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APPENDIX C 3 <br /> FISCAL IMPACT ANALYSIS OF THE MEL OAKS SUBDIVISION <br /> CHAPEL HILL TOWNSHIP, ORANGE COUNTY, NC <br /> Prepared by the Orange County Planning Department - May, 1991 <br /> Fiscal impact analysis is a projection of the direct, current, public costs and revenues associated with residential <br /> and non residential growth in the jurisdiction in which the growth is taking place. Fiscal impact analysis <br /> considers only direct impact 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 development or new subdivision by <br /> considering the current costs and revenues such a development would generate if it were completed and occupied <br /> today. Fiscal impact analysis does not consider the private costs of public action. It is concerned only with public <br /> (governmental) costs and revenues. <br /> The method used in preparing the fiscal impact analysis of Mel Oaks Subdivision is the per capita multiplier <br /> approach. It is the most versatile and widely used fiscal impact analysis method, relying on average local <br /> government costs per person, average school costs per pupil, and the number of persons and pupils generated by a <br /> development to project future local government and school district costs. The basic assumption underlying the <br /> approach is that tomorrow's costs are not unlike today's. The per capita multiplier approach is particularly useful <br /> because it provides a fast approximation of the costs of new development based on readily-available data. <br /> Mel Oaks is a 29-lot subdivision located on the north side of Jones Ferry Road in Chapel Hill Township west of <br /> Carrboro. Mel Oaks was developed during the period 1986-1990. Of the total number of lots, 22 have had single-family <br /> homes constructed on them. The average sales price, including lot and dwelling, was $175,905 (See Attachment A), The <br /> remaining seven lots have been sold by the developer, but no homes have been constructed as of May, 1991. <br /> Since the fiscal impact template was calibrated with FY 1989-90 Budget data, it was assumed that development of Mel <br /> Oaks was initiated in 1989. Using Land Records System data, the number of units sold each year and the average sales <br /> price for these units was determined (See Attachment B). This information was used for the "Construction <br /> Schedule/Cost Data" portion of the template. On the following pages, an explanation is provided of the template used <br /> to analyze the fiscal impact of the Mel Oaks Subdivision on Orange County's operating budget. The actual <br /> calculations are shown on Attachment C. <br /> • <br /> A—9 <br />