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`counting' county and local taxes collected today as a burden or cost to its citizens. In the same <br />way, today's expenditures are `counted' as a benefit to its citizens. Therefore, if a municipality <br />saves some of its revenues today for future spending by shifting it into a reserve fund, it would <br />appear that today's revenues, i.e. costs, are larger than the expenditures, i.e. benefits. In essence, <br />one should think of today's tax revenues that are being collected and shifted to reserve funds as <br />being placed into a `savings account' even though the net benefit today is `negative'. It is a <br />similar analogy to a household that brings in $100,000 in income, spends $90,000, and saves <br />$10,000 for future spending. The household has incurred the time and effort costs of earning <br />$100,000 in income but appears to only be getting $90,000 in benefits from consumption and <br />spending. <br />CCM Economics, LLC Orange County Tax Equity Page 41 <br />