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go into the development of this 15-year fiscal impact study. In 1999, the City had a similar fiscal <br />impact study performed by Springsted Finance Advisors. The study was only a five-year fiscal <br />impact study and, thereby, missed the decertification of TIF District No. 6, in the year 2006. <br /> <br />Rusty Fifield, Hoisington Koegler Group, inc., explained that it is relatively easy to address <br />revenues mad analyze how that might change with growth, but expenditures tend to be more <br />difficult because it is typically based on past trends. In this exercise, they have been trying to <br />relate development and how they respond to services. What they have tried to do is come up <br />with a model on impacts of growth and identify where there may be issues they may need to <br />address because of development. Mr. Fifield gave a brief presentation of the cost of City <br />Government and the issues that are difficult to predict. He explained that the study will attempt <br />to identify how the City is going to grow in terms of housing, commercial and industrial and <br />what those impacts will be on City services. The other issue that will be incorporated into the <br />study is the revenue side of the growth. The study will focus on general fund revenues and <br />expenditures, but capital expenses are also large factors, which will be incorporated into the <br />study, therefore, allowing the City to make decisions on development. <br /> <br />Councilmember Cook inquired as to when they anticipate the study being completed. <br /> <br />Mr. Fifield explained that at this time they are testing assumptions and continuing to work on the <br />non-tax revenue issues and the capital expenditures. They are currently projecting forward, <br />based on the 2003 budget, and as changes are made to the budget, their information has to change <br />in order to provide the most accurate results. <br /> <br />Councilmember Kurak stated that in the fiscal planning analysis, the property valuations seem <br />fairly consistent for single family and medium density, but $75,000 for high density seemed very <br />low. She thought the value would increase because they are going to have very high quality units <br />within the Town Center. She also inquired if a larger property with a lot of road frontage and a <br />person in a high-density unit were analyzed differently. <br /> <br />Ms. Fifield explained that each person consumes the same amount of municipal purpose. The <br />dilemma they have is trying to come up with a measure that draws the link. They don't have any <br />information that identifies how much a person consumes from the general fund based on where <br />they live so they have to come up with other proxy's; however, they don't have them so the <br />assumption is that the way in which people draw from public services stays the same. <br /> <br />Councihnember Elvig inquired if they are close enough in the legislative session to continue <br />forward with the study. <br /> <br />Mr. Fifield replied that he hoped that they were, but explained that the study will have some <br />flexibility in it so that they can make some changes as it becomes necessary. The document is <br />intended to build the bridge between physical planning and fiscal planning. <br /> <br />Councilmember Cook inquired if the study is meant to be a tool to help make decisions relating <br />to development. <br /> <br />City Council Work Session/April 29, 2003 <br /> Page 12 of 15 <br /> <br /> <br />