Memorandum

City of Lawrence

Planning Department

 

TO:

Dave Corliss, Acting City Manager

Debbie Van Saun, Assistant City Manager

FROM:

Planning Staff

CC:

Sheila Stogsdill, Interim Planning Director

Date:

7/14/06

RE:

Population Projections and Estimates

 

Planning Staff recently undertook an effort to determine if the Department has been using best practice methods of projecting future population for Lawrence and Douglas County and estimating yearly population for Lawrence.  This memo details the Department’s existing methods, reviews literature discussing population projection methods, and examines other communities’ methods.

 

Staff also tested Horizon 2020 population projections using different methods than were used for Horizon 2020.  In addition, staff is in the process of testing the US Census population estimates for Lawrence and Douglas County.  Part IV of this memo details the results of those tests.

 

I.         Existing Planning Department Methods

Projections

Population projections are forecasts of population at some future date.

o        Horizon 2020 provides three projections: low, medium and high.  The Low projection model uses a simple linear regression with decennial census data from 1950 to 2000.  The Middle projection model uses a simple linear regression with data from the Census estimates for the years 1990 to 1999.  The High estimate model uses the average decade growth rate from 1950-2000 of 24 percent.

Estimates

Population estimates are an annual estimate of population.

o        The Planning Department estimates the population of Lawrence on a yearly basis.  The method employed is a new housing unit projection technique that uses building permits issued, demolitions, a vacancy rate, and an average household size to estimate an annual Lawrence population.

 

II.       Population Projection Best Practice Literature Review

Further Thoughts on Simplicity and Complexity in Population Projection Models, Smith, Stanley K., University of Florida Bureau of Economic and Business Research, http://www.bebr.ufl.edu/Articles/IJF_1997.pdf#search='further%20thoughts%20on%20simplicity%20and%20complexity'

o        No evidence to suggest that the use of complex methods has led to consistently greater accuracy in forecasting total population than can be achieved with relatively simple extrapolation techniques. Population projections for horizons longer than 20 years are of dubious predictive value. (p. 12-13)

o        Combining projections from different models can be beneficial.  Combining can be done in many ways: using different models or techniques, different specifications of the same model or technique, simple averages vs. weighted averages, historical weightings vs. subjective weightings, and so forth. (pp. 15-16)

 

Local Government Finance: Capital Facilities Planning and Debt Administration, Steiss, Alan Walter, http://www-personal.umich.edu/~steiss/page49.html

o        For purposes of capital facilities planning, it is necessary to develop fairly detailed estimates and projections of population by age-cohorts.  Such detail is particularly applicable to the identification of capital facility needs associated with certain age groups (such as school facilities, health care facilities, housing for the elderly, recreation needs, etc.)

o        Population change involves three separate components: births, deaths, and migration. Component models consider the separate effects of each of these factors and requires more comprehensive and detailed data than usually are available to local planners.

o        The simpler methods have a wider range of application and may be used to produce population projections at almost any geographic level.  Econometric and cohort component models have more extensive data demands and may be less appropriate for smaller geographic areas.

 

III.        Community Methods in Practice

Population Projections

o              Lincoln, Nebraska

o        Comp Plan projects 363,000 people in the county by 2025 (250,291 base in 2000) and 527,000 by 2050.  This projection was reached using an assumed growth rate of 1.5 percent per year throughout the 50 year period.  That rate is more than the historic rate of 1.2% (since the 1960’s) but mirrors recent growth trends.

o        The Comp Plan anticipates that the rate of growth will be routinely monitored.

 

o              Madison, Wisconsin

o       Madison relies on the US Census Bureau, the Wisconsin Department of Administration, and the Madison Area MPO for its population projections.

 

o              Wichita, Kansas

o       The Comp Plan forecasts a county population of 567,000 in 2030 (from a base of 435,000 in 1997.  Population forecasts for Sedgwick County were prepared using conventional cohort survival modeling in which birth, death and migration rates are applied to each of 36 groups in the population called age/sex cohorts. This involved using individual projection rates of fertility and mortality for each of the 36 age/sex cohorts within the population. The net migration component is distributed evenly as a rate across all age/sex cohorts.

 

o              South Bend, IN

o       The Indiana Business Research Center projected population for South Bend through 2025.  Two methods were utilized for comparison: shift-share and share-of-growth.  Both are ratio methods, which are a specific type of trend extrapolation method.  They are used for projecting the population of a smaller area in relation to independent projections for a larger area of which it is a part.  In this case, the projections for South Bend are related to previously released projections for St. Joseph County.  Projections for St. Joseph County were made with a cohort component model, a relatively complex and data-intensive technique.

 

o              Columbia, MO

o       Process not outlined in Comp Plan.  Data used was local housing demographics, 1990 Census and building permit information.

 

o              Provo, UT

o       Provo used four different methods to project out to a 2020 population.  The methods were arithmetic, historical growth, building permit, and general plan.  The final projection was the average total of all four methods.

 

o              Nashville, TN

o        Nashville projected a 2010 population using Building Permit and Property information along with recently released data from the 2000 Census.

 

o              Stillwater, OK

o       Population estimates for 2020 prepared by a consulting firm.

 

o              Lancaster County, PA

o       Used a cohort-component method to project a county population.  Municipal populations were projected using four simple methods and averaging the results.  The county projection was used as the control for the municipal projections.

 

Population Estimates

o           Clark County, NV

o        Uses a building permit method to estimate a yearly population.  Uses occupied housing units, average household size, and persons in dorms, institutions and group homes.

 

o              University of Virginia’s Weldon Cooper Center

o        Provides population estimates for Virginia localities.  Uses a ratio-correlation method. The inputs used are: 1) The sum of personal and dependent exemptions on state tax returns in the estimating and base years, obtained from the Virginia Department of Taxation, 2) A sum of births in the estimating and base year and the two years preceding each, obtained from the Virginia Department of Health, 3) The sum of public and nonpublic school enrollment in grades 1–8 in the fall of the year preceding the estimating and base years, 4) The number of licensed drivers in the estimating and base years, obtained from the Department of Motor Vehicles, 5) The estimated housing stock in the estimating year, and 6) The civilian group quarters population.

 

o           State of Washington, Office of Financial Management

o        The State of Washington uses a housing unit method to estimate population for cities in Washington.  Average persons per household and occupancy rates are applied to updated housing types.  Population in group quarters is estimated separately and added to the household population for a total population estimate.

 

While there is a variety of population projection and estimating techniques utilized by different communities, the techniques used by Lawrence are common.

 

IV.       Method Testing

Population Projection Testing

Staff ran a number of projection methods to test the existing Horizon 2020 population projections.  Numerous bivariate curve fitting methods were used including polynomial regression models, exponential models, and logarithmic regression models.  Results indicate the Horizon 2020 mid-range projections are on target.

 

Population Estimate Testing

The method of population estimating used by the Planning Department is a method that is well established and used by many jurisdictions around the country.  The Planning Department population estimate for Lawrence in January 1, 2006 is 89,176.  The US Census estimate for July 1, 2005 is 81,816. Staff is investigating the methods used by the US Census to estimate local populations.

 

Staff is also in the process of testing the recent US Census population estimate numbers for Lawrence and Douglas County.  Early results seem to indicate the US Census is underestimating our population.  a process is available to challenge the US Census numbers. The Census Bureau allows a number of methods that can be used to challenge their numbers, one of which is the housing unit method employed by the Planning Department. 

 

Staff will continue to test the US Census numbers.  If Staff determines with confidence the US Census is underestimating Lawrence’s population, we would recommend authorizing a challenge to the US Census estimates.