Friday, June 16, 2006
We are pleased to report the results of our preliminary fiscal impact study, conducted by the leading economic analysis firm Economic and Planning Systems (EPS) (www.epsys.com) of Berkeley, Calif. Their analysis measured the financial impact of The Cliffs on public service providers. The study compares projected revenues generated by The Cliffs versus the costs associated with the public services used by residents.
At full buildout, EPS estimates that The Cliffs’ taxable property value will be nearly $696 million. This will generate approximately $10 million in property tax revenue annually versus an estimated $7 million in expenses to provide public services. The net impact is therefore a surplus of approximately $3 million for government agencies and local public service providers including Ada County Government’s combined General Fund and Special Levy Funds, ACHD, Boise School District, Ada County EMS and Ada County Pest Control. Surpluses are also expected for Whitney Fire District and Ada County library, although cost estimates are still being refined.
Fiscal impacts to public service agencies, as currently estimated, are as follows (based on buildout, anticipated to occur in 2012):
Ada County Government’s combined General Fund and Special Levy Funds: The Cliffs is expected to generate property tax revenue totaling $1,973,000, which is projected to create a fiscal surplus of about $865,000.
Ada County Highway District (ACHD): The Cliffs is expected to generate $788,000 in property tax revenue for ACHD, which is projected to exceed incremental costs by $644,000.
Boise School District: The Cliffs is expected to generate $5,509,000 in property tax revenue, which is projected to exceed incremental costs to serve students living in The Cliffs by $1,241,000.
Whitney Fire District: The Cliffs is expected to generate $1,355,000 in property tax revenue and the expected operation and maintenance costs are continuing to be refined in consultation with Whitney (Skyline has committed to provide land for a new fire station, construct and equip the fire station and subsidize operating shortfalls until tax revenues adequately cover operations and maintenance costs).
Ada County Emergency Medical Services (EMS): The Cliffs is expected to generate $88,000 in property tax revenue for Ada County EMS and this amount is projected to exceed service costs by $37,000.
Ada County Pest Control: The Cliffs is expected to generate $87,000 in property tax revenue for Ada County Pest Control and this amount is projected to exceed service costs by $69,000.
Ada Community Library (ACL) District: The Cliffs is expected to generate $463,000 in property tax revenue. The costs associated with staffing, operating and interim services are being estimated in consultation with ACL. Skyline plans to develop an ACL library in concert with a school library on site at the Cliffs.
While these figures are only preliminary, EPS will continue to work with The Cliffs and the public agencies to refine the revenues and costs associated with our project. I must stress that as a planned community in Ada County, The Cliffs will be expected to maintain financial and fiscal self-sufficiency. We are committed to creating a community that will benefit the valley for many years to come - fiscally, environmentally and socially.
Sunday, February 19, 2006
A new technology called Membrane Bio-Reactor (MBR) promises to help The Cliffs to realize the dream of complete water conservation. This technology has been gaining notice and was highlighted in the Jan. 28 Idaho Statesman. Water quality is a big issue for us, since the development on and around Hammer Flat relies on septic tanks, which are the most environmentally unfriendly legal way of disposing of raw sewage. Under the current zoning, new development could continue to use septic tanks – a situation that would not change even if the city controlled the land. Hammer Flat has suffered enough degradation under the primitive, backward technology of septic tanks and we envision a better future. More information on MBR is available at this site.
The City of Star is already using this technology. At The Cliffs, we will cleanse the water to Class B, which exceeds the current quality of the Boise River. Class B reclaimed wastewater is permitted for use on edible portions of food crops and may be used to irrigate parks, playgrounds, lawns and schoolyards
And, while Boise and other cities simply dump their treated effluent into the Boise River, we are opting to take a more enlightened approach through conservation and recycling. After we treat our wastewater with MBR technology, we will use it to fill ponds and water draws on the slopes behind The Cliffs. This precious resource will be put to use to create ponds and sustain grasses, shrubs and cover for deer, elk, birds, rodents and other creatures. Currently, the plateau is an arid place, with no year-round source of water.
We expect to return a minimum of treated water into the Boise River, because the maximum amount of water will be applied to the habitat. For more information on water recycling and the potential benefits to habitat, go to this EPA site.
Wednesday, February 08, 2006
What’s unusual here is that we’re going the extra mile to make sure The Cliffs pays its own way. We’re told this is the first time in Idaho that a developer has proposed providing and/or paying for the land, the building, equipment and full-time personnel. We will reimburse local government for the salaries of the firefighters entirely at the outset, and reduce that as the tax base at The Cliffs expands. Everywhere else in the county, if a fire station needs to be built to service growth, the general tax base pays for it. Ours is an innovative proposal and we thank the Whitney Fire District for approving it.
It’s worth pointing out the current example of development on the plateau – low-density leapfrog development, serviced with dirt roads and septic tanks, accessible only by automobile – requires the most public subsidy. People in this development must drive into Boise for even the most mundane needs, polluting the air with vehicle exhaust and our water with dust and burdening existing neighborhoods. While septic tanks are legal, they are the most environmentally unfriendly way of disposing of raw sewage.
That development is a throwback to the days when our community had a higher tolerance for urban sprawl. We pledge The Cliffs will be as self-sufficient as any planned community can possibly be in this day and age and our commitment to the Whitney Fire District will set the tone for our other services as The Cliffs progresses.