New scotland cost exercise

Economics of suburb development vs. a traditional town

This exercise suggests the costs of a single-family housing development far outweighs its economic contribution to a town. Figures are approximate, based on estimates by G. Kleppel

Subdivision development (e.g. Kensington Woods): 280 units, with mostly suburban families.


60% have 2 children in school (336 new students).

Education costs $8,783 per student (from local figures):
Cost for 336 students = $2,951,088

New tax revenue is $3,708/unit:
Revenue for 280 units = $1,038,240

Overall COST TO TAXPAYERS:

$1,038,240 - $2,951,088 = $1,912,848

Traditional town development: 280 units, mix of families, empty-nesters, young home-owners, and new businesses.

20% have 2 children in school (112 new students)

Cost for 112 students = $983,696


similar revenue, $1,038,240

Overall GAIN TO TAXPAYERS:

$1,038,240 - $983,696 = $54,544