FLOOD04322

• County: Statewide
• Community: State of Colorado
• Stream Name: All
• Basin: Statewide
• Title: Benefit-Cost Analysis for Urban Drainage Planning
• Date: 3/1/1974
• Prepared For: UDFCD
• Prepared By: CSU
• Floodplain - Doc Type: Educational/Technical/Reference Information

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just as though an individual was faced with the
option of placing his money in investments with
differing rates of return.

2. The public investment is measured over an exten-
sive time period. This advantage is often over-
looked but is highly significant. Because of
the nature of governmental budgeting, public
investment decisions are usually looked at in
one to ten year time frames rather than over
extended periods.

3. The techniques of benefit-cost analysis allow for
comparing and ranking multiple alternatives. The
method can handle a large number of alternatives
with less confusion than normal narrative present-
ations.

There are a number of problems related to benefit-cost

analysis:

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1. Too much reliance can be placed on the results
of the analysis by the decision-making body.
Benefit-cost analysis is based upon a series of
assumptions about physical events. The assump-
tions are only approximations of reality, not
reality itself, and the results of the analysis
should be viewed with this in mind.

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2. The prejudices of those making the analysis are
always incorporated into the analysis. For
example, open space is valueless to some groups
and therefore not considered as a benefit, while
to others it may be a primary objective.

3.

The question arises as to who receives benefit
from a public works improvement - the community
at large, certain sections of private enterprise
and/or certain residential areas.

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Before benefit-cost analysis can be useful, flood control

criteria must be formulated to establish the constraints of

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~ ~onard Rice CDnscltlnq Water Eng',eers Inc.