An analysis of seasonal home development and its fiscal impacts on local government

This study is designed to meet the following interrelated objectives: (1) To determine the socioeconomic characteristics of vacation home owners, (2) to determine the characteristics of vacation properties, (3) to ascertain the patterns of use of vacation homes, (4) to establish which governmental services are used by vacation home owners and (5) to measure the net fiscal impact of vacation home development on the local government.

The County of Franklin, Virginia was used as a case study area, Information on owner and vacation home characteristics, use of the homes, and use of services was primarily obtained through a questionnaire survey, while information on county revenues and expenditures was obtained from county records. The net fiscal impact was measured as the difference between estimated revenues associated with vacation home owners accruing to the county government and estimated county expenditures incurred in order to provide vacation home owners with governmental services.

The number of vacation homes in Franklin County has grown rapidly in recent years, primarily because of the creation of a large man-made lake, part of which lies within the county. Accordingly, sizeable population shifts have been occurring in the county on a seasonal basis which have been affecting the social, economic and ecological structure of the area.

Most vacation home owners in Franklin County are middle aged, in white collar occupations, have attained a high level of education and are comparatively wealthy. Vacation homes are recently constructed, relatively large, of contemporary design structures equipped with most modern conveniences and located very near the lakeshore. They are used an average of slightly more than two months per year, mostly during the summer, for relaxation and for water oriented recreational activities.

Seasonal residents, due to their intermittent pattern of residency in Franklin County, use only part of the total county services available to permanent residents. Many seasonal residents are dissatisfied with the quality of services they receive. In view of the vulnerability of seasonal homes and the rather high incidence of break-ins inflicted upon them, vacation home owners are particularly concerned with the quality of police protection. Furthermore, they complain, among other things, of inadequate fire protection facilities and of the lack of land and water use planning.

Estimated county revenues exceeded estimated county expenditures for services associated with vacation home owners during fiscal year 1972. However, the growing demand by vacation home owners for more and better services will probably result in substantial county expenditures in the future. Total expenditures associated with seasonal residents will probably approach, if not exceed, county revenues generated by seasonal residents.