current trends in impact fees national impact fee roundtable october 21, 2004 robert d. spencer

Current Trends In Impact FeesCurrent Trends In Impact Fees

National Impact Fee National Impact Fee RoundtableRoundtable

October 21, 2004October 21, 2004

Robert D. SpencerRobert D. Spencer

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OutlineOutline

Consolidated public facility feeConsolidated public facility fee Broader benefit areasBroader benefit areas Broader use of feesBroader use of fees Fees for public servicesFees for public services State participation in financing State participation in financing

feesfees Other trendsOther trends

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Consolidated Public Facility FeeConsolidated Public Facility Fee

Combine multiple facility types into Combine multiple facility types into a single feea single fee

AdvantagesAdvantages– Simplify program administrationSimplify program administration– Balance surplus capacity in some Balance surplus capacity in some

facility areas with deficient capacity facility areas with deficient capacity in othersin others

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Barriers To A Consolidated FeeBarriers To A Consolidated Fee

State statute constraints?State statute constraints?– California Mitigation Fee Act: impact fees can California Mitigation Fee Act: impact fees can

be used for “capital facilities, public services, be used for “capital facilities, public services, and community amenities”and community amenities”

Case law constraints?Case law constraints? Political constraints?Political constraints?

– Gives more control to councils and managersGives more control to councils and managers– Takes control from departmentsTakes control from departments– Developers suspiciousDevelopers suspicious

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City of GilroyCity of Gilroy

BeforeBefore– Police feePolice fee– Fire feeFire fee– Parks & recreation Parks & recreation

feefee– Libraries feeLibraries fee– General public General public

facilities fee (civic facilities fee (civic center, corp. yard)center, corp. yard)

AfterAfter– Public Facilities Public Facilities

FeeFee

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Examples of Consolidated Fees Examples of Consolidated Fees (Calif.)(Calif.)

Carpin-Carpin-teriateria GilroyGilroy

Palm-Palm-daledale

Rose- Rose- villeville

SanSanLeandroLeandro

UnionUnionCityCity

Other Fac.Other Fac. XX XX XX XX XX XXFireFire XX XX XX XXLibrariesLibraries XX XX XX XX XXPark LandPark Land XXPark Imps.Park Imps. XX XXPolicePolice XX XX XX XX XXRecreationRecreation XX XX XX XX XXTransport.Transport. XX XX XX

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Single Fee and Burden Nexus Single Fee and Burden Nexus TestTest

Service population: nonresidential Service population: nonresidential (worker) demand weighted by amount (worker) demand weighted by amount of facilities by typeof facilities by type

Common demand standardsCommon demand standards– Land (acres/capita)Land (acres/capita)– Buildings (sq. ft./capita)Buildings (sq. ft./capita)– Other: equipment, special facilities, etc. Other: equipment, special facilities, etc.

($/capita)($/capita) Single cost standard ($/capita)Single cost standard ($/capita)

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Single Fee and Other Nexus Single Fee and Other Nexus TestsTests

BenefitBenefit– Use fee revenues for any public facility Use fee revenues for any public facility

that expands capacity of citywide that expands capacity of citywide systemsystem

ProportionalityProportionality– Single cost standard ($/capita)Single cost standard ($/capita)– Fee schedule ($/du or sq. ft.)Fee schedule ($/du or sq. ft.)– Burden allocation to development Burden allocation to development

projects based on service populationprojects based on service population

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Broader Benefit AreasBroader Benefit Areas

Fees collected and spentFees collected and spent– Jurisdiction-wideJurisdiction-wide– Region-wideRegion-wide

AdvantagesAdvantages– Larger revenue base = fund facilities Larger revenue base = fund facilities

soonersooner– Focus revenues on high priority projectsFocus revenues on high priority projects– Avoid multiple funds with little funding Avoid multiple funds with little funding

capacitycapacity– Simplify administrationSimplify administration

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Broader Range of FeesBroader Range of Fees

Affordable HousingAffordable Housing– In-lieuIn-lieu– LinkageLinkage

Art in public placesArt in public places ChildcareChildcare Equalization fees Equalization fees

(equalize (equalize assessment assessment burden)burden)

Environmental Environmental “facilities”“facilities”– Air pollution Air pollution

mitigationmitigation– HabitatHabitat– Open spaceOpen space

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Fees For Public ServicesFees For Public Services

One-time impactsOne-time impacts– Construction truck impacts on road Construction truck impacts on road

maintenancemaintenance Ongoing costsOngoing costs

– San Francisco Transit Impact San Francisco Transit Impact Development FeeDevelopment Fee

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Statewide FinancingStatewide Financing

Impact Fee Impact Fee Reimbursement Reimbursement ProgramProgram

Reimburses property Reimburses property owners for impact fees owners for impact fees collected when collected when building permitbuilding permit issuedissued

Impact Fee Impact Fee Pre-Funding ProgramPre-Funding Program

Advance funding of Advance funding of impact fees when impact fees when tentative maptentative map is is approvedapproved

Statewide Community Infrastructure Program Statewide Community Infrastructure Program (SCIP)(SCIP)

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Other TrendsOther Trends

Residential fees per sq. ft.?Residential fees per sq. ft.? Increasing state regulation?Increasing state regulation? New Supreme Court cases?New Supreme Court cases?