Economic and Fiscal Impacts Generated by Apple in Cupertino – Current Facilities and Apple Campus 2

Prepared for: Apple Inc.
May 2013

TABLE OF CONTENTS Page I. Introduction A. Apple’s Current Facilities in Cupertino and the Apple Campus 2 Building Program B. Growth Scenario Evaluated in the Fiscal and Economic Report II. Executive Summary A. Full-Time Jobs B. Employee Income C. Apple’s Support of Other Local Businesses D. Recurring Annual Fiscal Impacts on the City of Cupertino E. Recurring Annual Property Tax Revenues to Local Public Agencies ..................... 1 1 3 4 4 5 5 6 6

F. Recurring Annual Sales Tax Revenues to the Santa Clara Valley Transportation Authority (VTA) ................................................................................................................7 G. Construction Jobs H. Construction-Related “One Time” Revenues to the City of Cupertino I. Construction-Related “One-Time” Revenues to the VTA 7 7 8 8 10 10 13 17 19 19 20 23 30 30 31 32

J. Apple Investment in Public Improvements & Community Benefits III. Findings and Conclusions A. Recurring Annual Economic Impacts B. Recurring Annual Fiscal Impacts on the City of Cupertino C. Construction Period Impacts D. Local Property Tax Revenues to Service Districts E. Sales Tax Revenues to the Santa Clara Valley Transportation Authority (VTA) F. Economic Impacts on the Cities of Santa Clara and Sunnyvale IV. Methodology and Assumptions V. Indirect and Induced Impacts and the IMPLAN Model A. IMPLAN Model Description B. Application of the IMPLAN Model to Estimate Job and Employee Compensation Impacts VI. Limiting Conditions

Supporting Tables Table 1: Table 2: Table 3: Table 4: Table 5: Table 6: Table 7: Table 8: Table 9: Table 10: Table 11: Table 12: Table 13: Table 14: Table 14a: Table 14b: Table 14c: Table 14d: Table 15: Table 15a: Table 16: Table 17: Table 18: Summary Base and Projected Cupertino-based Apple Employment Summary Base and Projected Cupertino-based Apple Employee Salaries Place of Residence of Cupertino- based Apple Employees Base and Projected Cupertino-based Apple Employment Base and Projected Cupertino-based Apple Employee Salaries Economic Impacts – Cupertino Economic Impacts – Sunnyvale Economic Impacts – Santa Clara Economic Impacts – Cupertino, Sunnyvale, and Santa Clara Economic Impacts – Santa Clara County Summary Estimated Annual Fiscal Impact on the City of Cupertino Generated by Apple Base and Projected Cupertino-based Apple Employee Resident Equivalents City of Cupertino Demographic Data City of Cupertino Revenue Source Assumptions 2010/11, 2012/13 Annual City of Cupertino Revenues Generated by Apple Assessed Property Values and Property Tax Revenues - Cupertino Properties Owned or Leased by Apple Annual Sales and Use Tax Revenue to City of Cupertino Generated by Apple Annual Sales Taxes to City of Cupertino Generated by the Purchases of Apple Employee Residents City of Cupertino Service Expenditure Assumptions 2010/11, 2012/13 Annual City of Cupertino Service Expenditures Generated by Apple Estimated Apple Campus 2 Construction-Related Government Fee Payments Summary Annual Sales and Use Tax Revenue to the Santa Clara Valley Transportation Authority Generated by Apple Sales in Cupertino Annual Sales and Use Tax Revenue to the Santa Clara Valley Transportation Authority Generated by Apple Sales in Cupertino

Appendix Tables A-1: A-2: A-3: A-4a: A-4b: A-5: A-6: A-7: A-8: Summary of City of Cupertino General Fund Revenue Sources FY 2011/12, FY 2012/13 Summary of City of Cupertino General Fund Budget Expenditures FY 2011/12, FY 2012/13 Cupertino Real Estate Owned or Leased by Apple in 2010, 2012 Taxable Retail Sales Import and Export 2010 Taxable Retail Sales Import and Export 2012 Taxable Retail Sales Generated by 2010 Cupertino Facilities Employees Taxable Retail Sales Generated by 2012 Cupertino Facilities Employees Taxable Retail Sales Generated by Future Cupertino Facilities with Apple Campus 2 Employees Annual Sales Tax Revenues Generated by Cupertino-based Apple Employees; Cities of Cupertino, Sunnyvale, and Santa Clara

I.

INTRODUCTION

The following report has been prepared by Keyser Marston Associates, Inc. (KMA) for the City of Cupertino under contract with Apple Inc. The report addresses the economic and fiscal impacts generated by Apple’s presence in Cupertino, both currently and upon the completion of Apple Campus 2. The principal objectives of the analysis are to evaluate the following:      The on-going economic impact and benefits of Apple to the City of Cupertino; The ongoing economic impacts and benefits to the City of Santa Clara, City of Sunnyvale, and the broader region of Santa Clara County; Apple’s recurring annual fiscal impacts on the City of Cupertino; The construction-related impacts of Apple Campus 2 on Santa Clara County; and The construction-related tax and fee revenues to be received by the City of Cupertino and other local public agencies from the construction of Apple Campus 2.

A. Apple’s Current Facilities in Cupertino and the Apple Campus 2 Building Program Apple Inc.’s worldwide corporate headquarters facility, which is known as the Infinite Loop Campus, is located at 1 Infinite Loop in the City of Cupertino. The 856,000 square foot campus houses approximately 3,000 employees. In order to accommodate its 13,000 additional employees based in Cupertino, Apple has had to purchase or lease more than 2 million square feet of additional space in Cupertino and in nearby cities. Apple has been assembling properties for the purpose of building a second campus over several years, including the 100-acre property that formerly served as the headquarters of Hewlett Packard. The aggregate development site for Apple Campus 2 approximates 176 acres and is shown on the following map.

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Tantau Avenue .Apple Cupertino Campus E. De Anza Boulevard N. Homestead Avenue N. Wolfe Road PROPOSED APPLE CAMPUS 2 SITE Int ers tat e2 80 Stevens Creek Boulevard N. Wolfe Road Stevens Creek Boulevard EXISTING APPLE INFINITE LOOP CAMPUS PROPOSED APPLE CAMPUS 2 N. Homestead Avenue E.

Since the timing of that Phase is uncertain. The capacity of Phase 1 will be 13.400. For purposes of this analysis. which would add about 300.Apple presented its most recently updated plans for Apple Campus 2 in April 2013. it has not been included in this analysis.000 sf 300.820. Keyser Marston Associates.420.000 sf 120. permitting extensive on-site open space. Growth Scenario Evaluated in the Fiscal and Economic Report Apple has experienced extraordinary success and growth by any standard. Inc. a more conservative growth rate of 10% is being used. The footprint of the new building program will be significantly smaller. bringing the total capacity of Apple Campus 2 to 14.000 square feet and accommodate up to 1. Apple is among the largest publicly traded companies in the world by market capitalization and is one of the largest technology companies in the world by revenue and profit.000 sf 3.000 employees. The number of Apple employees based in Cupertino has increased at an average annual rate of 18% over the past five years. A breakdown of the planned improvements for Phase 1.000 sf 100.8 million square feet.200 employees.400 employees will be hired between June 2013 and the completion of Apple Campus 2 in 2016.000 sf 80. excluding the parking structures. In order to build Apple Campus 2. buildings to house research and development and a central plant. The company’s net sales increased more than six-fold between 2006 and 2012. The building will be four-stories in height and total 2. with an average annual growth rate in excess of 36%.000 sf There is a Phase 2 building program. is as follows: Phase 1 Apple Campus 2 Building Area Main Building Auditorium Fitness Center Research Facilities Central Plant Total GBA 2. from $24. however.65 million square feet of office buildings and related improvements on the property will be demolished. Additional Apple Campus 2 Phase 1 facilities include an auditorium. fitness center.docx Page 3 .6 billion to $156.6 billion. parking structures. the existing 2. 7. With a 10% annual growth rate.200 employees. The campus’ centerpiece will be an iconic circular office building that will accommodate up to 12. \\Sf-fs2\wp\16\16043\001\001-007. resulting in a projected total employee count of 23. B.000 employees.

Apple is a cornerstone of the Silicon Valley economy and of the fiscal resources of the City of Cupertino.100.100 additional jobs in Santa Clara County are generated indirectly through expenditures by Apple and Apple employees.6 billion.100 13.000 employees currently based in the Cupertino area. and annual purchases from local Silicon Valley-based businesses of $4. The completion of Apple Campus 2 is vital to the region for a number of reasons. Indirect and induced impacts support an additional 420 jobs in the City in 2012. it is expected that 7. 16. 2) enable Apple to add an estimated 7. accounting for approximately 40% of the City’s job base.400 Total Employment 28.000 full-time employees based in the Cupertino area. with approximately 16.000 employees make it Cupertino’s largest single employer.100 Apple’s 16.400 23.000 7.400 new Apple employees will be based in the Cupertino area. The total number of Santa Clara Countywide jobs supported by Apple is expected to be about 41. and 4) enhance tax revenues to the City of Cupertino and other cities and public agencies.400 new high-quality jobs. EXECUTIVE SUMMARY With net annual sales in excess of $156 billion. Inc.000 41. With the completion of Apple Campus 2.000 jobs in Cupertino alone. A.400 23.400 Total Employment 16. Full-Time Jobs Apple is the second largest technology employer in Silicon Valley. Employment Impacts on Santa Clara County 2012 Cupertino Area Facilities Net New with Apple Campus 2 Total with Apple Campus 2 Direct Employment 16.000 Keyser Marston Associates. 3) increase revenues of local businesses and support additional job growth throughout the region.000 7.II. Apple is expected to support more than 24.600 24.400 7.docx Page 4 . \\Sf-fs2\wp\16\16043\001\001-007. It will: 1) enable Apple to continue to remain in Cupertino. Employment Impacts on the City of Cupertino 2012 Cupertino Area Facilities Net New with Apple Campus 2 Total with Apple Campus 2 Direct Employment 16. By the time Apple Campus 2 is available for occupancy in 2016. Approximately 12.

B. Employee Income Apple’s Cupertino-based employees collectively earned $2.0 billion 1 in base salary in 2012. Upon the completion of Apple Campus 2, employee base salary income is expected to exceed $2.9 billion. Company purchases and employee spending of their income on local goods and services create additional jobs, income and expenditures. Including indirect and induced impacts, Apple supported approximately $2.7 billion of annual employee income and expenditure potential in Santa Clara County in 2012, which will increase to $3.9 billion with the completion of Apple Campus 2.
Direct Salary Employees Residing in Santa Clara 4 County $1.3 $0.5 $1.8 Indirect and Induced Salary Impacts in Santa Clara County $1.4 $0.7 $2.1

Payroll and Employee Compensation Impacts 2 ($ Billions) 2012 Cupertino Area Facilities Net New with Apple Campus 2 Total with Apple Campus 2

Direct Salary All Cupertinobased 3 Employees $2.0 $0.9 $2.9

Total Salary Impacts in Santa Clara County $2.7 $1.2 $3.9

C. Apple’s Support of Other Local Businesses Apple’s network of links to businesses throughout Silicon Valley is vast and dense. While the activity at the campus focuses on the research and design of new products as well as corporate management, Apple’s Cupertino-based operations purchase a tremendous volume of component parts that are used in its products. As a consequence, Apple has an unusually high multiplier effect on the regional economy.  Apple’s importance to the regional economy is illustrated by the consideration that in FY 2012, the company made purchases of $4.6 billion from over 700 businesses located within the three cities of Cupertino, Santa Clara and Sunnyvale alone. In the past two years local purchases and the number of vendors increased at an average annual rate of 36% and 26%, respectively. Including the multiplier effect of its purchases on other local businesses down the supply chain, Apple generated about $5.9 billion of gross sales for non-Apple businesses in the

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Actual salary data for Apple employees is confidential information. Given this consideration, the salary data for software engineers published by the Occupational Employment Survey for Santa Clara County has been used as a conservative proxy for purposes of this assignment. Direct salaries are presented in Table 5, and indirect and induced salary impacts in Tables 6 to 10. Reflects the estimate of base salary income of all Cupertino-based employees, including employees who live outside of Santa Clara County. Reflects the estimate of base salary income of the employees who live in Santa Clara County. Approximately 35% of Apple employees live outside of Santa Clara County.

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three cities in 2011/12. With the increased employment afforded by Apple Campus 2, local business revenues generated by Apple Campus 2 are expected at about $8.6 billion.
Revenue Impacts on Cupertino, Santa Clara, and Sunnyvale Businesses ($ Billions) 2012 Cupertino Facilities Net New with Apple Campus 2 Total with Apple Campus 2

Apple Purchases $4.6 $2.1 $6.7

Total Impact of Apple Purchases $5.9 $2.7 $8.6

D. Recurring Annual Fiscal Impacts on the City of Cupertino Apple is a critical component of the City of Cupertino’s fiscal health as Apple is the single largest taxpayer to the City of Cupertino. Apple will directly contribute $9.2 million of annual tax revenue to the City in FY 2012/13, 5 which accounts for approximately 18% of the City of Cupertino’s annual General Fund Budget. The largest components of revenues are sales taxes, property taxes, and utility user taxes. In 2012, Apple generated $6.5 million of sales/use taxes to the City, which represented 45% of all sales/use tax revenue received by the City in FY 2011/12. After taking into account the cost of providing municipal services, Apple will generate an $8.0 million net fiscal surplus to the city in FY 2012/13. With Apple Campus 2, the net annual fiscal surplus generated by Apple to Cupertino is anticipated to exceed $11 million.
Cupertino Annual Fiscal Impacts ($ Millions) 2012 Cupertino Facilities Net New with Apple Campus 2 Total with Apple Campus 2 Net Revenues $8.0 $3.2 $11.2

Revenues $9.2 $3.8 $13.0

Expenditures $1.2 $0.6 $1.8

E. Recurring Annual Property Tax Revenues to Local Public Agencies In 2012, property occupied by Apple in Cupertino generated approximately $25 million of local property tax revenue. This revenue was distributed to local public agencies, including: the City of Cupertino, local schools, the Santa Clara County Library, the Central Fire Protection District, Santa Clara County, and other local service/taxing agencies. Apple Campus 2 is anticipated to annually generate an additional $32 million of property tax revenue to local public agencies. Total recurring property tax revenues to fund local community services are expected to exceed $50 million each year.

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Excludes “one-time” revenues associated with the construction of Apple Campus 2.

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Annual Property Taxes Generated by Apple Facilities in Cupertino ($ Millions) 2012 Cupertino Facilities Net New with Apple Campus 2 Total with Apple Campus 2

Property Taxes to All Local Agencies $24.8 $31.7 $56.5

City of Cupertino Property Tax $1.2 $1.7 $2.9

Net Taxes to Other Jurisdictions $23.6 $30.0 $53.6

F. Recurring Annual Sales Tax Revenues to the Santa Clara Valley Transportation Authority (VTA) Apple’s Cupertino facilities generated $1.3 billion of taxable sales in 2012, which yielded over $14 million of annual sales tax revenue to the VTA. The VTA tax revenue results from a series of voter-approved initiatives that levy a 1.125% tax on taxable sales. With the completion of Apple Campus 2, it is estimated that Apple will annually generate $15.4 million of tax revenue to the VTA.
Sales Tax to VTA ($ Millions) 2012 Cupertino Facilities Net New with Apple Campus 2 Total with Apple Campus 2

Annual Recurring Revenue $14.3 $1.1 $15.4

G. Construction Jobs The construction of Apple Campus 2 will generate a tremendous number of high quality, high wage construction jobs. Approximately 9,200 full-time jobs will be created over the 3-year construction period. Including indirect and induced impacts, Apple Campus 2 will generate 12,600 full-time jobs in Santa Clara County over the construction period.
Jobs Generated by Apple Campus 2 Construction Construction Jobs during 3-year Period Direct Employment 9,200 Total County-Wide Employment 12,600

H. Construction-Related “One Time” Revenues to the City of Cupertino The construction of Apple Campus 2 will generate an unprecedented amount of “one-time” revenues to the City of Cupertino in the form of construction taxes and fees, totaling approximately $38.1 million. It is estimated that materials purchased for the construction of Apple Campus 2 will yield $13.9 million of sales/use tax revenue to Cupertino’s General Fund. This revenue source is contingent upon Apple and Cupertino negotiating a mutually acceptable Development Agreement, under
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which Apple would direct its contractors to designate Cupertino as the point of sale for construction materials. Additionally, Apple will pay approximately $10.6 million of “construction tax” to the City pursuant to Chapter 3.32 of the City’s municipal code. The combined total of these two sources alone is $24.5 million, which will be deposited into the City’s General Fund and available for discretionary city expenditures. For the construction of Apple Campus 2, Apple will also pay approximately $13.6 million in construction fees to fund building permit processing costs. 6
Construction Period Revenues to the City of Cupertino ($ Millions) Construction Sales/Use Tax Construction Tax Construction Fees Total Revenues

General Fund $13.9 $10.6 $24.5

Fee Revenues

$13.6 $13.6

Total Fees $13.9 $10.6 $13.6 $38.1

I.

Construction-Related “One-Time” Revenues to the VTA

The purchase of construction materials for the Construction of Apple 2 Campus will generate approximately $15.6 million of sales tax revenue to the VTA.
Construction Period Revenues to the VTA ($ Millions) Construction Sales/Use Tax $15.6

J. Apple Investment in Public Improvements & Community Benefits As part of Apple Campus 2, Apple will also fund over $66 million of public improvements to be built around the campus and in the City of Cupertino, as well as other community benefits. These include $50.2 million of roadway, traffic, intersection, landscape and utility improvements, $10 million of bicycle and pedestrian facilities, $3.7 million in park land, and a $2.5 million dollar contribution for affordable housing. 7 In addition to these one-time capital investments, Apple will annually spend approximately $35 million on a transportation demand management program, to implement the company’s alternative commute program.

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Additional fee revenues will accrue to entities other than the City of Cupertino, such as the school districts, and the State of California. The $2.5 million dollar contribution is in addition to the $2.5 million BMR construction fee included in the previous section.

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5 $3.2 $10. Inc. \\Sf-fs2\wp\16\16043\001\001-007.0 $2.7 Annual Investment $35.4 $35.0 Keyser Marston Associates.Public Improvements and Community Benefits to be Funded by Apple ($ Millions) Roadway.docx Page 9 .0 $66. Utility and Public Safety Improvements Bicycle and Pedestrian Facilities Additional Affordable Housing Contribution Park Land Traffic Demand Management Program Total One-Time Investments $50.

with 64% living in communities within Santa Clara County.III.000 Direct Impacts Total Impacts 23. Inc.docx 16.000 30. Key concentrations in the Bay 8 Approximately 15. it is expected that 23.000 25.000 5.000 20. Keyser Marston Associates.000 15.000 Page 10 .720 28.000 7.100  Employment Impacts on Santa Clara County 45. Employment Impacts on Santa Clara County 2012 Cupertino Area Facilities Net New with Apple Campus 2 Total with Apple Campus 2 Direct Employment 16.000 41. Recurring Annual Economic Impacts 1.000 40. with approximately 16. bringing Apple’s total County-wide impact to 28.000 full-time employees based in the Cupertino area in 2012 8.400 Apple employees will be based in Cupertino. The completion of Apple Campus 2 will enable Apple to house all of its employees within the City of Cupertino.080 50.100 jobs.130 23. By the time Apple Campus 2 is completed in 2016. FINDINGS AND CONCLUSIONS A.75 jobs are created within Santa Clara County as a result of these linkages.000 employees are located at facilities in nearby communities.100 13. The remaining 1. an additional 0.100.100 additional jobs in Santa Clara County are generated indirectly by Apple’s expenditures and the expenditures of Apple employees. which will bring the total number of County-wide jobs supported by Apple to 41. Employment Impacts  Apple is the second largest technology employer in Silicon Valley.400 Total Employment 28.000 employees are located at facilities within the City of Cupertino.000 0 2010 Facilities 2012 Facilities Future w/ Apple Campus 2 13.000 41.000 35. For every one new Apple job. \\Sf-fs2\wp\16\16043\001\001-007.400  Apple’s Cupertino-based employees reside throughout the San Francisco Bay Area.400 23.000 10. Approximately 12.

1  Payroll and Employee Compensation Impacts 10 ($ Billions) 2012 Cupertino Area Facilities Net New with Apple Campus 2 Total with Apple Campus 2 Direct Salary All Cupertinobased 11 Employees $2.9 billion. Cupertino . including employees who live outside of Santa Clara County. 2. Sunnyvale .5 $1.7 $1. San Francisco .8%.8%. The expenditures of these employees along with expenditures by Apple on goods and services generate an additional $1.docx Page 11 . with up to $1.0 billion 9 in 2012.Area include the following cities: San Jose . Reflects the estimate of base salary income of all Cupertino-based employees.8 Indirect and Induced Salary Impacts in Santa Clara County $1. Payroll Impacts  Apple’s Cupertino-based employees collectively earned $2.9 Total Salary Impacts in Santa Clara County $2. Given this consideration.0 $0.25%.14%.2 $3.3 $0. housing.8 billion accruing to employees who reside within Santa Clara County. Apple will generate $3. and entertainment. \\Sf-fs2\wp\16\16043\001\001-007. Employee compensation translates directly into investment in local communities through expenditures on retail goods.0%.3 billion earned by employees who reside within Santa Clara County. Keyser Marston Associates.9 9 10 11 12 Actual salary data for Apple employees is confidential information. and Santa Clara . Direct Salary Employees Residing in Santa Clara 12 County $1. with approximately $1. the salary data for software engineers published by the Occupational Employment Survey for Santa Clara County has been used as a conservative proxy for purposes of this assignment. Direct salaries are calculated in background Table 5. Including indirect and induced impacts.6.4 $0. services. Inc. Reflects the estimate of base salary income of the employees who live in Santa Clara County. With the completion of Apple Campus 2.9 $2.9 billion of employee compensation in Santa Clara County. Apple salaries in Cupertino are expected to approximate $2. and indirect and induced salary impacts in Tables 6 to 10.4 billion of employee compensation throughout Santa Clara County.7 $2. Approximately 35% of Apple employees live outside of Santa Clara County.

7 $1.846 Total Impact of Apple Purchases $5. in the past two years. Impacts on Local Businesses Apple’s network of links to businesses throughout Silicon Valley is vast and dense. Apple is estimated to generate about $5.719 $5.315 $1. As a consequence. With the increased employment afforded by Apple Campus 2. Inc. Santa Clara and Sunnyvale.Payroll and Employee Compensation Impacts on Santa Clara County Direct Impacts $3.6 Keyser Marston Associates.9 billion of gross sales for businesses in the three cities.279 Future w/ Apple Campus 2 3.7 $8.6 $2.014 2010 Facilities 2012 Facilities $1. Santa Clara.9 $2. on average.000 $2.docx Page 12 . Apple has an unusually high multiplier effect on the regional economy.  Apple’s importance to the regional economy is illustrated by the consideration that in FY 2012.1 $6. Including the multiplier effect of its purchases on other local businesses down the supply chain.000 $1. the company made purchases of $4.949 $2. Revenue Impacts on Cupertino. While the activity at the campus focuses on the research and design of new products as well as corporate management. Apple’s Cupertino-based operations purchase a tremendous volume of component parts that are used in its products.6 billion from over 700 businesses located within the three cities of Cupertino. \\Sf-fs2\wp\16\16043\001\001-007. local purchases increased 36%. and the number of vendors increased over 26%. local business sales revenues generated by Apple are expected to be $8.000 $0 Total Impacts $2.6 billion. and Sunnyvale Businesses ($ Billions) 2012 Cupertino Facilities Net New with Apple Campus 2 Total with Apple Campus 2  Apple Purchases $4. On an annualized basis.000 $3.000 $4.

1   B. with base earnings totaling over $236 million. 13 City of Cupertino Demographics 2012 – Business and Employment Profile. Annual Net City Fiscal Impacts  Apple generates a tremendous net annual fiscal benefit to the City of Cupertino.906.6 7.0 n/a 23. 13 The 16.000 Apple employees in 2012 account for approximately 40% of Cupertino’s job base. Apple and Apple employee purchases currently generate about $103 million of gross sales for other Cupertino businesses. Other major employers in the City are Cupertino Union School District and De Anza College.000 Apple employees lived in Cupertino in 2012. Apple is a cornerstone of Cupertino’s economy.4. Recurring Annual Fiscal Impacts on the City of Cupertino 1.5 24. with annual base earnings in excess of $159 million. Cupertino Economic Impacts 2012 Cupertino Area Facilities Total Employment Employees Residing in Cupertino Salaries of Employees Residing in Cupertino ($Ms) Other Cupertino Businesses Sales ($Ms) Net New with Apple Campus 2 Total Employment Employees Residing in Cupertino Salaries of Employees Residing in Cupertino Other Cupertino Businesses Sales Total with Apple Campus 2 Total Employment Employees Residing in Cupertino Salaries of Employees Residing in Cupertino Other Cupertino Businesses Sales Direct Impacts 16.400 621 $77. bringing Apple’s total impact on Cupertino jobs to approximately 16. With Apple Campus 2.4 n/a Total Impacts 16.600 n/a n/a $48.000 1. recurring tax revenues generated by Apple exceeded municipal service costs by approximately $8 million. Indirect and induced impacts support an additional 420 jobs in the City. Inc. the number of Apple employees residing in Cupertino is expected to total 1. \\Sf-fs2\wp\16\16043\001\001-007.4 n/a 7. With Apple Campus 2. Impacts on Cupertino  As Cupertino’s largest single employer.020 n/a n/a $151.docx Page 13 . About 1.400 1.906 $236. Keyser Marston Associates.285 $159. In 2012.420.285 of the total 16.420 n/a n/a $102. indirect/induced sales impacts in Cupertino are anticipated to total $151 million per year.

Annual City Revenues  Apple is a key source of revenue for the City of Cupertino.0 $10. Keyser Marston Associates.9) ($1. \\Sf-fs2\wp\16\16043\001\001-007.2 million of revenues to the City in 2012.2 million.1 $8.2 $12.2 $11.2 Revenues $9.8 $13.0 $11.0) Expenditures Revenues $8.8 Estimated Annual Net Fiscal Impacts on the City of Cupertino from Apple ($Ms) $14. With Apple Campus 2. 14 The largest single component of revenues generated by 14 FY 2012/13 Budget figure reflects the deduction of $15.2 million of annual net revenue to the City of Cupertino.0 $2. the net fiscal impact of Apple is anticipated to be $11. It will directly generate $9. which represents an increase of $3. Inc.2 $9.0 $8.7 million of assumed non-recurring one-time revenue amounts from Apple Campus 2.2) ($1.2 $0. representing 18% of the total annual General Fund budget of $50.0 ($0.0 ($2.0 $0.8) 2010 Facilities 2012 Facilities Future w/ Apple Campus 2 2.docx Page 14 .2 $3.0 Net $13.9 million.6 $1.0 Expenditures $1.0 $7.0 $4.0 $6.0 $3. Cupertino Annual Fiscal Impacts ($ Millions) 2012 Cupertino Facilities Net New with Apple Campus 2 Total with Apple Campus 2 Net Revenues $8.

Apple may elect (at its sole discretion) to designate Cupertino as the point of sale for Apple’s purchase of its own products for its own use.Apple is sales and use tax revenue at $6.47 $0. property tax in-lieu of MVLF at $694. and for purchases from out-of-state vendors. 16 Keyser Marston Associates.13 $3.22 $0. and the transfer of Apple own-use sales tax revenues to Cupertino.5 million.2 million.5 million in sales/use tax represents over 45% of all sales/use tax revenue received by Cupertino in FY 2011/12. The City sales tax figures presented in this report are net of the payments to Apple. Apple’s contribution of $6. as part of the entitlement process for Apple Campus 2. 16 Net New with Apple Campus 2 $0.0 Cupertino Annual Fiscal Revenues ($ Millions) Sales Taxes Property Taxes Prop Tax In-Lieu of MVLF Utility User Taxes Other Taxes Total Annual Fiscal Revenues 2012 Facilities $6. in consideration of a development agreement between Apple and Cupertino. Although the agreement is scheduled to expire in 2014 the analysis assumes it is extended into the foreseeable future.43 $13.38 $2. For purposes of this fiscal impact analysis.8 Total with Apple Campus 2 $7. As detailed in the description of Use Tax Revenues from Apple’s Own Use of Apple Products and from Out-ofState Vendor Purchases in the Methodology and Assumptions section of this report. annual City tax revenues directly generated by Apple are anticipated to approach $13. For this study.64 $0. Apple receives approximately 50% of the City’s annual share of sales tax revenues directly generated by the company. in consideration of a development agreement between Apple and Cupertino.94 $1. it has been assumed that Apple elects to designate Cupertino as the point of sale for these use tax revenues. it is assumed that Cupertino will retain 100% of these use tax revenues.48 $1.0 million. 15 followed by property taxes at $1. This growth is largely attributable to increased property taxes due to Apple’s investment in Apple Campus 2.docx Page 15 .000.  With Apple Campus 2. Inc.59 $0.72 $0.8 million of additional City tax revenue. \\Sf-fs2\wp\16\16043\001\001-007. resulting in $3.000. and utility user taxes at $466.90 $0.30 $9.17 $0. Therefore.69 $0.2 15 Under the terms of a tax sharing agreement between the City of Cupertino and Apple.90 $1. these use tax revenues are considered “old revenues” and not subject to sharing with Apple.

000 for Public Works Department costs to maintain streets and other public facilities.docx Page 16 . Given the extensive network of other companies that travel to Cupertino to conduct business with Apple. the impact estimates are conservative and understate the actual. \\Sf-fs2\wp\16\16043\001\001-007. in the amount of $452. direct annual City service costs are anticipated to increase by $546. based on service requirements specified by the Santa Clara County Sheriff’s Office.5 million in 2012 and to increase to $2. and Apple employee lunchtime expenditures. Annual City Service Costs  Apple generated approximately $1. Therefore. The second largest expense was incurred for law enforcement. 3. The largest single department expense was $454. Keyser Marston Associates. resulting in total annual City service costs approaching $1.8 million.2 million of municipal service costs to the City of Cupertino in 2012. Inc.000. These indirect revenues are estimated to total $1. With Apple Campus 2. there is a significant amount of additional room tax revenue indirectly generated by Apple that has not been included in this analysis.000. 17 sales taxes from the retail expenditures of Apple employees living in Cupertino.Composition of Annual Revenues to the City of Cupertino Generated by Apple 2012 Cupertino Future Facilities w/ Apple Campus 2  In addition to direct General Fund revenues. General Fund transfers to other City service funds were about $131.2 million per year with the completion of Apple Campus 2. Apple indirectly generates revenues to the City of Cupertino through transient occupancy taxes paid by Apple visitors who stay in Cupertino hotels and dine in local restaurants.000. full impact of Apple’s operations.  17 The transient occupancy tax revenues measured in this evaluation reflect only travel by Apple employees.

high-wage construction jobs.03 $0.13 $0.45 $0. Keyser Marston Associates.09 $1.04 $0.21 $0.66 $0.2 Net New with Apple Campus 2 $0. Approximately 9. Based on the average salary for construction workers in Santa Clara County. It is estimated that their materials costs 18 19 Expense estimates have been rounded up to the nearest hundred thousand dollars. so that the City can collect sales taxes resulting from purchases related to these contractors’ work.19 $0. construction of Apple Campus 2 will support $2. Construction Period Impacts 1.45 $0.200 on-going full-time jobs will be created over the 3-year construction period.docx Page 17 .12 $0.7 billion during the 3-year period.8 Composition of Annual City Service Cost Generated by Apple C.06 $1. Including indirect and induced jobs. 2. City Construction Sales Tax / Use Tax Revenues On the Apple Campus 2 project qualified construction contractors are those who will identify the City of Cupertino as their “point of sale”. Employment and Payroll Impacts The construction of Apple Campus 2 will generate a tremendous number of high-quality. construction payroll will total $1.08 $0. \\Sf-fs2\wp\16\16043\001\001-007. Per Apple Inc.Cupertino Annual Fiscal Expenditures ($ Millions) Public Works Law Enforcement Transfers Out Administrative Services Other Service Costs 18 Total Annual Fiscal Expenditures 2012 Facilities $0.2 billion of payroll expenditures throughout the County. Inc. the construction of Apple Campus 2 will generate approximately 12.600 jobs in the County for a 3-year period. 19 Including indirect and induced impacts.66 $0.21 $0.06 $0.6 Total with Apple Campus 2 $0.

it has been assumed that Apple elects to designate Cupertino as the point of sale for these use tax revenues.6 $14.200 $1. This revenue source is contingent on Apple and Cupertino negotiating a mutually acceptable development agreement. Apple Campus 2 Construction Government Fees ($ Millions) Construction Tax Other Government Fees Total Taxes and Fees City of Cupertino $10. For this study. as part of the entitlement process for Apple Campus 2.5 Total $10. it is assumed that Cupertino will retain 100% of these use tax revenues.5 $0. Permits and Fees to Cupertino and Other Public Agencies It is estimated that the construction of Apple Campus 2 will generate $24.9 million of sales/use tax to the City of Cupertino. these use tax revenues would be considered “old revenues” and not subject to sharing with Apple.5 million contribution to the City’s BMR program as part of its investment in public improvements and benefits.600 $2. available for general municipal services. Apple will be making an additional voluntary $2.will generate approximately $13.9 million Total County-wide Impacts 12.3 million will be used to fund Apple Campus 2’s share of the demand for new public facilities generated by new development. 20 Apple Campus 2 Construction Impacts On-going Jobs for 3 years Total Employee Payroll City Sales/Use Tax Revenues Direct Impacts 9.2 million.7 20 As detailed in the Methodology and Assumptions section of this report.2 million will be used to fund City staff costs associated with processing building permits. Inc.6 $13.7 billion $13.docx Page 18 . \\Sf-fs2\wp\16\16043\001\001-007.6 million (construction taxes) are unrestricted funds. These revenues would be directly available to the City’s General Fund. $7. Apple may elect (at its sole discretion) to designate Cupertino as the point of sale for Apple’s purchase of construction related materials.1 $24. Therefore.7 million of building permit and fee revenues.2 Other Public Agencies $0. As detailed on Table 16. 21 Keyser Marston Associates. $6. For purposes of this fiscal impact analysis. The $6. under which Apple would direct its contractors to designate Cupertino as the point of sale for construction materials.3 million includes payment of a $2. 21 and $10.2 billion 3. of which the City of Cupertino will receive $24.5 million Below Market Rate (BMR) affordable housing fee.6 $24.

Local Property Tax Revenues to Service Districts State law determines the allocation of property tax revenues to taxing agencies. the Mid-peninsula Regional Open Space District and the Bay Area Air Quality Management District. City of Cupertino (approx. or $2. it is assumed that the secured improvements of Apple Campus 2 will be assessed at $3 billion and that personal property will be valued at $0.2 $1. Santa Clara County: $5 to $6 million. With the Keyser Marston Associates. as follows:     School and college districts: $18 to $20 million.1 billion in 2012. 6%) The remaining local public agencies that receive a portion of property tax revenues include the Education Revenue Augmentation Fund.5 billion. water districts. 17% to 19%). such as Santa County Library and water districts will also receive their proportionate share of additional property tax revenues from Apple Campus 2. Fire protection district (approx. The assessed value of properties occupied by Apple in Cupertino totaled $2. For purposes of this analysis.7 million in property tax revenue every year to be funded by Apple and distributed to the aforementioned top public agencies. Fire protection district: $5 million.7 million The other local districts.8 million of property taxes allocated to local governmental agencies.D. City of Cupertino: $1. The additional assessed valuation will yield an additional $31.7 $56. the Santa Clara County Library.6 $30. resulting in a total assessed property value for Apple Campus 2 of $3. Inc. The combined valuation of currently occupied space and Apple Campus 2 is expected to total $4.0 $53.5 City of Cupertino Property Tax $1. 15% to 17%).9 Net Taxes to Other Jurisdictions $23. Annual Property Taxes Generated by Apple Facilities in Cupertino ($ Millions) 2012 Cupertino Facilities Net New with Apple Campus 2 Total with Apple Campus 2 Property Taxes to All Local Agencies $24.5 billion.6 E.7 $2. The VTA tax revenue results from a series of voter-approved initiatives that levy a 1.8 $31. Santa Clara County and County retirement fund (approx. which generated $24. 56% to 64%). \\Sf-fs2\wp\16\16043\001\001-007. Sales Tax Revenues to the Santa Clara Valley Transportation Authority (VTA) Apples’ Cupertino facilities generated $1.docx Page 19 .3 billion of taxable sales in 2012. The leading recipients of annual property tax revenues generated by Apple consist of the following:     School and college districts (approx.8 billion.7 billion more than the value of properties currently occupied by Apple. which yielded over $14 million of annual sales tax revenue to the Santa Clara VTA.125% tax on taxable sales.

240 jobs with employee compensation totaling approximately $1.2 billion of employee compensation that was then spent on housing and retail purchases in the City of Santa Clara and beyond. As shown below.410 Apple employees with $175 million of income will reside in Santa Clara. assuming Apple and Cupertino negotiate a mutually acceptable development agreement.3 billion of sales revenue to Santa Clara businesses. The indirect/induced sales supported approximately 1. Approximately 1. 2) providing highquality jobs for Santa Clara and Sunnyvale residents who then spend their incomes in these cities.6 One-Time Construction Revenue F.7 billion of sales generated indirectly by Apple. and 3) generating additional sales. the economic benefits to Santa Clara are anticipated to increase. The indirect/induced sales supported approximately 8. which will support approximately 12.1 $ 15. Inc. Apple vendor purchases combined with employee purchases generated approximately $5.3 $1. it is estimated that 1.080 jobs in    Keyser Marston Associates.300 jobs in the City of Santa Clara and generated $1.4 $15. Santa Clara businesses will benefit from up to $7. The economic benefits generated by Apple to Sunnyvale are also significant.296 Apple employees lived in Sunnyvale in 2012 and their combined salaries exceeded $160 million. \\Sf-fs2\wp\16\16043\001\001-007. As shown below.4 million of tax revenue to the VTA. Economic Impacts on the Cities of Santa Clara and Sunnyvale  Apple benefits the cities of Santa Clara and Sunnyvale in several ways: 1) purchasing goods and services from Santa Clara and Sunnyvale businesses. employment. This is a phenomenal indirect/induced impact for a single business to have on sales revenues of businesses in a neighboring community.docx Page 20 . Sales Tax to VTA ($ Millions) 2012 Cupertino Facilities Net New with Apple Campus 2 Total with Apple Campus 2 Annual Recurring Revenue $14. The purchase of materials for the construction of Apple Campus 2 will yield approximately $15.6 million of sales tax revenue to the VTA. and payroll for Santa Clara and Sunnyvale businesses as indirect and induced impacts ripple throughout the economy. Apple vendor purchases combined with employee purchases generated approximately $667 million of sales revenue to Sunnyvale businesses. approximately 816 Apple employees lived in Santa Clara in 2012 and their combined salaries exceeded $100 million. With the completion of Apple Campus 2.7 billion.completion of Apple Campus 2. it is estimated that Apple will annually generate $15.

3 billion $1.330 $101 million $5.800 $1.000 $1.400 $1.000 4.590 $245 million $979 million $205 million Indirect Economic Benefits Generated by Apple Employment 20.7 billion City of Sunnyvale 1.000 $0 2010 Facilities 2012 Facilities Future w/ Apple Campus 2 Keyser Marston Associates.000 $6.080 $161 million $667 million $140 million 1.000 8.000 0 2010 Facilities 2012 Facilities Future w/ Apple Campus 2 Payroll ($Ms) $2.600 $1.000 $8.000 $7. Inc.000 $2.000 $1.000 16.590 jobs with employee compensation totaling approximately $205 million.400 $2.240 $175 million $7. the economic benefits to Sunnyvale are similarly anticipated to increase.000 $9.000 $800 $600 $400 $200 $0 2010 Facilities 2012 Facilities Future w/ Apple Campus 2 Sales ($Ms) $10.978 Apple employees with $245 million of income will reside in Sunnyvale. \\Sf-fs2\wp\16\16043\001\001-007.  With the completion of Apple Campus 2.000 $4. Santa Clara and Sunnyvale Economic Benefits 2012 Facilities Apple Employees Residing in City Additional Jobs Generated by Apple Annual Income of Apple Employees Supported Business Sales Employee Compensation from Additional Jobs Total with Apple Campus 2 Apple Employees Residing in City New Jobs Generated by Apple Annual Income of Apple Employees Supported Business Sales Employee Compensation from New Jobs City of Santa Clara 816 8.978 1.000 12. Sunnyvale businesses will benefit from about $1 billion of sales generated indirectly by Apple.000 10.200 $2.000 $3.Sunnyvale and generated $140 million of employee compensation that was then spent on housing and retail purchases in the City of Sunnyvale and beyond.000 14.000 6. it is estimated that 1.296 1.410 12.7 billion $1.docx Page 21 . As shown below.2 billion 1. which will support approximately 1.200 $1.000 $5.000 2.000 18.

000 of sales tax revenue. in 2012.000 and $276. It is estimated that Apple employees residing in Santa Clara and Sunnyvale generated about $213. Inc. Keyser Marston Associates. typically generate sales or use tax.000. employment and payroll impacts that Apple generates to Santa Clara and Sunnyvale. 22 For purposes of this study. the company also indirectly generates significant tax dollars to both cities. 22 The purchase of materials does not. \\Sf-fs2\wp\16\16043\001\001-007. and to Sunnyvale $421.000. Given the tremendous revenue. for example. fiscal revenues to the surrounding cities have been evaluated on the very conservative basis of retail purchases made by Apple employees living in a particular city. annual sales tax revenues to Santa Clara are estimated to be $368. respectively.docx Page 22 . With the completion of Apple Campus 2. It is very difficult to track these tax revenues because of their indirect nature.

and output using the Minnesota IMPLAN Group’s IMPLAN model (see Section V of the report). Relatively minor revenue sources. The fiscal impact analysis focuses on the annual recurring fiscal revenues that Apple’s 2012 facilities and proposed Apple Campus 2 generate to the City of Cupertino’s General Fund. Direct impacts include the number of Apple employees and the salaries earned by Apple employees. as well as by employee expenditures. employee compensation. such as franchise fees. Santa Clara. The estimates are in 2012 dollars. law enforcement. METHODOLOGY AND ASSUMPTIONS The economic impact analysis includes an assessment of direct. which are significantly less than the actual average salary of Apple employees. We estimated law enforcement costs generated by Apple based on service requirements for Apple Campus 2 provided by the Sheriff’s Office. Given the high impact that Apple has on the surrounding communities of Santa Clara and Sunnyvale. Revenue factors are projected on the basis of the resident equivalents expected at the new campus. We evaluated impacts on the cities of Cupertino. property tax. We evaluated indirect/induced jobs. Revenue and expenditure estimates and future projections with Apple Campus 2 are static estimates for Apple’s current and future facilities. property taxes in-lieu of motor vehicle fees. and on the County of Santa Clara. we evaluated the amount of annual sales tax revenues generated by Apple employees who reside within each of the respective cities as well. utility users taxes. \\Sf-fs2\wp\16\16043\001\001-007. including sales and use taxes generated by Apple’s sales and purchases. General Fund revenues and expenditures are the focus of the fiscal analysis because this is the major source of discretionary spending for key city services. and public works and law enforcement costs. including public works. Projections extrapolate this empirical information forward from 2012 based on growth that will result from the construction of Apple Campus 2. and induced economic impacts from Apple’s ongoing operations and the construction of Apple Campus 2 in Cupertino. Given the confidential nature of employee salary information. We estimated other expenditures generated by the need to provide City services Keyser Marston Associates. Revenues are based primarily on empirical sales tax. We also evaluated sales and use tax revenues from the construction of Apple Campus 2. property taxes. and prorated based on employment. Sunnyvale. Law enforcement services are provided to Cupertino via a contract with the Santa Clara County Sheriff’s Office. Indirect and induced impacts (multiplier effects) are generated by Apple from Apple’s expenditures on materials. the Apple payroll estimates contained in this report are conservative in that they reflect industry average salaries for software engineer employees in Santa Clara County. The analysis evaluates the major revenue and cost elements. Inc. indirect.IV. component parts. and other tax data provided by Apple and confirmed by the City of Cupertino. and services. and administrative services. are based on revenue factors derived from the City of Cupertino’s FY 2012/13 budget. The fiscal impact analysis is an estimate of the annual recurring fiscal revenues and expenses that Apple generates to the City of Cupertino.docx Page 23 .

420.000 sf 3. which includes contract employees in the City. and construction cost data provided by Apple. The detailed analysis is presented in Tables 1 through 18 and appendix tables A-1 through A-8 at the end of this report.000. To estimate the Project’s fiscal impacts. assessed property value. total Cupertino-based Apple employment will be 23. Conferred with the City’s Finance Director.000 sf 120. the base level of 2012 Cupertino employment is assumed to be 16. KMA has:      Reviewed the City of Cupertino’s 2011/12 Adopted Budget and 2012/13 Proposed Budget and past and existing revenue and cost relationships. With employment growing at 10% per year. Established Apple Campus 2 service costs with the Santa Clara County Sheriff’s Office. While employment has actually increased at an average annual rate of 18% over the past five years. and employment impacts are as follows. Keyser Marston Associates.400 by the completion of Apple Campus 2 in 2016. (Supporting Tables 1 and 4).000 sf 80. Given the uncertainty regarding the timing of Phase 2. we assumed a conservative 10% annual growth rate for employment.  Apple Campus 2 Phase 1 Development Program – The analysis reflects Apple’s proposal for Apple Campus 2: Building Area Main Building Auditorium Fitness Center Research Facilities Central Plant Total GBA 2. the impacts of Phase 2 have not been evaluated as part of this analysis.docx Page 24 . utility user tax.000 sf In addition to the program outlined above. The key assumptions of the analyses as well as the methods used to calculate the revenue. transient occupancy tax.820. Apple plans a Phase 2 project at some time in the future. cost. Inc. \\Sf-fs2\wp\16\16043\001\001-007.000 sf 100.  Direct On-going Employment – For purposes of this analysis. and Reviewed the terms of the sales tax sharing agreement between the City of Cupertino and Apple. Used taxable sales.to Apple based on average cost factors for resident equivalents derived from Cupertino’s FY 2012/13 budget.000 sf 300. for this analysis.

Indirect Impacts – Indirect impacts result from company purchases of goods and services from other local industries. Apple Campus 2 will enable Apple to locate all of its employees at facilities within the City of Cupertino. Direct Construction Employment – Apple estimates the construction of Apple Campus 2 will support approximately 9. Santa Clara. (Supporting Tables 3 and 4). and the local purchases of these industries in turn. employment. at least 7. We estimated induced output. (Supporting Tables 6 to 10). provided empirical data for purchases from businesses in Cupertino. KMA estimated construction period payroll from these temporary construction jobs using average construction industry wages for Santa Clara County from the Occupational Employment Statistics Survey. and Sunnyvale and these were run through the IMPLAN model to estimate associated impacts through each city’s supply chain (see Section V). Inc. employment. Apple Campus 2 is expected to reach full capacity within a few years following completion. (Supporting Tables 6 to 10). until the local supply chain is exhausted.      Keyser Marston Associates. This analysis assumes that by 2016. Employment Distribution between Current Cupertino Facilities and Future Cupertino Facilities with Apple Campus 2 – Apple’s facilities throughout the Cupertino area in 2012 accommodated approximately 16.400 employees will be working at Apple Campus 2.000 employees.000 were located at facilities within the City of Cupertino and the remaining 1.000 employees. Sunnyvale. IMPLAN impacts from Apple purchases are reported for output. The analysis of the base 2012 Cupertino facilities reflects the 2010 place of residence distribution and the analysis of future Cupertino facilities with Apple Campus 2 reflects the assumption that the distribution of place of residence of future new employees is consistent with the distribution of employees hired in 2011. Santa Clara.docx Page 25 . Geographic Distribution of Employee Place of Residence – Apple provided the place of residence for existing employees as of the end of 2010 as well as the place of residence of employees hired in 2011. Apple Campus 2 will accommodate an additional 13. under which Apple would direct its contractors to designate Cupertino as the point of sale for construction materials. \\Sf-fs2\wp\16\16043\001\001-007. Construction Use Tax Revenues – KMA estimated construction use tax revenues based on the contractor’s estimate of material costs and “qualified subcontracts” costs. and Santa Clara County. and employee compensation. and employee compensation impacts by applying the IMPLAN model (see Section V) to the household income of Apple employees who live in Cupertino.000 were located at facilities within nearby communities. Induced Impacts – Induced impacts are produced by the spending of employee salaries. Of that total. Output impacts include the base empirical data from Apple and estimated “multiplier effects”.200 direct full-time construction jobs over the 3-year construction period. This revenue source is contingent on Apple and Cupertino negotiating a mutually acceptable development agreement. approximately 15. Apple Inc.

Apple currently leases or owns property that is not within the boundaries of either the Infinite Loop campus or Apple Campus 2. Inc. City of Cupertino Sales Tax Revenues – Apple directly generates sales tax revenues to the City through the sale of merchandise and employee cafeteria sales.0 billion.000 annually in 2012. such that approximately three employees are viewed as having the same impact as one resident. We estimated property tax revenues based on the application of the City’s share to the property value. In order to maintain confidentiality. Salaries – Apple employee salaries are confidential. Appendix A-3). (Supporting Tables 12 to 15a). (Supporting Tables 14a and 14b. it has been assumed that if Apple does not continue to occupy all existing facilities. the total assessed value of Apple-occupied properties approximated $2. Consistent with the magnitude of assessed personal property at Apple’s current facilities. As shown on Table A-3. (Supporting Table 14b). \\Sf-fs2\wp\16\16043\001\001-007.docx Page 26 .65% of the base 1% property tax levy for most of the properties owned and leased by Apple. Assessed Property Values – The assessed value of properties owned and leased by Apple in 2012 reflects data provided by Apple. The actual average salary of Apple employees is significantly higher. It should be noted that employees will indirectly generate property taxes through home-ownership. which was $121. These indirect and induced property tax revenues have not been included in this analysis. However. this analysis has conservatively assumed an average base salary reflective of the average computer software engineer salary throughout Santa Clara County.    City of Cupertino Property Tax Revenues – The City of Cupertino receives approximately 5. we have estimated that the personal property at Apple Campus 2 will approximate $500 million.33 of a resident.” This approach combines residents and employees to form a single service population to drive cost projection. The majority of these revenues are generated by online sales of Apple’s products. It receives approximately 6.1 billion. the City rebates approximately 50% of the sales tax revenue generated by Apple. 14a and 14c). The continuation of this revenue source may be contingent on Apple and Cupertino negotiating a mutually acceptable development agreement.  Keyser Marston Associates.000 annually in 2010 and $124. The future assessed value of Apple Campus 2 is based on Apple’s estimate of the market value of the property which is $3. The resident equivalents approach weights an employee as 0. (Supporting Tables 14. (Supporting Tables 2 and 5). Under the terms of a sales tax sharing agreement with Apple. It is not certain whether Apple will continue to occupy these buildings after the construction of Apple Campus 2. Resident Equivalents – The estimate of several City revenue and service cost impacts uses a modified per capita measure known as “resident equivalents. vacated space will be released to other tenants without any change in assessed property values.34% of the 1% property tax levy on a few Apple Campus 2 parcels.

the purchase of component parts that eventually become part of taxable merchandise are not directly subject to sales/use tax. Page 27 Keyser Marston Associates. jobs. The revenues currently accrue to the California city in which Apple’s warehouse is located. it is expected that the average energy consumption per employee will decline. 14a and 14c). the gross revenues. and regional spending patterns. Sales Tax Revenues to the Cities of Santa Clara and Sunnyvale – For purposes of this analysis. and are thus not subject to sharing with Apple. (Supporting Tables 14. For purposes of this draft analysis. The local portion of these use taxes approximated $548. and 14d). City of Cupertino Use Tax Revenues from Apple’s Own Use of Apple Products and from Out-of-State Vendor Purchases – Apple generates use tax revenues from the use of its own products and from purchases from out-of-state vendors.    City of Cupertino Utility Users Tax – Apple paid approximately $466. City of Cupertino Indirect Sales Tax Revenues – Indirectly.15 per employee. Apple is considering (at its sole discretion) to designate Cupertino as the point of sale for these use tax revenues. \\Sf-fs2\wp\16\16043\001\001-007. For purposes of this analysis. the estimate of sales/use tax revenues presented in this report likely represents only a small portion of the tax revenues indirectly generated by Apple to Santa Clara and Sunnyvale. and retail expenditures. and employees who also live in Cupertino generate significant retail sales. (Supporting Tables 14 and 14a). under which Apple would agree to designate Cupertino as the point of sale for these use tax revenues.000 in 2012 and will increase with employment and the completion of Apple Campus 2. It is Apple’s interpretation that the use tax revenues are considered “old revenue” under the provisions of the Sales Tax Sharing Agreement. 14a. and employee compensation indirectly generated by Apple in these cities will indirectly generate revenues. As part of the entitlement process for Apple Campus 2. it has been assumed that Apple elects to designate Cupertino as the point of sale and that 100% of these current and future specific use tax revenues are retained by the City. (Supporting Tables 1 to 5 and A-4 to A-8). This revenue source is contingent on Apple and Cupertino negotiating a mutually acceptable development agreement. such as business license taxes. The tax impacts of these indirect and induced economic impacts have not been evaluated in this analysis. it is assumed that the average consumption for employees housed at Apple Campus 2 will be 20% less than the average consumption for employees at current Cupertino facilities. employees purchase a portion of their lunchtime meals from Cupertino establishments. Place of residence of future employees is based on the actual distribution of residence of Apple employees and expenditure patterns and capture rates are based on employee incomes. While Apple purchases large amounts of component parts from vendors in these cities. (Supporting Tables 14. City import/leakage factors. we estimated sales tax revenue impacts on the cities of Santa Clara and Sunnyvale based solely on the retail expenditures of Apple employees who live within each city. Given this. Inc. property taxes. Apple hotel guests also generate City sales tax revenues. which approximates $29. Therefore. We estimated future utility user taxes based on the assumption that Apple Campus 2 will incorporate state of the art energy efficiency design and equipment.000 in utility user taxes to the City in 2012.docx . However.

The Santa Clara County Sheriff’s Office estimates that one deputy will be needed to provide law enforcement services to Apple’s Campus 2. public works. City of Cupertino Law Enforcement Costs – The City of Cupertino contracts with Santa Clara County for law enforcement services. The Community Development Department does not generate costs. as it is operated on a cost-recovery basis. City of Cupertino Property Tax In-Lieu of Vehicle License Fees – We estimated Property Tax In-Lieu of Vehicle License Fees in accordance with SB 1096. other than those already assessed in assembling the Campus parcels.1 million. based on data from the California State Controller’s Office and current and projected assessed property values. The TOT rate in Cupertino is 12%. The average cost of a deputy is $282. (Supporting Tables 15 and 15a). using expenditures in the FY 2012/13 Budget. and on-going transfers to service funds on a per resident equivalent basis.44 of revenue per resident equivalent.       23 Per SCC Sheriff’s Office April 2012 memo to Gary Baum. Combined.000 per year. (Supporting Tables 14 and 14a). (Supporting Tables 14 and 14a). it is not envisioned that Apple Campus 2 will generate any transfers of property. Fines/Forfeitures and Charges for Service – We estimated these General Fund revenue sources based on an extrapolation of the 2012 per resident equivalent amounts generated by the City’s residents and employment base. Based on Apple data. these funds receive approximately $51.000 hotel room nights at an average rate of $160 per night. We assumed that Apple employees will have a minimal impact on recreation services. 23 We estimated law enforcement costs for Apple’s 2012 facilities using a per employee factor based on the information provided by the Sheriff for Apple Campus 2.004 per square foot of usable building area.docx Page 28 . City of Cupertino Transient Occupancy Tax (TOT) – We estimated transient occupancy tax revenues based on the number of hotel room nights generated by Apple employees visiting the headquarters in 2012. (Supporting Tables 14 and 14a). City of Cupertino Property Transfer Taxes – Apple intends to retain ownership of its properties in Cupertino. Therefore. Inc. City of Cupertino Business License Taxes – Business taxes are levied at a rate of $119 per year per business plus a factor of $0. \\Sf-fs2\wp\16\16043\001\001-007. resulting in annual revenues of $1. (Supporting Tables 14 and 14a). City of Cupertino Other Service Costs – We estimated Cupertino service costs for City government. We applied the hotel room rate and usage data to future employment projections to yield estimates of future TOT revenues with Apple Campus 2. City of Cupertino Franchise Fees. Keyser Marston Associates. (Supporting Tables 15 and 15a). administration. employees generate over 56.

\\Sf-fs2\wp\16\16043\001\001-007. Revenues and expenses are presented in 2012 dollars. and are not included in this report.      Keyser Marston Associates. The report focuses on on-site costs. The projections assume that revenue sources and costs will remain constant following the completion of Apple Campus 2. Potential Public Benefit Maintenance Costs – Costs related to the maintenance of any public benefits to be provided by the project. Inflation of Revenue and Expenses – The analysis is a static analysis of existing conditions and conditions upon build-out of the Project. These differences are due to the rounding of decimal places. Rounding of Decimal Places – In some cases the calculated summations presented in the analytical tables do not precisely match the summations presented in the body of the report.docx Page 29 . Apple Investment in Public Improvements and Community Benefits – The cost estimates for public improvements to be funded by Apple as part of constructing Apple Campus 2 have been provided by Apple. Fire Protection Costs – Fire protection services are provided by the Santa Clara Fire Department and funded through property tax revenue received directly by the Department. Continuity of Legal and Institutional Constraints – The cost and revenue experience of the City of Cupertino is based on the FY 2012/13 Budget. Inc. or potential mitigation measures. have not been provided.

The widely used economic analysis tool. and the local purchases of these industries in turn. and Santa Clara. so the model can be tailored to the specific economic conditions of the region being analyzed. or in an induced manner. was used to quantify these impacts. purchase goods and services. by county and by zip code. particularly into San Mateo. This allows the user to identify how a change in demand for one industry will affect over 400 other industry sectors within a given geographic region.S. Indirect impacts result from company purchases of goods and services from other local industries. Keyser Marston Associates. \\Sf-fs2\wp\16\16043\001\001-007. the Federal Emergency Management Agency. Inc. Induced impacts are produced by the consumer spending of Apple employees. Assumptions about the portion of inputs or supplies for a given industry likely to be met by local suppliers. IMPLAN has become a widely-used tool for analyzing economic impacts from a broad range of applications from major construction projects to natural resource programs. It has been in use since 1979 and refined over time. INDIRECT AND INDUCED IMPACTS AND THE IMPLAN MODEL In addition to the employment and payroll generated directly by Apple’s business operations. IMPLAN was originally developed by the U. employment. and the portion supplied from outside the region or study area. Industries that produce goods and services for final demand or consumption must purchase inputs from other producers. In fact. only impacts occurring within the three cities and Santa Clara County have been included. the company will also create indirect and induced jobs and employee compensation. The output or result of the model is driven by tracking how changes in purchases for final use (final demand) filter through the supply chain. The model tracks these relationships through the economy to the point where leakages from the region stop the cycle. Apple is part of the larger regional economy and impacts will likewise extend throughout the region. In addition. This analysis utilizes the zip code data set for the cities of Cupertino. IMPLAN Model Description The IMPLAN model is an economic analysis software package commercially available through the Minnesota IMPLAN Group.S. and the U. The model establishes a matrix of supply chain relationships between industries and also between households and the producers of household goods and services. are derived internally within the model using data on the industrial structure of the region. or its employees. Forest Service. Sunnyvale.V.docx Page 30 . A. However. IMPLAN is based on an input-output accounting of commodity flows within an economy from producers to intermediate and final consumers. the impacts will extend throughout Santa Clara County based on where jobs are located that serve Apple. San Francisco. consistent with a conservative approach. which in turn. The projected response of an economy to a change in final demand can be viewed in terms of economic output. and Alameda Counties. A significant portion of impacts will be located within the three cities or nearby. indirectly. IMPLAN (IMpact Analysis for PLANning). Data sets are available by state. or employee compensation. either directly. Department of the Interior Bureau of Land Management.

The jobs counted in the IMPLAN model cover all jobs. we were able to input Apple’s purchases from suppliers as a direct impact in each of the three cities. Census and reporting agencies. KMA ran induced impacts directly from the number of employees living in each city. Santa Clara. Sunnyvale. \\Sf-fs2\wp\16\16043\001\001-007. Inc. Impacts for the three cities were estimated by aggregating their zip codes. Similarly. Keyser Marston Associates. including non-wage benefits such as health insurance. and impacts were also run from city information to determine the effects of the company county-wide. Rather than relying on general industry sector data to estimate the local indirect impacts of the company.docx Page 31 . so that subsequent impacts down the supply chain could be more accurately estimated.B. and Santa Clara County that allowed KMA to refine the use of the IMPLAN model. Employee compensation includes all employer costs for employees. Impacts in the three cities are greater than the sum of impacts in each individual city. and their estimated payroll. providing an estimate that more closely reflects the actual household distribution of Apple employees.S. similar to the U. Application of the IMPLAN Model to Estimate Job and Employee Compensation Impacts Specific information was available for Cupertino. This is because the aggregated three-city geographic area includes purchases from businesses and individuals located in each of the cities in the other two cities. full and part time.

KMA assumes that all applicable laws and governmental regulations in place as of the date of this document will remain unchanged throughout the projection period of our analysis. Inc. The projections contained herein are based on the best information available at the time that this document was prepared. planning agencies. excerpts or summaries of this report that are not prepared by KMA. The analysis contained in this document is based. 3. in part. (KMA) believes that these sources are reliable. or project performance may render the conclusions contained herein invalid. Any changes to costs.. Any estimates of revenue or cost projections are based on the best project-specific and fiscal data available at this time as well as experience with comparable projects. 4. The analysis contained in this document does not include an assessment of the impacts generated by Hewlett-Packard’s use of the Apple Campus 2 property or measure marginal impacts of Apple Campus 2 relative to the impacts generated by the prior use of the property.VI. on data provided by Apple Inc. actual impacts may vary. In the event that this does not hold true. and real estate brokers. 7. Inc. 2. Revenue estimates are based on the assumption that sufficient market support exists for the proposed uses and that the project will achieve industry standard productivity levels. However. if any tax rates change. 8. While Keyser Marston Associates. and secondary sources such as state and local governments. 6. LIMITING CONDITIONS 1. Keyser Marston Associates. \\Sf-fs2\wp\16\16043\001\001-007. 5. A projection of economic impacts is inherently based on judgment. development program. for example. we cannot guarantee their accuracy. The analysis assumes that the economy will continue to grow at a moderate rate. the City of Cupertino. KMA is not liable for the accuracy of any abstracts. the analysis would need to be revised. The analysis contained in this report addresses only the impacts generated by Apple. They are not intended to be projections of actual future performance of any specific project.docx Page 32 .

due to the lack of space in Cupertino.000 employees will move back to the City with the completion of Campus 2.296 816 3.410 5.044 1.000 2012 Cupertino Facilities 1.897 7.400 1 Employment is distributed by City in Table 4.400 Employment by Place of Residence 1 Cupertino Sunnyvale Santa Clara Subtotal / 3 Cities Total Cupertino-Based Apple Employees 2010 Cupertino Facilities 1.398 16. and 1. Prepared by: Keyser Marston Associates. Totals include contract employees. Inc.978 1.053 663 2. Future Cupertino Facilities w/ Apple Campus 2 1.285 1.000 Cupertino-based employees in 2012 include 15.000 Net New Employment by Place of Residence Cupertino Sunnyvale Santa Clara Subtotal / 3 Cities Total Cupertino-Based Apple Employees 2010 Cupertino Facilities 0 0 0 0 0 2012 Cupertino Facilities 0 0 0 0 0 Future Cupertino Facilities w/ Apple Campus 2 621 682 593 1.294 23. 1 summ empl . It is anticipated that these 1.000 employees in Cupertino. Filename: \\Sf-fs2\wp\16\16043\001\may 10 economic benefits.906 1. The 16.000 that are temporarily working in neighboring communities.Table 1 Summary Base and Projected Cupertino-based Apple Employment Economic & Fiscal Impacts of Apple's Base and Future Facilities in Cupertino Apple Inc.761 13.

0 $0.0 $0.0 $84.0 $0.984.0 $0.3 $1. 2 summ sal .2 $917.7 $101.0 2012 Cupertino Facilities $159.5 $2.0 $0.6 Future Cupertino Facilities w/ Apple Campus 2 $77.4 $80.0 $0.4 $245.Table 2 Summary Base and Projected Cupertino-based Apple Employee Salaries Economic & Fiscal Impacts of Apple's Base and Future Facilities in Cupertino Apple Inc.0 Net New Salaries by Employee Place of Residence ($Ms) Cupertino Sunnyvale Santa Clara Subtotal / 3 Cities Total Cupertino-Based Apple Salaries 2010 Cupertino Facilities $0.901.3 $174. Filename: \\Sf-fs2\wp\16\16043\001\may 10 economic benefits.573.3 $334.0 $1.6 $73. Future Cupertino Facilities w/ Apple Campus 2 $236.0 1 Detailed salary distribution shown in Table 5.3 $127.0 $0. Prepared by: Keyser Marston Associates.6 Total Salaries by Employee Place of Residence ($Ms) 1 Cupertino Sunnyvale Santa Clara Subtotal / 3 Cities Total Cupertino-Based Apple Salaries 2010 Cupertino Facilities $126.6 $235.2 $421.8 $656.4 $160.0 2012 Cupertino Facilities $0.0 $0. Inc.

5% 96. Inc.4% 9. Prepared by: Keyser Marston Associates.Table 3 Place of Residence of Cupertino-based Apple Employees Economic & Fiscal Impacts of Apple's Base and Future Facilities in Cupertino Apple Inc.0% 1.149 298 172 11.0% 0.1% 2. 2010 600 123 32 6 1.1% 0.1% 21. 1 Does not include contract employees.0% 7.3% 0.1% 2.) Total 2010 and 2011 Place of Residence All Cupertino-Based Apple Employees 1 Bay Area Alameda County Contra Costa County Marin County Napa County San Francisco County San Mateo County Santa Clara County Solano County Sonoma County Santa Cruz County Total Bay Area Within CA (Excluding Bay Area) Out of State Total Cupertino-Based Apple Employees 3-City Cupertino-Based Apple Emplys.9% 7.1% 8.3% 96.3% 124 32 7 227 90 978 1 4 27 1.0% 14.5% 2.2% 1.395 768 6.5% 0.8% Source: Apple Inc.5% 806 813 512 2.6% 939 959 639 2.000.1% 3.1% 0.131 8.4% 64.3% 5.1% 5.2% 0.584 7.1% 0.619 6.4% 0.537 8.469 7 13 246 9. 3 empl locn .5% 21.3% 2.4% 1.0% 25. 2011 (New Emplys.3% 0.659 243 133 10.622 858 7.3% 0. which bring the 2010 total to approximately 13.7% 64.7% 61. 1 Cupertino Sunnyvale Santa Clara Total 3-City Cupertino-Based Emplys.6% 1. Filename: \\Sf-fs2\wp\16\16043\001\may 10 economic benefits.1% 14.490 55 39 1.8% 2.3% 1.0% 2.7% 0.2% 133 146 127 406 8.447 8 17 273 11.0% 8.1% 0.1% 13.7% 94.3% 5.5% 724 155 39 6 1.2% 8.035 6.

2% 8.053 663 2.398 10.294 14.296 816 3.4% 9.131 6.000 Net New Employment Distribution 3 Cupertino Sunnyvale Santa Clara Subtotal / 3 Cities Santa Clara County Total Cupertino-Based Apple Total Total Employment Distribution Cupertino Sunnyvale Santa Clara Subtotal / 3 Cities Santa Clara County Total Cupertino-Based Apple Total 2011 New Hires Empl. Based on distribution of new hires in 2011. due to the lack of space in Cupertino.000 employees will move back to the City with the completion of Campus 2. It is anticipated that these 1.000 employees in Cupertino.398 10.314 16.569 7. Inc.053 663 2.296 816 3.5% 100.0% 25.380 13.7% 100. Per information provided by Apple Inc. and 1.000 1.761 8.410 5.1% 5.398 10. See Table 3.035 % 8.761 8.978 1. Future Cupertino Facilities w/ Apple Campus 2 Employment Distribution by Place of Residence Base Employment Distribution 2 Cupertino Sunnyvale Santa Clara Subtotal / 3 Cities Santa Clara County Total Cupertino-Based Apple Total 2010 Empl.0% 0 0 0 0 0 0 0 0 0 0 0 0 621 682 593 1.000 1.400 1.000 1. 2 3 4 Prepared by: Keyser Marston Associates. 4 806 813 512 2.314 16.044 1.897 4.314 16. Filename: \\Sf-fs2\wp\16\16043\001\may 10 economic benefits.469 10.0% 8.285 1.Table 4 Base and Projected Cupertino-based Apple Employment Economic & Fiscal Impacts of Apple's Base and Future Facilities in Cupertino Apple Inc.285 1.6% 61.285 1.906 1.2% 64.000 Cupertino-based employees in 2012 include 15.000 that are temporarily working in neighboring communities.883 23. 4 empl distn . The 16. 4 133 146 127 406 978 1.1% 21.0% 2010 Cupertino Facilities 1 2012 Cupertino Facilities 1 1.296 816 3. Based on distribution of 2010 employees.584 % 8.400 1 Cupertino-based employment in 2010 and 2012 provided by Apple Inc.380 13.000 1.044 1.

3 $1. 5 sal distn .5 $917.000 2012 Cupertino Facilities $124.2 $421.000 Salary Distribution by Place of Employee Residence employee salary 1 2010 Cupertino Facilities $121.7 $101.4 $160.014.0 $1.0 $0.0 $0.0 $1.8 $656.4 $80. Actual average salaries of Apple employees are significantly higher than assumed salary levels based on the EDD survey.984.573.4 $80.279.3 $174.6 1 Based on average software engineer salaries in the Occupational Employment Survey for the San Jose-SunnyvaleSanta Clara MSA (California Employment Development Department).0 $159.7 $101.0 $84.4 $160.845.014.0 $0.0 $0.6 $126.3 $1.2 $421.3 $127.5 $1.3 $334.0 $0.0 $0.6 $73.0 $1.0 $1.0 $0.Table 5 Base and Projected Cupertino-based Apple Employee Salaries Economic & Fiscal Impacts of Apple's Base and Future Facilities in Cupertino Apple Inc.0 $1.2 $421.3 $1. Prepared by: Keyser Marston Associates.000 Base Employee Salaries ($Ms) Cupertino Sunnyvale Santa Clara Subtotal / 3 Cities Santa Clara County Total Cupertino-Based Apple Total $126.0 $0. Filename: \\Sf-fs2\wp\16\16043\001\may 10 economic benefits.5 $2. Inc.0 $1.901.279.0 $0.6 $235.0 $236.0 Net New Employee Salaries ($Ms) Cupertino Sunnyvale Santa Clara Subtotal / 3 Cities Santa Clara County Total Cupertino-Based Apple Total Total Employee Salaries ($Ms) Cupertino Sunnyvale Santa Clara Subtotal / 3 Cities Santa Clara County Total Cupertino-Based Apple Total $0.984.7 $101.0 $0.0 $0.0 $1.984.4 $245.0 $159.279.4 $160.0 $77.3 $127.2 $566.573.0 $159.3 $334. Future Cupertino Facilities w/ Apple Campus 2 $124.

Company purchases in Cupertino were provided by Apple Inc.400 40 160 7. in order to protect confidentiality. 3 4 5 Source: Minnesota IMPLAN Group 2011 County Plus Package for Santa Clara County. Net New from 2012 w/ Apple Campus 2 7. including non-wage benefits such as health insurance.9 $48.2 $5.3 $43.9 $151.020 $11.420 Total with Apple Campus 2 23.1 $48.2 $73.1 $24. Inc.8 $12. Induced impacts are produced by the spending of employee salaries.Cupertino Economic & Fiscal Impacts of Apple's Base and Future Facilities in Cupertino Apple Inc.0 $25.7 $8. 5 Indirect 2 Induced 3 Total Output ($Ms) 4 Indirect 2 Induced 3 Total 2010 Cupertino Facilities 13.6 $39. Employee compensation includes all employer costs for employees.5 $88. 6 cup imp .600 Employment Direct 1 Indirect 2 Induced 3 Total Emply. Direct impacts of Apple Inc.5 $24.0 $29. Filename: \\Sf-fs2\wp\16\16043\001\may 10 economic benefits. until the local supply chain is exhausted.350 2012 Cupertino Facilities 16.400 130 490 24. Compensation ($Ms) 4. and run through the IMPLAN model to estimate associated impacts through the Cupertino supply chain.4 $24.8 $49. Indirect impacts result from company purchases of goods and services from other local industries.000 90 260 13. Induced impacts were run in IMPLAN based on household income generated by employment at Apple.5 1 2 See Tables 1 and 4. See Tables 2 and 5.1 $52.3 $18.2 $13.Table 6 Economic Impacts .3 $13. activities were not broken out.6 $77.3 $17.000 90 330 16. Prepared by: Keyser Marston Associates.8 $102. and the local purchases of these industries in turn.

Compensation ($Ms) 4.000 810 270 17. activities were not broken out.180 410 24. until the local supply chain is exhaused.Table 7 Economic Impacts .080 Total with Apple Campus 2 23.4 $204. Indirect impacts result from company purchases of goods and services from other local industries. Induced impacts are produced by the spending of employee salaries.990 $65.7 $38. Inc.4 $18. Employee compensation includes all employer costs for employees.9 $127.910 Employment Direct (in Cupertino) 1 Indirect 2 Induced 3 Total Emply. See Tables 2 and 5. Prepared by: Keyser Marston Associates. Filename: \\Sf-fs2\wp\16\16043\001\may 10 economic benefits.4 $311.0 $628.1 $139.400 370 140 7. and the local purchases of these industries in turn.3 $9. 7 sun imp .8 $20.6 $74.9 $6. Net New from 2012 w/ Apple Campus 2 7.4 $919.4 $59.5 $290.630 2012 Cupertino Facilities 16. and run through the IMPLAN model to estimate associated impacts through the Sunnyvale supply chain. including non-wage benefits such as health insurance.1 1 2 See Tables 1 and 4.3 $30. 5 Indirect 2 Induced 3 Total Output ($Ms) 4 Indirect 2 Induced 3 Total 2010 Cupertino Facilities 13.4 $65.3 $322.7 $667. in order to protect confidentiality.1 $978.5 $186. 3 4 5 Source: Minnesota IMPLAN Group 2011 County Plus Package for Santa Clara County. Company purchases in Sunnyvale were provided by Apple Inc.Sunnyvale Economic & Fiscal Impacts of Apple's Base and Future Facilities in Cupertino Apple Inc.000 420 210 13. Direct impacts of Apple Inc. Induced impacts were run in IMPLAN based on household income generated by employment at headquarters.8 $58.7 $353.5 $12.400 1.

400 3.880 160 21. Filename: \\Sf-fs2\wp\16\16043\001\may 10 economic benefits.760 150 11.6 $5. Induced impacts are produced by the spending of employee salaries.699.9 $16. until the local supply chain is exhaused.Table 8 Economic Impacts .233.1 1 2 See Tables 1 and 4.9 $22.716.7 $1.130 200 24. and the local purchases of these industries in turn.7 $2.073.420.3 $9.6 $5.261. Direct impacts of Apple Inc.1 $28.702.127.7 $5. 8 sta cl imp . Induced impacts were run in IMPLAN based on household income generated by employment at headquarters. Compensation ($Ms) 4. in order to protect confidentiality.310 Employment Direct (in Cupertino) 1 Indirect 2 Induced 3 Total Emply.441.400 11.5 $5. activities were not broken out. Indirect impacts result from company purchases of goods and services from other local industries. Prepared by: Keyser Marston Associates. 5 Indirect 2 Induced 3 Total Output ($Ms) 4 Indirect 2 Induced 3 Total 2010 Cupertino Facilities 13.640 $1. Net New from 2012 w/ Apple Campus 2 7.096.172. including non-wage benefits such as health insurance.2 $7.7 $7.1 $1.0 $7.Santa Clara Economic & Fiscal Impacts of Apple's Base and Future Facilities in Cupertino Apple Inc.330 Total with Apple Campus 2 23. Employee compensation includes all employer costs for employees.134.653.8 $537.7 $1.000 7.162. See Tables 2 and 5. and run through the IMPLAN model to estimate associated impacts through the Santa Clara supply chain. Inc.5 $49. Company purchases in Santa Clara were provided by Apple Inc.3 $20.890 350 35.9 $1.1 $544.000 8.6 $7.7 $2. 3 4 5 Source: Minnesota IMPLAN Group 2011 County Plus Package for Santa Clara County.040 2012 Cupertino Facilities 16.8 $1.

Compensation ($Ms) 4 Indirect 2 Induced 3 Total Output ($Ms) Indirect . Indirect impacts result from company purchases of goods and services from other local industries.277. for the three-city geography.319. and run through the IMPLAN model to estimate associated impacts through the local supply chain.2 $5. Per Apple Inc.205. This is because.172. Inc.5 $2. This is because.710 $1.7 $1. 3 4 5 Source: Minnesota IMPLAN Group 2011 County Plus Package for Santa Clara County.400 13.1 $2. Company purchases in the three cities were provided by Apple Inc.0 $23.0 $1. Employee compensation includes all employer costs for employees.000 1.6 $191.820 2012 Cupertino Facilities 16.8 $65.6 $1.4 $612.730 Total with Apple Campus 2 23.0 $1. Induced impacts are produced by the spending of employee salaries.5 $33.7 $4.673.310 37.791.3 $614.0 1 2 See Tables 1 and 4. Filename: \\Sf-fs2\wp\16\16043\001\may 10 economic benefits.1 $1.980 Employment Direct (in Cupertino) 1 Indirect 2 Induced 3 Total Emply. Net New from 2012 w/ Apple Campus 2 7.890 840 25.009.5 $122. Prepared by: Keyser Marston Associates.563.110 470 11. purchases between cities are taken into account.000 8.Cupertino.0 $1.3 $4. Sunnyvale. and Santa Clara Economic & Fiscal Impacts of Apple's Base and Future Facilities in Cupertino Apple Inc.Table 9 Economic Impacts .4 $1.868.7 $6.187.8 $591. for the three-city geography.323.2 $6.150 670 21.800.8 $41.5 $1. purchases between cities are taken into account. See Tables 2 and 5. until the local supply chain is exhaused.935.933. 9 three city imp . Impacts from indirect purchases across the three cities are greater than the sum of impacts in each individual city.498.110. Impacts from indirect purchases across the three cities are greater than the sum of impacts in each individual city. including non-wage benefits such as health insurance. Induced impacts were run in IMPLAN based on household income generated by employment at Apple.214.1 $8.000 8.400 4.4 $97.1 $68.Apple Purchases 5 Additional Indirect 2 Induced 3 Total 2010 Cupertino Facilities 13. and the local purchases of these industries in turn.

172.275.1 $204.720 2012 Cupertino Facilities 16.Santa Clara County Economic & Fiscal Impacts of Apple's Base and Future Facilities in Cupertino Apple Inc.000 8.4 $366.440 12.950 Employment Direct (in Cupertino) 1 Indirect (3-city) 2 Induced 3 Total Emply.Table 10 Economic Impacts .935. and run through the IMPLAN model to estimate associated impacts through the local supply chain (see Table 9). Employee compensation includes all employer costs for employees. Per Apple Inc.9 $1.080 $1.6 $666.3 $6. and the local purchases of these industries in turn.348.570 23.4 $1.6 $2. 3 4 5 Source: Minnesota IMPLAN Group 2011 County Plus Package for Santa Clara County.3 $2.868. Induced impacts were run in IMPLAN based on household income generated by employment at Apple. and Santa Clara were provided by Apple Inc.4 $1.8 $162.214.4 $1.6 $2. Indirect impacts result from company purchases of goods and services from other local industries. until the local supply chain is exhaused.927. 10 cty imp .103.8 $6.301.000 4.130 Total with Apple Campus 2 23. See Tables 2 and 5. Sunnyvale.Apple Purchases 5 Additional Indirect (3-city) 2 Induced 3 Total 2010 Cupertino Facilities 13.5 $4.5 $128.400 13. including non-wage benefits such as health insurance. Filename: \\Sf-fs2\wp\16\16043\001\may 10 economic benefits.4 $591.0 $72.400 4.240 28.673.0 $663.1 $5. Net New from 2012 w/ Apple Campus 2 7.0 $1.8 $234. Induced impacts are produced by the spending of employee salaries. Compensation ($Ms) 4 Indirect (3-city) 2 Induced 3 Total Output ($Ms) Indirect .440.890 3.323.000 8.0 $4.150 2.110. Prepared by: Keyser Marston Associates.680 41.3 $9. Company purchases were not provided for the County. Inc.4 $612.6 $1.5 $461.187.0 $1.767. Company purchases in Cupertino.277.110 1.1 1 2 See Tables 1 and 4.563.

6% 11.668.000 $8.000 $19.4% 0.3% 0.0% 9.000 $639.8% 7.9% 0.935. % Totl. Filename: \\Sf-fs2\wp\16\16043\001\may 10 fiscal dk.110.000 $187.9% 0.000 $42.972.585.000 $1.9% 2.183.1% 39. GF Rev.000 $10.000 $154.8% 11.000 $13.000 $657.1% 2.1% 70.0% $11.000 $1. 70.4% 1.8% $940.000 $13.9% $454. Facilities 1 2 $8.214.5% 6.0% $1.3% 10. Inc.000 $41.482.8% $1.000 $29.6% 2.9% 22.2% 0.000 $25. Prepared by: Keyser Marston Associates.000 $466. % Totl.000 100.1% 0.0% $12.1% 0.000 Future Cupertino Facilities w/ Apple Campus 2 $7.000 $342.200.000 $3.0% 16.000 $84.159.000 $125.000 $925.0% $2.510.458.000 $73.8% $663.000 100.1% 7.000 100.000 $62.0% $7.976.000 $1. 2010 Cupertino Facilities $5.000 $71.000 $2.6% 8.9% $1.000 $318.000 71.4% 10.1% 0.000 100.589.000 69.000 $124.220.000 100.486.1% 7.083.5% 0.000 $131.729.000 100.000 $9.1% 56.000 $42.000 $231.268.000 $218.000 $530.6% 0.3% 38.0% $358.000 $367.2% 2.8% $1.000 $7.000 $92. Facilities Additional Indirect General Fund Revenues 1 Transient Occupancy Tax Employee Resident Sales Tax Employee Lunchtime Sales Tax Hotel Visitor Sales Tax Total Indirect GF Revenues % Totl.000 $23. Net New vs 2012 Cup. See Tables 15 and 15a for exenditure calculations.1% $8. and Indir.000 $1. 11 fisc summ .000 38.2% 2.3% 7.2% 2.000 $50.244.3% 2.000 2012 Cupertino Facilities $6.000 100.2% 11.6% 12.000 $26.000 $766.0% $9.5% 0.5% 0.000 71.2% 2.2% 4.1% 2.6% 15.973.0% Net Annual Dir.8% 13.000 $8.000 38.000 $10.4% 38.000 38.000 See Tables 14 through 14d for revenue calculations.000 $9.000 $225.2% 11.000 $694.000 100.000 100.000 $661.0% $7.5% 1.000 $11.384.7% 15.6% 5.090.000 $180.030.000 $452.000 $3.000 $15.000 $32.000 $22.Table 11 Summary Estimated Annual Fiscal Impact on the City of Cupertino Generated by Apple Economic & Fiscal Impacts of Apple's Base and Future Facilities in Cupertino Apple Inc.000 $13.9% 0.2% 0.000 Direct General Fund Revenues 1 Direct Sales and Use Tax Property Taxes Property Tax In-Lieu of MVLF Utility Users Tax Franchise Fee Fines and Forfeitures Business License Tax Charges for Services Total Direct GF Revenues General Fund Expenditures 2 Public Works Law Enforcement Transfers Out Administrative Services Public and Environmental Affairs City Attorney Administration / City Manager Council and Commissions Total GF Expenditures Net Annual Direct GF Revenue Net New vs 2012 Cup.000 $192.2% 0.8% 1.000 $6.

12 proj demog .Table 12 Base and Projected Cupertino-based Apple Employee Resident Equivalents Economic & Fiscal Impacts of Apple's Base and Future Facilities in Cupertino Apple Inc.000 5.000 4.400 7. Future Cupertino Facilities w/ Apple Campus 2 23.33 per empl 1 See Table 1. Inc.333 2012 Cupertino Facilities 16.800 Employment and Resident Equivalents Total Apple Employment 1 Employee-Based Resident Equivalents 2010 Cupertino Facilities 13. Filename: \\Sf-fs2\wp\16\16043\001\may 10 fiscal dk. Prepared by: Keyser Marston Associates.333 0.

Department of Finance. Data reported for the City's sphere of influence.S.744 0.Table 13 City of Cupertino Demographic Data Economic & Fiscal Impacts of Apple's Base and Future Facilities in Cupertino Apple Inc. EIR data from U.166 91. Census 2011.972 2012 1 59. ABAG Projections 2009. Filename: \\Sf-fs2\wp\16\16043\001\may 10 fiscal dk [Tab] . Demographic Measure Population 2 Employment 3 Day and Nighttime Population 4 Resident Equivalents 2010 58. 2 3 4 Prepared by: Keyser Marston Associates.33 per employee 1 Reflects growth from Census/ABAG Projection referenced in January 2013 Apple Campus 2 Project EIR. Extrapolated to 2012. Total population plus total employment. for 2012 data.022 32.302 32. Inc.312 68.188 69.010 90.

379 2004-05 gross AV $0.0041 per sf for businesses > 150.000 in AV growth 3 1. Filename: \\Sf-fs2\wp\16\16043\001\may 10 fiscal dk.42 per resident equivalent Charges for Services Fines and Forfeitures Prepared by: Keyser Marston Associates.00% energy efficiency factor for Apple Campus 2 employees 7 $2.841.000 citywide revenues in FY 2011/12 8 68.000 citywide revenues in FY 2011/12 8 68.972 resident equivalents $41.33 per $1.617 property tax based revenues 2004-05 1.246 2010 annual utility user taxes 4. 7 $92.972 resident equivalents $9.000 sf 9 15% circulation factor Sales and Use Tax Utility Users Tax Franchise Fees Business License Tax Property Transfer Tax Motor Vehicle License Fee It is assumed that property transfers will not occur. Direct General Fund Revenues Property Tax Property Tax In-Lieu of MVLF See Table 14b 1. 5 13.Table 14 City of Cupertino Revenue Source Assumptions 2010/11 Economic & Fiscal Impacts of Apple's Current and Future Facilities in Cupertino Apple Inc. 2 $9.972 resident equivalents $1. The per capita portion of MVLF does not apply to the project.00% of taxable sales See Table 14c for taxable sales and reimbursement calculations 4 $657.860. and has been cancelled for cities.000 citywide revenues in FY 2011/12 8 68.000 2010 employment $50. 2 $3.135. 14 rev assump 10-11 . Inc.526.47 per resident equivalent 9 $119 per business 9 $0.56 per employee 6 80.33 per resident equivalent 7 $650.

28 annual room nights per employee 4 $150 room revenue per night 9 12% of room revenues $18 per room night 1 Per SB 1096.579 $100 75% $245. Per Cupertino Municipal Code. Per Apple Inc. 14 rev assump 10-11 .Jul 2011 4 daily meal allowance 4 Cupertino capture 10 annual hotel visitor spending per employee 5 13. VLF distribution in 2004/05 per the California State Controller's Office. growth of property tax in lieu of VLF is proportional to growth in AV since 2004/05.65 Transient Occupancy Tax room nights generated Aug 2010 .Table 14 City of Cupertino Revenue Source Assumptions 2010/11 Economic & Fiscal Impacts of Apple's Current and Future Facilities in Cupertino Apple Inc. per the City of Cupertino Adopted Budget Fiscal Year 2011-12. Filename: \\Sf-fs2\wp\16\16043\001\may 10 fiscal dk.000 2010 employment 4 42. The City of Cupertino receives 1% of the total 8. Before 2004/05.25% sales tax collected on taxable sales.00 50% 48 $960 per employee per meal 6 employee lunchtime spending incidence 6 weeks per year 6 per employee per year Hotel Visitor Spending 5 13. Inc.000 2010 employment 42.Jul 2011 3. See Table 1.00% of taxable sales See Table 14d $8. 2 3 4 5 6 7 8 9 Prepared by: Keyser Marston Associates. Additional Indirect General Fund Revenues Sales and Use Tax Employee Residents Spending Employee Lunchtime Spending 3 1. VLF was distributed in proportion to population. KMA assumption See Appendix A-1.579 room nights generated Aug 2010 . See Table 13.

744 resident equivalents $1.33 per $1.000 end FY 2011/2012 employment $29.617 property tax based revenues 2004-05 1.744 resident equivalents $40. Filename: \\Sf-fs2\wp\16\16043\001\may 10 fiscal dk.744 resident equivalents $9.000 sf 9 15% circulation factor Sales and Use Tax from Company Sales / Purchases Utility Users Tax Franchise Fees Business License Tax Property Transfer Tax Motor Vehicle License Fee It is assumed that property transfers will not occur.0041 per sf for businesses > 150.000 in AV growth 3 1. 5 16. and has been cancelled for cities. 2 $9. 14 rev assump 12-13 .379 2004-05 gross AV $0. The per capita portion of MVLF does not apply to the project.338 2012 annual utility user taxes 4. Direct General Fund Revenues Property Tax Property Tax In-Lieu of MVLF See Table 14b 1.00% of taxable sales See Table 14c for taxable sales and reimbursement calculations 4 $466.79 per resident equivalent 9 $119 per business 9 $0.135.Table 14 City of Cupertino Revenue Source Assumptions 2012/13 Economic & Fiscal Impacts of Apple's Base and Future Facilities in Cupertino Apple Inc.526. 7 $93.000 citywide revenues in FY 2012/13 8 69. 2 $3.000 citywide revenues in FY 2012/13 8 69.841.845.15 per employee 6 80.33 per resident equivalent 7 $650. Inc.32 per resident equivalent Charges for Services Fines and Forfeitures Prepared by: Keyser Marston Associates.00% energy efficiency factor for Apple Campus 2 employees 7 $2.000 citywide revenues in FY 2012/13 8 69.

Per Cupertino Municipal Code.Table 14 City of Cupertino Revenue Source Assumptions 2012/13 Economic & Fiscal Impacts of Apple's Base and Future Facilities in Cupertino Apple Inc.Jul 2012 4 daily meal allowance 4 Cupertino capture 6 annual hotel visitor spending per employee 4. 5 16. Per Apple Inc. See Table 13. growth of property tax in lieu of VLF is proportional to growth in AV since 2004/05.000 end FY 2011/2012 employment 4 56. See Table 1. The City of Cupertino receives 1% of the total 8. 14 rev assump 12-13 . 5 16. Additional Indirect General Fund Revenues Sales and Use Tax Employee Residents Spending Employee Lunchtime Spending 3 1.52 Transient Occupancy Tax room nights generated Aug 2011 . per the City of Cupertino Adopted Budget Fiscal Year 2011-12.25% sales tax collected on taxable sales. Filename: \\Sf-fs2\wp\16\16043\001\may 10 fiscal dk. Inc. VLF distribution in 2004/05 per the California State Controller's Office. Before 2004/05.53 annual room nights per employee 4 $160 room revenue per night 9 12% of room revenues $19 per room night 1 Per SB 1096.430 room nights generated Aug 2011 .00 50% 48 $960 per employee per meal 6 employee lunchtime spending incidence 6 weeks per year 6 per employee per year Hotel Visitor Spending 4.00% of taxable sales See Table 14d $8. KMA assumption.000 end FY 2011/2012 employment 56.430 $100 75% $264. 2 3 4 5 6 7 8 9 Prepared by: Keyser Marston Associates. See Appendix A-1. VLF was distributed in proportion to population.Jul 2012 3.

835 $5.706 $9.000 $1.000 $1.538 $10.558 16.100 2012 Cupertino Facilities 16. Filename: \\Sf-fs2\wp\16\16043\001\may 10 fiscal dk. Future Cupertino Facilities w/ Apple Campus 2 23.000 4.004 /sf $119 /bus 15% circulation $119 /bus 15% circulation $119 $22.000 AV 4 1 1 2 3 2010 Cupertino Facilities 13.42 /res eq $1.838 $8.937 General Fund Revenue Category employees resident equivalents assessed value ($1.972.518.028.000 13.333 $2.333 $1.686 $41.338 $217.589.246 $179.608.Table 14a Annual City of Cupertino Revenues Generated by Apple Economic & Fiscal Impacts of Apple's Base and Future Facilities in Cupertino Apple Inc.338 $0 $466.47 /res eq $40.661 $6.33 /res eq $9.33 /$1.112 $49. 14a rev .883 $318.401 $72.00% eff.56 /empl $40.973 7.930 6.668.555 $5.220.253 $119 $24.419 $24.000s) square footage Estimating Factors 2010 $0.827.879 $7.32 /empl 16.79 /res eq $0.000 5.760 $21.800 $4.15 /empl $23.000 AV $925.33 /res eq $9.158.000 0 $50.937 Direct Revenues Property Taxes 2 Property Tax In-Lieu of MVLF Sales/Use Tax .45 /empl $29.243.780 $40.006.545 $638.000 $529. 2012 $0.400 7.000 0 $466.935.338 $172.Apple Sales/Purchases 5 Utility Users Tax Current Cupertino Facility Employees Apple Campus 2 Employees Tax from Current Facilities Tax from Apple Campus 2 Franchise Fee Business License Tax Base Tax Per Square Foot Fee Charges for Services Fines and Forfeitures Total Direct General Fund Revenue 80.528 6.055 $7.000 $2.32 /res eq Prepared by: Keyser Marston Associates.400 $466.384.178 $657.000 7.482.33 /$1. Inc.694 $12.107.000 $693.749 $1.940 $119 $21.716 $22.246 $0 $657.

973 7.937 General Fund Revenue Category employees resident equivalents assessed value ($1.529 $1.00% tax $960 /empl $245.924 $124.000s) square footage Estimating Factors 2010 1.333 $1.361 $224.021 Other Leased Properties in Cupertino 2.420. Filename: \\Sf-fs2\wp\16\16043\001\may 10 fiscal dk.081 56.659 $230.53 rm nt /empl $19.456 $1. 3 4 5 6 Prepared by: Keyser Marston Associates.605.579 1.00 /rm nt 3.937 Additional Indirect Revenues Sales Tax Employee Residents 6 Employee Lunchtime Spending Hotel Visitor Spending Transient Occupancy Tax Employee Room-Nights 2012 $960 /empl $264.640 $61. See Table 14c.770 $342.451 783.323 $426.510.000 2.070 1.006.Owned / Leased 1.930 6.528 6.657.52 /empl $186.000 4.083.608.579 Other Owned Properties in Cupertino 530.600 $42.021 783.100 6.000 6.110.198.226 82.198.006.800 $4.337 Apple Campus 2 Properties 2.518.00% tax 1.554 $2.20 /rm nt 42.848 $153.897 $628. 14a rev .333 $2.430 $1. Future Cupertino Facilities w/ Apple Campus 2 23.28 rm nt /empl $18.605.213.657. See Table 14b.934 $343.579 1.937 7.65 /empl 4 1 1 2 3 2010 Cupertino Facilities 13.Table 14a Annual City of Cupertino Revenues Generated by Apple Economic & Fiscal Impacts of Apple's Base and Future Facilities in Cupertino Apple Inc.400 7.243.422 $1.337 1. Square footages based on the following (see Appendix A-3 for Infinite Loop and other Cupertino.518.937 See Table 14.132. See Table 14d.898 3. Apple Campus 2 Project EIR.452 Total Indirect General Fund Revenue 1 2 See Table 12.584.100 2012 Cupertino Facilities 16. January 2013 for the AC2 site): Infinite Loop . Inc.000 3.000 5.243.198.827.800 $31.579 $766.107.

Fixtures.159.620 $33.650.65% $0 1.405.789 1.502.561.159.262 $3.65% $285.177 $73. Fixtures.603 $925.434.400 $468.000 $240.571 $164.18% $7.213.543 5.Table 14b Assessed Property Values and Property Tax Revenues Cupertino Properties Owned or Leased by Apple 1 Economic & Fiscal Impacts of Apple's Base and Future Facilities in Cupertino Apple Inc. Filename: \\Sf-fs2\wp\16\16043\001\may 10 fiscal dk14b prop tax .535.598.226 $44.000 Prepared by: Keyser Marston Associates.65% $181.833 $320.948.080.16% $30.948.216 incl.000 1.404.216 $136.119.34% $1.240.552.759 6.000 $11.65% $265.605.925 5.201.000 $2.796.177 $75.614.502.536.124.18% $5.16% $31.879.000 Land Real Property Personal.636.18% $1.18% $0 5. Inc.543 5.525.706.645.960.510 $4.954.287.000 1.15% $3.863 5.536 1.482.688.715.181.506.295.469 $3.000 Other Owned Properties in Cupertino 2 $81.103 6.939.266 1.592.400 $0 $410.15% $2.18% $24.643.133.146.805 $604.000 Other Owned Properties in Cupertino 2 $71.352 $2.661 $443.000 Land Real Property Personal.389 $1.65% $285.688.773.059.18% $0 5.444.118 6.120.000 1.220.000 Apple Campus 2 Properties TRA 013-006 3 $13.675 $202.000 1.630 1. below $0 $0 $0 $0 $125.650.65% $72.000 1.159 1.000 Land Real Property Personal.18% $2. below incl.15% $1.375 1.086 $77.837 $159.15% $5.412 1.451.565.177 5.396.642 $121.221 6.279 $1.645 $205.000 1.016 5.384 $2.151.391.161 5.507.595 $438.078.343.595 $119.678 $2.255 $721.079 5.114.535.336 $243.197 $0 $217.987 1.65% $114.244.799.65% $219.939.767 $153.364 5.759 $204.053 $503.000 Apple Campus 2 Properties TRA 013-006 3 $398.400 1.364 5.16% $4.478.820 $205.650.592 $386.17% $56.936 $0 $0 $127.000 1. Imps Propty Total AV Total Property Tax Rate 4 Annual Property Taxes City of Cupertino's Share of Base 1% Rate 5 Property Tax Revenues to City of Cupertino Other Owned Properties in Cupertino 2 $81.213.687.276.34% $1.043.805 $604.401.65% $0 1.18% $0 5.137.493. Future Apple Real Estate in Cupertino with Apple Campus 2 Apple Apple Infinite Loop Other Leased Campus 2 Campus 2 Properties Properties in Properties Properties Owned/Leased Cupertino 2 TRA 013-003 3 TRA 013-006 3 by Apple $57.935.272.592 $514.34% $138.107.094 $615.495.000 Land Real Property Personal.936 1.929.903. Imps Propty Total AV Total Property Tax Rate 4 Annual Property Taxes City of Cupertino's Share of Base 1% Rate 6 Property Tax Revenues to City of Cupertino 2010 Apple Cupertino Real Estate Apple Infinite Loop Other Leased Campus 2 Properties Properties in Properties Owned/Leased Cupertino 2 TRA 013-003 3 by Apple $56. below incl.164.441 $202. Imps Propty Total AV Total Property Tax Rate 4 Annual Property Taxes City of Cupertino's Share of Base 1% Rate 5 Property Tax Revenues to City of Cupertino 2012 Apple Cupertino Real Estate Apple Infinite Loop Other Leased Campus 2 Properties Properties in Properties Owned/Leased Cupertino 2 TRA 013-003 3 by Apple $57.820 $193.614. below $2.278 $444.867 1.65% $90.565.253 $224.677 $240.65% $0 Total Real Estate Holdings incl.105 $48.65% $342.833.057.094 $2.65% $291.071.815.15% $5.137. Fixtures. below $136.650. Fixtures.098.079 5.781.581 5.596.65% $251.295.223 $463.253 $224.18% $7.000 Total Real Estate Holdings $867.476 5.504.838 $234.017 $1.18% $4.000 1.18% $6.552.799.565.000 Total Real Estate Holdings $275.105 $1.000 Total Real Estate Holdings $424.470 $39.117.608.874.688 $118.124.645.002.133.336 $243.469 $441.675 $202.594. Imps Propty Total AV Total Property Tax Rate Annual Property Taxes City of Cupertino's Share of Base 1% Rate Property Tax Revenues to City of Cupertino Net Growth in Real Estate 2012 to Future with Apple Campus 2 Apple Apple Infinite Loop Other Leased Campus 2 Campus 2 Properties Properties in Properties Properties Owned/Leased Cupertino 2 TRA 013-003 3 TRA 013-006 3 by Apple incl.226 $44.086 $77.956 1.65% $114.600 $0 $0 $2.528.972.827.720.271 $147.288.416 $441.060.391.158 $2.987 1.16% $34.18% $5.907 $624.936 $503.18% $2.65% $342.478.732.376.34% $260.504.000 Other Owned Properties in Cupertino 2 $0 $0 $0 $0 1.15% $18.

34% of the base levy. and $3 billion in value with future Apple Campus 2. The base property tax levy is 1%. vacated space will be re-leased to other tenants without any change in assessed property values. Additional assessments per Santa Clara County Compilation of Tax Rates and Information books. It is not certain whether Apple will continue to occupy all buildings outside the boudaries of the Infinite Loop and Apple Campus 2 after the construction of Apple Campus 2. In TRA 13-003 the City's share of the base tax levy is 5.65% rate has been applied to the parcels outside Apple Campus 2 for this analysis. the 5. Taxes on these parcels have been calculated separately for each TRA.6 million). All of the properties outside Apple Campus 2. distributed by TRA based on building square feet. the City receives 6. are located within Tax Rate Area 13-003. See Appendix Table A-3. three properties totaling $218 million in value are located in TRA 13-006 rather than TRA 13-003. Given the relatively minor impact of the difference between Cupertino's share of property tax in the five TRAs.Table 14b Assessed Property Values and Property Tax Revenues Cupertino Properties Owned or Leased by Apple 1 Economic & Fiscal Impacts of Apple's Base and Future Facilities in Cupertino Apple Inc.3 million). Of the Apple Campus 2 parcels.60% of the base levy. with the exception of five properties totaling $121. In TRA 13-003 the City's share of the base tax levy is 5. and for three properties in TRA 13-009 (valued at $64.7 million). and b) Personal Property values are consistent with the average per square foot value at 2012 Cupertino facilities ($151 per sf).34% of the base levy. the City receives 5. Inc. 3 4 5 6 Prepared by: Keyser Marston Associates. and for three properties in TRA 13-009 (valued at $63. it has been assumed that if Apple does not continue to occupy all existing facilities. Taxes on these parcels have been calculated separately for each TRA.. All of the properties outside Apple Campus 2.65%.65% rate has been applied to the parcels outside Apple Campus 2 for this analysis. current assessed property values have been provided by Apple. For purposes of this analysis.60% of the base levy. are located in TRA 13-006 rather than TRA 13003.0 million of value. the City receives 6. Given the relatively minor impact of the difference between Cupertino's share of property tax in the five TRAs. Filename: \\Sf-fs2\wp\16\16043\001\may 10 fiscal dk14b prop tax .5 million). with the exception of five leased properties totaling $72. For two properties in TRA 13-006 (valued at $56. the City receives 5. are located within Tax Rate Area 13-003. Notes: 1 2 Unless specifically noted. per Apple Inc. Of the Apple Campus 2 parcels. However.65%.1 million of value. the 5. it has been assumed that: a) the total market value of Apple Campus 2 land and improvements is $3 billion. For two properties in TRA 13-006 (valued at $8. three properties totaling $410 million in value in 2012.

AOU and Out-of-State Vendor sales on citywide employment. These annual purchases total approximately $52.000 $2.309.000 $772.000 $3.293. Filename: \\Sf-fs2\wp\16\16043\001\may 10 fiscal dk. City sales tax revenues generated by the cafeteria at the Infinite Loop campus provided by Apple Inc. Apple generates sales tax revenues to Cupertino from sales of Apple products and cafeteria sales. which generate $528.8 million in 2012.668. 2 3 4 5 6 7 Prepared by: Keyser Marston Associates.000 $29. 100% of the tax revenue will be retained by the City of Cupertino. Apple Own-Use (AOU). With the entitlements for Apple Campus 2.608.000 annually as of 2012 on equipment purchases from suppliers that do not have a California point-of-sale. and Out-of-State Vendor sales/purchases are expected to increase in proportion to employee growth. These use tax revenues from AOU are considered "old revenues" under the tax sharing agreement and will therefore not be shared with Apple.000 2012 Cupertino Facilities 3.000 $284.000 $11. Rebate amount has been calculated pursuant to the terms of the June 2007 Agreement.000 $6.554.000 $12. Cafeteria sales based on Infinite Loop employment.000 Cafeteria Sales Tax (included in total above) 3 Apple Sales Tax to Cupertino Net of Cafeteria 4 (Less) Rebate to Apple 5 Annual Net Sales Tax Revenue to Cupertino from Apple-Generated Taxable Sales Annual Use Tax Revenue to Cupertino from Apple Purchases of Its Own Products 6 Annual Use Tax Revenue to Cupertino from Apple Purchases of Equipment from Out of State Vendors 7 Total Annual Revenue to Cupertino from Apple 1 Cafeteria. Apple purchases Apple products for its own use.000 $5.000 $11. Apple intends to designate Cupertino as the point of sale for these purchases.000 $12.690. Apple-generated City sales tax revenues aside from cafeteria sales are expected to remain constant.400 347% base Employment Factors 1 Infinite Loop and Apple Campus 2 2010 Cupertino Facilities 3.000 $6.000 $6.000 $3.062.000 16.000 $82.000 $12.000 $0 $0 $5.482. Apple pays city use taxes of approximately $20. Analysis assumes that the Agreement is extended. Per Apple Inc.384. Inc. these out-of-state purchases are currently sourced to another city.. if City sales tax revenues exceed $1 million. These sales tax revenues are subject to the sales tax sharing agreement with the City of Cupertino.000 $13.531.482.000 $2.208.000 $12.000 $6.Table 14c Annual Sales and Use Tax Revenue to City of Cupertino Generated By Apple Economic & Fiscal Impacts of Apple's Base and Future Facilities in Cupertino Cupertino. 14c sales tax .000 23.500 plus 50% of City sales tax in excess of $1 million.868.000 $4. but will be transferred to Cupertino with entitlements for Apple Campus 2.000 of annual local use tax revenue.892. These use tax revenues are sourced to another city in California. such as the desktop computers used by Apple employees.000 $5.000 $12. Cupertino-wide facilities employment provided by Apple. for each fiscal year.109.553.394.540.062. CA Future Cupertino Facilities w/ Apple Campus 2 10.000 Cupertino-Wide Apple-Generated Local Sales Tax Sourced to Cupertino 2 Q1 2011 or 2012 Q2 2011 or 2012 Q3 2011 or 2012 Q4 2011 or 2012 13.608.690. Like the AOU taxes. then Apple receives $362.000 $0 $0 $6. Under the Agreement.400 146% base $2. Infinite Loop employment provided by Apple.000 $7.000 $11.000 $2.000 $2.668.304. see Table 1.049.583.

698 $5.018 $121.625.814.513 $43.968 $4.554 $2.394 $18.355 $496.361 1 2 See Appendix A-4 through A-8.011 $45.391 $23.950 $6.093 $18.032.250 $207.983.461.613 $14.848 $4.752 $2.204 $230. Drug Stores) Convenience Retail Food Services and Drinking Places Building Material and Garden Equipment Automotive Retail Gasoline Stations Motor Vehicle and Parts Dealers Total 2010 Cupertino Facilities Potential Sales 1 Spending Tax 2 1% sales 2012 Cupertino Facilities Potential Sales 1 Spending Tax 2 1% sales $3.084.779 $66. Inc.831 $5.948 $3.792 $2.128 $3. Future Cupertino Facilities with Apple Campus 2 Potential Sales 1 Spending Tax 2 1% sales Retail Sales Category Comparison Retail General Merchandise Clothing and Clothing Accessories Home Furnishings and Appliance Other Retail Group (incl.167 $1.611 $186.944 $4.924 $3.988. Filename: \\Sf-fs2\wp\16\16043\001\may 10 fiscal dk.351.243 $342.122 $4.929 $49.261 $1.844 $2.411.236. 14d res sales taxes .531.328 $24.501.845 $1.401. See Table 14.253.314 $3.747.845 $2.019 $1.950 $16.917 $1.638 $20.692.195 $9.410 $392.504 $884.433 $22.472 $99.592 $16.595.758.386 $45.463.110 $79. Prepared by: Keyser Marston Associates.Table 14d Annual Sales Taxes to City of Cupertino Generated by the Purchases of Apple Employee Residents Economic & Fiscal Impacts of Apple's Base and Future Facilities in Cupertino Apple Inc.586 $13.394.443 $264.324 $4.924.451 $37.764 $180.055.147 $24.835 $8.145.815 $37.124 $596.257 $53.477 $68.964 $6.696 $2.532 $2.159.011 $7.934 $4.077.649 $33.767 $30.606 $1.078 $24.128 $45.383.320.379 $11.661.337.888 $13.765 $12.344 $34.676.

972 $1.Table 15 City of Cupertino Service Expenditure Assumptions 2010/11 Economic & Fiscal Impacts of Apple's Current and Future Facilities in Cupertino Apple Inc.000 25% 68.972 $1.658.542.000 25% 68. General Fund City Council and Commissions $536.000 Apple Employees Public and Environmental Affairs $1.276 Average Cost per Deputy 5 1 Deputy for Apple Campus 2 $282.96 $664.972 $16.972 $6.46 None None Net Expenses in 2011/12 1 Percent Variable Costs 2 Resident Equivalents 3 Per Resident Equivalent Net Expenses in 2011/12 1 Percent Variable Costs 2 Resident Equivalents 3 Per Resident Equivalent Administrative Services Recreation Service 6 Community Development 7 Prepared by: Keyser Marston Associates.000 25% 68.000 25% 68.228 Annual Law Enforcement Cost per 1.000 25% 68.000 New Apple Campus 2 Employees $28. Inc.94 $541. 15 exp assump 11-12 .972 $2. Filename: \\Sf-fs2\wp\16\16043\001\may 10 fiscal dk.41 Net Expenses in 2011/12 1 Percent Variable Costs 2 Resident Equivalents 3 Per Resident Equivalent Net Expenses in 2011/12 1 Percent Variable Costs 2 Resident Equivalents 3 Per Resident Equivalent Net Expenses in 2011/12 1 Percent Variable Costs 2 Resident Equivalents 3 Per Resident Equivalent Administration / City Manager City Attorney Law Enforcement 4 $282.01 $4.276 Annual Cost for Apple Campus 2 4 10.

Table 15 City of Cupertino Service Expenditure Assumptions 2010/11 Economic & Fiscal Impacts of Apple's Current and Future Facilities in Cupertino Apple Inc.034.000 Net Expenses in 2011/12 1. See Table 13. including retiree medical. 15 exp assump 11-12 . Ongoing General Fund transfers to funds that provide City services.61 Per Resident Equivalent Transfers Out 8 $2.766. per the City of Cupertino Finance Department. 2 3 4 5 6 7 A portion of each General Fund expense category is fixed. open space) Expenses $8. Average of patrol deputy and traffic enforcement deputy cost provided by the Santa Clara County Sheriff's Office.972 Resident Equivalents $82. It is assumed that Apple employees will have a minimal impact on City recreation services. and compensated absence. It is the goal of the Community Development Department to cover service costs with fees. Filename: \\Sf-fs2\wp\16\16043\001\may 10 fiscal dk. transportation projects.000) Less Grounds (park. The estimated percent of variable costs is based on the experiences of other cities. General Fund (continued) Public Works 1 $11.33 Net Expenses in 2011/12 1 Percent Variable Costs 2 Resident Equivalents 3 Per Resident Equivalent Notes: 1 See Appendix A-2. 8 Prepared by: Keyser Marston Associates. information technology. 6 ($3.263.972 $21.000 2 65% Percent Variable Costs 3 68.800. Per SCC Sheriff's Office. and does not vary regardless of the amount of development. Inc.000 65% 68.

000 25% 69.99 $690.47 Net Expenses in 2012/13 1 Percent Variable Costs 2 Resident Equivalents 3 Per Resident Equivalent Net Expenses in 2012/13 1 Percent Variable Costs 2 Resident Equivalents 3 Per Resident Equivalent Net Expenses in 2012/13 1 Percent Variable Costs 2 Resident Equivalents 3 Per Resident Equivalent Administration / City Manager City Attorney Law Enforcement 4 $282. Filename: \\Sf-fs2\wp\16\16043\001\may 10 fiscal dk.000 New Apple Campus 2 Employees $28. Inc.744 $1.70 $554.504.744 $5.744 $1.000 25% 69.000 Apple Employees Public and Environmental Affairs $1. 15 exp assump 12-13 .276 Average Cost per Deputy 5 1 Deputy for Apple Campus 2 $282.39 $4.228 Annual Law Enforcement Cost per 1. General Fund City Council and Commissions $473.420.276 Annual Cost for Apple Campus 2 4 10.84 None None Net Expenses in 2012/13 1 Percent Variable Costs 2 Resident Equivalents 3 Per Resident Equivalent Net Expenses in 2012/13 1 Percent Variable Costs 2 Resident Equivalents 3 Per Resident Equivalent Administrative Services Recreation Service 6 Community Development 7 Prepared by: Keyser Marston Associates.744 $15.Table 15 City of Cupertino Service Expenditure Assumptions 2012/13 Economic & Fiscal Impacts of Apple's Base and Future Facilities in Cupertino Apple Inc.744 $2.000 25% 69.000 25% 69.000 25% 69.

It is assumed that Apple employees will have a minimal impact on City recreation services. Filename: \\Sf-fs2\wp\16\16043\001\may 10 fiscal dk. Per SCC Sheriff's Office. The estimated percent of variable costs is based on the experiences of other cities.645.728. Ongoing General Fund transfers to funds that provide City services. 15 exp assump 12-13 .127.Table 15 City of Cupertino Service Expenditure Assumptions 2012/13 Economic & Fiscal Impacts of Apple's Base and Future Facilities in Cupertino Apple Inc. and compensated absence.06 Per Resident Equivalent Transfers Out 8 $2.601. A portion of each General Fund expense category is fixed. 3 4 5 6 7 8 Prepared by: Keyser Marston Associates.65 Net Expenses in 2012/13 1 Percent Variable Costs 2 Resident Equivalents 3 Per Resident Equivalent 1 2 See Appendix A-2. 6 ($3.000 Net Expenses in 2012/13 1. See Table 13. open space) Expenses $9. Inc.000 65% 69. including retiree medical. transportation projects. per the City of Cupertino Finance Department.000) Less Grounds (park.000 2 65% Percent Variable Costs 3 69. It is the goal of the Community Development Department to cover service costs with fees. and does not vary regardless of the amount of development. Average of patrol deputy and traffic enforcement deputy cost provided by the Santa Clara County Sheriff's Office.744 $24. information technology.744 Resident Equivalents $85. General Fund (continued) Public Works 1 $12.

416 $942.000 4.000 empl $5.591 $13.043 $10. 15a exp .277 $1.191 $451.429 $366.39 /res eq $15.33 $1.06 /res eq $24.500 $453. Prepared by: Keyser Marston Associates.753 $84.96 $2.000 5.292 $660. Inc.94 $1.663 $131.042 $71.228 /1.333 Council and Commissions Administration / City Manager City Attorney Law Enforcement Public and Environmtl Affairs Administrative Services Public Works Transfers Out Total General Fund Expenditures $1.497 $10.Table 15a Annual City of Cupertino Service Expenditures Generated by Apple Economic & Fiscal Impacts of Apple's Base and Future Facilities in Cupertino Apple Inc.228 $6.65 /res eq $8. See Table 15.419 $8.581 $663.729.526 $42.471 $1.959 $26.482 $192.800 General Fund Expenditure Category employees resident equivs Estimating Factors 2010 2012 2 1 1 2010 Cupertino Facilities 13.333 2012 Cupertino Facilities 16.642 $28.341 $357.051 $123.922 1 2 See Table 12.46 $82.99 /res eq $2.182.225 $15.41 $28.984 $92. Filename: \\Sf-fs2\wp\16\16043\001\may 10 fiscal dk.47 /res eq $28.70 /res eq $1.400 7.087 $9. Future Cupertino Facilities w/ Apple Campus 2 23.01 $16.84 /res eq $85.61 $21.853 $13.490 $19.

Table 16 Estimated Apple Campus 2 Construction-Related Government Tax / Fee Payments Economic & Fiscal Impacts of Apple's Base and Future Facilities in Cupertino Apple Inc.000 $24.714. Inc.000 $100.000 $2.655.000 $33.000 TBD $7.500 $277.000 $875.000 $3.000 $4.180.000 $1.500 TBD TBD $2.000 $1. Prepared by: Keyser Marston Associates.237.688.000 $28.000 $6.334.500. 16 fees .500 $1.000 $13.000 $514.500 Total Estimated Tax and Fee Payments 1 Fees can be calculated based on floor area or staff time. Filename: \\Sf-fs2\wp\16\16043\001\may 10 fiscal dk. Source: Apple Inc.673.000 Fee Category City of Cupertino Construction Tax City of Cupertino Fees Permitting Fees Application / Planning / Legal Review Plan Check Building Permit Advanced Planning Grading Permit Parcel Map Other Public Facility Fees Water Connection Sanitary Connection Encroachment Street Vacation Storm Water Management Storm Sewer Impact #1 Public Art BMR (Housing Impact) Total City of Cupertino Fees Other Agency Fees Seismic (State) BSC (State) Santa Clara Unified School District Cupertino School District $438.000 $228.000 $176.570. Average Fee 1 $10.571. These fees reflect an average of both methods.000 $170.

269. Sales tax rates to the Santa Clara Valley Transportation Authority.846.000 $1.000 $6.000 $1.000.276. Prepared by: Keyser Marston Associates.000 $12.000 $15.000 $5. Filename: \\Sf-fs2\wp\16\16043\001\may 10 fiscal dk.383.000 $6.000 $5. effective April 2013.200.000 $6.000 $14.Table 17 Summary Annual Sales and Use Tax Revenue to the Santa Clara Valley Transportation Authority Generated By Apple Sales in Cupertino 1 Economic & Fiscal Impacts of Apple's Base and Future Facilities in Cupertino Cupertino. Rates and Effective/End Dates .531.000 1 2 3 This sales and use tax estimate does not include taxes generated by purchases from Apple vendors county-wide. per California State Board of Equalization.586.000 $6.345. District Taxes.000 $1. Inc. Based on Table 18.712.369.000 2010 Cupertino Facilities Total Taxable Apple Sales in Cupertino 2 Sales and Use Tax Revenue to Santa Clara VTA 3 Santa Clara County Transit District 1976 1/2 Cent Santa Clara VTA 2000 Measure A 1/2 Cent Santa Clara VTA BART O&M 2008 Meas B 1/8 Cent $1. 17 VTA sales tax summ .106.445.846.531.345. CA Future Cupertino Facilities w/ Apple Campus 2 $1.292.404.000 2012 Cupertino Facilities $1.

383.000 Cafeteria Sales Tax (included in total above) 3 Apple Sales Tax to Cupertino Net of Cafeteria 4 Total Apple-Generated Local Sales 5 Apple Cafeteria Sales Apple-Generated Local Sales Net of Cafeteria Apple-Generated Local Sales Tax to VTA 6 Sta Clara County Transit District 1976 1/2 Cent Sta Clara VTA 2000 Measure A 1/2 Cent Sta Clara VTA BART O&M 2008 Meas B 1/8 Cent Annual Use Tax Revenue to VTA from Apple Purchases of Its Own Products 7 Annual Use Tax Revenue to VTA from Apple Purchases of Equipment from Out of State Vendors 8 Total Direct Annual Revenue to VTA from Apple 1 1.400 146% base $2.000 2012 Cupertino Facilities 3.405.000 $2.553.300. Filename: \\Sf-fs2\wp\16\16043\001\may 10 fiscal dk.345.000 $6.000 $13.000 $14.000 23. These annual purchases totaled approximately $52.000 $1. Sales that produce the 1% taxes to Cupertino reported by Apple Inc. and Out-of-State Vendor sales/purchases are expected to increase in proportion to employee growth.000 $12.200.000 $14.000 $8.554.531. AOU and Out-of-State Vendor sales on citywide employment.049.000 $284.000 $3. Apple-generated City sales tax revenues aside from cafeteria sales are expected to remain constant. Apple pays city use taxes of approximately $20.445. CA Future Cupertino Facilities w/ Apple Campus 2 10.000 $4. 18 VTA sales tax .000 $14. per Apple Inc.608.125% 1.446.000 $1.531.000 $6.109.276. Apple Own-Use (AOU).00% $1.000 $12. These sales are sourced to another city in California.000 $1.125% $5.000 $3..276.000 $1. City sales tax revenues generated by the cafeteria at the Infinite Loop campus provided by Apple Inc. such as the desktop computers used by Apple employees.104.50% 0.000 $2.000 $0 $6. per California State Board of Equalization. Cupertino-wide facilities employment provided by Apple.50% 0. these out-of-state purchases are currently sourced to another city.125% 1.000.200.000 $12.000 $1.106. 2 3 4 5 6 7 8 Prepared by: Keyser Marston Associates.000 0. Inc.000 $868.000 $2.269.000 $0 $6.000 $2.400.000 $5.800.8 million in 2012.000 $12.000 $11. Apple intends to designate Cupertino as the point of sale for these purchases. but will be transferred to Cupertino with entitlements for Apple Campus 2.000 $12.000 $1.531.504.062.868.612.000 annually as of 2012 on equipment purchases from suppliers that do not have a California point-of-sale.800. District Taxes.304.293.586.000 13.000 $28.000 Cafeteria.000 $15.608. With the entitlements for Apple Campus 2. Cafeteria sales based on Infinite Loop employment. Sales tax rates to the Santa Clara Valley Transportation Authority.000 $1.260.289. effective April 2013.200. 1% sales tax revenues to Cupertino from sales of Apple products and cafeteria sales.690.260. Rates and Effective/End Dates. Like the AOU taxes.000 $1. Apple purchases Apple products for its own use.900. Per Apple Inc.400 347% base Employment Factors 1 Infinite Loop and Apple Campus 2 Cupertino-Wide Apple-Generated Local Sales Tax Sourced to Cupertino 2 Q1 2011 or 2012 Q2 2011 or 2012 Q3 2011 or 2012 Q4 2011 or 2012 2010 Cupertino Facilities 3.345.000 1. Infinite Loop employment provided by Apple.000 $1.Table 18 Annual Sales and Use Tax Revenue to the Santa Clara Valley Transportation Authority Generated By Apple Sales in Cupertino Economic & Fiscal Impacts of Apple's Base and Future Facilities in Cupertino Cupertino.445.540.000 16.125% $0 $0 $33.000 $11.446.000 $82. see Table 1.00% 1.

of 1% tax provided by client provided by client.590. cxn.078.Other Service Charges Fines and Forfeitures Total Revenue Included Deducted from Service Costs Licenses and Permits Charges for Services Zoning and Planning Fees Engineering Fees Senior Center Blackberry Farm / Youth & Teen Programs Total Deducted from Service Costs $2.000 $36.000 $4. provided by client resident equivalents rates from Municipal Code no residents.000 deduct from Community Development deduct from Community Development deduct from Public Works deduct from Recreation deduct from Recreation deduct from Community Development decuct from Community Development deduct from Public Works deduct from Recreation deduct from Recreation FY 2011/12 Budget Basis of KMA Projections Current Cupertino Facilities Future Facilities w/ Apple Campus 2 $11. rev.000 $650.414.618.190. City sh.000 $240.Motor Vehicle Lic.) Intergovernmental .. Revenue Category Included in the Analysis Taxes Property Tax (incl. value.000 $37.540.Appendix A-1 Summary of City of Cupertino General Fund Revenue Sources in FY 2011/12 1 Economic & Fiscal Impacts of Apple's Current and Future Facilities in Cupertino Apple Inc. resident equivalents resident equivalents Prepared by: Keyser Marston Associates. of 1% tax extrapolate from existing extrapolate from existing extrapolate from existing resident equivalents rates from Municipal Code no residents. this is a per capita rev. prop.000 $14.860.000 assessed value. lic. Fees Charges for Services . rate is 12% rm.000 $92. this is a per capita rev.000 $440. A-1 budget rev 11-12 .000 $443.000 $1. devel.000 $2..396.951.000 $165. In-Lieu of MVLF 2) Sales and Use Tax Transient Occupancy Tax Utility Users Tax Franchise Fees Other Taxes (bus. City sh.000 $3.000 $2. resident equivalents resident equivalents est. Filename: \\Sf-fs2\wp\16\16043\001\may 10 fiscal dk.460.000 $412.283. transf. Inc.000 $1.

Filename: \\Sf-fs2\wp\16\16043\001\may 10 fiscal dk. Revenue Category Excluded from the Analysis Use of Money and Property Investment Earnings Property Rentals Intergovernmental Grants Other Intergovernmental Miscellaneous Transfers In / Other Revenues Information Technology & Traffic Impact Capital Reserves Total Excluded Total General Fund Revenue independent of project $400.Appendix A-1 Summary of City of Cupertino General Fund Revenue Sources in FY 2011/12 1 Economic & Fiscal Impacts of Apple's Current and Future Facilities in Cupertino Apple Inc. Property Tax was $7.000 $315.49 million and Property Tax In-Lieu of Motor Vehicle Fees was $4.000 $1.000 $42.000 $35.000 $5. Inc.893.000 $569.000 independent of project independent of project independent of project independent of project independent of project independent of project FY 2011/12 Budget Basis of KMA Projections Current Cupertino Facilities Future Facilities w/ Apple Campus 2 1 2 For funding City departmental services.42 million Source: City of Cupertino Adopted Budget Fiscal Year 2011-12. A-1 budget rev 11-12 .000 independent of project $130. Per Cupertino's 2009/2010 Comprehensive Annual Financial Report.000 $969.000 $30.000 $100.419.000 $185. Prepared by: Keyser Marston Associates.

City sh.000 $34.000 $3.492.Other Service Charges Fines and Forfeitures Total Revenue Included Deducted from Service Costs Licenses and Permits Charges for Services Zoning and Planning Fees Engineering Fees Senior Center Blackberry Farm / Youth & Teen Programs Total Deducted from Service Costs $4.000 deduct from Community Development deduct from Community Development deduct from Public Works deduct from Recreation deduct from Recreation deduct from Community Development decuct from Community Development deduct from Public Works deduct from Recreation deduct from Recreation FY 2012/13 Budget Basis of KMA Projections Current Cupertino Facilities Future Facilities w/ Apple Campus 2 $12.991.359.807.000 $6. of 1% tax provided by client provided by client.000 $424.000 $165.000 $872.000 $2. value.558.346.) Intergovernmental .000 $3. Filename: \\Sf-fs2\wp\16\16043\001\may 10 fiscal dk. Fees Charges for Services . Revenue Category Included in the Analysis Taxes Property Tax (incl.252.064. of 1% tax extrapolate from existing extrapolate from existing extrapolate from existing resident equivalents rates from Municipal Code no longer paid to cities resident equivalents resident equivalents Prepared by: Keyser Marston Associates. lic.337.000 $650.. cxn.845. In-Lieu of MVLF 2) Sales and Use Tax Transient Occupancy Tax Utility Users Tax Franchise Fees Other Taxes (bus.. rev. transf. provided by client resident equivalents rates from Municipal Code no longer paid to cities resident equivalents resident equivalents est. prop.000 $1. devel.000 assessed value.000 $34.Motor Vehicle Lic. rate is 12% rm.Appendix A-1 Summary of City of Cupertino General Fund Revenue Sources in FY 2012/13 1 Economic & Fiscal Impacts of Apple's Base and Future Facilities in Cupertino Apple Inc.000 $10. A-1 budget rev 12-13 . Inc.558.000 $530.000 $1.000 $0 $93. City sh.

000 $575.504.. not on-going one-time pay-back.000 independent of project one-time rev. indep.000 $0 $0 $0 $25.000 $875.Appendix A-1 Summary of City of Cupertino General Fund Revenue Sources in FY 2012/13 1 Economic & Fiscal Impacts of Apple's Base and Future Facilities in Cupertino Apple Inc. A-1 budget rev 12-13 . not on-going one-time pay-back..000 $100. of project independent of project independent of project one-time rev.729. Revenue Category Excluded from the Analysis Use of Money and Property Investment Earnings Property Rentals Intergovernmental Grants Other Intergovernmental Miscellaneous Specific Revenues State Borrowing Transfers In / Other Revenues Information Technology & Traffic Impact Capital Reserves Total Excluded Total General Fund Revenue independent of project $300.523.000 $22.000 $66.000 $1.49 million and Property Tax In-Lieu of Motor Vehicle Fees was $4. Per Cupertino's 2009/2010 Comprehensive Annual Financial Report. Inc.000 $185. Filename: \\Sf-fs2\wp\16\16043\001\may 10 fiscal dk.42 million Source: City of Cupertino Adopted Budget Fiscal Year 2012-13. indep.667. Property Tax was $7. of project independent of project independent of project independent of project FY 2012/13 Budget Basis of KMA Projections Current Cupertino Facilities Future Facilities w/ Apple Campus 2 1 2 For funding City departmental services. Prepared by: Keyser Marston Associates.000 independent of project $130.000 $315.

000 $8.757.000 $536. Administration. Community Relations.000 $223.000 Administration City Manager Community Outreach City Manager Discretionary Fund $417.000) ($165.000 $19. Government Channel.000 $1.639.000 $4.542. Human Res.000 $100.000 $664.000) ($605.264.) Recreation Service Recreation Administration Leadership 95014 Facilities / Parks / Blackberry Farm / Events Youth & Teen Programs / McClellan Ranch Sports & Fitness / Monte Vista / Creekside Park Senior Center / Stevens Creek Trail / Blue Pheasant (Less) Senior Center (Less) Blackberry Farm / Youth & Teen Programs $370.000 $541.842.000 City Attorney Law Enforcement Law Enforcement Interoperability Project Citizens Option for Public Safety $8. Inc.000 $543.000 $4.000) $3.000 $1.658. Web Site) Administrative Services (incl. Expenditure Category Council and Commissions City Council Commissions FY 2011/12 Budget $313.000 $38.000 $291.980.000 $35.000 Public & Environmental Affairs (incl.000 ($440.000 $89. Accounting. Library.244.Appendix A-2 Summary of City of Cupertino General Fund Budget Expenditures in FY 2011/12 1 Economic & Fiscal Impacts of Apple's Current and Future Facilities in Cupertino Apple Inc.000 Prepared by: Keyser Marston Associates. A-2 budget exp 11-12 . Filename: \\Sf-fs2\wp\16\16043\001\may 10 fiscal dk.000 $1. City Clerk.

000 $39.000 $1.000) ($443.073. Ongoing General Fund transfers to funds that provide City services.000 $3.000 $200.000) $1.212.000 $993.000.000) ($3.000 $1.000 $2.061.977.000 $35.101.000 $41. Source: City of Cupertino Adopted Budget Fiscal Year 2011-12.231.618.000 $1.000) $11.000 Total Expenditures Expenditures Net of Off-Setting Revenues 1 2 Cost recovery items (negative amounts) are from revenue items listed on Appendix A-1.000 $815.000 $2.000 ($412. A-2 budget exp 11-12 .331.000 $12.134.000 ($2.034.696.263. Inc.000 $4.000 $68. Prepared by: Keyser Marston Associates.000 $868.000 $324.000 Transfers Out 2 Transportation Projects & Maintenance Environmental Management / Clean Creeks / Storm Drain Equipment Fund Information Technology Fund Compensated Absence Retiree Medical $750.000 Public Works Administration Engineering Service Center Administration Grounds Streets Facilities Traffic Management (Less) Engineering Fees (Less) Licenses and Permits (Less) Zoning and Planning Fees $670.000 $494. Filename: \\Sf-fs2\wp\16\16043\001\may 10 fiscal dk.800.774.000 $957.Appendix A-2 Summary of City of Cupertino General Fund Budget Expenditures in FY 2011/12 1 Economic & Fiscal Impacts of Apple's Current and Future Facilities in Cupertino Apple Inc. Expenditure Category Community Development Planning Administration Current Planning Mid and Long Range Planning Economic Development Human Service Grants General Building Construction Plan Checking Building Code Enforcement FY 2011/12 Budget $285.000 $225.000 $200.000 $45.000 $2.

) Recreation Service Recreation Administration Leadership 95014 Facilities / Parks / Blackberry Farm / Events Youth & Teen Programs / McClellan Ranch Sports & Fitness / Monte Vista / Creekside Park Senior Center / Stevens Creek Trail / Blue Pheasant (Less) Senior Center (Less) Blackberry Farm / Youth & Teen Programs $391.000 $690.Appendix A-2 Summary of City of Cupertino General Fund Budget Expenditures in FY 2012/13 1 Economic & Fiscal Impacts of Apple's Base and Future Facilities in Cupertino Apple Inc.000 $124.000 $9.420.000 City Attorney Law Enforcement Law Enforcement Interoperability Project Citizens Option for Public Safety $8.000) $3.000 $4.000 Administration City Manager Community Outreach City Manager Discretionary Fund $395. Inc.000 $1.794.000 Public & Environmental Affairs (incl.000 $1.000 $554. A-2 budget exp 12-13 .000 $1.000 Prepared by: Keyser Marston Associates. City Clerk.000 $473.000 $4. Library.000 $316.000 $222.000 $580. Web Site) Administrative Services (incl. Expenditure Category Council and Commissions City Council Commissions FY 2012/13 Budget $251. Administration.000 $21.477.953. Human Res.000) ($165. Community Relations.000 $100. Filename: \\Sf-fs2\wp\16\16043\001\may 10 fiscal dk.000) ($695. Accounting.098.504.000 $45. Government Channel.375.782.000 ($530.000 $35.

835.000) ($5.000 $150. Prepared by: Keyser Marston Associates.000 $2. Inc.218.000 $550.000 $1.355.000) $12.000 $772.039. A-2 budget exp 12-13 .000 $886.Appendix A-2 Summary of City of Cupertino General Fund Budget Expenditures in FY 2012/13 1 Economic & Fiscal Impacts of Apple's Base and Future Facilities in Cupertino Apple Inc.000) Public Works Administration Engineering Service Center Administration Grounds Streets Facilities Traffic Management (Less) Engineering Fees (Less) Licenses and Permits (Less) Zoning and Planning Fees $706.000 $240.861.000 $2.342.152.645.000 $35. Source: City of Cupertino Adopted Budget Fiscal Year 2012-13. Ongoing General Fund transfers to funds that provide City services.000 $0 $2. Filename: \\Sf-fs2\wp\16\16043\001\may 10 fiscal dk.000 $41.000) ($872.000 $41.000 RDA Successor Agency (FY 2012/13 only) Transfers Out 2 Transportation Projects & Maintenance Environmental Management / Clean Creeks / Storm Drain Equipment Fund Information Technology Fund Compensated Absence Retiree Medical Total Expenditures Expenditures Net of Off-Setting Revenues 1 2 $0 $2.000) ($876.601. Expenditure Category Community Development Planning Administration Current Planning Mid and Long Range Planning Economic Development Human Service Grants General Building Construction Plan Checking Building Code Enforcement FY 2012/13 Budget $292.000 ($424.000 $1.000 $4.326.000 $1.018.000 Cost recovery items (negative amounts) are from revenue items listed on Appendix A-1.000 $13.000 $3.000 $100.000 $774.000 $522.150.346.000 ($4.000 $200.728.000 $45.049.

88 17.523 $11.711.159.788.070 2.526 $71.311 $50.449.129 $503.215.649 $56.447 $247.826 $65.551.272 $44.958 $39.589 530.688 $178.554.040 $67.602.517.306.649 6.119.441 $325.025.912.245 $35.040 $0 $8.222 $159.376.572.15 Building SqFt 856.892.484.101.035 $39.955.039 $5.247.833 $627.132.451 2.566.397 $95.197.521 4.075 $1.796.078.169 $153.361.561 $0 $503.610 $159. A-3 Parcels 2010 .689 Tax Rate Area Data From Apple Land Improvemnts $50.040 $0 $9.821 $70.329.688.962 $9.612.300.939.894.291.840 $162.495.571 $189.74 23.312.255 $108.818 $209.466.575 $320.711.799.035 $124.608 $8.202.300.366. Filename: \\Sf-fs2\wp\16\16043\001\may 10 fiscal dk.73 172.259.969.470 $118.570 $92.222 $0 $537. Summary Owner Parcel Total Infinite Loop Apple Owned Total Infinite Loop Apple Leased Total Infinite Loop Total Campus 2 Apple Owned Total Campus 2 Apple Leased Total Apple Campus 2 Total Other Existing Apple Owned Properties Total Other Existing Apple Leased Properties Total Other Existing Apple Properties Total Apple Owned Properties Total Apple Leased Properties Total Apple Properties Data provided by Apple.145.427.894.127.414.041 $299.187.962 Fixtures Personal Property Total Property $289.474.098.031 $721.279.395.747 Total Real Property $159.811 $371.93 102.412 $468.704 $292.198.787.120.835.670.547 $8.017.412 $774.561 $110.579 1.579 2.62 172.705 $474.494.240.788 Imprvmts $0 $1.608 $1.87 132.879 $57.823 $23.808.428 $986.040 2.018.762.526 $0 $178.962.457.547 $0 $10.566.832 $80.781. Inc.117.642 $242.344 $11.73 29.213 $431.554.790 $120.790.867 Prepared by: Keyser Marston Associates.647 $622.80 208.035 $0 $325.429 $145.220 $424.400 $537.223 $1.002 $34.54 120.070.517.589 2.662.608.000 342.912. Address Acres 5.133.Appendix A-3 Cupertino Real Estate Owned or Leased by Apple in 2010 Economic & Fiscal Impacts of Apple's Base and Future Facilities in Cupertino Apple Inc.710 $154.109.074 $0 $23.074 $10.929.443 $66.105 $202.395.787.275 $147.690 $443.61 329.478 $8.146.

Address Acres 5.696.465. Filename: \\Sf-fs2\wp\16\16043\001\may 10 fiscal dk.086 $243.337 2.710 $0 $0 $0 $19.880 1.610 $33.06 214.183.031.796 Tax Rate Area Data From Apple Land Improvemnts $51.652 $263.775 $0 $796.198.968.681 Total Real Property $211.599 $0 $20.120.895 $98.592 $807.748 $1.141.650.605.155.415 $505.727 Imprvmts $0 $1.422.350.705.021 1.836.441.773.336 $131.549.897 $203.067 $624.751 $205.599 $11.690.492.955 Fixtures $0 $35.65 306.761.321 Personal Property Total Property $142.15 73.292.552.834 $753.128.639 $104.594.530.620.173.552 $723.595 $287.579 2.820 $217.608.159 Prepared by: Keyser Marston Associates.820.163.761.934 $288.336.722 $0 $723.719.650.937 $150.055 $122.444 $2.094 $1.398.598.346 $431.216 $592.358 4.900 $51.784.179 $165.576 $354.081.847.417 $149.528.046.336.824.74 23.901 $57.345 $52.598.298.859 783.428.722 $125.001 $19.435.504.414 $52.358.721 $867.916 6.40 91.605.295.859 2.049 $241.435.784. A-3 Parcels 2012 .251.711.024 $54.129 $35.864.312 $379.025 $34.775 $202.650.046 $724. Summary Owner Parcel Total Infinite Loop Apple Owned Total Infinite Loop Apple Leased Total Infinite Loop Total Campus 2 Apple Owned Total Campus 2 Apple Leased Total Apple Campus 2 Total Other Existing Apple Owned Properties Total Other Existing Apple Leased Properties Total Other Existing Apple Properties Total Apple Owned Properties Total Apple Leased Properties Total Apple Properties Data provided by Apple.88 17.000 342.173.610 $1.645 $81.784.356.732.585 $45.198.907 $160.534.388 $503.478.799.140.451. Inc.167.710 $1.213.579 1.077 $44.077 $0 $131.154.426 $86.696.517 $60.62 163.186 $142.129 $20.665 $154.333.711.508.315 $6.Appendix A-3 Cupertino Real Estate Owned or Leased by Apple in 2012 Economic & Fiscal Impacts of Apple's Base and Future Facilities in Cupertino Apple Inc.107.454 $0 $52.610 $32.454 $46.980 $406.060.353.691.163.37 163.579 $336.37 45.987 $604.645 $0 $592.388.805 $796.947.05 Building SqFt 856.133.783.226 $136.91 119.705.

229 $120.014 ($238.992 $649 $1.059 $359.039 $76.225 $259.117 $156.712) ($9.475 $82.000s) $48. Drug Stores) Convenience Retail Food Svcs.577.009) $3. income $8. income Sunnyvale Per Capita Aggregate 2009 Demand Demand Taxable Import / Potential Potential Sales (Export) ($1.751 $46.116 $112.617 $1.178 $32.136 2.615 $5.196 $9.369 $74.153 $987 $1.573 $135.966 ($88.734) $7.000s) $35.049 $435.586.118 $81.781 $76.016 ($82.022 $196.303 $4.109 $14.833 $273.996 $8.365) ($36.603.613 $2. Population and income per U.101) $53.972 $140.388 income Retail Sales Category Comparison Retail General Merchandise Clothing and Accessories Home Furnishings.839) $20.106 $85.075 $117. Matl.567 $163.198 $2.376 $874 $2.081 $178.000 $999 $1.666 $758 $1.406 $1.301 $70.957 $12.000s) $42.956.257.605 $168. Filename: \\Sf-fs2\wp\16\16043\001\may 10 fiscal dk.158 $2. Sales "not available" are omitted by BOE because their publication would result in the disclosure of confidential information.703) ($69.522 $189.861 $627 $1.495 $269.029 $74.S.048 ($212.663 $73.191 ($33.713 ($21.837 $106.370 $122.338) $1.400 $2.915 $255.739 pop'n.3% 11.000s) 2 ($1.677 $1.8% 4.4% 2.319) $302.117.030 $1.583 $716 3.Appendix A-4a Taxable Retail Sales Import and Export 2010 Economic & Fiscal Impacts of Apple's Base and Future Facilities in Cupertino Apple Inc.131 $964 $85.096 ($14.000s) 1 Capita 2 Income 2 7.1% $1.705.229 $5.272 $358.242.110) $560.203 $857 $733 $1.618 $31.702 $8.102 $449.098 $649.674 $28.513 $96.150.028.981 $85.469 $5.513 $60.200 $3. Taxable Sales in California During 2009.000s) 2 ($1.175 ($32.3% 2.141.994 income $2.000s) 2 ($1.167 $1.236 $137.495.948 $531.241) $525.704) n/a n/a $211.800 $69.456 $125. A-4a leakg 2010 .276 agg.871 ($10.124 $112. Drinking Places Bldg.485 $134. $36.402 $4.992 $10.000s) 1 ($1.669 $33.835 $1.000s) 1 ($1.3% 2.001 $857 $1.156 $28. Appliance Other Retail (incl.160 $3.253 $283.525 income $5.945 agg.239 $80.0% 25.864 $118.0% 1.0% $1.549) $72.304 $50.530 $692 $135.778 $417.852 $73.3% 6. Nine-County Bay Area 2009 % Taxable Per Sales Capita Per ($1.134 agg.499 $196.550) $135.188 income $4.374 $653.464.161 n/a n/a $35.044 $408.017 $57.525 $126.624 $65.098.362 $283. and Garden Equip.861 ($9.794 $6.597 $106.665 $74.606 $8.125.345 $1.922 $15.603) $8.180 ($49.639.474 $50.988 ($102.762) $157. Automotive Retail Gasoline Stations Motor Vehicle.529 $10.7% 3.559 $114.0% 3.620 $1.164 $828 $709 $1.849 $836 $196.478 $441. Parts Dealers Total Taxable Sales Cupertino Per Capita Aggregate 2009 Demand Demand Taxable Import / Potential Potential Sales (Export) ($1. Inc..885 $247.000s) 2 ($1.959 $1.316.329.000s) 2 ($1.458 $966 $1.549.768) $1.404 $103.563.645 $1.000s) 2 ($1.517 $15.000s) 1 ($1. Prepared by: Keyser Marston Associates.090 1 2 California State Board of Equalization.972 ($20.679 ($104.879 $52.959 $11. Census American Community Survey: 2005-2009 5-Year Estimate and 2010 Census data sets. income Santa Clara Per Capita Aggregate 2009 Demand Demand Taxable Import / Potential Potential Sales (Export) ($1.

631 $5.477) $127.244.607.574 $1.608) $37.S.985.799 $182.668 $739 $144.971) $102.475 $128.289 $6.355 $104.204 $1.483 $2.767 ($96.229.019 ($27.492) $63.738 $115.525) $612.329 $387.015 $1.617 income $6.741 2.180) ($59.412 $283.496 $1.823 $88.954.253 $17.335.Appendix A-4b Taxable Retail Sales Import and Export 2012 Economic & Fiscal Impacts of Apple's Current and Future Facilities in Cupertino Apple Inc.007 ($20.810 $200.432 $15.671 $14.400 $4.316 $1. Prepared by: Keyser Marston Associates.537.035 $30.312 $463.000s) ($1.609 $8.147 $205.314 $2.113 $6.6% 1.9% $1.189 $671 $1.239 $4.620 agg.606 ($175. Appliance Other Retail (incl.742 $12.000s) $39.754 $126.753 $1. $39.0% 3.883 $32.289 $76.938 $124.965 income $2. Census.061 $46.266 pop'n.558 ($17.000s) 1 Capita 2 Income 2 7.474 $1.293.228 ($13.Taxable Sales in California Report By Type of Business for Cities and Counties .264 $914 $771 $1.982 $480. Population and income per U.478 income Retail Sales Category Comparison Retail General Merchandise Clothing and Accessories Home Furnishings.164 $1.012 $9.640 $130.664 $1.883 $835 $197.801.572 ($105.553) $1.968) $102.044 $55.836 $143.700 $387.768) $41.691 $70.786 ($123. Nine-County Bay Area 2010 % Taxable Per Per Sales Capita ($1.479 $133.891 $11.194 $972 $95. American Community Survey.113 $296.636) $8.430 $4.547 $184.201 $78.990 $260.608 $37.352 $490.152 $58.643 $191.1% 10.524.696 $316.970 $157.000s) ($1.524.734 $758 $1.748) $72.460.453 $5.912 $313.528) n/a n/a $247.772.3% 2.7% $1.2010.199 $64.050 ($54.034) $91.3% 6.654 $325.091 $5.033) $2.2% 2.033 $872 $1.429 $1.259 $187.2% 1.365 ($27.304) $479.000s) ($1.819 $190.219 ($124. Matl.517 ($63.000s) ($1.391 $29. income Sunnyvale Per Capita Aggregate 2010 Demand Demand Taxable Import / Potential Potential Sales (Export) 2 2 1 ($1. Drinking Places Bldg. Drug Stores) Convenience Retail Food Svcs.312 $2.000s) ($1.015 $583. Automotive Retail Gasoline Stations Motor Vehicle.584 agg.436 ($17.203 ($32.523 income $4.265 $68.052 $99.682 $1.240 $4.857 $109.751.807 $50.657 $1.176. 2007-2011 5-Year Estimates.081.266 $915 $772 $1.923 $104.727 $3.773 $61.624 ($38.910 $191.3% 24.821 $655.566 $4.640 ($188.667 $739 3. Inc.465) $9.790 $88.430 $150. income $8.421) $1.000s) ($1.009 $1.661.260 $12. Filename: \\Sf-fs2\wp\16\16043\001\may 10 fiscal dkA-4b leakg 2012 .000s) $51.000s) ($1. income Santa Clara Per Capita Aggregate 2010 Demand Demand Taxable Import / Potential Potential Sales (Export) 2 2 1 ($1.116.9% 3.105 $1.002 $84.649 $193.311 $736.520 $269.879) ($13.474. and Garden Equip.323 $93.612) ($40.381 $141.499 $609.811 $11.049 $120.395 $153.7% 4.878 1 2 CA Board of Equalization . Sales "not available" are omitted by BOE because their publication would result in the disclosure of confidential information. Parts Dealers Total Taxable Sales Cupertino Per Capita Aggregate 2010 Demand Demand Taxable Import / Potential Potential Sales (Export) 2 2 1 ($1.194 $672 $1.514 $883 $2.000s) ($1.477 $9.076 $76.636 $69.000s) ($1.875 $112..843 $145.985 $81.166 $1.981.937 $425.843 agg.000s) $44.532 $1.

645 $23. Prepared by: Keyser Marston Associates.159.400 payroll Santa Clara Residents Sales % Potential Demand Capture Spending Potential in Sta.973 $2.541 $2. A-5 2010 sales .186 $17.643 $4.204 $2. Nine-County Bay Area Sales 2009 % Taxable Per Per Sales Capita ($1.263.193 $7.310.685 $3.388 income Retail Sales Category Cupertino Residents Sales % Potential Demand Capture Spending in Potential in ($1.451 $599.433 $3.213 $2.432 $3.176 $2.195 $9.438.674 $28..584 $2. 4 Sunnyvale $127.676 $1.771 $6.758. Taxable Sales in California During 2009.623 $31.381.983.811 $1.603.125.831 $9.601 $4.606 $1.874 $3.456.992 $649 $1.890 $1.794 $6.S.093 $18.3% 11.878.300 payroll Comparison Retail General Merchandise Clothing and Accessories Home Furnishings.128 $3.117. Matl.847 $20.000s) 3 Cup.137 $2.705.1% $3.655 $1.549.647 $8.563.844 $2. multiplied by the % of per capita income spent on each taxable sales category in the Bay Area.986 65% 90% 79% 73% $2.645 $1.200 $3.198 $2.469 $5.492 $1. per BOE.362.164 $13.351.545 $4.719 $1. Census American Community Survey: 2005-2009 5-Year Estimate and 2010 Census data sets.355 $496.639.141.618 $2.337.497 $4.567 $4.692.606 $8. and Garden Equip.858 $2.218 $1.493 $2.150. KMA assumption.707 $7.690 $31.724 1 2 3 4 California State Board of Equalization.000s) 3 Sun.196 $9.202 $3.417.242.0% $4.475 $7.324 $4. Drug Stores) Convenience Retail Food Svcs. Drinking Places Bldg.145.255.922 $15.329.112 $1.293 $1.394.3% 2.143.733 $3.577. Demand potential based on Apple payroll in each of the cities.157 $7.0% 1.3% 2.549 $2. Automotive Retail Gasoline Stations Motor Vehicle.000 $999 $1.203 $857 $733 $1.300 payroll Sunnyvale Residents Sales % Potential Demand Capture Spending Potential in in ($1.815 $4.272.200 $13.389.117.117 $2.476.849.579 90% 75% 90% 80% 84% 90% 90% 80% $2. Appliance Other Retail (incl.583 $716 3.250 $207. Inc.272 $5.506 75% 20% 90% 90% 70% 65% 70% 90% $3. Filename: \\Sf-fs2\wp\16\16043\001\may 10 fiscal dk. Bay Area population and income per U.000s) 3 Clara 4 Sta.702 $8.959 $11.506.7% 3.773.461.378.229 $5.484 90% 45% 45% 90% 72% 60% 80% 20% $3.309 $2.710 65% 5% 32% 59% $2.Appendix A-5 Taxable Retail Sales Generated by 2010 Cupertino Facilities Employees Economic & Fiscal Impacts of Apple's Current and Future Facilities in Cupertino Apple Inc.316. $36. 4 Cupertino $126.988.8% 4. in ($1.288.4% 2.467 $4.978 $2.0% 25.161 90% 90% 90% 86% $1.046.739 pop'n.999 $2. Clara $80.809 $2. Parts Dealers Total Taxable Sales $8.917 $1.252 $5.136 2.845 $1.000s) 1 Capita 2 Income 2 7.747.0% 3.303 $4.779.624 $65.3% 6.253.

091 $5. per BOE.167 $1.537.748.520 1 2 3 4 CA Board of Equalization .266 pop'n.106 $3.139 $5. Drug Stores) Convenience Retail Food Svcs.522 $1.888.000s) 3 Sun.239 $4.982 90% 45% 45% 90% 72% 60% 80% 20% $4.765 $12.159.698 $5.391 $29.081 $39.948 $3.S.401.700 payroll Santa Clara Residents Sales % Potential Demand Capture Spending Potential in Sta. KMA assumption.241 $2.0% 3.019 $1.299 $10.732 $6.3% 2.229.917.783 $5.646 $2.314 $27.9% $5.043 $17.Taxable Sales in California Report By Type of Business for Cities and Counties . Population and income per U.729 $2.718 $21.952 $7. Inc.649 $2.220 $8.383.848 $1.609 $8.000s) 3 Cup.496 $1.477 $9.309.661.981.548 $1.012 $9.667 $739 3.860.349 $24. 4 Cupertino $159. Prepared by: Keyser Marston Associates. multiplied by the % of per capita income spent on each taxable sales category in the Bay Area.460.739 $5.9% 3.Appendix A-6 Taxable Retail Sales Generated by 2012 Cupertino Facilities Employees Economic & Fiscal Impacts of Apple's Base and Future Facilities in Cupertino Apple Inc. Filename: \\Sf-fs2\wp\16\16043\001\may 10 fiscal dk. Parts Dealers Total Taxable Sales $8.051 $2.342 $10.333 65% 5% 33% 59% $3.412 $744.649 $1.344 $1.312 $2.751. $39.654 65% 90% 78% 70% $3.055.738 $1.147 $3.265 $68. 4 Sunnyvale $160.595.775.3% 24.893 90% 70% 90% 80% 83% 90% 90% 70% $2.025.253 $17.720 $4.081.653 $10.972 90% 90% 90% 85% $2.779.000s) 1 Capita 2 Income 2 7.2% 1. Drinking Places Bldg.002 $16.913 $2.264 $914 $771 $1.400 payroll Sunnyvale Residents Sales % Potential Demand Capture Spending Potential in in ($1. Nine-County Bay Area Sales 2010 % Taxable Per Per Sales Capita ($1.713. Demand potential based on Apple payroll in each of the cities.701 $5.124 $596.936 $3.661.084.692 $3.293. Clara $101.548.187 $3.200 payroll Comparison Retail General Merchandise Clothing and Accessories Home Furnishings.443 $264.519 $8.2010.977 $3.6% 1.722 $3. Automotive Retail Gasoline Stations Motor Vehicle. and Garden Equip.640.767 $4.566 $4.984 $3.478 income Retail Sales Category Cupertino Residents Sales % Potential Demand Capture Spending in Potential in ($1.164 $1.685.091 $2.474.7% 4. Appliance Other Retail (incl.501.709 $6.877.784 $3.1% 10.455.537 $4.954.097 $3.000 $39.362 $4. Matl.391 $23.114 $5..006 75% 20% 90% 60% 61% 65% 70% 90% $3. A-6 2012 sales .573.325.625 $3. American Community Survey.000s) 3 Clara 4 Sta.080.625.2% 2. Census.844.360 $2.290 $1.741 2.7% $4.272 $1.801.705. 2007-2011 5-Year Estimates.320.122 $4.825.189 $671 $1.807.386 $5.244.453 $5.261 $1.113 $6. in ($1.540.364 $6.3% 6.772.891 $11.682 $1.176 $10.027.

975 $4.155 $15.531.239 $4.155 $5.038.6% 1. Prepared by: Keyser Marston Associates.859 $14.609 $8.618 $7.343 $5.253 $17.128 $7.Taxable Sales in California Report By Type of Business for Cities and Counties . in 3 4 ($1.388 $60.830 $58.S. Population and income per U.537.422 90% 45% 45% 90% 72% 60% 80% 20% $6.189 $671 $1.312 $2.333. Sunnyvale $245.529 65% 90% 78% 70% $4.702. Automotive Retail Gasoline Stations Motor Vehicle. Matl. Clara $174.355 $4.3% 2.234 $8.639.477 $7. Appliance Other Retail (incl.0% 3.504 $884. Drinking Places Bldg.169 $15.000s) Cup.000s) Sun.946 $2.410 $392.751.772.9% 3.226 $4.379 $3.696 $2.674.000s) Capita Income 7.453 $5.697 $26.394 $18.270 90% 70% 90% 80% 83% 90% 90% 70% $5.547 $2.262 $7.752 $2.474.391 $29.714 $1. Demand potential based on Apple payroll in each of the cities.807 $9. Filename: \\Sf-fs2\wp\16\16043\001\may 10 fiscal dk.018 $9.682 $1.009 $7.710.641.129.041.833. multiplied by the % of per capita income spent on each taxable sales category in the Bay Area.811 $10.477 $9.353 1 2 3 4 CA Board of Equalization .266 pop'n.2% 1.333 65% 5% 33% 59% $4.141 $6.265 $68.016 $8.411.011 $7.414 $5.934 $4.924.618.959.681 $4.814.388.971 $7.741 2.891 $11.955 $2. Census.559 $4.971 $7.244. Cupertino $236.498 $15.089. Nine-County Bay Area Sales 2010 % Taxable Per Per Sales Capita 1 2 2 ($1.418 $25.293.2010. per BOE.264 $914 $771 $1.133 90% 90% 90% 85% $4.966 $43.798 $2.2% 2.248.460.847 $3.954.032.463.082 $12.566 $4.9% $7.599 $4.667 $739 3.801.000s) Clara Sta.661.081.083 $4.589 75% 20% 90% 60% 61% 65% 70% 90% $5.136.1% 10.400 payroll Sunnyvale Residents Sales % Potential Demand Capture Spending Potential in in 3 4 ($1.572 $5.113 $6.012 $9.983.027 $4.092 $42.170 $10.072.857 $5.496 $1.792 $7.164 $1.979 $4.229.150 $36. $39.485 $18. and Garden Equip..807.091 $5.981.Appendix A-7 Taxable Retail Sales Generated by Future Cupertino Facilities with Apple Campus 2 Employees Economic & Fiscal Impacts of Apple's Base and Future Facilities in Cupertino Apple Inc.676. Parts Dealers Total Taxable Sales $8.300 payroll Santa Clara Residents Sales % Potential Demand Capture Spending Potential in Sta. American Community Survey.101 $2. Inc.344 $34.229. Drug Stores) Convenience Retail Food Svcs.236.704 $5. 2007-2011 5-Year Estimates. KMA assumption.892.3% 6.993 $5.475 $4.950 $6.7% 4.048 $3.312.800 payroll Comparison Retail General Merchandise Clothing and Accessories Home Furnishings.792 $2.339.869.3% 24.478 income Retail Sales Category Cupertino Residents Sales % Potential Demand Capture Spending Potential in in 3 4 ($1.7% $6. A-7 future sales .289.077.361 $4.

705.555 $1.520 $213.387 $27.262 $27.137 $22.300 $12.924.835 $884.431 $1.309.141 $26.522 $104. Cities of Cupertino.785 $2.883 $27.475 $12.394. spending of the residents of one city in each of the other two not included.477 $8.625 $27.093 $24.143.845 $4.924 $59.698 $16.513 $4.433 $186.766 $46.993 $41.692.551 $6.897 $15.944 $496. Matl. Apple currently annually pays use taxes for purchases from vendors.101 $66.346 $113.386 $5.219.095 $31.834.411.333.339 $2.263.Appendix A-8 1 Annual Sales Tax Revenues Generated by Cupertino-based Apple Employees. However.486 $4.767 $230.041.674.257 $5.482 $3.685 $14. Total sales taxes from the spending of Apple employees in their cities of residence.535 $493.204 $23.537 $17.641. Cupertino Potential Sales 2 3 Spending Tax 1% sales Retail Sales Category 2010 Cupertino Facilities Comparison Retail Convenience Retail Food Services and Drinking Places Bldg.878.968 $2.248. and Garden Equipment Automotive Retail Future Facilities with Apple Campus 2 Comparison Retail Convenience Retail Food Services and Drinking Places Bldg.890 $9.621 $4.017 $4.815 $4.427 $12.011 $24.325.924 $9.635 $4.466 $23.103 $7. and Garden Equipment Automotive Retail Sunnyvale Potential Sales 2 3 Spending Tax 1% sales Santa Clara Potential Sales 2 3 Spending Tax 1% sales Three City Total 4 Potential Sales Spending Tax $9.288.476. City of Santa Clara 2011-12 Annual Budget .272 $169.622 $17.110 $7.167 $114. 2 3 4 Prepared by: Keyser Marston Associates.314 $78.549 $38.946 $153. Apple purchase data do not indicate what portion of purchases are taxable.092 $120.645 $60.831 $596.844.934 $314.381. and Garden Equipment Automotive Retail $12.736 $8.888 $1.084.035 $26.187 $15.807.089.504 $79.743 $11.775 $1.627.252 $5.559 $72.164 $218.775.361 $15.353 $368.016 $22.586 $268. A-8 taxes . Matl.691 $36.983.637.724 $174.848 $38.129.391 $33.466 $272.128 $342.954 $21.548 $88.332 1 In addition to sales taxes generated by employee spending.160 $40.293 $98.493 $1.492.422 $13.063 $7.976. See Tables A-4 through A-7.236.845 $99.289.848 $10.461.423 $71.046. Inc.455.224 $719.236 $4.888.133.383.303.355 $43.877.494 $139.056 $7.798 $159.598 $2.220 $13. and Santa Clara Economic & Fiscal Impacts of Apple's Base and Future Facilities in Cupertino Apple Inc. data from the City of Cupertino do not indicate that a significant portion accrue to the City. City of Sunnyvale Adoped Budget and Resource Allocation Plan Fiscal Year 2011/2012.710.131.869.988.967.309 $235. use taxes generated by Apple vendor purchases have been conservatively excluded.548.328 $2.194 $41.154 $128.741 $6. Matl.186 $43.032. For purposes of this analysis.416.849.255. Sunnyvale.887 $3.356 $4.646 $275.486 $2.015.137 $21.949.411 $42.326.074 $49.324 $13.792 $180.922.186 $1.592 $1.649 $47.124 $53.265 $7.159.573.506.411 $2.767 $3.699 $596.922 $49.959.448 $1.625.611 $18.Budget Brochure.438.718 $57.218 $73.964 $3.231 $16.795.375 2012 Cupertino Facilities Comparison Retail Convenience Retail Food Services and Drinking Places Bldg. Per City of Cupertino Adopted Budget Fiscal Year 2011-12.733 $12.112 $31.869.150 $98.732 $7.704 $420. Filename: \\Sf-fs2\wp\16\16043\001\may 10 fiscal dk.116.167 $121.748.351.243 $34.755 $4.415 $77.486 $73.320.679 $18.713.344 $49.873.812 $1.362.

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