As urban areas expand and development pressures increase, the threat to these community natural spaces becomes more pronounced. One potent tool in the arsenal of safeguarding these greenspaces is fiscal impact analysis.
What is it?
A fiscal impact analysis involves a comprehensive assessment of the financial implications of development projects for municipal governments and residents—particularly their impact on local tax revenue and municipal services costs. This imbalance would end in raised taxes for existing residents. While the upfront cost is around $5,000, an analysis like this reveals the true economic viability of proposed developments and enables stakeholders, including residents, policymakers, and environmental advocates, to assess whether the short-term financial gains from a development project are sustainable and whether they align with the long-term interests of the community.
As explained by the University of New Hampshire, there are 6 ways that fiscal impact analyses are performed:
The Case of Rosemère
Peter Trent conducted a fiscal analysis on the planned residential development of the Rosemère Golf Course in 2021. His study demonstrated that because Rosemère’s residential tax rate is particularly low, the anticipated tax revenue from the new residents would fall short of covering the increased demand for municipal services brought about by the significant increase in population size. This key insight revealed a crucial imbalance between revenue and expenses, which would inevitably lead to higher taxes for the existing residents. Trent’s study highlighted its unsustainable financial impact on the community and provided those fighting for the greenspace’s preservation with a solid argument.
Championing Community Interests
The Legacy Fund for the Environment fund assists community groups in raising funds to conduct fiscal impact analyses and other studies, which were also used in the defence of Sandy Beach and L’Anse-à-l’Orme natural spaces. By enabling grassroots organizations to access essential financial data, the Legacy Fund gives communities the tools to more effectively defend their natural spaces against development pressures.
The preservation of community greenspaces requires a multi-faceted approach that considers not only the environmental and social benefits but also the economic implications of proposed developments. By revealing the true financial costs and benefits of development, such analyses provide communities with the insights needed to make informed decisions that protect their greenspaces and ensure a sustainable future. The investment in a fiscal analysis today can translate into substantial savings and long-term well-being for communities tomorrow.
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