Date of Award

7-1-1986

Degree Type

Thesis

University or Center

Atlanta University (AU)

Degree Name

M.P.A.

Department

Public Administration

First Advisor

Professor James T. Jones

Abstract

The primary intent of this degree paper is to analyze the fiscal impact of nonresidential development on annexed territory in the City of East Point, Georgia. The analysis projects the direct, current, public costs and revenues associated with nonresidential development on one hundred fifty (150) acres of annexed land. The analysis considers the current costs and revenues of the development as if it were completed and operating today. The Proportional Valuation Method (PVM), developed by Robert W. Burchell and David Listokin (1980) was used to conduct the analysis.

PVM is an average costing approach used to project the impact of nonresidential development on local costs and revenues. The method assigns costs attributable to the share of the real property value that nonresidential use adds to a city's real property tax base. The method employs a two step process to assign a share of municipal costs to the new development. First, a share of the city's total operating expenditures is given to all local nonresidential uses. Second, a portion of these nonresidential costs is allocated to the incoming nonresidential facility.

The purpose of this study is to determine the costs and revenues associated with the development of an office industrial park complex on 150 acres of nonresidential land acquired by the City of East Point, Georgia. This study is significant because of the fact that the analysis provides useful information which the officials of the City of East Point can use to determine whether the annexation will impact positively on the revenue base of the city.

The findings indicate that there is the possibility that the city's goal of increasing its revenue base can be realized. The estimated costs that the city will incur from the development totaled $365,775 while estimated revenues to be generated totaled $12,381,452.36. A net surplus of $12,015,677.36 will therefore come to the city as a result of this acquisition.

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