Mundie & Associates

Practice Areas: Fiscal Analysis

Our Clients Ask Us:

Are funds available to pay for new services or facilities to serve existing and future development?

Our Types of Projects

  • Fiscal impacts of plans and projects
  • Factors that influence fiscal outcomes

How does the mix of land uses, or development timing, or other factors affect our fiscal condition?

Should planning and development decisions be constrained by current and/or projected fiscal conditions? Does new development pay its own way? Should we allow new development only if it would pay its own way?

Our Cases

Fiscal Impact Analyses for General Plans » M&A has prepared fiscal impact models in a number of cities to predict the balance between operating/ongoing revenues and costs associated with the buildout of development permitted by new General Plans. Each such model is tailored to the revenue and cost characteristics of the specific city for which it is prepared, based on information drawn from that city's current operating budget and interviews with key staff. The model is used to compare the fiscal effects of plan alternatives, with the outcomes of the comparison providing valuable insights to decisionmakers as they consider General Plan adoption: the analysis provides an indication of whether a city should expect future surpluses or deficits under the plan, and alerts decisionmakers to the possibility of funding additional services or capital improvements (if surpluses are expected) or considering service reductions or new funding sources (if shortfalls are expected). The fiscal model may also be applied to the analysis of fiscal outcomes of specific General Plan-related policy options, such as growth limitations, different levels of service, or changes in revenue sources.

Fiscal Analyses of Major Residential Infill Developments in Oakland » M&A estimated the impacts of two large residential projects - Wood Street and Gateway Village - proposed for development in redevelopment project areas. These analyses illuminated for decisionmakers the disposition of new revenues generated by such projects: in redevelopment areas, the increases in property taxes accrue to the Redevelopment Agency and not to the general fund, so they are available for low- and moderate-income housing assistance and for redevelopment expenditures (e.g., capital improvements), but unavailable to pay for increased public services that may be demanded by new residents.

Fiscal Impact Analysis of Hospital Project in Antioch » M&A analyzed the fiscal consequences of a proposed 450,000 square foot hospital/acute care center complex, proposed for construction on a 50-acre site. The analysis addressed different mixes of development components (medical offices, in-patient and out-patient care facilities, and complementary uses) and the effects of the timing of the hospital emergency room component, which determines when the medical portion of the project would become property-tax-exempt. The estimate this study provided of future city operating costs associated with the hospital project under alternative scenarios formed part of the basis for City Council approval of the Kaiser project in the Sand Creek development area.

Fiscal Analysis of Annexation to Novato with Residential Development » M&A projected the expected cost and revenue effects of a proposed annexation to the City of Novato, with part of the annexation area proposed for development of a 21-unit residential neighborhood with community facilities and private streets. The analysis considered the fiscal impacts of a project as proposed as well as an alternative with public streets and fewer housing units.

Fiscal Analysis for the Evelyn Avenue Corridor Area Plan » M&A estimated the public service cost and revenue changes expected to result from the redevelopment of Mountain View's Evelyn Avenue Corridor, a predominantly industrial and service commercial area to a residential area with some service commercial and retail/office uses. In addition to projecting operating costs and revenues, M&A inventoried the financing mechanisms available to pay for public improvements that could be included in the area plan.

Fiscal Impacts of Downtown Multiplex Cinema Projects » M&A analyzed the public cost and revenue effects of multiplex cinema projects in downtown San Mateo and Redwood City. Estimates were based on review of the City budgets, interviews with City staff, and information from cities with comparable projects.

Fiscal Evaluation of Major Annexation to Antioch » M&A reported on fiscal issues to be evaluated by Antioch as it considered annexation of about 3,500 acres of land in areas east and south of the existing city. Key topics included (1) the capital cost burden that would be carried by homeowners, resulting from their obligation to pay for infrastructure needed to serve the annexation area, and (2) the city's cost of providing ongoing public services to the area if development did not follow immediately upon annexation.

Fiscal Impact Analysis of a Destination Resort in Cloverdale » M&A projected operating costs and ongoing revenues associated with a large mixed-use project originally proposed to include a resort hotel and spa, 18-hole golf course, conventional single family homes and "resort homes" (available for visitor occupancy), 120,000 sq. ft. of commercial space, and 25,000 sq. ft. of office space. A reduced project was subsequently proposed, consisting of only the golf course, single family homes, and about 13,000 square feet of retail space. The completed fiscal analysis of the initial and revised projects included several sensitivity analyses comparing the fiscal outcomes of the project under a variety of assumptions about economic conditions, the rate of inflation, and the mix of uses on the site.


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