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NEWS RELEASE

12/09/91

CONTACT: Stanford University News Service (415) 723-2558

Palo Alto made $29.7 million from Stanford commercial lands

STANFORD -- Tax and net utility revenues to Palo Alto from Stanford's commercial lands within the city totaled $29.7 million in 1990-91, according to a city staff study.

That was 39.2 percent of the city's income from such sources, the study found.

The income came from property tax and state aid ($1.42 million), sales tax ($5.34 million), net utility sales ($21.50 million) and the new utility users tax ($1.43 million), according to the report.

The latest figure is $12.3 million higher than the 1985 total of $17.4 million, an increase of 70 percent. However, the report noted that an exact comparison was not possible because data was derived from a variety of sources over different time periods, and because of the addition of the utility users tax in 1988.

"Revenues to the City of Palo Alto from Stanford lands have remained fairly consistent at slightly under 40 percent," the report said. The 1991 total represents a dip of eight-tenths of a percent since 1985 as a share of the city's income.

At the same time, the report pointed out that costs incurred by the city (other than the purchase of utilities) in providing services to Stanford lands are not included.

Stanford's commercially developed lands - primarily the Shopping Center, Professional Center and Research Park - are annexed to Palo Alto and form 5.7 percent of the city's total acreage. Those properties are subject to city taxes and regulations. The bulk of the academic campus lies in unincorporated Santa Clara County.

Property taxes and state aid from Stanford lands were 17.6 percent of the city's income from that source; sales taxes formed 42.6 percent of that source; net utility income was 41.4 percent; and the utility users tax provided 43.5 percent of the income from that source.

A 1963 city report showed that Palo Alto's income from Stanford lands totaled $1.3 million. Since then, the total has steadily grown, to $2.8 million in 1969, $8.1 million in 1980, $17.4 million in 1985 and $29.7 million in 1991.

The report was signed by Virginia Harrington, senior financial analyst; Emily Harrison, finance director; and June Fleming, assistant city manager.

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