xt7xd21rh430 https://exploreuk.uky.edu/dips/xt7xd21rh430/data/mets.xml   Agricultural Experiment Station, Department of Agricultural Economics, University of Kentucky 1973 journals kaes_research_rprts_18, English University of Kentucky Contact the Special Collections Research Center for information regarding rights and use of this collection. Kentucky Agricultural Experiment Station Research Report 18 : December 1973 text Research Report 18 : December 1973 1973 2014 true xt7xd21rh430 section xt7xd21rh430 ECONOMIC COSTS AND BENEFITS OF RURAL
i — An Illustrative Case Analysis ——
By `
A Eldon D. Smith, J. Keith Wilkinson, and Kurt R. Anschel
_ University at Kentucky : : College of Agriculture
Agricultural Experiment Station : : Department of Agricultural Economics
A Lexington

 J x
x * a

 » .~\(IKi‘¥0\\~'LEDGIiI\IENTS
\\"e are especially indebted to the Kentucky Highway Department for key items of data
used in tlns study. Special tabulzttinns nl county, state, and municipally maintained r0ad mileages ;
Qllltl ll].lllllL‘llill}(`L‘ (`USIS ll)! lllC $[1llC fHLl1Ill£.llDC(l pO1'[lOl'), plLlS c0st €StllT1ZiT.CS fOI` [l`lC I`O3.d
llll[)l<>\t`H]Clll Pltlltft l> (`UlHl)lClt'(.l lll tlte !X[)})L1lL1Cl]lliYl COLUl[lCS \\’€1`€ [)1“O\'ld€d \N1[l`lO`l1I cost to LIS.
l)l'L']).ll.lll<>ll ul these data tnxnlx ed both a large amount of electronic computing service and ‘
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\\`e alsn ;ttkmmletl;;t· the sttggesttnns nl several colleagues 1D the Department 0f
.\etteulttn.tl lietnnttnnys and in tlte Dexelnpment Programs Office of the Kentucky Cooperative
l‘.XlCll>It>Il SCI\l( V \\i(‘, Ml (UUISC, Ll>>llIHC I`CSI)UIl§ll)1lll}` liOI` the lillllil liOI'XT`l Of IDC IT13.HUSCI`lp[.
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i In this research we analyze one aspect of a problem which potentially involves millions of l;
g i c V dollars of expenditures and one which touches directly the lives of several thousand people. .¤
Q However, we are acutely aware of the fact that knowledge of a single aspect, even if that i
  knowledge specifically pertained to each individual community, would not be a sufficient basis p
L for decisions by the public officials or citizens who have the responsibility for making them. We u
T   W have attempted only to show how the decisions to build or not to build roads to communities iz
  l ` like those in our sample affect the financial position of the residents and the public agencies
i which represent the public at large. When benefits are less than costs, this does not necessarily c
  mean that the project is not justified. It means only that, on the average, the residents of the area I?
  W would be better off financially if they were to be given the money it would cost to improve and C
S Q W maintain the roads than to have it spent for that purpose, and even then only if the relationship I
  of benefits and costs which were calculated is valid for many years to come, which is always ¢*
V W W problematical. l`
_ , W Where benefits are low in relation to costs, we have suggested some possible altematives C
  j to building roads. However, we emphasize that these are only possibilities to be considered along '
  V with many others. These possibilities themselves would require careful investigation. Their merits *
; j _ l would have to be evaluated after specific, detailed plans were worked out. We do not intend by l
i . any of the factual statements that we make or by calling attention to the solutions which were
, i used to solve somewhat similar problems elsewhere to indicate that we advocate similar solutions. l
W T Programs which have worked well in some areas have frequently worked badly in others with Y
different political, social, or economic conditions. Our purposes are solely those of (a) I
stimulating thinking by responsible officials and voters about altemative solutions to an I
j T important problem, and (b) providing some factual information which will indicate the types and 1
l general orders of magnitude of a few key decision variables. l
j At various places in this publication it is noted that the data upon which the report is V
based are relatively old and that both costs and benefits will have changed as a result of changing
economic conditions since the data were collected. While this would be a serious shortcoming if
Q we were evaluating a specific project, this is not our purpose. The purpose here is to illustrate the
` relationships that must be evaluated by direct consideration of a particular project, and to
4 provide some insight into how important each of these factors is in determining the economic
» merits of various projects. In addition, as prices and costs change, usually primarily as a result of
general price movements in the economy, they tend to move in similar directions, although not
precisely so. Therefore, in general, the age of the data does not greatly affect the value of it for
our purposes.
' 2

A companion study [3] indicates that the effects of having access to only unimproved ’
roads, a common condition of families in many of the coves and hollows of Appalachia, are
Y largely economic There rs no direct or indirect evidence that this situation limits educational
, attainment, or that it impairs mobility of the labor force of such areas, although both they and i
r their neighbors living on paved roads recerve limited education, medical and dental service and
; probably other public services as compared with more affluent areas. Therefore, thrs study
; turalyzes the economic costs and benefits that would result if the large mileage of presently -
; trnrmproved roads were improved to minimum all-weather standards.
; Benefits under conditions in the survey area were mainly in the form of reduced travel
r costs and reductions rn absenteeism from work rn periods of bad weather. With existing average
1 population densities of 9 7 families per mile and moderate 6 0% interest on investment, benefits
j exceeded estimated added maintenance and interest costs on traffic-bound rock surfaced roads.
) llowever, the ratio of benefrts to costs was significantly lowered if trends in population decline
S are projected over the 40 year planning horizon assumed here, especially if discount rates are
higher ll population densities were onerhalf the average level found in the communities studied, ‘
5 costs wotrld exceed benefits even with contrnued constant population. Therefore, the economic
g merits of each road improvement project should be separately evaluated on the basis of
S comparisons of economic costs and benefits under existing population densities, trends in
7, population, travel pattems and applicable IIIICICSI rates.
S lf considerations of equity or political considerations dictate that all residents must be
j_ provided wrth all weather roads to their homes, consideration should be given to altemative
1 means rn the event that costs exceed benefits by a large margin Costs wall likely exceed benefits
) in severely depoptrlated areas Subsidies to induce remaining residents to move to areas which are i
3 more accessible, possibly in combination with zoning against further residential use, are among
j the possrbrlrtres which should be carefully examined by local policy makers with due regard for
local social and econornrc conditions ·
C .

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Page I
ACKNOWI,l·lDGI·LI\iEN'I`S ......................... 1
I·`ORI·lWORD 4 . ....V.. . .............. 2 i
SL`NlZ\lAR\ . . . _.44. . T.........i.. 3 ‘
LIST OI· T`ABLES , .....,......`.....,...5 6
IN"lR()1)L`C'1I()N . . . .... . ................ 7
SOURCES OF DATA V . ....................... 8
_ NIETIIODS OI? ANALYSIS ...... . . . .............. 8
COSTS OI· ROAI) II\1I’RO\’EZ\IENTS .:...S....... . .... 12
COX(,LL`SIONb , . . I . . 2............ 24 f
RI·.I· I·.RI·.NCI·LS . . . . , . . . I . ........,.. 25
AI’I’I·.NDIX . . C .,.».....C. . ......» 27
5 I I

? Table No,. Page
1 1 Regression Analysis of Factors Affecting Frequency of Travel for All Business,
I Social, and Recreational Purposes ................... 10
j r 2 Summary of Estimated Annual Benefits and Costs on Road Improvements
Q Exclusive of Depreciation .,..................... 14
  3 Population Change in Appalachian Coal Field Counties, 1950-70 ........ 16
  ‘ 4 Summary Benef1t·Cost Analysis of Road Improvements by Levels of Original
` Population, Rates of Population Change, and Discount Rates .......... 17
  5 Illustrative Summary Estimates of Long-Run "Public" and Private Cost Savings
‘ I · From Relocation of Residents of Isolated Neighborhoods .......... 21
l   6
l _ .
, 1 1

—An Illustrative Case Analysis-
6 Eldon D Sm1th,_] Keith Wilkinson, and Kurt R Anschel* ‘
7 Introduction public and private services which they require
or desire With a limited revenue base with
Road construction and maintenance are which to meet these and other demands for
Tl extremely expensive in relation to the quality public services, an improved factual basis for
of the raod system in the Appalachian region. deciding under what circumstances road
Rugged terrarn and rocky geologic features 1mpf0\‘€m€nts should be and when they ‘
V increase costs per mile The limited numbers should not be undertaken is obwously
of sites suitable for concentrations of needed
population, rn effect, "force" population to While economic costs and benefits are
disperse out in the narrow valleys and increase important considerations, it is obvious that a
mlleage per caprta, and 1ncrca5e average mL1Cl1 broader array of COI1SlCl€1‘8.Il01'1S 1S
mrleages between origin and destination f€l€\'Z1¤i I0 such d€C1S10HS. IH 3 COITIPBHIOH
points for travelers In addition, per capita study [3] an analysis is presented of the
incomes are low, public revenues are scarce, fT121¤¤€f and €XI€¤I I0 Wh1Ch f&I1’l1l1€S l1ViI1g OH ?
and the needs of the resident population for UU1mPTO\'€d roads HIC affected with regard I0
improved public services are great. These are lhfflf SOC13l, f€Cf€3Ii0H&l, and b11S1I1€SS
among the reuons that a high proportion of interactions mth the broader community and -
the roads rn Appalachra rg urqrmprgved the effects of this on their mobility and on
There 15, Of Course, cgrqtrnugug pglrtrqal the educational achievement of their children.
pressure to have these roads improved ln part In this companion study, statistical
it comes, understandably, from that large comparisons of patterns of travel for
segment of the population which has to f€€Y€3Il0¤21l, shopping and 5€h00l·T€l¤Y€d
endure the inconvenience, discomfort, and fu¤Ci10¤S, m€d1€€1l and d€¤F3~l $€I`Vl€€ Mc
added cost associated with having to travel made These comparisons suggest that people
these unrmproved roads to reach places of of cvmparablc l¤€0m€ and Oth€T
employment, recreational sites, and sources of charactenstics living in an area accessible only
_________ _____ ____,,___ by unimproved road shop somewhat less
frequently, have somewhat lower frequencies
‘l’roiessor oi Agrzturtural Eeonomts Gracuarc Research Of partrcrpatron in school—related aCtlVlt1€S,
ESSLZLTZZ   .I,ZZ$2°if’LaS§.,.',Ei}`fEIi`llT` wd   OH fewer msauomi mpi Howemr
Wrlktnsons Masters Degree I_l1€s\s Cl11lCl1`CIl l‘€£iI€d 111 SL1Ch Z1I`€3.S ·El1`€ DOI
7 A  
I s
* .
  . .....»- l

 . i 8
  .i . Sjgmfieemyly different m €dL[CL)_[,lQ['][[l United States Census of Population and
; y attainment and mobility from children of United States Census of State and Local
  i families living ii] Coirfiiiiuiiilics Will] GO\'CflIIUCl}[S. Ddlll fOl` IllC` COfTIl)LllllOfl Sllldy
y ‘ bituminoussurfaced roads Moreover, while are largely from the survey.
  y i the area was once very isolated from the rest The survey data from Pike County were
{ » g y of the state and nation, this is no longer true. COlleClCd from two samples of nonfarm
§ _ There is H great deal gf [moe] to meets outside households. One lived on bitumrnous—surfaced
  y` · [he immediate helghho;hood’ imd 21 high roads in a band l0 to 15 road miles from
  l, ~ ‘ pygpgytign gf fgmilieg have traveled yo, or Pikeville (93 useable questionnaires) and the
  C actually lived in areas Outside the mountain Otlier llvetl at least one-half mile from any
  . region Therefore, it was concluded that there improved road rn a band between 5 and 15
V   . was no strong evidence that residents of areas 10C¤€l m1l€S f1`0m P1l53,; 2 = 34 :0,6+ l
: l

Table l. Regression Analysis of Factors Affecting Frequency of
» Travel for All Business, Social, and Recreational Purposes
. Isolated Areas Non-Isolated Areas
V Variable Mean Valueg Regression Coeff. Mean Value Regression Coeff
Z . (Standard Error) (Standard Error)
V Q Y No. trips per year 224.95 ——- 322.52 --—
( P Xl Av. value food
p production for
§ home consumption $246.78 — 0.072 $127.10 — 0.154
( (0.035) (0.067)
g i X2 Av. distance
i per trip (mi.) 11.75 — 6.096 9.69 — 6.338
I I p (1.245) (2.191)
A · ( X3 Family size b
1 1 (members) 3.71 +13.639 3.75 + 7.551
? “ (5.879) (6.280)
1 p X4 Net income $2,909.75 + 0.015 $4,346.11 + 0.010b
(0.007) (0.006)
X Ownership of auto
p or truck
E (1=own; 2=not own) 1.36 -65.619 1.15 -83.499
§ p (25.607) (37.196)
p a Constant term ——— 308.943 -—- 427.844
Q 2
- R --- 0.45 ——— 0.23
  n --- 87 --- as .
é aA1l differences in mean values significant at P = 0.05.
1 ( bNot significant at P = 0.05; all other significant.
/ L &

alone According to our regression estimates, roads.1 Reports from local business firms
differences rn income and the closely indicate that this estimate 1S much too low,
assocrated drfferences rn automobile especially for travel over bad roads.
ownership, accounted for about two thirds as Therefore, we w1ll assume avery conservative
much of the difference rn travel frequencies as 7 0 cents per mile for travel on improved ’
I dtd the locatronal factor However, both roads and 14.0 cents per mile for travel on
regression Cquallluls leave a majority of the unrmproved roads
E vrutance rn travel frequencies unexplained, As noted earlier (p. 8 ), we have 1
rr) indicating that unidentified factors not estimated from our regression equation that a
__ included rn this analysis importantly affect population comparable in income and other
travel frequencies characteristics to the population living on ‘
\\'h|le the frequencies Of travel L\Il1l'I1pIOV€(l IO8.(lS WOL1ld [I`3.V€l S1g1'11flC3IlIly
apparently are somewhat reduced by inferior more if located On em Improved rOad”a·bOut
rO,,dS_ L, {ACLU, Oi Impmlzmcc m 272 trips of 117 miles round-trip distance, as
a.aam...rrr.tm of cost rs the proportion Or ¤<>mP=¤€d with 2 P¤=S¢¤t ftcqumv 02 225
that travel on unrrnprov ed roads This was PCI year An average Of about 3 6 lmlcs PCT
_ _ _ trip was estimated to be over unimproved
demonstrated drrcctlv to the staff of the
_ r ‘ roads. Therefore, with a cost saving of $0,07
project by the fact that several tires were PCI mllc IO the traveler, H appears that the
mmcd bt Shful) *°°k° wd Other hazards average family would experience automobrle
during the cotrrse of the field enumeration Imvej COSI Sawngs Of about $69 per ycaj- (272
NC\C[lllClC$$, ll lb (llllllf (llll-lCL1ll LO ClCK.CI'XT1lTl€ X 3 6       lf é)j·€vj0uS1y ununpfgvcd
prCC1$Cl}‘ actual ttlcreases ttl lILi\Cl COSIS rO3_d5 were improvted.
resulting from bad road conditions Travel
over unrmprov ed roads rnflates fuel
consumption, and repair and depreciation Avoided Losses of Work Time
costs lnforrnal estimates from several public Resulting from Impassable Roads Z
officials and automotive service people rn the
area rndrcate that the life expectancy of a The 47 employed respondent heads of
vehicle trav ehng primarily in these areas rs less households in areas vvathout improved roads ·
than half that for cars traveling mainly on lost an average of 4 8 work days owing to bad
hard surfaced roads 'lrre life expectancy was roads during the preceding year. If one
reported to be from 5,000 to 10,000 mrles as W N W __ _ _" »_
compared vvrth about 20,000 for original T
equipment tires trnder hrglivvay conditions. tnm wmpmi mh mileage Charges of - 0 Ccmspemmlc on
On the other hand, nevv cars are rare among ynrrersrry or Kcnvucky Corlcgc of Agnculrurc v¢fuC1¤§(aS
l lh C less af l lu Ctr t, an d 0 bsolescenee ;f“‘;;$   Qlffgeéh   ;';v§;‘5:;il;d;gS?°§; Eicilziledaagg
__ (l€pt’€C1;1t10tl Costs LHC, dCCOrd1t1gly, lO\NCI* wrhout payment of gasoune ·axes or personal property
Vehicle operating cost estimates derived *2**
fron] COSI Conlponcnl C>lu`nJlCS supphcd   TNO\€ that (l'l€ {Dial das‘ance U3\'€l€(l PE! KHP 1S lI`[€l€V3Il[
sample respondents averaged only 6 2 cents wm ,, _, mumfd tha, the placeg to tthrch they Maia
pet mile, including travel over unrmproved ¤¤**€l*~¤¤l¤"m¤‘“‘h‘$am°‘f’°a°‘“°‘°‘mp‘°"°d
l .

 _ 12
Q . considers the total of all 87 isolated area are frequently rmpassable, not all such
T I I households, this is equal to an average of 2.6 ¤€lghb0Yh00d$ are dlY€€ilY 5€W€d by miill
é n days per   The residents   Or] paved Cl€llVCI`1€S. Instead,   Cl€llVCI'lCS Lift?
y roads also experienced some loss of work time sometimes made at the junction with the
  i for the 53_rrie reason, grr average of ]_ 3 dgyg [`l€L1I`€S[ "good" road, €Sp€ClLllly   the CllSlLlllCC
r . per year per emplgyed resident and   for   to [lit? most I`CI!`10l€ I`€S1ClCDCCS is SliOI`l.
5 nonisolated families. Thus, if the isolated However, for those that are served, il` added
  ` area residents were also provided with costs are 7.0 cents per milt, and 305 deliveries
, T , ‘ improved roads their loss in employment are made annually, the saving is about $21 per
  _ rnight be reduced to about l_7 days per year road mile or $2.20 per family.2 Comparable
  per family. The estimated difference of estimates of utility service cost additions are
.   income per family resulting from the bad not available, but would unquestionably be
  _ roads was $34 per year muell smaller.
  , . T Savings on Travel of Commercial Sales Costs of Road Improvements
  T and Service and Public Official Visitation
  l That residents of neighborhoods without
  L p The residents living on paved rgadg improved roads are somewhat economically
  . reported receiving an average of about ~l5 d1$t1€lVZ1¤t¤ge€l by lH€l< of good f0HClS is
  i , I y visits from deliverymen, salesmen, and school obvious. Therefore, consideration will be
3 ? , or public officials (exclusive of mail service), given to the alternative possibilities ol
    e0mbjned_ If residents living in areas with removing this disadvantage. We consider in
  j ‘ unirrlproved roads were to receive the game this S€Cl.lOl'l the costs of road impfO\'€mClltS
l T I number of visits, and each visit involved an and their maintenance, specifically,
  . average of 3 6 miles of unimproved road per improvement t0 the level of minimum
f round trip, this would add an estirnated all—weather construction. This will here be
  annual cost of $5.70 per family for the defined as equivalent to Kentucky Highway
Q A T services provided by the external agents 1 Department specifications for traffic bound,
  l rocksurfaced road 16 feet wide. Costs include
l T T necessary grading, draining, structures, base
  Other Benefits from Road Improvement and surface
  . Costs of road construction and
  A In addition to the foregoing private maintenance vary with terrain, and geologic
I   resident travel costs and costs for public and conditions, the number of bridges and
`   I private service deliveries, especially school bus culverts that must be installed and the type of
i   _ service, other services such as mail deliveries, base and surface required. For projects ol
’ i 1 and utility services require some travel on the traffic bound rock surface type in
  T unimproved roads. Since some of the roads Appalachian counties, the original capital
Y l ——-——-——-—-·—-—T·--—» outlay was about $9,000 per mile for those
l i .
I   lln actuality, their lower incomes would probably result in a
Q . smaller number of visits. But the total cost rs low and the
  probably error small. `”Cost per family" does not imply that
  the families who receive the visits bear the cost It means
A   ` only that the cost is borne by someone Average distance
V 5 per call for families living on unrmproved road was only 1 8 __# ____ ____ __ ____ ______
  miles, indicating that delivery, sales, and service calls were
E   mainly from neighborhood locations, largely sales or
 E   V deliverymen from local stores. (1 8 X 45 .2 X $0.07 = $5.70) 2Based on a population density of 9.7 families per road mile
r %
7 i ‘
, ls i

it constructed rn the years 1964 66 1 borne for unrmproved roads, the added
C Marntenance costs are somewhat maintenance cost rs $242 less the $70, or
C deferrable and varrable depending upon $172 per mile when roads are improved.
C maintenance policy Moreover, rn the case of If alternative uses of money rnvested rn
(_ structures such as brrdges, the drstrnctron the original rmprovement would yield 6% *
d between marntenance and capital ("1nterest cost"), the estimated combined
ys improvements becomes blurred, since old maintenance and interest cost would be
gy structures are olten replaced wrth superior roughly $712 per mrle ;
lc ones Nevertheless, a crude rdea ol such costs
gc rs proyrded by costs and mileage reported for
W state marntamed roads oi roughly comparable Aggregate Annual Costs and Benefrts ·
specrlrcatrons llltcse costs averaged about from Road Improvement Compared
$242 per mile annually during the period
1902 63 through 196-1 65 Costs of road constructron and
Whrle the socalled "pr1m1t1ye roads" maintenance as well as costs of automobile
(usually not much more than wagon trarls or trayel have rncreased since the period for
J; worse) get lrttle or no maintenance, countres Whleh data were collected Estimates fOr the
ly- usually attempt to marntarrr the perrod under study are only approximate.
is "unrmproyed" or graded and dramed classes Equally apparent rs that each road ‘
gc of roads tu passable condrtron for the greater 1mprO\emertt project Cannot be adequately
Of part of the year While there rs no source oi €\all1at€d eXCept by d1Y€Ct eXamir1at10r1 of the
m data which scgrcgates the maintenance costs parr1Cttia1 case Th1$ 1U\’0lV€5 1tS terrain,
is on yarrous classcs ol unsurfaccd roads, the present l€\`€l of d€\'€l0pm€¤t, St¤1Ct11r€S
y_ CO1lI`lIy' responsrbrlrty rs alrnost entrrely for required and p0pL1lat10¤ d€1”lS1tY, t0 ¤a1T1€ 8
(Ii traffic bound rock surfaced roads and lower ten of the C0St d€t€rf¤i¤a¤t5 Nevertheless, it
be classes Therefore an estrrnate 1s possible by may be US€f11l t0 IHUSUZNC th€ PYOCCSS of
at- ealculauorrs based on Census oi Governments C\`Z1lUfil1Hg a partteulal project by usmg the Z
  data 2 We can subtract from the total county data ayailable
dc road maintenance brll an estrrnatc of the cost lf the added costs of providing on—s1te
(SC of marntarnrng the rrnproy ed portions The S€r\1C€5 {mm €Xt€m€d ¤§€¤€l€$ are Cdmbmed ‘
latter estimate can be made by multiplying With th€ ¤ddr>r<>¤¤m¤t¢i>* $109 ¤¤¤¤¤11>* per famriv m
of counties are adjusted lor changes rn the ley el the sury ey area (Table 2).
rn of prrces, the average estimated rnarntenrurce Accordrng to a count of residential and
tal expenditure pet mrle for trnrrnproved roads 15 f·11m5t€Jd 5UU€UiYe$ Shdwn On the eOun[Y
ise approxrmately $70 Since this CO>l must be lt1ghWd$" m¤P5, ur {he meds with OHIY
unnnptoyed roads there was an average of
about 9 7 residences per mile of unrmproved
_ road, The estimated savrng from reduced
-9 le 9 I 1 travel costs and reduced work absenses would
1 ( be $1.057 per road mile (97 X $109). If
S°l”°°° K°"`“"“ D“p‘l""‘”'" °° u`*h"`“i° °p°“°1 marntenance and construction costs were
laoulat on t omp.ttr .1 —n 196 _ -
mls I comparable to those noted rn the preceding
2SOu‘ct‘. 19t1` (kurt 0] (1r,rc·r1nr· ru. `voi 1 Kentucky SCCUOII, 11`IIS would ITICZIH [hilt 8.I'1I1U3.l DCI
• .
  _ ,_____ 1

é Table 2. Summary of Estimated Annual Benefits and
p _ Costs On Road Improvement Exclusive of Depreciation
§ cu cz)
1 Per Per Mile
j Householdl Improvedq
· i
E l Benefits
i Reduced private travel costs 69 $ 669
; Reduced losses of earnings due to impassible
0 . A roads 34 330
§ Reduced costs of travel by commercial and
g ` ’ government personnel2 6 58
E 4 ~ Total benefits 109 1057
i A 1 Costs
j Interest on original improvement cost
($9,000 @ 6.O%)3 --- 540
“ Increase in maintenance costs ——— 172
I .‘ Total annual costs --— 712
T i Net return above annual costs +$ 345
. --—--—-—---—-----—-------—----———----------
_ I 1Rounded to nearest dollar, 1966 basis.
é 2Excludes postal delivery and school bus transportation savings.
. 3Sixteen foot traffic bound rock surface
? 4 . . . . .
. 4 Benefits based on a population of 9.7 families per mile of road.
E 5Traffic bound road maintenance cost less cost of maintenance on
‘ unimproved roads.
E $
i .
/ A i

returns above costs from tllls type of road assumption, since population declined in
llllplovtlllcllt would be about $345 PCI lTlllC SOITIC COul'lt1CS of the coal {1Cld HIC?). by l'IlOI`C
Notc that this makes no allowance for several than 47% during the 195070 period and in
omitted |lL'lI"lb such as savrngs on school bus no instance less than 19% (Table 3). If this
llLill§p()Iltlll()Il, llol (slots lt lIl(,lud€ Il'lC COl”lt1I‘luCS {OI Illéuly ITIOIC YCELIS, [l'lCIC   be "
rrrtarrqrblc benclrts of lrrtrcrlsed comfort and areas whlch are very sparsely populated Thus,
Coll\ClllCllLL’ lo lllc !CslLlClll:s i\lOlCO\r€l, [llc AS zi Il'l1IllI'rlul'l'l, DC1'lCf1tS l'TluSt be 3.djl1StCd
cstllllrllcd s.l\lllg~ pt! lTlllC of llzlvcl AIC Clowllwdld tO compensate fo! tl'lC &IlI1Clp3.I€d ;
probably C()ll>Ll\tlllVL‘ population loss, preferably on a
nerghborhood bynerghborhood basis.
ln addition to declining population, ·