Economic Development Strategies & Solutions
Local Fiscal Impact Analysis estimates the financial impact of an economic development project based on both the costs and the revenues to local taxing authorities in the jurisdiction. Conducting a thorough Fiscal Impact Analysis is a very difficult and time-consuming process. The amount of data required for fiscal impact analysis, the complexity of the analysis itself and the time involved are all important considerations that prevent economic developers from incorporating this vital step into their protocol. In today's economy, with increasing scrutiny and transparency requirements, communities
Fiscal Impact Analysis
are choosing to outsource the fiscal impact analysis component when the number of annual inquiries don't justify having that specific expertise on staff full-time. If your community is negotiating incentives for a relocation or retention project, our assistance will ensure that an over-negotiation of incentives to the detriment of your tax base does not occur.
The Local Fiscal Impact Analysis is based on specific financial characteristics of a community including revenues, expenditures, tax structure, land values, average salaries, and capital expenditures from the proposed project. It is important to understand both the benefits and costs associated with new or expanding businesses in the community. This strategic information can help in the decision making process as well as in the negotiation of incentives for recruiting or retaining businesses.
This quantitative information is equally useful for private companies during the incentive negotiation phase of a project. If a corporation is knowledgable about the positive impact it will have on a community, they can successfully utilize this data while negotiating an incentives package.
We utilize the LOCI analysis program developed at the Georgia Institute of Technology, a nationally recognized web-based model for economic developers to evaluate the local fiscal impact of new development projects. We offer two different types of Fiscal Impact Analysis with the LOCI analysis program. Phase 1 is based solely on effective tax rates, capital investment, average salaries and real or personal property investment. A more comprehensive Phase 2 analysis includes additional fiscal data based on water usage, trash generation, local sales tax generation and other more detailed considerations.