Fiscal Impact Model
The fiscal impact model helps Lee’s Summit evaluate the benefits and costs of different land-use mixes and is the culmination of a community and data-driven process. The model forecasts the expected revenues and expenditures related to new development and creates a cost-benefit analysis for different scenarios.
The financial model estimates revenues from property and sales taxes as well as other general revenues. Property taxes are based on land use type and estimated valuations for those land uses. Sales tax and general revenues follow population growth.
The model includes capital expenses for infrastructure, facilities and other investments. Other general fund expenditures represent the cost to provide the current level of service to new areas. General expenditures also follow population growth.
Assumptions regarding the pace of growth, market demands and existing funding sources are built into the model and can be modified to assess future development alternatives. The model is designed to evaluate scenarios at a macro-level rather than for site-specific analyses.
Key assumptions, budget and land use information will be updated annually. Maintenance of the fiscal model is a collaborative effort between the City’s Development Services, Finance and GIS departments. Other departments, such as Public Works, Fire, Police and Parks, will be consulted to update major capital and operational expenses related to growth. The financial forecast will be coordinated with the annual budget and Capital Improvements Plan processes.