ImprovementDriven Fees

1
Improvement-Driven Fees

• National Impact Fee Roundtable
• Arlington, VA
• October 5, 2006

2
Session Outline

• Clancy Mullen (15 minutes)
• Conceptual framework
• Randy Young (15 minutes)
• Road impact fee example
• Joe Colgan (15 minutes)
• Alternative taxonomy
• Panel Discussion (15 minutes)
• QA (15 minutes)

3
Overview

• Alternative Methodologies
• Plan-Based
• Standard-Based
• Essential Characteristics
• Plan Requirements in State Laws
• Advantages and Disadvantages

4
Alternative Methodologies

• Plan-Based (Improvements-Driven)
• Standard-Based (Demand-Driven, Consumption-Based,
  Buy-in, Incremental Expansion)

5
Essential Characteristics of Plan-Based
Methodologies

• Geographic LOS standard
• 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
• A 10-year to 20-year master plan
• Growth projections for planning period
• Improvements needed to serve growth at
  adopted/desired standard
• Fee Total Cost divided by Growth

6
Essential Characteristics of Standard-Based
Methodologies

• System-wide LOS standard
• 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

7
Comparative Typical Features
8
State Law Requirements

• 27 states have enabling acts
• 30 no requirements (FL, AZ, CO, WA..)
• 20 require only a list (AR, OR, UT, WI..)
• 50 require growth projections
• Typical requirements
• Growth projections
• List of needed projects and costs
• Only attributable share used in fee calc.
• TX max fee growth costs/growth

9
Advantages/Disadvantages
10
When Plan-Based is Warranted

• Complex, geographic-based LOS
• Master plans available
• Community approaching build-out