Client:  City of Surprise (AZ)

The City of Surprise engaged GG+A to estimate the economic and fiscal impacts associated with the operations of local industrial firms. Based on a survey of a sample of industrial firms, which provided information on the economic, labor force, and real estate use characteristics of the firms comprising a significant share of the total industrial base of Surprise and the use of the input-output model IMPLAN, GG+A quantified the spillover or “multiplier” effects associated with direct changes in local industrial activities. In addition, based on the survey, review of municipal budgets and assessment and property tax data, GG+A estimated the fiscal revenues industrial firms and their employees generate for the General Fund of the City of Surprise. GG+A prepared a report describing the direct, indirect, and induced economic impacts of prototypical industrial firms in terms of employment, income and output for the City of Surprise and Maricopa County. The report also presented estimates of the property taxes, transaction privilege taxes, and State-shared revenue taxes associated with the prototypical industrial firms. In addition, the report presented metrics or benchmarks that the City staff could use in evaluating the potential impacts of future industrial activities attracted to the City. The analysis and report provided the City with a a framework for understanding how the local economy and fiscal base of Surprise will be affected by future industrial growth and development.