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Pleasanton General Plan Fiscal Impact Analysis Final Report 01/16/14 Location of growth within the City will also play a significant role. In many cases, infill development that leverages existing infrastructure improves fiscal performance due to reduced operating costs. As a result, locations in compact development setting, such as downtown or close to the BART station, may offset potential fiscal shortfalls of higher density residential uses. But the fiscal benefits are not always obvious and typically vary by site-specific attributes as well. While proximity to existing services reduces operating costs due to economies of scale, greenfield growth on the City's fringe, that tends to result in higher costs, could also achieve fiscal neutrality. For greenfield development, mitigation measures such as CFD taxes are typically used to supplement General Fund expenditures. These special taxes guarantee an ongoing revenue source to pay for public services and infrastructure maintenance and reduce the burden on the General Fund. New infrastructure is often cheaper to maintain because it is designed and built using modern technology and utilities (e.g., underground). The City's economic and fiscal health is also affected by a variety of factors outside of its control, including the national business cycle, state and federal budget decisions, international trade, and performance of key local industries such as services and retail. Thus, a key challenge for an established city like Pleasanton is to guard against a negative economic and fiscal spiral triggered by declining tax revenues and further exacerbated by disinvestment in critical public services and infrastructure that in turn reduces the City's quality of life and ultimately the loss of valuable jobs and employed residents. Economic&Planning Systems, Inc. 57 P:\121000\121062P/easanton\Report\121062Report FINAL.doc