pf_03625 - Laserfiche WebLink

Home

This fiscal a scientific as This applied when celtain critical factors in an economic scenario (such as the discount rate or the assessed value of new houses) are unknown. Rather than one celtainly incorrect) value for these unknown factors, a sensitivity estimates fiscal a wide range of possible values for these factors, For example, on the discount rate and the assessed value of new homes, a Farm subdivision could generate a net loss of between $920,680 and discounted 1998 sensitivity calculates fiscal impact for this full range of potential values, makers to assess the fiscal impact at various assessment levels and discount rates. Inzpacts Not Included in a Fiscal Impact Analysis Fiscal impact analysis is a well-defined tool considering only "net local public costs and revenues" (Burchell and Listokin 1983), as ret1ected in taxes paid by local propelty owners. Fiscal impact analysis does not consider numerous impOltant economic, environmental, equity, quality-of-life and other impacts which often accompany new development. In many cases, these other impacts provide an even stronger argument for open space and fanl1land preservation (Johnston 1997, National Park Service 1995), This analysis also ignores "secondary impacts" of residential development, such as wages paid to constmction workers and money spent by new residents at local shops, Although secondary impacts are sometimes (incorrectly) included in simplified applications of benefit-cost analysis, it is well-established that inclusion of sllch impacts is inappropriate, and leads to biased benefit-cost estimates (Sassone and Schaffer 1978), Fiscal Impact Analysis of a Hypothetical Subdivision of Perry Farm: Results Details of fiscal impact methodology and calculation are described in Appendices One, Two and Three. Costs are calculated based on a 49-unit development of standard three-bedroom homes, each valued between $150,000 and $190,000, It is assumed that build-out and purchase of new homes would occur over four years, in even 25 percent increments (12.25 homes are built and purchased each year, until all 49 homes are occupied in the fomth year), Based on standardized demographic multipliers, a typical three-bedroom home in New England houses an average of 3,3163 residents, and places 0,7792 children in local schools (Burchill et a!. 1994). Accordingly, the Perry subdivision is assumed to generate approximately 38 school age children and 162 total residents. All infrastmcture is assumed to be paid by housing developers, who in addition pay a $350 per unit impact fee to the town. However, it is assumed that the town would provide basic services to these new residential units, including public schooling, police, fire, water, sewer and street maintenance (plowing, sweeping). Residential units are assumed to generate taxes at Middletown's current tax rate 6,60 per thousand of assessed value), to pay a share town fees as described by Appendix Two. Residential units are also assumed to pay for all water and sewer services used, except for "overage charges" spread across all system users3 Overage charges are fees charged to the Town of Middletown by the City of Newport, based on each day that Middletown's use of the Newport sewage treatment facilities exceed contractual limits. These fees are spread across all users of the sewer system. 7