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Home My WebLink About2023 Presentation on Impact Fees-RexburgCity of Rexburg Development Impact Fees Update Introductions •Committee Members: ▫Bart Stevens ▫Sally Smith ▫Chad Richards ▫Dan Moldenhauer ▫Tami Geddes •Consultants in 2018-2020 ▫Zions Bank Susan Becker Megan Weber ▫Horrocks Engineering Jeff Mortimer •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 Advisory Committee-Title 67-82-05 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 Single Family Impact & Capacity Fees Multi-Family Community Impact & Capacity Fees Examples of Street Projects in Rexburg https://www.rexburg.org/finance/page/impact-and-capacity •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) •East Parkway Corridor-Right of Way Purchases Examples of Park Projects in Rexburg •Park Expansion-Riverside/Eagle/Evergreen •Parking Lot Expansions-Riverside/Evergreen/Nature •Pathways-Porter/Riverside/Smith Park/Rexburg to Sugar •Restroom Expansion-Porter/Smith •Additional multi-use fields-Riverside/Evergreen •Pathways-Rexburg to Sugar •Parks Shop •Expansion of New Quad Complex at Community Fields Examples of Park Projects in Rexburg Examples of Police Projects in Rexburg •Animal Shelter Building •Police Storage/Training Facility •Police Administration Building (Saving for this now) 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 May 2020 ZIONS PUBLIC FINANCE INC. HORROCKS ENGINEERS 27 •This list has not changed since 2020 •We did purchase additional ground in 2020 for the Teton River Park area, but this will not be fully developed for many more years •Also were donated a small piece of ground on 5 th West that will likely not be developed for several years as well 28 Parks and Trails –Existing LOS •2020 Adopted Study used 2018-2026 (Growth of 6,024) and 2018 to 2038 population growth data •2023 Study could use 2022-2030 (Growth of 7,549) and 2022 to 2042 population growth data •2020 Census caused change to data 29 Parks and Trails –Population Update Improvements added since last study update in 2020 included: •Baseball quad lights, restroom bldg., nature park bathroom, 8 playset features, and 1.07 acres of parking at baseball quad and nature park. •Received grants for these improvement totaling $485,807 that reduced the total cost of existing park improvements as well 30 Existing Park Improvements •New Trail R-15-Madison Jr. High Trail from Barney Dairy Road to 1st N (.37 miles) was added in 2022 with an ITD Tap Grant •New Total Length (miles) 7.94 miles •Two more trail lengths are forecasted to be completed in 2024 or later with the help of an ITD TAP Grant in the following locations: •2nd East to Riverside Park/Teton River (7.34% of cost will be paid by impact fees) •2nd East Under the Overpass on both sides of the Teton River (7.34% of cost will be paid by impact fees)31 Parks and Trails –Existing LOS 32 Parks and Trails –Existing LOS Desired Levels of Service (LOS) Parks 3.5 Acres/1000 People Trails .216 Miles/1000 People 33 Parks and Trails –Existing LOS Parks and Trails –Existing and Proposed LOS 34 2020 Data From Adopted Study 2023 Updated Data 35 Parks and Trails –Capital Improvements 2020 Data From Adopted Study 2023 Updated Data •Fund Balance Credit Reduced Significantly without increasing park acreage because we included the Community Quad Field Acreage in the 2020 study, even though a large portion of those funds were not expensed on the Community Quad Project until after the 2020 study 36 Parks and Trails –Proportionate Share Parks and Trails –Proportionate Share 37 •Staff does not recommend any changes to the Street Impact Fee in 2023 as compared to the rates set in the 2020 Adopted Study •Many of the projects identified in the study have not started construction •Of the $7.25 million of projects to be paid by the City with impact fees, only $616,176 have been completed thus far and paid with impact fees •It is also likely that construction costs are up significantly since the 2020 Adopted Study, but may come down if we enter a recession in the next few years •Probably best to update this capital plan and hire an outside engineer when we look at hiring an outside consultant again in 2026 or so •All transportation data on slides shown hereafter are from the 2020 Adopted Study 38 Transportation-Streets Transportation –Growth in Demand 39 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 40 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 41 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 42 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 43 •Staff looked at the Public Safety (Police and Fire) Impact Fees and recommends that we wait a few more years to update these studies •One reason for that is that much of the analysis is based on the call data from dispatch •Dispatch moved to a new system within the last year or more and we believe it will be best to wait until they have 3 years of history in the new system so we can get an average of those years •With it only being a few years, we don’t believe the capital needs would have changed significantly in those three years •Other factors to consider at the time of updating the call data and capital needs would be the cost/foot of construction 44 Public Safety Public Safety –Police SF per Call 45 Public Safety –Police Calls per Unit 46 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 Cost per Call 47 48 Public Safety –Police Proportionate Share per Unit 49 Public Safety –Fire Calls per Unit 50 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 51 Public Safety –Fire Cost per Call 52 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 53 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) Current Capacity and Impact Fees Summary 54 Staff Recommended Capacity and Impact Fees Summary 55 Process For Update •Review with Staff, Consultant (not always needed), Advisory Committee ▫May take multiple meetings and input Recommendation to adopt Impact Fee Analysis ▫Update in this case with interim review between full studies Recommendation on final fees to city council •Present to City Council in a regular or 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 any changes to Impact Fee Analysis and Fee Changes Adoption of such with passage of a resolution/ordinances normally required Recommended Changes From Committee TBD •Last Impact Fee Update in May of 2020