American Institute of Certified Planners (AICP) Practice Exam

Which fiscal impact analysis method varies impact based on development expectations?

1. Fixed Per Capita Method

2. Disaggregated Per Capita Method

3. Adjusted Per Capita Method

4. Average Per Capita Method

The correct answer is: Adjusted Per Capita Method

The Adjusted Per Capita Method is correct because it involves taking into account varying impacts that development might have depending on specific expectations or characteristics of a proposed project. This method allows planners to adjust the per capita costs or revenues associated with different types of developments, providing a more nuanced analysis that reflects the unique attributes of each situation. For example, if a particular development project is expected to generate more traffic or require more public services than the average project, the Adjusted Per Capita Method can modify the projections to account for these anticipated impacts. This adaptability makes it a valuable tool for conducting fiscal impact analyses in diverse planning scenarios. The other methods mentioned do not adjust based on development expectations to the same extent. The Fixed Per Capita Method uses a set cost per capita without differentiation for specific projects, whereas the Disaggregated Per Capita Method may provide a breakdown but still may not reflect the variability in expected development impacts as effectively as the Adjusted Per Capita Method. The Average Per Capita Method, similar to the Fixed method, calculates an average without finer adjustments for projects, limiting its responsiveness to specific project characteristics.