Fiscal Impacts
Towns are under pressure to maintain and improve infrastructure and services for residents. It is important to carefully consider new developments and how they affect a town's income. Most, if not all, municipal developments generate revenues--the town receives fees associated with permits and one-time utility connection fees as well as ongoing property tax revenues.
However, there are also costs associated with new developments, such as improving and maintaining the municipal infrastructure: roads may have to be built or widened; traffic or street lights may have to be installed; and water, storm, and sewer distributions may have to be provided. In addition, there may be an increase in demand for services in the town, including the police, fire and public works departments. For developments that include a residential component, there may also be increased demand for educational and library services. Other types of costs may include any incentives offered by the municipality, such as tax abatements, low-cost loans, etc.
How can Fiscal Impact Analysis Help?
The fiscal impact analysis projects and calculates all of the costs and revenues into current dollars so that town officials can more easily decide if the development would benefit the town from a financial perspective.
CERC utilizes a web-based fiscal impact analysis application to store the data and perform calculations. A typical analysis projects costs and revenues for 20 years, but all the data are changed into net present value for easier comparisons. CERC can determine whether the development will generate revenues for the municipality, and can assist with communicating the results to stakeholders.
For more information on how CERC can help you with a fiscal impact analysis, call 860-571-7136 or e-mail Jeff Blodgett, Vice President of Research.