HomeMy WebLinkAboutPresentation on Impact Fees-Rexburg-March 3 2020 MeetingCity of Rexburg
Development Impact
Fees Update
Introductions
•Committee Members:
▫Richie Webb
▫Sally Smith
▫Chad Richards
▫Wayne Clark
▫Kristin Smith
•Consultant
▫Zions Bank
Susan Becker
Megan Weber
▫Horrocks Engineering
Jeff Mortimer
•Elected Officials
▫Chris Mann
▫Mike Walker
•Staff
What are Impact Fees?
•Fees imposed by a local government on new
development to pay for all or a portion of the costs
of providing public services to the new development
•A one-time charge for the capacity of city
infrastructure that new development will consume
•A payment of money imposed as a condition of
development approval to pay for a
proportionate share of the cost of system
improvements needed to serve development
History of Impact Fees in US
•First implemented in IL in 1947
▫$50 “tap-in” fee
▫Sued
▫Supreme Court ruled fees are legal if used for capital
expenditure, but not legal if for operating expenses
•More widely accepted in 1950’s and 1960’s
▫Capital recovery for water and sewer facilities
•1970’s -use expanded to non-utility uses
▫Streets, Parks, and Schools
•1980’s –use expanded to services
▫Fire, Police, Libraries
Key concepts from Statute-Title 67-82
•Orderly growth and development
▫Capacity replacement
•Equitable program for planning and
financing public facilities
▫Proportionate share
•Minimum Standards
▫Calculated on the basis of levels of service (LOS)
•Advisory Committee
▫5 members (2 active in development, building, real estate)
•Update of plan at least once every 5 years
History of Impact Fees in Rexburg?
•Rexburg and most other cities have billed for
“Capacity Fees” long before the implementation
of other development impact fees
▫Water
▫Sewer
•2003 (First Revenues in 2004)
▫Parks
▫Police
▫Fire
•2006
▫Streets
All Communities are Unique
•The need for impact fees varies by community
•All communities with utilities should have
capacity fees
•Impact fees may not be needed if your community:
▫Is not experiencing growth
▫Has sufficient revenue from other sources to maintain
desired “Levels of Service” (LOS)
▫May not provide all services
May need street impact fees, but not police or parks
Why did Rexburg Implement Impact Fees?
•To help maintain LOS while experiencing
significant growth
▫Property tax levies are so low they do not cover the
required growth in capital infrastructure
•Fairness and Equity
▫Protects current residents from experiencing a
reduction in LOS or having to pay for the impact
caused by new development
•Tax Exempt
▫Rexburg infrastructure supports an enormous
amount of tax exempt properties
As high as 50% of properties are tax exempt
Tax exempt developers are required to pay
impact/capacity fees
Cost Comparison-Sorted by Initial Cost
Cost Comparison-Sorted by Initial Cost
Cost Comparison-Sorted by 10-Year Cost
Cost Comparison-Sorted by 10-Year Cost
Cost Comparison-Sorted by 20 Year Cost
Cost Comparison-Sorted by 20-Year Cost
Additional Property Tax Comparisons
Property/Sales Tax Comparison Per Person
Examples of Street Projects in Rexburg
http://rexburg.org/pages/impact-fee-projects
•Realignment of Pioneer Road/Main
•Road Widening-12th West and 7th South
•Add Road-East Parkway-University Blvd
•Traffic Light at 7th South & 2nd East (Temple)
Examples of Park Projects in Rexburg
•Addition of Park Acreage-Eagle/Riverside
•Park Expansion-Riverside/Evergreen
•Parking Lots-Riverside/Evergreen
•Pathways-Porter/Riverside/Smith Park
•Restroom Expansion-Porter/Smith
•Additional multi-use fields-Riverside/Evergreen
•Pathways-Rexburg to Sugar
•Parks Shop
Examples of Park Projects in Rexburg
Examples of Police Projects in Rexburg
•Animal Shelter Building
•Police Storage/Training Facility
•Police Administration Building
Examples of Fire Projects in Rexburg
•Addition to Fire Station-Added 2nd Story
•Fire Trucks
▫Ladder
▫Tanker
▫Engine
Resources
•Consultants
▫Implementation
▫Updating
•Other Cities
▫https://www.rexburg.org/finance/page/impact-
and-capacity Website Information
▫https://www.rexburg.org/faqs Impact Fees FAQ
City of Rexburg CIP and Impact Fee Analysis
January 2020
ZIONS PUBLIC FINANCE INC.
HORROCKS ENGINEERS
26
Parks and Trails –Existing LOS
Rexburg Parks Park Address Park Class Total Acres
Eagle Park 450 W 3rd N Special Use 18
Nature Park 300 N 5th W Community 18.3
Riverside Park 50 West 1st N Community 31.76
Evergreen Park 801 W Main Street Neighborhood 7.66
Smith Park 300 E Main Street Community 11.07
Porter Park 100 South 2nd W Community 11.38
Community Fields 450 E 2nd N Community 16.59
Total 114.76
27
Parks and Trails –Existing LOS
Summary of Improvements Unit Total Units
Land Acres 114.76
Irrigated Acres Acres 60.20
Paved Acres Acres 7.48
Outdoor Basketball Court 3
Volleyball Court 4
Tennis Court 10
Baseball/Softball Field 8
Soccer Field 12
Football Field 1
Restrooms Restroom 7
Picnic Tables Table 4
Play Equipment Playground 14
Large Pavilion/Shelter Pavilion 2
Small Pavilion/Shelter Pavilion 10
Fire Pit Fire Pit 0
Benches Bench 36
Drinking Fountain Fountain 9
Grills Grill 7
Tables Table 21
Garbage Receptacles Receptacle 35
Track Track 1
Skate Park Park 1
Pickleball Court 4
BMX Park Park 1
Splash Pad Pad 1
Field Lighting Fixtures 2
28
Parks and Trails –Existing LOS
Trail ID Trail Name From-To Length (miles)
R-9 Evergreen to Kennedy Trail Evergreen Park to Kennedy
Elementary School 0.30
R-25 Porter Park Trail Within Porter Park 0.47
R-37 Smith Park Trail Within Smith Park 0.57
R-27 Rexburg Sugar Trail
Rexburg (2nd East) to the
northern City limits along N.
Yellowstone Highway
1.37
R-20 Nature Park Within Nature park 1.51
R-28 Riverside Park Trail Within Riverside Park 0.86
R-12 Jr. High to Hidden Valley Hidden Valley Subdivision to
Millhollow 0.14
R-23 5th West Main to Angela 0.34
R-33 University Blvd 5th W to University Village
near 7th South 0.68
R-39 Teton River North Side RR Track to 3rd East 0.73
R-38 Teton River South Side 1st East to Barney Dairy
Road 0.61
TOTAL 7.57
29
Parks and Trails –Existing LOS
Acres/Miles
Existing
Existing LOS per
1,000 Population
Park Acres 114.76 3.270
Trail Miles 7.57 0.216
30
Parks and Trails –Existing and Proposed LOS
Summary
Equivalency
Table
LOS Cost per
Acre/Mile
Existing LOS
Cost per
Capita
Proposed LOS
Cost per
Capita
Parks $131,328.76 $429.46 $429.46
Trails $250,000 $53.96 $53.96
31
Parks and Trails –Capital Improvements
Parks Trails
Existing LOS per 1,000 Persons (Park
Acres or Trail Miles)3.270 0.216
Existing LOS Cost per Capita $429.46 $53.96
Population Growth, 2018-2026 6,024 6,024
Acres/Miles Needed, 2018-2026 19.7 1.3
Cost per Acre/Mile $131,329 $250,000
Total Cost Necessitated by New
Development, 2018-2026 $2,586,887 $325,052
32
Parks and Trails –Proportionate Share
33
Summary of Per Capita Fee
Park Cost $429.46
Trails Cost $53.96
Consultant Cost $1.66
Less: Fund Balance Credit ($188.15)
TOTAL Maximum Per Capita Fee $296.92
Parks and Trails –Proportionate Share
34
Maximum Impact Fees Household Size*Maximum Fees
Single-Family Residence 4.025 $1,195.12
Multi-Family Community
Housing 2.390 $709.65
Multi-Family Dormitory
Housing
Assess by # of
beds $296.92 per bed
*Source: City of Rexburg
**For example, 6 beds in Multi-Family Dormitory Housing would equal
a fee of $1,781.52
Transportation –Growth in Demand
35
Description PM Peak Hour Trips
2018 PM Peak Hour Trips 19,200
2028 PM Peak Hour Trips 24,500
Growth in PM Peak Hour Trips,
2018-2028 5,300
Source: Horrocks Engineers
Transportation –Facilities Needed by New Development
36
Description
Reduction for
Existing User
Share
Reduction for Pass-
Through
Reduction for
Excess Capacity
Impact Fee
Eligible
Proportion
1*7th South and Pioneer Yellowstone (Juniper
Sands Roundabout)N/A 0%N/A N/A
2*2000 North (Moody) / Yellowstone Highway N/A 1%N/A 99%
3 2nd East/Moody Road Intersection 2%4%27%67%
4 State Highway 33 Realignment on North end 1%3%23%73%
5*2nd South/2nd East Signal N/A 3%N/A 97%
6 East Parkway Corridor (Barney Dairy to 7th
N)1%2%54%43%
7 East Parkway Corridor (2nd W to 2nd E)1%1%82%16%
8*Yellowstone Highway / Trejo Street N/A 3%N/A 97%
9*North Interchange Signal N/A 3%N/A 97%
10 Traffic Signal Synchronization-City Wide
(Rexburg)N/A 3%N/A 100%
11 2nd East (Main Street to 3rd South)2%3%53%42%
12 Main Street (US 20 to 12th West)2%5%22%71%
13 University Boulevard (Yellowstone to 5th
West)2%3%57%38%
14 2nd East (4th North to 7th North)2%6%37%55%
15 East Parkway Corridor (Barney Dairy to 7th
S)1%1%93%5%
16 5th West Extension 1%1%95%3%
17 Barney Dairy Road to 2nd North 1%1%94%4%
*Intersection improvement project reductions are based solely on pass-through.
Source: Horrocks Engineers
Transportation –Cost of Facilities Needed by New Development
37
Description Total Price Rexburg City Total
Impact Fee
Eligible
Proportion
Cost
Attributable to
Growth
1 7th South and Pioneer Yellowstone (Juniper
Sands Roundabout)$1,500,000 $0 0%$0
2 2000 North (Moody) / Yellowstone Highway $1,200,000 $200,000 99%$198,000
3 2nd East/Moody Road Intersection $200,000 $80,000 67%$54,000
4 State Highway 33 Realignment on North end $4,000,000 $3,000,000 73%$2,190,000
5 2nd South/2nd East Signal $375,000 $375,000 97%$364,000
6 East Parkway Corridor (Barney Dairy to 7th
N)$6,000,000 $4,000,000 43%$1,720,000
7 East Parkway Corridor (2nd W to 2nd E)$2,350,000 $350,000 16%$56,000
8 Yellowstone Highway / Trejo Street $500,000 $500,000 97%$485,000
9 North Interchange Signal $700,000 $350,000 97%$340,000
10 Traffic Signal Synchronization-City Wide
(Rexburg)$500,000 $250,000 100%$250,000
11 2nd East (Main Street to 3rd South)$1,125,000 $1,125,000 42%$473,000
12 Main Street (US 20 to 12th West)$750,000 $375,000 71%$266,000
13 University Boulevard (Yellowstone to 5th
West)$1,200,000 $300,000 38%$114,000
14 2nd East (4th North to 7th North)$1,000,000 $500,000 55%$275,000
15 East Parkway Corridor (Barney Dairy to 7th
S)$2,500,000 $2,500,000 5%$125,000
16 5th West Extension $8,000,000 $8,000,000 3%$240,000
17 Barney Dairy Road to 2nd North $3,000,000 $2,500,000 4%$100,000
TOTAL $34,900,000 $24,405,000 $7,250,000
Source: Horrocks Engineers
Transportation –Proportionate Share cost per PM Peak Hour Trip
38
Capital Costs $1,367.92
Consultant Costs $6.60
Credit for Impact Fee
Fund Balance ($268.60)
Cost per PM Peak Hour
Trip $1,105.92
Transportation –Sample of Costs per Development Type
39
Police Impact Improvement Plan and Impact
Analysis Updated Since First Meeting
•Figure 8-Added Future Police Station Equipment/Furnishings/Office Equipment
accidently missed from worksheet
•Equipment Cost of $107,373
•Figure 9-Existing Animal Shelter became impact fee eligible cost
•$426,614
•Figure 10-After consultation with Police, removed the 2,000 square foot addition to
animal shelter and land cost as impact fee eligible cost
•Reduced $516,547
•Impact Fee Level of Service Used dropped from 2.76 to 2.58
•Deficiency Credit updated reflecting above changes
•Figure 13-Above changes reflected in new cost per calculation
•Increased from $317.96 to $350.12
40
Public Safety –Police Calls per Unit
41
Land Use Type Calls per Unit
Residential
Single Family 0.690
Multi-Family Community Housing 0.248
Multi-Family Dormitory Housing 0.495
Non-Residential
General Commercial 0.504
Institutional*0.128
Public Safety –Police SF per Call
42
Public Safety –Police Cost per Call
43
Public Safety –Police Proportionate Share per Unit
44
Public Safety –Fire Calls per Unit
45
Land Use Type Calls
Residential per Unit
Single-Family Residence 0.038
Multi-Family Community Housing 0.041
Multi-Family Dormitory Housing 0.066
Non-Residential per kSF
Commercial 0.023
Institutional*0.046
Public Safety –Fire SF per Call
46
Public Safety –Fire Cost per Call
47
Expense
Impact Fee
Qualifying
Cost
% to
Growth
Related
Impact Fee
Qualifying Cost
Assigned to
New Growth
New Growth
Calls Added
to 2037
Impact Fee
Cost per Call
Fire Facilities
Existing Facilities $ 938,143 11.1%$ 103,878 375 $ 277
Existing Apparatus Inventory 2,121,575 11.1%234,917 375 626
Existing Debt Service
(Interest) -11.1%-375 -
Future Facilities within 10
Years 939,624 100%939,624 375 2,506
Future Debt Service (Interest) -100%-375 -
Total $ 3,999,342 $ 1,278,418 $3,409.15
Miscellaneous
Professional Services $ 8,000 100%$ 8,000 375 $ 21
Impact Fee Fund Balance (85,994) 100%(85,994)375 $ (229)
Total Miscellaneous $ (77,994) $ (77,994) $ (207.99)
Grand Total $ 3,921,348 $ 1,200,425 $ 3,201.17
Public Safety –Fire Cost per Unit
48
Development Type Fire Cost per
Call
Fire Calls per
Unit Impact Fee Impact Fee
Assessment
Residential Impact Fee Per Unit *Impact Fee per
Bed
Single-Family Residence $ 3,201.17 0.038 $ 122.67 N/A
Multi-Family Community Housing 3,201.17 0.041 131.37 N/A
Multi-Family Dormitory Housing 3,201.17 0.066 N/A $ 39.94
Non-Residential Impact Fee Per
1,000 SF Impact Fee per SF
General Commercial $ 3,201.17 0.023 $ 74.27 $ 0.07
Institutional 3,201.17 0.046 148.42 0.15
*Single Family and Multi-Family Community are assessed an impact fee per unit as shown in the "Maximum
Impact Fee" column. Multi-Family Dormitory is assessed an impact fee per bed using the average beds per
dormitory (5.254 beds/dorm unit)
Capacity and Impact Fees Comparison-See Handout
49
Capacity and Impact Fees Comparison-See Handout
50
Process For Update
•Review with Staff, Consultant, Committee
▫Will take multiple meetings and input
Recommendation to adopt Impact Fee Analysis
Recommendation on final fees to city council
•Present to City Council in a work meeting
City Council to set a public hearing
Fee changes and public hearing to be advertised in
Newspaper and public notified
•Public Hearing
After input from public, City Council to decide on Final
Drafts of Impact Fee Analysis and Fees
Adoption of such with passage of a resolution/ordinances?
Changes Based on Current Draft
•Last Impact Fee Update in March 2017
•Review Cost Comparison