Page 205 - Littleton, CO Comprehensive Plan

Fiscal Impact Analysis
The City of Littleton, CO

APPROACH AND MAJOR ASSUMPTIONS

A Fiscal Impact Analysis (“FIA”) determines whether revenues generated by new growth are sufficient
to cover the resulting costs for service and facility demands placed on the community. It is based on
cost and revenue assumptions that reflect a community’s current level of service. For the City of
Littleton, we analyzed the fiscal impacts of three land use scenarios based on current citywide levels
of service and any additional known infrastructure or service needs. A projection timeline of 20 years
is used to show long-term trends and to align with the Comprehensive Plan’s timeframe.

GENERAL APPROACH

TischlerBise’s FIA methodology incorporates the case study-marginal cost approach wherever
possible. The case study-marginal methodology is the most realistic method for evaluating fiscal
impacts. This methodology takes site or geographic-specific information into consideration. It
therefore accounts for any unique demographic or locational characteristics of new development, as
well as the extent to which a particular infrastructure or service operates under, over, or close to
capacity. Available facility capacity determines the need for additional capital facilities and associated
operating costs.

Certain costs are impacted by general growth, regardless of location; these are projected using a
marginal/average cost hybrid methodology that incorporates capacity and thresholds for staffing,
but projects non-salary operating costs using an average cost approach.

Some costs and revenues are not expected to be impacted by demographic changes and are therefore
considered fixed in this analysis. For example, this is true for some functions included in the City
Council budget. To determine those costs and revenues that should be considered fixed, we reviewed
the FY2019 Budget and available supporting documentation as well as interviewed staff.

For reference, services and infrastructure that are impacted by growth are termed variable, as
opposed to fixed, in that they change—or vary—over time as a result of growth-related demand
factors (e.g., population, jobs, vehicle trips, facility square footage, employment, police calls for
service, etc.).

For this analysis, only costs to serve new growth are included. Both operating and capital costs are
modeled.

Other general items to note are as follows:

▪ Operating costs are generally projected on an average basis with demand factors specific to
the service being modeled. Personnel costs are modeled to reflect the fact that some types of
positions (e.g., department directors) are fixed and would not increase regardless of growth.

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