For the Complete Methodology: Download Chapter
A fiscal impact analysis (FIA) is an important planning tool in this scenario analysis because it affords communities and planners the knowledge of the fiscal costs and benefits that come from development in high risk flood areas. In terms of benefits, an FIA quantifies the tax revenue a jurisdiction would receive by allowing (and from previously allowing) development in their high risk flood areas. In terms of costs, an FIA quantifies the costs of providing public services to current – and potential future – development in high risk flood areas. It also quantifies potential direct damage to structures that might occur within high risk flood areas, both under current conditions and under potential build-outs. Having the complete picture of costs and benefits allows planners and communities to understand whether or not development in high risk areas is fiscally responsible for their jurisdiction.
Background and Considerations
In preparing to do a fiscal impact analysis for your community, it is necessary to gather relevant financial documents for your community such as annual financial reports and property value assessments. There are also a number of assumptions about zoning, property values, and so forth that will need to be made to make this analysis possible. These assumptions used in our study are noted throughout the methodology.