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2 <br /> MEMORANDUM <br /> TO: ORANGE COUNTY TY BOAR+ .COMMISSIONERS <br /> FROM: MARVIN COLLINS, PLANNING DIRECTOR <br /> DATE: APRIL 6, 1993 <br /> SUBJECT: FISCAL IMPACT ANALYSIS FOR RESIDENTIAL DEVELOPMENT <br /> COPIES: JOHN LINK, COUNTY MANAGER <br /> GEOFREY GLEDHILL, COUNTY ATTORNEY <br /> SALLY KOST, BUDGET DIRECTOR <br /> Attached is a sheet which compares the results of the fiscal impact <br /> analyses of Mel Oak Subdivision distributed with the April 5, 1993 <br /> agenda material. This memo highlights some of the most basic assumptions <br /> contained in the analyses and identifies some important data <br /> considerations. <br /> Basic Methodology <br /> The earliest version of the template [1989] uses the "per capita <br /> multiplier" approach. Using a simple example, if the County budget were <br /> $45 million and the population of the county was 100, 000, the cost per <br /> person [capita] would be $450. If five new homes were built with two <br /> persons per household, the 10 new residents would result in an <br /> additional cost to the County of $4,500 [$450 x 10] . <br /> The most recent version of the template uses the "service standard" <br /> approach. Using the same example above, if the County budget were $45 <br /> million and the number of County employees was 500, the cost per <br /> employee would be $90, 000. With a population of 100, 000, the number of <br /> employees per person [capita] would be 0. 005. If the five new homes were <br /> built with two persons per household, the 10 new residents would result <br /> in 0. 05 new employees [10 x 0. 005] and an additional cost to the County <br /> of $4, 500 [$90, 000 x 0. 05] . <br /> As can be seen above, the methods result in the same "cost" figures. The <br /> significance of the service standard approach is that it enables to the <br /> user to project new employees needed as well as expenditures and <br /> revenues. <br /> Basic Assumptions <br /> The most basic assumption of the service standard approach in general is <br /> that over the long run, average existing service levels can be used to <br /> assign costs to future development. Furthermore, the average servicing <br /> levels for the county and the school district at the time of development <br /> are those that should be used to assign the service load to the new <br /> development. Service levels are determined by the number of employees, <br /> revenues received, and expenditures per capita as denoted in the <br /> approved annual budget. <br /> Another basic assumption contained in the analyses is that they focus <br /> exclusively on the operating budget. Major capital improvements as well <br />