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<br /> <br /> <br />The time horizon is chosen as it is the time span of on new <br />housing units, Discount rates indicate the rate of time preference of the community, and account <br />for the fact that future impacts are generally valued less than present impacts. Higher discount <br />rates force a lower valuation of future fiscal impacts, as described by and Samatt (I <br /> <br />Tables 1, 2 and 3 illustrate the estimated net fiscal impact of the hypothetical Perry subdivision, <br />accounting for all and foreseeable fiscal revenues and costs. Table 1 illustrates fiscal <br />impacts based on a $1 per unit assessment. Table 2 illustrates fiscal impacts based on <br />$170,000 per unit assessment. Table 3 illustrates fiscal impacts based on a $150,000 per unit <br />assessment. Each table illustrates fiscal impact for a range of discount rates from 4 percent to 12 <br />percent per year 1998 dollars), together with the total non-discounted Note that in all <br />cases, the net impact is negative-the lowest possible net loss associated with the <br />hypothetical PelT)! subdivision is over $920,000. As all net impacts are losses, the fiscal impact <br />estimates Inay be interpreted as additional tax revenues that would have to be paid current <br />Middletovvn residents, to help pay the excess community costs associated vvith a new subdivision. <br /> <br />Fiscal Impacts Charts: Losses Associated with modeled Perry Farm Subdivision <br /> <br />Each of the following tables shows net fiscal losses for discount rates ranging from 4 percent to <br />12 percent. In addition, the 0 percent column illustrates the "raw fiscal impact, or the total <br />number of dollars lost over the 30-year time horizon, if one does not discount future cash flows. <br />Discounting accounts for the fact that current benefits and costs are valued more highly than <br />future benefits and costs, and allows economists to compare present and future fiscal impacts, <br />Accordingly, the numbers presented in this repOli reflect the discounting of future impacts at <br />between 4 percent and 12 percent. F or additional infonnation regarding discounting, see <br />Appendix Three. <br /> <br />Table 1. <br /> <br />Net Fiscal Losses Generated by 49-House Perry Farm Subdivision <br />Case I: $I90,000 Per-House Assessment, 30 Year Impact <br /> <br /> <br />"" S3.883,326 <br />'" S4.000.000 <br />'" <br />"" S3.500.000 <br />" <br /> $3.000.000 <br />,g i:n $2.500.000 <br />e. ~ <br />z S2.000.000 <br />] Q <br /> Sl.500,OO() <br />.. <br />~ S 1.0OO.O()O <br />" <br />z <br /> SO <br /> 0<;;(-, 4% <br /> <br /> <br /> <br /> <br /> <br />S J ,685,854 <br /> <br />$ 1.348.330 <br /> <br />1,103.1 <br /> <br /> <br />$920,680 <br /> <br />6% <br /> <br />8% <br /> <br />10% <br /> <br />12% <br /> <br />Discount Rate <br /> <br />8 <br />