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city conduct a fiscal analysis of the impact of land -use plan alternatives. Four alternatives were evaluated: the existing land -use plan (the base case); a duplex or high -density residential alternative; an estate or low -density residential alternative; and a research and development, or employ- ment, alternative. All four scenarios project an increase in the city's population of L6,300 over 15 years. The findings indicated that the base case was as fiscally beneficial as the other alternatives (Exhibit 3). Once the city selected the base case as the alternative to pursue, the software program used by the city calculated the costs of a capital facility replacement program. Plymouth used the software to compile and analyze data on all capital facilities, including each item's projected remaining life and estimated replacement cost. The capital facilities needed to serve new growth added to the projected infrastructure replacement costs equalled the total dollars EXHIBIT 3—Surplus to Plymouth general fund due to growth between 1985 and 2000 (In millions of constant dollars). TISCHLER & ASSOCLATES, INC. FISCAL & ECONomc 4701 Sangamore Road • Suite N210 • Bethesda, MD 20816 ProMinb Solutions for Grotab • Fiscal Impact Analysis • MUIVIES • Capital Improvement Programming • FISCALS • Impact Fee Modeling • CIPS • Revenue Strategies • DEMS • Economic Feasibility Analysis • Growth Policy Studies needed to continue to provide the citizens with service at existing levels. The city uses the fiscal analysis as a guide for budget forecasting, particularly for personnel projects by divisions within departments. The city has found it helpful in fostering discussions about the assumptions underlying the numbers in the budget and, to a lesser extent, the capital facility replacement program. City Manager Jim Willis estimates that 10 to 15 percent of the assumptions have been changed since Plymouth began using fiscal impact analysis. These changes reflect the evolution of needs and the gathering of new information since the program began to be used. Willis commented that a key to using fiscal impact analysis effectively is to understand your own operations and what needs to be measured. It is important to understand the full range of tasks for which people are responsible, so that levels of service can be estimated accurately. USING FISCAL IMPACT ANALYSIS This section discusses steps a local government can take in conducting a fiscal impact analysis and planning a revenue strategy based on its findings. -There are many possible approaches but this section highlights the most important steps in the process (see MIS Report for narrative) CONCLUSION In summary, virtually all applications for fiscal impact analysis assist a jurisdiction in addressing financial management and planning issues. Whether the product is an evaluation of a change in level of service, a forecast of \_ capital facilities to be replaced or added, or a picture of upcoming budget changes due to new development, fiscal impact analysis can be adopted as a regular procedure to improve management decisions. 11[he examples of computer projections used in this report were produced by the MIINIES (Municipal Impact Evaluation System), a fiscal impact software system provided by Tischler & Associates, Inc. and tailored for each jurisdiction. For further information and case examples, contact Tischler & Associates, Inc„ 4701 Sangamore Road, Suite N210, Bethesda, MD 20816.