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10 <br /> FISCAL IMPACT ANALYSIS FOR MINCEY FARM SUBDIVISION <br /> SERVICE STANDARD APPROACH <br /> Prepared by <br /> The Orange County Planning Departaent <br /> February, 1993 <br /> PROJECT DESCRIPTION <br /> Mincey Farm is a proposed 15-lot major subdivision located on the west side of N.C. <br /> Highway 57 between Mincey Road (SR 1552) and Latta Road (SR 1550) . The average lot <br /> size is 1.18 acres. All lots will be served by individual wells and septic tanks, and <br /> public roads. <br /> For Mincey Farm, project build-out is estimated at three years. Housing units will be <br /> constructed, beginning in 1994, with completion of the project scheduled for 1996. <br /> Units will consist of detached single-family homes, and the applicant estimates the <br /> average sales price to be $92,000, including the lot ($18,000) . <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 a <br /> development would generate if it were completed and occupied today. Fiscal impact <br /> analysis does not consider the private costs of public action. It is concerned only <br /> with public (governmental) costs and revenues. <br /> The method used in preparing the fiscal impact analysis of Mincey Farms is the Service <br /> Standard Approach. While only gross expenditures by service category are derived from <br /> the 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 costs <br /> per pupil, an employee to population ratio, and average operating expenses per employee <br /> for each service category and school district. The number of new employees are <br /> projected and multiplied times the average operating expenses (includes personnel, <br /> operating and capital costs) per employee. These average costs are then weighed <br /> against per capita and per pupil revenues to project the total net fiscal impact of the <br /> development. <br />