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Table B-1.Calculation of Pre-Adjusted Allocation <br />(A)(B)(C)(D)(E) <br />Forecasted Forecasted Forecasted “Equal Pre- <br />Sewer-Sewer-Net Growth in Share” Adjusted <br />Serviced Serviced Sewer-FactorAllocation <br />Households, Households, Serviced (C × D) <br />20202030Households <br />134 <br />9,4009,800+40033.5% <br />Golden Valley <br />134 <br />9,60010,000+40033.5% <br />West St. Paul <br />Step 2: Adjust the pre-adjusted allocation upwards or downwards according to the balance of <br />low-wage jobs and workers and the existing affordable housing stock. <br />Thepre-adjusted allocation is adjusted as follows: <br />Existing affordable housing stock:A community’s allocation is increased if its existing <br />o <br />affordable housing share is less than that of the average community with sewer service. <br />A community’s allocation is decreased if its existing affordable housing share is greater <br />than that of the average community with sewer service. This is measured by the <br />proportion of existing housing units that are affordable, as described above. <br />Balance of low-wage jobs and workers: A community’s allocation is increased if it <br />o <br />imports workers in low-wage jobs to a greater extent than the average community. A <br />community’s allocation is decreased if it imports workers in low-wage jobs to a lesser <br />extent than the average community. This is measured by the ratio of low-wage jobs to <br />residents working in low-wage jobs, as described above. <br />Because the jobs/workers ratios (which range from 0.21 to 2.88) and the existing affordable <br />housing shares (which range from 4% to 100%) have such different scales, any adjustments <br />based on the raw measures could unintentionally let one adjustment have more influence over <br />() <br />=÷ <br />the final allocation than the others. We address this by standardizing these raw measures, also <br />known as converting them into Z-scores, with the formula: . <br />That is, we subtract the average for all sewered communities from each community’s measure <br />9 <br />and divide by the standard deviation.The specific formulas for determining the Z-scores for <br />each community are: <br />() <br />= 0.66÷0.25 <br />() <br />= <br /> / 1.08÷0.52 <br /> <br />/ <br /> <br />Te Zhesc-sores can be positive (if the community has a higher-than-average ratio or proportion) <br />or negative (if the community has a lower-than-average ratio or proportion). Values of Z-scores <br />represent how many standard deviations each community is from the average ratio or <br />proportion, which is represented by a Z-score of 0. For example, a community with a Z-score of <br />9 <br />Like the mean, the standard deviation is a statistic that summarizes a set (“distribution”) of numbers. Where the <br />mean represents the average score, the standarddeviation represents the average distance of communities from <br />the mean. Higher standard deviations indicate that a distribution has more “spread,” rather than being tightly <br />clustered around the average score. <br />Page - 21|METROPOLITAN COUNCIL <br /> <br />