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IMPLAN®is an input-output model that uses multipliers to represent demand and flow of would contribute the vast majority(approximately 90 percent)of financing for any required
<br /> resources among sectors9 and institutions in the economy. Input-output analysis is a means of alternative control measure.
<br /> examining relationships within an economy,both between businesses and between businesses
<br /> and final consumers. It captures all monetary market transactions for consumption in a given Table 54: Summary of Household Income Classes in the City of Manteca and their Relative
<br /> time period. This type of analysis allows examination of the effects—or economic impacts—of Contributions to Alternative Control Measure Annual Costs
<br /> a change in one or several economic activities on an entire community. Economic impacts are Relative Annual Contribution to
<br /> represented by changes in economic output and employment. The current analysis is based on Alternative Cost by HH Income Class
<br /> the assumption that a sewer fee increase to households in the WQCF service area will reduce
<br /> discretionary spending of disposable income. A loss in discretionary spending will reduce HH Income Average Annual No.of HH Percent of Effluent-to-Land Microfiltration/
<br /> demands for local goods and services,which in turn will reduce demands for local labor, Class('( HH Income(Z'a'4) in Class(") Total HH Disposal Reverse Osmosis
<br /> resulting in loss of employment. <10K $7,071 1,302 6% $486,000 $1,494,000
<br /> Unlike the ratepayer category effects presented in Table 46 where alternative costs are divided 10—15K $17,678 878 4% $312,000 $996,000
<br /> among four ratepayer groups,the economic impact analysis using IMPLAN®considers the 15—25K $28,285 2,447 12% $936,000 $2,988,000
<br /> impacts of the entirety of an alternative control measure on the City as a whole. Even though the 25—35K $42,428 2,697 13% $1,014,000 $3,237,000
<br /> IMPLAN®model uses data only from Manteca,ratepayers from the City of Lathrop and Raymus 35—50K $60,106 4,035 19% $1,482,000 $4,731,000
<br /> Village were assumed to be part of the impacted community. While it is true that alternative 50—75K $98,998 5,148 24% $1,872,000 $5,976,000
<br /> control measures,if pursued,would not be implemented until 2012—2017,and projects costs
<br /> would be greater at that time,household incomes and the total number of ratepayers asked to 75—100K $127,283 2,447 12% $936,000 $2,988,000
<br /> share the expense of an alternative would also increase,thus maintaining the relative economic 100—150K $176,782 1,779 8% $624,000 $1,992,000
<br /> burden of an alternative control measure comparatively constant over the next several years. The 150K+ $247,495 516 2% $156,000 $498,000
<br /> IMPLAN®model utilizes information regarding the distribution of wealth and spending habits in HH=Households
<br /> the City to estimate changes in several key economic indicators. The current distribution of (1)HH income class is based on median monetary income(money income)data collected by the U.S.Census Bureau.
<br /> (2)Average annual household income is based on average personal income data collected by the U.S.Bureau of Economic
<br /> wealth,spending habits,and overall economic health of the City are not anticipated to Analysis.
<br /> significantly change in the next five to 10 years,further supporting the use of 2007 project cost (3)Due to the manner in which average annual household income is calculated,it commonly falls above the upper boundary of the
<br /> estimates[O aCCCSS the general eCOr10m1C burden imposed b the implementation Of effluent-t0- household income class to which it is associated.The difference lays in the definition of personal income versus money income.
<br /> g P Y P (4)Data source IMPLAW 2003.
<br /> land disposal or MF/RO on the City. In short,the current economic impact analysis looks at
<br /> present day economic effects of the entire cost of an alternative control measure on all WQCF
<br /> ratepayers. The annual financial burden on lower income households of financing an alternative control
<br /> IMPLAN data from 2003 were the most recent economic data available for the City,as measure(see Table 53)would result in proportionately less disposable personal income(DPI;a
<br /> compiled by MIG,and were used in the current analysis. As a means of equating 2003 model percentage of total average income)available to these households as compared to middle and
<br /> data to 2007 project costs,2007 inflators were applied to model data to account for the change in upper income classes as presented in Table 55. DPI represents"after tax"income and is
<br /> the actual value of the dollar over the 4-year period. Basic 2003 economic information for the considered as 82.5 percent of average annual income by the IMPLAN®model. A decrease in
<br /> City used by the IMPLAN®model is shown in Table 54. The largest household(HH)income disposable income translates into fewer dollars available to spend on essential goods and services
<br /> class in the community is the 50—75K group representing 24 percent of the total community. If such as food,lodging,and healthcare. An increase in annual sewer fees due to the
<br /> one uses the U.S.Census Bureau's 2002 offering of"middle class"as the middle 20 percent of implementation of effluent-to-land disposal would result in households in the<l OK income
<br /> the country having incomes ranging from$40,000—$95,000,then roughly 55 percent of class spending 7.8 percent of their average annual DPI on sewer treatment(see Table 55). This
<br /> Manteca's residents could be described as belonging to the"middle class"(this grouping same income class would spend 10.8 percent of its average annual DPI on sewer treatment with
<br /> includes members of the 35—50K,50—75K,and 75—100K HH income classes). This leaves the implementation of the MF/RO alternative. It is clear that increased monthly sewer fees due
<br /> the City with approximately 35 percent representation in the"lower class"and about 10 percent to the implementation of either alternative control measure would result in proportionately larger
<br /> representation in the"upper class". As shown by Table 54,low and middle income households financial burdens to lower household income classes as compared to middle and upper income
<br /> classes. However,the estimated,annual residential sewer fees provided in Table 53 upon which
<br /> the percentages provided in Table 55 are based do not address fee increases to current non-
<br /> Multipliers describe the response of an economy to a stimulus(a change in demand or production). residential or future residential and non-residential ratepayers. Financial impacts to these
<br /> 9 A sector represents an economic activity that produces goods and/or services. Fruit fanning,natural gas ratepayer groups in terms of projected sewer rate increases is beyond the scope of the current
<br /> distribution,real estate,and medical practices,to name but a few,all represent economic activities,and hence effort,but community level socio-economic impacts to all ratepayer groups are considered in
<br /> sectors in an economy. aggregate by the IMPLAN®model.
<br /> City of Manteca Antidegradation Analysis 109 June 2007 City of Manteca Antidegradation Analysis 110 June 2007
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