Opportunity Opportunity Knocks­ Knocks­ Open Space as Open Space as aaCommunity Community Investment Investment By Michael Frank 85 Old Dublin Pike, Doylestown, PA 18901 (215) 345-7020 * Fax (215) 345-4328 heritageconservancy.org This brochure was designed by Cross Keys Advertising & Marketing, Inc., Doylestown, PA Opportunity Opportunity A Knocks­ Knocks­ cknowledgements This Project was made possible through a legislative initia- tive grant from Representative Charles T. McIlhinney Jr. This Project was financed by a grant from the Open Space as Commonwealth of Pennsylvania, Department of Community Open Space as and Economic Development aCommunity aCommunity Investment Investment By Michael Frank CopyrightŠ 2000 by Heritage Conservancy. All rights reserved. 1 2 ReferencesAssociation of New Jersey Environmental Commissions, Open Space is a Good Investment: The Financial Argument for Open Space Preservation , Mendham, N.J. O 1 pportunity Knocks: Community Investments in Land For decades, people in suburban and rural places have discussed, studied, argued and fought for ways to keep some of the land in their communities open and undeveloped. Central Bucks School District, CB Insight, Spring 1994, Volume 4, Issue 2. While zoning techniques, such as cluster development and transferable development ...many of rights, have had some success, there are areas where development is best avoided rather Central Bucks School District, CB Insight, Spring 1998. than moved around. Lively discussion has also focused on the changing quality of life the costs of and community character. The debate approaches an emotional level when residents and The Chronicle of Philanthropy , "Stemming the Tide of Sprawl: Rampant Growth is No business owners, both lifelong and newcomers, find their municipal and school district Longer Seen as Just and Environmental Issue," February 11, 1999. development tax bills increasing to pay for road improvements, additional police personnel, new schools and other services and facilities that rapid development and sprawl bring. The Chronicle of Philanthropy , "Preserving Open Space for the Ages: As Land Trusts are borne Win Broad Support, They Grapple with New Challenges," July 29, 1999. Matters related to open space, farmland, community character, quality of life, taxes and by the development are all intertwined. Municipal and school district officials in Bucks County, Delaware Valley Regional Planning Commission, The Future of First Generation Suburbs as well as areas throughout the nation, have realized that many of the costs of develop- in the Delaware Valley Region , Philadelphia, Pa., December 1998. community ment, particularly in areas of rapid change, are borne by the community rather than the developer. In particular, residential development requires more services than it produces Frank, Michael, "Money Saved if Land Not Developed," Reading Eagle , in tax revenues to pay for services. Public school systems, which take the biggest bite of rather than December 31, 1997. local tax dollars, are directly affected by the location, amount, type and timing of devel- opment. In addition to the qualitative aspects of preserving open space and farmland, the Frank, Michael, "Buy Land ­ Buy Schools; How Bucks County Does It," Springs & there is a fiscal side which should be addressed. Sinks, ClearWater Conservancy, May 1999. developer. Charles Baker, former president and member of the Central Bucks School Board, has said Kelsey, Timothy W., Fiscal Impacts of Different Land Uses: The Pennsylvania it is important to take a business approach to the management of public school systems. Experience, Penn State Cooperative Extension, University Park, Pa., 1997. A successful business cannot operate properly by just increasing the price of the product or service (raising public school taxes). Nor can a business survive by reducing the Land Trust Alliance, Voters Invest in Parks and Open Space: 1998 Referenda Results , quality of the product or service provided to the client (eliminating school programs or Washington, DC, 1999. increasing class sizes). It's important to control demands on the cost side of the equa- tion. By buying land or conservation easements to reduce the number of new homes The New York Times, "Town Finds Rare Way to Protect Farms: Tax," and children who enter the system, costs can be better managed. September 11, 1994. The Penn State Cooperative Extension published the results of several studies that quan- Pennsylvania Department of Environmental Resources and Pennsylvania Department of tified the relative costs of development patterns. Timothy W. Kelsey, associate professor C o n s e rvation and Natural Resources, L e a rning About Land: A Guide for Educators , 1999. of Agricultural Economics, analyzed the relative governmental costs and The Philadelphia Inquirer , "Of Tax Cuts, and Cities, and the Effects of Suburban tax revenues of different land uses in Sprawl," May 24, 1999. several townships throughout Pennsylvania. Residential develop- The Philadelphia Inquirer , "Area Legislators Join to Slow Suburban Sprawl, City Flight," ment costs much more for municipal June 30, 1999. and school district services than farming, commercial and industrial land uses. By far, agriculture contributes more than it takes in t e rms of governmental serv i c e s . 2 B 1 1 uy Schools ­ Buy Open Space: having other financial options is important. The ability to sell the land's development A dollar Bucks County Experience value and hold on to the ground is an important option for landowners. Having publicly financed open space funds available gives municipalities the ability to offer this option to In June of 1994, about 70 people met at Delaware Valley College for a seminar titled interested landowners. spent to ...if a "Why We Can't Say NO to Development." Much of the discussion focused on how much current homeowners and businesses pay through increased taxes to accommodate the A policy to acquire land or development rights should be resolved by the community purchase community costs of new development. Particular emphasis was given to school costs. However, one before a decision on a key piece of land must be made. In more rural communities, it speaker, a lawyer who represents developers, reminded everyone that a piece of unde- would be important to have money already approved to purchase land or development land or doesn't want veloped land is a valuable asset that belongs to someone. It may be a farmer's retire- rights. For more developed communities, it would be equally important to have ready ment program or the means to finance his kids' college educations. Land is a basic part money available to purchase parcels in the remaining open parts of the community or development of the product provided to a developer's customer. He said it is fundamentally unfair for to see a for properties needed for specific public purposes. municipal officials to fool around with zoning techniques that reduce the value of that rights asset. The attorney charged the group that, if a community doesn't want to see a piece Many areas of the Commonwealth are experiencing significant development pressures. piece of land of land developed, the community should find a way to buy it. It is important that municipalities identify goals related to the conservation of land avoids resources and consider the impacts of development on community services, particularly developed, In response to the attorney's challenge, relevant numbers were collected and analyzed. the school systems. Help may be provided by county planning commissions, well In the Central Bucks School District's newsletter, CB Insight, Spring 1994, it was report- established conservation organizations like Heritage Conservancy, or community greater and the ed that the cost to educate a public school student was $7,300 per year and it was planning consultants. In many communities, capable and interested residents would be expected that each new home would produce, on average, about one additional public able to collect the necessary information and prepare an evaluation that would quantify repeated community school student. The average new house generated $2,300 in real estate tax revenues the relationship between the costs of new development and the costs to purchase land and $400 in earned income taxes for a total of $2,700. As such, there was an annual or conservation easements. For those communities under development pressure, timing costs of should find shortfall of $4,600 per household between the taxes it generated and the costs to the is most important. These matters should be evaluated before opportunities to protect school district. The shortfall must be made up from other sources of revenue, such as important lands are lost. municipal a way to increased taxes spread over all in the community. It is important to understand that the purchase of land or development rights will not and school It was also found that the approximate cost to purchase an acre of undeveloped farm- buy it. stop further development or the rising cost of education, but it will blunt the economic land in the Central Bucks area was $16,000 and the price of a conservation easement or impacts of rapid development and protect valued community assets. A dollar spent to district development right was about $11,000 per acre. These figures were derived from purchase land or development rights avoids greater and repeated costs of municipal and appraisals prepared for the Bucks County Agricultural Land Preservation Board in the school district services. Children from new homes will need to be educated. Over all, services. second half of 1994 for raw, unimproved land in Buckingham Township. conservation of land will complement new development. Both development and preser- vation have places in the future of our communities. It is this balance that is important. The evaluation lead to the conclusion that the community could choose to: 1) raise taxes to make up the shortfall for the ever increasing number of Land preservation is not an extravagant expense. It's an investment in your community. school students, 2) raise taxes to invest in the preservation of land and thereby avoid some of the future shortfall in public school costs, or 3) try to balance the two. Spend money for land. Spend money for schools. The community had choices. In 1998, the revenue and cost numbers were updated. In the Spring 1998 issue of CB Insight, it was reported that it costs about $8,615 per year to educate a public school student in the Central Bucks School District, based on the 1996-97 school year. The average house generated $2,913 in taxes. Therefore, the shortfall per household was about $5,702 per year, an increase of $1,102 in four years. It should be noted that the short- fall for a new home is much less in the first year due to the transfer tax that is collected. 1 0 3 C o n c e r n No. 9 ­ Taxpayers never vote to increase taxes It was estimated that each home will produce 0.83 additional public school students on Finally, there is always concern with raising taxes for any purpose. However, voters The average. Homes make up about 85 percent of the tax base in the Central Bucks School have approved referendums for land preservation in many areas. Farmland preservation District. Fa r m l a n d and open space protection are accepted and understood public purposes. community's The value or potential purchase price of land varies substantially, based on many p r e s e r v a t i o n factors. For the purposes of these calculations, $16,500 per acre was used for the Examples of Voter Approval Rates costs related purchase of land and $12,933 was used for the purchase of the agricultural easements and open Municipality Ballot Bond Amount Approval Rate (development rights). These figures are averages derived from appraisals in 1998 pre- Buckingham Nov. 1995 $ 4.0 million 82 percent to schools pared for the Bucks County Agricultural Lands Preservation Board for raw, unimproved space Buckingham Nov. 1999 $ 9.5 million 85 percent farmland in Buckingham, Plumstead and Warrington townships. Lower Makefield Nov. 1998 $ 7.5 million 71 percent from 85 p r o t e c t i o n Solebury Nov. 1996 $ 4.0 million 93 percent On a hypothetical 100-acre farm, which is zoned for one house per acre, it is reasonable Solebury Nov. 1999 $10.0 million 90 percent homes on a to anticipate that 85 new homes might be constructed. The net public school costs to the Chester County Nov. 1997 $50.0 million 81 percent community would be the number of houses (85) times the number of public school are accepted 100-acre students per household (0.83) times the annual shortfall per house ($5,702). The com- These bond measures have been equated to the resolve of a family to take out a mort- munity's costs related to schools from 85 homes on a 100-acre farm would be about and gage on a home. The family finds a home they want and can afford. They enjoy it and farm would $402,276 per year. u n d e r s t o o d pay for it over time. In like manner, the community decides to pursue a quality of life it wants for the future. If this quality includes open space or recreation land, the communi- The cost, on average, to the community to purchase the 100-acre farm would be be about ty should pay for it while the residents benefit from it. In a real sense, the community is $1,650,000. Therefore, it would take about 4.10 years to break even ($1,650,000 public taking greater control of its future. Often, the annual cost per family is very low. Act divided by $402,276). 153 of 1996 permits payments to be made over a multi-year period, thereby reducing $402,276 per p u r p o s e s . the property owner's annual capital gains tax and the payments by the township. The costs, on average, to the community to purchase the agricultural easements year. (development rights) on the 100-acre farm would be $1,293,300. Therefore, it would take about 3.21 years to break even ($1,293,300 divided by $402,276). R Development of the Proverbial "100-Acre Farm" ­ Costs to the Community ural and Urban: Areas of Mutual Interest 85 New Homes A word needs to be noted about related conditions in cities and older suburbs. In the last x 0.83 Public School Students Per Home several decades, many middle and upper income families have moved to the suburbs 70.55 Public School Students in the Subdivision and rural areas. Businesses, industries and jobs followed, which has caused financial x $5,702 Shortfall Per Household per year stress in urban areas and older suburbs. Possibly, the preservation of land in the outer, $402,276 Shortfall from the 85 New Homes per year rural areas may make reuse of the older communities more attractive. Reinvestment in these communities would be better than the abandonment of existing infrastructure for new, expensive services and facilities in rural areas. Increased interest in the older areas Preservation of the Proverbial "100-Acre Farm" ­ Savings for the Community may relieve some level of pressure on the rural landscape. For all these areas, the fac- Purchase the Land for Community Use tors, which will determine the quality of life in the long term, are inextricably related. 100 Acres Purchased x $16,500 Average Cost Per Acre ­ Fee Simple Purchase $1,650,000 Purchase Price of the Farm $1,650,000 / $402,276 (shortfall) = 4.10 year break even Seize the Opportunity Preservation of the Proverbial "100-Acre Farm" ­ Savings for the Community In the development history of many municipalities, there is a 20- or 25-year period of Purchase the Conservation Easements rapid change when a large amount of land is converted from open space and farm uses to developed uses. It seems that pressure to sell takes place in the years before rapid 100 Acres Purchased x $12,933 Average Cost Per Acre ­ Easements Purchase development actually begins as developers compete to buy properties or options to buy $1,293,300 Purchase Price of the Easements land. Farmers have said this pressure to sell causes uncertainty among these owners of larger properties. Sell out or hold onto the land? Obviously, this is a grand opportunity to $1,293,300 / $402,276 (shortfall) = 3.21 year break even those who want to sell. For those who want to hold onto their land or continue to farm, 4 9 Obviously, these are very simple illustrations. They do not include appraisal fees, closing preservation. Usually, the price increases as the resource becomes scarce. Even if the ...many costs and debt service (interest payments) related to the land purchases. They also do value of the remaining land escalates beyond the financial capabilities of the municipali- not address the increasing costs of public education systems and debt service related to ties, the value to the community in terms of goals achieved and the saved educational building or expanding schools. While it is appropriate to debate the amount of the spread costs from the land preserved will still be greater than if all the land had been developed. farmers are between the school system costs and land preservation costs, it is clear that the cost to educate a public school student is more than the average home provides in school C o n c e r n land rich No. 5 ­ Tax revenues from nonresidential uses will make up the shortfalls district revenues; and the balance is made up by others in the community. If land or It has been said that the tax revenues from nonresidential land uses will cover the short- conservation easements are purchased, the shortfalls will be reduced. It is important to Bucks falls in school costs resulting from residential development. It is true that nonresidential but cash consider that, after those land purchases are paid off, the community costs end. For all uses pay a much larger share of school cost than might otherwise be allocated to such uses. However, nonresidential uses need other municipal services, such as road improve- poor...an ments and police services, that offset portions of the advantage to the school district. It also has been noted that, with the development of major nonresidential uses, the important demand for higher density housing increases which may result in a related increase in public school enrollment and thereby offset the revenue advantage from the nonresiden- option would tial development. There are qualitative aspects in this consideration also. It is unlikely been Opractical purposes, the shortfall related to school costs will continue as long as the County homes exist. taxpayers have not ther Costs of Development that every municipality would want or should have a mega-mall, a huge office park or be to sell Other references to the relationship between residential development and the cost of an industrial complex. public services are found in impact statements submitted with development applications. reluctant to C o n c e r n development As part of land development submissions, Solebury Township requires fiscal impact No. 6 ­ Financial ability of rural communities is too small statements. The demographic characteristics of Solebury Township are that, from a vote for In many rural communities, it is felt that the tax base is so small that no amount of rights and 4-bedroom single-family house, it is anticipated there will be 0.88 school-age children money could be compiled to purchase anything meaningful. However, a small annual per home and only 77 percent will attend the public school system. About 23 percent bond tax will establish a fund that will grow or be ready money to respond to the opportunity continue to of school-age children attend private or parochial school. to purchase development rights at the right price or to have match money for a program referendums funded by another level of government. Another consideration related to rural areas is farm the Based on the accepted standards and procedures included in the Development Impact the comparatively lower land values and it may be advantageous to purchase easements Assessment Handbook (Burchell, Listokin, Dolphin, et.al, Urban Land Institute, 1997), a to preserve before these values begin to escalate. fiscal impact evaluation was submitted for a development of 168 single-family homes on land. a 157-acre site. The applicant's report stated there would be an estimated net cost to the C o n c e r n No. 7 ­ State supplements will cover the shortfalls county government of $32,038.36 per year, based upon 1998 dollars. The net cost to open space. Others have said that all or part of the shortfall, the difference between the cost to the township would be $65,352.63 per year and the annual deficit to the school district educate a public school student and the tax revenues received from the average house- was estimated to be $686,586.23. hold, comes from state supplements. However, revenue from the state is not free money. These funds come from taxes paid by homeowners and businesses throughout the Another study submitted for the development of 228 single-family homes and 34 town- Commonwealth. In many areas, the amount sent to the state is more than the amount houses on a 256-acre site in Solebury Township forecasted an annual deficit to the B returned to local areas. township of $14,035.00 and to the school district of $816,609.00. C o n c e r n No. 8 ­ Only rich landowners and affluent communities will benefit It has also been charged that land preservation using public funds is an elitist concept that will benefit only ucks County Bonds and Other Appropriations rich landowners or affluent communities. However, many farmers are land rich but cash poor and these Bucks County taxpayers have not been reluctant to vote for bond referendums to programs keep their options open. Although there is preserve open space. Several communities have approved real estate taxes or earned often a developer to sell to, an important option would income taxes for these purposes. In several situations, municipal officials, understanding be to be able to sell development rights and continue to the public support for the preservation of critical properties, have appropriated money in farm the land. In addition, many who are impacted the their budgets without referendums. While not all such initiatives were undertaken based most by rapidly rising school taxes are the elderly and on the rationale that there would be savings in the costs of public services, a substantial those who live on modest, fixed incomes. Control of amount of money has been approved for open space purposes in Bucks County, as school costs is as important in areas where households inventoried in the following table. Two county initiatives are also listed. typically have modest incomes. 8 5 atters of Concern M Municipal Level Amount Raised Date Approved ...a Several issues or concerns have been raised and deserve discussion before there is a Bond Issues Bedminster Township $2.5 million 11/97 vote to raise money for open space and farmland protection. Buckingham Township 4.0 million 11/95 substantial 9.5 million 11/99 C o n c e r n Doylestown Township 3.75 million 6/91 No. 1 ­ Development won't be stopped Lower Makefield Township 7.5 million 1/98 amount of It is certain that these land purchases will not stop development. Similar efforts in 7.5 million 11/98 A Lancaster and Chester Counties in Pennsylvania, Howard County in Maryland, and in Middletown Township 0.325 million 1998 money has the Old Mission Peninsula, Michigan have not stopped development. That would be an New Britain Township 2.5 million 11/96 m u n i c i p a l i t y Newtown Township 1.1 million 1/98 unrealistic goal. Land and development rights purchases have provided these communi- 1.65 million 1/98 been ties with a means to achieve land preservation goals and to become active participants Northampton Township 5.0 million 5/98 may choose in the use of important pieces of real estate. For the farmer or landowner who wants or Plumstead Township 4.0 million 4/96 Solebury Township 4.0 million 4/96 needs to sell, often the only option is to sell to someone who will develop the land. approved for 10.0 million 11/99 to purchase There are few, if any, other alternatives. These programs provide real options for munici- Upper Makefield Township 6.0 million 11/96 palities and for landowners, rather than accepting the resolution that all land in their Warrington Township 2.1 million 5/95 open space Warwick Township 1.5 million 4/00 land or communities will, in time, be fully developed. Wrightstown Township 1.5 million 11/95 purposes in Total Municipal Bond Issues: $74.425 million just the C o n c e r n No. 2 ­ It's too little and too late Concern has been expressed that too little land will be preserved. If we can accept that Real Estate or Income Taxes Bucks d e v e l o p m e n t development will not be stopped and that all remaining undeveloped land will not be Milford Township 2 mills real estate tax estimated to produce $42,000 to $44,000 preserved, it is possible to focus on what can be achieved rather than what cannot. County. per year 11/97 There are notable examples of municipalities that have protected significant portions of rights to East Rockhill Township 0.125 percent earned income their community. Buckingham Township, Bucks County, has set a goal of preserving 20 tax estimated to produce $80,000 per year 5/99 percent of its land area. By the end of 1999, 2,850 acres had been preserved through achieve the New Britain Township 0.125 percent earned income actions of the county, the township and private citizens. Similar programs can be tax estimated to produce designed to preserve key pieces of ground, such as a great site for active or passive $345,000 per year 4/00 goals of the recreation uses, a unique stand of trees, key farms, a historic site, or a greenbelt around West Rockhill Township 0.125 percent earned income tax estimated to produce a village that is a special example of a community's past. It might be determined to pre- $130,000 per year 4/00 c o m m u n i t y . serve as much land as possible with the money available or focus on more expensive land located in the path of development. A municipality may choose to purchase land or County Level Open Space Bonds $3.5 million 11/94 just the development rights to achieve the goals of the community. Always, it's impor- 59.0 million 5/96 tant for program goals to be identified and promoted so that the community's residents Total County Bond Issues: $62.5 million and taxpayers will understand the purpose of such a program. The total benefit is often greater than the dollar amounts noted above. Some of these C o n c e r n No. 3 ­ Developers will jump to other properties funds will be leveraged with grants from other governmental entities. For example, the There is also concern that if Parcel A is preserved, the developers will simply go buy Bucks County Agricultural Lands Preservation Board puts up about 25 percent of the Parcel B. First of all, if Parcel A is important to the community, the preservation of that cost to purchase farmland conservation easements and the Pennsylvania Department of piece has merit regardless of the development of B. However, reality is that the owners Agriculture, Bureau of Farmland Protection, matches with 75 percent. The Pennsylvania Department of Conservation and Natural Resources provides up to 50 percent of the cost of Parcel B or C or D may not be ready to sell. The owner of Parcel A may need to sell of open space purchases. Foundation funds and money from other private interests, for a variety of reasons. That owner may only need to sell the development rights, such as adjoining landowners, have been contributed to ensure land preservation proj- which could keep the land open and in his or her possession. Over time, the owners of ects are successful. Organizations like Heritage Conservancy, with the experience and Parcels B, C and D may want to have the option to participate in the land preservation staff talent needed to coordinate these efforts, have assisted municipalities in stretching program. the dollars raised locally to the maximum benefit of the community and taxpayers. It needs to be noted that bond referendums are not always accepted by the taxpayers. C o n c e r n No. 4 ­ Land and easement prices will become too high Referendums were not passed in three Bucks County municipalities in recent years and one failed in Chester County. Often the disagreement involves who will bear the tax burd e n . Another concern is that, as land or development rights are acquired, the remaining land Wage earners pay when an earned income tax is used. Farmers pay a portion of a general will increase in value and become too expensive for further public purchases. However, real estate tax which goes to buy their farmland. The method of financing and the amount the land cost may increase whether the remaining land is developed or purchased for of the earned income tax or level of debt are always important issues to be addre s s e d . 6 B 7 onds and Other Appropriations in Areas Act 153 Outside of Bucks County Dillon's Rule Although the numbers noted are significant, the public's willingness to raise money In 1868, Justice John F. Dillon established a doctrine which described municipal broadened through taxation for open space protection is not unique to Bucks County or governments as "mere tenants at the will of the legislature." This doctrine has Pennsylvania. The Land Trust Alliance publishes a report card on ballot measures. been reaffirmed in judicial decisions in 1870, 1899 and 1978. As such, a munici- the ability N a t i o n w i d e , Nationwide, voters passed 84 percent of 148 state and local ballot initiatives for more pality may exercise those powers, and no others, that are granted in express than $5 billion in public funding for open space preservation purposes in 1998. In words, those necessary or fairly implied to express powers, or those essential to the declared objectives and purposes; not simply convenient, but indispensable. of local voters 1999, 90% of the 102 referenda passed. Pennsylvania is a "Dillon's Rule" state. Other referendums of note in Pennsylvania include those listed in the following table. governments passed 84 Municipal Level Amount Raised Date Approved to acquire percent of Centre County In 1996, Act 153 was enacted as an amendment to Act 442 of 1967. This law Halfmoon Township 2 mills real estate tax to broadened the ability of local governments to acquire interests in real property (including interests in 148 state raise $100,000 per year 11/99 development rights) for open space purposes. These purposes include recreation, scenic Chester County resources, historic resources, and the conservation of natural resources, including real estate and local East Bradford Township 0.125 percent earned income tax 6/98 farmland, forests and pure and adequate water supply. Local governments may levy a East Marlborough Township 0.2 mills real estate tax to raise tax on real estate or earned income above the existing limits or the Local Government property for $95,000 per year 11/99 ballot Unit Debt Act in order to purchase development rights, but only if they first receive Willistown Township 0.125 percent earned income tax 11/99 referendum approval from the voters. The law says the tax imposed may not exceed Delaware County open space the rate or limit authorized by the referendum. initiatives Nether Providence Township $2.8 million 1996 Middletown Township $5.4 million 1987 Properties may be acquired in fee and resold after restrictive easements or covenants purposes. for more Radnor Township 0.25 percent realty transfer tax for have been placed on the land. Property interests may be purchased on an installment open space or park improvement fund expected to raise $335,000 per year 1995 or deferred basis, but may not be acquired through condemnation. than $10.0 million 1996 Montgomery County Land or development rights to be purchased must have been identified in a resource, $5 billion Lower Gwynedd Township $2.0 million 1994 re c reation or land use plan recommended by the planning commission of the municipality Lower Merion Township $1.885 million 1994 in which the property is located and that plan must first be adopted by the governing in public Lower Providence Township $3.1 million (land) 1994 body. If the community does not have a planning commission, the process relies on a Whitpain Township $10.0 million 10/99 similar plan prepared by the county planning commission and adopted by the municipal funding for County Level governing body. Berks County $30 million 2/99 open space Chester County $50 million 11/97 In the event that the governing body decides to dispose of acquired land or development $75 million 4/99 rights, these interests must first be offered to the original property owner at the original Monroe County $25 million 1998 price paid by the local government. If the offer to the original property owner is not preservation Montgomery County $100 million 10/93 accepted within 90 days, the property interests may be sold in the manner provided by law. The law also requires that the governing body first obtain referendum approval of purposes.S the voters to dispose of the land or development rights. In addition, for the first time, this act authorizes local school districts to freeze the millage tatutory Authority for Raising Money on lands whose development potential has been removed. for Open Space Act 138 of 1998 was enacted as an amendment to the Agricultural Area Security Law, Specific authority has been enacted in Pennsylvania to permit municipalities to purchase Act 43 of 1981. This act authorizes local governments to purchase agricultural conser- land or easements for the preservation of open space and farmland. Other than munici- vation easements to preserve farmland in established agricultural security areas. Local palities which have adopted home rule charters, Pennsylvania municipalities have no governments may undertake this activity on their own or in cooperation with a county inherent right of local self government and must rely on those authorized activities or the Commonwealth as joint owners. The act permits local governments to incur debt granted by the legislature. to purchase these easements. 6 B 7 onds and Other Appropriations in Areas Act 153 Outside of Bucks County Dillon's Rule Although the numbers noted are significant, the public's willingness to raise money In 1868, Justice John F. Dillon established a doctrine which described municipal broadened through taxation for open space protection is not unique to Bucks County or governments as "mere tenants at the will of the legislature." This doctrine has Pennsylvania. The Land Trust Alliance publishes a report card on ballot measures. been reaffirmed in judicial decisions in 1870, 1899 and 1978. As such, a munici- the ability N a t i o n w i d e , Nationwide, voters passed 84 percent of 148 state and local ballot initiatives for more pality may exercise those powers, and no others, that are granted in express than $5 billion in public funding for open space preservation purposes in 1998. In words, those necessary or fairly implied to express powers, or those essential to the declared objectives and purposes; not simply convenient, but indispensable. of local voters 1999, 90% of the 102 referenda passed. Pennsylvania is a "Dillon's Rule" state. Other referendums of note in Pennsylvania include those listed in the following table. governments passed 84 Municipal Level Amount Raised Date Approved to acquire percent of Centre County In 1996, Act 153 was enacted as an amendment to Act 442 of 1967. This law Halfmoon Township 2 mills real estate tax to broadened the ability of local governments to acquire interests in real property (including interests in 148 state raise $100,000 per year 11/99 development rights) for open space purposes. These purposes include recreation, scenic Chester County resources, historic resources, and the conservation of natural resources, including real estate and local East Bradford Township 0.125 percent earned income tax 6/98 farmland, forests and pure and adequate water supply. Local governments may levy a East Marlborough Township 0.2 mills real estate tax to raise tax on real estate or earned income above the existing limits or the Local Government property for $95,000 per year 11/99 ballot Unit Debt Act in order to purchase development rights, but only if they first receive Willistown Township 0.125 percent earned income tax 11/99 referendum approval from the voters. The law says the tax imposed may not exceed Delaware County open space the rate or limit authorized by the referendum. initiatives Nether Providence Township $2.8 million 1996 Middletown Township $5.4 million 1987 Properties may be acquired in fee and resold after restrictive easements or covenants purposes. for more Radnor Township 0.25 percent realty transfer tax for have been placed on the land. Property interests may be purchased on an installment open space or park improvement fund expected to raise $335,000 per year 1995 or deferred basis, but may not be acquired through condemnation. than $10.0 million 1996 Montgomery County Land or development rights to be purchased must have been identified in a resource, $5 billion Lower Gwynedd Township $2.0 million 1994 re c reation or land use plan recommended by the planning commission of the municipality Lower Merion Township $1.885 million 1994 in which the property is located and that plan must first be adopted by the governing in public Lower Providence Township $3.1 million (land) 1994 body. If the community does not have a planning commission, the process relies on a Whitpain Township $10.0 million 10/99 similar plan prepared by the county planning commission and adopted by the municipal funding for County Level governing body. Berks County $30 million 2/99 open space Chester County $50 million 11/97 In the event that the governing body decides to dispose of acquired land or development $75 million 4/99 rights, these interests must first be offered to the original property owner at the original Monroe County $25 million 1998 price paid by the local government. If the offer to the original property owner is not preservation Montgomery County $100 million 10/93 accepted within 90 days, the property interests may be sold in the manner provided by law. The law also requires that the governing body first obtain referendum approval of purposes.S the voters to dispose of the land or development rights. In addition, for the first time, this act authorizes local school districts to freeze the millage tatutory Authority for Raising Money on lands whose development potential has been removed. for Open Space Act 138 of 1998 was enacted as an amendment to the Agricultural Area Security Law, Specific authority has been enacted in Pennsylvania to permit municipalities to purchase Act 43 of 1981. This act authorizes local governments to purchase agricultural conser- land or easements for the preservation of open space and farmland. Other than munici- vation easements to preserve farmland in established agricultural security areas. Local palities which have adopted home rule charters, Pennsylvania municipalities have no governments may undertake this activity on their own or in cooperation with a county inherent right of local self government and must rely on those authorized activities or the Commonwealth as joint owners. The act permits local governments to incur debt granted by the legislature. to purchase these easements. 8 5 atters of Concern M Municipal Level Amount Raised Date Approved ...a Several issues or concerns have been raised and deserve discussion before there is a Bond Issues Bedminster Township $2.5 million 11/97 vote to raise money for open space and farmland protection. Buckingham Township 4.0 million 11/95 substantial 9.5 million 11/99 C o n c e r n Doylestown Township 3.75 million 6/91 No. 1 ­ Development won't be stopped Lower Makefield Township 7.5 million 1/98 amount of It is certain that these land purchases will not stop development. Similar efforts in 7.5 million 11/98 A Lancaster and Chester Counties in Pennsylvania, Howard County in Maryland, and in Middletown Township 0.325 million 1998 money has the Old Mission Peninsula, Michigan have not stopped development. That would be an New Britain Township 2.5 million 11/96 m u n i c i p a l i t y Newtown Township 1.1 million 1/98 unrealistic goal. Land and development rights purchases have provided these communi- 1.65 million 1/98 been ties with a means to achieve land preservation goals and to become active participants Northampton Township 5.0 million 5/98 may choose in the use of important pieces of real estate. For the farmer or landowner who wants or Plumstead Township 4.0 million 4/96 Solebury Township 4.0 million 4/96 needs to sell, often the only option is to sell to someone who will develop the land. approved for 10.0 million 11/99 to purchase There are few, if any, other alternatives. These programs provide real options for munici- Upper Makefield Township 6.0 million 11/96 palities and for landowners, rather than accepting the resolution that all land in their Warrington Township 2.1 million 5/95 open space Warwick Township 1.5 million 4/00 land or communities will, in time, be fully developed. Wrightstown Township 1.5 million 11/95 purposes in Total Municipal Bond Issues: $74.425 million just the C o n c e r n No. 2 ­ It's too little and too late Concern has been expressed that too little land will be preserved. If we can accept that Real Estate or Income Taxes Bucks d e v e l o p m e n t development will not be stopped and that all remaining undeveloped land will not be Milford Township 2 mills real estate tax estimated to produce $42,000 to $44,000 preserved, it is possible to focus on what can be achieved rather than what cannot. County. per year 11/97 There are notable examples of municipalities that have protected significant portions of rights to East Rockhill Township 0.125 percent earned income their community. Buckingham Township, Bucks County, has set a goal of preserving 20 tax estimated to produce $80,000 per year 5/99 percent of its land area. By the end of 1999, 2,850 acres had been preserved through achieve the New Britain Township 0.125 percent earned income actions of the county, the township and private citizens. Similar programs can be tax estimated to produce designed to preserve key pieces of ground, such as a great site for active or passive $345,000 per year 4/00 goals of the recreation uses, a unique stand of trees, key farms, a historic site, or a greenbelt around West Rockhill Township 0.125 percent earned income tax estimated to produce a village that is a special example of a community's past. It might be determined to pre- $130,000 per year 4/00 c o m m u n i t y . serve as much land as possible with the money available or focus on more expensive land located in the path of development. A municipality may choose to purchase land or County Level Open Space Bonds $3.5 million 11/94 just the development rights to achieve the goals of the community. Always, it's impor- 59.0 million 5/96 tant for program goals to be identified and promoted so that the community's residents Total County Bond Issues: $62.5 million and taxpayers will understand the purpose of such a program. The total benefit is often greater than the dollar amounts noted above. Some of these C o n c e r n No. 3 ­ Developers will jump to other properties funds will be leveraged with grants from other governmental entities. For example, the There is also concern that if Parcel A is preserved, the developers will simply go buy Bucks County Agricultural Lands Preservation Board puts up about 25 percent of the Parcel B. First of all, if Parcel A is important to the community, the preservation of that cost to purchase farmland conservation easements and the Pennsylvania Department of piece has merit regardless of the development of B. However, reality is that the owners Agriculture, Bureau of Farmland Protection, matches with 75 percent. The Pennsylvania Department of Conservation and Natural Resources provides up to 50 percent of the cost of Parcel B or C or D may not be ready to sell. The owner of Parcel A may need to sell of open space purchases. Foundation funds and money from other private interests, for a variety of reasons. That owner may only need to sell the development rights, such as adjoining landowners, have been contributed to ensure land preservation proj- which could keep the land open and in his or her possession. Over time, the owners of ects are successful. Organizations like Heritage Conservancy, with the experience and Parcels B, C and D may want to have the option to participate in the land preservation staff talent needed to coordinate these efforts, have assisted municipalities in stretching program. the dollars raised locally to the maximum benefit of the community and taxpayers. It needs to be noted that bond referendums are not always accepted by the taxpayers. C o n c e r n No. 4 ­ Land and easement prices will become too high Referendums were not passed in three Bucks County municipalities in recent years and one failed in Chester County. Often the disagreement involves who will bear the tax burd e n . Another concern is that, as land or development rights are acquired, the remaining land Wage earners pay when an earned income tax is used. Farmers pay a portion of a general will increase in value and become too expensive for further public purchases. However, real estate tax which goes to buy their farmland. The method of financing and the amount the land cost may increase whether the remaining land is developed or purchased for of the earned income tax or level of debt are always important issues to be addre s s e d . 4 9 Obviously, these are very simple illustrations. They do not include appraisal fees, closing preservation. Usually, the price increases as the resource becomes scarce. Even if the ...many costs and debt service (interest payments) related to the land purchases. They also do value of the remaining land escalates beyond the financial capabilities of the municipali- not address the increasing costs of public education systems and debt service related to ties, the value to the community in terms of goals achieved and the saved educational building or expanding schools. While it is appropriate to debate the amount of the spread costs from the land preserved will still be greater than if all the land had been developed. farmers are between the school system costs and land preservation costs, it is clear that the cost to educate a public school student is more than the average home provides in school C o n c e r n land rich No. 5 ­ Tax revenues from nonresidential uses will make up the shortfalls district revenues; and the balance is made up by others in the community. If land or It has been said that the tax revenues from nonresidential land uses will cover the short- conservation easements are purchased, the shortfalls will be reduced. It is important to Bucks falls in school costs resulting from residential development. It is true that nonresidential but cash consider that, after those land purchases are paid off, the community costs end. For all uses pay a much larger share of school cost than might otherwise be allocated to such uses. However, nonresidential uses need other municipal services, such as road improve- poor...an ments and police services, that offset portions of the advantage to the school district. It also has been noted that, with the development of major nonresidential uses, the important demand for higher density housing increases which may result in a related increase in public school enrollment and thereby offset the revenue advantage from the nonresiden- option would tial development. There are qualitative aspects in this consideration also. It is unlikely been Opractical purposes, the shortfall related to school costs will continue as long as the County homes exist. taxpayers have not ther Costs of Development that every municipality would want or should have a mega-mall, a huge office park or be to sell Other references to the relationship between residential development and the cost of an industrial complex. public services are found in impact statements submitted with development applications. reluctant to C o n c e r n development As part of land development submissions, Solebury Township requires fiscal impact No. 6 ­ Financial ability of rural communities is too small statements. The demographic characteristics of Solebury Township are that, from a vote for In many rural communities, it is felt that the tax base is so small that no amount of rights and 4-bedroom single-family house, it is anticipated there will be 0.88 school-age children money could be compiled to purchase anything meaningful. However, a small annual per home and only 77 percent will attend the public school system. About 23 percent bond tax will establish a fund that will grow or be ready money to respond to the opportunity continue to of school-age children attend private or parochial school. to purchase development rights at the right price or to have match money for a program referendums funded by another level of government. Another consideration related to rural areas is farm the Based on the accepted standards and procedures included in the Development Impact the comparatively lower land values and it may be advantageous to purchase easements Assessment Handbook (Burchell, Listokin, Dolphin, et.al, Urban Land Institute, 1997), a to preserve before these values begin to escalate. fiscal impact evaluation was submitted for a development of 168 single-family homes on land. a 157-acre site. The applicant's report stated there would be an estimated net cost to the C o n c e r n No. 7 ­ State supplements will cover the shortfalls county government of $32,038.36 per year, based upon 1998 dollars. The net cost to open space. Others have said that all or part of the shortfall, the difference between the cost to the township would be $65,352.63 per year and the annual deficit to the school district educate a public school student and the tax revenues received from the average house- was estimated to be $686,586.23. hold, comes from state supplements. However, revenue from the state is not free money. These funds come from taxes paid by homeowners and businesses throughout the Another study submitted for the development of 228 single-family homes and 34 town- Commonwealth. In many areas, the amount sent to the state is more than the amount houses on a 256-acre site in Solebury Township forecasted an annual deficit to the B returned to local areas. township of $14,035.00 and to the school district of $816,609.00. C o n c e r n No. 8 ­ Only rich landowners and affluent communities will benefit It has also been charged that land preservation using public funds is an elitist concept that will benefit only ucks County Bonds and Other Appropriations rich landowners or affluent communities. However, many farmers are land rich but cash poor and these Bucks County taxpayers have not been reluctant to vote for bond referendums to programs keep their options open. Although there is preserve open space. Several communities have approved real estate taxes or earned often a developer to sell to, an important option would income taxes for these purposes. In several situations, municipal officials, understanding be to be able to sell development rights and continue to the public support for the preservation of critical properties, have appropriated money in farm the land. In addition, many who are impacted the their budgets without referendums. While not all such initiatives were undertaken based most by rapidly rising school taxes are the elderly and on the rationale that there would be savings in the costs of public services, a substantial those who live on modest, fixed incomes. Control of amount of money has been approved for open space purposes in Bucks County, as school costs is as important in areas where households inventoried in the following table. Two county initiatives are also listed. typically have modest incomes. 1 0 3 C o n c e r n No. 9 ­ Taxpayers never vote to increase taxes It was estimated that each home will produce 0.83 additional public school students on Finally, there is always concern with raising taxes for any purpose. However, voters The average. Homes make up about 85 percent of the tax base in the Central Bucks School have approved referendums for land preservation in many areas. Farmland preservation District. Fa r m l a n d and open space protection are accepted and understood public purposes. community's The value or potential purchase price of land varies substantially, based on many p r e s e r v a t i o n factors. For the purposes of these calculations, $16,500 per acre was used for the Examples of Voter Approval Rates costs related purchase of land and $12,933 was used for the purchase of the agricultural easements and open Municipality Ballot Bond Amount Approval Rate (development rights). These figures are averages derived from appraisals in 1998 pre- Buckingham Nov. 1995 $ 4.0 million 82 percent to schools pared for the Bucks County Agricultural Lands Preservation Board for raw, unimproved space Buckingham Nov. 1999 $ 9.5 million 85 percent farmland in Buckingham, Plumstead and Warrington townships. Lower Makefield Nov. 1998 $ 7.5 million 71 percent from 85 p r o t e c t i o n Solebury Nov. 1996 $ 4.0 million 93 percent On a hypothetical 100-acre farm, which is zoned for one house per acre, it is reasonable Solebury Nov. 1999 $10.0 million 90 percent homes on a to anticipate that 85 new homes might be constructed. The net public school costs to the Chester County Nov. 1997 $50.0 million 81 percent community would be the number of houses (85) times the number of public school are accepted 100-acre students per household (0.83) times the annual shortfall per house ($5,702). The com- These bond measures have been equated to the resolve of a family to take out a mort- munity's costs related to schools from 85 homes on a 100-acre farm would be about and gage on a home. The family finds a home they want and can afford. They enjoy it and farm would $402,276 per year. u n d e r s t o o d pay for it over time. In like manner, the community decides to pursue a quality of life it wants for the future. If this quality includes open space or recreation land, the communi- The cost, on average, to the community to purchase the 100-acre farm would be be about ty should pay for it while the residents benefit from it. In a real sense, the community is $1,650,000. Therefore, it would take about 4.10 years to break even ($1,650,000 public taking greater control of its future. Often, the annual cost per family is very low. Act divided by $402,276). 153 of 1996 permits payments to be made over a multi-year period, thereby reducing $402,276 per p u r p o s e s . the property owner's annual capital gains tax and the payments by the township. The costs, on average, to the community to purchase the agricultural easements year. (development rights) on the 100-acre farm would be $1,293,300. Therefore, it would take about 3.21 years to break even ($1,293,300 divided by $402,276). R Development of the Proverbial "100-Acre Farm" ­ Costs to the Community ural and Urban: Areas of Mutual Interest 85 New Homes A word needs to be noted about related conditions in cities and older suburbs. In the last x 0.83 Public School Students Per Home several decades, many middle and upper income families have moved to the suburbs 70.55 Public School Students in the Subdivision and rural areas. Businesses, industries and jobs followed, which has caused financial x $5,702 Shortfall Per Household per year stress in urban areas and older suburbs. Possibly, the preservation of land in the outer, $402,276 Shortfall from the 85 New Homes per year rural areas may make reuse of the older communities more attractive. Reinvestment in these communities would be better than the abandonment of existing infrastructure for new, expensive services and facilities in rural areas. Increased interest in the older areas Preservation of the Proverbial "100-Acre Farm" ­ Savings for the Community may relieve some level of pressure on the rural landscape. For all these areas, the fac- Purchase the Land for Community Use tors, which will determine the quality of life in the long term, are inextricably related. 100 Acres Purchased x $16,500 Average Cost Per Acre ­ Fee Simple Purchase $1,650,000 Purchase Price of the Farm $1,650,000 / $402,276 (shortfall) = 4.10 year break even Seize the Opportunity Preservation of the Proverbial "100-Acre Farm" ­ Savings for the Community In the development history of many municipalities, there is a 20- or 25-year period of Purchase the Conservation Easements rapid change when a large amount of land is converted from open space and farm uses to developed uses. It seems that pressure to sell takes place in the years before rapid 100 Acres Purchased x $12,933 Average Cost Per Acre ­ Easements Purchase development actually begins as developers compete to buy properties or options to buy $1,293,300 Purchase Price of the Easements land. Farmers have said this pressure to sell causes uncertainty among these owners of larger properties. Sell out or hold onto the land? Obviously, this is a grand opportunity to $1,293,300 / $402,276 (shortfall) = 3.21 year break even those who want to sell. For those who want to hold onto their land or continue to farm, 2 B 1 1 uy Schools ­ Buy Open Space: having other financial options is important. The ability to sell the land's development A dollar Bucks County Experience value and hold on to the ground is an important option for landowners. Having publicly financed open space funds available gives municipalities the ability to offer this option to In June of 1994, about 70 people met at Delaware Valley College for a seminar titled interested landowners. spent to ...if a "Why We Can't Say NO to Development." Much of the discussion focused on how much current homeowners and businesses pay through increased taxes to accommodate the A policy to acquire land or development rights should be resolved by the community purchase community costs of new development. Particular emphasis was given to school costs. However, one before a decision on a key piece of land must be made. In more rural communities, it speaker, a lawyer who represents developers, reminded everyone that a piece of unde- would be important to have money already approved to purchase land or development land or doesn't want veloped land is a valuable asset that belongs to someone. It may be a farmer's retire- rights. For more developed communities, it would be equally important to have ready ment program or the means to finance his kids' college educations. Land is a basic part money available to purchase parcels in the remaining open parts of the community or development of the product provided to a developer's customer. He said it is fundamentally unfair for to see a for properties needed for specific public purposes. municipal officials to fool around with zoning techniques that reduce the value of that rights asset. The attorney charged the group that, if a community doesn't want to see a piece Many areas of the Commonwealth are experiencing significant development pressures. piece of land of land developed, the community should find a way to buy it. It is important that municipalities identify goals related to the conservation of land avoids resources and consider the impacts of development on community services, particularly developed, In response to the attorney's challenge, relevant numbers were collected and analyzed. the school systems. Help may be provided by county planning commissions, well In the Central Bucks School District's newsletter, CB Insight, Spring 1994, it was report- established conservation organizations like Heritage Conservancy, or community greater and the ed that the cost to educate a public school student was $7,300 per year and it was planning consultants. In many communities, capable and interested residents would be expected that each new home would produce, on average, about one additional public able to collect the necessary information and prepare an evaluation that would quantify repeated community school student. The average new house generated $2,300 in real estate tax revenues the relationship between the costs of new development and the costs to purchase land and $400 in earned income taxes for a total of $2,700. As such, there was an annual or conservation easements. For those communities under development pressure, timing costs of should find shortfall of $4,600 per household between the taxes it generated and the costs to the is most important. These matters should be evaluated before opportunities to protect school district. The shortfall must be made up from other sources of revenue, such as important lands are lost. municipal a way to increased taxes spread over all in the community. It is important to understand that the purchase of land or development rights will not and school It was also found that the approximate cost to purchase an acre of undeveloped farm- buy it. stop further development or the rising cost of education, but it will blunt the economic land in the Central Bucks area was $16,000 and the price of a conservation easement or impacts of rapid development and protect valued community assets. A dollar spent to district development right was about $11,000 per acre. These figures were derived from purchase land or development rights avoids greater and repeated costs of municipal and appraisals prepared for the Bucks County Agricultural Land Preservation Board in the school district services. Children from new homes will need to be educated. Over all, services. second half of 1994 for raw, unimproved land in Buckingham Township. conservation of land will complement new development. Both development and preser- vation have places in the future of our communities. It is this balance that is important. The evaluation lead to the conclusion that the community could choose to: 1) raise taxes to make up the shortfall for the ever increasing number of Land preservation is not an extravagant expense. It's an investment in your community. school students, 2) raise taxes to invest in the preservation of land and thereby avoid some of the future shortfall in public school costs, or 3) try to balance the two. Spend money for land. Spend money for schools. The community had choices. In 1998, the revenue and cost numbers were updated. In the Spring 1998 issue of CB Insight, it was reported that it costs about $8,615 per year to educate a public school student in the Central Bucks School District, based on the 1996-97 school year. The average house generated $2,913 in taxes. Therefore, the shortfall per household was about $5,702 per year, an increase of $1,102 in four years. It should be noted that the short- fall for a new home is much less in the first year due to the transfer tax that is collected. 1 2 ReferencesAssociation of New Jersey Environmental Commissions, Open Space is a Good Investment: The Financial Argument for Open Space Preservation , Mendham, N.J. O 1 pportunity Knocks: Community Investments in Land For decades, people in suburban and rural places have discussed, studied, argued and fought for ways to keep some of the land in their communities open and undeveloped. Central Bucks School District, CB Insight, Spring 1994, Volume 4, Issue 2. While zoning techniques, such as cluster development and transferable development ...many of rights, have had some success, there are areas where development is best avoided rather Central Bucks School District, CB Insight, Spring 1998. than moved around. Lively discussion has also focused on the changing quality of life the costs of and community character. The debate approaches an emotional level when residents and The Chronicle of Philanthropy , "Stemming the Tide of Sprawl: Rampant Growth is No business owners, both lifelong and newcomers, find their municipal and school district Longer Seen as Just and Environmental Issue," February 11, 1999. development tax bills increasing to pay for road improvements, additional police personnel, new schools and other services and facilities that rapid development and sprawl bring. The Chronicle of Philanthropy , "Preserving Open Space for the Ages: As Land Trusts are borne Win Broad Support, They Grapple with New Challenges," July 29, 1999. Matters related to open space, farmland, community character, quality of life, taxes and by the development are all intertwined. Municipal and school district officials in Bucks County, Delaware Valley Regional Planning Commission, The Future of First Generation Suburbs as well as areas throughout the nation, have realized that many of the costs of develop- in the Delaware Valley Region , Philadelphia, Pa., December 1998. community ment, particularly in areas of rapid change, are borne by the community rather than the developer. In particular, residential development requires more services than it produces Frank, Michael, "Money Saved if Land Not Developed," Reading Eagle , in tax revenues to pay for services. Public school systems, which take the biggest bite of rather than December 31, 1997. local tax dollars, are directly affected by the location, amount, type and timing of devel- opment. In addition to the qualitative aspects of preserving open space and farmland, the Frank, Michael, "Buy Land ­ Buy Schools; How Bucks County Does It," Springs & there is a fiscal side which should be addressed. Sinks, ClearWater Conservancy, May 1999. developer. Charles Baker, former president and member of the Central Bucks School Board, has said Kelsey, Timothy W., Fiscal Impacts of Different Land Uses: The Pennsylvania it is important to take a business approach to the management of public school systems. Experience, Penn State Cooperative Extension, University Park, Pa., 1997. A successful business cannot operate properly by just increasing the price of the product or service (raising public school taxes). Nor can a business survive by reducing the Land Trust Alliance, Voters Invest in Parks and Open Space: 1998 Referenda Results , quality of the product or service provided to the client (eliminating school programs or Washington, DC, 1999. increasing class sizes). It's important to control demands on the cost side of the equa- tion. By buying land or conservation easements to reduce the number of new homes The New York Times, "Town Finds Rare Way to Protect Farms: Tax," and children who enter the system, costs can be better managed. September 11, 1994. The Penn State Cooperative Extension published the results of several studies that quan- Pennsylvania Department of Environmental Resources and Pennsylvania Department of tified the relative costs of development patterns. Timothy W. Kelsey, associate professor C o n s e rvation and Natural Resources, L e a rning About Land: A Guide for Educators , 1999. of Agricultural Economics, analyzed the relative governmental costs and The Philadelphia Inquirer , "Of Tax Cuts, and Cities, and the Effects of Suburban tax revenues of different land uses in Sprawl," May 24, 1999. several townships throughout Pennsylvania. Residential develop- The Philadelphia Inquirer , "Area Legislators Join to Slow Suburban Sprawl, City Flight," ment costs much more for municipal June 30, 1999. and school district services than farming, commercial and industrial land uses. By far, agriculture contributes more than it takes in t e rms of governmental serv i c e s .