Kissimmee, Florida Annexation Proposal Analysis

Growth is continuing to occur on the western boundary of the City of Kissimmee, Florida. Given this continuing development, including a proposed mixed-use convention center development, the potential for the City to annex will diminish over time.

TischlerBise's marginal cost fiscal impact analysis for the City included three annexation areas, or fiscal analysis zones (FAZs). Each of these annexation areas is unique. For example, FAZ 1 is vacant land, where the proposed mixed-use convention center is proposed, FAZ 2 is largely developed, but has the potential to accommodate a limited amount of new development, and FAZ 3 is largely undeveloped. Within each FAZ, two scenarios were evaluated, a base case and an optimistic scenario. In addition, for each scenario there were two development time schedules: trends and slower development.

The analysis concluded that annexing any of the three FAZs would result in net revenues to the City. However, FAZ 1 produces the best result because of the scale of development contained in the proposed mixed-use project and associated off-site development. FAZ 2 produces the second best result because of its large existing taxable base ($456 million), which is 44% of the existing City base. FAZ 3 produced the third best result because revenues received from the existing development base are not enough to cover the up-front operating costs incurred for Police protection and Road maintenance.