9 - Economic Development

Question 1

________ is the difference between the revenues and expenditures generated by a proposed development

Answer 1

Net Fiscal Impact

Question 2

The most common form of fiscal impact analysis is for annexations and new zoning policies

Answer 2

False. The most common use is to evaluate a development project. However, fiscal impact analysis can also be used to examine the cumulative impact of land use decisions such as annexation and new zoning policies

Question 3

One of the disanvantages of Fiscal Impact Analisis is that it may show a negative impact for projects that provide substantial social and enviromental benefits, such as multi-family development or affordable housing. Give this, it should be used with catiuon.

True or False

Answer 3

True

Question 4

Average Per Capita Method

Fiscal Impact Analysis

Answer 4

• Simplest method of fiscal impact analysis, but it is also the least reliable.
• It divides the total local budget by the existing population in a city to determine the average per capita cost for the jurisdiction. The result is multiplied by the expected new population associated with the new development.
• The major problem with this method is that it assumes the cost of service to a new development is the same as the cost to service to the existing community, which might may not be necessarily true.

Question 5

____________ method uses the figure calculated with the avergage per capita method (local budget/existing population)(expected population increase due to development) and adjusts this based on expectations about the new development. This relies on subjective judgment.

Fiscal Impact Analysis

Answer 5

Adjusted Per Capita Method

Question 6

Disaggregated Per Capita Method

Fiscal Impact Analysis

Answer 6

The Disaggregated Method estimates the costs and revenues based on major land uses, for example, the cost of servicing a shopping center versus an apartment complex

Question 7

____________ applies statistical analysis to time-series data from a jurisdiction. This method determines, for example, how much sales tax revenue is generated per capita from a grocery store and applies this to the new development. This method requires more data and time to conduct than other methods.

Fiscal Impact Analysis

Answer 7

Dynamic Method

Question 8

A ____________ describes how certain types of jobs will drive demand for even more jobs.__________ measure the interdependence or linkage between industry sectors within a region, and provide an estimate of the “ripple effect” due to a local change in economic activity

Answer 8

Multiplier Effect; Multipliers

Question 9

Enterprise zones (EZs)

Answer 9

Enterprise zones (EZs) are geographic areas in which companies can qualify for a variety of subsidies. The original intent of most EZ programs was to encourage businesses to stay, locate, or expand in depressed areas and thereby help to revitalize them. EZ subsidies often include a variety of corporate income tax credits, property tax abatements, and other tax exemptions and incentives to encourage businesses to locate in low-income areas of a city or county.