HomeMy WebLinkAboutRexburg Fire CIP and IFA 12.5.2019 Final Draft
City of Rexburg
DRAFT
Fire Capital Improvement Plan and
Impact Fee Analysis
3 December 2019
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City of Rexburg | Fire CIP and Impact Fee Analysis
Contents
Contents ........................................................................................................................................................ 2
Section I: Introduction to the Fire Capital Improvement Plan and Impact Fee Analysis .............................. 3
Project Overview ....................................................................................................................................... 3
Impact Fee Service Area ............................................................................................................................ 3
Population and Fire Call Data.................................................................................................................... 3
Land Use Analysis ...................................................................................................................................... 4
Service Units ............................................................................................................................................. 4
Call Data Analysis ...................................................................................................................................... 5
Undefined Calls ..................................................................................................................................... 5
Calls to Public Areas, Roads, and Non-Qualifying Calls Generated by Non-Residents ......................... 6
Calls per Unit Calculation ...................................................................................................................... 6
Land Use and Future Calls ......................................................................................................................... 6
Section II: Fire Capital Improvement Plan .................................................................................................... 8
System Improvements .............................................................................................................................. 8
Existing Equipment and Capital Facilities ................................................................................................. 8
Existing Equipment Inventory ............................................................................................................... 8
Existing Capital Facilities ....................................................................................................................... 8
Future Fire Facilities .................................................................................................................................. 9
Existing Deficiencies .............................................................................................................................. 9
Schedule for Improvements .................................................................................................................. 9
Funding Future Capital Facilities ............................................................................................................... 9
Historic Funding Sources ....................................................................................................................... 9
Bond Funding ........................................................................................................................................ 9
Impact Fees ........................................................................................................................................... 9
Summary of Time and Price Differential ................................................................................................. 10
Equity of Impact Fees .............................................................................................................................. 10
Section III: Fire Impact Fee Analysis ............................................................................................................ 11
Impact Fee Overview .............................................................................................................................. 11
Fire Level of Service ................................................................................................................................ 11
Proportionate Share Analysis .................................................................................................................. 11
Calculation of Proportionate Share .................................................................................................... 12
Impact Fee Cost per Call ......................................................................................................................... 12
Impact Fee Cost per Development Unit.................................................................................................. 13
Credits Owed to Development ............................................................................................................... 13
Grant Funding ..................................................................................................................................... 13
Developer Dedications and Exactions ................................................................................................. 13
Deficiency Credit ................................................................................................................................. 14
Impact Fee Fund Balance Credit ......................................................................................................... 14
Individual Impact Fee Assessment .......................................................................................................... 14
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City of Rexburg | Fire CIP and Impact Fee Analysis
Section I: Introduction to the Fire Capital Improvement Plan and Impact Fee
Analysis
Project Overview
City of Rexburg (the City) has commissioned Zions Public Finance, Inc. (Zions) to put together a Capital
Improvement Plan (CIP) and Impact Fee Analysis (IFA) prior to updating fire development impact fees
authorized by Title 67, Chapter 82, Idaho Code, known as the Idaho Development Impact Fee Act (Impact
Fee Act).
Impact Fee Service Area
Rexburg is a city located in Madison County, Idaho. The City is the county seat and the County’s largest
city. The 2018 the population was estimated to be 35,093. Rexburg is home to Brigham Young University-
Idaho.
The purpose of the Fire Capital Improvement Plan is to provide Rexburg with substantive planning for
future capital infrastructure for which development impact fees may be used as a funding source including
facility sizing, costs, funding, and allocation to growth. This information will be used as the basis of
calculating the fire impact fee. A CIP must be prepared before the City can adopt and assess an impact
fee. This CIP and IFA have been prepared for a single fire service area (Service Area) which encompasses
the incorporated boundaries of the City of Rexburg. The cost per call is the relationship between the
Service Area’s population and annual fire calls generated within the Service Area’s boundaries and will be
discussed in Section III: Fire Impact Fee Analysis.
Population and Fire Call Data
2018 is the baseline year used in this analysis and the average growth in calls between 2016 and 2018 and
projected 2037 calls were used to estimate the growth in annual calls that will occur in the Service Area
throughout the impact fee planning horizon. Between 2016 and 2018 there was an average 757 annual
calls received which is expected to grow to 1,132 annual calls by 2037 resulting in an increase of 375 calls
as shown in Figure 1.
FIGURE 1: PROJECTIONS IN POPULATION AND FIRE CALLS
Historic and Future Population Projections
Year Rexburg
Population Total Fire Calls Average Calls
per Capita % Call Growth
3-Year Call Avg (2016-2018) 35,093 757 0.0216 8.2%
2019 35,840 776 0.0217 2.6%
2020 36,603 796 0.0218 2.5%
2021 37,383 816 0.0218 2.5%
2022 38,179 836 0.0219 2.4%
2023 38,992 855 0.0219 2.4%
2024 39,688 875 0.0220 2.3%
2025 40,396 895 0.0222 2.3%
2026 41,117 915 0.0222 2.2%
2027 41,850 934 0.0223 2.2%
2028 42,597 954 0.0224 2.1%
2037 52,507 1,132 0.0216
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City of Rexburg | Fire CIP and Impact Fee Analysis
Growth in Fire Calls
3 Year Avg (2016-2018) 757
2037 Calls 1,132
% Growth in Calls 33%
Future Calls from Growth 375
Land Use Analysis
Figure 2 shows the current and proposed residential and non-residential units. A projection of future land
use units was used to calculate the future calls shown previously in Figure 1. For residential uses, the
current persons per household figures were applied to the 2037 population to determine the projected
future residential units. It is estimated that the City will grow to 14,580 residential units by 2037.
The current non-residential square footage per capita estimates were applied to the future population
projections to estimate the future non-residential square footage. The non-residential units, divided by
commercial, government, or institutional land uses will increase to 12,698,000 SF by 2037.
FIGURE 2: EXISTING AND FUTURE LAND USE
Existing Development Future Development to
be Added
Existing + Growth at
2037
Residential Units Population Total Units Population Units Population Total Units
Single-Family Residence 10,646 2,645 5,283 1,313 15,929 3,958
Multi-Family Community
Housing 10,723 4,487 5,321 2,227 16,044 6,714
Multi-Family Dormitory
Housing 13,724 2,612 6,810 1,296 20,534 3,908
Total 35,093 9,744 17,414 4,836 52,507 14,580
Private Non-Residential
Units
SF per
Capita
Estimated
kSF
SF per
Capita
Estimated
kSF
SF per
Capita
Estimated
kSF
Commercial 124.5 4,369 124.5 2,168 124.5 6,536
Government 10.6 373 10.6 185 10.6 558
Institutional* 106.7 3,745 106.7 1,858 106.7 5,603
Total 241.8 8,487 241.8 4,211 241.8 12,698
* Institutional includes churches, schools and private nonprofit uses
Source: Zions Public Finance Land Use Analysis, City of Rexburg
Service Units
A service unit is defined by the Impact Fees Act as a standardized measure of consumption, use,
generation or discharge attributable to an individual unit of development and calculated in accordance
with generally accepted engineering or planning standards for a particular category of capital
improvements. In the case of fire impact fees, an emergency call is the basic unit for measuring the
demand for services for each land use. The impact fee is calculated based on the “cost per call” and applied
to each land use category according to the historic calls per unit generated by that land use category.
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City of Rexburg | Fire CIP and Impact Fee Analysis
Call Data Analysis
The following tables detail the cost per call calculation by showing the existing number of calls that went
to each land use category (Figures 3 through 5), the calls per unit of each land use category (Figure 6), and
the number of future calls that are estimated to be generated by 2037 (Figure 7).
FIGURE 3: RAW FIRE CALL DATA
Category 2016 2017 2018 Average
(2016-2018 Calls) % of Total
Calls to Private Land Uses
Single-Family Residence 73 85 93 84 11%
Multi-Family Community Housing 128 123 205 152 20%
Multi-Family Dormitory Housing 145 141 138 141 19%
Commercial 81 68 102 84 11%
Institutional * 118 117 195 143 19%
Calls Public Land Uses/Other
Public Buildings and Land 11 10 12 11 1%
Traffic 108 121 116 115 15%
Mutual Aid/ Out of Area 0 0 0 0 0%
Undefined ** 36 34 10 27 4%
All Calls 700 699 871 757 100%
Undefined Calls
Figure 4 builds upon Figure 3 by allocating undefined calls to a land use category. Undefined calls are calls
that were unable to be geocoded due to lack of available information. One example of an undefined call
would be a call where an incorrect address may have been recorded when the call was received. To
estimate the land use distribution for undefined calls, the undefined calls are assigned to a land use using
the same proportions as the direct calls. For example, 11% of all defined calls received by the City between
2016-2018 were direct calls to single-family residences. Therefore, 11% of undefined calls were assumed
to have also been generated by single-family residences as shown in Figure 4 below.
FIGURE 4: ALLOCATION OF UNDEFINED CALLS
Land Use Type
Calls to
Direct Land
Use
% to Direct
Land Use
Undefined Calls
to Land Uses
Total Calls (After
Undefined
Allocation)
Residential
Single-Family Residence 84 11% 3 87
Multi-Family Community Housing 152 21% 6 158
Multi-Family Dormitory Housing 141 19% 5 146
Non-Residential
Commercial 84 11% 3 87
Institutional 143 20% 5 149
Public Land Uses
Public Buildings and Land 11 2% 0.4 11
Roads 115 16% 4 119
Mutual Aid - 0% - -
Undefined 27 0% - -
Total 757 100% 27 757
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City of Rexburg | Fire CIP and Impact Fee Analysis
Calls to Public Areas, Roads, and Non-Qualifying Calls Generated by Non-Residents
Similar to how undefined calls were allocated to specific land uses, calls to public land uses (roads and
public areas) were also allocated to direct land uses. Public land use calls are generated by either
residential developments, non-residential developments, or by non-residents passing through the Service
Area.
FIGURE 5: FINAL CALL DATA DISTRIBUTION BY LAND USE
Total
Calls
% of
Total
Calls
Direct Calls
Allocated to
Land Use
Indirect
Public
Areas
Roads Non-City
Resident
Summary
of Total
Calls
Direct Calls Allocated to
Land Use 604 83% 604 - - - 604
Public Buildings and
Land 11 2% - 10 - 1 11
Roads 115 16% - - 91 24 115
Mutual Aid - 0% - - - - -
Undefined 27 N/A 22 0.4 4 - 27
Total 757 100% 626 10 95 25 757
Calls per Unit Calculation
Figure 6 shows the number of calls assigned to each land use type according to a land use call analysis
performed by the City of Rexburg (see Figure 3). Once the final call distributions were determined, the
number of calls generated by each land use, referred to as the “calls per unit”, could be determined by
dividing the calls to each land use by the corresponding land use units.
FIGURE 6: FIRE CALLS PER UNIT
Land Use Type
Avg 2016-
2018 Calls
to Direct
Land Use
Undefined
Calls to
Land Use
Calls to
Public
Areas
Calls
to
Roads
Total
Calls
(2016-
2018)
Existing
Land Use Calls
Residential per Unit
Single-Family Residence 84 3 1 13 101 2,645 0.038
Multi-Family Community
Housing 152 6 3 24 184 4,487 0.041
Multi-Family Dormitory
Housing 141 5 2 22 171 2,612 0.066
Non-Residential per kSF
Commercial 84 3 1 13 101 4,369 0.023
Institutional* 143 5 2 23 174 3,745 0.046
Non-Qualifying Calls
Calls Outside Service Area - - 1 24 25
Total 604 22 11 119 757
* Institutional includes churches, schools and private nonprofit uses
Land Use and Future Calls
The calls per unit by land use in Figure 6 are multiplied by the number of future units shown as Figure 7.
This results in the number of future fire calls that will be created by new development within a twenty-
year planning horizon. By 2037 it is anticipated that 375 future fire calls will be added.
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City of Rexburg | Fire CIP and Impact Fee Analysis
FIGURE 7: EXISTING AND FUTURE FIRE CALLS – BASED ON HISTORIC LAND USE
Projected Future Fire Service Calls - Current to 2037
Development Type Future Units Calls per Unit Calls Added at
2037*
Residential
Single-Family Residence 1,313 0.038 50
Multi-Family Community Housing 2,227 0.041 91
Multi-Family Dormitory Housing 1,296 0.066 85
Non-Residential
General Commercial 2,168 0.023 50
Institutional 1,858 0.046 86
Non-Resident Calls
Development Type Future Population Calls per Capita Calls Added at
2037*
Calls Outside Service Area 17,414 0.001 12
Total Undeveloped Future Private Fire Calls 375
*Projected Future Calls are based only on future units in addition to existing calls from existing units
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City of Rexburg | Fire CIP and Impact Fee Analysis
Section II: Fire Capital Improvement Plan
System Improvements
The Impact Fee Act allows that an impact fee be collected for the cost to construct system improvements
which have capacity to serve future growth. A system improvement is defined as an improvement which
will provide service to the service area as a whole, not an improvement than only serves one specific
development. The system improvement must also have a useful life of ten or more years. System
improvements which are impact fee eligible may be “buy-in” to the City’s existing inventory of equipment
and facilities or have their capacity needs met by future improvements within a twenty-year planning
horizon. The impact fee should be calculated to assess an impact fee for the proportionate share of system
improvement costs available to serve future growth. The Fire CIP documents the City’s impact fee
qualifying existing and future expenditures.
Existing Equipment and Capital Facilities
Existing Equipment Inventory
Figure 8 summarizes the City’s existing fire apparatus inventory. The City is only responsible for a portion
of the total equipment/apparatus costs and the impact fee eligible cost has been reduced accordingly to
reflect the City’s share.
FIGURE 8: EXISTING APPARATUS INVENTORY
Equipment / Apparatus Inventory
Asset Description Total Historic Cost City Share % Historic Apparatus /
Equipment Cost
Fire Equipment $ 1,650,840 50% $ 825,420
Fire Office Equipment 55,824 33.33% 18,608
Fire Vehicles 2,555,095 50% 1,277,548
Totals: $ 4,261,759 $ 2,121,575
Existing Capital Facilities
The City is currently served by Madison County Fire Station #1. The City was responsible for funding 1/3rd
of the station building and office equipment costs as shown in Figure 9.
FIGURE 9: EXISTING CAPITAL FACILITIES
Existing Fire Facilities
Total Cost Acres SF of Space
% Impact Fee
Eligible (City
Portion of
Costs)
Impact Fee
Eligible Cost
Madison County Fire Station
#1 (1/3rd Funded by Rexburg) $ 2,814,428 0.70 21,213 33.333% $ 938,143
Total $ 2,814,428 0.70 21,213 $ 938,143
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City of Rexburg | Fire CIP and Impact Fee Analysis
Future Fire Facilities
Existing Deficiencies
The demand placed on existing fire services by new development activity is attributed to growth in
emergency calls. This growth will increase demands upon fire services, requiring an increase in number of
fire professionals and public safety equipment and apparatus. This will in turn cause a need for more
station floor space for offices, storage areas, training rooms, housing apparatus, etc. The existing station
has some capacity to serve future growth, so no existing deficiencies currently exist, but to meet the
demand created by future development the City will need to expand its facilities.
Schedule for Improvements
Within the impact fee planning horizon, the City plans to build one new station. Once the fire project is
completed the City anticipates having sufficient capacity to meet the 2037 facility floor space needs.
Figure 10 shows the future capital facilities planned for fire. The City will be responsible for 1/3 rd of the
future facility construction costs.
FIGURE 10: SUMMARY OF FUTURE FIRE FACILITIES
Project Year
Floor
space
(SF)
Cost
per
SF*
Land
(Acres)
PV Project
Expense $
Construction
Year
Expense**
% to
City (1/3
of Total)
City Cost
Future Fire Facilities Within 8 Years
Future West Side
Area Facility 2026 7,000 $306 $ 2,142,000 $ 2,634,390 33.333% $ 878,130
West Side Area
Facility Land 2026 1.0 150,000 $184,481 33.333% 61,494
Total 7,000 $ 2,292,000 $ 2,818,871 $ 939,624
*Cost per SF provided by City of Rexburg
** 3% Annual Inflation
Funding Future Capital Facilities
Historic Funding Sources
Fire capital projects can be funded in a variety of ways including tax revenues, impact fees, grants, bonds,
vehicle leases, etc. Tax revenues—property and sales—are the primary source of revenue for the City. The
City has authority to collect a portion of the property and sales taxes within its boundaries. The revenues
collected should be used primarily to cover the operational expenses, non-impact fee qualifying capital
expenses, and other general needs of the fire department.
Bond Funding
There are no outstanding bonds related to the fire department and no future bonds are currently
proposed. If a bond is proposed and approved in the future by City residents, then the impact fees will be
revised at that time to include any additional bond costs.
Impact Fees
Impact fees have become an ideal mechanism for funding growth-related infrastructure. It is
recommended that impact fees be used to fund growth-related capital projects as they help to maintain
an adequate level of service and prevent existing users from subsidizing the capital needs for new growth.
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City of Rexburg | Fire CIP and Impact Fee Analysis
Summary of Time and Price Differential
The Impact Fees Act allows for the inclusion of a time and price differential to ensure that the costs
incurred at a later date are accurately calculated. To account for this, 2019 project cost estimates for
future projects are inflated at 3% annually to a future value cost based on the year of anticipated
construction.
Equity of Impact Fees
The impact fee calculations are structured to fund 100% of the growth-related portion of system
improvements as presented in the impact fee analysis. Even so, there may be years that impact fee
revenues cannot cover the annual growth-related expenses. Other revenues will be used to make up any
annual deficits given timing gaps in development or other factors. Any borrowed funds are to be repaid
in their entirety through impact fees at the time that impact fee funds become available.
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City of Rexburg | Fire CIP and Impact Fee Analysis
Section III: Fire Impact Fee Analysis
Impact Fee Overview
The impact fee for fire is calculated using growth projections, current call data and future call projections,
current and estimated future land use, and existing and future apparatus and facilities costs which have
been described in Sections I & II of this document. The final components necessary to complete the impact
fee analysis include: level of service (LOS), proportionate share analysis, impact fee cost per call, impact
fee cost per development unit, and proposed credits to development. Each of those components are
discussed in the following section.
Fire Level of Service
The level of service is the measure of the relationship between service capacity and service demand for
public facilities. In the case of fire impact fees that means the total building square footage (capacity)
relative to the number of fire calls the department receives each year (service demand).
Unlike a utility such as culinary water where capacity can often be added to the system gradually by
upsizing an existing line segment, public safety floor space has to be built station-by-station not line-by-
line. New fire stations or expansions must be done well ahead of the increase in call volume that the
station expansion is designed to serve. Therefore, we look at the call volume the stations are being built
to serve (rather than the LOS observed today) as the true measure of LOS. In the case of the fire impact
fee, the future capital projects identified in the CIP are needed to serve a 2037 population of the Service
Area. Any square foot per call calculations that exceed the twenty-year LOS are considered unused excess
capacity that will be utilized once the Service Area reaches 2037. Figure 11 shows the 2037 calls level of
service of 24.93 square feet (SF) per call which is lower than the currently observed LOS of 28.03 SF per
call. This demonstrates that there is currently excess capacity in the existing fire station square footage
and the true LOS measure will be the LOS at 2037.
FIGURE 11: CURRENT AND PROJECTED FIRE LEVEL OF SERVICE
Time Frame Floor Space (SF) Current/ Projected
Calls SF per Call
Current 21,213 757 28.03
2023 21,213 855 24.80
2026 28,213 915 30.85
2037 28,213 1,132 24.93
Impact Fee Level of Service Used 28,213 1,132 24.93
Proportionate Share Analysis
As part of this analysis, the Impact Fees Act requires that the calculated impact fee be roughly
proportionate and reasonably related to the development activity. Ideally, implementing an impact fee to
pay for needed infrastructure places a burden on future users that is equal to the burden that was borne
in the past by existing users. To determine the fair share an impact fee payer should pay for emergency
services system capacity, a proportionate share analysis was performed as described below.
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City of Rexburg | Fire CIP and Impact Fee Analysis
Calculation of Proportionate Share
Figure 12 displays the current and future facility floor space and the calls they will serve. With this
information, it is possible to calculate the percentage that will serve new growth, and thus the portion
that future growth will be expected to fund.
FIGURE 12: PROPORTIONATE SHARE CALCULATION
Capital Project Time Frame
Added
Station
Floorspace
% of
Buildout
Floor Space
Station
Capacities
(Call)
3-year
Avg
Calls
Future
Calls
% to
Serve
Existing
Users
% to
Serve
Future
Growth
Existing Floor Space 21,213 75.2% 851 757 94 88.9% 11.1%
Construction Within 8 Years 7,000 24.8% 281 - 281 0.0% 100.0%
Construction Beyond 8 Years - - - - - 0.0% 0.0%
8 Years 28,213 100.0% 1,132 757 375
Existing Floor Space 21,213 75.2% 851 757 94 88.9% 11.1%
Construction Within 8 Years 7,000 24.8% 281 - 281 0.0% 100.0%
Existing and Within 8 Years 28,213 100.0% 1,132 757
Impact Fee Cost per Call
Once the proportionate share has been determined the impact fee cost per call can be calculated. The
impact fee cost per call divides the impact fee qualifying costs to new growth by the total future calls new
growth will generate. The value found in the “% Growth Related” column comes directly from the
proportionate share analysis “% to Serve Future Growth” column. The total impact fee qualifying cost is
$3,921,348 of which $1,200,425 pertains to new growth. This results in a cost per call of $3,201.17.
FIGURE 13: FIRE IMPACT COST PER CALL CALCULATION
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
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City of Rexburg | Fire CIP and Impact Fee Analysis
Impact Fee Cost per Development Unit
The impact fee is assessed to each user category based upon the historic calls per unit generated by that
land use. The Service Area’s observed annual fire calls per unit by development type are multiplied by the
impact fee cost per call to calculate the final impact fee per land use.
FIGURE 14: RECOMMENDED FIRE IMPACT FEE ASSESSMENT
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)
Credits Owed to Development
Certain circumstances may result in the need to provide a credit to development. Impact fee credits are
detailed below.
Grant Funding
Any improvement donated to the City which the City has no obligation to repay is assumed to be donated
to the Service Area’s residents through buildout. Therefore, if a capital facility is acquired through a grant
or another source that does not require the City to pay for the project, then the value of that improvement
would not be an impact fee qualifying cost. An impact fee should not be collected for a project or expense
otherwise covered through a grant without an appropriate credit. If any grant funding is received for
impact fee eligible expenses, then the impact fee calculation will be reviewed at the time that the funding
is received to account for any reduction in impact fee qualifying costs.
Developer Dedications and Exactions
Developer exactions are not the same as grants (which should be credited from the impact fee). If a
developer constructs a fire station, donates impact fee qualifying apparatus or equipment to the City, or
dedicates land within the development for fire, then the value of the dedication is credited against that
particular developer’s impact fee liability.
It is rare for developers to construct an entire fire station for a credit, but land dedication for a station or
training facility does sometimes occur. If the situation arises that a developer chooses to construct
facilities found in the CIP in-lieu of impact fees, appropriate arrangements must be made through
negotiation between the developer and the City on a case by case basis. All fire facilities and apparatus
are considered to be system improvements, not project improvements. Thus, an impact fee credit will be
due to the developer and the dedication/exaction will be classified in the inventory as if it had been funded
directly by the City through impact fees collected.
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City of Rexburg | Fire CIP and Impact Fee Analysis
If the value of the dedication/exaction is less than the development’s impact fee liability, the developer
will owe the balance of the liability to the City. If the value of the improvements dedicated is worth more
than the development’s impact fee liability, the City must reimburse the difference to the developer which
can be done using impact fee revenues collected from other developments benefitting from the system
improvement.
Deficiency Credit
When the LOS calculation indicates there is an existing deficiency it is generally appropriate to include a
deficiency credit in the impact fee calculation. The purpose of the deficiency credit is to avoid new growth
from being required to fund their own capacity through an impact fee while also having to help pay to
correct the deficiency for existing residents through other general revenue funds such as taxes and be
double charged for system capacity. To prevent this double charge, any appropriate deficiency credit is
subtracted from the total impact fees owed to account for any deficiency projects paid for through other
funding mechanisms.
The fire department level of service shows there is excess capacity in the existing station; therefore, no
existing deficiency credit is required at this time.
Impact Fee Fund Balance Credit
Credits are made for the existing fund balance in the fire impact fee account. The existing funds can be
used to offset the capital costs needed for future development and thus reduce the cost to new
development. The fire impact fee fund does have a positive fund balance, so an impact fee fund balance
credit was calculated. See “Miscellaneous” on Figure 13.
Individual Impact Fee Assessment
The Impact Fees Act states that the impact fee ordinance should include a process whereby the City shall
allow a developer, upon request by the developer, to provide a written individual assessment of the
proportionate share of development impact fees. The individual assessment process permits
consideration of studies, data, and any other relevant information submitted by the developer to adjust
the amount of the impact fee. For fire impact fees, the variable that would be reviewed in the individual
impact fee assessment would be the average annual fire calls generated by the proposed development.
Once the City and the developer have reviewed relevant information and determined the number of
average annual fire calls for the proposed development, then the City can calculate the individual impact
fee assessment using the formula in Figure 15.
FIGURE 15: INDIVIDUAL IMPACT FEE ASSESSMENT FORMULA
Fire Cost Per Call Impact Fee Assessed
$ 3,201.17 x # of Annual Calls Projected to be Created = Non-Standard
Impact Fee