TOWN OF PELHAM, NEW HAMPSHIRE

TOWN OF PELHAM, NEW HAMPSHIRE BUILDOUT ANALYSIS Prepared for the PELHAM CONSERVATION COMMISSION with the assistance of the NASHUA REGIONAL PLANNING COMMISSION

TABLE OF CONTENTS I. INTRODUCTION...1 II. GOAL OF THE BUILDOUT ANALYSIS...1 III. METHODOLOGY...2 A. CONSTRAINTS MAPPING...2 B. DATA SOURCES FOR CONSTRAINTS MAPPING...3 IV. AVERAGE DENSITY...4 V. RESULTS...4 10 A. NET DEVELOPABLE AREA AND POTENTIAL HOUSE LOTS...4 B. ESTIMATED POPULATION AT BUILDOUT...8 C. HOUSING UNIT AND POPULATION GROWTH...9 D. HOUSING AND POPULATION GROWTH ESTIMATES BASED ON OPEN SPACE PROTECTION E. COMMERCIAL AND INDUSTRIAL LAND BUILDOUT...12 F. FISCAL IMPACT ANALYSIS...14 APPENDIX A: REVENUES BY LAND USE TYPE...16 APPENDIX B: EXPENDITURES BY LAND USE TYPE...17 LIST OF TABLES Table 1: GIS Data Layers and Sources...2 Table 2: Average Densities of Recently Approved Subdivisions...4 Table 3: Scenarios for Potential New Lots at Buildout...5 Table 4: Scenarios for Estimated Population at Buildout...8 Table 5: Housing and Population Projection Based on 1.84% Growth Rate/Year...9 Table 6: Housing and Population Projection Based on 117 Units/Year Average...9 Table 7: Potential New Lots after Protection of 25% Open Space...10 Table 8: Estimated Population at Buildout after Protection of 25% Open Space...12 Table 9: Scenarios for Potential New Lots in the Commercial District...13 Table 10: Scenarios for Potential New Lots in the Industrial District...13 Table 11: Scenarios for Total Square Footage at Buildout in the Commercial District...13 Table 12: Scenarios for Total Square Footage at Buildout in the Industrial District...14 Table 13: Cost of Community Services Ratios...15 LIST OF MAPS Map 1: Developable and Non-Developable Areas of Undeveloped Parcels...6 Map 2: Undeveloped Parcels of 1-Acre or Greater...7 Map 3: Potential Conservation Lands and Number of New Lots...11 Page i.

I. INTRODUCTION This Buildout Analysis was developed in 2003 by the Pelham Conservation Commission with the assistance of the Nashua Regional Planning Commission. A buildout analysis is an effort to estimate what level of residential development may occur in the Town in the future. Buildout is a theoretical condition and exists when all available land suitable for residential, commercial and industrial construction has been developed. This analysis determines: (1) an estimate of the maximum number of housing units that will result when all of the available developable land is consumed; (2) an estimate of the maximum population of the Town; (3) an estimate of the year of ultimate buildout; (4) an estimate of the population in 5 year increments and at buildout; (5) an estimate of the maximum square footage of commercial and industrially zoned buildings at buildout; and (6) an estimate of the fiscal impact to the Town at buildout. This study does not consider the re-use of property, but rather new uses of currently undeveloped sites. II. The nine estimates noted above are determined in the following manner: Constraints to development relating to the Pelham Zoning Ordinance and Subdivision Regulations, such as wetlands, floodplains, and development restrictions relating to parcel ownership or conservation efforts are mapped using Geographic Information System software (GIS). The net developable area is determined by subtracting the number of acres of constrained land from the total acreage for each undeveloped residential parcel. The net developable area is divided by the average density of recent Pelham subdivisions to determine the number of housing units that can be developed on the net developable area. A maximum population estimate is determined by multiplying the projected number of housing units by the average housing unit size and adding this to the current population. The year of ultimate buildout is estimated using the average annual housing unit growth rate from 1990 2000 and also by determining the rate of growth from 1998 2003. The population in five year increments and at buildout is estimated using the average annual housing unit growth rate from 1990 2000 and the average housing unit size in 2000. The current square footage of commercial and industrially developed lots was analyzed. Based on the current average square footage in both of these districts, an estimate of the total square footage of commercial and industrial development at buildout was projected. The revenues and expenditures for three basic land uses was analyzed for the year 2002. Based on the totals of revenues and expenditures for each land use, and ratio was developed that measures the total amount of revenue for each land use per dollar spent. A presentation of the benefits of preserving open space based on a fiscal analysis of the town revenues and expenditures. GOAL OF THE BUILDOUT ANALYSIS The primary goal of this analysis is to provide the Town and the public with information needed to make informed choices regarding the future growth of Pelham. Issues related to future growth include the fiscal impacts or costs of new development to existing public services, public safety and health, the protection of natural resources, and the preservation of open space and farmland. The results can provide base data for the Board of Selectmen, Conservation Commission, and the Capital Improvements Plan, among others. Page 1

III. METHODOLOGY A. Constraints Mapping This Buildout utilizes Geographic Information System software (GIS) which increases the efficiency of producing the final map set and results. A GIS is computerized mapping software that incorporates a relational database management system that holds information about geographic features. The Nashua Regional Planning Commission has been continually improving and updating the GIS database for its member communities for twelve years. For Pelham, the following relevant data layers are available, among others: Table 1. GIS Data Layers and Sources Data Layer Source Description Floodplains FIRM Depicts Zone A floodplains (100-year_ Parcels NRPC/Pelham Includes parcels boundaries, attributes Landuse NRPC/Pelham Land use types by parcel derived from local Assessing values Water UNH Granit Based on USGS Digital Line Graph Roads NH DOT Based on USGS Digital Line Graph Wetlands US Fish and Wildlife Service NWI Wetlands Town Boundary UNH Granit Based on USGS Digital Line Graph Zoning NRPC/Pelham Depicts all zoning districts Note: FIRM = Flood Insurance Rate Map; UNH = University of New Hampshire; NH DOT= NH Department of Transportation. Constraints mapping involves determining the net developable area of undeveloped residential land in Pelham. Net developable area is that undeveloped area of Pelham which could conceivably accommodate new housing units. The constraints mapping considers whether a parcel will be developed as 1.5-acre lots (based on the average lot size developed over the past 5 years). Therefore, for the purposes of the Buildout Analysis, the net developable area in Pelham is that section of a parcel that is not constrained by the following features (see detailed description in Section B): Wetlands Conservation Land Recreation Conservation Agricultural Zoning District Floodplains In addition to these above-mentioned constraints, the Spar and Spindle Girl Scout camp land was also considered a constraint in this buildout analysis. The Girl Scout Camp is not permanently protected. Because the camp is not protected, this analysis determined the net developable land available in the Town of Pelham including and excluding the Girl Scout camp. It should be noted that fifty lots of the total are reduced to less than 1 acre once the development constraints are applied. These lots were removed from the buildout analysis. Page 2

B. Data Sources for Constraints Mapping Town of Pelham A series of data sources were used to calculate the amount of land constrained by natural features within the Town of Pelham. The following is an explanation of this data, why it is considered a constraint to development and the sources utilized for this data. Recreation Conservation Agricultural Zoning District Certain parcels within the Town, such as the Pelham Fish and Game Club, are assumed to be relatively free of development pressure because of their location in the Recreation Conservation Agricultural District. Lands in this district are considered to be undevelopable for the purposes of this study. Ownership data is sourced from the Town of Pelham Assessor s Office and the NH Conservation and Public Lands Database developed by the Society for the Protection of NH Forests (as updated by NRPC). The study assumes that ownership constraints will remain constant in the future. Wetlands A soil s drainage class is based upon how quickly water moves through the soil. The classes are sourced from the National Wetlands Inventory classification system and include the excessively drained, well-drained, moderately well-drained, poorly drained, and very poorly drained classes. The last two classes, very poorly and poorly drained soils, correspond to the definition of hydric A and hydric B soils which are considered wetland soils and are used to defined the extent of wetlands for the purposes of this study. Wetlands are protected from development by the Wetlands Conservation District of the Pelham Zoning Ordinance and cannot be used to contribute towards the buildable area of a lot. There is a mandatory 50-foot buffer that must be preserved around said wetlands. Floodplains Floodplains are delineated on the Flood Insurance Rate Map (FIRM) developed by the Federal Emergency Management Agency. Areas of special flood hazard are designated on the FIRM as zones A, AO, AH, A1-30, AE, A99, VO, or V1-30, VE or V. The only zones found within Pelham are zones A and AE. The development constraints considered above are those available within the NRPC GIS and do not represent the full range of possible restrictions or resources that may be found in the field. For example, rare and endangered species may be present in Pelham but are not considered because the data about their specific locations is not available. Each of the features were mapped at a scale of 1:24,000. Page 3

IV. AVERAGE DENSITY As discussed above, the buildout determines the net developable area of each undeveloped parcel of greater than 1 acre in Pelham. Table 2 shows the average density for recently approved subdivisions. As indicated in Table 2, although the zoning ordinance permits 1-acre zoning, most of the lots in the approved subdivisions have been an average of 1.5 acres or larger. Table 2. Average Densities of Recently Approved Subdivisions Subdivision Name Approval Date Net Buildable Area (acres)* Number of Lots Approved Density (acres per unit) Adobe Estates 2001 45.7 11 1.4 Koppers Lane Dev. 2001 48 33 1.5 Long Pond Shores 2001 25.1 13 1.9 May Lane Extension 2001 18.1 12 1.5 Old Orchard Estates 2001 60.78 37 1.6 Willowvale Avenue Dev. 2001 10 7 1.4 Average 1.5 Source: Town of Pelham Planning Department. *Net Buildable Area = gross parcel area area of wetlands and floodplains. As Table 2 shows, the average density of recently approved subdivisions is 1 unit per 1.5 acres. This is a lower density than could be permitted if these subdivisions would have been developed at the highest permitted density of 1 unit per acre. V. RESULTS A. Net Developable Area and Potential House Lots Map 2 shows the undeveloped residential parcels, the estimated location of wetlands and the conservation lands in the Town of Pelham. The following is a summary of the results of the constraints mapping. There are a total of 5,370 acres of undeveloped or agricultural land. 1,499 acres of this area are constrained (including wetlands, floodplains and the RCA District). 321 acres of the total undeveloped land in Pelham belongs to the Spar and Spindle Girl Scout Camp. There are a total of 3,871 acres of vacant and developable land. 1 215 acres of this area is owned by the Girl Scout Camp. 10% of the total vacant and developable land in Pelham was removed for design issues (roads and setbacks). Of the vacant and developable land in Pelham, 248 acres are within the Recreation- Conservation-Agricultural District. In order to determine the number of potential house lots, one of two scenarios can be applied: 1) 1.5 acre zoning which includes the Girl Scout Camp in determining the total 1 Vacant and developable land calculation is based on Assessing data as of August 2003. Page 4

number of lots; or 2) 1.5-acre zoning which excludes the Girl Scout Camp in determining the total number lots. Table 3 presents the results of these two scenarios. Page 5

Table 3. Scenarios for Potential New Lots at Buildout Scenario 2: 1.5-Acre Lots (including Girl Scout Camp) Scenario 4: 1.5-Acre Lots (excluding Girl Scout Camp) Total Vacant and Developable Land (Acres) Developable Minus 10% for Design Issues / ROW 3,871 3,656 3,484 3,290 Acres in RCA District 248 248 Remaining Vacant and Developable Land 3,236 3,042 Total Potential New Lots 2,157 2,028 Source: NRPC GIS, 2003. Page 5

Map 1. Developable and Non-Developable Areas of Undeveloped Parcels Source: NRPC GIS, 2003 Page 6

Map 2. Undeveloped Parcels of 1-Acre or Greater Source: NRPC GIS, 2003 Page 7

B. Estimated Population at Buildout The population of the Town of Pelham in 2000 was 10,914 and the number of housing units was 3,740 (see Table 2). 2 Constraints mapping estimates four scenarios for the number of additional housing units that the Town can accommodate. Those scenarios are presented in Table 4. To determine the estimated population figures at buildout, the number of additional housing units in each scenario is multiplied by the average housing unit size and then added to the existing 2000 population. The average housing unit size is determined by dividing the 2000 population (10,914) by the number of housing units (3,740). This results in 2.92 persons per housing unit in Pelham. This study assumes that the average housing unit size will remain constant. Table 4 presents the two scenarios for estimated population at buildout in Pelham. If Pelham continues to approve subdivisions at an average of 1.5 acres per lot, an additional 6,298 people would be added to the town for a total of 17,212 residents. If the Girl Scout camp were set aside as conservation land, the number of residents at buildout would drop. However, with 1.5 acre lots and assuming the Girl Scout Camp will be developed, only 5,992 additional people could be added to the town, for a total of 16,836 people. Table 4. Scenarios for Estimated Population at Buildout Scenario Scenario 1: 1.5- Acre Lots (including Girl Scout Camp) Scenario 2: 1.5- Acre Lots (excluding Girl Scout Camp) Estimated New House Units at Buildout (A) Estimated Total Number of New House Units at Buildout (A + 3,740*) Persons per housing unit (B) Additional Persons per Housing Units (A x B = C) Estimated Population at Buildout (C + 10,914**) 2,157 5,897 2.92 6,298 17,212 2,028 5,768 2.92 5,922 16,836 * 3,740 is the number of housing units in 2000. * 10,914 is the population in 2000. 2 Source: US Census 2000. For the purposes of this analysis 1 housing unit = 1 household. However, US Census reported that in 2000, The total number of households is 3.606 with an average size of 3.03. Of those, 2,983 are family households, with an average size of 3.33 persons. Page 8

C. Housing Unit and Population Growth Housing unit growth in Pelham has taken place at an average annual growth rate of 1.84% between 1990 and 2000. 3 However, in addition to calculating the average annual growth between 1990 and 2000, an analysis was conducted of the number of building permits approved between 1998-2002. 2 There was an average of 117 building permits approved for construction over these five years. When both of these growth rates were applied to the existing number of housing units, NRPC discovered different projections for the number of housing units and population at buildout. The following is a summary of the results of these two analysis. The analysis in Table 5 (based on 1.84% housing growth per year) predicts that in 2025, Pelham will have approximately 5,900 housing units and 17,227 residents. According to Scenario 1 in Table 4 (1.5 acre zoning with the Girl Scout Camp), this is just under the maximum amount of lots and residents at buildout in Pelham. Scenario 2 estimates that buildout could be in 2024, with 5,768 housing units and a population of approximately 16,836. The analysis in Table 6 (which is based on a housing growth rate of 117 units per year) predicts that in 2025 Pelham will have about 6,665 housing units and 19,462 residents. Based on the analysis in Table 6, using scenarios 1 and 2 (in Table 4) it can be predicted that buildout could be reached between 2018 to 2019. In the most aggressive scenario (Scenario 1 in Table 4), buildout will occur in about 2024 with a population of approximately 17,212. In the least aggressive scenario (Scenario 2 in Table 4), buildout will occur in about 2017 with a population of approximately 16,836. Table 5. Housing and Population Projection Based on 1.84% Growth Rate/Year 4 Increase in New House Lots Year Housing Units Increase Population Increase 1.5-Acre Lots 2000 3,740 n/a 10,914 n/a n/a 2005 4,097 357 11,963 1,049 238 2010 4,488 748 13,105 2,191 499 2015 4,916 1,176 14,356 3,442 784 2020 5,386 1,646 15,726 4,812 1,097 2025 5,900 2,160 17,227 6,313 1,440 Table 6. Housing and Population Projection Based on 117 Units/Year Average 4 Increase in New House Lots Year Housing Units Increase Population Increase 1.5-Acre Lots 2000 3,740 n/a 10,914 n/a n/a 2005 4,325 585 12,629 1,715 390 2010 4,910 1,170 14,337 3,423 780 2015 5,495 1,755 16,045 5,131 1,170 2020 6,080 2,340 17,754 6,840 1,560 2025 6,665 2,925 19,462 8,548 1,950 3 Derived by NRPC from US Census data for permits authorized for construction. The following is a per year total for permits aproved: 1998 95 permits; 1999 104 permits; 2000 116 permits; 2001 117 permits; 2002 152 permits. 4 Sources for Tables 5 and 6: U.S. Census 2000. Page 9

D. Housing and Population Growth Estimates Based on Open Space Protection The Society for the Protection of New Hampshire Forests (the Society), through its New Hampshire Everlasting program, is proposing that New Hampshire communities and conservation organizations join together to design and conserve a statewide system of conservation lands. The Society has proposed five interrelated goals to guide the selection and conservation of lands for communities, forestry, habitat, clean waters and farming: 1. Support every community in conserving, with partners, at least twenty-five percent of its lands for a network of trails, parks, farms, and forests where people can connect with the natural world. 2. Conserve our share of the world s productive forest and enhance the forest economy so that New Hampshire can sustainably help supply the equivalent of what its residents consume. 3. Conserve enough habitat to sustain healthy ecosystems and ensure the survival of existing native species in each region of the state. 4. Sustain drinking water supplies and healthy aquatic ecosystems by conserving upland buffers along shorelines and lands that feed water to existing and future public water supplies. 5. Conserve the most productive agricultural land and invest in the evolving agricultural economy so that people in every community have the opportunity to grow healthy food and the state can sustain at least its current level of food production. 5 In order to achieve these goals set by the Society and understand what the impact of protecting open space would be on growth and ultimate buildout in Pelham, the Pelham Conservation Commission proposed to develop a conservation scenario as part of this buildout analysis. This scenario, presented in Table 7 and illustrated in Map 3, provides an estimate of total developable land with 25% of that land protected as open space. Tables 7 and 8 present scenarios that estimate potential new lots and population at buildout based on 1.5 acre lots as discussed earlier in this analysis. Table 7. Potential New Lots after Protection of 25% Open Space Total Vacant and Developable Land (Acres) Developable Minus 10% for Design Issues / ROW Scenario 6: 1.5-Acre Lots with 25% Open Space Protected 2,904 2,614 Acres in RCA District 248 Remaining Vacant and Developable Land 2,366 Total Potential New Lots 1,577 Source: NRPC GIS, 2003. 5 Society for the Protection of New Hampshire s Forests, New Hampshire Everlasting: An Initiative to Conserve Our Quality-of-Life, September 22, 2001. Page 10

Map 3. Potential Conservation Lands and Number of New Lots Source: NRPC GIS, 2003 Page 11

Scenario Scenario 6: 1.5- Acre Lots with 25% Open Space Table 8. Estimated Population at Buildout after Protection of 25% Open Space Estimated New House Lots at Buildout (A) Estimated Total Number of New House Lots at Buildout (A + 3,740*) Persons per household (B) Additional Persons per Household (A x B = C) Estimated Population at Buildout (C + 10,914**) 1,577 5,317 2.92 4,605 15,519 Source: NRPC GIS, 2003. * 3,740 is the number of housing units in 2000. * 10,914 is the population in 2000. Scenario 6 estimates that buildout will be even sooner. When using Table 5 (1.84% housing growth) buildout could occur in about 2019 with 5,317 lots and a population of 15,519. Using Table 6 (115 units per year), buildout could be realized by 2014. E. Commercial and Industrial Land Buildout Analysis An analysis of the current square footage of commercial and industrially zoned land in Pelham was conducted and projected forward to determine the maximum amount of square footage in these districts at buildout. The following steps were taken to calculate buildout for the commercial and industrial zones: 1. Determine current square footage of commercial and industrial buildings. The current square footage of commercial and industrially developed lots in Pelham was calculated from building footprints provided by the Pelham Town Assessing Department and through digital interpretation of aerial photographs. 2. Calculate vacant and developable land in commercial and industrial districts. The total vacant and developable land was then calculated to determine the remaining area of commercial and industrially zoned land. 3. Calculate an average square footage. The average square footage was calculated for the current commercial and industrial buildings. 4. Calculate potential number of lots at buildout. Three scenarios were applied to the vacant and developable land in commercial and industrial districts to calculate the total potential number of lots at buildout (see Tables 9 and 10). The first scenario was based on 1-acre zoning in each district. The second scenario was based on 2-acre zoning. The third scenario was based on the current average lot size in each district. 5. Calculate the total square footage of commercial and industrial buildings at buildout. The resulting scenarios of potential number of lots were multiplied by the average square footage to determine the total square footage of commercial and industrial development at buildout. Page 12

Table 9. Scenarios for Potential New Lots in the Commercial District Scenario 1: 1-Acre Lots Scenario 2: 2-Acre Lots Scenario 3: 3.73-Acre Lots (Current Average Lot Size) Total Vacant and Developable Land (Acres) Developable Minus 10% for Design Issues / ROW Remaining Vacant and Developable Land 77 77 77 8 8 8 69 69 69 Total Potential New Lots 69 35 18 Source: Pelham Assessing Department, derived by NRPC GIS, 2003. Table 10. Scenarios for Potential New Lots in the Industrial District Scenario 1: 1-Acre Lots Scenario 2: 2-Acre Lots Scenario 3: 2.69-Acre Lots (Current Average Lot Size) Total Vacant and Developable Land (Acres) Developable Minus 10% for Design Issues / ROW Remaining Vacant and Developable Land 114 114 114 11 11 11 103 103 103 Total Potential New Lots 103 52 38 Source: Pelham Assessing Department, derived by NRPC GIS, 2003. At the permitted zoning acreages, the total potential number of new commercial and industrial lots is 69 and 103 respectively. However, the current rate of development for each of these districts is 3.73 acres per lot in the commercial district and 2.69 acres per lot in the industrial district. At these rates the potential number of new lots is 18 and 38 respectively. The total amount of square footage at buildout was calculated by multiplying the average square footage by the total potential number of new lots in the three scenarios presented in Tables 9 and 10. The results from these calculations for each district is presented in Tables 11 and 12. Table 11. Scenarios for Total Square Footage at Buildout in the Commercial District Scenario 1: 1-Acre Lots Scenario 2: 2-Acre Lots Scenario 3: 3.73-Acre Lots (Current Average Lot Size) Total Potential New Lots 69 35 18 Average Square Footage 12,533 12,533 12,533 Total Potential Square Footage at Buildout Source: Pelham Assessing Department, derived by NRPC GIS, 2003. 864,777 438,655 231,844 Page 13

Table 12. Scenarios for Total Square Footage at Buildout in the Industrial District Scenario 1: 1-Acre Lots Scenario 2: 2-Acre Lots Scenario 3: 3.73-Acre Lots (Current Average Lot Size) Total Potential New Lots 103 52 38 Average Square Footage 21,524 21,524 21,524 Total Potential Square Footage at Buildout Source: Pelham Assessing Department, derived by NRPC GIS, 2003. 2,216,972 1,119,248 824,153 F. Fiscal Impact Analysis The purpose of the fiscal impact analysis was to determine the income and expenses in the Town of Pelham by land use type. The result is a set of ratios that show how the income and expenses for each land use type compare to each other. This methodology, also called a Cost of Community Services study, is based on the one developed by the American Farmland Trust in the mid-1980s. It has been used in over sixty communities in the country and a dozen communities in New Hampshire. There are several steps involved in a fiscal impact analysis: 1. Determine which land use categories would be used. The land use types selected in most of the other New Hampshire towns (and in the other communities nationwide) are residential, combined commercial and industrial, and open space. Current use land was included in this analysis as well based on the Town s assessing records. 2. Collect the revenues and expenditures for the community. These financial statements are broken down by line item (i.e., roads, schools, fire, police, etc.). This information was found in the 2002 Annual Town Report and the Board of Selectmen s office. 3. Assign revenues and expenditures by land use. The revenues and expenditures for each line item in the Town s financial statements were allocated by land use based upon the type of service provided (see Appendices B and C). Pelham s financial statements do not assign income and expenses by land use. Some of the line items in the financial statements can be attributed to one land use category, such as education, human services and recreation. Where many revenues and expenditures are attributed to a number of land use categories they were spread across each category based on weighted ratios. These ratios are calculated using the assessed value for all parcels in each land use category. For example, in Pelham 90% of the assessed land value is attributed to residential development, so 90% of the income and expenses were allocated to the residential land use category. 4. Calculate the total for each land use category. All of the categories are tabulated for the revenues and expenditures. The final results are compared as income versus expenses which is then expressed as a ratio. For example, the total revenue for the commercial/industrial category was $1,338,177, while the total expenditure was $415,796. This is a ratio of 1:0.31 or for every dollar of income $0.31 is spent on commercial/industrial land uses. The ratios for each land use type are summarized in Table 13. Based on these ratios, for every dollar of income from residential land uses $1.04 will be spent. For every dollar of revenue collected for commercial land uses $0.31 is spent. Similarly, for every dollar of income for current use is only $0.28 and for conservation land and other non-taxable land (i.e., churches, etc.) only $0.40 per dollar is spent. Page 14

Table 13. Cost of Community Services Ratios Residential Commercial/Industrial Current Use Conservation and other Non- Taxable Land Revenues Expenditures Revenues Expenditures Revenues Expenditures Revenues Expenditures $18,620,366 $19,394,366 $1,338,177 $415,796 $181,412 $51,976 $167,271 $67,500 1: 1.04 1: 0.31 1: 0.28 1: 0.40 Source: Derived from the Town of Pelham, NH, Annual Town Report, 2002 When the four land uses in Table 13 are compared, it is found that residential land uses are costing the town more per dollar than any other land use in Pelham. For every dollar spent on residential and commercial/industrial uses in Pelham, it is costing the town $0.73 extra for residential uses ($1.04 for residential expenditures versus $0.31 for commercial and industrial expenditures). Similarly, for every dollar spent on residential and open space land uses in Pelham, it is costing the town $0.64 extra for residential uses ($1.04 for residential expenditures versus $0.40 for open space expenditures). The results of the cost of community services analysis is similar to other studies done statewide which indicates that the income from residential property is insufficient to pay of the services that residents demand. Undeveloped open space and commercial/industrial land uses, on the other hand, provide more direct income to their community than they require in services, thus underwriting the costs of residences. 6 A statewide study expanded even more on these results. The study considered the impact of all open space on the tax rate, comparing average property tax bills with several measures of development. The study found that, on average, property taxes are higher in communities with larger tax bases and more taxable property, more residents and more commercial and industrial development. Alternately, property taxes, on average, are lower in towns with more undeveloped land per year-round resident, whether the undeveloped land is publicly owned or permanently protected, or privately owned. #255G-4 6 Taylor, D., New Hampshire Wildlife Federation, Groton Cost of Community Services Study, October 6, 2000. Page 15

APPENDIX A Revenues by Land Use Type 7 Revenue Source Total Residential (90%) Commercial/ Industrial (8%) Current Use (1%) Conservation and other Non- Taxable Land (1%) Property Taxes $13,271,246 $11,944,121 $1,061,700 $132,712 $132,712 Land Use Charge $186,198 $167,578 $14,896 $1,862 $1,862 Yield $7,012 $0 $0 $7,012 $0 Excavation Activities $119 $107 $10 $1 $1 Penalties/Interest $86,973 $78,276 $6,958 $870 $870 Charges for service $452,626 $407,363 $36,210 $4,526 $4,526 Licenses/Permits $1,902,720 $1,712,448 $152,218 $19,027 $19,027 Interest and Dividends $144,062 $129,656 $11,525 $1,441 $1,441 Fines/Forefeits $3,433 $3,090 $275 $34 $34 Misc. $33,140 $29,826 $2,651 $331 $331 State Aid Education Grant $3,565,896 $3,565,896 $0 $0 $0 Intergovernmental $399,484 $359,536 $31,959 $3,995 $3,995 Highway Block Grant $212,378 $191,140 $16,990 $2,124 $2,124 State and Federal Forest Land $69 $0 $0 $69 $0 FEMA $22,564 $20,308 $1,805 $226 $226 Conservation Grant $7,060 $0 $0 $7,060 $0 Nonexpendable Trust Fund $12,246 $11,021 $980 $122 $122 Total $20,307,226 $18,620,366 $1,338,177 $181,412 $167,271 7 Figures for the Revenues and Expenditures (Appendices A and B) were taken from the 2002 Town of Pelham, NH Annual Town Report Page 16

APPENDIX B Expenditures by Land Use Type Expenditure Total Residential (90%) Commercial/ Industrial (8%) Current Use (1%) Conservation and other Non- Taxable Land (1%) General Gov't. $1,159,704 $1,043,734 $92,776 $11,597 $11,597 Police $1,345,560 $1,211,004 $107,644 $13,456 $13,456 Fire $608,664 $547,798 $48,692 $6,087 $6,087 Health $40,898 $36,808 $3,272 $409 $409 Sanitation $484,103 $484,103 $0 $0 $0 Highways $558,669 $502,802 $44,693 $5,587 $5,587 Welfare $13,534 $13,534 $0 $0 $0 Assessments $38,752 $34,876 $3,100 $388 $388 Debt & Interest $126,534 $113,881 $10,123 $1,265 $1,265 Cemetery $79,895 $79,895 $0 $0 $0 Patriotic Purposes $4,565 $4,565 $0 $0 $0 Library $160,015 $160,015 $0 $0 $0 Senior Citizens $49,865 $49,865 $0 $0 $0 Parks and Rec. $172,956 $172,956 $0 $0 $0 Cable TV $39,305 $39,305 $0 $0 $0 Conservation $15,524 $0 $0 $0 $15,524 School $13,712,425 $13,712,425 $0 $0 $0 County Taxes $1,318,665 $1,186,799 $105,492 $13,187 $13,187 Total $19,929,633 $19,394,366 $415,796 $51,976 $67,500 Page 17