Land Use & Zoning

A Colorado municipality uses 'fiscal impact analysis' when reviewing development proposals to determine:

AOnly the developer's financial capacity
BThe net fiscal impact of the development on the municipality's tax revenues and service costs✓ Correct
COnly the construction costs
DWhether the developer will hire local contractors

Explanation

A fiscal impact analysis evaluates whether a proposed development will generate sufficient tax revenues to offset the public service costs it creates (schools, police, roads, parks). This helps municipalities make informed decisions about development approval.

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