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HomeMy WebLinkAboutCA-MI-66 Impact Fee Legist Study 1993tit• of C�Ivwell n�r�nnin� Telephone 455-3006 TO: Planning and Zoning Commission FROM: Planning and Zoning Department RE: Impact Fee Legislation DATE: January 5, 1993 memorandum Attached for the review of the Conunission is a document which summarizes development impact fee enabling legislation. Although the ability to collect impact fees is limited to governmental entities located in counties with a population of 200,000 or more (Ada County only), there is the possibility of new legislation that would enable other entities such as the City of Caldwell to collect impact fees. Key items within this material include: 1. Comprehensive Plan which addresses the type of public facility 2. Capital Improvements Plan or Capital Improvements Element The current significance of these items is that the Commission is expected to consider a revised Parks and Recreation Component in March of 1993. It would be advisable to assume that at some point in the near future the City of Caldwell would have the ability to adopt an impact fee ordinance. Consequently, the revised component should contain the legislative prerequisites for adopting such an ordinance. THROUGH AMENDMENT OF THE LEGISLATION BY THE SENATE IN THE LAST TWO DAYS OF THE SESSION, THE BILL WAS LIMITED TO GOVERNMENTAL ENTITIES LOCATED IN COUNTIES WITH A POPULATION OF 200,000 OR MORE, i.e., ADA COUNTY. A SUMMARY OF THE DEVELOPMENT IMPACT FEE LEGISLATION The main features of the legislation, relating to the imposition of development impact fees, in its current form include the following; 1. Public facilities which might be constructed or expanded using impact fees as part of the funding: —Water supply production, treatment and distribution facilities; •Waste water collection, treatment and disposal facilities; --Roads, streets and bridges including rights of way, traffic signals, landscaping and any local components of state or federal highways; —Storm-water collection, retention, detention, treatment and disposal facilities, flood control facilities, and bank and shore protection and enhancement improvements; ...Parks, open space and recreation areas and related capital improvements; and -Public safety facilities, including law enforcement, fire, emergency medical and rescue facilities, and street lighting facilities. 2. Impact fees could be imposed, if the procedures herein are followed, by any governmental entity whom the legislature has authorized or hereafter authorizes to adopt ordinances. This presently includes only counties, cities and county -Fide highway districts. 3. A governmental entity desiring to adopt an impact fee ordinance is required to appoint an advisory committee consisting of at least 5 members. At least 2 committee members shall be active in the business of development, building or real estate. 4. Before an authorized governmental entity could adopt an ordinance requiring the payment of impact fees as a condition of approval of development, that entity must — a. Adopt a comprehensive plan if one has not been adopted, in the case of a city or county; b. Utilizing the land use assumptions most recently adopted by the appropriate land use planning agency or agencies, develop a capital improvements plan, or a capital improvements element to be added to an existing comprehensive plan in coordination with the Advisory Committee appointed by the governing body of the governmental entity desiring to adopt an impact fee ordinance. C. Conduct at least one public hearing on the proposed plan, after proper notice, and additional hearings if material changes are made in the plan, and provide information packets including the plan and a description and map of service areas upon request; -1- d. Conduct a separate public hearing on the proposed development impact fee ordinance and provide for prior notice, an informational packet and the opportunity for affected persons to provide testimony; e. Publish the development impact fee ordinance in a newspaper of general circulation and delay the effective date for at least 30 days following adoption. 5. The capital improvements plan must include: a. A description of existing public facilities and their existing deficiencies within the service area or areas, a reasonable estimate of all costs related to curing the existing deficiencies, and a plan to develop the necessary funding resources. The impact fee ordinance must establish the acceptable level of service which applies to existing facilities as well as new facilities. b. A cornnutment by the governmental entity to use other available sources of revenue to cure existing system deficiencies where practical. C. An analysis of the total capacity, the level of current usage, and commitments for usage of capacity of the existing capital improvements. d. The land use assumptions by the governmental entity. e. A definitive table establishing the specific level or quantity of use, consumption, generation or discharge of a service unit for each category of system improvements and an equivalency or conversion table establishing the ratio of a service unit to various types of land uses, including residential, commercial, agricultural and industrial. f. A description of system improvements and their costs necessitated by and attributable to new development in the service area for a period not to exceed 20 years, based on the approved land use assumptions, at a level of service not to exceed the level of service adopted by the governmental entity for new and existing facilities. g. identification of all sources and levels of funding available to the governmental entity for financing of the system improvements. h. If improvements include improvements to facilities under the jurisdiction of the State or another governmental entity, then an agreement between those entities specifying the proportionate share of funding by each entity. i. A schedule setting forth estimated dates for commencing and completing construction of all improvements identified in the capital improvements plan. 6. The capital improvements plan must be updated at least every 5 years, using the same procedure as for adoption of the plan initially. 7. The impact fees may only be used to fund capital improvements (having a useful life of ten years or more) identified in the capital improvements plan, including WM construction, improvement, expansion or enlargement of new or existing public facilities, which are specifically attributable to the capacity demands generated by the new development. 8. The impact fee may not exceed the proportionate share of the costs incurred by the governmental entity in furnishing system improvements (as opposed to project improvements) to serve the new development, taking first into consideration (a) credit , offset or contribution of money, dedication of land or construction of system improvements, (b) payments reasonably anticipated to be made by or as a result of a new development in the form of user fees, debt service payments or taxes which -are dedicated for capital improvements for which impact fees would otherwise be imposed; and (c) all other available sources of funding such capital improvements. 9. The impact fee ordinance shall include a schedule of impact fees, specifying the impact fee for various land uses per unit of development. The ordinance shall also provide for individual assessment of impact fees at the option of applicants for development approval under guidelines established in the ordinance. 10. The impact fee ordinance shall include a procedure whereby a developer may receive a certification of the impact fee schedule or individual assessment for a particular project, which establishes the fee for a period of one year from certification. 11. The impact fee may only be spent for system improvements in the same category and within or for the benefit of the service area for which they were imposed. If not appropriated for that purpose within five years and spent within seven years of collection, or in the case of wastewater or drainage facilities, within 20 years, must be refunded to the then - record owner. 12. The impact fee ordinance must specify the time when the fee is to be collected, which may not be earlier than commencement of construction of the development or issuance of the building permit or permit for installation of mobile home, or as agreed by the parties. 13. The ordinance shall provide for refund of the impact fee if service from the public facility never provided, a building permit is denied or abandoned, or the fee is not appropriated and spent within the time provided. 14. Credit or reimbursement is to be given to the developer pursuant to written agreement with the governmental entity in advance of commencement of the development for system improvements required by the governmental entity which exceed the development impact fee that would otherwise be required or which benefit subsequent development projects. 15. After a transition period following adoption of an impact fee ordinance, the impact fee will be the exclusive means of requiring payment of development exactions other than project improvements. Where impact fees are not adopted, the existing exaction process may continue. 16. Collection and expenditure of development impact fees are to be reported as part of the annual audit process of the governmental entity. 17. The development impact fee ordinance must include a process for dealing with a project which has extraordinary impact because it will result in the need for system improvements, the cost of which will significantly exceed the sum of the development impact fees, or will result in the need for system improvements not identified in the capital improvement plan. -3-