A regional developer is recommending that Vanderburgh County purchase the floodplain adjacent to the Port of...

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A regional developer is recommending that Vanderburgh County purchase the floodplain adjacent to the Port of Indiana and maintain it as a wildlife habitat. A presentation is being made to the Vanderburgh County Economic Development Council capturing associated costs, benefits and disbenefits. You are handed the table below and told to come up with the B-C ratio, however, none of the items are labeled. Depending on whose perspective you are presenting, the benefits and disbenefits will change. The city uses an interest rate of 6%. Citizens are primarily interested in the wellness of their families and communities. The city administration is concerned about balancing the current budget. The economic development board wants to grow the local economy. Step 1: Select a perspective to represent. Citizen City Administrator Economic Development Step 2: Complete the table, labeling each category as a benefit (B), cost (C) or disbenefit (D) based on the perspective you selected in step 1. Economic Dimension Annual cost of bonds issued to pay for project Annual property maintenance Parks development budget Loss in commercial development Sales tax not realized Municipal income Savings in flood control projects Savings from lack of property damage Estimated Cost $300,000 yrs 1-14 $5,300,000 yr 15 $75,000 + 10% per year increase $500,000 yrs 5-10 $2,000,000 yrs 8-10 $275,000 + 5% per year (starting in year 8) $100,000 yrs 1-5 then increasing by 12% per year $300,000 (yrs 3-10) $1,400,000 (yrs 11-15) $500,000 (yrs 10-15) B/C/D A regional developer is recommending that Vanderburgh County purchase the floodplain adjacent to the Port of Indiana and maintain it as a wildlife habitat. A presentation is being made to the Vanderburgh County Economic Development Council capturing associated costs, benefits and disbenefits. You are handed the table below and told to come up with the B-C ratio, however, none of the items are labeled. Depending on whose perspective you are presenting, the benefits and disbenefits will change. The city uses an interest rate of 6%. Citizens are primarily interested in the wellness of their families and communities. The city administration is concerned about balancing the current budget. The economic development board wants to grow the local economy. Step 1: Select a perspective to represent. Citizen City Administrator Economic Development Step 2: Complete the table, labeling each category as a benefit (B), cost (C) or disbenefit (D) based on the perspective you selected in step 1. Economic Dimension Annual cost of bonds issued to pay for project Annual property maintenance Parks development budget Loss in commercial development Sales tax not realized Municipal income Savings in flood control projects Savings from lack of property damage Estimated Cost $300,000 yrs 1-14 $5,300,000 yr 15 $75,000 + 10% per year increase $500,000 yrs 5-10 $2,000,000 yrs 8-10 $275,000 + 5% per year (starting in year 8) $100,000 yrs 1-5 then increasing by 12% per year $300,000 (yrs 3-10) $1,400,000 (yrs 11-15) $500,000 (yrs 10-15) B/C/D

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