AG 2016 12 19 - Laserfiche WebLink

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Methodology The basic approach used in this research was quite simple. Working from Gaston County's most recent audited financial data, revenues and expenditures were allocated among three specific land use categories: (a) residential; (b) commercial; and (c) agricultural. This process was carried out in conjunction with a series of telephone interviews and email exchanges with a variety of local officials knowledgeable about the workings of specific departments. Once revenues and expenditures were allocated to specific land use categories, the ratio of revenues to expenditures was computed for each. A revenue-expenditure ratio greater than 1.00 indicates that that sector's contribution to the public purse exceeds its demands for public funds. Conversely, a revenue-expenditure ratio less than 1.00 indicates that the sector's demand for publicly financed services exceeds its contribution to the local budget. The basis for the current analysis is the actual expenditures recorded for the 2006-2007 fiscal year reported by the Gaston County Finance Department . As noted above, the allocation of these data to specific sectors was done in consultation with a variety of local officials (listed in the Acknowledgements). These individuals were best equipped to assess the extent to which the various land uses partake of the services provided by their departments. Where feasible, expenditures were allocated to land use categories using available data on staff salaries and/or activities records. Often, existing records were not easily amenable to being broken out into various land use categories. In many of these cases, we relied on a local official's best guess of how their department's efforts were allocated. Where the relevant officials were unable to make such a guess, one of two allocation schemes was used. For services that exclusively benefit households (as opposed to commercial establishments)2 —for example, public schools and library services— 100% of expenditures were allocated to the residential sector.3 For departments whose activities benefited both residences and businesses (including agricultural businesses), expenditures were z Note that the quality of"residential"services such as public schools may well have a positive influence on business formation,particularly the attractiveness of the county to firms considering relocation. These"spillover" effects are ignored here,however,because the information needs for quantifying them lie well beyond the scope of this research. 3 As is the case with other counties in North Carolina,Gaston County separates the farm business from the farm residence,assessing the property value of farm residences in the same manner as any other residences. For this reason,farm residences were included in the residential land use category throughout the analysis. 3 G-4 Page 246