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<br /> <br />Oi fficulties can arise in the portion of the capital to the <br />ihis occurs when a development may exceed current capacity, but due to engineering considerations and <br />economies of scale, the new facility must be constructed with excess capacity beyond that for the <br />development being analyzed. This situation can be resolved in three ways, One is to attribute the <br />carrying costs of the additional capacity to the development being analyzed until such time as the excess <br />capacity is absorbed, Another method would be to assign the costs of the excess capacity to the <br />community as a whole until such time as the excess capacity is absorbed. Finally, if future development is <br />uncertain, it may be appropriate to assign 100 percent of the cost of a new facility to the development <br />being analyzed. <br /> <br /> <br />Projection Series <br />The projection series assembles the above information in an interactive framework The revenue and <br />expenditure categories are linked to variables and projected over the forecast period (usually 5-10 years, <br />although some models may go out as far as 20 years), When projections are made for two or more <br />scenarios, the series will also include a comparison of the results, The summary will calculate the net <br />change, or net fiscal flows, between the impact scenario and the baseline for operating and capital <br />and revenues. <br /> <br />FIA IN PRACTICE: <br />THE "TOTAL IMPACT MANAGEMENT <br />MODEL" <br /> <br />The Government Finance Research Center (GFRC), in association with the META consulting group, <br />recently completed a fiscal impact analysis for Loudoun County, Virginia, a rapidly developing "exurb" <br />on the fringe of the Washington, D,C. metropolitan area, The county has undergone substantial <br />development in the eastern end, near Dulles International Airport. Several major national and <br />international corporations have opened offices in the county. Development permits are currently <br />outstanding for 20,000 residential units and 8 million square feet of commercial and industrial <br />development by 1999. <br /> <br />County officials requested GFRC/MET A to provide a model that would project the financial effects of <br />several growth, development, distributional and density scenarios. In particular, the FIA model was <br />developed to: <br /> <br />I). Assess the financial consequences of projected development at the aggregate county level over the <br />next two decades, <br /> <br />6 <br />