Current Trends In Impact Fees National Impact Fee Roundtable October 21, 2004 Robert D. Spencer

2 Outline Consolidated public facility fee Consolidated public facility fee Broader benefit areas Broader benefit areas Broader use of fees Broader use of fees Fees for public services Fees for public services State participation in financing fees State participation in financing fees Other trends Other trends

3 Consolidated Public Facility Fee Combine multiple facility types into a single fee Combine multiple facility types into a single fee Advantages Advantages –Simplify program administration –Balance surplus capacity in some facility areas with deficient capacity in others

4 Barriers To A Consolidated Fee State statute constraints? State statute constraints? –California Mitigation Fee Act: impact fees can be used for “capital facilities, public services, and community amenities” Case law constraints? Case law constraints? Political constraints? Political constraints? –Gives more control to councils and managers –Takes control from departments –Developers suspicious

5 City of Gilroy Before Before –Police fee –Fire fee –Parks & recreation fee –Libraries fee –General public facilities fee (civic center, corp. yard) After After –Public Facilities Fee

6 Examples of Consolidated Fees (Calif.) Carpin- teria Gilroy Palm- dale Rose- ville San Leandro Union City Other Fac. XXXXXX FireXXXX LibrariesXXXXX Park Land X Park Imps. XX PoliceXXXXX RecreationXXXXX Transport.XXX

7 Single Fee and Burden Nexus Test Service population: nonresidential (worker) demand weighted by amount of facilities by type Service population: nonresidential (worker) demand weighted by amount of facilities by type Common demand standards Common demand standards –Land (acres/capita) –Buildings (sq. ft./capita) –Other: equipment, special facilities, etc. ($/capita) Single cost standard ($/capita) Single cost standard ($/capita)

8 Single Fee and Other Nexus Tests Benefit Benefit –Use fee revenues for any public facility that expands capacity of citywide system Proportionality Proportionality –Single cost standard ($/capita) –Fee schedule ($/du or sq. ft.) –Burden allocation to development projects based on service population

9 Broader Benefit Areas Fees collected and spent Fees collected and spent –Jurisdiction-wide –Region-wide Advantages Advantages –Larger revenue base = fund facilities sooner –Focus revenues on high priority projects –Avoid multiple funds with little funding capacity –Simplify administration

10 Broader Range of Fees Affordable Housing Affordable Housing –In-lieu –Linkage Art in public places Art in public places Childcare Childcare Equalization fees (equalize assessment burden) Equalization fees (equalize assessment burden) Environmental “facilities” Environmental “facilities” –Air pollution mitigation –Habitat –Open space

11 Fees For Public Services One-time impacts One-time impacts –Construction truck impacts on road maintenance Ongoing costs Ongoing costs –San Francisco Transit Impact Development Fee

12 Statewide Financing Impact Fee Reimbursement Program Reimburses property owners for impact fees collected when building permit issued Impact Fee Pre-Funding Program Advance funding of impact fees when tentative map is approved Statewide Community Infrastructure Program (SCIP)

13 Other Trends Residential fees per sq. ft.? Residential fees per sq. ft.? Increasing state regulation? Increasing state regulation? New Supreme Court cases? New Supreme Court cases?