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17
City of Pleasanton
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CITY CLERK
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AGENDA PACKETS
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2018
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050118
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17
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4/26/2018 12:56:47 PM
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4/26/2018 11:34:25 AM
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CITY CLERK
CITY CLERK - TYPE
AGENDA REPORT
DOCUMENT DATE
5/1/2018
DESTRUCT DATE
15Y
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Nexus-Based Affordable Housing Fee Analysis for Rental Housing <br /> Draft Report 02/26/18 <br /> that only those buyers or renters of new housing units relocating from outside Pleasanton should <br /> be counted in the impact analysis—would require assuming that the homes left by those <br /> households relocating within Pleasanton would be demolished or left vacant in perpetuity. This <br /> would only be the case were the City experiencing a significant loss of population and housing <br /> inventory, as has occurred, for instance, in Detroit. Pleasanton has not experienced such <br /> declines. <br /> The Consumer Expenditure Survey from the United States Bureau of Labor Statistics provides <br /> data for households at a variety of income levels, detailing the amounts that typical households <br /> spend on things like "Food at Home,""Apparel and Services," and "Vehicle Maintenance and <br /> Repairs." Interestingly, household expenditures by category are not uniformly proportional to <br /> household income levels. For example, households earning around $76,560 (adequate to rent a <br /> studio apartment) spend roughly 10.9 percent of their income on food and drink (at home and <br /> eating out), while households earning $143,520 who can afford to rent a three-bedroom <br /> apartment spend only about 9.5 percent of their income on food and drink. Because of these <br /> and other differences in proportionate spending, the expenditure profile varies at different <br /> income levels. <br /> The renter household's typical expenditures were converted to the number of jobs created by <br /> their spending. The first step in this process is to determine how much of an industry's gross <br /> receipts are used to pay wages and employee compensation. EPS relied on data from the <br /> Economic Census,2 which provides employment, gross sales, and payroll data by industry for <br /> Alameda County. In certain instances, Alameda County data was not available for every <br /> Economic Census industry—in those cases, EPS relied on statewide Economic Census data for <br /> that industry. <br /> To link the Economic Census data and the Consumer Expenditure Survey data, EPS made <br /> determinations as to the industries involved with expenditures in various categories. For <br /> example, purchases in the Consumer Expenditure Survey's"Food at Home"category would likely <br /> involve the Economic Census's"Food & Beverage Stores" industry, where gross receipts were <br /> more than eight times the employees' wages. By contrast, purchases in the Consumer <br /> Expenditure Survey's"Entertainment Fees and Admissions"category were attributed to the <br /> Economic Census'"Arts, Entertainment, and Recreation" industry, where gross receipts are only <br /> about three times the employees' wages. Where more than one Economic Census category was <br /> attributable to a Consumer Expenditure Survey category, EPS estimated the proportion of <br /> expenditures associated with each Economic Census category. <br /> After determining the amount of the household's expenditures that were used for employee <br /> wages, EPS estimated the number of employees those aggregate wages represent. EPS <br /> calculated the number of workers supported by that spending using the average wage per <br /> worker (also from the 2013 Economic Census). These wages ranged from a low of roughly <br /> $11,900 per year for workers in the personal laundry services industry to a high of more than <br /> $134,700 average salary for data processing, hosting, and related services industry. <br /> 2 Note that the Consumer Expenditure Survey data is based on information current as of 2014. The <br /> latest data available for the Economic Census was published in 2013. Because the data sources were <br /> from different years, EPS converted all numbers to 2015 dollars using the Consumer Price Index (CPI) <br /> for the San Francisco Metropolitan Statistical Area (MSA) from the Bureau of Labor Statistics. <br /> Economic&Planning Systems, Inc. 14 P:\ISIOOOs\151111Pka a rtonFee\Repo\4flordabk_Xouslog\151111report022,1arental.doa <br />
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