in St. Clair County The Impact of Home Building The Home Builders & Remodelers Association recently conducted this report thru the NAHB to capture the effect of construction activity, the ripple impact and ongoing impact that results from new homes becoming occupied. Below is a detailed breakdown of the imposed costs on local government. We will continue to share this information, in parts, for you to know that our industry has one of the biggest roles in our local economy. This information is available to our members and will be shared with our municipalities in the near future. Results for 100 Single-Family Homes Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Expenses Revenues 232,900 465,700 465,700 465,700 465,700 465,700 465,700 465,700 465,700 465,700 465,700 465,700 465,700 465,700 465,700 Operating Surplus 780,200 780,200 780,200 780,200 780,200 780,200 780,200 780,200 780,200 780,200 780,200 780,200 780,200 780,200 Capital Investment Interest on Debt 2,576,400 2,343,500 1,351,000 55,300 1,245,900 1,245,900 1,245,900 1,245,900 1,245,900 1,245,900 1,245,900 1,245,900 1,245,900 1,245,900 1,245,900 1,245,900 1,245,900 1,245,900 18,600 Revenue Net of Costs & Interest 937,200 780,200 780,200 780,200 780,200 780,200 780,200 780,200 780,200 780,200 761,600 780,200 780,200 780,200 780,200 Year 1: Revenues are made up of Local Government Revenues during the Construction Phase, Ripple Phase and half of the Occupancy Phase. Expenses in the first year are only 1/2 of costs since homes are not fully occupied. Capital investment for infrastructure principle is a one-time cost. Year 2: Full Occupancy Phase revenue and Local Government costs have a net result of $780,200 net or $7,802 per new home. Year 11: Capital equipment purchases become fully depreciated and need to be replaced. Page 10
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