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13 <br />FISCAL IMPACT ANALYSIS FOR NEW HOPE SPRINGS SECTION THREE <br />RESIDENTIAL SERVICE STANDARD APPROACH <br />Prepared by <br />The Orange County Planning Department <br />April, 2000 <br />PROJECT DESCRIPTION <br />New Hope Springs Section Three subdivision contains 9 buildable lots and is <br />located in Chapel Hill Township. The lots are accessed by new public roads which will <br />intersect with existing public roads in the subdivision. The current zoning is RB -- <br />Rural Buffer. The average lot size is approximately 2.59 acres. Lots will be served by <br />wells and individual septic systems. <br />Project build-out is estimated at two years. Housing units will be constructed, <br />beginning in 2000, with completion of the project scheduled for 2001. Units will <br />consist of detached single-family homes, and the applicant estimates the average sales <br />price to be $2$0,000 in 2000 and $300,000 in 2001, including the lot. <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 with <br />public (governmental) costs and revenues. <br />The method used in preparing the fiscal impact analysis is the Service Standard <br />Approach. While only gross expenditures by service category are derived from the Per <br />Capita Method, the Service Standard method determines the total number of <br />additional empbyees by service function that will be required as a result of growth. <br />This method employs average county government costs per person, average school <br />costs per pupil, an employee to population ratio, and average operating expenses per <br />employee for each service category and school district. The number of new employees <br />are projected and multiplied times the average operating expenses (includes <br />personnel, operating and capital casts) per employee. These average costs are then <br />weighed against per capita and per pupil revenues to project the total net fiscal impact <br />of the development. <br />