Fiscal Impact Studies
Sophisticated fiscal modeling to assess the budgetary and economic impacts of development on local governments and communities.
S. Patz & Associates prepares fiscal impact studies that evaluate how proposed development affects the revenues and expenditures of local governments, providing decision-makers with a clear, objective assessment of a project's net fiscal effect.
Development Types We Analyze
Our fiscal impact studies cover a wide range of land uses, including:
- Residential subdivisions and apartment communities
- Commercial projects, including retail centers, office buildings, and restaurants
- Entertainment uses, such as movie theaters
- Industrial facilities
- Mixed-use developments
Each study is tailored to the specific land use, scale of development, and local tax structure to accurately assess fiscal effects.
What We Measure
On the revenue side, our analyses consider the full range of revenue sources available to the locality. Depending on the local tax structure, this may include real estate taxes, personal property taxes, local consumer taxes, business license taxes, permit and fee revenues, and other locally generated revenues.
On the cost side, we evaluate the cost of providing municipal services required to support new residents, businesses, and employees, including public safety, public works, parks and recreation, and general government administration.
On-Site and Off-Site Impacts
Each study evaluates both direct on-site impacts and secondary off-site effects. On-site impacts measure the relationship between development-generated revenues and the cost of servicing the project itself. Off-site impacts capture the broader economic activity generated when new residents and businesses spend money locally, supporting additional business activity, employment, and associated tax revenues.
Comparative Framework
Our analyses are structured as comparative assessments that examine fiscal outcomes under proposed development conditions relative to existing land uses or baseline conditions. This approach allows decision-makers to understand the incremental fiscal implications of rezonings, redevelopment, or new construction.
Accessible, Rigorous Analysis
While fiscal impact studies are inherently technical, our reports are written in a clear, accessible manner so that findings are easily understood by elected officials, planning commissions, staff, and the public. The result is a rigorous, data-driven analysis that can be confidently used in the land use decision-making process.
Frequently asked questions
What is a fiscal impact study?
A fiscal impact study evaluates how a proposed development affects a local government’s revenues and expenditures, giving decision-makers a clear, objective assessment of the project’s net fiscal effect. Each study is tailored to the specific land use, the scale of development, and the local tax structure, so the result reflects the jurisdiction actually under review.
What revenues and costs do you measure?
On the revenue side we consider real estate taxes, personal property taxes, local consumer taxes, business license taxes, permit and fee revenues, and other locally generated revenues, depending on the local tax structure. On the cost side we evaluate public safety, public works, parks and recreation, and general government administration.
Do you measure effects beyond the project site?
Yes. Each study evaluates direct on-site impacts and secondary off-site effects. On-site impacts compare development-generated revenues against the cost of servicing the project itself. Off-site impacts capture the broader economic activity generated when new residents and businesses spend money locally, supporting additional business activity, employment, and associated tax revenues.
Which development types do you analyze?
Residential subdivisions and apartment communities, commercial projects including retail centers, office buildings, and restaurants, entertainment uses such as movie theaters, industrial facilities, and mixed-use developments. Analyses are structured as comparative assessments that examine outcomes under proposed development conditions relative to existing land uses or baseline conditions.
Can the report be used in a public hearing?
Yes. Reports are written so that findings are easily understood by elected officials, planning commissions, staff, and the public, while keeping the analytical rigor the land use decision-making process requires. Each study sets out its data sources and methodology, so the analysis can be followed and questioned in open session.