Agenda - 01-10-1994 - Laserfiche WebLink

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To assist in the evaluation of development proposals and consideration of funding requests for water/sewer projects, the Planning Department is evaluating various methods of fiscal impact analysis. If the purpose of the cost/benefit analysis is to determine if industries will provide a positive impact in terms of service costs vs. revenues received, the work of the Planning Department will be useful in implementing Strategy 1.1. Preliminary Study. The Planning Board's response was based in part on the following reference contained in that strategy: Refer to Economic Development Commission Preliminary Study (February 1988). The Economic Development Commission Preliminary Study was actually an Executive Summary of three reports drafted by Sarah Rubin for the Economic Development Commission.In the summary of Report#3,Estimating the Effects of Development, Ms. Rubin cited the following. Fiscal formulas and their uses Moving away from land use concerns, the report also presents techniques to estimate the"fiscal impact" of economic development and residential growth, in order to determine whether certain kinds of growth will bring the county net cost or net revenue. The fiscal impact of development is an important issue in Orange County, since the property tax base already depends disproportionately on residential property.If future development tips the balance even further toward residential property, tax rates will be forced to rise. Staff Initiatives.The other reason for the Planning Board response was the fact that the Planning Director and current Special Projects Planner were completing graduate programs in city and regional planning, and public administration,respectively.To satisfy the degree requirements,the Planning Director had taken an independent study course and examined the fiscal impacts of residential development. The Special Projects Planner, then an intern with both Planning and Economic Development Departments, was writing her thesis on the fiscal impacts of nonresidential development.Their work,in combination with the Executive Summary reference,prompted the question, "Do you mean cost-benefit analysis or fiscal impact analysis?" EDC Target Advisory Group.At about the same time that the Strategic Plan was being completed in draft form in December, 1988, a set of implementation strategies was also produced. Related to Challenge 1 were the following- IA Establish EDC Target Advisory Appoint EDC Target Group to identify industry, Advisory Group by commerce, institutions for July, 1989 recruitment to appropriate areas of the county. 1.B Assemble Background Information for Targeting 1. Cost-Benefit Analysis to Employ consultant enumerate and quantify the benefits, effects, impact of Complete by June, economic development linked 1989 to specific types of industry/business. To put the June, 1989 completion date for a cost-benefit analysis in perspective, the Strategic Plan was adopted by the Board of Commissioners in March, 1989. The EDC Target Advisory Group as well as four other sub- committees were appointed in July, 1989, and began their work in August, 1989.