Municipal Costs and Revenues

In this section you'll have the chance to make your own choices and assumptions and see the results. Read the information from the EXAMPLE on the left, then make your choices on the right.

For the following questions, ignore other potentially interrelated economic effects for now and focus just on this Any-Mart store.

ANYTOWN EXAMPLE

YOUR ANALYSIS - Enter your own values

Municipal Revenue
The town estimates that sales tax and property tax from the store will amount to $554 per square feet of floor space per year, for a total of ______ (this value is computed based on store size you previously select). This figure represents ______ (computed based on questions you previously answered) (based on $554/1000 sq ft.) of Anytown's annual revenue before Any-Mart. Many towns offer tax incentives to attract big box stores; these reduce the town's net revenue from the particular store but they are not included explicitly here. State and municipal taxes and tax structures vary widely. Resources.

Municipal Revenue

How much tax revenue do you want to assume the Any-Mart will generate?

	20% less than estimated
	10% less than estimated
	Same as estimated
	10% more than estimated
	20% more than estimated

Cost of Services
The town would incur some costs associated with the proposed new store. These include highway and intersection improvements, water and electrical infrastructure, and public safety services. The town manager estimates these will cost ______ (this value is computed based on previously selected values) per year (assuming one-time costs are amortized over many years). Details. There may also be some room for negotiation with Any-Mart, either by providing more services to attract the store, or by asking the store to absorb some of the extra costs.

Cost of Services

How much do you want to assume the town will spend on municipal services for Any-Mart?

	20% less than estimated
	10% less than estimated
	Same as estimated
	10% more than estimated
	20% more than estimated

Signalized Intersections
In rural and suburban locations, the new store may require road improvements to accommodate extra traffic. Costs for these improvements typically range from $450,000 for upgrading an intersection with traffic signals, to $900,000 for a new intersection. If the town doesn't pay for these, either the developer will have to or they won't be built.
Federal Highway Administration

Signalized Intersections

Do you want to assume Anytown will pay for any signalized intersection work?

	No
	Yes, 1 upgrade
	Yes, 3 upgrades
	Yes, 1 new and 2 upgrades.
	Yes, 3 new intersections.

Paying for Signalized Intersections

What assumption do you want to make concerning Any-Mart's contribution to signalized intersections?

	No contribution
	Ask Any-Mart to cover part or all of the cost.