Fiscal Impacts

Question 1

What is a Fiscal Impact Analysis?

Answer 1

Also known as cost-revenue analysis, is used to estimate the costs and revenues of a proposed development on a local government.

The fiscal impact is the difference between the revenues and expenditures generated by a proposed development, which is also known as the net fiscal impact

Question 2

What is the most common form of fiscal impact analysis?

Answer 2

is for a development project. However, fiscal impact analysis can also be used to examine the cumulative impact of land use decisions

Question 3

What are several methods for conducting a fiscal impact analysis?

Answer 3

average per capita, adjusted per capita, disaggregated per capita, and dynamic.

Question 4

What is the average Per Capita Method?

Answer 4

Fiscal Impact Analysis. Formula: Total Local Budget/Existing Pop.

Simple but least reliable

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.

Question 5

What is the Disaggregated Per Capita Method?

Answer 5

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 6

What is the Dynamic Method?

Answer 6

The Dynamic Method 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.