Fiscal Impact Analysis of Great Pond Village

Fiscal Impact Analysis of Great Pond Village Town of Windsor, Connecticut Presentation to: Windsor Town Council Windsor Town Planning & Zoning May 11, 2011

Presentation Overview Introduction Fiscal Impact Analysis and Study Overview Major Assumptions Summary Results and Major Findings Wrap Up 2

TischlerBise, Inc. Fiscal, economic, and planning consultants National Practice Fiscal Impact Evaluations (600+) Impact Fees (700+) Infrastructure Needs & Revenue Strategies Utility Rate Studies User Fees Cost Allocation Plans Public and Private Sector Experience TischlerBise is the only national firm focused exclusively on cost of growth and revenue enhancement issues. 3

What is Fiscal Impact Analysis? Cash flow to the public sector o Are the revenues generated by development enough to cover the service and facility costs to serve the development? Evaluates operating expenses and capital costs and revenues o Non Enterprise Funds Revenues minus expenditures = net surplus or net deficit 4

Fiscal Impact Analysis Differs from an Economic Impact Analysis Economic Impact Analysis: o Evaluates impact on overall economy of a community new dollars circulating locally Residential impacts: Primary factors are the construction phase and consumer spending Nonresidential impacts: Primary factors are job creation and real disposable income Fiscal Impact Analysis o Impact on local government fiscal condition (revenues and costs to the government) due to new development 5

General Framework A fiscal impact analysis is not intended as a budgetforecasting document o Revenues and expenditures are projected separately analysis is not revenue constrained o... Unlike annual budget that needs to be balanced with revenues available Fiscal analysis determines the direct costs and revenues from development Allows testing of what if scenarios Fiscal condition is one element to consider in land use policy 6

Great Pond Village Fiscal Impact Analysis Conducted meetings and follow up with staff o Town budget, services, capital improvements Obtained development program from developer; worked with Town staff to develop alternative scenario Developed fiscal model to: o Evaluate Great Pond Village s overall fiscal impact o Identify infrastructure needs o Evaluate feasibility of Tax Increment Financing o Examine operating impact (staff and operating costs) Prepared report on findings & present findings 7

The Study s Basic Assumptions Assumes current budget (FY2011) and levels of service Includes operating and capital costs for Town, Schools, and on site infrastructure. Includes General Fund and Special Revenue Funds that support operating departments Two scenarios evaluated: o Developer s Scenario proposed as of March 25, 2011 o Alternative Scenario slower development pace 8

Development Program Buildout Buildout Buildout Mkt. Val. Assessed Val. per DU Type Residential # of Units Population Students Per DU [1] (at 70%) [2] R1 Multifamily Independent Living 200 381 0 $250,000 $175,000 R2 Multifamily Rental 1,904 3,625 333 $150,000 $105,000 R3 Multifamily Condos 1,037 1,974 181 $175,000 $122,500 R4 Single Family Attached (For Sale) 624 1,188 124 $175,000 $122,500 R5 Single Family Urban Detached 245 680 82 $350,000 $245,000 Total 4,010 7,847 720 Buildout Buildout Mkt. Val. Assd Val. Nonresidential Sq. Ft. Jobs Per Sq. Ft. [1] Per Sq. Ft. [2] NR1 Civic 128,000 98 $0 $0 NR2 Retail 85,000 170 $190 $133 NR3 Office 640,000 2,122 $165 $116 Total 853,000 2,390 Parking Garage (Spaces) 1,230 [1] Winstanley Enterprises; Town of Windsor [2] Assessed value at 70% of market value Note: Development program as of March 25, 2011 Sources: Winstanley Enterprises; TischlerBise 9

Scenario Development Assumptions Scenario 1 (Developer Scenario): o Approximately 300 housing units per year (residential buildout by year 14). o Nonresidential development assumed to be fully built out by year 11 (retail by year 6; office by year 8; civic by year 11). Scenario 2 (Alternative Scenario): Slower pace o Approximately 200 housing units per year (residential buildout by year 20). o Nonresidential development assumed to be built out by year 19 (retail by year 8; office by year 19; civic by year 15). 10

Cumulative (20-Year) Fiscal Impact Results 20 Year Cumulative Net Fiscal Impacts Town of Windsor, CT Great Pond Village Fiscal Impact Analysis $300,000,000 $285,120,867 $250,000,000 $241,543,402 $200,000,000 $217,664,783 $191,185,732 $150,000,000 $100,000,000 $50,000,000 $43,577,465 $26,479,051 $0 DEVELOPER SCENARIO (with TIF) ALTERNATIVE SCENARIO (with TIF) Net Revenues Expenditures Net Fiscal Impact 11

Cumulative (20-Year) Fiscal Impact Results Cumulative Net Fiscal Results Town of Windsor, CT Great Pond Village SCENARIO Category DEVELOPER SCENARIO: Buildout by Year 14 ALTERNATIVE SCENARIO: Buildout by Year 20 REVENUES Total Revenues from Great Pond Village $296,982,643 $229,526,558 Less Existing Property Tax Revenue $11,861,776 $11,861,776 Total Net Revenues (less existing tax base) $285,120,867 $217,664,783 EXPENDITURES Operating Expenditures $125,159,647 $98,405,733 Capital Expenditures $116,383,755 $92,779,999 Total Expenditures $241,543,402 $191,185,732 CUMULATIVE NET FISCAL IMPACT $43,577,465 $26,479,051 12

Average Annual Fiscal Impact Results Average Annual Net Fiscal Impacts Town of Windsor, CT Great Pond Village Fiscal Impact Analysis $2,500,000 $2,095,087 $2,262,659 $2,178,873 $2,000,000 $1,500,000 $1,529,779 $1,323,953 $1,118,126 $1,000,000 $500,000 $0 DEVELOPER SCENARIO (with TIF) ALTERNATIVE SCENARIO (with TIF) Years 1 10 Years 11 20 Years 1 20 13

Annual Fiscal Impact Results Annual Net Fiscal Impacts Town of Windsor, CT Great Pond Village Fiscal Impact Analysis $3,500,000 $3,000,000 School capital cost; Fire station and apparatus costs Buildout ; reflects last year of building permit revenues. $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 School capital cost $0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 DEVELOPER SCENARIO (with TIF) ALTERNATIVE SCENARIO (with TIF) 14

Annual Net Revenues Compared to Operating and Capital Costs: Developer Scenario $25,000,000 $20,000,000 Annual Operating & Capital Expenditures Compared to Revenues Scenario 1. DEVELOPER SCENARIO Great Pond Village Fiscal Impact Analysis Total Capital Expenditures Total Operating Expenditures Net Revenues (with TIF) Last year of building permit revenue $15,000,000 $10,000,000 $5,000,000 $0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 15

Annual Net Revenues Compared to Operating and Capital Costs: Alternative Scenario $25,000,000 Annual Operating & Capital Expenditures Compared to Revenues Scenario 2. ALTERNATIVE SCENARIO Great Pond Village Fiscal Impact Analysis Total Capital Expenditures $20,000,000 Total Operating Expenditures Net Revenues (with TIF) $15,000,000 $10,000,000 $5,000,000 $0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 16

TIF Analysis: Developer Scenario $20,000,000 $18,000,000 $16,000,000 TIF Financed Infrastructure Costs Compared to the Property Tax Revenue Increment Scenario 1. DEVELOPER SCENARIO Great Pond Village Fiscal Impact Analysis TIF Financed Improvements Property Tax Revenues (Increment) $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 17

TIF Analysis: Alternative Scenario $20,000,000 $18,000,000 $16,000,000 TIF Financed Infrastructure Costs Compared to the Property Tax Revenue Increment Scenario 2. ALTERNATIVE SCENARIO Great Pond Village Fiscal Impact Analysis TIF Financed Improvements Property Tax Revenues (Increment) $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 18

Major Findings and Results Revenues generated from the Great Pond Village development are sufficient to cover operating and capital expenses to serve the development Fiscal surpluses are generated under both scenarios tested Tax Increment Financing: Incremental property tax revenue is sufficient to finance the developer s proposed infrastructure as presented 19

Major Findings and Results (cont d) Operating impacts for future Town maintained infrastructure is included o For improvements indentified as being maintained by another entity (e.g., home owners assn.), operating costs are NOT included Projected revenues are sufficient to pay for capital improvements both on site as proposed by developer and Town capital improvements o Largest Town projected capital costs are schools, fire, and police 20

Wrap-Up Discussion Questions? 21

Supporting Slides Operating impacts Capital impacts 22

Projected Operating Impacts Cumulative Operating Expenditures Town of Windsor, CT Great Pond Village SCENARIO Category DEVELOPER SCENARIO: Buildout by Year 14 % ALTERNATIVE SCENARIO: Buildout by Year 20 Schools $77,823,657 62% $60,892,818 62% Town Support For Education $2,524,512 2% $1,947,828 2% Safety Services: Police $14,303,739 11% $10,605,804 11% Safety Services: Fire and Rescue $1,807,506 1% $1,444,238 1% Safety Services: Ambulance $159,640 0% $123,361 0% Recreation and Leisure $5,416,865 4% $4,006,145 4% Human Services $184,495 0% $146,331 0% Health Services $1,446,940 1% $1,167,761 1% Library Services $1,626,946 1% $1,231,836 1% Development Services $5,476,058 4% $5,371,729 5% Community Development $0 0% $0 0% Public Works $6,083,129 5% $4,774,105 5% Information Services $791,311 1% $656,905 1% Administrative Services $2,827,905 2% $2,382,939 2% General Government $1,150,597 1% $881,892 1% General Services $3,536,346 3% $2,772,040 3% GRAND TOTAL OPERATING EXPENDITURES $125,159,647 100% $98,405,733 100% % 23

Projected New Town Employees due to GPV Projected New Town Employees (FTEs)* Town of Windsor, CT Great Pond Village Fiscal Impact Analysis 35.0 30.0 Town FTEs 25.0 20.0 15.0 10.0 5.0 0.0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 DEVELOPER SCENARIO ALTERNATIVE SCENARIO * Staffing increases projected for: Police, Recreation & Leisure, Health, Library, Development Services, Information Services, and Administrative Services; Public Works addressed separately. 24

Projected Capital Impacts Cumulative Capital Expenditures Town of Windsor, CT Great Pond Village SCENARIO Category DEVELOPER SCENARIO: Buildout by Year 14 % ALTERNATIVE SCENARIO: Buildout by Year 20 TOWN CAPITAL NEEDS Schools $8,582,454 57% $7,007,291 59% Pol ice $1,262,965 8% $1,013,850 9% Ambulance $375,000 2% $250,000 2% Fire $4,285,757 28% $3,061,255 26% Roads, Vehicles & Equipment $592,133 4% $491,994 4% SUBTOTAL TOWN CAPITAL COSTS $15,098,308 100% $11,824,389 100% DEVELOPMENT INFRASTRUCTURE SUMMARY Phas e 1 $21,339,442 21% $20,792,277 26% Phas e 2 $7,875,884 8% $7,438,335 9% Phas e 3 $27,413,802 27% $24,843,758 31% Phas e 4 $16,035,870 16% $12,952,049 16% Phas e 5 $11,643,254 11% $7,938,583 10% Phas e 6 9 $16,977,196 17% $6,990,610 9% SUBTOTAL DEVELOPMENT INFRASTRUCTURE COSTS $101,285,447 100% $80,955,610 100% % GRAND TOTAL CAPITAL COSTS $116,383,755 $92,779,999 25

Projected New DPW Employees due to GPV PUBLIC WORKS FTE EMPLOYEE PROJECTION Town of Windsor, CT Great Pond Village Category DEVELOPER SCENARIO: Buildout by Year 14 SCENARIO ALTERNATIVE SCENARIO: Buildout by Year 20 Public Works Annual Operating Cos ts from GPV in Year 20 $883,120 $765,342 Percent Personnel Costs* 53.4% 53.4% Estimated Amount for Personnel $471,636 $408,735 Average Personnel Cos t per FTE* $84,064 $84,064 Estimated Number of New FTEs (in Year 20) 5.6 4.9 26