Agenda - Council - 04/14/2015 - Laserfiche WebLink

Home

Table B-1. Calculation of Pre -Adjusted Allocation LAj Forecasted Sewer - Serviced Households, 2020 Forecasted Sewer - Serviced Households, 2030 LEI Forecasted "Equal Pre - Net Growth in Share" Adjusted Sewer- Factor Allocation Serviced (C x D) Households (B — Al Golden Valle' West St. Paul 9.400 9.800 9.600 10.000 +400 +400 33.5% 134 33.5% 134 • Step 2: Adjust the pre -adjusted allocation upwards or downwards according to the balance of low-wage jobs and workers and the existing affordable housing stock. The pre -adjusted allocation is adjusted as follows: o Existing affordable housing stock: A community's allocation is increased if its existing affordable housing share is less than that of the average community with sewer service. A community's allocation is decreased if its existing affordable housing share is greater than that of the average community with sewer service. This is measured by the proportion of existing housing units that are affordable, as described above. o Balance of low-wage jobs and workers: A community's allocation is increased if it imports workers in low-wage lobs to a greater extent than the average community. A community's allocation is decreased if it imports workers in low-wage jobs to a lesser extent than the average community. This is measured by the ratio of low-wage jobs to residents working in low-wage lobs, as described above. Because the jobs/workers ratios (which range from 0.21 to 2.88) and the existing affordable housing shares (which range from 4% to 100%) have such different scales, any adjustments based on the raw measures could unintentionally let one adjustment have more influence over the final allocation than the others. We address this by standardizing these raw measures, also known as converting them into Z-scores, with the formula: = (X — X) ± SD . That is, we subtract the average for all sewered communities from each community's measure and divide by the standard deviation.9 The specific formulas for determining the Z-scores for each community are: • Zxousing = (Community's Affordable Housing Share — 0.66) ± 0.25 • ZJob/worker Balance = (Community's Job/Worker Balance Ratio — 1.08) ± 0.52 These Z-scores can be positive (if the community has a higher -than -average ratio or proportion) or negative (if the community has a lower -than -average ratio or proportion). Values of Z-scores represent how many standard deviations each community is from the average ratio or proportion, which is represented by a Z-score of 0. For example, a community with a Z-score of 9 Like the mean, the standard deviation is a statistic that summarizes a set ("distribution") of numbers. Where the mean represents the average score, the standard deviation represents the average distance of communities from the mean. Higher standard deviations indicate that a distribution has more "spread," rather than being tightly clustered around the average score. Page - 21 1 METROPOLITAN COUNCIL