Improvement-Driven Fees National Impact Fee Roundtable Arlington, VA October 5, 2006
Session Outline o Clancy Mullen n o o o (15 minutes) Road impact fee example Joe Colgan n o Conceptual framework Randy Young n (15 minutes) Alternative taxonomy Panel Discussion Q&A (15 minutes)
Overview o Alternative Methodologies n n o o o Plan-Based Standard-Based Essential Characteristics Plan Requirements in State Laws Advantages and Disadvantages
Alternative Methodologies o o Plan-Based (Improvements-Driven) Standard-Based (Demand-Driven, Consumption-Based, Buy-in, Incremental Expansion)
Essential Characteristics of Plan-Based Methodologies o Geographic LOS standard n n o A 10 -year to 20 -year master plan n n o All roads function at LOS D or better Drainage adequate for 100 -year storm A park within one mile of every house Minimum 5 -minute fire response time Growth projections for planning period Improvements needed to serve growth at adopted/desired standard Fee = Total Cost divided by Growth
Essential Characteristics of Standard-Based Methodologies o System-wide LOS standard n n n o o Park acres/1, 000 population Road system VMC/VMT ratio Fire station sq. ft. /dwelling unit Gallons/day per single-family equivalent Permanent school stations per student Existing facilities cost per demand unit Total cost / capacity = unit cost Fee = unit cost x units needed
Comparative Typical Features Plan-Based Standard-Based List of projects mandatory List of projects optional Spend only on listed projects Any eligible improvement Add projects when plan updated Add projects any time Desired LOS = deficiencies Existing or desired LOS No charge existing capacity Typically no excess Charge for future excess Charge only for needed
State Law Requirements o 27 states have enabling acts n n n o Typical requirements n n n o 30% no requirements (FL, AZ, CO, WA. . ) 20% require only a list (AR, OR, UT, WI. . ) 50% require growth projections Growth projections List of needed projects and costs Only attributable share used in fee calc. TX: max fee = growth costs/growth
Advantages/Disadvantages Plan-Based Standard-Based Certainty based on plan Flexibility to adapt to change Legitimacy based on plan Validity not tied to plan Can use geographic LOS System-wide LOS simpler Captures marginal cost Long-term avg. = marg. cost
When Plan-Based is Warranted o o o Complex, geographic-based LOS Master plans available Community approaching build-out
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