2%
0.1%
0.5%
100.0%
37.3%
3.5%
1.4%
12.3%
17.9%
4.1%
8.6%
15,0%
100.0%
92
6.3 Implications of Capital Facilities Funding on the Fiscal Balance of the Draft
General Plan
Capital costs estimates are not presented in this analysis. While Truckee has identified
necessary road improvement costs of $15.9 million and identified the impacts of these
costs, other specific capital facilities requirements have not been identified as part of the
general plan process. It is likely that Town -wide facilities such as a corporation yard and
a Town Hall will be required to service the growth envisioned in the Draft General Plan.
The size and the cost of such Town -wide facilities and other capital facility improvements
will depend on timing of the facilities.
The table below presents a range of financing amounts from $10.00 million to $25.00
million to illustrate the impact of capital facilities funding in terms of an annual debt
service for the Town's general fund. This range is entirely hypothetical and is intended
only to illustrate the impact of varying financing amounts on the Town's fiscal balance.
A 25 year term is assumed at interest rates of 7 percent, 8 percent and 9 percent interest
for each amount financed. Annual debt service ranges from $858.1 thousand for the
funding of $10.00 million at 7 percent interest to $2.55 million for funding of $25.00 million
at 9 percent interest.
In terms of the Draft General Plan, the annual debt service of $2.55 million for funding
of $25.00 million in capital facilities at 9 percent interest, represents approximately 86
percent of the fiscal surplus of $2.95 million projected for the year 2015.
Annual Debt Service
Assuming Varying Amounts Financed
25 Year Term
Interest Rate
Amount Financed
7.0%
8.0%
9.0%
$10,000,000 $858,105
$15,000,000 $1,287,158
$20,000,000 $1,716,210
$25,000,000 $2,145,263
Source: Stanley R. Hoffman Associates, Inc.
93
$936,788
$1,405,182
$1,873,576
$2,341,969
$1,018,063
$1,527,094
$2,036,125
$2,545,156
CHAPTER 7
FISCAL ANALYSIS OF ALTERNATIVES
This chapter presents the fiscal analysis of a number of alternatives which have been
identified in the General Plan process, including:
A High Volume/Discount Retail Alternative, in which 160,000 additional square feet
of retail are assumed to be developed in 2015. At buildout, some 220,000 square
feet of high volume/discount retail are assumed, with a corresponding reduction
in commercial/retail space. The estimated sales generation for high
volume/discount retail is $230 per square foot. This alternative assumes the
same residential development as the Draft General Plan.
A Low Growth Alternative, which assumes the same development levels as the
Draft General Plan by 2015, but has ultimate buildout levels below the Draft
General Plan.
A No Project Alternative, in which it is assumed that all currently entitled residential
development occurs, but little future non-residential development is assumed to
occur. The No Project Alternative is presented in a single projection, as it is
assumed to be built out by 2015.
7.1 High Volume/Discount Retail Alternative
Development Description
Table 7-1 presents the non-residential development description for the High
Volume/Discount Retail Alternative. The High Volume/Discount Retail component is
projected at 220,000 square feet at buildout, with employment at 545 at buildout. The
commercial/retail component is projected at 2.91 million square feet at buildout,
representing a reduction in space corresponding to the space allocated to High
Volume/Discount Retail. Commercial/retail employment is projected at 5,592 at buildout.
Also, there is no difference in residential development between this alternative and the
Draft General Plan.
The High Volume/Discount Retail development for 2015 is projected at 160 thousand
square feet and employment is projected at 396. This level of retail development
corresponds with the North Lake Tahoe capture discussed in Chapter 3 and quantified
in Table 6-2. Other types of commercial/retail development are projected at 1.25 million
square feet and commercial/retail employment is projected at 3,298 for 2015. All other
non-residential and residential development projections for 2015 remain the same as
projected in the Draft General Plan.
94
TABLE 7-1
TOWN OF TRUCKEE GENERAL PLAN
HIGH VOLUME/DISCOUNT RETAIL ALTERNATIVE
PROJECTED NON-RESIDENTIAL DEVELOPMENT
2015 Buildout
Acres
Commercial/retail 143 334
High volume/discount retail 18 25
Commercial/office 34 97
Industrial 97 189
Motel 17 21
Resort hotel 0 8
Bed and breakfast 2 3
Public, institutional, other 152 231
Total 464 908
Square Feet
Commercial/retail 1,245,919 2,909,950
High volume/discount retail 160,000 220,000
Commercial/office 293,971 841,550
Industrial 846,047 1,647,000
Motel 194,400 236,250
Resort hotel 0 150,000
Bed and breakfast 46,500 56,250
Public, institutional, other 1,323.650 2,012.000
Total 4,110, 487 8,073,000
Employment
Commercial/retail 3,298 5,592
High volume/discount retail 396 545
Commercial/office 1,638 2,751
Industrial 1,620 2,080
Motel 108 181
Resort hotel 0 271
Bed and breakfast 25 29
Public, institutional, other 1.421 2.160
Total 8,505 13,609
Source: Stanley R. Hoffman Associates, Inc.
The Planning Center
95
This alternative essentially represents a change in the nature of commercial/retail square
footage without changing the total buildout square footage allowed under the Draft
General Plan. The major difference from a fiscal point of view is that the High
Volume/Discount Retail development is assumed to generate taxable retail sales at an
estimated annual average of $230 per square foot (based on information from retail
developers) compared with the relatively lower average of $135 per square foot for
standard types of commercial retail development.
Fiscal Projection
As presented in Table 7-2, the High Volume/Discount Retail alternative is projected to
generate a surplus of $3.01 million by 2015, for a revenue/cost ratio of 1.41. This surplus
is about $433 thousand higher than that projected for 2015 under the Draft General Plan.
7.2 Low Growth Alternative
Development Description
The cumulative development in 2015 is the same under the Low Growth Alternative as
under the Draft General Plan. The buildout projection, assumed to occur after 2015,
assumes full development of somewhat lower levels of residential and non-residential
uses under the Low Growth Alternative. The buildout housing units for the Low Growth
Alternative --at 17,075 --are about 97 percent of the buildout level of the Draft General
Plan. The Low Growth Alternative buildout of non-residential square feet --7.51 million
square feet --is about 93 percent of the buildout level of the Draft General Plan. Tables
7-3 and 7-4 present the development descriptions for the Low Growth Alternative.
Fiscal Projection
The fiscal impacts of the General Plan Low Growth Alternative for 2015 and buildout are
presented in Table 7-5. For 2015, an annual surplus of about $2.62 million is projected,
based on recurring revenues of $10.07 million and recurring costs of $7.45 million. This
2015 projection is the same as the Draft General Plan, since the 2015 development or
the Low Growth Alternative is identical to the Draft General Plan for 2015.
At buildout, the projected fiscal surplus for the Low Growth Alternative is about $6.15
million, with a revenue/cost ratio of 1.66. This projected surplus is based on recurring
revenues of $15.52 million and recurring costs of $9.37 million. The projected fiscal
surplus of $6.15 million for the Low Growth Alternative is about $763 thousand lower than
the fiscal surplus of $6.92 million projected for the Draft General Plan.
96
TABLE 7-2
TOWN OF TRUCKEE GENERAL PLAN
HIGH VOLUME/DISCOUNT RETAIL ALTERNATIVE
PROJECTED RECURRING REVENUES AND COSTS
(In Constant 1994 - 1995 Dollars)
Recurring Revenues
Property tax
Real property transfer tax
Sales and use tax
Transient occupancy tax
Franchise fees
State gasoline tax
Motor vehicle license fees
Special Service Area revenue
Fines
Licenses and fees
Other revenues
Interest
Revenue Subtotal
Revenue adjustment component
Total Revenues
Recurring Costs
Police protection
Animal control
Public works administration
Streets maintenance
Snow removal
Planning
Contribution to reserves
General government overhead
Total Costs
Net Recurring Surplus
Revenue/Cost Ratio
2015
Buildout
Percent of Total
at Buildout
$4,136,799
98,601
2,462,391
788,398
117,749
1,098,543
655,930
453,921
213,632
22,051
14,632
48,171
$10,110,819
$423,709
$10,534,528
$2,752,491
259,139
114,003
972,312
1,433,176
300,841
526,726
1,118.302
$7,476,989
$3,057,539
1.41
$6,008,091
136,218
5,336,926
1,504,941
156,336
1,361,026
855,412
602,674
278,602
28,757
19,082
77, 972
$16,366,037
$423,709
$16,789,746
Source: Stanley R. Hoffman Associates, Inc.
Town of Truckee, Estimated Actual Budget, 1994 - 1995
97
$3,589,581
337,948
137,738
1,180,489
1,725,820
392,333
839,487
1.442.731
$9,646,129
$7,143,618
1.74
36.7%
0.8%
32.6%
9.2%
'1.0%
8.3%
5.2%
3.7%
1.7%
0.2%
0.1%
0.5%
100.0%
37.2%
3.5%
1.4%
12.2%
17.9%
4.1%
8.7%
15.0%
100.0%
TABLE 7-3
TOWN OF TRUCKEE GENERAL PLAN
LOW GROWTH ALTERNATIVE
PROJECTED RESIDENTIAL DEVELOPMENT
2015 Buildout
Acres
2 dwelling units per acre and less 6,952 9,904
3-4 dwelling units per acre 331 426
6-12 dwelling units per acre 190 278
Mixed -use residential 3.008 3.870
Total 10,481 14,478
Dwelling Units
2 dwelling units per acre and less 4,218 5,160
3-4 dwelling units per acre 1,252 1,610
6-12 dwelling units per acre 1,514 2,220
Mixed -use residential 6.287 8,085
Total 13,271 17,075
Population
2 dwelling units per acre and less 5,472 6,560
3-4 dwelling units per acre 1,622 2,050
6-12 dwelling units per acre 1,972 2,840
Mixed -use residential 8 187 10.390
Total 17,253 21,840
Source: Stanley R. Hoffman Associates, Inc.
The Planning Center
98
TABLE 7-4
TOWN OF TRUCKEE GENERAL PLAN
LOW GROWTH ALTERNATIVE
PROJECTED NON-RESIDENTIAL DEVELOPMENT
2015 Buildout
Acres
Commercial/retail 143 313
High volume/discount retail 0 0
Commercial/office 34 78
Industrial 97 189
Motel 17 21
Resort hotel 0 8
Bed and breakfast 2 3
Public, institutional, other 152 231
Total 446 843
Square Feet
Commercial/retail 1,245,919 2,726,800
High volume/discount retail 0 0
Commercial/office 293,971 681,700
Industrial 846,047 1,647,000
Motel 194,400 236,250
Resort hotel 0 150,000
Bed and breakfast 46,500 56,250
Public, institutional, other 1.323.650 2.012.000
Total 3,950,487 7,510,000
Employment
Commercial/retail 3,298 5,367
High volume/discount retail 0 0
Commercial/office 1,638 2,241
Industrial 1,620 2,080
Motel 108 181
Resort hotel 0 271
Bed and breakfast 25 29
Public, institutional, other 1.421 2.160
Total 8,109 12,330
Source: Stanley R. Hoffman Associates, Inc.
The Planning Center
99
TABLE 7-5
TOWN OF TRUCKEE GENERAL PLAN
LOW GROWTH ALTERNATIVE
PROJECTED RECURRING REVENUES AND COSTS
(In Constant 1994 - 1995 Dollars)
Recurring Revenues
Property tax
Real property transfer tax
Sales and use tax
Transient occupancy tax
Franchise fees
State gasoline tax
Motor vehicle license fees
Special Service Area revenue
Fines
Licenses and fees
Other revenues
Interest
Revenue Subtotal
Revenue adjustment component
Total Revenues
Recurring Costs
Police protection
Animal control
Public works administration
Streets maintenance
Snow removal
Planning
Contribution to reserves
General government overhead
Total Costs
Net Recurring Surplus
Revenue/Cost Ratio
2015
Buildout
Percent of Total
at Buildout
$4,097,707
98,179
2,042,871
788,398
117,749
1,098,371
655,930
453,921
213,632
22,051
14,632
45,972
$9,649,414
$423,709
$10,073,123
$2,752,491
259,139
113,976
972,088
1,432,832
300,841
503,656
1,114.140
$7,449,162
$2,623,961
1.35
$5,697,950
130,224
4,478,218
1,504,941
151,501
1,333,029
830,327
584,033
270,432
27,914
18,523
71.936
$15,099,027
$423,709
$15,522,736
Source: Stanley R. Hoffman Associates, Inc.
Town of Truckee, Estimated Actual Budget, 1994 - 1995
100
$3,484,315
328,038
135,642
1,163, 041
1,699,041
380,828
776,137
1,401,163
$9,368,204
$6,154,531
1.66
37.7%
0.9%
29.7%
10.0%
1.0%
8.8%
5.5%
3.9%
1.8%
0.2%
0.1%
0.5%
100.0%
37.2%
3.5%
1.4%
12.4%
18.1%
4.1%
8.3%
15.0%
100.0%
7.3 No Project Alternative
Development Description
The No Project Alternative includes only currently entitled development proposals, which
are predominantly residential. As shown in Table 7-6, residential development is
estimated at 13,039 units, and is assumed to be completed by 2015, since this total is
below the 13,271 units assumed to be developed by 2015 under the Draft General Plan.
As shown in Table 7-7, non-residential development by 2015 under the No Project
Alternative is estimated at 2,345,609 square feet, only slightly (about 45,000 square feet)
above estimated 1995 base year development of 2,300,346 square feet. Thus the No
Project Alternative represents predominantly residential development.
Fiscal Impacts
Table 7-8 presents the fiscal impacts of the No Project Alternative. A surplus of $1.57
million and a revenue/cost ratio of 1.21 is projected. This projected surplus is based on
recurring revenues of $9.15 million and recurring costs of $7.58 million.
7.4 Comparison of Alternatives
Tables 7-9 and 7-10 summarize the existing residential and non-residential development
in Truckee and present the four alternatives for the year 2015. The same comparisons
between existing development and buildout of the four alternatives are presented in
Tables 7-11 and 7-12.
Table 7-13 compares the existing fiscal conditions in Truckee with the projections under
the four alternatives for 2015. Comparisons between existing fiscal conditions and
buildout of the four alternatives are shown in Table 7-14.
101
TABLE 7-6
TOWN OF TRUCKEE GENERAL PLAN
NO PROJECT ALTERNATIVE
PROJECTED RESIDENTIAL DEVELOPMENT
Buildout
Acres
2 dwelling units per acre 3,622
3-4 dwelling units per acre 292
6-12 dwelling units per acre 67
Mixed -use residential 3.870
Total 7,851
Dwelling Units
2 dwelling units per acre and less 3,980
3-4 dwelling units per acre 1,100
6-12 dwelling units per acre 539
Mixed -use residential 7.420
Total 13,039
Population
2 dwelling units per acre and less 5,573
3-4 dwelling units per acre 1,430
6-12 dwelling units per acre 1,000
Mixed -use residential 9.747
Total 17,751
Source: Stanley R. Hoffman Associates, Inc.
The Planning Center
102
TABLE 7-7
TOWN OF TRUCKEE GENERAL PLAN
NO PROJECT ALTERNATIVE
PROJECTED NON-RESIDENTIAL DEVELOPMENT
Buildout
Acres
Commercial/retail 80
High volume/discount retail 0
Commercial/office 12
Industrial 22
Motel 10
Resort hotel 0
Bed and breakfast 2
Public, institutional, other 138
Total 264
Square Feet
Commercial/retail 700,443
High volume/discount retail 0
Commercial/office 101,739
Industrial 195,097
Motel 113,400
Resort hotel 0
Bed and breakfast 31,500
Public, institutional, other 1.203.430
Total 2,345,609
Employment
Commercial/retail 2,783
High volume/discount retail 0
Commercial/office 679
Industrial 724
Motel 63
Resort hotel 0
Bed and breakfast 17
Public, institutional, other 1,102
Total 5,368
Source: Stanley R. Hoffman Associates, Inc.
The Planning Center
103
TABLE 7-8
TOWN OF TRUCKEE GENERAL PLAN
NO PROJECT ALTERNATIVE
PROJECTED RECURRING REVENUES AND COSTS
(In Constant 1994 - 1995 Dollars)
Percent of Total
Buildout at Buildout
Recurring Revenues
Property tax $3,976,003 45.6%
Real property transfer tax 99,776 1.1%
Sales and use tax 1,411,872 16.2%
Transient occupancy tax 577,000 6.6%
Franchise fees 115,691 1.3%
State gasoline tax 1,126,655 12.9%
Motor vehicle license fees 674,847 7.7%
Special Service Area revenue 445,986 5.1%
Fines 219,793 2.5%
Licenses and fees 22,687 0.3%
Other revenues 15,054 0.2%
Interest 41,577 0.5%
Revenue Subtotal $8,726,942 100.0%
Revenue adjustment component $423,709
Total Revenues $9,150,651
Recurring Costs
Police protection $2,831,873 37.4%
Animal control 266,612 3.5%
Public works administration 116,679 1.5%
Streets maintenance 994,591 13.1%
Snow removal 1,467,368 19.4%
Planning 309,517 4.1%
Contribution to reserves 457,533 6.0%
General government overhead 1,133.337 15.0%
Total Costs $7,577,511 100.0%
Net Recurring Surplus $1,573,140
Revenue/Cost Ratio 1.21
Source: Stanley R. Hoffman Associates, Inc.
Town of Truckee, Estimated Actual Budget, 1994 -1995
104
TABLE 7-9
TOWN OF TRUCKEE GENERAL PLAN
COMPARISON OF 1995 AND ALTERNATIVES: 2015
ESTIMATED AND PROJECTED RESIDENTIAL DEVELOPMENT
GENERAL PLAN ALTERNATIVES
Estimated
1995
Draft High VolumeA!
General Discount Low No
Plan Retail Growth Project
Acres
2 dwelling units per acre 3,622 6,952 6,952 6,952 3,622
3-4 dwelling units per acre 292 331 331 331 292
6-12 dwelling units per acre 67 190 190 190 67
Mixed -use residential 1,941 3,008 3.008 3.008 3.870
Total 5,923 10,481 10,481 10,481 7,851
Dwelling Units
2 dwelling units per acre an 3,980 4,218 4,218 4,218 3,980
3-4 dwelling units per acre 1,100 1,252 1,252 1,252 1,100
6-12 dwelling units per acre 539 1,514 1,514 1,514 539
Mixed -use residential 3,420 6.287 6.287 6.287 7.420
Total 9,039 13,271 13,271 13,271 13,039
Population
2 dwelling units per acre an 5,573 5,472 5,472 5,472 5,573
3-4 dwelling units per acre 1,430 1,622 1,622 1,622 1,430
6-12 dwelling units per acre 1,000 1,972 1,972 1,972 1,000
Mixed -use residential x,788 8.187 8.187 8.187 9.747
Total 11,791 17,253 17,253 17,253 17,751
Notes: 1. Land uses for the No Project alternative are for buildout
Source: Stanley R. Hoffman Associates, Inc.
The Planning Center
105
TABLE 7-10
TOWN OF TRUCKEE GENERAL PLAN
COMPARISON OF 1995 AND ALTERNATIVES: 2015
ESTIMATED AND PROJECTED NON-RESIDENTIAL DEVELOPMENT
GENERAL PLAN ALTERNATIVES
Draft High Volume/
Estimated General Discount Low ! No
1995 Plan Retail Growth Project
Acres
Commercial/retail 78 143 143 143 80
High volume/discount retail 0 0 18 0 0
Commercial/office 11 34 34 34 12
Industrial 21 97 97 97 22
Motel 10 17 17 17 10
Resort hotel 0 0 0 0 0
Bed and breakfast 2 2 2 2 2
Public, institutional, other 138 152 152 152 138
Total 259 446 464 446 264
Square Feet
Commercial/retail 676,048 1,245,919 1,245,919 1,245,919 700,443
High volume/discount retail 0 0 160,000 0 0
Commercial/office 95,871 293,971 293,971 293,971 101,739
Industrial 180,097 846,047 846,047 846,047 195,097
Motel 113,400 194,400 194,400 194,400 113,400
Resort hotel 0 0 0 0 0
Bed and breakfast 31,500 46,500 46,500 46,500 31,500
Public, institutional, other 1.203.430 1.323.650 1.323.650 1.323.650 1.203.430
Total 2,300,346 3,950,487 4,110,487 3,950,487 2,345,609
Employment
Commercial/retail 2,697 3,298 3,298 3,298 2,783
High volume/discount retail 0 0 396 0 0
Commercial/office 641 1,638 1,638 1,638 679
Industrial 705 1,620 1,620 1,620 724
Motel 63 108 108 108 63
Resort hotel 0 0 0 0 0
Bed and breakfast 17 25 25 25 17
Public, institutional, other 1.102 1.421 1.421 1.421 1.102
Total 5,225 8,109 8,505 8,109 5,368
Notes: 1. Land uses for the No Project alternative are for buildout
Source: Stanley R. Hoffman Associates, Inc.
The Planning Center
106
TABLE 7-11
TOWN OF TRUCKEE GENERAL PLAN
COMPARISON OF 1995 AND ALTERNATIVES AT BUILDOUT
ESTIMATED AND PROJECTED RESIDENTIAL DEVELOPMENT
GENERAL PLAN ALTERNATIVES
Estimated
1995
Draft High Volume4
General Discount Low No
Plan Retail ; Growth j Project
Acres
2 dwelling units per acre 3,622 9,878 9,878 9,904 3,622
3-4 dwelling units per acre 292 426 426 426 292
6-12 dwelling units per acre 67 251 251 278 67
Mixed -use residential 1.941 3.870 3.870 3.870 3,870
Total 5,923 14,425 14,425 14,478 7,851
Dwelling Units
2 dwelling units per acre an 3,980 5,530 5,530 5,160 3,980
3-4 dwelling units per acre 1,100 1,610 1,610 1,610 1,100
6-12 dwelling units per acre 539 2,010 2,010 2,220 539
Mixed -use residential 1420 8.470 8.470 8.085 7,420
Total 9,039 17,620 17,620 17,075 13,039
Population
2 dwelling units per acre an 5,573 7,030 7,030 6,560 5,573
3-4 dwelling units per acre 1,430 2,050 2,050 2,050 1,430
6-12 dwelling units per acre 1,000 2,570 2,570 2,840 1,000
Mixed -use residential 3,788 10.850 10.850 10.390 9,747
Total 11,791 22,500 22,500 21,840 17,751
Source: Stanley R. Hoffman Associates, Inc.
The Planning Center
107
TABLE 7-12
TOWN OF TRUCKEE GENERAL PLAN
COMPARISON OF 1995 AND ALTERNATIVES AT BUILDOUT
ESTIMATED AND PROJECTED NON-RESIDENTIAL DEVELOPMENT
GENERAL PLAN ALTERNATIVES
Draft High Volume!
Estimated General I Discount I Low No
1995 Plan Retail Growth Project
Acres
Commercial/retail 78 359 334 313 80
High volume/discount retail 0 0 25 0 0
Commercial/office 11 97 97 78 12
Industrial 21 189 189 189 22
Motel 10 21 21 21 10
Resort hotel 0 8 8 8 0
Bed and breakfast 2 3 3 3 2
Public, institutional, other 13$ 231 231 231 $
Total 259 908 908 843 264
Square Feet
Commercial/retail 676,048 3,129,950 2,909,950 2,726,800 700,443
High volume/discount retail 0 0 220,000 0 0
Commercial/office 95,871 841,550 841,550 681,700 101,739
Industrial 180,097 1,647,000 1,647,000 1,647,000 195,097
Motel 113,400 236,250 236,250 236,250 113,400
Resort hotel 0 150,000 150,000 150,000 0
Bed and breakfast 31,500 56,250 56,250 56,250 31,500
Public, institutional, other 1.203.430 2.012.000 2.012.000 2.012.000 1.203.430
Total 2,300,346 8,073,000 8,073,000 7,510,000 2,345,609
Employment
Commercial/retail 2,697 6,008 5,592 5,367 2,783
High volume/discount retail 0 0 545 0 0
Commercial/office 641 2,751 2,751 2,241 679
Industrial 705 2,080 2,080 2,080 724
Motel 63 181 181 181 63
Resort hotel 0 271 271 271 0
Bed and breakfast 17 29 29 29 17
Public, institutional, other 1.102 2.160 2.160 2.160 1.102
Total 5,225 13,480 13,609 12,330 5,368
Source: Stanley R. Hoffman Associates, Inc.
The Planning Center
108
TABLE 7-13
TOWN OF TRUCKEE GENERAL PLAN
COMPARISON OF ADJUSTED BASE YEAR AND ALTERNATIVES: 2015
ESTIMATED AND PROJECTED RECURRING REVENUES AND COSTS
(In Constant 1994 -1995 Dollars)
Recurring Revenues
Property tax
Real property transfer tax
Sales and use tax
Transient occupancy tax
Franchise fees
State gasoline tax
Motor vehicle license fees
Special Service Area revenue
Fines
Licenses
Other revenues
Interest
Revenue Subtotal
Revenue adjustment component
Total Revenues
Recurring Costs
Police protection
Animal control
Public works administration
Streets maintenance
Snow removal
Planning
Contribution to reserves
General government overhead
Total Costs
Net Recurring (Deficit)/Surplus
Revenue/Cost Ratio
Adjusted
Base Year
1995
$2,270,800
55,000
1,397,000
577,000
101,000
573,288
443,648
309,170
146,000
15,070
10,000
220.000
$6,117,976
$478,709
$6,596,685
$1,881,100
177,100
96,300
806,100
1,225,850
411,200
1,185,600
997.100
$6,780,349
($183,665)
0.97
Source: Stanley R. Hoffman Associates, Inc.
Town of Truckee, Estimated Actual Budget, 1994 - 1995
Draft
General
Plan
GENERAL PLAN ALTERNATIVES
High Volume/
Discount Low
Retail Growth
$4,097,707 $4,136,799
98,179 98,601
2,042,871 2,462,391
788,398 788,398
117,749 117,749
1,098,371 1,098,543
655,930 655,930
453,921 453,921
213,632 213,632
22,051 22,051
14,632 14,632
45.972 48.171
$9,649,414 $10,110,819
$423,709 $423,709
$10,073,123 $10,534,528
$2,752,491 $2,752,491
259,139 259,139
113,976 114,003
972,088 972,312
1,432,832 1,433,176
300,841 300,841
503,656 526,726
1.114.140 1.118.302
$7,449,162 $7,476,989
$2,623,961 $3,057,539
109
1.35 1.41
$4,097,707
98,179
2,042,871
788,398
117,749
1,098,371
655,930
453,921
213,632
22,051
14,632
45.972
$9,649,414
$423,709
$10,073,123
$2,752,491
259,139
113,976
972,088
1,432,832
300,841
503,656
1.114.140
$7,449,162
$2,623,961
1.35
No
Project
$3,976,003
99,776
1,411,872
577,000
115,691
1,126,655
674,847
445,986
219,793
22,687
15,054
41.577
$8,726,942
$423,709
$9,150,651
$2,831,873
266,612
116,679
994,591
1,467,368
309,517
457,533
1.133.337
$7,577,511
$1,573,140
1.21
TABLE 7-14
TOWN OF TRUCKEE GENERAL PLAN
COMPARISON OF ADJUSTED BASE YEAR AND ALTERNATIVES AT BUILDOUT
ESTIMATED AND PROJECTED RECURRING REVENUES AND COSTS
(In Constant 1994 -1995 Dollars)
GENERAL PLAN ALTERNATIVES
Recurring Revenues
Property tax
Real property transfer tax
Sales and use tax
Transient occupancy tax
Franchise fees
State gasoline tax
Motor vehicle license fees
Special Service Area revenue
Fines
Licenses
Other revenues
Interest
Revenue Subtotal
Revenue adjustment component
Total Revenues
Recurring Costs
Police protection
Animal control
Public works administration
Streets maintenance
Snow removal
Planning
Contribution to reserves
General government overhead
Total Costs
Net Recurring (Deficit)/Surplus
Revenue/Cost Ratio
Adjusted
Base Year
1995
General
Plan
Draft High Volume/
Discount
Retail
Low
Growth
$2,270,800 $6,008,091 $6,008,091 $5,697,950
55,000 136,218 136,218 130,224
1,397,000 5,098,666 5,336,926 4,478,218
577,000 1,504,941 1,504,941 1,504,941
101,000 156,336 156,336 151,501
573,288 1,361,384 1,361,026 1,333,029
443,648 855,412 855,412 830,327
309,170 602,674 602,674 584,033
146,000 278,602 278,602 270,432
15,070 28,757 28,757 27,914
10,000 19,082 19,082 18,523
220.000 76.833 77.972 71.936
$6,117,976 $16,126,996 $16,366,037 $15,099,027
$478,709 $423,709 $423,709 $423,709
$6,596,685 $16,550,705 $16,789,746 $15,522,736
$1,881,100 $3,589,581 $3,589,581 $3,484,315
177,100 337,948 337,948 328,038
96,300 137,794 137,738 135,642
806,100 1,180,955 1,180,489 1,163,041
1,225,850 1,726,535 1,725,820 1,699,041
411,200 392,333 392,333 380,828
1,185,600 827,535 839,487 776,137
997.100 1.440.847 1.442.731 1.401.163
$6,780,349 $9,633,530 $9,646,129 $9,368,204
($183,665) $6,917,175 $7,143,618 $6,154,531
0.97 1.72 1.74
Source: Stanley R. Hoffman Associates, Inc.
Town of Truckee, Estimated Actual Budget, 1994 - 1995
110
1.66
No
Project
$3,976,003
99,776
1,411,872
577,000
115,691
1,126,655
674,847
445,986
219,793
22,687
15,054
41.577
$8,726,942
$423,709
$9,150,651
$2,831,873
266,612
116,679
994,591
1,467,368
309,517
457,533
1.133.337
$7,577,511
$1,573,140
1.21
APPENDIX A
LAND USE AND MARKET FACTORS
111
TABLE A-1
TRUCKEE GENERAL PLAN
LAND USE AND MARKET FACTORS
RESIDENTIAL
(In Constant 1994 -1995 Dollars)
FACTOR
EXPLANATION
Resource conservation/open space
0.01 Dwelling units per gross acre
$165,000 Secured valuation per unit
1.00 Population per unit'
Residential cluster (RC -10). National Forest RC -10 and open space recreation
0.10 Dwelling units per gross acre
$165,000 Secured valuation per unit
1.27 Population per unit
Development reserve overlay
0.02 Dwelling units per gross acre
$165,000 Secured valuation per unit
1.50 Population per unit
Residential cluster (RC -5)
0.20 Dwelling units per gross acre
$165,000 Secured valuation per unit
1.27 Population per unit
Residential (0.5 du/acre)
0.50 Dwelling units per gross acre
$165,000 Secured valuation per unit
1.27 Population per unit
Residential (0.5 - 1.0 du/acre and 1.0 du/acre)
0.99 Dwelling units per gross acre
$165,000 Secured valuation per unit
1.26 Population per unit
Residential (1.0 - 2.0 du/acre)
2.00 Dwelling units per gross acre
$165,000 Secured valuation per unit
1.27 Population per unit
Residential (3.0 du/acre)
2.98 Dwelling units per gross acre
$165,000 Secured valuation per unit
1.25 Population per unit
Residential (3.0 - 4.0 du/acre)
4.01 Dwelling units per gross acre
$165,000 Secured valuation per unit
1.28 Population per unit
Residential high density (6.0 - 12.0 du/acre)
8.01 Dwelling units per gross acre
$65,000 Secured valuation per unit
1.28 Population per unit
112
TABLE A-1
(continued)
FACTOR EXPLANATION
PC -Tahoe Donner
1.81 Dwelling units per gross acre
$186,000 Secured valuation per unit
1.28 Population per unit
PC -1 (Teichert property)
0.29 Dwelling units per gross acre
$65,000 Secured valuation per unit
2.80 Population per unit
PC -2 (Hopkins property)
0.73 Dwelling units per gross acre
$165,000 Secured valuation per unit
1.30 Population per unit
PSA (Downtown Study Area) - residential
3.86 Dwelling units per gross acre
$65,000 Secured valuation per unit
1.26 Population per unit
SSA (Special Study Area) - residential
0.60 Dwelling units per gross acre
$65,000 Secured valuation per unit
0.00 Population per unit
Mixed use - residential/commercial
0.50 Dwelling units per gross acre
$65,000 Secured valuation per unit
1.27 Population per unit
Note: 1. The population per unit represents an average of population divided by total housing units,
and reflects the large number of seasonal units in Truckee. A larger percentage of
occupied housing units would result in a higher population per unit factor.
Source: Stanley R. Hoffman Associates, Inc.
The Planning Center
TABLE A-2
TRUCKEE GENERAL PLAN
LAND USE AND MARKET FACTORS
NON-RESIDENTIAL
(In Constant 1994 -1995 Dollars)
FACTOR EXPLANATION
Public
0.01 Floor area ratio
$0 Secured valuation per building square foot
$0 Unsecured valuation per building square foot
413 Square feet per employee
Public. hospital/office
0.20 Floor area ratio
$0 Secured valuation per building square foot
$0 Unsecured valuation per building square foot
417 Square feet per employee
Industrial
0.20 Floor area ratio
$75 Secured valuation per building square foot
$20 Unsecured valuation per building square foot
$10 Taxable sales per square foot
792 Square feet per employee
National Forest - public
0.20 Floor area ratio
$0 Secured valuation per building square foot
$0 Unsecured valuation per building square foot
11,590 Square feet per employee
Commercial/retail
0.20 Floor area ratio
$120 Secured valuation per building square foot
$25 Unsecured valuation per building square foot
$135 Taxable sales per square foot
534 Square feet per employee
Commercial/office
0.12 Floor area ratio
$120 Secured valuation per building square foot
$25 Unsecured valuation per building square foot
300 Square feet per employee
High volume/discount retail
0.20 Floor area ratio
$120 Secured valuation per building square foot
$25 Unsecured valuation per building square foot
$230 Taxable sales per square foot
404 Square feet per employee
114
TABLE A-2
(continued)
FACTOR EXPLANATION
PC -Tahoe Dormer commercial/retail
0.20 Floor area ratio
$120 Secured valuation per building square foot
$25 Unsecured valuation per building square foot
$135 Taxable sales per square foot
244 Square feet per employee
PC -Tahoe Donner commercial/office
0.12 Floor area ratio
$120 Secured valuation per building square foot
$25 Unsecured valuation per building square foot
200 Square feet per employee
PC -1 (Teichert) commercial/retail
0.02 Floor area ratio
$120 Secured valuation per building square foot
$25 Unsecured valuation per building square foot
$135 Taxable sales per square foot
545 Square feet per employee
PC -1 (Teichert) commercial/office
0.12 Floor area ratio
$120 Secured valuation per building square foot
$25 Unsecured valuation per building square foot
375 Square feet per employee
PC -2 (Hopkins) commercial/retail
0.01 Floor area ratio
$120 Secured valuation per building square foot
$25 Unsecured valuation per building square foot
$135 Taxable sales per square foot
524 Square feet per employee
PC -2 (Hopkins) commercial/office
0.12 Floor area ratio
$120 Secured valuation per building square foot
$25 Unsecured valuation per building square foot
324 Square feet per employee
DSA (Downtown Study Area) commercial/retail
0.06 Floor area ratio
$120 Secured valuation per building square foot
$25 Unsecured valuation per building square foot
$135 Taxable sales per square foot
527 Square feet per employee
DSA (Downtown Study Area) commercial/office
0.12 Floor area ratio
$120 Secured valuation per building square foot
$25 Unsecured valuation per building square foot
320 Square feet per employee
115
TABLE A-2
(continued)
FACTOR I EXPLANATION
SSA (Special Study Area) commercial/retail
0.20 Floor area ratio
$120 Secured valuation per building square foot
$25 Unsecured valuation per building square foot
$135 Taxable sales per square foot
550 Square feet per employee
SSA (Special Study Area) commercial/office
0.12 Floor area ratio
$120 Secured valuation per building square foot
$25 Unsecured valuation per building square foot
325 Square feet per employee
Motel
$65 Room rate
65% Occupancy rate
0.25 Employees per room
$60,000 Secured value per room
$10,000 Unsecured value per room
25% Taxable sales as a percent of room receipts
450 Square feet per room
25 Rooms per acre
Resort hotel
$100 Room rate
75% Occupancy rate
1.40 Employees per room
$100,000 Secured value per room
$10,000 Unsecured value per room
100% Taxable sales as a percent of room receipts
750 Square feet per room
25 Rooms per acre
Bed and breakfast
$90 Room rate
60% Occupancy rate
0.40 Employees per room
$100,000 Secured value per room
$10,000 Unsecured value per room
50% Taxable sales as a percent of room receipts
750 Square feet per room
25 Rooms per acre
Source: Stanley R. Hoffman Associates, Inc.
The Planning Center
116
APPENDIX B
FISCAL FACTORS
117
APPENDIX B
FISCAL FACTORS
This appendix presents the revenue and cost factors used to prepare the fiscal impact
analysis for the Truckee Draft General Plan, the High Volume/Discount Retail Alternative,
the Low Growth Alternative and the No Project Alternative. These factors are based on
the 1994-1995 Town of Truckee Operating Budget and staff interviews.
The Town of Truckee was incorporated on March 23, 1993 and provides a number of
services, including police protection and animal control; public works maintenance;
planning and building; and citywide functions, including city council, city manager, city
clerk, finance and non depar'cmental costs. Police protection is provided on a contract
basis by the Nevada County Sheriff Department.
The California Department of Finance (DOF) 1995 population and housing unit estimates
and the consultant's employment estimates for Truckee are used as presented in Part 2
of this report. These estimates are:
Population 11,791
Housing Units 9,039
Employment 5,225
The revenue and cost factors are shown on a per unit basis. Revenue and cost
information is from the 1994-1995 Town Operating Budget of August 4, 1994 and
information obtained during interviews with Town staff conducted in March 1994.
B.1 Revenue Factors
Table B-1 presents the revenue factors for the fiscal impact analysis. Factors are
estimated for all recurring revenues that will be generated by new development occurring
within the Town. Revenues include property tax, sales and use tax, franchise fees,
revenue from other agencies, license revenues, fines and violations, revenue from
property, special revenues, other revenues and interest. Truckee does not currently have
a business license tax.
Revenues are projected against different bases, depending upon the nature of the
revenue source. Generally, per capita factors have been developed for revenues from
other agencies, fines, licenses, and miscellaneous revenues, while development -based
or land use factors have been developed for property tax, sales tax, property transfer tax,
and transient occupancy tax. Revenues from engineering services and building
inspection are not projected as they are assumed to be collected as offsetting fees and
charges for current services and have no net impact on the Town's fiscal balance.
Factors for revenues projected on a per capita or per housing unit basis are developed
by dividing current revenues by current population or current housing unit estimates.
118
TABLE B-1
TOWN OF TRUCKEE GENERAL PLAN
REVENUE FACTORS
(In Constant 1994 -1995 Dollars)
FACTOR
EXPLANATION
General
11,791 Truckee total population - January 1, 1995 DOF estimate
9,039 Truckee total housing units - January 1, 1995 DOF estimate
5,225 Truckee employment - SRHA 1995 estimate
Local Taxes
1.0000%
0.1685%
0.0550%
0.80
0.10
0.05
1.0%
14.00%
10.0%
Franchise fees
$8.87 Franchise revenue per housing unit
Revenue from other agencies
$6.23 State gasoline tax: 2105 - per capita (for street maintenance)
$7.30 State gasoline tax: 2106 - per capita (for street maintenance)
$8.61 State gasoline tax: 2107 - per capita (for street maintenance)
$4,456 State gasoline tax: 2107 Snow - per lane mile (for snow removal)
$38.02 Motor vehicle in -lieu fees per capita
Licenses
Property tax rate, total
Property tax allocation, Truckee general fund
Property transfer tax rate
Consideration rate (for transfer tax)
Annual residential turnover rate
Annual commercial turnover rate
Sales tax as a percent of taxable sales
Use tax as a percent of sales tax
Transient occupancy tax
$1.21 Animal licenses, penalties, and shelter fees per capita
$0.07 Animal control for Sierra County - per capita
Fines and violations
Fines and violations per capita
$12.38
Special revenues
$23.27
Town Special Service Area revenues per parcel (for street
maintenance and snow removal).
Other revenues
$0.85 Miscellaneous income per capita
Revenue Adjustment Component
$478,709 Revenue adjustment component - base year
$423,709 Revenue adjustment component - projections
Interest
0.5% Interest factor - General Fund
Source: Stanley R. Hoffman Associates, Inc.
Town of Truckee, Estimated Actual Budget, 1994 - 1995
119
Property tax. The one percent property tax is levied on the taxable value of secured and
unsecured property. Property tax proceeds from development in the Town are allocated
among several jurisdictions, including the Town, Nevada County, school districts and fire
protection districts. Based on information from Town staff indicating that the property tax
allocations range from 20 to 24 percent in the Tahoe Donner subdivision and average
13.6 percent for the remainder of the Town, the average property tax allocation for the
Town of Truckee is estimated at 16.8 percent of the one percent basic property tax levy.
This estimate was derived as a weighted average of the 3,500 units in the Tahoe Donner
subdivision at an allocation of 22 percent and the remaining 5,539 units in Truckee at a
rate of 13.6 percent.
Residential valuations are projected on a per unit basis. As was shown in Table A-1 of
Appendix A, average valuations for new residential units in the Town of Truckee are
estimated at $165,000 per unit for single family detached and $65,000 per unit for multi-
family attached. These valuation are based on local real estate information.
Non-residential secured valuation in Truckee is estimated at $120.00 per building square
foot for commercial retail and commercial office (based on California Board of
Equalization, Commercial Building Costs), $00.00 per building square foot for public,
$75.00 per building square foot for industrial/R&D (based on CFA report), $60,000 per
room for commercial hotels/motels (based on CFA report) and $100,000 per room for
resort hotels and bed and breakfasts. Unsecured valuation is estimated at $20.00 per
building square foot for all non-residential uses except hotel/motels/bed and breakfasts,
which are estimated at $10,000 unsecured valuation per room.
Property transfer tax. The property transfer tax of $1.10 per $1,000 of transferred value
is levied on the sale of real property and is divided equally between the County of
Nevada and the Town of Truckee. Residential property is estimated to transfer once
every ten years, while commercial and industrial property is estimated to transfer once
every twenty years. Eighty percent of the total valuation is assumed to be subject to the
transfer tax to account for the equity in transferred properties.
Sales tax. Sales tax revenues are projected based on estimated taxable sales associated
with future development. Taxable retail sales are estimated for commercial retail,
industrial and hotel/motel/bed and breakfast land uses on annual sales per square foot
basis. Based on current information from the Town staff, taxable sales per square foot
factors are estimated at $135.00 for commercial retail and $10.00 per square foot for
industrial and R&D uses. Taxable sales for motels are estimated at 25 percent of room
receipts, 100 percent of room receipts for resort hotels and 50 percent of room receipts
for bed and breakfast facilities.
Use tax. Use tax is levied upon the sale of goods where the sales tax is not collectible
at the point of sale. For the fiscal projections, use tax is estimated based on the
allocation of use tax for the last three quarters of 1993. Use tax is allocated from both
120
a statewide pool and a countywide pool to individual cities. The use tax factor is the ratio
of the sum of statewide and countywide allocations divided by the gross direct sales tax
allocation. This factor is then applied to the projected sales tax to account for future
allocations of use tax.
As shown in the following table, the use tax factor is calculated at 14.21 percent of
taxable transactions for 1993. A use tax factor of 14.00 percent is used in the fiscal
analysis, and is applied as a percentage of the Town's total sales tax.
CALCULATION OF USE TAX FACTOR: TOWN OF TRUCKEE
2nd quarter 3rd quarter 4th quarter
1993 1993 1993
Total
(A) Statewide Allocation $2,563 $2,564 $2,432 $7,559
(B) Countywide Allocation $44,621 $44,621 $36,636 $125,878
(C) Total Allocation (A+B) $47,184 $47,185 $39,068 $133,437
(D) Gross Direct Sales Tax $309,424 $309,424 $319,914 $938,762
(E) Use Tax Factor(C/D) 0.1525 0.1525 0.1221 0.1421
(F) Total Sales and Use Tax (C+D) $356,608 $356,609 $358,982 $1,072,199
Source: California State Board of Equalization, May 1994.
Transient occupancy tax. A transient occupancy tax is levied on the gross room receipts
of hotels, motels and bed and breakfasts within the Town boundaries at a rate of 10.0
percent. Based on budget information and a lodging survey, an average rate of $65 per
night and an occupancy rate of 65 percent is assumed for motels, while bed and
breakfast rates are assumed at $90 per night and 60 percent occupancy. Hotel
occupancy and room rates for any new resort lodging developments are assumed at 75
percent occupancy and $100 per night.
Franchise fees. The Town receives franchise fees from Westar, a cable television
provider, based on a percent of Westar's gross revenues. Franchise fees are projected
at $8.87 per housing unit, based on revenues of $80,200 and housing units of 9,039.
Revenues from other agencies. The Town of Truckee receives a number of revenues
from State subventions. As a newly incorporated Town, Truckee's population base is
determined as three times the number of registered voters at the time of incorporation.
This population is used for the first five full fiscal years plus an initial partial fiscal year
if the effective date of incorporation is other than July 1, as is the case with Truckee.
Thus, the population basis for Truckee for the first 5 fiscal years (through fiscal year
1997-1998) is 15,282 (three times the number of registered voters of 5,094). Beginning
with fiscal year 1998-1999, the Town's actual population estimate will be used for State
subventions. Thus, the following revenues from the Budget have been adjusted using the
current population estimate of 11,791.
121
Motor vehicle in -lieu tax. Motor vehicle in -lieu taxes are distributed to cities and
counties on a per capita basis and are estimated at $38.02 per capita.
State gasoline tax. State gasoline tax revenues are estimated for the allocation of
revenue received by cities under Sections 2105, 2106 and 2107 of the Streets and
Highways Code. State gasoline tax is estimated at $6.23 per capita for Section
2105, as of January 1, 1994, based on the full $0.09 per gallon. Section 2106
revenue is estimated at $7.30 per capita; and Section 2107 revenue is estimated
at $8.61 per capita. Under Section 2107, Truckee will also receive reimbursement
for one half of snow removal costs. The revenues for snow removal are received
the year following the removal of snow and are estimated at $4,456 per lane mile
or one half the cost of snow removal. Revenues generated by state gasoline
taxes are placed in the Street Fund.
Parcel charges. Snow removal charges are collected on a parcel basis. Town staff
estimates 12,000 parcels in Truckee. Based on the current housing unit estimate of
9,039, a factor of 1.47 parcels per housing unit is derived. This factor can be applied to
future projections of housing units to derive the number of parcels. Parcel charges do
not include those for Tahoe Donner and are estimated at $23.27 per parcel.
Animal licenses and fees. Animal services revenues are estimated at $1.21 per capita.
In addition, revenues of $0.07 per capita are estimated for animal control services
provided to Sierra County.
Fines and violations. The revenues for fines and violations for the 1994-1995 budget year
are an estimated $12.38 per capita. Revenues for fines and violations include moving
and parking violations.
Miscellaneous revenues. Miscellaneous income is estimated at $6,450, or $0.85 per
capita.
Interest income factor. An interest factor is projected based on the ratio of estimated
1994-1995 interest earnings divided by all other general fund revenues. An annualized
interest income factor of 0.6 percent is estimated, based on interest revenues of $49,900
and all other general fund revenues estimated at $8,431,531. Based on discussion with
Town staff, an interest factor of 0.5 percent is assumed for the fiscal analysis of the
general plan alternatives.
122
B. 2. Cost Factors
Costs are projected for general government, police protection, animal control, community
development, public works, street operations and maintenance, snow removal and
contribution to reserves.
As shown in Table B-2, cost factors are shown on a per unit basis and are based on cost
information from the 1994-1995 Town Budget and interviews with Town staff.
Police protection. Police protection is provided by contract with the Nevada County
Sheriff Department. In 1993, the Sheriffs Department Truckee Sub -Station handled 9,647
activity calls and 2,523 crime reports. The Truckee Sub -Station currently has 22 sworn
officers, or 2.1 sworn officers per 1,000 population based on the Town's population
estimate of 11,791. The per capita police cost is estimated at $159.54, based on the
estimated police department budget of $1,881,100 for the fiscal year 1994-1995. It
should be noted the Truckee per capita cost for police protection is very similar to the
statewide city average cost of $158.25 per capita, based on the State Controller's report,
Financial Transactions Concerning Cities of California, Annual Report 1991-92.
Animal control. Animal control costs for the fiscal year 1994-1995 are estimated at
$177,100, or $15.02 per capita.
Public works. The Public Works department consists of a street maintenance division, and
a snow removal division. Based on staff interviews and the Town budget, the public works
department services are categorized as follows:
Engineering. Engineering costs include administrative operation services costs
that are not included in the other public works cost categories. Public Works
Engineering costs are estimated at $96,300 for the fiscal year 1994-1995, or 4.7
percent of total street maintenance and snow removal costs.
Street maintenance. Public works street maintenance cost factor includes costs
for street maintenance and street lighting. Based on Truckee street mileage and
the Town budget, a street maintenance cost of $5,807 per lane mile is estimated.
Snow removal. Total snow removal costs are estimated at $1,225,850 for fiscal
year 1994-1995, or an estimated cost of $8,913 per lane mile for snow removal.
Traffic signals. Based on discussion with public works staff, it was determined that
the cost for operations and maintenance of traffic signals was not included in street
maintenance costs. A separate cost for operations and maintenance of traffic
signals is included in this fiscal analysis. Based on the consultants experience
elsewhere and concurrence of the local staff, traffic signal costs are estimated at
$3,500 per signalized intersection.
123
TABLE B-2
TOWN OF TRUCKEE GENERAL PLAN
COST FACTORS
(In Constant 1994 -1995 Dollars)
FACTOR
EXPLANATION
General
11,791
9,039
5,225
Police protection
$159.54
Animal control
$15.02
Public works
$5,807
$8,913
$3,500
4.7%
Truckee total population - SRHA 1994/1995 estimate
Truckee total housing units - SRHA 1994/1995 estimate
Truckee employment - SRHA 1994/1995 estimate
Total police (sheriffs) costs per capita
Animal control costs per capita
Street maintenance per lane mile
Street snow removal per lane mile
Operations and maintenance costs per signalized intersection
Public works engineering administration as a percent of
of total street maintenance and snow removal costs
Community Development
$17.44 Planning costs per capita (represents 50 percent of planning costs
which are non -fee supported)
Citywide costs
5.0%
17.6%
Contribution to reserves as a percent of total revenues
General government as a percent of direct department 0 & M
expenditures
Source: Stanley R. Hoffman Associates, Inc.
Town of Truckee, Estimated Actual Budget, 1994 - 1995
124
Community development. The Community Development Department consists of the
Administration Division, the Planning Division and the Building and Safety Division.
Planning. The Planning Division is responsible for both current and advanced
planning activities. The current planning activities primarily focus on the review and
processing of development proposals which are partially supported by fee
revenues generated during the approval process. The advanced planning activities
include long range community -wide planning, such as the General Plan. Based
on a net cost of $205,600 and a population of 11,791, planning costs are
estimated at $17.44 per capita. The net cost of $205,600 is based on 1994-1995
budget estimated expenditures of $411,200 and that the Town is assumed to
capture 50 percent of its per capita planning expenditures.
Contribution to reserves. The Town of Truckee projects a reserve fund of $1,800,675 for
June 30, 1996. The Town's reserve policy amount is $2,182,400. The fund includes a
general fund contingency reserve, a public safety liability reserve and a snow plowing
contingency reserve. For future projections, the contribution to reserves cost is estimated
at 5 percent of revenues.
General govemment. These costs are essentially overhead costs for the operations of
the Town of Truckee and include the following general government activities: Town
Council, Town Manager, Town Clerk, Town Attorney, Finance, and Personnel. The
Town -wide overhead rate of 17.6 percent is calculated as the ratio of general government
costs over direct line costs, based on general government costs estimated at $1,017,100
and direct line costs estimated at $5,783,250.
125
APPENDIX C
DETAILED REVENUE AND COST PROJECTIONS
126
TABLE C-1
TOWN OF TRUCKEE GENERAL PLAN
DRAFT GENERAL PLAN
DETAILED REVENUE AND COST PROJECTIONS
(In Constant 1994 -1995 Dollars)
RECURRING REVENUES j 2015 Buildout
PROPERTY TAX
Residential $3,523,596 $4,661,216
Non-residential 574,111 1,346,875
REAL PROPERTY TRANSFER TAX
Residential 92,011 121,717
Non-residential 6,168 14,500
SALES AND USE TAX
Commercial sales tax 1,791,992 4,472,514
Use tax 250,879 626,152
TRANSIENT OCCUPANCY TAX 788,398 1,504,941
FRANCHISES FEES 117,749 156,336
REVENUE FROM OTHER AGENCIES
State gasoline tax: 2105 107,479 140,166
State gasoline tax: 2106 125,904 164,194
State gasoline tax: 2107 148,572 193,756
State gasoline tax: 2107 snow 716,416 863,268
Motor vehicle license fees 655,930 855,412
LICENSES
Animal licenses 20,807 27,135
Animal control for Sierra County 1,244 1,622
FINES AND VIOLATIONS 213,632 278,602
TOWN SPECIAL SERVICE AREA 453,921 602,674
MISCELLANEOUS REVENUE 14,632 19,082
INTEREST 45.972 76.833
REVENUE SUBTOTAL $9,649,414 $16,126,996
REVENUE ADJUSTMENT COMPONENT $423,709 $423,709
TOTAL REVENUES $10,073,123 $16,550,705
RECURRING COSTS
POLICE DEPARTMENT $2,752,491 $3,589,581
PUBLIC WORKS DEPARTMENT
Engineering administration 113,976 137,794
Street maintenance 933,588 1,124,955
Signalized intersections 38,500 56,000
Snow removal 1,432,832 1,726,535
PLANNING 300,841 392,333
ANIMAL CONTROL 259,139 337,948
CITYWIDE COSTS
Contribution to reserves 503,656 827,535
General government overhead 1.114.140 1.440.847
TOTAL COSTS $7,449,162 $9,633,530
Source: Stanley R. Hoffman Associates, Inc.
Town of Truckee, Estimated Actual Budget, 1994 - 1995
127
TABLE C-2
TOWN OF TRUCKEE GENERAL PLAN
HIGH VOLUME/DISCOUNT RETAIL ALTERNATIVE
DETAILED REVENUE AND COST PROJECTIONS
(In Constant 1994 - 1995 Dollars)
RECURRING REVENUES 2015 Buildout
PROPERTY TAX
Residential $3,523,596 $4,661,216
Non-residential 613,203 1,346,875
REAL PROPERTY TRANSFER TAX
Residential 92,011 121,717
Non-residential 6,590 14,500
SALES AND USE TAX
Commercial sales tax
Use tax
TRANSIENT OCCUPANCY TAX
FRANCHISES FEES
REVENUE FROM OTHER AGENCIES
State gasoline tax: 2105 107,479
State gasoline tax: 2106 125,904
State gasoline tax: 2107 148,572
State gasoline tax: 2107 snow 716,588
Motor vehicle license fees 655,930
LICENSES
Animal licenses 20,807
Animal control for Sierra County 1,244
FINES AND VIOLATIONS 213,632
TOWN SPECIAL SERVICE AREA 453,921
MISCELLANEOUS REVENUE 14,632
INTEREST 48.171
REVENUE SUBTOTAL $10,110,819
REVENUE ADJUSTMENT COMPONENT $423,709
TOTAL REVENUES $10,534,528
2,159, 992
302,399
788,398
117,749
RECURRING COSTS
POLICE DEPARTMENT
PUBLIC WORKS DEPARTMENT
Engineering administration
Street maintenance
Signalized intersections
Snow removal
PLANNING
ANIMAL CONTROL
CITYWIDE COSTS
Contribution to reserves
General government overhead
TOTAL COSTS
$2,752,491
114,003
933,812
1,433,176
300,841
259,139
526,726
1.118.302
$7,476,989
Source: Stanley R. Hoffman Associates, Inc.
Town of Truckee, Estimated Actual Budget, 1994 - 1995
4,681,514
655,412
1,504,941
156,336
140,166
164,194
193,756
862,910
855,412
27,135
1,622
278,602
602,674
19,082
77.972
$16,366,037
$423,709
$16,789,746
$3,589,581
137,738
1,124,489
1,725,820
392,333
337,948
839,487
1.442.731
$9,646,129
128
TABLE C-3
TOWN OF TRUCKEE GENERAL PLAN
LOW GROWTH ALTERNATIVE
DETAILED REVENUE AND COST PROJECTIONS
(In Constant 1994 -1995 Dollars)
RECURRING REVENUES 2015 Buildout
PROPERTY TAX
Residential $3,523,596 $4,488,629
Non-residential 574,111 1,209,320
REAL PROPERTY TRANSFER TAX
Residential 92,011 117,211
Non-residential 6,168 13,014
SALES AND USE TAX
Commercial sales tax 1,791,992 3,928,262
Use tax 250,879 549,957
TRANSIENT OCCUPANCY TAX 788,398 1,504,941
FRANCHISES FEES
REVENUE FROM OTHER AGENCIES
State gasoline tax: 2105
State gasoline tax: 2106
State gasoline tax: 2107
State gasoline tax: 2107 snow
Motor vehicle license fees
LICENSES
Animal licenses
Animal control for Sierra County
FINES AND VIOLATIONS
TOWN SPECIAL SERVICE AREA
MISCELLANEOUS REVENUE
117,749 151,501
107,479 136,055
125,904 159,379
148,572 188,074
716,416 849,520
655,930 830,327
20,807 26,339
1,244 1,574
213,632 270,432
453,921 584,033
14,632 18,523
)NTEREST 45.972 71.936
REVENUE SUBTOTAL $9,649,414 $15,099,027
REVENUE ADJUSTMENT COMPONENT $423,709 $423,709
TOTAL REVENUES $10,073,123 $15,522,736
RECURRING COSTS
POLICE DEPARTMENT $2,752,491 $3,484,315
PUBLIC WORKS DEPARTMENT
Engineering administration 113,976 135,642
Street maintenance 933,588 1,107,041
Signalized intersections 38,500 56,000
Snow removal 1,432,832 1,699,041
PLANNING 300,841 380,828
ANIMAL CONTROL
CITYWIDE COSTS
Contribution to reserves
General government overhead
TOTAL COSTS
259,139 328,038
503,656 776,137
1.114.140 1.401.163
$7,449,162 $9,368,204
Source: Stanley R. Hoffman Associates, Inc.
Town of Truckee, Estimated Actual Budget, 1994 - 1995
129
TABLE C-4
TOWN OF TRUCKEE GENERAL PLAN
NO PROJECT ALTERNATIVE
DETAILED REVENUE AND COST PROJECTIONS
(In Constant 1994 -1995 Dollars)
RECURRING REVENUES Buildout
PROPERTY TAX
Residential $3,711,271
Non-residential 264,731
REAL PROPERTY TRANSFER TAX
Residential 96,912
Non-residential 2,865
SALES AND USE TAX
Commercial sales tax
Use tax
TRANSIENT OCCUPANCY TAX
FRANCHISES FEES
REVENUE FROM OTHER AGENCIES
1,238,484
173,388
577,000
115,691
State gasoline tax: 2105 110,579
State gasoline tax: 2106 129,535
State gasoline tax: 2107 152,857
State gasoline tax: 2107 snow 733,684
Motor vehicle license fees 674,847
LICENSES
Animal licenses 21,407
Animal control for Sierra County 1,280
FINES AND VIOLATIONS 219,793
TOWN SPECIAL SERVICE AREA 445,986
MISCELLANEOUS REVENUE 15,054
INTEREST 41.577
REVENUE SUBTOTAL $8,726,942
REVENUE ADJUSTMENT COMPONENT $423,709
TOTAL REVENUES $9,150,651
RECURRING COSTS
POLICE DEPARTMENT $2,831,873
PUBLIC WORKS DEPARTMENT
Engineering administration 116,679
Street maintenance 956,091
Signalized intersections 38,500
Snow removal 1,467,368
PLANNING 309,517
ANIMAL CONTROL 266,612
CITYWIDE COSTS
Contribution to reserves
General government overhead
TOTAL COSTS
Source: Stanley R. Hoffman Associates, Inc.
Town of Truckee, Estimated Actual Budget, 1994 - 1995
130
457,533
1.133.337
$7,577,511
APPENDIX D
PERSONS AND AGENCIES CONTACTED
131
APPENDIX D
PERSONS AND AGENCIES CONTACTED
COMMUNITY DEVELOPMENT DEPARTMENT
Tony Lashbrook, Director
Elizabeth Eddins, Town Planner
Town Hall
11570 Donner Pass Road
Truckee, CA 96161
916/582-7700; Fax 916/582-7710
TOWN MANAGER
Steve Wright
Town Hall
11570 Donner Pass Road
Truckee, CA 96161
916/582-7700; Fax 916/582-7710
FINANCE DEPARTMENT
Jill Brown, Finance Director
Town Hall
P.O. Box 2884
Truckee, CA 96160
916/582-7700; Fax 916/582-7710
SHERIFF'S DEPARTMENT
Jack Bayer, Captain
Eastern Nevada County Building
10879 Donner Pass Road
Truckee, CA 96161
916/582-7838; Fax 916/587-5041
ANIMAL CONTROL
Tony Lashbrook, Director
Community Development Department
Town Hall
11570 Donner Pass Road
Truckee, CA 96161
916/582-7700; Fax 916/582-7710
132
PUBLIC WORKS DEPARTMENT
John Landers, Director
Clay Castleberry, Interim Director
Town Hall
11570 Donner Pass Road
Truckee, CA 96160
916/582-7700; Fax 916/582-7710
TRUCKEE FIRE PROTECTION DISTRICT
Jim Osburn, Chief
10049 Donner Pass Road
Truckee, CA 96161
916/582-7850; Station 2: 916/582-7856
Fax 916/582-7854
TRUCKEE-DONNER RECREATION AND PARK DISTRICT
Steve Randall, General Manager
Community Center
10046 Church Street
Truckee, CA 96161
916/587-3587; Fax 916/587-0559