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5 <br />21 <br />FISCAL IMPACT ANALYSIS FOR MTK DEVELOPMENT <br />RESIDENTIAL SERVICE STANDARD APPROACH <br />Prepared by <br />The Orange County Planning Department <br />April, 1998 <br />PROJECT DESCRIPTION <br />MTK Development contains 25 buildable lots and is located in Eno Township. The <br />lots are accessed by new public and private roads which will intersect with Yates Road. The <br />current zoning is AR - Agricultural Residential. The average lot size is approximately 1.53 <br />acres. Lots will be served by individual wells and septic systems. <br />Project build -out is estimated at five years. Housing units will be constructed, <br />beginning in 1998, with completion of the project scheduled for 2002. Units will consist of <br />detached single - family homes, and the applicant estimates the average sales price to be <br />$179,583, including the lot. <br />METHODOLOGY <br />Fiscal impact analysis is a projection of the direct, current, public costs and revenues <br />associated with residential and non residential growth in the jurisdiction in which the growth is <br />taking place. Fiscal impact analysis considers only direct impact in that it projects only the <br />primary costs that will be incurred and the immediate revenues that will be generated. It <br />calculates the financial effect of a planned development or new subdivision by considering <br />the current costs and revenues such a development would generate if it were completed and <br />occupied today. Fiscal impact analysis does not consider the private costs of public action. It <br />is concerned only with public (governmental) costs and revenues. <br />The method used in preparing the fiscal impact analysis is the Service Standard <br />Approach. While only gross expenditures by service category are derived from the Per <br />Capita Method, the Service Standard method determines the total number of additional <br />employees by service function that will be required as a result of growth. This method <br />employs average county government costs per person, average school costs per pupil, an <br />employee to population ratio, and average operating expenses per employee for each <br />service category and school district. The number of new employees are projected and <br />multiplied times the average operating expenses (includes personnel, operating and capital <br />costs) per employee. These average costs are then weighed against per capita and per <br />pupil revenues to project the total net fiscal impact of the development. <br />