Open Space Planning is Worth the Cost

When new development is proposed, the recurring myth states that more homes or businesses mean more tax revenues for the town, thereby lowering local property tax rates. But taxes never seem to go down, and why not?

According to the New Jersey Conservation Foundation (NJCF), the reason why property taxes never actually go down is because more development means more tax money for more services. Studies show that residential development, factoring in the cost of schools and other local public services, is a net loss to municipalities -- costing between $1.04 and $1.67 in services for every new $1 in tax revenue. Commercial ratables also require other municipal services like police, fire, sewers, water, and roadway infrastructure and maintenance, eating up tax revenue. 

In contrast, preserving farmland and natural areas requires a greater upfront investment of preservation dollars, but carries a much lower cost in municipal services in the long run. Burlington County New Jersey's Office of Land Use Planning studied Mansfield Township and found new residential units required $1.48 for services for every $1 in tax revenue; in contrast, farmland cost 27 cents in services for every $1 in tax revenue. Over the long term, this means that open space and farmland prevent taxes from increasing and actually stabilize local taxes. Many other less easily quantifiable environmental benefits come from open space preservation, such as protecting and purifying the drinking water supply, purifying the air, and controlling flooding. These benefits are estimated to be worth at least $140 million, based on the cost to build and engineer these environmental services, according to a 2004 study by the New Jersey Department of Environmental Protection's (NJDEP) Division of Science, Research and Technology. The DEP study also found New Jersey's parks and forests reap an annual $1.2 billion in revenue each year. Over 15 million park visitors create a ripple effect in the local economy, buying food, lodging, gas and souvenirs. 

Open Space Planning Resources:

• The Association of New Jersey Environmental Commissions (ANJEC) has compiled the results of similar studies from across the nation into a resource paper on the comparative fiscal impacts of development versus open space. http://www.anjec.org/pdfs/OpenSpaceGoodInvestment2004.pdf .
• The Delaware Department of Natural Resources and Environmental Control’s Coastal Program has produced a free manual entitled Community Spaces, Natural Places. This document provides guidance on how to design an open space management plan and how to mobilize a community to implement habitat improvement projects. http://www.dnrec.state.de.us/dnrec2000/Divisions/Soil/dcmp/Open%20Space%20Nov%2005.pdf 
• The Great Swamp Watershed Association has compiled the "Benefits of Open Space," a collection of essays by noted conservationists from a variety of backgrounds discussing the value of open space from biological, economic, and psychological points of view. http://www.greatswamp.org/Education/benefits.htm

F. X. Browne, Inc. can help your municipality or organization with open space planning, nature trail and park designs, greenways planning,  ordinance development, and other environmental services. For more information on some of our open space planning projects, visit http://www.fxbrowne.com/html/opencase.htm or contact us at info@fxbrowne.com.