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The analysis considers two scenarios,with fiscal disparities(the current system)and without fiscal disparities(a hypothetical scenario).The second scenario is included to Indicate how elimination of the Fiscal Disparities Program might impact the results.The assumption with the second scenario(without Fiscal Disparities)is that the tax rates are adjusted to generate the same level of tax revenue. ideally one would like to have this analysis completed for Roseville.While the study doesn't report an analysis of Roseville's data,it does provide a case example of a developed city that,like Roseville,is a net contributor to the Fiscal Disparities Program.I understand that the city analyzed is Bloomington. The annual fiscal results for the city are shown in Figure 94 with the numerical results given in Figure 95. Notice that the results are expressed per housing unit for the five residential alternatives,and per 1000 square feet for the nonresidential uses.With the exception of the high value single family unit,the residential prototypes add more to city expenditures than to revenues and result in net deficits.Retail has the largest negative fiscal results.The costs for police and fire protection are major contributors to the negative impact of retail.To apply this result to the proposed retail establishment for County Road C,one would need to multiply the total per thousand square feet by the size of the proposed facility. Unlike retail,office and industrial uses have positive contributions to the fiscal impact for the city. The results for the city without the fiscal Disparities Program are shown in Figures 96 and 97.The report states that without the Fiscal Disparities Program,tax rates in this city would decrease for residential properties and increase for nonresidential uses. Notice that the net fiscal effect for retail is still negative. The analysis also estimates the fiscal impact for the school district and the county for each alternative land use.I won't comment on those results because the focus here is on the fiscal impact for the city. However,the results for all three jurisdictions are shown graphically in Figures 106 and 107. Two additional comments are important.First,the negative fiscal impact of retail for the city is robust across various types of cities analyzed in the report.These results are not unique to the particular characteristics of the city chosen for this example. Second,Increasing the amount of retail increases the number of lower paid jobs in Roseville,which increases the amount of lower cost housing the city is required to have.Thus,adding more retail has a negative impact on the city's fiscal position both because of the negative impact of retail itself,and also because of the negative impact of the additional lower cost housing. Thank you for reading my thoughts on this topic. Sincerely yours, 7 (tom Z4 Vernon R.Eidman Professor Emeritus Department of Applied Economics University of Minnesota