1. Improvement-Driven Fees
National Impact Fee Roundtable
Arlington, Virginia
October 5, 2006
Joe Colgan
Colgan Consulting Corporation

2. Newtonian World View Plan-Based = Improvements-Driven
Capacity-Based = Demand Driven = Consumption-Driven
Standard-Based = Incremental Expansion (Similar to Capacity-Based)
Buy-In or Recoupment Approach Combines with Other Methods
Joe Colgan/Colgan Consulting Corporation
Slide 2

3. Plan-Based Fees
Typically Used for Facilities That Must Be Designed to a Plan
Requires Both a Development Plan AND a Matching Facility Master Plan
Plan Changes May Invalidate Fees
Cost of Unused Capacity May Be Covered by the Fees
Joe Colgan/Colgan Consulting Corporation
Slide 3

4. Capacity-Based Fees Development Plan Not Required
Need Facility Capacity and Cost
Cost of Unused Capacity Not Covered by the Fees
Traditionally Used for Water and Wastewater Facilities – Often Used for Traffic Impact Fees
Joe Colgan/Colgan Consulting Corporation
Slide 4

5. Standard-Based Fees Development Plan Not Required
Standard Translates Directly to Fee, e.g. Park Acres per Capita & Cost per Acre
Potential Benefit Nexus Issues
Appropriate for Parks, Libraries, Police, Administrative Facilities that Can be Expanded Incrementally As Required to Serve New Development
Joe Colgan/Colgan Consulting Corporation
Slide 5

6. Why Do We Need More Than One Method Anyway?
Relationship Between Development & Facility Needs Varies by Facility Type
Need to Fit Different Circumstances
Need to Work with Available Information
Finding Most Conservative Result
Finding Least Conservative Result
Joe Colgan/Colgan Consulting Corporation
Slide 6

7. Toward Relativity Do We Really Need More Than One Method?
Within Limits, Different Methods Can Be Warped Into One Another
Should the Newtonian View of Impact Fee Methodology Become Obsolete?
Is There an Equivalent of the Space-Time Continuum for Impact Fees?
Joe Colgan/Colgan Consulting Corporation
Slide 7

8. Random Musings It’s All About Determining Growth’s Share of Cost
Capacity vs. Consumption: Randy’s Example
Orange County (CA) Fire Authority Example
Indirect Impacts and Cost Shifting
Joe Colgan/Colgan Consulting Corporation
Slide 8