Why Value Per Acre?
Urban3’s analytic method focuses on the “Per Acre” analytic as a unit of productivity. After all, cities and counties are finite areas of land, and how that land is used has a direct effect on municipal coffers. This metric normalizes overall revenues and tax values into a direct comparison, utilizing land consumed as a unit of productivity.
Put another way, different cars have differently-sized gas tanks, so the gallon is used as a measurement of efficiency, not the tank. Therefore, “miles per gallon”, not “miles per tank” is common practice to gauge efficiency. We apply the same principle to measure the financial productivity of various development types across a community.
Expansive developments with large footprints typically carry a higher cost to serve with public utilities (such as, streets, water and sewer). Thus, examining a development’s total tax production overlooks the amount of land and public resources consumed in order to produce revenue.
Property taxes are the backbone of county revenue. Efficient property tax production has a direct impact on the availability of funds to repair roads, provide quality education, and maintain adequate public services. Identifying development that packs a financial punch is critical to cultivating community wealth.