|
R 2 11, 111 11 1 ( I I \ ( I I I I 111 11 1 J I
<br />I , � I , , c , � I I
<br />Table 2
<br />Proposed Annual Budget for First Five (5) Years of the
<br />San Bernardino Valley Enterprise Zone
<br />Expense Category
<br />18"Year I
<br />2nd Year
<br />3rd Year
<br />4th Year
<br />Sth Year
<br />Environmental Impact Report
<br />$250,000
<br />_
<br />Marketing
<br />$100,000
<br />$52,000
<br />$52,000
<br />$52,000
<br />$52,000
<br />Website Development/Maintenance
<br />$18,000
<br />$8,000
<br />$8,000
<br />$8,000
<br />$8,000
<br />CID Development
<br />$10,000
<br />Reproduction (Brochures, CID)
<br />$8,000
<br />-
<br />$7,000
<br />$7,000
<br />$7,000
<br />$7,000
<br />Trade Shows
<br />$7,000
<br />$7,000
<br />$7,000
<br />$7,000
<br />$7,000
<br />Trade Show Booth
<br />$7,000
<br />Advertisement Placement
<br />$30,000
<br />$30,000
<br />$30,000
<br />$30,000
<br />$30,000
<br />Graphic Artist (Brochure Design)
<br />$20,000
<br />Zone Manager
<br />$30,000
<br />$30,000
<br />$30,000
<br />$30,000
<br />$30,000
<br />Insurance
<br />$3,000
<br />$3,250
<br />$3,500
<br />$4,000
<br />$4,250
<br />Auditing
<br />$10,000
<br />$10,000
<br />$10,000
<br />$10,000
<br />$10,000
<br />Professional Membersh��
<br />$5,000
<br />$5,000
<br />$5,000
<br />$6,000
<br />$6,000
<br />Travel
<br />7,000
<br />$7,000
<br />$7,000
<br />$8,000
<br />$8,000
<br />Counsel
<br />$5,000
<br />$5,000
<br />$5,000
<br />5,000
<br />Professional Services
<br />_$5,000
<br />$40,000
<br />$30,000
<br />$20,000
<br />0,000
<br />$20,000
<br />Total
<br />$450,000
<br />$142,250 li
<br />$132,500
<br />$135,000
<br />$135,200
<br />Zone Management: One of the challenges that faced the AMEZ was management. To
<br />overcome that challenge, a paid Zone Manager position, to be situated in the County of San
<br />Bernardino is proposed to be funded through the zone budget in the amount of $30,000 per
<br />year, which represents one-third of the salary of the employee in San Bernardino County. This
<br />amount is capped at $30,000 and hours spent on zone management will be logged and subject
<br />to review, with excess funds rolled over to the next year's budget should the cap not be met. In
<br />addition to cash contributions on an annual basis (see Table 3), each jurisdiction will be asked
<br />to make in-kind contributions to include such things as a Zone Coordinator position as well as
<br />incentives offered separately from state incentives. These items are explained more fully in the
<br />MOU as attached to the Resolution in Exhibit B.
<br />Utilization: Unfortunately, the State does not have a mechanism in place to determine exactly
<br />what the financial impact of the enterprise zone program is on the State and the benefits to the
<br />businesses or jurisdictions where they are located, making a cost benefit analysis nearly
<br />impossible.
<br />Colton was successful in retrieving a list of its businesses in the AMEZ who took advantage of
<br />the employee tax credits within the past two years and conducted an informal utilization survey.
<br />Of the fourteen businesses, none could report definitive hard dollar savings. Three reported
<br />significant savings by utilizing employee salary reimbursements and sales and use tax credits
<br />\1,, In' " , 11 " � \I,, I , I \11 I'll I IN)` I / N10I �11[ �,JJl d ,
<br />
|