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3J Forecast annual revenues the residential 4 J Compare new costs to new revenues over a selected time horizon. If costs exceed revenues, the development will generate a deficit (loss), If revenues exceed costs, the development will generate a surplus. The current combines the case multiplier method of fiscal described Burchell et a1. The case study method relies on detailed site- interviews of officials combined with intensive review of information and department expenses to estimate the impacts of proposed development on public revenues and costs. The case study method assumes that capacity constraints and other factors will cause certain departments of community government to incur different relative cost increases as a result of residential development. The fiscal multiplier approach assumes a fixed- multiplier impact on department expenses, based on the percentage increase in population or housing units, Each method is most appropriate for specific types of community expenses and departments, depending on the characteristics of the community and of the specific expense(s) considered. Modeling the Perry Farm Subdivision' A Build-Out A fOlTIlal build-out analysis of Perry Farnl indicates that the property would support a 49-house subdivision of typical three-bedroom houses. This analysis accounts for the current zoning classification of the Perry property, the size of the parcel, the placement of roads and infrastructure, and wetland restrictions which would prevent building on certain parts of the property, The characteristics of new housing units, and thus the assessed value of these units, is modeled after recent subdivisions in Middletown. Changes in Public New housing units require town services, including police and fire protection, public schooling for children and other government services. Case study interviews andlor budget assessments were combined with fiscal multiplier methods to assess the resulting costs imposed on the Middletown school department, fire department, police department, public works department, sewer and water department, town support services and capital improvement budget. Together, these departments represent approximately 85 percent of all Middletown government expenses. New costs imposed on other departments, including the town clerk, town administrator, town planner and tax assessor, are estimated using fiscal multiplier methods and fall back ratios, as described in Appendix One. Assessing Changes in Public Revenues Changes in tax revenues are estimated based on the build-out analysis of the PelTY Farm property (Hingorany 1998), combined with an analysis of tax revenues generated by recent Middletown subdivisions, Impact fees are estimated at $350 per housing unit. Other revenue impacts are 5