Geography of Public Finance in San Mateo County, California

A thesis submitted to the faculty of San Francisco State University in partial fulfillment of the requirements for the degree Master of Arts in Geography by Michael Dean Hitchcock

San Francisco, California

July, 1994

Copyright by Michael Dean Hitchcock 1994

This thesis examines the patterns of local government revenues and expenditures for the 20 incorporated cities of San Mateo County, California. Revenues and expenditures are correlated with economic and demographic variables to measure the degree to which government finances can be predicted by the characteristics of the population and the structure of the economy. A multiple regression analysis for the years 1970, 1980, and 1990 revealed that there was no consistent pattern in the relationship between demographic and economic characteristics and the revenues and expenditures of local government. The most important variable in predicting expenditure was the amount of revenue available. A multiple regression analysis of changes in revenue and expenditure from 1980 to 1990 showed that residential construction was the factor most closely associated with higher revenues and higher expenditures. When the effects of residential construction on revenue are taken into account, the effect on expenditure is insignificant.

Table of contents

Chapter 1: Introduction
Chapter 2: Empirical Studies of Public Revenues and Expenditures
Chapter 3: Methodology
Chapter 4: Structural Characteristics of San Mateo County Cities
Chapter 5: Special Districts and Redevelopment Agencies
Chapter 6: Local Government Revenues
Chapter 7: Local Government Expenditures
Chapter 8: Statistical Analysis of Revenues
Chapter 9: Statistical Analysis of Expenditures
Chapter 10: The Relationship of Revenue and Expenditure to Development, 1980-1990
Chapter 11: Conclusion
References
Appendix A: Structural Variables
Appendix B: Revenue and Expenditure Data
Appendix C: Building Permits Data
Additional Background Data

List of Tables

1. 1970 Census Part A
2. 1970 Census Part B
3. 1980 Census Part A
4. 1980 Census Part B
5. 1990 Census Part A
6. 1990 Census Part B
7. Changes in Census Variables 1970-1990, Part A
8. Changes in Census Variables 1970-1990, Part B
9. Manufacturing and Wholesale Employment, 1967-1987
10. Retail and Service Employment, 1967-1987
11. San Mateo County Land Use, 1990
12. Land Use, Percentage of All Land, 1990
13. Land Use, Percentage of Developed Land, 1990
14. Population and Housing Unit Density, 1990
15. Special District /Redevelopment Agency Expenditures, 1990
16. Local Government Revenues, 1990
17. Local Government Revenues Per Capita, 1990
18. Local Government Revenues, Percentage by Source, 1990
19. Local Government Revenues, 1980
20. Local Government Revenues Per Capita, 1980
21. Local Government Revenues, Percentage by Source, 1980
22. Local Government Revenues, 1970
23. Local Government Revenues Per Capita, 1970
24. Local Government Revenues, Percentage by Source, 1970
25. Changes in Per Capita Revenue, 1970-1990
26. Local Government Expenditures, 1990
27. Local Government Expenditures Per Capita, 1990
28. Local Government Expenditures, Percentage by Function, 1990
29. Local Government Expenditures, 1980
30. Local Government Expenditures Per Capita, 1980
31. Local Government Expenditures, Percentage by Function, 1980
32. Local Government Expenditures, 1970
33. Local Government Expenditures Per Capita, 1970
34. Local Government Expenditures, Percentage by Function, 1970
35. Local Government Expenditures, Per Capita Changes 1970-1990
36. Building Permits, 1980-1988
37. Building Permits, Percentage by Category 1980-1988

List of figures

1. Consumer Price Index, 1970-1990
2. ABAG Land Use Categories
3. Revenue Categories
4. Expenditure Categories
5. Building Permit Categories
6. Regional Setting
7. Significant Unincorporated Areas: San Mateo County
8. Industrial Areas: San Mateo County
9. Cities: San Mateo County
10. Affluent Bedroom Communities
11. Central Cities
12. Retail Areas: San Mateo County
13. Office Centers: San Mateo County
14. Inner Cities in the Suburbs
15. Typical Suburbs
16. Smaller Commercial Centers
17. Coastside Communities
18. Unique Cities
19. Special Districts Serving Incorporated Cities
20. Financial Transactions of Special Districts
21. Percentage of Expenditures by Special Districts, 1990
22. Percentage of Expenditures by Redevelopment Agencies, 1990
23. Total Revenue Per Capita, 1990
24. Revenue: San Mateo County Cities
25. Property Tax Per Capita, 1990
26. Sales Tax Per Capita, 1990
27. State/Federal Transfers Per Capita, 1990
28. Current Service Charges Per Capita, 1990
29. Other Taxes/Revenues Per Capita, 1990
30. Allocated Special District/RDA Revenue Per Capita, 1990
31. Per Capita Revenue Changes, 1970-1990
32. Revenues by Source
33. Cities Reliance on Revenue Sources
34. Total Expenditures Per Capita, 1990
35. Expenditures: San Mateo County Cities
36. General Government Expenditures Per Capita, 1990
37. Health/Safety Expenditures Per Capita, 1990
38. Community Development Expenditures Per Capita, 1990
39. Transportation Expenditures Per Capita, 1990
40. Water/Sewer Expenditures Per Capita, 1990
41. Culture/Leisure Expenditures Per Capita, 1990
42. Percentage of Expenditures by Category
43. Per Capita Expenditure Changes, 1970-1990
44. City Expenditures by Category, 1990
45. Revenue Correlations, All Years 45. Revenue Correlations, All Years
46. Revenue Correlations, 1990
47. Revenue Correlations, 1980
48. Revenue Correlations, 1970
49. Per Capita Total Revenue Regression
50. Per Capita Property Tax Regression
51. Per Capita Property Tax Regression, Limited Variables
52. Per Capita Sales Tax Regression
53. Expenditure Correlations, All Years
54. Expenditure Correlations, 1990
55. Expenditure Correlations, 1980
56. Expenditure Correlations, 1970
57. Expenditure Regression
58. Expenditure Regression, Including Revenue
59. Building Permits and Revenue
60. Building Permits and Per Capita Revenue
61. Building Permits and Expenditures
62. Building Permits and Per Capita Expenditure
63. Building Permits and Expenditure (Revenue Included)
64. Building Permits, Per Capita Expenditure and Revenue
46. Revenue Correlations, 1990
47. Revenue Correlations, 1980
48. Revenue Correlations, 1970
49. Per Capita Total Revenue Regression
50. Per Capita Property Tax Regression
51. Per Capita Property Tax Regression, Limited Variables
52. Per Capita Sales Tax Regression
53. Expenditure Correlations, All Years
54. Expenditure Correlations, 1990
55. Expenditure Correlations, 1980
56. Expenditure Correlations, 1970
57. Expenditure Regression
58. Expenditure Regression, Including Revenue
59. Building Permits and Revenue
60. Building Permits and Per Capita Revenue
61. Building Permits and Expenditures
62. Building Permits and Per Capita Expenditure
63. Building Permits and Expenditure (Revenue Included)
64. Building Permits, Per Capita Expenditure and Revenue

List of appendices

Appendix A. Structural Variables
B. Revenue and Expenditure Data
C. Building Permits Data