Capital Improvements Element

1

Calculating Long Range Operating and
Infrastructure Needs with Fiscal Models 2006
NIFR Conference
Presented ByL. Carson Bise II, AICPVice
President
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Levels of Service

• Adopted vs. actual
• How are levels of service defined?
• National standards?
• What is and isnt included?
• Interviews with jurisdiction staff?
• Operating costs
• Fixed vs. variable
• Revenue assumptions

3
Art and Science

• Lack of formal standards
• Considerable variation in methodologies employed
• Costs can change over time

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Methodological Comparisons

• Case study-marginal approach
• Reflects fiscal reality
• Dependent on local levels of service
• Available capacity determines the staging of
  facilities
• Versus the average cost approach
• Focuses on per capita/employee
• Doesnt consider available capacities
• Masks timing

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Which Methodology is Best?

• Case study-marginal approach
• City/Countywide analysis
• Area/corridor plans
• Planned unit developments
• Average cost
• Small/medium scale developments
• Cost of land use studies

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Methodological Comparisons
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Methodological Comparisons
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Methodological Comparisons
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Capital Improvements/Debt Management

• Cash
• Bonds
• Apply dedicated revenue source
• Bond term
• Lag/lead time of construction
• Bond to first year debt service
• Useful life
• Available capacity

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Infrastructure Backlogs

• What constitutes backlog?
• Deficiencies?
• Infrastructure replacement?
• What LOS are the backlogs based upon?
• Adopted vs. actual
• How are you handling issue of current development
  base?

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Spatial Aspects

• Roads
• Schools
• Fire/EMS
• Police
• Water/Sewer

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Planning Horizon
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Planning Horizon
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Factors Influencing Fiscal Results

• Revenue structure
• Sources
• Distribution formulas
• Levels of service
• Operating
• Capital
• Revenue
• Infrastructure lifecycle
• Existing capacities
• Characteristics of new development
• Demographic
• Socioeconomic