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• Benefits <br />In the long run, the benefits of a local jobs grant program may <br />outweigh the initial costs of providing job grants. For example, <br />Palm Beach county's job grant program has created 2,044 new target <br />industry jobs at a total cost of $4,092,276 or about $2,000 per <br />job. <br />According to the Florida Department of Labor's most recent annual <br />ES -202 annual average wage table, Indian River County's annual <br />average wage was $21,972 in 1994. Therefore, an industrial firm <br />that decides to locate its new facility in Indian River County and <br />creates 100 new jobs that pay at least $21,972 per employee would <br />have an annual payroll of $2,197,200 (100*21,972). A 2.5 <br />multiplier effect of the payroll alone would represent a $5,493,000 <br />increase to the county's economy. Per each new manufacturing job <br />at least 2 service related jobs will be created. <br />Presently, the County's economic base has little diversification, <br />being primarily dominated by the citrus industry. With the ability <br />of the county to offer a. local jobs grant program to new and <br />expanding industrial businesses, the county can enhance its <br />economic development prospects and may receive the following <br />benefits: <br />0 Reduced unemployment <br />0 Stimulated economy <br />o Diversified economic base <br />0 Increased number of jobs <br />0 <br />Increased employment opportunities in year round <br />b <br />usinesses <br />0 Broadened the property tax base <br />o Enhanced economic stability <br />0 Additional sales taxes <br />These benefits are based on the assumption that new economic <br />development will produce a positive effect on peripheral businesses <br />located in the county. Consequently, the consumption of goods and <br />services should increase as the County's economic base increases. <br />Seminole County's jobs 'growth incentive program status report <br />containing a cost -benefit analysis is attached to this agenda item. <br />• Fiscal Impact of Combined Incentives <br />Since the county is considering instituting several economic <br />development incentives, it is important to assess the potential <br />fiscal impact of these incentives. Fiscal impact focuses on local <br />government revenues and expenditures. Besides fiscal impacts, <br />incentives can be expected to produce economic impacts. Those are <br />reflected by the multiplier effects referenced above. <br />With respect to incentives, fiscal impacts cannot be directly <br />measured. It is possible, however, to assess the fiscal impacts of <br />representative projects expected to be built as 'a result of the <br />county offering economic development incentives. These impacts can <br />then be projected based upon differing amounts of development that <br />could occur from the offering of incentives. <br />Using a hypothetical project as an example and factoring in the <br />cost of a jobs grant program and lost revenue from a tax abatement <br />program, a general fiscal impact analysis indicates that cumulative <br />revenues will exceed cumulative costs 6 years after project <br />construction. Consequently, the fiscal impact analysis shows that <br />providing the referenced incentives will have a net positive fiscal <br />impact. The tables below illustrate that result. <br />49 <br />May 14, 1996 8DOX5,4" <br />