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5.10 SOCIOECONOMICS
<br /> (assumed to be 70 percent of$8.043 million in annual construction payroll spent locally).
<br /> Assuming an average monthly direct construction employment of 249,the employment
<br /> multiplier associated with the construction phase of the project is approximately
<br /> 1.4 (i.e., [249+ 29 + 61]/249). This project construction phase employment multiplier is based
<br /> on a Type SAM model.
<br /> Indirect and induced income impacts were estimated at$1,110,040 and$2,105,910,
<br /> respectively. Assuming a total annual local construction expenditure (payroll,materials,and
<br /> supplies) of about$6.63 million ($5.63 million in payroll+ $1 million in materials and
<br /> supplies),the project construction phase income multiplier based on a Type SAM model is
<br /> approximately 1.4 (i.e., [$7,628,000 +$1,110,040 + $2,105,910]/$7,628,000).
<br /> Assuming that annual local construction expenditures are only$1 million instead of
<br /> $2 million and that annual local construction workforce expenditures are the same
<br /> ($5.63 million),the indirect and induced employment estimates within San Joaquin County
<br /> are 15 and 57 jobs,respectively. Based on the same average construction employment of 249,
<br /> the construction phase employment multiplier is approximately 1.3.
<br /> Indirect and induced income impacts based on the total annual construction expenditure of
<br /> $6.63 million($5.63 million in payroll + $1 million in materials and supplies) were estimated
<br /> at$555,020 and$1,978,540,respectively. Based on these estimates,the construction phase
<br /> income multiplier was estimated at approximately 1.4.
<br /> 5.10.3.3.5 Fiscal Impacts
<br /> LEC initial capital cost is estimated to$298 million; of this,materials and supplies are
<br /> estimated at approximately$275 million. The estimated value of materials and supplies that
<br /> will be purchased locally (within San Joaquin County) is between$2 million and$4 million.
<br /> The effect on fiscal resources during construction will be from sales taxes realized on
<br /> equipment and materials purchased in the County and from sales taxes from expenditures.
<br /> The sales tax rate in the City of Lodi,where the purchases are likely to be made,is
<br /> 7.75 percent(as of July 1,2008). Of this, 6.25 percent goes to the state;0.25 percent goes to
<br /> the County;1 percent goes to the place of sale;and 0.25 percent goes to the special districts
<br /> (BOE,2008). The total local sales tax expected to be generated annually during construction
<br /> is between$77,500 and$155,000 (i.e., 7.75 percent of local sales). Assuming all local sales are
<br /> made in Lodi,the maximum sales tax the City could receive is between$12,500 and$25,000,
<br /> annually. The total sales tax to be generated during the 24-month construction phase of the
<br /> project is between$155,000 and$310,000. Of this amount,the total portion going to the
<br /> county,the place of sale and the special district is between$30,000 and$60,000 while that
<br /> going specifically to the place of sale and the special district is between$25,000 and$50,000.
<br /> The remainder (between$125,000 and$250,000) is the portion that goes to the State.
<br /> 3 Annual local portion of construction payroll=($26.8million/(24 months/12 months))x 60%=$8,040,000.The disposable
<br /> portion of the annual local construction payroll=$8,040,000 x 70%=$5,628,000.
<br /> SAC/371322/082330013(LEC_5.10_SOCIOECONOMICS.DOC) 5.10-17
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