A per capita cost analysis involves the following steps:

1. Disaggregate budgets into categories of service expenditure, such as

general government, public safety, public works, health and welfare.
2. Determine the population and employment changes associated with the
development.
3. Calculate the proportion of municipal costs for residential facilities based on
the proportion of their value to total real property valuation and their parcels
to total parcels, deriving a net service expenditure estimate (residentiallyassociated).
4. Calculate the non-residential portion of municipal costs which is the
difference between total costs and residentially associated cost.
5. Divide net expenditures (residential) by total population. This is a per capita
estimate of municipal service costs. Per capita estimates can be calculated
for each category of expenditure. Divide nonresidential costs by local
employees for a per employee estimate of nonresidential service costs (this
assumes that employment intensity generates public service costs).
6. Calculate the residentially-induced costs associated with the development
by multiplying the per capita estimate of current service costs by the
population increase.
7. Calculate nonresidential costs associated with development by multiplying
the per employee estimate of service costs by the employment increase
associated with the development. Estimate revenues to be generated by
development. Compare estimated revenues and costs associated with the
new or proposed development and determine the net fiscal impact on the
community.

Steps for the service standard method are:

1. Determine the population increase resulting from the proposed
development.
2. Using service ratios for communities of various sizes in different regions,
project the number of additional employees necessary to accommodate the
development
3. Disaggregate budgets into service functions and calculate average
operating expense per employee by function by dividing total operating
expenses by function by the total number of employees in that service
category.
4. Project annual operating costs by multiplying average operating expenses
per worker by the number of new employees associated with the
development.
5. Project total annual capital costs associated with the development by
multiplying capital-to-operating expenditure ratios by total annual operating
costs.
6. Project total costs by adding operating expenses to capital expenses
associated with the development.
7. Estimate revenues associated with the development.
8. Compare estimated costs to revenues to determine the net fiscal impact
on the community.