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1990-01 Agreement betw Parkland & FL National Properties-Comp Plan Revisions RESOLUTION NO. 90 - 1 A RESOLUTION OF THE CIT'i COMMISSION OF THE CIT'i OF PARKLAND, FLORIDA, AU'nIORIZING THE CIT'i OFFICIALS TO EXEC\1I'E AN AGREEMENT BETWEEN THE CIT'i OF PARKLAND AND FLORIDA NATIONAL PROPERTIES, INC. TO ASSIST IN THE REVISION OF THE CAPITAL IMPROVEMENTS ELEMENT OF THE CIT'i' S COMPREHENSIVE PLAN WHEREAS, the City Commission of the City of Parkland finds and determines that it is in the best interest of the citizens of the City to enter into the attached Agreement to assist in the City's revision of the Capital Improvements Element of the City's Comprehensive Plan: NOW, THEREFORE, BE IT RESOLVED BY THE CIT'i COMMISSION OF THE CIT'i OF PARKLAND, FLORIDA, that: Section 1: That the appropriate City officials are here by authorized to execute the attached Agreement between the City of Parkland, Florida and Florida National Properties, Inc.: Section 2: That this Resolution shall be in full force and effect immediately upon its passage and adoption. January PASSED AND ADOPTED THIS -1L DAY OF , 1990 ~~. SA PAGLIARA, or '-c:;~~ a~ ,~ SUSAN ARMSTRONG, City Cler A\:jlUiJljI'lI:j~'U,- This Agreement entered into this ---.!2... day of January 1990, by and between the CITY OF PARKLAND, a Florida municipal . corporation located at 6500 Parks ide Drive, Parkland, Florida, (hereinafter referred to as lithe CITY") and FLORIDA NATIONAL PROPERTIES, INC., a Florida corporation located at 3300 University Drive, Coral Springs, Florida (hereinafter referred to as "FNpl), as follows: WHEREAS, the CITY is in the process of reviewing and revising its Comprehensive Plan; and WHEREAS, the CITY is obligated, pursuant to its Agreement with FNP dated May 3, 1989, to adopt and implement a Comprehensive capital Improvements Program prior to April 1, 1990; and WHEREAS, the CITY is fully capable of complying with this obligation; and WHEREAS, as part of the CITY's review of its comprehensive Plan, the CITY intends to revise its Capital Improvements Element to set forth realistic estimates of the costs to reach the levels of service set forth in the CITY's comprehensive Plan; and WHEREAS, FNP desires that the CITY retain the services of Tischler and Associates, Inc. (hereinafter referred to as "Tischler") to provide services in revising the Capital Improvements Element; and WHEREAS, the CITY also wishes to engage the services of Tischler to provide professional consultant services to the CITY to assist in the CITY's revision of the Capital Improvements Element of the CITY's Comprehensive Plan; and WHEREAS, FNP, being the largest landowner and taxpayer in the CITY, desires to assist the CITY in its revisions to the Comprehensive Plan, NOW, THEREFORE, based upon good and sufficient consideration, the receipt of which is hereby acknowledged, and the covenants hereafter set forth, and the performance of the same, it is agreed between the parties as,follows: 1. CITY agrees to retaln -cne serv~ces OJ.: -.1.-.1.::;-';11.1.':.1. CL'" Q consultant to assist the CITY in revising the capital Improvements Element of its Comprehensive Plan by April 1, 1990, provided that Tischler accepts a contract for services consistent with the proposal set forth on Exhibit "A". 2. FNP agrees to provide the CITY with up to the amount of $38.700.00 to assist the CITY in paying for the services of Tischler for the revisions to the Capital Improvements Element of the CITY's Comprehensive Plan. Additionally, FNP agrees to provide the CITY with funds to pay for any out-of-pocket expenses necessarily incurred by Tischler, in providing the services to the CITY contemplated by this Agreement, in an amount not to exceed $6.300.00. 3. The CITY agrees to pay any invoices received from Tischler for such consultant services and out-of-pocket expenses, and, after payment, to forward such invoices submitted to the CITY by Tischler to FNP for reimbursement to the CITY, up to the total amount of $38.700.00, plus any out-of-pocket expenses of Tischler in an amount not to exceed $6.300.00. FNP shall reimburse the CITY for such payments within thirty (30) days of receipt by FNP from the CITY of such invoices submitted by Tischler to the CITY. 4. The CITY agrees that any work product prepared for the CITY by Tischler relating to the CITY's Comprehensive Plan shall be made available by the CITY to FNP and the public for review. 5. The CITY agrees that, prior to the time the CITY submits a revised Capital Improvements Element of its Comprehensive Plan to the Florida Department of Community Affairs for approval, such capital Improvements Element shall be made available by the CITY to FNP and other affected persons for review and comment. The CITY shall be under no obligation to either accept any work product received from Tischler or to accept any suggestions or proposed changes from FNP or other affected persons. 6. This Agreement shall be binding on and inure to the benefit of the parties hereto, their successors in interest and assigns. ATTEST: ATTEST: CITY OF PARKLAND By: -#~ Sal Paqliara, or FLORIDA NATIONAL PROPERTIES, INC. By: ~: -~~- & BuntaJl)ey.~~'I_: .pre;ti; A(OF' L ' ~ . \ , ' I, ~ I I City of Parkland 6500 Parkside Drive Parkland, Florida 33067 (305) 753-5040 EXHIBIT "A" January 18,1990 Mr. Paul Tischler Tischler & Associates, Inc. 4701 Sangamore Road Suite N210 Bethesda, MD 20816 Dear Paul: Con~irming our telephone conversation o~ this date, please be ~ormally noti~ied, the Parkland City Commission at its meeting OT January 17, 1990 accepted the proposal Tor your consulting services and the appropriate Agreement ~or retainment ~or services through Coral Ridge Properties, Inc. The proposal was accepted including alloT the parameters and scope oT services included in your December 13, 1989 proposal package. Rather than complicate arrangements through the City CommiSSion, our staTf has several requests that we would like you to consider, but not necessarily include as part o~ the contractu~l arrangements: 1. Because we have a limited time frame to meet our obliga- tion to re-do the Capital Improvements Element o~ the Comprehensive Plan, it would beneficial from a review and ultimate adoption purpose if we could receive monthly or periodic work products through the course of your study. 2. We would like the formal and final work product to be in Word Perfect and would like your advice on how many hard copies we could expect since such indication is not apparent in your proposal of December 13, 1989. Again, our intent is to e:.:pedite review so as to meet our ., I...," April, 1990 goal and deadline. Page 1 of 2 (with attachment) EXHIBIT "A" . \ , ' ,. ., / PAGE TWO ACCEPTANCE OF PROPOSAL We look forward to your association with the City of Parkland and trust you will apprise me of details, schedules, and information collection that we could pre-address prior to your appearance in the City. Very truly yours, Harry ~ City Manager HM/abk cc: Mr. Jack Ryan, Coral Ridge Properties, Inc. Mr. Bradford D. Townsend, Director of Planning 90 - 50 'I j,' Page 2 of 2 (with attachment) Tischler 8. Associates, Inc. "". .1 :-----i . n- o I U rl1 ~a o ~l 1-1 Tischler & Associates, Inc. 4701 Sanpmore Road Suit. N210 Bttlhesda. MD 208 16 -1 I ! , , '_oJ (301) 320-6900 (800) 424-4318 Fax (301) 320-4860 Fi,callmpact Analysis . Capital FacUlty An.lysis . Impact F.. Systems . Growth Policy Planning . Economic llnCI M.rkel Analysis . The MUNI~ Sy.tem. &.1ilored tor each community December 13,1989 Mr. Harry I. Mertz City Manager City of Parkland 6500 Parksidc Drive Parkland, FL 33067 Dear Mr. Mertz: It is. a pleasure to submit this proposed work plan to assist the City of Parkland in its community facilities and capital improvement element activities. Based on my meeting with you, the Planning Director, and the Finance Director, I have proposed a plan of action which will yield the City important products and play an integral pan in the resubmission of the comprehensive plan. There arc several points which make this proposal unique. These are discussed in turn. " 1. The SCODe of work is comDrchensive. Based on my meeting with you and members of your staff. the proposed work scope includes: . a. b. c. d. e. f. g. Assisting the City and major developers in formulating the alternatives to be evaluated. Working with City staff to more specificaUy define the alternatives. Defining the level of service and cost and revenue factors. Preparing a written report which describes these findings. Running the MUNIES fiscal impact system for up to four development plans having different staging. Analyzing the service demands and the resulting fiscal effects (both operating and capital costs as well as reve- nues). Preparing a fiscal impact report, capital improvement element (CIE) report, as well as a revenue strategies memorandum. . I' At the end of the work scope. the City of Parkland will have a full understanding of the capital facility n~ and the fiscal consequences of various possible devel- opment plans. TA will work in concert with City staff to ensure a quality product. :--.. L r--.~ I ~ r--~ ! . , l._ r-: L. ,-- I ' I L._.~ r--'~ I , L_-, r-~ i ; L.; r'- i I L-_ Mr. Harry I. Menz December 13, 1989 Page 2 2. T A has unsurpassed fiscal imoact consultim~ exoenise. This assignment includes a fiscal impact analysis, which defines the cash flow to the public sector due to development. TA has conducted more flScal impact evaluations than any other consultinJ firm. TA's practice ranges from Florida to Idaho and California to New York. TA's expertIse in gatherin" local level of service and cost and revenue factor infonnation relating to municipal services WIll be a critical inaredient in the work process. 3. as ex ensiv ex eri n in IE evalu tion . TA's staff has been involved in cm repons in a number 0 Florida jurisdictions. These include Citrus County, Pasco County, Hillsborough County, as well as the cities of Venice and Tarpon Springs. TA has address~d capital improvement needs in other areas of Florida, including Broward and Palm Beach Coun- ties. This national as well as Florida experience in fiscal analysis and capital improvement element work will be invaluable in this assignment. 4. The T A st~ff workin2 on this assifnment have extensive relev,nt exoerience. Paul Tischler will be project manager on this assIgnment and have heavy part1cipation in the assignment. He has worked in a number of Florida jurisdictions on related assignments. He has been a speaker at the State of Florida chapter of the American Planning Association on the topics of fiscal impact analysis and the capital improvement clement (CIE). His IS years of relevant consulting has enabled him to help assist both private and public sector groups in working on common assignments. Some of his relevant assignments as well as articles and speaking engagements are indicated in his resume in the appendix. Also in the appendix is a partial reprint of a repon Mr. Tischler authored for the International City Management Associa- tion (ICMA) titled "Analyzing the Fiscal Impact of Development". Linda Hollis has over 10 years of relevant consulting experience and has been involved in a number of Florida jurisdic- tions in conducting fiscal impact evaluations. The other person likely to participate in this assignment is Dwayne Guthrie. Mr. Guthrie has extensive Florida experience in both the private and public sector. Please see the resumes in the appendix for the above individuals. S. T A has worked on behalf both the oubHc and orivate sector on the same assi2n- menL Because ofTA's open process in evaluating capital improvement needs and fiscal impact evaluations, it has been selected to work on a number of assignments in which the private sector paid for the work product which was prepared for the public sector. In these cases, T A keeps mterested panics apprised of its work progress and the assumptions so that all imponant ques- tions can be answered before the fmal product. Contracts of this nature include: Homebuilder's Association of Richmond and Chesterfield County, Virginia; City of Wesuninster, Maryland and Masonry Contractors, Inc.; Homebuilder's Association of Maryland and Carroll County, Mary- land; a consortium of developers and Stafford County, Virginia; and a large developer and the Washington, DC Depanment of Housing and Community Development. T A is confident that an amngement of this nature could be easily accommodated in the City of Parkland. : '~ ' We look forward to working on this assignment and providing valuable products to the City of Parkland. Please call me toll-free if you have any questions. t-. III Paw .Q~ Tischler & Assocla't~~'. "" r-"-' , l__ r-.- t~ , \,--- ['~ .. . r- L_ " I l...._.... r-- I I 'L._ ,- i , I l~._-, PROPOSED WORK PLAN FOR THE CITY OF PARKLAND I. SCQPE OF WORK. There arc several important products which will be generated by the work effort. These arc briefly noted below. The Tasks below will assist the City in its resubmission of the compre- hensive plan. The major focus will be on the community facilities and Capital Improvement Element (CIB) and include a full fiscal impact analysis. However, the tasks below will be inte- JI'Bl to the total comprehensive plan. u. . ,TASKS. A. initial Meetlna wltb City Staff and M--'.Jor DeveloDers. Paul Tischler will meet with appropriate City staff to discuss the specific work tasks, approach, timing, products,' and the coordination of T A with the City. This first task has been utilized by T A in othcr..work assil"ments, including CIE work in Hillsborough, Citrus, and Pasco Counties and the Cides of Tarpon Springs and Vemce. T A suggests that major developers be in attendance at this riiccting to discuss theiffnvolvement and input in the work effort. . B. Definition of Alternatives to be Evaluated. Paul Tischler will meet with the:, ' I City and major developers to agree on the alternatives to be evaluated. It is anticipated the focus will be based on the staging of the development plan. T A will work with City staff to define the alternatives, which will be forecasted for 1990-2000. The alternatives will be described in terms of types of residential and nonresidential land uses, and population and employment for the City. To allow for lag-lead time, construction and debt fmancing, the projections will be defmed on an annual basis. A memorandum will be submitted specifying the projections. C. Definition of Level of Service and Cost and Revenue Factors. A critical task is defining the level of service assumptions and the cost and revenue factors that will be utilized in the CIE. In conjunction with City staff, T A will develop level of service defmitions for the different municipal activities included in the comprehensive plan and then develop the relevant cost and revenue factors that will be applied against these public service demands. This infor- I Tischler & Associates. Inc. --- D- r- J ' I ' l.'-: r-~ I I L~ :-", i l~__ f~--' .1 i L., r--". , , L_. ~. ; 1 L.u_ .. mation will be obtained through interviews with City staff and be based on City data. T A has successfully followed this process in working with many small communities. If T A ascertains that' some of the above assumptions appear to be unusu~ with respect to level of service, costs, timing, etc., we will bring this to the attention of the City. If appropriate, TA may recommend additional field research be conducted to compare the informa- tion in question with local, state, regional, or national data. D. Preoa~e Level of Service Reoort. Based on the interviews with City staff, TA will prepaie a written rationale which summarizes the level of service and cost and revenue fac- tors agreed upon during the interviews. This rationale will be sent to City staff for review. Once mutually agreed upon changes are made, the report will be issued and the next task will be undertaken. B. Run tbe 14UNJES Fiscal Imoad SYStem. Once the information above is agreed upon by City staff, TA will (1) 'organize the information, (2) code the data, and (3) input it into the MONIES fiscal impact system. MUNIES, an acronym for Municipal Impact Evaluation S,ystem, will be tailored to the local Parkland information. MUNIES will then calculate the fiscal impacts, including a CIE, for each alternative (assumed to be no more than four). F. AnalYze tbe Service Demands and Resultlnl! Fiscal Effects. TA will analyze the results of the MUNlES runs. The MUNIES calculated results will include the foll~ing: Capital Facility}~'eeds, Available and Excess Capacities, Lag-Lead Time of New Capital Facili- ties, Amortization Schedules, Associated Capital Costs, Associated Operating Costs, All Other Operating Expenses, Specific Revenues, and All Other Revenue Sources. This information will be evaluated for each comprehensive plan alternative. G. Preoare Draft and Final Fiscal ReDOrt. T A will prepare a draft fiscal impact report and CIE report which describes the findings of the alternatives. T A will also prepare a : ; memorandum on revenue flows and the minimizing of any fiscal deficits which may be calculat- ed by the MUNlES system. The fiscal report prepared by T A will serve several important pur- poses. First, it will provide a comprehensive Capital Improvement Element (CIE) which can be submitted to DCA. Secondly, it will result in a full fiscal analysis of all capital costs, operating expenses and revenues of each of the alternatives evaluated. Thirdly, it will define in discrete terms the level of service and cost and revenue factors assumed for the City operations. It is important to note that the use of the MUNIES system will provide the City with a full fiscal analysis which includes all of the relevant services, not only those required by the CIE. Since operating costs. are usually at least 80% of a budget, it is critical that all operating expenses and 2 Tischler & Associates. Inc. ~ I ; I ;- L..J D' C r--' ! l__ .; l.__., t- , i_~_._,... ! I L___ ,.- i_.... 1'- I i L.._.- i L., revenue sources be evaluated in determining the fiscal future of the City. H. Other Steps. TA will be available to work on other tasks and issues pertaining to , I the comprehensive plan. In. PRODUCTS. , There are several important products which will be generated by the work effort. These are briefly noted below. A. Memorandum On Dennin! Alternatives. The specific land use projections of the selected alternatives will be discussed in a memorandum (fast B). B. CaDital ImDrovement Element. The em report will meet the DCA require- ments for this activity. In addition, the CIE report prepared by TA will calculate the annual and cumulative dc"llmds for services, and the capital and operating costs under all of the alternatives evaluated (Task G). c. [Jscal Imoact Analysis. The fiscal impact analysis will reflect all capital 'Co~ts, operating expenses and revenues, and present a thorough "cash flow to the public sector.~..'TA's unique experti~ in this activity will enable the City to fully assess the different fiscal implica- tions of not only capital faCilities, but all activities. This fiscal impact analysis will be a stand alone document which can be utilized by decision-makers to evaluate implications for tax rates, bonding margins, etc. of changes in land use, level of service, staging, and other possibilities (fasts G). D. Level of Service Definitions. This report will describe the level of service and cost and revenue factors utilized for all of the activities in the fiscal impact analysis. This will be very beneficial in allowing an understanding of how the land use affects City services and costs and revenues. The information can be utilized by the City for future evaluations (Task D). . . ;' , B. Revenue Stratemes Memorandum. As part of the work effort, a revenue strate- gy memorandum will be provided which discusses ways in which the City can eliminate any fiscal deficits. This could include staging changes, exaction requirements, revenue rate changes, level of service changes, and other considerations (Task G). 3 Tischler & Associates. Inc. ,.,...., Lit,..,... t. , '- J r0j.{;"':OS~.,~i[~:~(f:::i'f~' . l12J.: ,'..,,, ,.,:..~.~t.,.~,.. t-#..~p'lo' i~' ~.~/' ,:_~.:: .... :..,::~{/:~:,":. '. '., ' .,. ,nT,. .COST ,." .~Y. . . [] o D tJ D Given the nature of the assignment, the labor cost will-be billed on a per hour basis. The numbers below arc regarded as UDset figures. Out-of-pocket expenses will be additional. \--l TASK' COST Task A $1,900 Task B 4,900 Task e 10,700 Task D 3,800 Task E ' 4,300 Task F 5,200 Task G 7,900 .. . TOTAL $38,700 ..., , TA will submit an invoice monthly, based on percentage of completion. A p~~gress I report will also.Pc provided. V. QUALIFICATIONS , I , TA has unsurpassed fiscal imDact Qualifications. This assignment includes a fiscal impact analysis, which defines the cash flow to the public sector due to development. TA has conducted more fiscal impact evaluations than any other consulting firm. T A's practice ranges from Florida to Idaho and California to New York. TA's expertise in gathering local level of service and cost and revenue factor information relating to municipal services will be a critical ingredient in the work process. Please see the Appendix for more information. By using the MUNIES fiscal impact system in this assignment, we will be able to provide the City and inter- ested parties with the annual surplus or deficit, a capital improvements program, the impact on tax rates and bonding, and a base for revenue strategies. TA also has extensive experience in em work. TA's staff has been involved in cm reports in a number of Florida jurisdictions. These include Citrus County, Pasco County, Hills- borough County, as ~ell as the cities of Venice and Tarpon Springs. T A has addressed capital 4 Tischler & Associates. Inc. improvement needs in other areas of Florida, including Broward and Palm Beach Counties. This national as well as Florida experience in fiscal analysis and capital improvement element work will be invaluable in this assignment. . T A has worked on behalf both the 'Public and 'Private sector on the same assig~ment. Because of T A's open process in evaluating capital improvement needs and fiscal impact evalua- , tions, it has been selected to work on a number of assignments in which the private sector paid for the work product which was prepared for the public sector. In these cases, T A keeps inter- ested parties apprised of its work progress and the assumptions so that all important questions can be answered before the final product. Contracts of this nature include: Homebuilder's' Association of Richmond and Chesterfield County, Virginia;. City of Westminster, Maryland and Masonry Contractors, Inc.; Homebuilder's Association of Maryland and Carroll County, Mary- land; Consortium of developers and Stafford County, Virginia; and a large developer and the Washington, DC Department of Housing and Community Development. TA is confident that an arrangement of this nature would be easily accommodated in the City of Parkland. T A prides itself in conducting thorough work analyses which can withstand scrutiny from both public and private sector parties. Please see the resumes of the three primary individuals: Paul TIschler, Linda Hollis, and Dwayne Guthrie. ... ;..u i .......-.- .-.'. I ! I l_ 5 Tischler & Associates. Inc. APPENDIX I RELEVANT EXPERIENCE .... .." Tischler & Associates, Inc. '" , RELEVANT EXPERIENCE or Tischler &, Associates, Inc. (T A) is a fiscal, economic and planning consulting rum offering professional services to public and private client.. T A conducts studies that are comprehensive in scope and supported by accurately derived data and detailed analysis. The professional services offered by the firm include: o Fiscal Impact Analyses for Local Jurisdictions o Fiscal Impact Analyses of Development Proposals o Impact Fee Modeling o Revenue Sttategies o Capital Improvement Plans o Growth Manapment Studies o School Facilities Fcncasts o Comprehensive and Area Plans o Marbt and Economic Feasibility Studies o Softw~ Services (MUNIBS, FISCALS &, ClPS) TA has worked throughout the country conducting the types of analyses and performing the various services listed above. The jurisdictions for whom T A has provided fiscal, economic and planning services include the following: San Diego, California Hillsborougb County, Florida Phoenix, Arizona Venice, Florida Washoe County, Nevada Anne Anmdel Co~ty, Maryland State of Idaho Baltimore County, MarylanQ . Plymouth, Minnesota Montgomery County, MarY,land Kettering, Ohio Washington, D.C. . St. Louis, Missouri Norfolk, Virginia Ocean Springs, Mississippi Old Bridge, New Jersey Lexington-Fayette County, Greece, New York Kentucky Long Beach, New York Germantown, Tennessee Greene County, New York Raleigh, North Carolina Greenwich, Connecticut Nags Head, North Carolina State of Rhode Island In addition, T A has consulted with various private sector clients. These consult- ing services have been performed throughout the country, including Colorado, Florida, Maryland, Montana, Minnesota, New Jersey, New Mexico and New York. ' An important ingredient of many of T A's fiscal work efforts is the use of its licensed software systems, especially MUNlBS (the Municipal Impact Evaluation System). MUNIBS projects annual demands for departmental staff and capital facilities, and annual costs and revenues. It also calculates the annual impact on jurisdictions' tax rates, bonding capacity, bonding margin, and surplus or deficit levels. Examples of TA's experience are organized by types of studies and arc discussed in detail below. 1 Tischler & Associates, Inc. r. , r..._~ ,- L_j , '--.; ""lmoact AnalYSeS for Local Jurisdictions. TA has over ten years experience conducting fiscal impact analyses for local gov9rnments thIOughout the U.s. Among the firm's studies in this area have been the following. T A conducted a series of fiscal impact evaluations for' the City of Plymouth, Minnesota. Plymouth, a suburb of Minneapolis, is expecting continued population and employment in- creases through the year 2000. The City wanted to know the likely fiscal effects of four scenari- 01-- the base cue, duplex,e~tate and employment altematives. TA.workcd with local s~ to project the population and land use categories for the four alternatives. The firm also IDter- VieWed dopartlDental personnel and collected service level, cost and revenue assumptions for the fiscal impact analysis. T A analyzed the flScal impact calculations generated by the local data base, prepued a report, and presented the findings to the City Council. Prior to this effort, the firm tiad presented a fiscal impact work program feasibility study to the Plymouth City Council as well u to a citizen cost-revenue committee. This gave an understanding of the advantages and limitations of different fiscal impact work programs. In Germantown, Tennessee, a suburb of Memphis, TA evaluated the fiscal effects of existing zoning versus different land usealtematives. Similar work was completed for the village and township of Hudson, Ohio., For the City of Raleigh, North Carolina, T A established a fiscal , impact evaluation system. The system was set up using a prototype analysis of development in southeast Raleigh. Bight prototype developments for Greenwich, Connecticut, were also evalu- ated by TA. This study, fundedjointly by the Taxpayers Association ~ the Planning Com- mission, showed that seven of the eight land uses resulted in positive fiscal impacts. For the St. Louis Public Schools, TA was one of several consultants working on long-range, planning. On that assignment the Schools wanted to know the impact on their costs and reve- nues of continued declines in enrollment, population and employment. The State Q.f Rhode Island tetainod T A to evaluate the fiscal effects of redevelopment of a vacant military base on fom' adjoining townships. In Greene County, New York, TA analyzed the impact of three power plantaltematives on the County, the town and village of Athens, and two school distrlets. As a iesult of tho .tudy, the Power Authority entered into mitigation payments. Rapidly' powing coastal resort communities have looked to TA for advice on balancing the costs of pI'O\'i4m. pllblic services and capital facilities against existing revenues. These communities have included Nags Head, North Carolina; Venice, Florida; and Ocean Springs, Mississippi. In Ocean Springs, TA's client was the Mississippi Research and Development Conter, a state-level research and economic development agency. Another application T A has worked on is the fiscal and economic feasibility of proposed "new town" developments near Austin, Texas; Denver, Colorado; and Seoul, Korea. FIscal Imoact Analyses of Development Prooosals. In addition to the above-described work for local jurisdictions, TA has extensive experience evaluating the fiscal impacts of specific development proposals. These projects have been conducted for a variety of public and private sector clients throughout the U.S., and include the following. The Township of Old Bridge, New 1ersey, retained T A to evaluate the fiscal impacts of a proposed planned unit development that would increase population by almost 50%. The de- veloper, Olympia & Work, conducted its own analysis, using per capita and other average cost concepts. The Township retained T A to look at the marginal impacts of the proposed PUD. 2 Tischler & Associates. Inc. [ \_--...: 1bereforc, TA collected information on available capital facility capacity and marginal costs and revenuCl. 1be developer provided the Township WIth three alternative development schedules, ~g upon market absorption and lasting 10, 20 and 40 yem respectively. TA compued the effects of project build-out under the three schedules, in terms of additional public service delJ'aJ'd.t and the resulting costs and revenues to the Township. The firm then recommended three alternative fiscal evaluations that TA regarded as more realistic. The Township app1'C?vcd the.e alternatives and the rum conducted a comparison fiscal evaluation. Information from 1heae fiscal analyses was used by the Township in subsequent negotiations with the developer. TA bas been retained to evaluate the fiscal impacts of a number of other large mixed use devel- opIDmts. These have been located in Kettering, Ohio (the Dayton State Farm Tract); Washing- ton, D.C. (South Capital Street Development Project); and Norfolk, Virginia (Glenrock/Military Circle site). ' r""'-~ l : L~ ;"- l\ : L..: !,--- i' Other studies of this type include: evaluating plans for ITf's new community development on Florida'. cut coast (Pi11m Coast, Florida); analyzinl the impact of houlinl, retail and conference conter uses at the Snowmass ski resort in Colorado (Base Village development); determining the fiscal feuibillty of a residential and conference center development in Putnam County, New York (Kirk Lake); and analyzing the fiscal impacts of a proposed shopping center in Beaver- creek, Ohio. In Washoe County, Nevada, TA evaluated the demands for public services and the fiscal effects of rezoning two large ranches. At the request of the Board of County Commissioners, the Plan- ning and Finance Departments retained T A to evaluate the developer proposals, calculate the - pubHc services and fiscal demands, and prepare written and oral presentations. The two ranches were in different areas of the County, with different service levels and facility capacities. Within four weeks, T A delivered the fiscal report on one of the ranches to the County so that the find- ings could be discussed with the devefoper and presented to the Board of County Commission- ers. .... Impact:ee .Modeline. As development fees have become widely used tbroughout'the U.S., theu ev uation has become a common part of TA's consulting practice. This has included the followinllocations. In Sarasota County, Floridaw the firm conducted fiscal impact and related economic analyses to determine impact fees for new development. The County wu concemed about new growth p,aying its fair share, particularly regarding capital facility needs. In HiUsbor- oup County, Flonda, TA ascertained whether cUl'lent impact fees generated sufficient revenues to pay for facilities needed by new residents. The analYStS showed that the impact fee method- 010= amounts collected had to be upgraded. Most recently, the firm was retained to evalu- ate t fees in two other jurisdictions. The Home Builders Association of Billings, Montana, asked TA's advice r:N:ding utility system development fees in that city. In Anne Arundel County, the Home B. rs Association of Maryland retained TA to review the assumptions and calculations underlying proposed impact fees for roads and schools. After lengthy public ~~Js and private negotiations, impact fees were adopted at approximately half the level ori. y proposed by the County Executive. ;.... Revenye Sf"lt~les. Another facet of T A'. fiscal consulting work is the evaluation of revenue .tratel1es or locallovemments. In conjunction with fiscal impact analyses and capital im- provement plans, the rmn has developed revenue strategies for a number of clients. Iri Venice, Florida, T A evaluated a range of possible revenue sources, including the local option resort tax and gas tax, and impact fees for rU"C, police and public buildings facilities. For Nags Head, North Carolina, the rum's study of the fiscal impacts of growth laid the groundwork for the Town's future consideration of facility fees for various types of capital improvements. For the St. Louis Public Schools, TA produced a memo suggesting revenue sources such as earnings 3 Tischler & Associates. Inc. o r: i I l~ taxcl andla1cs taxes targeted to the school system. In Riverview, Michigan, TA analyzed the fiscatimpact of real property tax abatement on proposed housing for the elderly. For Boulder, Colorado, TA recommcrlCied financinglDCChamsms for the construction of drainage improve- ments. I ---.", " , ; ~ ~Drovement Plans. As local governments have 'become less reliant on Federal funds or tructurc, they have begun more long-range planning for constrUction and replacement of public facilities. Therefore capital improvement propmming has become an important part ofTA'1 consultinl practice. In Plymouth, Minnesota, the firm assisted the City in forecasting replacement costs for its existing capital facilities. Under the State of Florida's landmark growth manapment legislation, T A worked with Hillsborough County to produce the required Capital Improvement Element (CIE) of the Comprehensive Plan. The purpose of the CIE is to summa- rize tho need and resulting costs for publlc facilities identified under the comp plan. This in- cludes addressinl the costs of capital facilities needed to "alleviate existing deficiencies in service levels, as well u new facilities due to growth. The CIE must also show local ability to finance needed improvements. In Venice, Florida, TA produced a preliminary em as part of as~dy that inclucfed a fiscal impact analysis and an evaluation of revenue strategies. For Nags Head, Nonh Carolina, in addiuon to a fiscal analysis and revenue evaluation, the firm identified the cost of community facilities needed to the year 2000. Gro~2ement Studie,. Many of the types of studies described above are generated by comm es concerns with the management of growth. In addition, T A has worked with several major metropolitan areas on studies whose results were translated directly into long- range plans. These include Lexington-Fayette County, Kentucky, where the firm's work includ- ed an economic bue study and fiscal impact analr.sis of different growth policy alternatives. ' This study was considered when the County Council adopted a new comprehensivc_plan. In San DicJO,'TA helped to define different growth polley alternatives and evaluate their fiscal impacts as part of the City's Growth Management Program. The rum worked with a team of consultants in Baltimme County, Maryland, on the evaluation of growth alternatives such as the encourage- ment of more inrill versus suburban development. In Anne Arundel County, MarYland, T A worked on the f'Owth management plan. Specifically, the firm conducted fiscal and economic analysis including such factors as population, housing, income, and tax base projections." For Phoenix, Arizona, TA analyzed the fiscal implications of four alternative growth scenarios, as part of the City's Urban Form Directions Program. I' . ~I F~c;llitlJJ Forecasts. A specialized facet of capital improvement programming is school tieS orecasting. For the Washington, D.C., Board of Education, TA evaluated the budge- tary impacts of school closings, school clustering, and grade restrUcturing. This analysis includ- ed ~ubllC schools within the Disuict of ColumbiL With the St. Louis Public Schools, TA with staff to analyze schedules for rehabilitation of existing school buildinfs and for conversion of regular schools to specialized or magnet schools. In Anne Arunde County, Maryland, the firm was retained by a developer to evaluate the pupil generation factors used by the school system. With supportable pupil generation factors as a function of housing types, TA analyzed probable development Within school boundary areas. The rmu compared this to available building capacities in order to evaluate the need for new school facilities. ~ebensive and Area Plans. T A has conducted a number of studies for the City of as gton, D.C. The fmu was retained by the Office of Planning to evaluate comprehensive plan alternatives from a fiscal pers~tive. Also in Washington, TA was the prime contractor for the Downtown Plan, working With the firms of Wallace, Roberts & Todd and Whitley & 4 Tischler & Associates. Inc. ~- Whitley. On the D.C. Downtown Plan, TA projected the market for office, retail, hotel and residential land uses to the year 2000. The rum also conducted a financial analysis, including pro farmas, for the different land uses. Finally, T A analyzed the fiscal impacts of two different rates of growth for the downtown. , I For Long Beach, New York, TA has also participated in a number of planning efforts. Long Beach, a community on Long Island, initially retained the firm to work on oceanfront redevel- opment. This included the economic and fiscal feasibility of residential, hotel and retail land uses, as well as recommended zoning categories. TA's findings were presented at public hear- ings and were adopted b)' the City. Subsequently, Long Beach has retumed to TA for advice on updating its comprehensIve plan and its zoning ordinances. Mar and Economic Feas~lity Studies. TA has conducted scores of market and economic; feasi llity studies for both public and private sector clients throughout the U.S. Among recent. clients was the Bridgewater, New lersey, Redevelopment Agency (BRA). In that study the BRA retained TA to expedite negotiations with the developer of a regional Shop-ping center along an interstate. The rum conducted a market reconnaissance, a rmancial feaSIbility study from the developer's perspective, and a fiscal impact analysis from the public sector's perspective. The BRA used this information to successfully conclude negotiations with the developer. In New- ton, Musachusetts, a lubUli? of Boston, a major developer proposed a mixed use project, with . the City paying for the structured parking. The City retained T A to determine the probable ' market absmption, developer pro farmas, and financial alternatives. Working with the City, the developer, and a neighborhood coordinating committee, T A helped to arrange a financial package which included tax increment financing and City participauon in office rent increases. Most recently, TA was the economic consultant on a "housing linkage" project in Washington, D.C. In this case, the developer requested a density bonus in exchan~e for a $1.4 million contri- bution to renovate 44 apartment units within one-third mile of the site. The renovation will be conducted by a non-profit community-based organization. This project constitutes o{1e of the first experiments in housing linkage for the District government. . . In some instances, TA has been retained jointly by both a local government and a developer. Such a case was the analysis of a proposed mixed-use building near the subway in Takoma Park, Maryland. TA has also conducted a number of other market studies in the Washington, D.C., metropolitan area. These have included: the Torpedo Factory site or waterfront redevelopment, in Old Town, Alexandria; the Brookefield site or an industrial park in Prince George's County," MB!)'land; and redevelopment of several sites in Bethesda (Montgomery County), Maryland, and m Washington, D.C. Other market and economic feasibility studies have been conducted for redevelopment of Beale Street and other sections of downtown Memphis, Tennessee, and Salisbury and Towson, Mary- land. TA has also analyzed the feasibility of a resort/conference center in Garrett Count)', Maryland, and a civic center in Davenport, Iowa. The rum has examined industrial parks In Pennsylvania, New York, New lersey and Delaware. TA has conducted recreation market studies in Georgia, Pennsylvania and New lersey. Recently, the rum was part of the consulting team on the redevelopment of the Howard Plaza site, on land owned b)' Howard University in Washington, D.C. TA analyzed the feasibility of stadium, retail and reslCtential uses on the site. As part of this assignment, T A worked on a survey of university students ' housing preferences and shopping patterns. , Software Services. T A holds the license for several software systems. These systems, and especially MUNIBS (the Municipal Impact Evaluation System), have been used by TA in many of the studies described above. In addition, T A has sold or leased the software to State, regional and local government agencies and private clients, as detailed below. When TA makes its 5 Tischler & Associates. Inc. software available, it also provides initial training and on,oinJ technical usistance to the clients. Assistance islrovided on-site, collecting data and entenng It into the computer. Assistance is also provide long distance, over our toll-free telephone line. While data can be changed depending on the client's applications, the software itself never has to be mnc:Iified. I TA has provided software services to the following: State of Idaho Department of Bmployment; Southeast Idaho Council of Governments; Metropolitan Washington (D.C.) Council of Governments; Baltimore Reponal Planning Council; Montgomery and Prince George's Coun- ties in Maryland; Lexington-Fayette County, Kentucky; and Hillsborough County, Florida. At the City level, the following have purchased MUNIBS: Greece, New York; Germantown, Tennessee; P~ymouth, Minnesota; St. Louis Public Schools, Missouri; Raleigh, Nonh Carolina; and Arvad&, Colorado. A private client who used TA's software services was the investment banking firm of Boettcher & Company in Denver. This firm leased TA's software to evaluate the feasibility ofunderwrit- ing revenue bonds. ... '.-. 6 Tischler & Associates. Inc. APPENDIX II RESUMES .... .~., Tischler & Associates. Inc. PAUL S. TISCHLER Education M.B.A., Real Estate and Urban Development, American University B.A., Economics, Johns Hopkins University EXDerience Mr. Tischler has over fifteen years of consulting experience in fiscal evaluations as well as market and economic feasibility studies. For the last ten years he has been principal of the consulting firm Tischler & Associates, Inc. (T A). His advice has been sought by both public and private sector clients on a broad range of decisions concerning development and growth management. The types of studies he has conducted include the following. Examples' of each will be discussed in turn. o Fiscal Impact Analyses o Evaluations of bnpact Fees o Revenue Strategies o Capital Improvements Plans o Growth Management Studies o School Facilities Forecasts o Market and Economic Feasibility Studies FiscallmDact Anabses. Mr. Tischler has conducted scores of fiscal impact analyses throughout the country. Among his more recent assignments were the following. In Plymouth, Minnesota, a suburb of Minneapolis, he worked on forecasting the future public service demands and resulting fiscal impacts of four growth alternatives. Prior to this ef- fort, Mr. Tischler presented a fiscal impact work program feasibility study to the Plymouth City Council as well as to a citizen cost-revenue committee. This gave an understanding of the advantages and limitationsh of different fiscal impact work programs. In the Township of Old Bridge, New Jersey, southwest of New York City, TA evaluated the fiscal effects of new development to the year 2000 under three alternatives. In addition, the fmn worked on the fiscal analysis of a proposed planned unit development that would increase the Township's population by almost 50%. The developer, Olympia & York, conducted its own analysis, and the TownsHip retained T A for a more thorough look at six different development scenarios. In the City of Germantown, Tennessee, a suburb of Memphis, Mr. Tischler evaluated the fiscal effects of existing zoning versus different land use alternatives. Evaluations of ImDact Fees. As development fees have become widely used throughout the U.S., their evaluation has become a common part ofTA's consulting practice. This has included the following locations. In Sarasota County, Florida, Mr. Tischler conducted fiscal and economic analyses to detennine impact fees for new development. The County was concerned about new growth paying its fair share, particularly for capital facilities. In Hillsborough County, Florida, Mr. Tischler ascertained whether current impact fees generated sufficient revenues to pay for facilities needed by new residents. His analysis showed that the impact fee methodology and amounts collected had to be upgraded. Most recently, Mr. Tischler was retained to evaluate impact fees in two other jurisdictions. The Home Builders Association of 1 T'5chler & A<;so('l::tlr><; In': Billings, Montana, asked his advice regarding utility system development fees in that city. In Anne Arundel County, the Home Builders Association of Maryland retained Mr. Tischler to review the assumptions and calculations underlying proposed impact fees for roads and schools. After lengthy public meetings and private negotiations, Impact fees were adopteti at approximately half the level originally proposed by the County Executive. Revenue Strate,ies. Another facet of T A's fiscal consulting work is the evaluation of revenue strategies for local governments. In conjunction with fiscal impact analyses and capital improvement plans, the firm has developed revenue strategies for a number of clients. In Venice, Florida, T A evaluated a range of possible revenue sources, including the local option resort tax and gas tax, and impact fees for ftIC, police and public buildings facilities. For Nags Head, North Carolina, the firm's study of the fiscal impacts of growth laid the groundwork for . the Town's future consideration of facility fees for various types of capital improvements. For the St. Louis Public Schools, TA produced a memo suggesting revenue sources such as earnings taXes and sales taxes targeted to the school system. Capital Improvement Plans. As local governments have become less reliant on Federal funds for infrastructure, the)' have begun more long-range planning for construction and replacement of public faciliues. Therefore capital improvement programming has become an important part ofTA's consulting practice. In Plymouth, Minnesota, the firm assisted the City in forecasting replacement costs for its existing capital facilities. Under the State of Florida's landmark growth management legislation, Mr. Tischler worked with Hillsborough County to produce the required Capital Improvement Element (CIE) of the Comprehensive Plan. The p,urpose of theCIE is to summarize the need and resulting costs for public facilities idenuftcd under the camp plan. This includes addressing the costs of capital facilities needed to alleviate existing deficiencies in service levels, as well as new to finance needed improvements. In Venice, Florida, TA produced a preliminary CIE as part of a study that included a fiscal impact analysis and an evaluation of revenue strategies. For Nags Head, North Carolina, in addition to a fiscal analysis and revenue evaluation, the firm identified the cost of community facilities needed to the year 2000. Growth Mana2ement Studies. Many of the four types of studies described above are getterated by communities' concerns with the management of growth. In addition, Mr. Tischler has worked with several major metropolitan areas on studies whose results were translated directly into long-range plans. These include Lexington-Fayette County, Ken- tucky, where Mr. Tischler's work included an economic base study and fiscal impact analy- sis of different growth policy alternatives. This study was considered when the County Council ~dopted a new comprehensive plan. In San Diego, Mr. Tischler helped to define different growth policy alternatives and evaluate their fiscal impacts as part of the City's Growth Management Program. Mr. Tischler worked with a team of consultants in Balti- more County, Maryland, on the evaluation of growth alternatives such as the encourage- ment of more infill versus suburban development. School Facilities Forecasts. A specialized facet of capital improvement programming is school facilities forecasting. For the Washington, D.C., Board of Education, Mr. Tischler evaluated the budgetary impacts of school closings, school clustering, and grade restructur- ing. This analysis included a11182 public schools within the District of Columbia. With the St. Louis Public Schools, T A worked with staff to analyze schedules for rehabilitation of existing school buildings and for conversion of regular schools to specialized or magnet schools. In Anne Arundel County, Maryland, Mr. Tischler was retained by a developer to evaluate the pupil generation factors used by the school system. With supponable pupil generation factors as 2 Tischler & ASSOCIates Inr a function of housing types, Mr. Tischler analyzed probable development within school boundary areas. He compared this to available building capacities in order to evaluate the need for new school facilities. Market and Economic Feasibility Studies. Mr. Tischler has conducted scores of market and economic feasibility studies for both public and private sector clients throughout the U.S. Among his recent clients was the Bridgewater, New Jersey, Redevelopment Agency (BRA). In that study the BRA retained Mr. Tischler to expedite negotiations with the developer of a regional shopping center along an interstate. He conducted a market reconnaissance, a financial feasibility study from the developer's perspective, and a fiscal impact analysis from the public sector's perspective. The BRA used this information to successfully conclude negotiations with the developer. In Newton, Massachusetts, a suburb of Boston, a major developer proposed a mixed use project, with the City paying for the structure parking. The City retained Mr. Tischler to determine the probable market absorption, developer pro fonnas, and financial alternatives. Working with the City, the developer, and a neighborhood coordinating committee, Mr. Tilichler helped to arrange a financial package which included tax increment financing and City participation in office rent increases. Most recently, Mr. Tischler was the economic consultant on a "housing linkage" project in Washington, D.C. In this case, the developer requested a density bonus in exchange for a $1.4 million contribution to renovate 44 apartment units within one-third mile of the site. The renovation will be conducted by a non-profit community-based organ- ization. This project constitutes one of the first experiments in housing linkage for the District government. Prior to forming his own consulting firm, Mr. Tischler worked for Marcou, O'Leary and Associates, where he directed the finn's economic and fiscal analysis activities, and fQr Real Estate Research Corporation. Mr. Tischler has served as an instructor in real estate prac- tices at Montgomery College in Maryland and holds real estate licenses in the Di~trict of Columbia and Maryland. He has served as an expert witness regarding land and market values, and is .trained as a real estate appraiser. Publications tI Analyzing the Fiscal Impact of Development," International City ManalZement Association (ICMA) ManalZement Information Service (MIS) Repon. "Fiscal Impact Analysis - From a Developer's Perspective," Urban Land MalZazine. "Fiscal Impact Analysis, A Process which Evaluates the Future of a Community," PracticinlZ Planner. tlReal Estate Decision-making and the Computer," National Capital Area Realtor. (Re- printed by the Institute for Business Planning.) "Cash Flow and Its Relation to Investment," Baltimore Real Estate and BuildinlZ News. "Developing Vacation Campgrounds," Urban Land Institute. (Reprinted by the National Institute of Farm and Land Brokers.) "An Example: The Importance of the Highest and Best Use Analysis," The Real Estate Appraiser. 3 \, Tischler & ASSOCIates Inc I ' Speakine Eneaeements Mr. Tischler has spoken on fiscal impact analysis, revenue strategies, capital improve1l\Cnt programming, and impact fee modeling at a number of professional meetings and confer- ences. These have been sponsored by the American Planning Association, the National Association of Regional Councils, the American Civil Engineers Society, the State of Flori- da Planning Association, and others. Recently he spoke on "Comprehensive and Simple Approaches to Fiscal Impact Analysis" at the conference on Development Impact Analysis organized by Rutgers University's Center for Urban Policy Research. Seminars and Workshops Mr. Tischler has conducted fiscal impact seminars for the West Virginia State Planning Conference, the American Planning Association National Conference, the Western State Planners, and other organizations. Memberships Mr. Tischler is a member of the American Planning Association and the Urban Land Insti- tute. Professional Recoenition Who's Who in Real Estate Who's Who in Finance and Business Who's Who in the East 4 TIschler & ASSOCIClles If!( LINDA E. HOLLIS, AICP Education. Master of Regional Planning, University of North Carolina Bachelor of Ans, Pennsylvania State University Experience. Ms. Hollis has over ten years of experience as a fiscal, economic and planning analyst, working on both public and private sector applications. Her experience includes evaluation of such public services as police, parole and probation, libraries, housing and economic development. For the last five years, Ms. Hollis has been the principal planning analyst at Tischler & Associ- ates, Inc. (T A). At T A her work has focused on the following types of studies. Examples of each will be discussed in turn. o Fiscal Impact Analyses o Revenue Strategies o Capital Improvement Plans Fiscal Impact Analyses. Ms. Hollis has worked on fiscal impact evaluations for a number of local government clients. In Raleigh, North Carolina, the City retained T A to establish a fiscal impact evaluation system. The system was initially used to evaluate the fiscal effects of encour- agmg redevelopment in Southeast Raleigh. Ms. Hollis interviewed department heads and other staff to determine the costs of capital facilities, operations and maintenance, staff and other components of services the City would need to serve the new development. She alsoworked with the planning department staff to develop projections of increases in population, employ- ment, dwelling units, and non-residential square feet. As part of this assignment, the City ,purchased TA's licensed software, MUNIES (the Municipal Impact Evaluation System). Ms. . Hollis provided the City with its own version of MUNIES, including the service level, and cost and revenue factors calculated as part of the initial evaluation. She also trained planning de- partment staff in the use of MUNIES. Most recently, Ms. Hollis helped the City of Raleigh staff in using MUNIES to evaluate the fiscal impacts of redevelopment alternatives on North Carolina State University's Centennial Campus parcel. ' In Fairfax County, Virginia, Ms. Hollis has worked with the Office of Comprehensive Planning on their review of the comprehensive plan. TA's assignment has been to evaluate the fiscal impacts of several alternative land use concepts on the County's general funded activities, in- cluding the public schools. Ms. Hollis has also trained OCP and other County staff in the use of MUNlES, and is providing technical assistance on subarea and service-specific analyses. For the Planning Commission of Nashville-Davidson County, Tennessee, Ms. Hollis is establish- ing a fiscal impact assessment model to be used by the metropolitan area in monitoring devel- opment. Ms. Hollis is also working with Harford County, Maryland. on analyzing the impact of development and changes in technology on the County's services and capital facilities. Ms. Hollis' other fiscal impact assignments include Old Bridge, New Jersey; Plymouth, Minnesota; and Germantown, Tennessee. Both Plymouth and Gennantown purchased MUNIES and have continued to use the system for such applications as forecasting capital replacement costs and determining the fiscal feasibility of major annexations. Ms. Hollis has provided tech- nical assistance to the staff of both Cities in these applications. I TIschler & ASSOCIates In. Ms. Hollis has also completed fiscal impact assignments for the Town of Nags Head, North Carolina; the Planning Commission of Hillsborough County, Florida; and the St. Louis Public Schools. These assignments included the development of revenue strategies and/or capital improvement plans, and are described below. ' I Revenue Strategies. For the St Louis Public Schools, T A was one of several consultants work- ing on long-range. planning. On that assignment Ms. Hollis projected the impact of continued declines in enrollment, population, and employment in the City on revenues to the Schools. Another factor adversely affecting the School system is an aggressive tax abatement policy on the pan of the City. Ms. Hollis wrote a memorandum suggesting sU'ategies the Schools could use to address projected revenue shortfalls, such as earnings taxes and sales taxes earmarked for their use. That memorandum formed the basis of her presentation at the Association of Collegi- ate Schools of Planning Conference in 1985. Subsequently the St. Louis Public Schools Division of Research, Planning, and Evaluation purchased T A's MUNffiS software. Ms. Hollis worked with the staff to use' MUNlES to evaluate different configurations for the school system. includ- ing specialized programs and magnet schools. Ms. Hollis has also participated in T A revenue strategy work for Venice, Florida; and Nags Head, Nonh Carolina. Capital Improvements Plans. TA worked with Hillsborough County, Florida to produce one of the first Capital Improvement Elements required under state growth management legislation. On that assignment, Ms. Hollis identified the capital facilities needed to address existing deficien- cies in service levels and to serve new development in Hillsborough County to the Year 2000. She also compared the related capital and operating costs to available revenues, including impact fees. Subsequently, Ms. Hollis developed a preliminary Capital Improvements Element for Venice, Florida as pan of TA's work effort for that City. . Ms. Hollis also compiled a Community Facilities Plan for the Town of Nags Head, and worked with the City of Plymouth, Minnesota to analyze the costs of replacing their existing capital facilities. She drew on this experience in capital improvement programming to testify before a Congressional subcommittee in December, 1987. Ms. Hollis' testimony was on behalf of the 21,000 members of the American Planning Association (APA). She was asked to testify as a member of APA's National Board of Directors, and Chair of its National/State Policy Coordinat.; ing Committee. Other. In addition to the above types of projects, at TA Ms. Hollis has also participated in a number of other assignments. She did a study on financing storm drainage facilities for Boulder, Colorado. She worked with the Howard University Foundation staff to design, administer, and implement a survey of students' housing preferences and shopping patterns. She has also worked on a number of market feasibility studies, performing field work and pro forma calcula- tions. Prior to becoming an urban planner, Ms. Hollis was a planning analyst at the headquaners of one' of North Carolina's largest banks. In this capacity, she designed trclDsponation networks linking over 200 branches, implemented a cash management system at 34 branches, and evaluated other activities of the bank. Ms. Hollis was also employed by the Maryland Department of Fiscal Services, as the legislative budget analyst for economic development and housing. .... Publications. Viewpoint on domestic budget cuts, Planning magazine, April, 1985 "Second Housing Options for Aging Suburbs," Place, February, 1983 (wllh Patrick H. Hare). "Saving the Suburbs for Schoolchildren," Journal of Elderly Housing, 1983 (with Patrick H. Hare). 2 Tischler 8. ASSOClrllpC', Hie Review of literature on women and planning, Journal of lheAmerican Planning Association, October, 1980 Speakine: Ene:aeements. Testimony on Capital Improvements Programming, Economic Development Subcommittee, Committee on Public Works and Transportation, U.S. House of Representatives, on behalf of American Planning Association (1987). Panel on National Housing Policy, American Planning Association National Conference (1987) Colloquium on Computer-Assisted Decision Making, Lincoln Institute of Land Policy (1985). Panel on Impact of Changing Social and Economic Structure in a City: St. Louis and the St. Louis Public Schools, Association of Collegiate Schools of Planning Conference (1985). . Panel on Infrastructure Planning and Fiscal Impact Analysis, American Planning Association National Conference (1985) . Planning Directors Technical Advisory Committee Workshop, Metropolitan Washington Coun- cil of Governments (1984) Housing Development Advisory Service, Maryland Department of Economic and Community Development (1982) Professional Activities. Member, National Board of Directors, American Planning Association (1986-88) Chair, National/State Policy Coordinating Committee, American Planning Association (1987- 88) Chair, Task Force on Women and Minorities, American Planning Association (1987-88) Member, American Institute of Certified Planners Member, National Task Force on Employment and Unemployment, American Planning Associa- tion (1983-86) Chair, Economic Development Committee, National Capital Area Chapter, American Planning Association (1984-86) Chair, Human Services and Social Planning Committee, National Capital Area Chapter, Ameri- can Planning Association (1982-83) Professional Recoenition. Who's Who in the East 3 Tischler & AssOCtalPS Inl DWAYNE P. GUTHRIE ' Education Bachelor of Arts, University of Florida . Masters of Urban and Regional Planning, University of Florida Exoerience Mr. ,Guthrie has over eight years of fiscal, economic and planning experience. Mr. Gut- hrie has worked with Tischler &, Associates, Inc. on evaluating the fiscal impacts of devel- opment in Hillsborough County, Florida. This included the forecast of additional capital facilities needed to serve new growth. The study also reflected all operating expenses whether they were genera~ed by capital facilities or not. A revenue analysis was also conducted as part of the fiscarevaluation. The revenue analysis indicated that the impact fees were inadequate for paying for the new capital facilities generated by development. Suggestions Were made on changing the impact fee methodology in order to minimize the continuing cash shortage. Mr. Guthrie is currently working on planning, fiscal and impact fee evaluations in Charles County, Maryland and Howard County, Maryland. In July he completed previous work for Pasco and Manatee Counties in Florida. Mr. Guthrie has also worked on obtaining development approvals for large scale commercial and residential projects. His planning background also includes development reviews and neighQorhood planning. . With the consulting firm of Florida Land Design and Engineering, Mr. Guthrie worked on the development of a comprehensive plan for Pasco and Manatee Counties. This work included the preparation of the capitallmprovements element for Manatee County. In this work effort, the demand for capital facilities due to new growth as well as the inclusion of capital facilities needed to eliminate existing deficiencies were part of the work effort. Defining the level of service (LOS) discussing cost and revenue factors were also part of this analysis. Relevant operating expenses together with the capital costs were included. Once the total costs were ascertained, the revenue sources were evaluated to determine whether there were sufficient revenues to pay for the capital facilities cost. Mr. Guthrie has also worked in implementing local government comprehensive plans at the Hillsborough City-County, County Planning Commission (HCCCPC). Mr. Guthrie was a section chief for research and budgeting. This work included research and development trends, gathering existing land use and public facilities data, providing census information and evaluating revenue trends. He also worked on forecasting capital facilities as well'as funding alternatives, such as impact fees. Membershios American Planning Association,. . ' / '..., ' ',. " APPENDIX III TA FISCAL 1& ECONOMIC NEWSLETTERS AND OTHER REPRINTS / ,/ Tischler & Associates, Inc, -"/;';/~~,, '\{,:~," :;~"-,-~,.: '-< :,\;;: :,./':,:::~:':"~V: ..: :::.~i i:,.; >:'<',:":,:.,' ;'~-.~ .'-: .~'F:; _ _~',: ~;t: :<.:t. ".'ti\fa"~fr~tl1eMIS .rfi.dthQrea.tDy~UJ st'~er; . .' .... '.' ....:&.~tl!a,;Inc~ (T&A). ~r7,\~~~~4...~md~ "~;1:econoaiic,;~ysfs'Studies include 6scal ~yais, 'C{S.13:i'caP!tal;~~r..forecastina,trevenue "Strategies .. and '>i,t';2,'iiIDpact;~,;,"'~~!\'!iI~InIlJA1\YCIM.S' .1&A uses the '''X~l.fY8teni.anap~1 taJlo~for,each QD~~;Q1ore:inl()rmadon, or to iea5ve our '&.:a'r~~;&:~nOlDlc"Newslettef8 i., please 'iL"';~i....! f~"at 800 42+4318.:,:; },,'.. " . '...., . '.' '~~)~ji,2!t:!;i<;~;', '.. <;~~':~''''f:W;'/':'fi; .' ,i_"<,,.:_t:(~i~~~; '" - //' ,,:,".M!SReporta arep~Uah~1nODthlY by the Management .. '" ;,\ 'lnformadon;'ServIce, " mtemation&1' Cry. Management i AIIOCiadon,UZOO Stteet,'N.W.,Wuhinaton, D.C. ZOOOS. Copyright C 1988 by thelnternational ary Management Association. No part of this report may be reproduced without permission of the copyright owner: These reporta are intended primarily to provide timely information on subjects of praaical intereat to local government administrators, department heads, budget and research analysts, administrative assistants, and others responsible for and concerned with operational upectS of local government. MIS Reports are issued u part of a subscription service available to all local governments. A subscription to the Management Information Service includes unlimited access to the MIS InquirV Service-baclced up by the ICMA automated data base; the MIS Bulletin; Info Paclcets; and other pubUcations. Reprinted with permission of leMA .:.. ANAL VZING THE FISCAL IMPACT OF DEVELOPMENT Most states require local governments to prepare a balanced budget on an annual basis. However, most states do not require that jurisdictions conduct fiscal impact evaluations to help ensure that local officials understand the short- and long-term fiscal effects of land- use and development policies and of new developments that are approved. A fiscal impact analysis clarifies the financial effects of such policies an~ practices by projecting net cash flow to the public sector resulting from residential and non- residential development. Such an analysis can enable local governments to address a number of short- and long-term planning, budget, and finance issues. . This report discusses the benefits of fiscal impact analysis and reviews common methodologies used to collect and analyze information. Five case studies are provided to illustrate how fiscal impact analysis can be used in different situations. The report concludes by recommending an approach for con- ducting fiscal impact evaluations. . subarea? Do its current land-use policies malce sense? If COIta, II well II other factorl, are to be c:onsidered, then a flsc:al impact evaluation will help in the dedaion-maldng proceu. Demopoaphic-economic chanlea. Many elected and appoina=d loc:al government offic:ials can tell interested parties how they think their community will look in ten or twenty yearl in terms of population, housing, and employ- ment. But very few can say what the flSCal impact will be -whether servic:e levels will remain the same or deteriorate under pressure from a growing population. Similarly, when maldna c:hanaes to Jand..use regulations, few jurisdictions evaluate alternative development policies from a fiscal perspective. Evaluating development alternatives is a valuable use of flsc:al impact analysis. Reroninp. A rezoning c:hanges the density or type of use for i parcel; it may also be a signal of a change in develop- ment policy. Too often, significant rezoning cases are not luffic:iendy evaluated from a fiscal perspective. Fiscal analnfa can be helpful in loc:al govmunent-developer negotiations. Annexation. An area that may be annexed usually has some exilting public: services. One of the uses of fiscal impact analYlis is to ucertain the cost of improving the aervices in the area proposed for annexation in order to make them comparable to the annexing jurisdiction's level of service. The analylis can calculate whether there will be an annual financial lurplua or de6c:it from the proposed annexation during each year of the foreast period. InfrutnJcture plafininJ. One of the by-products of a good ftaca1 analysis is the forecast of infrastructure needa to meet antic:ipated chances in a community. Any change in land use, population, or employment will have an impact on a number of capital-intensive services, including streets and utilities. "-., A fiscal impact analys. helps identify the economic development strategy that makes the mOlt fiacal sense. Leveraging public dollan. Local officials considering how to promote economic growth often face the question of how to invest liinia=d funda so II to maximize the return. FiIcal evaluations can help them make their investments wisely. For example, different economic development .uategies can be evaluated for their impacts on land use. Land use in turn affects services, costs, and revenues. A fiscal impact analysis helps identify the economic develop.. ment sua. that makes the most fiscal sense. If a local government has $2.5 million for economic development programs and wants to dedde whether to allocate it among sewra1 commercial districts within the community, a fiscal impact analysis can provide useful information on the potential financial effec:ts. Finance '1Iue. There are a number of ways in which fiscal impact evaluations can address budget and finance questions. As noted earlier, a fiscal impact analysis focuses on change, generally over .. two- to ten-year period. Althopah the accuracy of the projections diminishes over time, the analysis can help to raise budget and finance policy issues and suggest alternative approaches for addressing them. Some of the issues are discussed below. Capital improvement pl'Op'8llUllinJ. Capital improve- ment planning takes on an extra dimension with the use of fiscal analysis, which enables a loc:al government to forecast the need for additional capital facilities 8iven projected increases in population or employment. Individual departmenes seldom incorporate market forces or land-use plans into their ClP requests. A fiscal analysis that looles at subareas of the community can help address thiJ issue. F1SCaI analysis also clarifies the timing of infrastructure improvements. By incorporating future demographic and economic projections, the fiscal analysis will indicate the demand for capital fadlities in the near as wen as the longer term. One community discovered through flsc:al impact analysis that the amount of park land included in its CIP was insufficient to provide the desired level of service even for existina development. This approach can also be used to calculate the cost and timing for replacing existing infrastructure. infrastruc- ture replacement COles are one of the 1?iaest fiscal ' problems facing many loc:algovemmenes. An inventory of existing capital fadlities and their related fu~re COlts can be obtained by estimatina the remaini~ useful Ufe of each fadlity and its replacement or rehabilitation cost. Revenue forec:udnl. For purposes of this dilc:ualion, a revenue forecast defines the projected change in revenues (assuming existing rates) due to Iand-use or demographic changes in the community. The revenue forecut is one of the results of a fiscal evaluation. FiIcal pJannina. Fisclll planning is different from budget planning because fiscal planning fOCUlel on chanse and uses a two- to ten-year time frame. Fiscal planni.. provides a long-term perspective on the coats and revenues uaodaa=d with each department and activity of a loc:algovemment, offering local officials the opportunity to reconaU:ler plans and policies. Budget projections. Fiscal impact analysis results in both short- and long-range budget projections for each depart- ment in the loc:algovemment. For example, an increase in the intensity of land use will generate a higher level of demand for police services. The analysis offers a budget projection for the pollce department, based on these changes and assuming specified service levels, over the forecut period. Loc:al offic:ials can look at this information for alternative levels of service, and project the effects of those alternatives on the budget. . activity to provide Iel'vices to residents. Germantown offldalt were alia considerina two other alternatives: one wu to eacourqe nonresidential, Ught..indUltrial and office uaea; the other wu to increase the density of residential development. The fiscal impact analysit focuSed on marainal COItI and revenues bued on local data factors --the CIse ltudy apprOlch WII wed wherever pouible. Exhibit 2 indicates that all three alternatives would have poIitive finandal results for the city. The atudy conftrmed that the current land-use alternative empbuizlna low-denlity s.-family housiD(l will enable Germantown to remain iM a poaitive fisc:a1 posture for the foreseeable future. The projeced cumulative surplus of $41 million it about 77 percent of the surplus that might be generated by the hi,h employment scenario. Elected offldalt have found that the fiscal impact analysis has given them a more spedftc: baseUne against which to meuure requests proposed by developers. The mayor and aldermen now are able to uk whether a proposal would have an economic impact over arid above that projected based on the future land..use plan. Germantown purchased a tailored software system for future A.scal evaluations. h quoted in the Germantown News, the administrator said, "We now have a tool. We can use this study to calculate what it will COlt, both in the short and long term, to maintain and develop the city in varioUl waYI." The city has continued to use the program for three primary pUrposes: reviewilll annexation ques- tions, evaluatilll the impact of propoaed large develop- ments (both ahoppina centers and residential), and capital improvements planning. Oermantown has an annual annexation procesl throUih which it looks at the cOlts and revenues that would result from additional annexation. Faced with high growth presaurea, the city has found the fiscal impact analysis software proeram worthwhUe in helping the planning commission and the board of mayor and aldermen review the fiscal effects of new growth. In the capital improvements planning process, OerrQantown UIeI the A.scal impact analysis program in plannina for future fire and police eervice needs. Germantown has a five..year capital improvements PfOIl'IID, and UIeI the ftscal impact analysis information for bacqround in scopins out budget propoals and related capital improvements requests by department. Overall, Racal impact analysis enables Germantown to maintain its land-use policies and understand and articulate the usumptions on which they are bued and their fiscal ramifications. Venice, florida-Developing Strategle. to serve Future Growth The city of Venice, Florida, has a permanent population of about 15,000 and a seuonal population of 19,000. Located in Saruota County on the booming Gulf coast, Venice is experiencing growth pressures. Developers in the country are requesting annexation, in large part because the city can provide better services to future residents than can the county. Venice decided to address several items in its 1987 !iscal impact analysis. It wanted to evaluate two growth alternatives, develop a capital improvement proeramthat would identify existlni faciUty deficiencies and project faciUty needs d\1e' to 1I'0wth, and create a revenue- development strateIY. I The first alternative uaumed 1I'0wth would continue to the year 2000u projected in the comprehensive plan. The second ,alternative usumed that additional Ifowth would result from annexation of an area to the north and eut of the exisdna city limits. City department heads and the consultant aped on service level, cost, and revenue factors, and these were used in the fiscal evaluation of the two alternatives. The fiscal evaluation forecut the need for new capital faciUtles to serve growth resulting from annexation. Florida state law requires that local govemmenti pro- vide a five-year projection of facilities to serve new develop- ment. Consequently, these new facilities were incorporated into a preliminary Capital hnprovement Element (CIE) for Venice. According to the state law, the CIE must also describe existing deficiencies in capital faciUties to serve the present population and the direct operatina expenses of those faelUties, and discuss the revenue sources the local government intends to use to pay for the needed capital facilities. Thi. last requirement was part of the reason Venice decided to develop a revenue atratqy u part of its fiscal impact analysis. The cumulative results of Venice's study indicated a flscallurplus under both alternatives. An imporamt reuon for this was that the buic rOld network and schools are provided not by Venice but by Sarasota County. The alternative bued on the comprehensive plan WII slightly more beneAcial 'from a fiscal perspectl.ve primarily because 8Mexation would require that additional capital faciUties be built within a few years of the annexation. . . .the fiscal impact analysis has helped the elected official. express their vision for the future. . . . Raleigh, North Carolina-Analyzing Economic Development Impact. Evaluating subareas of a community is a valuable approach for Racal impact analyses lince, u in the cue of southeut Raleigh, existlne capital facility capacities can be specified and revenue strateefes can be targeted. (See the MIS Report 1m a full di.scwsion) Plymouth, Mlnne.ota-Analyzlng Land-Use Alternative. and Co.t. for a Capital facility Replacement Program Plymouth is a MiMeapolis suburb with a population of about 45,000. In 1984, a cost revenue subcommittee com- posed of private sector representatives requested that the . NO. 24 ~ Tischler Ie Associates, Inc. Fiscal & Economic Newsletter J FISCAL ANALYSIS & PLANNING . GROWTH POLICY STUDIES · ECONOMIC ANALYSIS · DEVELOPMENT ECONOMICS THE MUNIES SYSTEM THE CIPS SYSTEM THE SCIPS SYSTEM THE FISCALS SYSTEM A QUESTION FREQUENTLY ASKED: IS MUNIES A CANNED FISCAL SYSTEM? NOt Becau.. every cOJDJIunity b unique, the level of .ervice and cost and revenue information will vary. Accordingly, KUNIES b tailored for each co_unity and is based on local service relationships, capital facility capacities, costs, etc. HUNIES acc~odates any type of demand source and encourages marginal (versus average) costs. That is why KUNIES is the most successful, comprehensive and easy to use fiscal system in the country. TiA uses MONIES in its consulting studies. FISCAL IMPACT OF ANNEXATION EVALUATED On behalf of the city of AnnapOlis, Maryland, TiA recently completed a fiscal evaluation of annexing a proposed new development. T&A conducted interviews with City departments and ascertained likely increases in public services and the resulting costs. The effects on revenue sources were then analyzed by T&A. The findings of the annexation alternatives and accompanying rationale were prepared for the City. IMPACT FEES AND REVENUE STRATEGIES FOR VENICE, FLORIDA In Florida and elsewhere, there is increasing focus on how new growth should pay for itself. In this regard, communities are now implementing impact fee. and other revenue mechanisms. Many communities find it wise to determine a revenue strategy instead of just focusing on. specific impact fees. A comprehensive revenue strategy is important because annual capital costs are much less than the associated operating expense. A comprehensive revenue strategy is important. In Venice, a city of about 14,000 people on the Gulf Coast, the city Council has retained T&A to conduct a series of steps. These include: Orientation Meeting Growth projections for Three Alternatives Collection of service Level and Cost and Revenue Factors Calculation of Data Using KUNIES Analysis of Data Preparation of Fiscal Impact Report Recommended Revenue Strategy Suggested Revenue Sources, and city Council Workshop. The completion ot the report will allow the City Council to determine which revenue sources to implement. The work by T&A will help Venice prepare for the required Comprehensive Plan update and the capital Improvement Element (CIE). (See the article on Hillsborough county on this page.) T&A COMPLETES WORK FOR HILLSBOROUGH COUNTY, FLORIDA CIE T&A recently completed work on the Capital Improvements Element of the Comprehensive Plan for Hillsborough County, Florida. The T&A report was one of the tirst in the state. The county retained T&A tor assistance in establishing a methodology for estimating the costs of needed capital facilities as well as conducting a full fiscal analysis. The purpose of the Capital Improvements Element (CIE) is to summarize the need and resulting cost for public facilities identified under the comprehensive plan. The CIE also requires an analysis.. of the fiscal capability of the local government to finance constructing the improvement., to adopt financial policies to quide the funding of improvements and to ensure that capital improvements are provided when required. The Capital Improvements Element Report was one ot the tirst in the State. The challenge in Hillsborough county was twofold. First, the County is located in the fast-growing Tampa-st. PeterSburg region. This complicated the task of estimating the costs of capital facilities to serv~ new development and the associated operating expense.. Secondly, Hillsborough county, like all other Florida jurisdictions, i. under State mandate to tie its capital Improvements Element to its comprehensive Plan. This includes addressing the costs ot capital facilities needed to alleviate existing deficiencies in service level. as well as new facilities due to growth. A8 a result ot these dual challeng.s, T&A's report summarized Hill.borough county's capital facility needs as follows: 1986-91 Existinq Deficiencies New Development $ 99.5 million $250.5 million elE Report (continued on psge 2) Toll-Free Number (800) 424-4318 Tischler & Associates, Inc. (703) 578-0777 5631 Leesburg Pike Falls Church, VA 22041 .! ~ FLORIDA CAPITAL IMPROVEMENT ELEMENT (CIE) REQUIREMENTS DISCUSSED The state of Florida has mandated that all jurisdictions complete a Capital Improve.ents Ele.ent (CIE) which projects not only the capital facility requirements due to new growth, but the costs of the capital tacilities to serve the growth and to cover any existiQg capital tacility detic~encies. The ClZ also mandates the jurisdiction to develop a revenue strategy which will pay for the projected capital costs. I Paul Tischler was a panelist at the state of Florida APA .eeting discussing the CIE require.ents for the state. Hr. Tischler suggested that an overall cost and revenue analysis be conducted in order to allow a community to tully understand its revenue alternatives and strategies. since capital facility costs account for only 10-20' of all annual budget costs, it is important to ascertain the associated operating expense.. In addition, all revenue source. .hould be evaluated in order to develop a co.prehensive revenue strategy approach. Hr. Tischler gave as an example the work T'A completed ~or Hillsborough County. A fiscal analysis should be conducted to allow for an understanding of revenue alternatives and strategies. MUNIES INCLUDED IN WORKSHOP OF VIRGINIA APA Among the topics of the Winter Workshop of the Virginia APA was the u.e of MUNIES on personal computers. In addition to de.onstrating the program, Linda Hollis gave worltahop participant. an overview of MUNIES and other techniques of fiscal 11iIpact analysi.. The workshop included a brief case study of two ditterent land use alternative.. This gave attendees the chance to create and edit data tiles using ENTER and to run HUNIES, comparing the fiscal impacts of the two alternatives. DIFFERENT APPROACHES TO INFRASTRUCTURE NEEDS AND FISCAL CONCERNS Paul Tischler moderated a panel on the above topic at the national conference of the American planning Association. Also on the panel was Don Xinney, Director of Planning in Arvada, Coloardo. Hr. xinney related his City's experience using KUNIES to evaluate the fiscal implications of different annexation approaches. The other panel .embers discussed the approaches taken to these issues in San Diego County, California. The panelists were Hildo Hernandes, Deputy Director ot the Department of General Services, and Bud owsley of CH2K Hill in Englewood, Colora~o. LINDA HOLLIS COMPLETES FIRST YEAR ON APA'S BOARD OF DIRECTORS Our as.ociate Linda Hollis i. completing her first year as a .ember of the Board of Directors of the American Planning Association. In that capacity she has been a member of the Development Plan and Budget Committee. This committee is responsible for overseeing the development and imple.entation of APA's strategic plan, and for formUlating the organization's first 'biennial budget, covering tiscal years 1988 and 1989. Also during the past year, Hs. Hollis has served as Vice Chair of the National-State policy Coordinating Committee of APA. With Karsha Ritzdort, Chair of APA's Division tor Planning and Women, she coauthored a proposed policy on child care. Finally, Hs. Hollis has been a member of the Board's committee on Job Placement Services. ---------------------------------------------------------------------------------------------------- Tischler & Associates, Inc. · 5631 Leesburg Pike . Falls Church, VA 22041 . (800) 424-4318 Please send the following: _ Recent RscaI & Economic Newsletters Information about T&A Consulting Services: _ MUNIES Questions and Answers _ Fiscal Analysis and Planning _ FISCALS Questions and Answers _ Growth Policy Studies _ Market Analysis _ CIPS Questions and Answers _ Development Economics - SCIPS Questions and Answers _ Other Name: Title: Street: City: Agency: Telephone: State: iip: /I. REPRINT FROM Government Finance Research Center, Municipal Finance Officers Association 1750 K Street, N.W., Suite 6':JJ. Washington, D.C. 20006 (202) 466-2473 Fiscal Impact Analyses Contribute to Sound Planning Netting two birds with one contract, Washoe County, Nevada, got- more than a fiscal Impact analysis from Its consultants. By Candace Fox, Director Washoe County, Nevada Department of Budget and Analysis Dear Reader: o. , ' We are pleased to present this summaryartlclewrlttellby the Finance Director of Washoe County, Nevada. This article Is based on a fiscal Impact analysis con. ' ducted by TMA using the MUNIES (Municipal Impact Evaulatlon System) process. TMA also has two. other software systems for use: FISCALS,. the Fiscal Analysis System, and CIPS, the Capital Improvements Programming System. For more information about TMA's fiscal, economic and software services, or to receive our TMA Fiscal & Economic Newsletter, please contact us toll.free at (800) 424-4318 or tma Tischler ,Montasser and Associates, Inc. 1000 Vermont Avenue, N.W. . Suite 805. Washington, D.C. 20005 One Denver Place. Suite 1000. Denver, Colorado 80202 ~ Tischler & Associates, Inc. Fiscal & Economic Newsletter , NO. 23 . FISCAl ANALYSIS & PLANNING · GROWTH POLICY STUDIES. ECONOMIC ANALYSIS. DEVELOPMENT ECONOt.1ICS THE MUNIES SYSTEM THE CIPS SYSTEM THE SCIPS SYSTEM THE FISCALS SYSTEM ST. LOUIS PUBLJC SCHOOLS BUY THE MUNJES SYSTEM st. Louis Public, Schools (SLPS) is involved in a comprehensive long-range planning process. In Phase I SLPS hired T'A to evaluate the fiscal impacts of demographic and economic changes in St. Loub. The MUNIES ' system wu used in this assignment, which culminated in a fiscal impact report. The lCbool staff en uslag MUNIES to proJect operatlag cmd capital COIIta of over 150 lCbool bu1lcUDgs. In Phase II of their planning effort, SLPS purchased the MUNIES system for their micro-computers. As part of their purchase, SLPS received the software, training manuals, test case, and on-site training from T&A. School staff are using MUNIES to project operating expenses and capital costs associated with each of over 150 school buildings. Among the evaluations are different types of curricula as well as configurations of school buildings. T . A CONDUCTS WORK IN BOISE, IDAHO The Boi.e Redevelopment Authority retained T'A to evaluate the fiscal implications of locating a retail mall in downtown Boise, in relation to other possible locations. Boise is the hub of a multi-county area in which there is currently no regional shopping center. T'A also suggested further steps in attracting a regional Shopping center to downtown. MUNIES PURCHASED BY ARVADA, COLORADO The city of Arvada, a suburb of Denver, purchased the MUNIES fiscal system and process to address planning, budgeting and management issues. Arvada has Near term eva1uatlODl ualDg MUNIES wW lDC:lude chcmglDg ..me:. levels CUI wen CUI economic: reclevelopmeDt Itrategl... initially used MUNIES to evaluate the fiscal implications of different annexation alternatives. The city's near term use of MUNIES will include evaluating Changing service levels and costs as well as economic redevelopment strategies. FISCAL ANALYSIS WORK COMPLETED IN RALEIGH T&A recently completed a report discussing the fiscal impacts ot growth in the Southeast area of Raleigh over a 20-year span under two difterent scenarios. The city has focused attention on this area in the hopes of creating incentives for generating increased demand for housing and non-residental activity. There were two alternative scenarios evaluated I the base case (trends), analysis and the optimistic alternative. Und~r both scenarios, population in this area of Raleigh was projected to increase by over 7,000 persons, to 26,664 at the end of the forecast period. The number of new housing units was estimated to increase by 3,660, to 9,902 over the same time period. The major difference between the two alternatives is the Change in employment. Under the bas. case, the increase in employment is projected to be 4,861J for the optimistic scenario the projected number of new jObs 18 10,779. " In the report prepared by T&A . 'for the city the fiscal results were evaluated on an annual and cumulative basis. Although there is a minimal difference between the base case and optimiltic alternatives for the first four years, the optimistic alternative generate cumulative net revenues to the city over 100\ greater in the 10th year and almost 500\ more by the 20th year than in the base case. FISCBI Analysis (continued on page 2) PLYMOUTH USES MUNlES TO BEGIN INFRASTRUCTURE REPLACEMENT FUND The past iS8ue of T'A I. Filcal , Economic new. letter reported that the city of Plymouth, Minnesota had purchased the MUNIES proce..' system for continued fiscal impact evaluations a8 well as The clty COUDcU approved the clty mcmager'l requnt baMd OD the IDformatJem !rom MVNIES. capital improvement programming. Recently, the city used its capital replacement cost report calculated by MUNIES to establish a line item in the bUdget for infrastructure replacement. The city council approved the city manager's request for an initial earmarking of $200,000 based on the information from MUNIES. Tlachler & Associates, Inc. ToJI.Free Number (800) 424-4318 5631 Leesburg Pike 125 S. Clarkson Avenue (703) 57PrOm (303) 628-9575 Falls Church. VA 22041 Denver, CO 80209 MUNIES FEATURED AT CONFERENCE ON COMPUTER-AlDED'DECISION-MAKING MONIES was the only fiscal impact model featured at a Lincoln Institute of Land Policy Colloquium on computer-aided decision-making held in Boston, Massachu~etts. Linda Hollis of T&A gave the Colloquium background information on the development and operation of MUNIES. She w~s followed by Blair Tre~ere, Director of Planning and Community Development of Plymouth, Minnesota" who discussed Plymouth's experience uSing MUNIES for fiscal impact analysis and capital improvemtnts programming. FISCAL IMPACT WORKSHOP HELD A three-hour workshop on fiscal impact analysis was conducted by T&A as part of the annual conference of the Florida chapter of the American Planning Association. OVer 30 planners from throughout the state of Florida attended the session. Under new growth management legislation, local jurisdictions are required to establish capital.improvement programs. The workshop attendee. asked many questions about fiscal impact analysis and, in particular, how T&A's MUNIES software system and process can be used in forecasting capital facility needs. The workshop included a "hands-on" demonstration of MUNIES on micro-computers. MARKET FEASIBIIJTY WORK IMPLEMENTED After providing scores of market feasibility studies to clients, Paul Tischler utilized T&A's real estate' and economic feasibility capabilities regarding development opportunities. The result was the purchase of a building and the opening of Champion Indoor Sports, of which Mr. Tischler is a general partner. LOcated in Fairfax County; Virginia Champion Indoor Sports is a 21,400 square foot, facility containing six baseball and softball batting cages, two baseball throwing ranges that measure speed and accuracy, and a regulation-size artifical-turf infield for softball. The infield is the only one ~f its kind in the nation. Champion is located in the Dome Building which contains 74,000 square feet. Paul Tischler and his development partners are currently evaluating additional economic development opportunities for the site. Please note that Tischler & As.ociate., Inc., will also be ,located at the Dome Building as of May 1986. Our new addre.s and phone number will be: 5631 Leesburg Pike, Falls Church, VA 22041, (70~) 578-0777. our toll free number will remain (800) 424-4318. ... L1NDA HOWS ELECTED TO APA BOABD OF DIRECTORS T'A staff member Linda Hollis has been elected to the American Planning Association "8 Board of Directors. In this capacity, Ms. Hollis will represent approximately 3,500 members of the prOfessional association in ten chapters in nine Southeastern states and the District of Columbia. Ms. Hollis has been active in the National Capital Area chapter of APA. She has a180 been involved in the association"s national policymaking activities, as a member of the National POlicy Coordinating Committee and the Task Force on Employment and Unemployment. Finally, Ms. Hollis has been an active member of APA's Economic Development and Planning and Women Divisions. ------------------------------------------------------------------------------.---------------------- Tischler & Associates, Inc. . 5631 Leesburg Pike . Falls Church, VA 22041 . (800) 424-4318 Please send the following: - Recent Fiscal & Economic Newsletters Information about T&A Consulting Services: - MUNIES Questions and Answers _ Fiscal Analysis and Planning - F1SCALS Questions and Answers _ Growth Policy Studies _ Market Analysis _ CIPS Questions and Answers _ Development Economics - SCIPS Questions and Answers _ Other Name: Tit(e: Street: City: Agency: Telephone: State: Zip: . . ' 'l' "Ta Tischler & Associates, Inc. 04701 Sangamore Road Suite N210 Bethesda. MD 20816 (301) 320-6900 (BOO) 4244318 Fax (301) 3204860 Flscallmpact AnaJyala . c.pIt8l FICllIty Anal)'ll. . Impact Fee Sy_IM . Growth Policy Planning . Economic .nclMartcet AnaJyala . The MUNIES System- lallol"v' l" "community Tischler & Associates, Inc. (T A) is a fiscal, economic, and planning consulting firm off~ng professional services to pubUc and private clients. T A conducts studies that arc comprehensive in scope and supported by accurately derived data and detailed analysis. The professional services offered by the fmn include: Fiscal Impact Analysis Capital Facility Analysis Impact Fee Systems Growth Policy Planning Economic and Market Analysis The MUNIES System The FISCALSSystcm The CIPS System T A has worked throughout the country conducting the types of analyses and performing the various RlVices listed above. The jurisdictions for whom T A has provided fiscal, economic. and planning services include the following: San Diego, California Phoenix, Arizona Washoe County, Nevada Plymouth. Minnesota Stale of Idaho Kettering. Ohio Hillsborough County, Flmda Tarpon Springs, Flenda Sarasota. Florida Venice.Fbida Ocean Springs, Mississippi Nashville-Davidson County, Tennessee Lexingtoa-Fayetto County, Kentucky Germantown, Tennessee Anne Arundel County, Maryland Howard County. Malyland Baldmore County. Maryland Montgomery County. Maryland Charles County. Maryland Washington, D.C. Fairfax County, Virginia Chesterfield County. Virginia Norfolk, Virginia Greece, New York Long Beach. New Yolk Greene County. New Y~ Bridgeport. Connecticut Groton, Connecticut Greenwich, Connecticut Stale of Rhode Island T A's comprehensive and thorough approach has ~lt.ed in a number of imoact fee and exaction ~ on behalf of both counties and developers. for example. within Maryland. T A bas cri- tiqued impact fees for the Home Builders Association of Maryland in Anne Arundel and Carroll Counties. TA bas also p~pared impacl fecs for Charles Counly. In Virginia. TA is preparing cash proffer fee methodologies for both the Home BuDdem Association of Richmond and the Chesterfield County Board of Supervisom. An important ingredient of many ofTA's fiscal work effons is the use of MUNJES. MUNIBS. the Municipal Impact Bvaluation Systcm. is a fiscal analysis system which bas been utilized by TA andjurisdictiODS throughoullhe country. MUNIES will nOI only project Ihc annual delJ\.ncJ for departmental atafl'. capifal facUities and annual costs and ~venues. but also tho annual impact on the jurisdiCtiOD'. tax ratcB. bonding capacity, bonding margin, and surplus or deficillevels. MUNlES is unique in its comprehensiveness, ease of use, and flexibility. MUNIBS is tailored for each Jurisdiction. It is important 10 note that MUNJBS can be c:banged to accommodate dift'erent applications and data relationships withoUI ever changing the software. Also. the accompanying user's manuals are comprehensive and easy to understand. For more information about TA's consulting services, the MUNIBS, FISCAL, CIPS, and SCIPS systems. or our free TA Fiscal & Economic Newsletters, contact us on our toll-free tclephone number (800) 424-4318. FISCAL FUTURE OF THE ST. LOUIS SCHOOL SYSTEM A paper by this title was presented by T&A at the annual conference of the Association of Collegiate Schools of Planning. Linda Hollis was on a panel entitled, "Impact of Changing Social and Economic Structure in a City: St. Louis and the St. Louis Public Schools." Other speakers were Dr. Ned Hill of Cleveland State University and Dr. Norman Walsh of the St. Louis Public Schools. Both the paper and the panel arose out of Phase I of the St. Louis Schools' Long-Range Planning effort. As part of that assignment, T&A looked at the fiscal impact of three scenarios for change in St. Louis' population, employment, and school enrollment between 1985 and the year 2000. The three scenarios and the resulting impacts were described in the last issue of the T&A Fiscal & Economic Newsletter, No. 22. In addition to the fiscal impact report, T&A issued a memorandum to the St. Louis School System, suggesting responses to the projected fiscal deficits. That memo formed the basis for the bulk of the paper presented at the ACSP conference. Among T&A's recommendations were that the St. Louis Public Schools work to reduce tax abatement, obtain other local revenues, require simple majority approval of school funding, and reduce school expenditures. PANEL ON INFRASTRUCTURE PLANNING AND FISCAL IMPACT ANALYSIS A panel on the above topic was held at the American Planning Association national conference. One of the panelists was Paul Tischler who first discussed the case study methodology used by T&A in performing fiscal impact analysis for local governments throughout the U.S. Mr. Tischler gave a case example of the use of fiscal impact analysis in infrastructure planning in the city of Long Beach, New , York, a revitalizing ocean front community on Long Island. T&A assisted the city in formulating alternatives for redevelopment, inCluding using fiscal impact analysis to project the cost of parks, streets, water, sewer, and other capital facilities needed to support the new development. Al.o on the panel was Blair Tremere, Director of Community Development for the City of Plymouth, Minnesota. Plymouth, a suburb of Minneapolis, recently retaine~ T&A for both fiscal impact analysis and .capita.1-imprQvements programming. As a result, Plymouth has a forecast of their need for new capital facilities between now and the year 2000. In addition, they have a computerized system of projecting the cost Plymouth bas a computerlud system of projecting the coat of replaclDg their ex1at1Dg Infrastructure between now and the turn of the century. of replacing their existing infrastructure between now and the turn of the century. This information enabled Plymouth's administration to convince the city council to begin earmarketing funds solely for infrastructure replacement. Mr. Tremere stated that Plymouth was one of the very few jurisdictions in the country which had an inven~ory of all of their capital facilities, including the useful life and replacement costs, available for a wide variety of financing, budgeting, and planning uses. ~ Tilch", 6 Auoclat.., Inc. Fiscal & Economic Newsletter NO. 23 U,S. POSTAGE PAID AALlNGTON. VA PERMIT 17M 5631 Leesburg Pike, Falls Church, VA 22041 FIIc8I Analysis (continued from page 1) The impact on each department is reflected in the Southeast Raleigh operating budget summary, shown for the base case below. The negative figures indicate the net cost for each of the city departments while the positive figures are ~evenues to the general fund. Even though there are deficits shOwn for the first three years, there 18 a ten year cumulative surplus. The operating budget summary allows decision-makers to see in a glance what the impacts are of different types of services. BASE CASE GENERAL FUND II IA~ IAII "'IA"" UGlY _If ...................................... YW 4 6 9 10 "' '01 bCII ....,1111I ...... .", ,U77 '2m .4131 '''21 .m5 '862' .10141 - 11654 -13167 '1S139 '1'NZ7 EftD thougb there CTIl. .... '44ft '44ft .44ft .469$ '469$ .469$ .469$ .44ft .469$ '469$ 'W9S0 "-MIl. ,lOll ,maGS 'I07U2 ,106757 -10S6S9 'Im58 971" 91349 9l'3Q3 9l'Z4.1 '150m are d.flclts Mown IIllNCT.ClIlI '43GS '51S5 "00013 -IOSU '11"9 '114" 'IZSII ,11190 ,11401 '40153 .llma for the flnt thr.. '_'ATIl .24725 'moo . mOl '401. 'U5a '5Ofl2 ,S6HQ '61319 ''''"'5 .",- ,741014 years. there II a t.n "1lAIICI "" .Ihl ,Z"3 .3664 ,.." ,6111 ,7653 "995 '10137 ,11679 -15429 ' 706Z9 PCll.11:I DPT '19346 '354" .5m7 '8S147 -"686 '111184 '1nu2 '171710 '16"79 . Z4U9S -11IS9J7 year cumwatl... ,.n OPT ,356 ,713 .1069 '1429 ,1841 'ZZ3J .zm .S016 .5408 '416110 ,433100 1W'p1us. I'Ull.JCloIaIU '27D3G '44060 -13404 '1101" .U74" ,163019 '188S06 'ZIOJU 'U9627 'ZA3418 '14571l6Z 'Ala , IlIC .80J19 -84IJ1 .,7NI .".... . ISm,. .hzm -126665 ' Z30S37 . ZJ4409 'UZ4J6 -173487ll IMM. 56m 13445 158'''' zl5m 276571 ",4Z7 365006 4J1l1S4 474440 5554,. Z936m _w. .... II .00 'II ll000l IfllS 175630 321500 451Q83 "'923 6",0611 79OO8J 194612 99UZ:I 4934U7 lUIPI.lIt 01 omerr -121761 'Im" .146160 7608J 147'914 Z0510f StUll 600632 120165 ,5567 1120126 The report indicates quite cl,arly that the city could offer substantial incentives to attract non-residential activity in Southeast Raleigh and still achieve favorable fiscal benefits. The cumulative results are shown below: CUMULATIVE USUL'l'S ''l'O OBNDAI. 1'lJNt). DUE TO GROW'l'H IN SOU'1'HBAST RALEIGH , (IN MILLIONS or CONSTAN'l' DOLLARS') TIut report Indlcat.. quite clearly that the dty cowd offer lDcenU... to attract DOD.,..ldenUal activity In Southeast Raleigh cmd .un achl.... Ilac:al beuBts. YI~ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 l!I 20 ALTBRNATIVI BASI CASI OPTIMISTIC .( .11 ( .3) ( .4) (.4) ( .2) ( .01) .5 1.1 1.8 1.8 1.8 1.7 1.8 1.9 2.2 2.0 1.9 1.9 2.0 1.7 Sf .1) (.3) ( .4) ( .2) .03 .4 1.2 2.1 3.2 3.6 3.9 4.3 4.8 5.5 6.4 6.9 7.5 8.3 9.2 9.7 Source: MUNIIS Computer Output, T1.chler , A..oc1ate.. 1985 The optlmiltlc alternative generat.. ClUDulatlve net revenues to the city o...r 100% greater In the 10th year than In tbe baN case. T Be A INVOLVED IN SURVEY OF HOWARD UNIVERSITY STUDENTS , T&A recently completed work with the Howard Un~versity Foundation on a survey of over 2,000 Howard students. This survey, which was one of the most extensive ever conducted in the country, asked both graduate and undergraduate students about their housing preferences and retail expenditure patterns. This information will be used by T&A and University staff in conducting market feasibility and financial analysis work on a multi-use site in proximity to the University. Fiscal Impact Analyses Contribute to Sound Planning By Candace Fox, Director, Washoe County, Nevada Department of Budget and Analysis Netting two bird. with one contract, Wa.hoe County, NeWlda, got more than a fiscal Impact analysl. from Ita con.ultants. Over the past few years, Nevada has been one of the fastest growing states in the Union, Washoe County, the state's second most populous county, was not immune to this boom environ- ment. Between 1976 and 1980, gaming casinos increased from 24 to 37, up 54%, Population increased by 23% from 158.700 to 195,700. Total employment increased 11% annually, and the unemployment rate in 1978 was an incredibly low 2.8%, Ouring this period, residential and commercial development flourished. In 1980, the Washoe County Board of Commission- ers was confronted with two large-scale developments, Assum- ing all residential units in the projects would be sold and occu- pied. (he county's population would increase by 9.000, or 4.6%, The sheer size of the developments plus pending legislation to cut property tax revenues by 50% encouraged the Commis- sioners to request a financial analysis of the two projects, To answer the following questions. the Commissioners chose a fiscal impact analysis to provide the relevant information: . What will be the net annual fiscal impact on the county's budget over a 10. or 20-year span? Will the cost of provid- ing services exceed the revenues generated by the proj- ects? . What is the breakdown of capital construction, debt ser- vice, and operating costs for the service levels to be pro- vided? What is the breakdown of revenues to be gener- ated-property, sales, and gas taxes, and user fees? . What workload will the projects place on existing staff? . What is the optimum phase-in for each project? Should the "buildout" be completed in a short or long timeframe? Should developments adding commercial facilities pre- cede a strictly residential project? (Historically commer- cial projects provide a more favorable fiscal impact than do residential.) . Given the need for capital construction (roads. fire stations, parks), should negotiations be initiated with developers to contribute or provide some of those needs? If so, what and how much demand Should be placed on developers? Tischler. Montasser & Associates, Inc, (TMA) of Washington, D.C, was hired to provide on-site analytical services for the first two studies. More important. however. they were requested to provide technical training to Washoe County staff so that all In one week, the consultant and one county budget analyst collected all the necessa" cost and revenue Information to develop a fiscal Impact analysis. future fiscal impact studies could be completed in.house with- out the aid of outside consultants. Acquiring the in-house exper- tise was one of the primary objectives of the Board of County Commissioners. One budget analyst was assigned the responsibility of "shad- owing" the consultant while in Washoe County, Two weeks were spent collecting cost and revenue data from county depart- ments and at all times the budget analyst. accompanied the consultant, keeping notes on whO was interviewed, the ques- tions ask~ and the data collected, While the consultant was in Washington, D,C. programming the cost/revenue data, daily telephone contact was made to keep the county analyst abreast of the analysIs and to continue the training process, On his return to Washoe County with the computer program run, the consultant trained three county ana- lysts to interpret the program and its data for ultimate presen- tation to the elected board, ' In the end. the only capability the county did not acquire is data input to the computer model. This problem was alleviated . by an agreement with the consultant to reimburse them for input services on any future fiscal impact analyses, All other stages of the analysis will be done solely by Washoe County staff- data collection. analyses and presentation to the Board of County Commissioners, Within four weeks the analysis and conclusions were delivered to the Board of Commissioners .0 that discussions between the Board and the developer could begin. Fllcallmpact An8lyses-Results The first analysis was on the Red Rock Estates development, 920 single-family hOUSing units, In one week, the consultant and one county budget analyst collected all the necessary cost and revenue Information to develop a fiscal impact analysis, Within four weeks. the analysis and conclusions were delivered to the Board of Commissioners so that discussions between the Board and the developer could begin. The analyses were easily understood and useful In the decision making process. Briefly. the analysis indicated that. over 10 years, Red Rock Estates would generate a cumulative fiscal surplus to Washoe County of $3,5 million if the project was built out in six years or $2,6 million if built out in 10 years, The second development. Double Diamond Ranch. pro- posed 3,046 housing units, and 583.000 office'and 370,000 commercial square feet, The fiscal impact aRalysis indicated that, over 20 years, the development would generate a cumu. lative fiscal surplus for the County of $19.1 mi Ilion for a three- year buildout, and $13,5 million for a 12-year buildout. The analysis stressed that favorable county results were predicated on the assumption that the capital infrastructure would be pro- vided by the developer, As with Red Rock Estates. the data for the second analysis were collected quickly, The Board of Commissioners, having reviewed and dis- cussed the analyses as well as other information, approved both developments, Future Uses The downturn in the economy has severely retarded the pace of development in Washoe County, Consequently, opportuni- ties to conduct additional analyses have been absent. However. the Board of Commissioners supports the concept of fiscal impact analysis as one source of information needed for sound residential and commercial planning. The Board val- ued the information provided by the first two analyses as it provided the answers to the questions they posed. The analyses were easily understood and useful in the decision-making proc- ess, While the Board stresses that not every development lends itself to an analysis, Commissioners will use this method to analyze other larger developments, Thus. the future use of this newly acquired analytical tool is assured, The capability acquired by Washoe County staff to conduct the analyses further guarantees fiscal impact analyses will playa large role in Washoe County, The future use of this newly acquired analytical tool Is assured. The capability further guarantees fiscal Impact analyses wlll playa large role In Washoe County. TiA BEGINS LONG BEACH, NEW YORK OCEANFRONT STUDY The oceanfront city of Long Beach is 15 minutes from Manhattan and 20 minutes from JFX Airport. '.ricA conducted economic, fiscal, CIP, planning and zoning work for the city in 1981 with an emphads on encouraging new, quality development. This work culminated in an adopted master plan and zoning ordinance. The new development in Long Beach since 1981 has been noted in several publications including The New York '.rimes. Because of the amount of development activity, '.ricA has been retained to reevaluate the oceanfront area of the City. The work will include an analysis of toning categories by city block, height restrictions, parking requirements, side yard setbacks and other factors. '.rhe findings will be prepared for the City Council and discussed at subsequent public hearings. FORECASTING SCHOOL CHILDREN FROM NEW DEVELOPMENT With increasing concern about adequate capital facilities, jurisdiotions need more information about the number of new students caused by developments. In Anne Arundel County, Maryland, '.ricA was retained by a developer to evaluate the pupil generation factors used by the county. '.ricA prepared a report which utilized eupportable pupil generation factors as a function of housing type. T&A also analyzed other probable development in the school boundary area which would create deaand for new school space and the annual available school capacities. '.ricA prQVided a report comparing the differences in demand for new schools using different pupil generation factors based on the development. SEMINAR ON DEVELOPMENT IMPACTS The Rutgers University Center for Urban Policy Research sponsored a two day session on development impact analysis, which included "the best people in the field briefing you". One of the topics included Fiscal Impact Analysis. Paul Tischler talked about "Sophisticated and Simple Models of Fiscal Impact Analysis". Hr. TiSChler gave ,exa.ple. of how even the .mallest communities (with part-time employeee) could have fiscal impact evaluation. focusing on marginal service demands and cost.. If you would like a tape of the fiscal impact analysis session, please contact Tischler & Aa.ociates for details. HILLSBOROUGH COUNTY PURCHASES MUNIES SYSTEM Aa noted elsewhere in this newsletter, TlcA completed a fiscal impact analy.1s and capital improvement work for Hillsborough county. Once the tailored KUNIES..y.tem and its potential applications Were furthar evaluated, Hillsborough County's Office of Fi.cal .Services purchased MUNIES for their own Use. with the Hillsborough County City-county Planning Commission, they will be Updating the Capital Improvements Element of the Comprehensive Plan on an annual basis. Among the immediate applications will be evaluations of Developments of Regional Impact (DRI); monitoring the adequacy of impact fee collections and formulas; utility demands and fee structures; and other fiscal and budgetary matters. MUNIES will be used tor DRI applications, impacl1ee modeling, utilily demands, elc, 'In" NO. 24 .~ TllChler & AsIocI.t... Inc, Fiscal & Economic Newsletter U.s.1IOST1olIE ,AlII IUUC UTI ~VA 1'IlllIlT". 5631 Leesburg Pike, Falls Church, VA 22041 CJEReport(continuedfrom psg, 1) TlA al.o examined Hill.borough county's tiscal tuture between 1986 and 2000. The annual re.ult. to the Ceneral Fund, assuming current revenue sources and tax rate., are shown in the operating budget suuaxy which tollow.. ,Thia .budget shows annual deticits between 19.6 and 1990, changing to surpluses between 1991 and 2000. On a cu.ulative basis the Ceneral Fund experienced a surplus of over $160 million. It should be noted that deficits in the tirst tive years are largely due to exi.ting deticiencies. These expens.. would be otfset by such revenuea as ad valor.. trom existing resident. and current fund balances. For existing deticienci.s between 1986 and 1991, major coata are tor a new jailt wastewater tacilities, neighborhood parka, water facilitiest and fire station.. For new development between 1986 and 1991, the most siqnificant items are road construction, drainage and other road improvement., followed by waatewater and water tacilitie. and tire stations and other equipment. For both type. of capital expenditures, improvements are planned to 21 different .ite. operated by the Hillsborough county Fire Department. Existing deticiences as well as new capital reqUirements were calculated, It is important to understand the full fiscal needs, including operating expenses. HILLS80RllUGH OPERATING DGlT SUlMAIY 2 3 YEAR " 5 6 7 a 9 10 NET fill lAC. SUlSYSlEK Off m ... 'llt"7 .1356156 .1243323 .1379790 .1516257 -1650931 '11522'4 .1f3'252 ,2126261 ,2313269 IElIIUTY lEI '927700 .1057376 .1117052 .1316727 .''4''03 -1526509 '1654930 .1713351 ,'911m '~OI94 M IoU IUN .413909S 'IU69076 '15117062 .11268046 -11634030 '5213012 ,19441000 .19740920 '20033134 .20326152 CDIIIVC DIY '1137915 .1312129 ""'7'4 -2301659 .2169573 -359m2 '395700S .4492191 -5021792 .5564615 GlLTUIL IYCI 376910.269962 .Z516015 ,627446 '6031" '2112206 613741 .1240357 225369 '1644356 MLlC I'" .2569225 .3125173 ,5969621 .'767443 .797'659 -1151936 '1510233 .1969532 -97411Z1 '10921126 ELECTED Of'l .ZOISI71 .9710051 .lt062425 '12155049 ,16465931 -1ml66Z .24151471 .25437450 -26711924 -21469900 .n.orCIAL .149231 -Z91462 '447694 ,596925 ,746156 '.5501 .1024146 .""'90 ,1303535 '1'42110 101 & AGtller -41514 .95161 .142153 .190337 ..7921 .212353 .326715 .371216 '415641 -460010 110II OEPTL -245412 '4901Z4 -1264237 .9011649 '1227061 '1459924 ,1692717 ,1925649 -2151512 .2391315 LOCAL 1m 1252479 2504961 3157435 50099Z3 626Z36I 743'214 1610067 9792147 10969669 12146476 fEDERAL REVS 215253"0506 1Z5151 1101011 1376264 1634125 1191916 2149147 2407701 2665569 STATI IEVS 3520130 4997'31 6474047 7950654 9427262 10196234 123321. 13761140 15204091 16640043 . ,6Oi9657. - 14152015 . 14q59197 .32091212 .7797534 .76016103 '174745055 ,8059420 -3219145 -21937430 61745'46 14171027 101210929 .NEIAL FUND fa .00 PEl S 0) 6033433 12066118 18099492 24132172 3011>4124 35157220 41163932 47239544 52931224 516Z1648 326310307 MPLIlIIlI DEfiCIT ,653902 -12636041 '11635252 -10190641 '5143116 12571572 2016601 581"" 12291956 14492120 6991854 MUNIES BECOMES MORE USER FRIENDLY TIA has developed a program for creating and editing data file. for MONIES. This program, called ENTER, prompts the user for the various data entries required to run MONIES. ENTER alert. you as to whether .pecitic fields are alphabetical or numeric. For numeric field. ENTER indicate. the number ot digit., whether a decimal is required, anet whether an entry may be negative. The EN'1'ER proqram automatically justifies data, placing it in the proper columns for MONIES to read it, In addition to its functions in creating files, E~ER permit. the user to edit data tile.. The program prompts the user to change entries and make insertions and deletions. Beside. the ENTER program, other modifications are underway to MONIES. changes will permit the user to run MONIES on IBM and IBM-compatible computers, including the AT. These personal city conduct a fiscal analysis of the Impact of land-use plan alternatives. Four alternatives were evaluated: the existing land-use plan (the base case); a duplex or high-density residential alternative; an eSUlte or low-density residential alternative; and a research and development, or employ- ment, alternative. All four sc:enarios project an increase in the city'. population of 16,300 over 15 years. The findings indicated that the bue case was as fiscally beneficial u the other alternatives (Exhibit 3). Once the city selected the bue cue u the alternative to pursue, the software program used by the city calculated the cOlts of a capital fadlity replacement program. Plymouth used the software to compile and analyz data on all capital fadUties, including each item's projected remaining life and estimated replacement cost. The capital facUities needed to serve new growth added to the projected infrutructure replacement costs equalled the tOUlI dollars EXHIBIT 3-Surplus to Plymouth general fund due to growth between 1985 and 2000 (In millions of constant dollars). 6,0 6,0 Bose Case Duplex Estate Employment Alternative Alternotlve Alternative Source: Tischler &. Assoclotes. Inc.. MUNIES Computer Output. needed to continue to provide the citizens with service at existing levels. The dty uses the flscal analysis u a guide for budget forecasting, partic:u1arly for personnel projectl by divisions within departments. The dty hat found it helpful in fOlterine discussions about the usumptions underlying the numbers in the budget and, to a leaser extent, the capital facility replacement program. Oty Manager Jim Willis estimates that 10 to 15 percent of the uaumptions have been changed since Plymouth bepn using fiscal impact analysis. These changes reflect the evolution of needs and the gathering of new information since the program began to be used. Willis commented that a key to using fiacal impact analysis effectively is to understand your own operatiON and what needs to be measured. It is important to underscand the full range of lilies for which people are responsible, so that levels of service can be estimated accurately. --, USING FISCAL IMPACT ANAL VSIS This section discusses steps a local government can take in conducting a fiscal impact analysis and planning a revenue strategy based on its findings. There are many possible approaches but this section highlights the most important steps in the process (see MIS Report 1M narrative) CONCLUSION In summary, virtually all applications for fiscal impact analysis usist a jurisdiction in addressing Anancial management and planning issues. Whether the product is an evaluation of a change in level of service, a fOrecast of capital facilities to be replaced or added, or,'a picture of upcoming budget changes due to new development, fiscal impact analysis can be adopted as a reau1ar procedure to improve management decisions. I The examples of compUEer projections \lied In this report were produced by the MUNIES (Municlpallmpaa Evaluation Syatlem). a fiIcal impact software system provided by 'Thchler &. Aaaociata, Inc. and mUored for each jurildlction, For further Information and cue examples, conma Thch\er &. Associates, Inc.. 5631 LeesbUl'l PlIce. Falls ChW'Ch, Virginia 22041 (BOO) 42+4318. rm TISCHLER & ASSOCIATES 5631 Leesburg Pike, Falls Church, VA 22041 BULK A... TE U S POST "'GE .....10 "EAIolIT .723 Mt"ifwtd. v. Level of tervice chanlel. A growing number of local governments are finding it useful to focus poliey dilcUlliOOl on the bilk levels of public services that citizeN want and are willing to pay for. The increasing use of impact fees and user fees also makes it imponant to dearly identify a level of service standard, 10' that appropriate fees can be set and collected. What ia the COlt of providina different level. of eervice? QJJantifying existing levels of service and the costs of different service levels can help lead to more cONtructive discussions, since an parties will understand the fiscal consequences of changing the level of service. Co.t and revenue challles. A flscal analysis will allow the local government to vary any number of cost and . revenue usumptions. Police cars, utility plant additions, , salaries and fringe benefits are just some of the items that can be reviewed for their financial impact at various rates. In a similar fllhion, revenue rates and lOurces can be reviewed. Using a f1SC8l impact analysis computer model makes changes in usumptions easy to consider, BENEFITS OF A FISCAL IMPACT ANALYSIS Fiscal imPact analysis has many benefits, whether it is used for budgeting or for land-use or capital or financial plannlng. (~ eM lull MIS Report 1m eM narraci'-'l!) METHODOLOGIES There are two buic approaches to fiscal evaluations: using average costs and using marginal costs. Average cost approaches are simpler and more popular - costs and revenues are calculated based on the average cost per unit of service times the demand for that unit. Average cost approaches assume a linear relationship and do not consider excess or deficient capacity of fadlities or services over time. A per capita relatioNhip is an example of an average cost approach. Marginal . cost approaches describe the unique characteristics of a jurisdiction's capital fadlities. Although over the long term, average and marginal cost techniques will produce similar results, the real value of fiscal analysis is in the two- to ten-year time period. Marginal cost analysis is most useful in this time frame. Selecting a M.thodology To get the most accurate information from a fiscal impact analysla, most local governments find the case study approach preferable. Although comparisoN to reaional and natidnal standards can be helpful, each community is unique. It has its own levelt of services, geOgraphic service boundaries. cost and revenue factors, and available capacity of existing capital facilities. Given the potential benefits of fiscal impact analysis, it is worth the time and effort to use the case study approach. Where data is not .readily available EXHIBIT 2-lmpact of n.w growth und.r thr.. alternative.. -. - CITY Ofl CllAMANTOWN ANNUAL IURPLUI OR DEFICIT DUE TO NIW OAOWTH (IN '1,000'.) - , " ,.. , , , ,.J ---' I ...J , ~~ -- r , , , ", I : '.. : .J - - - - - 'Il>> . t, " tJ " t. t' t' "t' t, 10 \'1M Source: TISChler a. Assoclotes. Inc.. MUNIES ComPuter OUtput, or where it is difficult to define the service level relationship on a true marginal basis, it makes sense to use the per capita average cost approach to supplement departmental estimates. The local government may wish to refine the data using marginal cost data if and when more detailed information becomes available. CASE STUDIES This section discusses five case studies that illustrate dif- ferent applications of fiscal analysis. The first three case studies look at different land-use or growth alternatives and revenue strategies. The wt two cases discuaa economic de- velopment alternatives and capital improvement programs. (See eM MIS Report 1m a lull dUcu.ssion) Germantown, T.nn.....-Evaluatlon of Land.U.. Alternative. Germantown (population 32,000), a suburb of Memphis, decided to review the fiscal impact of future land-use alternatives. Iu in any jurisdiction, one logical alternative was the continuation of present trends: an emphasis on low-density single-family hOusing with enough commercial Analyzing the Fiscal Impact of Development DEAN'Ne; FISCAL IMPACT ANAL VSIS . A flSCIllmpact analysis projects the net cash flow to the public lector (the locallovernment and, in marty cases, the school district) resultilll from new development - resiclerttial, commercial, industrial, or other. It is similar to the cuh flow analysis a developer conducts in order to project CCliCl and revenues likely to result from a proposed development for two to ten years in the future. A fUcal impact analya. projects the net cuh flow to the public sector The dynamics of fiscal impact are shown in Exhibit 1. In evalUltinc the COltl associated with providing the acceptable Jevela of service, the locallovernment should conaider.exiltina unused capacities of public services and prosramI. especially' of capital facilities. The new development, or new demand, will be expressed in terms of chanps in population, employment, or land use projected to result from the scenarios being evaluated. Since a ftscal analysis will indicate whether and when a , jurisdiction could face deficit budgets, the local government is able to weigh land-use policy dedsions, acceptable levels of service. plans for capital investments, and long-term borrowina needs. In addition, a projected fiscal deficit can prompt local officials to evaluate current and future revenue sources. Even if a fiscal evaluation indicates a . surplus, the local government may wish to change its use of ~.. revenue sources to fund infrastructure replacement or higher levels of service. 'The goal. . .is to forecast all relevant operadng expenses, capital COlts, and revenues Fiscal impact analysis identifies the increases in annual and cumulative expenses for all services that will result from new development. This includes annual operating expenses (including new staff needed per year) and capital expenses associated with constructing or expanding fac:Uitid. The flSCal impact statement can also summarue the jurisdiction's bonded debt; its bonding capacity as a perctntale of the increase in the tax base; the increase in the tax bue; and the fiscal surplus or deficit when general revenues are applied against the net of all special revenues and expenses associated with the develo~ent. Paul S. Tischler, president of Tischler e Associates, llU:., authored this report. Tischler and Associara, llU:., is a Falls Chut'Ch, Virginia am.ndting firm specialiting in fiscal impact and related eamomic anal,sis, capital programming, and revenue strategies. The firm dateloped and uses a PCbased fiscal impact software package known as MUNlES. Mr. Tischler has a B,A. in economia and an M.B.A. in real estate and uroan datelopment, He lectufa and writes on fiscal impact anal,sis and related tapia, EXHIBIT 1 - The dynamics of fiscal Impact. Chang$S in Lond Use Demographics Service levels Costs/Revenues ete, B Ja 8 i E J ~ Chonges In Public Service Demands Changes In Revenue Sources Changes in Expenditures Chonges In Revenues Source: TIschler at Assoclotes. Inc. APPLICATIONS FOR FISCAL IMPACT ANAL VSIS Fiscal impact analysis is helpful in short- and long-range land-use policy planning and finance planning. Its applica- tions for decision making are discussed below. Planning Issues A fiscal impact evaluation can be used as an effective plan- ning tool. Many local governments view the planning process as monitoring and enforcing land-use decisions and regulations, and pay too little attention to long#range planning issues, including whether future growth will be . affordable. The six applications below indicate how fiscal analysis can be an effective pollcy tool for long-range planning. Land-use policies. Should a jurisdiction encourage higher density land use or allow an overlaV district in a certain