A fiscal impact analysis determines whether revenues generated by new growth are sufficient to cover the resulting costs for service and facility demands placed on the city as a result of that growth. The fiscal impact analysis conducted by TischlerBise incorporate the case study-marginal cost approach wherever possible. The case study-marginal methodology is the most realistic method for evaluating fiscal impacts as it takes site or geographic specific information into consideration. Therefore, any unique demographic or locational characteristics of new development are accounted for, as well as the extent to which a particular infrastructure or service operates under, over or near capacity. Therefore, available facility capacity determines the need for additional capital facilities and associated operating costs. Many of the administrative/general government costs that are impacted by general growth in the city, regardless of location, are projected using a marginal/average cost hybrid methodology that attempts to determine capacity and thresholds for staffing but projects non-salary operating costs using an average cost approach.
As a first step in the analysis, levels of service are evaluated along with cost and revenue assumptions. These assumptions are based on interviews and discussions with department heads, their representatives, and other related personnel in addition to a detailed analysis of the city’s adopted budget. The revenue and cost projections are based on the assumption that in most cases the current level of spending, as provided in the budget, will continue over time.
The City of Dublin budget is used to represent a “snapshot” of the City’s current costs, revenues and levels of service. In addition to population estimates, the current number of dwelling units and employment levels are used to calculate unit costs and service level thresholds. The “snapshot” approach does not attempt to speculate about how services, costs, revenues and other factors will change over the analysis period. Instead, it evaluates the fiscal impact on the city as it is currently conducting business under the present budget. For fiscal analysis zones analyzed as part of the 2007 Community Plan update, the analysis uses the city’s FY2007 budget as the base year and projects to a horizon year of 2030. When the Bridge Street District analysis is complete, the city should conduct an updated citywide fiscal impact analysis using a consistent base fiscal year and horizon planning year. The following major assumptions regarding the fiscal methodology are described as follows:
Marginal, Growth Related Costs and Revenues
Costs and revenues that are directly attributable to new development are included in the fiscal impact analysis. Some costs and revenues are not expected to be impacted by demographic changes, and are considered fixed costs and revenues. To determine fixed costs and revenues, TischlerBise reviewed the City of Dublin budget and all available supporting documentation. Funds evaluated as part of this analysis include the city’s tax supported funds. Based on this review, preliminary assumptions were developed and were reviewed and discussed with appropriate City department representatives. In some cases, a determination was made based on TischlerBise’s national experience conducting public sector fiscal impact analyses.
Level of Service
The current level of spending is referred to as the current level of service and is used to calculate the fiscal impact to the city for the fiscal analysis period. Current demand base data is used to calculate unit costs and service level thresholds. Examples of demand base data include population, dwelling units, employment by type, vehicle trips, etc. Current constant dollars are used throughout the analysis period (current dollars are set at 2007 dollars based on the completion during the 2007 Plan update). Certain special revenue funds, such as the Cemetery Fund, are not included in the analysis because revenues generated from such funds are assumed to be fixed and unrelated to growth. Enterprise Funds (i.e. sewer and water) were not modeled because the intent of the fiscal analysis is to include only tax supported funds. Furthermore, improvements associated with water and sewer are excluded because these areas have separate rate structures established by the utility provider. These rate structures are updated annually.
Revenue Structure and Tax Rates
Revenues are projected assuming that the current revenue structure and tax rates used in the preparation of the City of Dublin budget would not change during the analysis period.
Inflation Rate
The rate of inflation is assumed to be zero throughout the projection period, and cost and revenue projections are in constant dollars. This assumption is in accordance with current budget data at the time of the analysis and avoids the difficulty of speculation about inflation rates and its effect on cost and revenue categories. It also avoids the problem of interpreting results expressed in inflated dollars over an extended period of time.
A fiscal impact analysis determines whether revenues generated by new growth are sufficient to cover the resulting costs for service and facility demands placed on the city as a result of that growth. The fiscal impact analysis conducted by TischlerBise incorporate the case study-marginal cost approach wherever possible. The case study-marginal methodology is the most realistic method for evaluating fiscal impacts as it takes site or geographic specific information into consideration. Therefore, any unique demographic or locational characteristics of new development are accounted for, as well as the extent to which a particular infrastructure or service operates under, over or near capacity. Therefore, available facility capacity determines the need for additional capital facilities and associated operating costs. Many of the administrative/general government costs that are impacted by general growth in the city, regardless of location, are projected using a marginal/average cost hybrid methodology that attempts to determine capacity and thresholds for staffing but projects non-salary operating costs using an average cost approach.
As a first step in the analysis, levels of service are evaluated along with cost and revenue assumptions. These assumptions are based on interviews and discussions with department heads, their representatives, and other related personnel in addition to a detailed analysis of the city’s adopted budget. The revenue and cost projections are based on the assumption that in most cases the current level of spending, as provided in the budget, will continue over time.
The City of Dublin budget is used to represent a “snapshot” of the City’s current costs, revenues and levels of service. In addition to population estimates, the current number of dwelling units and employment levels are used to calculate unit costs and service level thresholds. The “snapshot” approach does not attempt to speculate about how services, costs, revenues and other factors will change over the analysis period. Instead, it evaluates the fiscal impact on the city as it is currently conducting business under the present budget. For fiscal analysis zones analyzed as part of the 2007 Community Plan update, the analysis uses the city’s FY2007 budget as the base year and projects to a horizon year of 2030. When the Bridge Street District analysis is complete, the city should conduct an updated citywide fiscal impact analysis using a consistent base fiscal year and horizon planning year. The following major assumptions regarding the fiscal methodology are described as follows:
Marginal, Growth Related Costs and Revenues
Costs and revenues that are directly attributable to new development are included in the fiscal impact analysis. Some costs and revenues are not expected to be impacted by demographic changes, and are considered fixed costs and revenues. To determine fixed costs and revenues, TischlerBise reviewed the City of Dublin budget and all available supporting documentation. Funds evaluated as part of this analysis include the city’s tax supported funds. Based on this review, preliminary assumptions were developed and were reviewed and discussed with appropriate City department representatives. In some cases, a determination was made based on TischlerBise’s national experience conducting public sector fiscal impact analyses.
Level of Service
The current level of spending is referred to as the current level of service and is used to calculate the fiscal impact to the city for the fiscal analysis period. Current demand base data is used to calculate unit costs and service level thresholds. Examples of demand base data include population, dwelling units, employment by type, vehicle trips, etc. Current constant dollars are used throughout the analysis period (current dollars are set at 2007 dollars based on the completion during the 2007 Plan update). Certain special revenue funds, such as the Cemetery Fund, are not included in the analysis because revenues generated from such funds are assumed to be fixed and unrelated to growth. Enterprise Funds (i.e. sewer and water) were not modeled because the intent of the fiscal analysis is to include only tax supported funds. Furthermore, improvements associated with water and sewer are excluded because these areas have separate rate structures established by the utility provider. These rate structures are updated annually.
Revenue Structure and Tax Rates
Revenues are projected assuming that the current revenue structure and tax rates used in the preparation of the City of Dublin budget would not change during the analysis period.
Inflation Rate
The rate of inflation is assumed to be zero throughout the projection period, and cost and revenue projections are in constant dollars. This assumption is in accordance with current budget data at the time of the analysis and avoids the difficulty of speculation about inflation rates and its effect on cost and revenue categories. It also avoids the problem of interpreting results expressed in inflated dollars over an extended period of time.
Community Plan
