To evaluate the financing options for Surf City from the perspectives of different stakeholders lets break down the analysis into parts for clarity 1 City Council Member Perspective As a city council member the focus would be on balancing growth infrastructure needs and financial sustainability Sales Tax Referendum Advantages Broad revenue stream since it taxes both residents and visitors Easier to implement changes through existing sales tax mechanisms Disadvantages May disproportionately affect lowincome residents Citizens may resist tax increases potentially creating political challenges Development Fee Advantages Directly ties infrastructure costs to new development Encourages developers to contribute to city expansion expenses Disadvantages Potential risk of deterring development due to increased costs Might not provide immediate substantial revenue 2 Current Homeowners and Business Owners Perspective These stakeholders are concerned with property values service quality and tax burdens Sales Tax Referendum Advantages Shared financial burden with nonresidents who utilize city services No direct imposition on property ownership or value Disadvantages Increases overall cost of living due to higher sales tax on purchases May be seen as an indirect burden on their finances Development Fee Advantages Does not affect existing homeowners directly costs are passed to developers May maintain or increase property values by ensuring adequate infrastructure Disadvantages Could lead to increased costs for renovations or expansions of current properties if fees indirectly increase market costs 3 Potential New Homeowners or New Business Owners Perspective From this viewpoint affordability and attractiveness of moving to or investing in Surf City is key Sales Tax Referendum Advantages Does not increase acquisition costs of property making it financially accessible initially Allows for infrastructure improvement which enhances city appeal Disadvantages Higher ongoing living expenses due to increased sales tax May influence purchasing decisions due to the cost of goodsservices Development Fee Advantages Transparent cost allocation for community development Potential for improved infrastructure making the city more attractive Disadvantages Increases in property costs may deter new residentsbusinesses Could result in reduced housing or business space availability if developers pull back Conclusion Each financing option comes with its own set of benefits and challenges A balanced approach could be to implement a combination of both options introducing the sales tax increase gradually while setting a development fee with clear guidelines and incentives This minimizes adverse impacts while funding the necessary infrastructure improvements to sustain longterm growth This approach requires open dialogue with all stakeholders to ensure their perspectives are considered in the decisionmaking process