ABSTRACT
The Proportional Valuation Method is an average costing approach used to project the impact of nonresidential (industrial and commercial) development on local costs and revenues. The Proportional Valuation Method employs a two-step process to assign a share of municipal costs to a new commercial or industrial establishment. First, a share of total municipal costs is given to all local nonresidential uses. Second, a portion of these nonresidential costs is allocated to the incoming nonresidential facility. The application of the Proportional Valuation Method may best be described by comparing it with another long standing method for evaluating the fiscal impact of nonresidential uses, the Case Study, and to a new multivariate approach, the Employment Anticipation Method. The Proportional Valuation Method may be undertaken in six basic steps To overview, collecting data base, determining costs, allocating costs to specific service areas, estimating Revenues and obtaining net fiscal impact.
