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<br />
<br />
<br />
<br />
<br />
<br />
<br />Four,
<br />"Fiscal
<br />Benefits of
<br />
<br />of tbe Fiscal
<br />of a Subdivision on tbe
<br />Preservation vs. Residential
<br />
<br />
<br />The Tax
<br />
<br />This "Fiscal of a Subdivision on the The Tax
<br />Benefits of Preservation vs. Residential Development," summarizes the results of a
<br />fiscal impact analysis of an hypothetical 55-unit "Kempenaar Valley subdivision," and indicates
<br />the net fiscal benefits that would be received by Middletown taxpayers as a result of the
<br />preservation of the two Kempenaar Valley properties as open space. Employing the same basic
<br />methodology used to assess fiscal impacts of a PelTY Fam1 subdivision, the analysis shows that
<br />over the next 30 years, residential development of the Kempenaar Valley properties would cost
<br />Middletown taxpayers between $1,065,754 and $3,083,359 (in net discounted 1998
<br />even after one considers all the tax and other revenues generated by new residential units. In
<br />total non-discounted dollars, CUlTent Middletown taxpayers would pay as much as $5,545,393 III
<br />additional taxes over the next 30 years, if a 55-house subdivision were to be built m the
<br />Kempenaar Valley. Considering only the most probable outcomes, preservation of the
<br />Kempenaar Valley would likely save the taxpayers of Middletown between $1,923,491 and
<br />$2,404,122, in discounted tax dollars over the next 30 years. In annual ten11s, this would
<br />translate to an additional $28 in property taxes paid by each Middletown household, each year,
<br />to support the additional net fiscal losses generated by a hypothetical Kempenaar
<br />subdivision in the Middletown Town Center. The results of the Kempenaar Valley study are
<br />summarized the tables.
<br />
<br />Fiscal Impact Charts: Losses Associated with Modeled Kempenaar Valley Subdivision
<br />
<br />Table 1. Net Fiscal Losses Generated by 55-House Kempenaar Valley Subdivision
<br />Case I: $190,000 Per-House Assessment, 30 Year Impact
<br />
<br /> $6,000,000
<br />-0 $5,500,000
<br />~
<br />.... $5,000,000 $4,504,573
<br />c:
<br />0 $4,500,000
<br /><.I ~ $4,000,000
<br />'" '"
<br />~ '-
<br />- C':
<br />'-=
<br />'" 0 $2,503, i 89
<br />~ Q
<br />'"
<br />'" QC
<br />C; ~ $2,000,000
<br />- ~
<br />C': $1,500,000
<br /><.I
<br />'" $1,000,000
<br />~.
<br />t:
<br />z $0
<br /> 0%, 4% 6%
<br />
<br />
<br />
<br />
<br />
<br />$1,560,621 $1 276 94"
<br />" , ~ $1,065,754
<br />
<br />
<br />
<br />8(;0
<br />
<br />10%
<br />
<br />J2%
<br />
<br />Discount Rate
<br />
<br />22
<br />
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