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24 <br />FISCAL IMPACT ANALYSIS FOR MILL CREEK If - SECTION II <br />RESIDENTIAL SERVICE STANDARD APPROACH <br />Prepared by <br />The Orange County Planning Department <br />July 23, 2003 <br />PROJECT DESCRIPTION <br />Mill Creek Two - Section II subdivision contains 42 buildable lots and is located <br />in Cheeks Township. The lots are accessed by a new public road, which intersect <br />with Mill Creek Road. The current zoning is R1 -Rural Residential District. The average <br />lot size is approximately 1.739 acres. Lots will be served by wells and individual septic <br />systems. <br />Project build -out is estimated at three years Housing units will be constructed, <br />beginning in 2004, with completion of the project scheduled for 2007. Units will consist <br />of detached single - family homes, and the applicant estimates the average sales <br />price to be $145,000 including the lot. <br />METHODOLOGY <br />Fiscal impact analysis is a projection of the direct, current, public costs and <br />revenues associated with residential and non residential growth in the jurisdiction in <br />which the growth is taking place. Fiscal impact analysis considers only direct impact <br />in that it projects only the primary costs that will be incurred and the immediate <br />revenues that will be generated, It calculates the financial effect of a planned <br />development or new subdivision by considering the current costs and revenues such <br />a development would generate if it were completed and occupied today. Fiscal <br />impact analysis does not consider the private costs of public action. It is concerned <br />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 <br />Per Capita Method, the Service Standard method determines the total number of <br />additional employees by service function that will be required as a result of growth. <br />This method employs average county government costs per person, average school <br />costs per pupil, an employee to population ratio, and average operating expenses <br />per employee for each service category and school district. The number of new <br />employees are projected and multiplied times the average operating expenses <br />(includes personnel, operating and capital costs) per employee. These average <br />costs are then weighed against per capita and per pupil revenues to project the <br />total net fiscal impact of the development. <br />