Item 28 - Public Hearing - ZOA No. 20204-01 South Coast Technology Center

Home Browse Search

SECTION II ta www.FinanceDTA.com INTRODUCTION First, based on more than 30 years of preparing fiscal impact studies and performing peer reviews of similar studies prepared by other consulting firms, DTA has determined that utilizing a Persons Served population comprised of all residents and 50% of the employees working at locations within a given service area is common fiscal practice in generally quantifying the impacts of new development if more specific local data or facilities usage data is not readily available. This ratio suggests that a resident generally has twice the fiscal impact of an employee on the use of a typical public improvement and can be applied to a City's General Fund budget to calculate average revenues and costs per Person Served on a Citywide basis using a Multiplier Approach. While a fiscal impact analysis focused on marginal revenues and costs associated with a specific new development project (with greater emphasis on a Case Study Approach) is often applied to larger projects, the consulting budgets required to evaluate individual metrics related to each type of municipal revenue and service, including interviews with individual municipal departments, can be prohibitive for smaller projects. As a result, while DTA did utilize a Case Study Approach for General Fund revenues and costs that were easy to quantify (e.g., property taxes, sales taxes, and utility user taxes), many of the metrics employed in this Report are based on average revenues/costs per Person Served utilizing the Fiscal Year ("FY") 2023-2024 City budget as could be applied to the Project. DTA also used solely a Per Employee Methodology in this Report to project recurring fiscal factors that relate to employment only, such as business license revenues. Similar to the Persons Served Methodology discussed above, the Per Employee Methodology involves dividing the applicable revenues/costs by the total number of employees in the City utilizing the FY 2023-24 City budget, and applying these factors to the specific number of employees forecast to be working within the Project under the given scenario. For the purposes of the Report, all recurring revenues and costs are stated in constant (uninflated) 2024 dollars based on the assumption that the relative impacts of inflation in future years will be the same for both fiscal impact categories. B Major Assumptions and Analysis Used in This Report B.1 Discounting Revenues and Expenses Certain revenues and expenditures presented in this Report are not expected to increase on a one-to-one basis with the addition of new development. To project these numbers without any adjustment would result in inaccurate conclusions. To accurately account for this factor, DTA applied a series of discount rates to specific budget components. Based on an examination of the numbers presented in the City's annual General Fund budget, 15% and 90% discount rates were applied to several revenue categories as documented in Appendix A-1. As discussed in the previous section of this Report, revenues that are considered non- recurring to the City General Fund, such as revenues generated by building/planning/engineering fees, are excluded from this analysis. Furthermore, DTA applied a 100% discount rate to financing source categories that are deemed EPD Solutions, Inc. May 13 2024 South Coast Technology Center Fiscal Impact Analysis Report 5