Cost of Community Services studies ask a simple question: For every dollar of municipal revenue generated by a particular type of land use, how much does the community spend providing services to it?
The results can be surprising.
A landmark American Farmland Trust study of three Massachusetts communities —
Agawam, Deerfield and Gill — found that, on average:
Residential land: costs the community $1.12 in municipal services for every $1.00 in revenue
Farm, forest and open land: costs the community $0.33 in municipal services for every $1.00 in revenue
Other Massachusetts studies have produced different numbers, but generally the same pattern: undeveloped and working lands tend to require substantially less in municipal services than residential land.
These studies do not mean that every new home costs a town money, nor are they forecasts of the impact of a particular development. They are snapshots of existing municipal revenues and expenditures. But they illustrate an important and often overlooked point:
Land that generates less tax revenue can still make a positive contribution to a community's finances if it requires very little in public services.