1. Tax income
The District receives a portion of the property tax on an annual basis. The District share is 1.3 % of the property tax for both residential and commercial properties that have addresses within our boundaries. On a $1 million dollar property that would result in tax income of $130.
2. Building and other property
The District owns our office building at 525 Veterans Blvd. in Redwood City. There are no loans or outstanding debts on the building. That is the only building or property owned by the District.
3. EBIDA Share
The District has a profit sharing arrangement with Sequoia Hospital. In years that the hospital achieves a certain performance threshold, dollars are generated for the District. This agreement is a long-term that ends in 2046.
4. Pension obligation
The District operated Sequoia Hospital from 1950-1996 and is responsible for pension payments for employees from that period. Through an agreement with Sequoia Hospital that annual pension amount is reimbursed by the hospital resulting in a net-zero expense-income situation for the District.
The District invests a portion of reserve funds in income generating instruments however government rules restricts such investments to a very conservative and “risk-free” investment strategy.
The District maintains reserves that can either be used for special allocations or to pay for administrative and overhead expenses including every other year elections. As the District has adopted a policy of spending 100% of all current tax funds on community health projects, no current tax funds are used for administrative expenses.
The District budget is approved each June by the Board of Directors. The budget is annual and is monitored by the Board at each Board meeting.
The financial performance of the District is audited annually.