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FISCAL IMPACT ANALYSIS <br /> WALMART <br /> Prepared by Orange County Planning Department <br /> April 1990 <br /> PROJECT DESCRIPTION <br /> Walmart is a 44,690 square foot department store in Hillsborough, N.C. Walmart is the anchor for a new <br /> community shopping center known as Hillsborough Commons. There are a total of eleven separate businesses <br /> in the center which include a pizza restaurant, hot dog stand,jewelry store, shoe store, beauty shop, insurance <br /> company, optical store, grocery store, laundry and Walmart. <br /> METHODOLOGY <br /> Fiscal impact analysis is a projection of the direct, current, public costs and revenues associated with residential <br /> or nonresidential growth in the jurisdiction in which the growth is taking place. Fiscal impact analysis considers <br /> only direct impact in that it projects only the primary costs that will be incurred and the immediate revenues that <br /> will be generated. It calculates the financial effect of a planned development by considering the current costs <br /> and revenues such a development would generate if it were completed today. Fiscal impact analysis does not <br /> consider the private costs of public action. It is concerned only with public (governmental) costs and revenues. <br /> The method used in preparing the fiscal impact analysis of Walmart is the Proportional Valuation approach. <br /> This method involves a two-step process to assign a share of municipal costs of a new commercial or industrial <br /> business. A share of total municipal costs is given to all local nonresidential costs and then a portion of these <br /> nonresidential costs is allocated to the new development. Revenues are calculated using municipal own source <br /> revenues and intergovernmental transfers. The difference between the costs and revenues yields a statement of <br /> the net fiscal impact of the project. <br />