New development and land annexations can bring real advantages to a community – increased tax revenues, expanded services, economic growth, and improved infrastructure. But these benefits rarely come without cost. As new residents and employees place growing demands on public facilities and services, the critical question every agency must answer is: Can we afford this?
That is precisely what a Fiscal Impact Analysis (FIA) is designed to answer. An FIA evaluates the long-term fiscal effects of a proposed development or annexation on your agency’s general fund – weighing all projected revenues (property tax, sales tax, and more) against the true cost of delivering public services and maintaining infrastructure. The result is an objective, data-driven picture of whether a project will be a fiscal asset or a liability.
Completing an FIA before approving any new development or annexation is a sound practice, and one NBS strongly recommends. When a negative fiscal impact is identified, mitigation options exist, including formation of a Community Facilities District (CFD) to generate sustainable, ongoing special tax revenue.
With nearly three decades of experience, NBS is ready to help your agency navigate these decisions confidently. Contact us today at contactnbs@nbsgov.com to learn more.