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Fiscal Impact Analysis

Fiscal Impact Analysis

Applicable Community Size

When land is developed new costs are incurred by the municipal government in order to provide additional services and infrastructure to that development. Such services include the expansion of fire protection, libraries, schools, policing, and emergency services, just to name a few. A variety of infrastructure costs are also incurred, such as the provision of water, sewer and roads. A fiscal impact analysis helps to determine whether or not the flow of new tax revenues from a new development will balance out the incurred costs.