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Center for Land Use Education
Understanding the Understanding the Cost of Community ServicesCost of Community Services
Rebecca RobertsRebecca Roberts
Center for Land Use EducationCenter for Land Use Education
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Tonight’s presentation:Tonight’s presentation:
Introduction to COCSIntroduction to COCS MethodologyMethodology Results Results Resources Resources Limitations of method Limitations of method Policy implicationsPolicy implications
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Community ServicesCommunity Services
Public safety Public safety - police, fire, ambulance, inspection- police, fire, ambulance, inspection
Public works Public works - gas/electric, water, sewer, solid - gas/electric, water, sewer, solid waste, recyclingwaste, recycling
Transportation Transportation - road construction, maintenance, - road construction, maintenance, mass transitmass transit
Education Education - K-12, technical schools- K-12, technical schools
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Community ServicesCommunity Services
Culture and recreation Culture and recreation - library, parks, - library, parks, community centercommunity center
Health and human services Health and human services - hospitals, - hospitals, elderly care, disability services, cemeterieselderly care, disability services, cemeteries
Local government Local government
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Who pays for services?Who pays for services?
Direct charge for servicesDirect charge for services Licenses, fees, finesLicenses, fees, fines State and federal subsidiesState and federal subsidies Local taxationLocal taxation
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Land Use CategoriesLand Use Categories
ResidentialResidential Agricultural-residencesAgricultural-residences CommercialCommercial ManufacturingManufacturing AgriculturalAgricultural ForestsForests UndevelopedUndeveloped
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COCS StudiesCOCS Studies
Case study approach to determine the fiscal contribution of existing land uses at a particular point in timeat a particular point in time
Results displayed as a set of ratios comparing annual revenues to annual expenditures across land use across land use categories categories
Example: Example: Residential 1.00 : 1.25Residential 1.00 : 1.25
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HistoryHistory
Developed by American Farmland Trust in the mid-1980s Designed as a straightforward and
inexpensive way to measure the contribution of agricultural lands to the local tax base
Conducted in over 100 communities throughout the U.S.
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MethodologyMethodology
1.1. Collect local data Collect local data
2.2. Allocate revenues and expenditures Allocate revenues and expenditures by land use categoryby land use category
3.3. Compute revenue-to-expenditure Compute revenue-to-expenditure ratiosratios
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MethodologyMethodology
1.1. Collect data Collect data Budget - Budget - DOR Municipal Financial ReportDOR Municipal Financial Report
School district data - School district data - DPIDPI
Other local recordsOther local records InterviewsInterviews
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MethodologyMethodology
2.2. Allocate revenues and expendituresAllocate revenues and expenditures
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MethodologyMethodology
2.2. Allocate revenues and expendituresAllocate revenues and expenditures Default percentageDefault percentage
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MethodologyMethodology
2.2. Allocate revenues and expendituresAllocate revenues and expenditures
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MethodologyMethodology
3.3. Calculate revenue-to-expenditure Calculate revenue-to-expenditure ratioratio
For every $1 in revenue generated from For every $1 in revenue generated from residential uses, $1.01 is spent on public services. residential uses, $1.01 is spent on public services.
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Typical ResultsTypical Results
United States (AFT, 2004):United States (AFT, 2004):
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Typical ResultsTypical Results
Wisconsin (PATS, 2000):Wisconsin (PATS, 2000):
AverageRatios: 1.10 1.19 0.60 0.23 0.13 0.85
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Resource requirementsResource requirements
TimeTime MoneyMoney StaffStaff
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Criticisms of MethodCriticisms of Method
Many underlying assumptionsMany underlying assumptions Default percentageDefault percentage Data and interviewer accuracyData and interviewer accuracy Objectiveness of analystObjectiveness of analyst
Too many land use types grouped Too many land use types grouped together together (i.e. agricultural land and residences, open (i.e. agricultural land and residences, open space, etc.)space, etc.)
Results are often misinterpretedResults are often misinterpreted
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LimitationsLimitations
COCS studies cannot…COCS studies cannot… Predict future revenues or expenditures Predict future revenues or expenditures Analyze specific development proposals Analyze specific development proposals Measure non-economic costs or benefits Measure non-economic costs or benefits
derived from services derived from services (ex. aesthetics, traffic, (ex. aesthetics, traffic, environment, etc.)environment, etc.)
Distinguish between different development Distinguish between different development types in a single land use category types in a single land use category (ex. old vs. new neighborhood or single vs. multi-family (ex. old vs. new neighborhood or single vs. multi-family housing)housing)
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CapabilitiesCapabilities
COCS studies can…COCS studies can… Provide a snapshot in time of revenues Provide a snapshot in time of revenues
and expenditures by land use categoryand expenditures by land use category Provide a relatively quick, Provide a relatively quick,
straightforward and inexpensive methodstraightforward and inexpensive method Help local officials and citizens make
informed land use and policy decisions
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Policy ImplicationsPolicy Implications
Will residential development result in Will residential development result in a net fiscal gain for our community?a net fiscal gain for our community?
What types of development do we What types of development do we want? want?
How much are we willing to pay to How much are we willing to pay to maintain working and other open maintain working and other open lands? lands?
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ConclusionsConclusions
One type of land use is not intrinsically better than another
COCS studies are not meant to judge the overall public good or long-term merits of any land use or taxing structure
COCS studies provide communities with an inexpensive tool to make decisions about future land uses
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Thank You!Thank You!
Questions?Questions?
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Extra slides followExtra slides follow
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COCS vs. Impact AnalysisCOCS vs. Impact Analysis COCS studies are a subset of fiscal
impact analysis Findings are consistent:
Document high cost of residential development
Recommend commercial and industrial development to balance local budgets
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COCS vs. Impact AnalysisCOCS vs. Impact Analysis Impact analyses rarely consider contribution
of working and open lands COCS studies show that agricultural land can be
used to subsidize residential demand for public services
Impact analyses consider fiscal as well as broader social, environmental, and transportation impacts
COCS studies require fewer resources/expertise
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MethodologyMethodology
2.2. Allocate revenues and expendituresAllocate revenues and expenditures
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MethodologyMethodology
2.2. Allocate revenues and expendituresAllocate revenues and expenditures
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MethodologyMethodology
2.2. Allocate revenues and expendituresAllocate revenues and expenditures
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MethodologyMethodology
2.2. Allocate revenues and expendituresAllocate revenues and expenditures