| Abstract: | ABSTRACT: Under the terms of the Thames River Valley Flood Control Compact, Connecticut has been paying Massachusetts 40 percent of the annual property tax losses suffered by seven Massachusetts towns where four flood control structures were located. The permissable alternative of a single lump sum payment was investigated in the study summarized here. The lump sum payment should be the proportion of total benefits (flood control and recreation) from the four structures which Connecticut receives, multiplied by the present value of projected tax losses in the seven tom Flood control benefits and their distribution between the two states were fixed in the Compact, but a survey was necessary to determine recreational benefits and their distribution. Regression analysis of 1957 to 1978 tax loss data provided equations used to project future tax losses. Resent values of projected tax low were calculated using discount rates ranging from 6 to 12 percent. A plausible range of lump sum reinbursements as of 1979 was identified. |
