FLOOD03186 - Laserfiche WebLink

Home Browse Search

VERSION 1.0 1/12/95 B-C PROGRAM: Level One Anaiysls Contact Person Disaster Number Project Number Application Date Discount Rate (%) '''"' PINK Block (Information Only). The Contact Person is someone who could, if needed, provide additional information about the building to the analyst. PINK Block (Information Only). The Disaster Number is a unique number assigned by FEMA for each disaster. PINK Block (Information Only). The Project Number may be the DSR number assigned by FEMA or any other identifying number. PINK Block (Information Only). The Application Date is the date when the application was submitted to FEMA. RED Block (OMB Policy). The Discount Rate entry is determined by OMBIFEMA policy and cannot be varied by the user on a project-by- project basis: On October 29, 1992, OMB issued Circular A-94, Revised (Transmittal Memo No. 64), "Guidelines and Discount Rates for Senefit-Cost Analysis of Federal Programs." In this Circular, OMB states that the appropriate discount rate varies depending on whether or not the investment (I.e., project) is an "internal Federal government investment." For FEMA-funded hazard mitigation projects for state and local governments (or eligible non profits), the OMB-mandated discount rate is the rate applicable for investments which are not intemal Federal govemment investments. The OMB-mandated discount rate corresponds approximately to the 30-year Treasury bond rate, but the appropriate rate is specifically fixed by OMB annually. Currently, the OMB-mandated discount rate is 7% (see Appendix C of Circular A-94). For each disaster, an appropriate discount rate should be determined by FEMA, in accordance with the OMS guidance, and applied uniformly to all hazard mitigation projects being considered. The discount rate determined for each disaster is entered in the RED Block. After this rate is determined and entered ONCE, it can then be used for analysis of ALL hazard mitigation projects for this disaster. 6-4