Vision SMTX Appendix Adopted 2024

Fiscal Impact Analysis Methodology and Findings

APPENDIX C: KEY FINDINGS FROM FISCAL IMPACT ANALYSIS

Fiscal Modeling Approach

The purpose of a fiscal impact analysis is to estimate the cost and revenue impacts from new development on annual operating budgets and departments in a variety of contexts. The analysis compares the estimated revenues generated by new development to the estimated costs of public services required to serve that development and determines the net fiscal impact (revenues minus expenditures). Revenues and costs are estimated based on the budgets for each fund and department, and an assessment of potential effects of different types of development on each department or budget category. The revenue sources and expenditures that have the largest impact on the budget and are most directly tied to growth have a specific “case study” developed for them; these case study approaches use specific calculations to determine impact. For example, property tax is based on estimated assessed values multiplied by the applicable tax rates. Other items, such as administrative costs related to residential development, are based on average cost factors (such as “per capita” estimates). The fiscal impact analysis is based on three main factors: • Amount and Type of Growth : The amount of residential type (single family detached, attached, multifamily, and student-oriented multifamily) and employment type (highway commercial, local commercial, office/institutional, and industrial/distribution) based on forecasts of new jobs and households. • Location of Growth : For this analysis, location was summarized by future land use. The difference in impacts by development patterns (e.g., amount of acres designated, forecast growth, and location) between land uses was estimated. The analysis factored in differing costs related to the location of growth when impactful including presence of fire service, utilities, and the county the new development is located in. • Revenue and Cost : Based on current revenue and expenditure patterns, these are the anticipated revenues and expenditures that will be generated because of new development.

Modeling Approach

Our approach to identifying the fiscal impacts based on the amount and type of growth in each scenario varies depending on the community and the governmental fund being analyzed. Through evaluation of the City of San Marcos, EPS developed the following approach to modeling fiscal impacts.

SAN MARCOS COMPREHENSIVE PLAN 2024

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