Fiscal Impact Analysis
The purpose of a fiscal impact analysis is to estimate the cost of flood or erosion damage of new development compared with the revenue benefit of the development. A fiscal impact analysis was done for the Resilient Grand Haven 2015 Master Plan. The researchers determine the number of properties in the flood plain or erosion zone under three development scenarios: the existing development pattern, the build-out of the Zoning Ordinance, and the build-out of a “Best Management Practices” scenario. Then, they analyze these development scenarios against three climate scenarios: “Lucky”, “Expected”, and “Perfect Storm”. Next, they determine the properties at risk for flooding or erosion, and determine the tax revenue benefits and costs of each property, including the cost of damages to these properties. This methodology allows communities to compare costs and benefits of development and determine if development would be fiscally responsible as proposed, as planned, or under existing trends. |