1. 4701 Sangamore Road S240 | Bethesda, MD 20816 | (800) 424-4318 Ext. 12 1

2. Development Impact Fee Update Town Council Meeting 2 4701 Sangamore Road S240 | Bethesda, MD 20816 | (800) 424-4318 Ext. 12 July 1, 2015

3. Background 30-year consulting practice serving local government nationwide o Impact fees/infrastructure funding strategies o  Fiscal impact studies o  Economic impact analyses o  Market feasibility o  Special taxes and assessments 4701 Sangamore Road S240 | Bethesda, MD 20816 | (800) 424-4318 Ext. 12 3

4. Development Impact Fee Update 4 Development Impact Fee Categories o Police o Vehicle Circulation o Multi-Modal Circulation o Storm Drainage o General Facilities & Equipment o Parkland and Recreation o Airport* 4701 Sangamore Road S240 | Bethesda, MD 20816 | (800) 424-4318 Ext. 12 Not Included in Development Impact Fee Update o Child Care o Fire District o Library *Airport fee discontinued

5. Development Impact Fee Ground Rules 5 o Not a revenue raising mechanism, but a way to meet growth- related infrastructure needs o It’s a land use regulation o To provide infrastructure as growth occurs o New development’s proportionate share of capital cost for system improvements o Demographic analysis and development projections o Infrastructure needs and cost analysis o Fee payers must receive a benefit o Geographic service areas o Accounting and expenditure controls 4701 Sangamore Road S240 | Bethesda, MD 20816 | (800) 424-4318 Ext. 12

6. General Development Impact Fee Methodologies o Cost Recovery (past) o Oversized and unique facilities o Incremental Expansion (present) o Formula-based approach documents level of service with both  and qualitative measures o Plan-Based (future) o Common for utilities but can also be used for other public facilities with non-impact fee funding 6 4701 Sangamore Road S240 | Bethesda, MD 20816 | (800) 424-4318 Ext. 12

7. Methodology Process Summary 7 4701 Sangamore Road S240 | Bethesda, MD 20816 | (800) 424-4318 Ext. 12 Cost Recovery Remaining Debt/Value Multiplied by Growth Share DIF-Eligible Share Divided by Projected Demand Unit Increase Cost per Demand Unit Incremental Expansion Current Inventory Divided by Current Demand Units Current LOS Multiplied by Projected Demand Unit Increase Multiplied by Cost per Unit (Minus Other Funding) Growth-Related Expenditure Divided by Projected Demand Unit Increase Cost per Demand Unit Plan-Based Estimated Cost (From Available Engineering and Planning Documents) Minus Other FundingMultiplied by Growth Share DIF-Eligible Share Divided by Projected Demand Unit Increase Cost per Demand Unit

8. 8 4701 Sangamore Road S240 | Bethesda, MD 20816 | (800) 424-4318 Ext. 12 Fee Components, Methods, & Cost Allocation

9. Proposed Police Development Impact Fees 9 4701 Sangamore Road S240 | Bethesda, MD 20816 | (800) 424-4318 Ext. 12

10. Proposed Vehicle Circulation System Development Impact Fees 10 4701 Sangamore Road S240 | Bethesda, MD 20816 | (800) 424-4318 Ext. 12

11. Proposed Multi-Modal Circulation System Development Impact Fees 11 4701 Sangamore Road S240 | Bethesda, MD 20816 | (800) 424-4318 Ext. 12

12. Proposed Storm Drainage System Development Impact Fees 12 4701 Sangamore Road S240 | Bethesda, MD 20816 | (800) 424-4318 Ext. 12

13. Proposed General Facilities & Equipment Development Impact Fees 13 4701 Sangamore Road S240 | Bethesda, MD 20816 | (800) 424-4318 Ext. 12

14. Proposed Parkland and Recreation Development Impact Fees 14 4701 Sangamore Road S240 | Bethesda, MD 20816 | (800) 424-4318 Ext. 12

15. Proposed Development Impact Fees 15 4701 Sangamore Road S240 | Bethesda, MD 20816 | (800) 424-4318 Ext. 12

16. 4701 Sangamore Road S240 | Bethesda, MD 20816 | (800) 424-4318 Ext. 12 22