Fiscal Impact Analysis: Scenario for Planners
As an employee of the planning department of Witch Hazel, Wisconsin, you have been asked to conduct a fiscal impact analysis of a proposed townhome development using the average per capita method .
The following information is available:
Proposed residential development
1. 30 senior condos, average market value $250,000 per unit
2. 20 3-BR condos, average market value $375,000 per unit
Current Municipal Taxing and Spending Facts (municipality does not have a separate school district)
Residential Tax base
Existing residential units 8,000
Avg market value of existing unit $300,000
Residential assessment ratio for tax purposes 50%
Residential tax rate per $1000 of assessed value $13.33
Residential proportion of real property 80%
Schools
Number of schoolchildren currently in the town 4,200
Current state school aid per student $2,500
Current local school expenditure per student $3,300
[Total school budget $24,360,000]
Town budget
Town expenditures excluding schools (i.e. service expenditures) $26,000,000
Town expenditure on schools $13,860,000
Town budget (schools + services) $39,860,000
Total miscellaneous revenues in city budget $15,000,000
Total property tax levy (residential property taxes + taxes on other forms of property) $24,860,000
Residential property tax levy $16,000,000
[Non-residential property tax levy $8,860,000]
2a. What is the expected new property tax revenue associated with the new development?
2b. How much other (misc.) revenue is expected from the new households?
2c. What are the total school costs and total new state school aid expected in conjunction with the development? Use the standard multipliers given in the example and per capita state school aid figures noted above.
2d. What are the non-school service costs associated with the development?
2e. What is the net fiscal impact per year on Witch Hazel's tax base?
2f. If Witch Hazel is a rapidly growing community whose service capacity (including school building capacity) is already stretched to the limit, would you suggest a different fiscal impact analysis method? Which one and why