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~ TISCHLER & _~.1Nc. 4701 Sangamore Road Suite N210 Bethesda. MD 20816 (301) 320-6900 Fax:(301)32Q-4860 80 Annanrlale R08d rasadena, CA 91105- 1404 (818) 7QtH170 Fax: (818) 790-6235 (800) 424-4318 FlSCallmp3CI Analysis . Capital FacilityAnaJr.iis . Imp;r;:I Fee Systems . Growth POlicy Planning . :::anomie and Mar1<et Analysis MUNIES, FISCAlS & CRIM ~iSCal impact systems tailored lor each community I. DESCRIPTION OF PROPOSED SERVICES AND PRODUCTS 1. Oualitv Control. We believe a major reason for TA's national reputation for comprehensive fiscal analysis is the quality control approach to our work products. We bring a udevil's advocate" approach to this assignment. That is, we will evaluate the information and data in terms of being supportable and sustainable. Another part of the quality control consideration is our national expertise in the areas of financial analysis and economics, capital improvement planning, revenue strategies, land use, demographics and growth policy analysis. 2. Technical' Approach. There are several fiscal impact methodologies one could utilize. The most common is the average cost-per capita approach. The major problem with this methodology is that it masks timing as well as geographic issues. For example, if the parks and recreation budget were divided by population to derive a per capita figure, this figure would be applied to population regardless of where and when the new housing occurred. Another approach which is sometimes used on a regional or state basis is a combination of the per capita-average cost approach, service standard multiplier approach and proportional evaluation approach. The combination of these methodologies can result in significant distortions of the fiscal impacts because of the various disadvantages to the methodologies. A change of a .1 factor against a number of the service standard factors used could be very influential in the fiscal findings. An example of the problems with these regional or state approaches is discussed under references. Under the case study-marginal cost approach. a more realistic methodology, the available capacity of parks would be ascertained, and the need for a new park would be forecasted with the resulting capital costs for land and equipment. Once open, the operating expenses would also be incorporated specific to that park. Othe~ relevant operating costs would also be noted. Under this approach, the location of 200 homes in a newly opened up area of a City could have a significantly different impact than if those 200 homes were in an infill situation. This case study-marginal cost approach is more time consuming and therefore more costly. As noted further below, the case study-marginal cost approach will be utilized by T A in this assignment. ll. PROPOSED SERVICES AND PRODUCTS It is our understanding that there will be eight jurisdictions and two school districts included as part of this work effort. The challenge of this scope of work is to conduct a realistic fiscal impact assessment ming the case study-marginal cost approach and also to be able to utilize the fmdings to help prepare a regional fiscal impact assessment. The major point of interest for each jurisdiction is the fiscal implications of different development Scenarios as it affects that jurisdiction. Unless a case study-marginal cost approach is utilized, it is highly unlikely that the city manager, finance director andlor other interested parties will "buy into" the fiscal finctings. 1