TRANSPORTATION AND PUBLIC AFETY IMPACT FEE ANALYSIS · 2010-07-19 · transportation and public...

TTRRAANNSSPPOORRTTAATTIIOONN AANNDD PPUUBBLLIICC SSAAFFEETTYY IIMMPPAACCTT FFEEEE AANNAALLYYSSIISS

FFOORR

HHYYRRUUMM CCIITTYY

CCAACCHHEE CCOOUUNNTTYY,, UUTTAAHH

APRIL 2007

Submitted by:

LLEEWWIISS YYOOUUNNGG RROOBBEERRTTSSOONN && BBUURRNNIINNGGHHAAMM,, IINNCC..

HYRUM CITY IMPACT FEE ANALYSIS APRIL 2007

2

Chapter 1 ...............................................................................................................................................3 Executive Summary .............................................................................................................................3

Public Safety Impact Fees ..............................................................................................................3 Transportation Impact Fees...........................................................................................................4

Chapter 2 ...............................................................................................................................................5 Overview of Impact fees.....................................................................................................................5

General Background .......................................................................................................................5 Required Elements for the Adoption of Impact Fees ...............................................................5

(1) Capital Facilities Plan............................................................................................................5 (2) Written Impact Fee and Proportionate Share Analysis ...................................................6 (3) Executive Summary ..............................................................................................................6 (5) Impact Fee Enactment.........................................................................................................6

Written Analysis Requirements .....................................................................................................6 Impact Fee Noticing and Adoption Requirements – 11-36-202..............................................8 Accounting For, Expenditure of, and Refund of Impact Fees.................................................8

Accounting For Impact Fees.....................................................................................................8 Expenditure of Impact Fees......................................................................................................9 Refunds of Impact Fees .............................................................................................................9

Challenging Impact fees – 11-36-401-402 ...................................................................................9 Professional Services Expenses ................................................................................................9

Chapter 3 .............................................................................................................................................10 Growth Projections ...........................................................................................................................10

Demand...........................................................................................................................................10 Chapter 4 .............................................................................................................................................12 Impact Fee Calculation – Public Safety (Fire/EMS) ....................................................................12

Background.....................................................................................................................................12 Calls for Service .............................................................................................................................12 Future Capital Projects .................................................................................................................14 Proposed Fire/EMS Impact Fee.................................................................................................15 Credits to Gross Fee .....................................................................................................................15 Other Credits..................................................................................................................................15 Accounting .....................................................................................................................................16

Chapter 5 .............................................................................................................................................17 Impact Fee Calculation - Roadways ................................................................................................17

Background.....................................................................................................................................17 Demand...........................................................................................................................................17 Future Capital Projects .................................................................................................................19 Buy-In Costs...................................................................................................................................19 Accounting .....................................................................................................................................20


3

CHAPTER 1 EXECUTIVE SUMMARY

PUBLIC SAFETY IMPACT FEES Between the years of 2001 through 2005, Hyrum City had a total of 455 fire/EMT calls for service: 217 from residential units and 104 from commercial businesses. The remaining 134 calls were from areas such as streets and sidewalks that cannot be assessed an impact fee. This results in an average (over the five-year period) of 43 calls for service originating from residential units, 21 calls coming from commercial units, and 27 calls from other locations. The fire impact fee can only assess calls originating from residential or commercial units. For this reason, only residential and commercial calls for service will be discussed in this analysis. With 1,974 residential units and 505 commercially developed acres this results in an average of 0.022 calls per residential unit, and 0.042 calls per commercial acre. At buildout, and using the current City boundaries, it is projected that there will be 4,815 residential units and 621 developed commercial acres. Holding the commercial and residential calls for service ratios constant through future buildout, the total number of additional calls that can be assessed impact fees at buildout are expected to increase by 68 calls, to a total of 132 assessable calls annually. Residential units will have a total of 106 calls for service at buildout, 63 of those being attributed to new growth. At buildout commercial will have a total of 26 calls for service annually; of those, five will be attributable to new growth. In order to serve the new demand, as well as meet the needs of existing development, the City will need to build a new, replacement fire station. The total cost of this station is estimated at $2,255,4371 ($2007). Residential development should pay for 80 percent of the cost of the station (as it will account for 80 percent of projected demand), and commercial development should pay for the remaining 20 percent of the station. The cost per call for residential is $17,086.64. The cost per residential unit is calculated by multiplying the cost per call by the average calls per unit (.022) to arrive at an impact fee of $375.91 per residential unit. The cost per commercial acre is calculated by multiplying the cost per call by the average calls per commercial acre (0.042) to arrive at a cost of $717.64 per acre, or $0.09 per building square foot, assuming a floor area ration (“FAR”) of 0.18. TABLE 1.1 IMPACT FEE CALCULATION

Impact Fee Residential Non-Residential Number of Future Calls 106 26

1 Original costs from Aqua Engineering were increased by 3.2 percent to account for inflation, plus professional costs for preparation of the study.


4

Impact Fee Residential Non-Residential Cost Per Call $17,086.64 $17,086.64 Average Calls Per Unit/Acre 0.022 0.042 Cost Per Call Unit/Acre $375.91 $717.64 Square Foot N/A $0.09

TRANSPORTATION IMPACT FEES Hyrum City asked Lewis Young Robertson and Burningham Inc. to assess new impact fees based off of the revised Roadway Capital Facilities Plan prepared by Aqua Engineering2. The update revised previous capital projects and increased their costs due to new estimates and general appreciation of construction. Since impact fees are based on capital facility plans, it is necessary to update the Hyrum roadway impact fees in accordance with the CFP. The impact fees assessed in this analysis affect only the areas located on the map in Appendix A. There are no roadway capital projects, attributable to new development, planned for other parts of the City at the present time. The impact fees calculated for the capital projects that are recommended are calculated by first taking the amount of $1,362,287.81,3 attributable to new development, and dividing by the 960 new households that will benefit from the new capital facilities. Included in the amount to be financed by impact fees is a $2,000 expense for the impact fee calculation expense. The result is an impact fee of $1,419.05 per household. TABLE 1.2: CALCULATION OF IMPACT FEES

Calculation of Impact Fee Total costs $ 1,362,287.81 Number of Households to Pay fee 960 Fee $ 1,419.05

2 Roadway Capital Facilities Plan Update, dated March 2006 3 Original costs from Aqua engineering were increased by 3.2% to account for inflation, plus professional costs for preparation of the study. New Development will pay for 68.57 percent of total costs.


5

CHAPTER 2 OVERVIEW OF IMPACT FEES

GENERAL BACKGROUND Impact fees are a tool that allows cities to make new development “pay its own way.” They are one-time payments that tie costs to responsible parties by establishing a direct relationship between the demands placed on services by new development. In other words, they reflect new development’s proportionate share of capital costs for public facilities. Before 1995, impact fees in Utah were governed by case law — much of it established by Utah courts (Banberry Development Corporation v. South Jordan). In 1995, the Utah legislature passed a statute with specifications limiting the types of impact fees and specific procedures for instituting such fees.4 This statute is referred to as the Impact Fees Act and is located in Section 11, Chapter 36 of the State of Utah Code. However, the guiding principle remains the same — that a reasonable relationship between fees imposed on development and the needs generated by the new development must still exist. The statute provides that impact fees be used for construction of new or expanded capital facilities (including a buy-in component for excess capacity in existing facilities) and that they are not allowed to make up deficiencies or pay for operations and maintenance expenditures. An impact fee is distinctly different from a tax, special assessment, building permit fee, hook-up fee, or other reasonable permit or application fee such as a conditional use or subdivision application fee. Impact fees serve three main purposes: (1) proportionally allocate the costs of future projects to the new development that they will be constructed to serve, (2) allow new customers to purchase equity in the existing system, and (3) perpetuate the historic level of service paid to growth related facilities. The basic impact fee methodology is essentially a blending of future project costs and the unused value/capacity of the existing system.

REQUIRED ELEMENTS FOR THE ADOPTION OF IMPACT FEES As mentioned earlier, local governments must pay strict attention to the requirements enumerated in the Impact Fees Act regarding the assessment of impact fees. The following documents must be prepared and completed before the City can legally commence public notice and adopt the proposed impact fees. (1) Capital Facilities Plan The Impact Fees Act requires that a city or district serving a population of 5,000 or greater have a Capital Facilities Plan prepared in coordination and compliance with its General Plan that identifies the demands that will be placed upon the existing and future facilities by new development and the means that the City will use to accommodate the

4 This statute is referred to as the Impact Fees Act and is found in Section 11, Chapter 36 of the Utah State Code.


6

additional demand.5 A Capital Facilities Plan, completed in compliance with Utah State legislation, has been prepared and will be adopted in conjunction with the Impact Fee Ordinance and Impact Fee Analysis.

(2) Written Impact Fee and Proportionate Share Analysis The written impact fee analysis is required under the Impact Fees Act and must identify the impacts placed on the facilities by development activity and how these impacts are reasonably related to the new development. The written impact fee analysis must include a proportionate share analysis, as described below, and clearly detail all cost components and the methodology used to calculate each impact fee.6

The Impact Fees Act requires that the written analysis include a Proportionate Share Analysis which is intended to equitably divide the capacity and costs of each facility identified in the Capital Facilities Plan between future and existing users relative to the benefit each group will receive from the improvement. (3) Executive Summary The Impact Fees Act requires that an Executive Summary of the impact fee analysis be prepared that clearly and concisely provides a brief overview of the proposed impact fee structure and the methodology and cost basis used to calculate the maximum allowable impact fees.7 (5) Impact Fee Enactment The Impact Fee Enactment, referred to in this analysis as the Ordinance, must be adopted by the City Council to enact the proposed fees. The Ordinance may not impose a fee higher than the maximum legal fee defined in the written analysis, but the Ordinance may adopt a fee that is lower than the maximum fee defined in this analysis.8

WRITTEN ANALYSIS REQUIREMENTS A written impact fee analysis is required for each fee. The analysis must identify direct impacts on system improvements of new development, demonstrate the relationship between needed system improvements and development activity, estimate proportionate share of costs (per lot, per unit) and clearly identify how the fee has been calculated. Specific areas where impact fees may be collected are outlined in the Impact Fees Act as follows [11-36-102(11)]:

Water rights and water supply; treatment and distribution facilities; Waste water collection and treatment facilities; Storm water, drainage and flood control facilities;

5 11-36-201(2)(e) 6 11-36-201(5)(a) 7 11-36-201(5)(c) 8 11-36-202(1)(a-b)


7

Municipal power facilities; Roadway facilities; Parks, recreation facilities, open space, and trails; and Public safety facilities

Our methodology and approach to the written analysis is outlined as follows:

Estimate Demand (Need) for Facilities. An important element is to review the preliminary land-use recommendations to determine factors that will be reflected as affecting demand. These include:

• Land use type (e.g., residential, retail, manufacturing) • Land use intensity (e.g., dwellings/acre, FAR, employment density) • Land use functional type (e.g., convenience retail, shopping goods retail) • Location (e.g., downtown, suburban, rural) • Occupancy (e.g., persons per dwelling unit) • Building size (e.g., SF, #bedrooms, #seats) • Peaking factor (e.g., design demand for peak or average demand) Estimate Physical Facilities Needed. The Capital Facilities Plan forms the basis

for determining physical facilities needed. Each area of the plan is assumed to have converted demand into physical facilities by applying service standards that are based on either geographical distribution (such as radii) or operating capacity/unit. The Capital Facilities Plan should also have estimated current capacity using all existing facilities by evaluating current usage and deriving capacity available to new development. The recommendations of each element essentially determine if there is a “gap” between existing capacity and need.

Estimate Cost of Facilities Needed. The analysis relies on the Capital Facilities

Plan to establish a cost of the entire facility including land, buildings, equipment, site development, planning, architect & engineering fees, miles or linear feet of roadway, etc.

Apportion Cost to Get Gross Fee. Using the information developed in the steps

outlined above, including total capacity of facilities needed to serve this development, the analysis will estimate demand (usage) for new development as a proportion of total capacity of facilities needed to serve new development. The demand will then be applied to total cost of facilities needed to serve this development so as to derive a proportionate cost assignable to new development.

Adjust Gross Fee for Other Contributing Revenues. Only those fees that are used

to finance the capital cost of the same types of facilities for which impact fees are charged and that are paid by the development’s occupants are considered as contributing revenue. The present value of these payments is calculated and deducted from the gross fee. If past payments are significant, they should also be deducted from the gross fee.


8

Adjust Gross Fee for Developer Contributions. Eligible developer contributions are set forth, with a procedure for establishing the value of the donated land and facilities.

IMPACT FEE NOTICING AND ADOPTION REQUIREMENTS – 11-36-202 The actual adoption of an impact fee must be done by Ordinance. This Ordinance must include the following elements enumerated in Utah State Code Title 11, Chapter 36, Sections 1-5:

A provision that establishes one or more service area(s); A schedule of impact fees for each type of system improvement that shows the formula by which the impact fee was derived;

Provisions that will allow the City to adjust or modify the existing impact fee to take into account any changes or unusual circumstances to ensure that the impact fee is administered fairly; and

Provisions that will allow local governments to adjust and modify the impact fee if following studies or research determine that it should be different.

A reasonable notice of the public hearing must be published in a local newspaper at least fourteen (14) days before the actual hearing. A copy of the proposed Impact Fee Ordinance, the Written Impact Fee Analysis, Executive Summary, and Capital Facilities Plans must be made available to the public during the 14-day noticing period for public review and inspection. Copies of these four items must be posted in designated public places which include the City offices and any public libraries within the City’s jurisdiction. At the end of the 14-day noticing period, a public hearing shall be held at which point the City Council may adopt, amend and adopt, or reject the Impact Fee Ordinance and proposed fee schedule. Following the adoption, Utah Code Section 10-3-711 and 712 requires that a summary of the Ordinance be published in order for it to become effective.

ACCOUNTING FOR, EXPENDITURE OF, AND REFUND OF IMPACT FEES Accounting For Impact Fees The Impact Fees Act requires that any entity that imposes impact fees establish an interest bearing ledger account for each type of public facility for which an impact fee is collected. All impact fee receipts must be deposited into the appropriate account. Any interest earned in each account must remain in the corresponding account. At the end of each fiscal year, the City must prepare a report on each fund or account showing the source and amount of all monies collected, earned and received by each account and each expenditure made from each account. Once the City has received payment, the impact fees will be deposited into each specific Impact Fee Fund and used to defray capital costs as identified herein and in the CFP.


9

Expenditure of Impact Fees The City may only expend impact fees for system improvements identified in the Capital Facilities Plan.9 All funds collected must be spent or encumbered within six years of collection or the City must provide an extraordinary or compelling reason why the fees must be held longer and provide an ultimate date by which the impact fees collected will be expended.10 The improvements that are financed through impact fees must be owned and operated by the City or another local public entity with which the City has contracted or will contract for services and improvements that will be operated on the City’s behalf. Refunds of Impact Fees The City is required to refund any impact fees collected plus interest earned since their collection if: 1) a developer who has paid impact fees does not proceed with the development activity and has filed a written request for a refund, 2) the fees have not been spent or encumbered within the six year period, or 3) the new development which has paid impact fees has not created an impact upon the system.11

CHALLENGING IMPACT FEES – 11-36-401-402 The Impact Fees Act allows any person, entity, or property owner within the service area, or any organization, association, or corporation owning property within the service area to challenge the accuracy of the calculated fee or procedure by which the fee was adopted. Any person or entity challenging the impact fees may file a written request for information including the written analysis, Capital Facilities Plan, Ordinance and other information related to the fee calculation from the City imposing the fee. This information must be provided within two weeks. An individual has the right to challenge the noticing or procedures of enacting any impact fee adopted on or after July 1, 2000. To remedy any adoption procedure found to be faulty, the City must repeat the noticing and adoption process. If the fees are found to be inaccurate, the City must revise the fee structure to correct any miscalculation and repeat the adoption process. If the fees are found to be incorrect and have already been collected, the City must refund the difference between what was collected and what should have been collected plus interest earned since the time of collection on these funds. The parties may settle any impact fee dispute through arbitration. Professional Services Expenses Impact fees may legally recover the costs of professional expenses relating to the preparation of the Capital Facilities Plans and Impact Fee Analysis. As development occurs and capital project planning is periodically revised, the lists of capital projects and their costs may be different than the information utilized in this analysis. For this reason, it is assumed that the City will perform updates to the analysis every three to four years.

9 11-36-302(1a) 10 11-36-302(2b) 11 11-36-303(1-3)


10

CHAPTER 3

GROWTH PROJECTIONS

DEMAND The City as of 2006 had a population of approximately 7,403 residents. Projections for residential growth are based on undeveloped land estimates provided by the City. Buildout for the City is estimated to have a population of approximately 18,056 persons and 4,815 residential units. Historical growth in building permits for the past five years has been solid, ranging between 1.6 percent and 2.8 percent annually. TABLE 3.1: HISTORICAL RESIDENTIAL GROWTH

Building Permit Growth

Year 2000 2001 2002 2003 2004 2005 2006* New Residential Units 33 37 53 42 30 35 Total Residential Units 1,744 1,777 1,814 1,867 1,909 1,939 1,974 Percent Change 1.86% 2.04% 2.84% 2.20% 1.55% 1.77% Source: University of Utah Bureau of Economic and Business Research * Through December 31st 2006.

TABLE 3.2: POPULATION PROJECTIONS

Year Population Projections1

Rate of Growth

Absolute Growth Year Population

Projections1 Rate of Growth

Absolute Growth

2006 7,403 2024 12,882 2.42% 304 2007 7,707 4.11% 304 2025 13,186 2.36% 304 2008 8,011 3.95% 304 2026 13,490 2.31% 304 2009 8,316 3.80% 304 2027 13,795 2.26% 304 2010 8,620 3.66% 304 2028 14,099 2.21% 304 2011 8,924 3.53% 304 2029 14,404 2.16% 304 2012 9,229 3.41% 304 2030 14,708 2.11% 304 2013 9,533 3.30% 304 2031 15,012 2.07% 304 2014 9,838 3.19% 304 2032 15,317 2.03% 304 2015 10,142 3.09% 304 2033 15,621 1.99% 304 2016 10,446 3.00% 304 2034 15,926 1.95% 304 2017 10,751 2.91% 304 2035 16,230 1.91% 304 2018 11,055 2.83% 304 2036 16,534 1.88% 304 2019 11,360 2.75% 304 2037 16,839 1.84% 304 2020 11,664 2.68% 304 2038 17,143 1.81% 304 2021 11,968 2.61% 304 2039 17,447 1.78% 304 2022 12,273 2.54% 304 2040 17,752 1.74% 304 2023 12,577 2.48% 304 2041 18,056 1.71% 304

1. Based on the BEBR records for single and multi-family dwelling units. Straight line growth has been assumed through buildout.


11

The projected land use summaries for both residential and commercial development are shown in the following table. Throughout this analysis residential projections are based on the number of dwelling units while commercial/industrial growth is measured by building square footage. The current residential density per acre throughout the City is approximately 1.55 residential units per acre; the additional residential units to be built in the city will have an average density of approximately 3.09, therefore buildout density will approximate 2.2 units per acre on average.

TABLE 3.3: RESIDENTIAL AND COMMERCIAL GROWTH PROJECTIONS

Commercial and Residential Development Existing New Development Buildout Units/sqft Acres Units/sqft Acres Units/sqft Acres Residential 1,974 1,270 2,841 918 4,815 2,188 Commercial1 2,640,677 505 606,355 116 3,247,032 621 Total 1,409 1,400 2,809 Population 7,403 10,654 18,056 1. Commercial Includes E.A. Miller's 359.18 acres of industrial development, the remaining 146 acres are based off of the September 2003 Impact Fees and adjusted at the same growth rate as residential units.

2. Source: Land use estimates from the 2003 Impact Fees Analysis; Residential development is stated in number of units while commercial development is stated in square feet of land area.


12

CHAPTER 4 IMPACT FEE CALCULATION – PUBLIC SAFETY (FIRE/EMS)

BACKGROUND The Impact Fees Act allows cities and towns to charge impact fees for ”public safety facilities”12 as long as there exists a reasonable relationship between the fees imposed and the needs generated by new development. A public safety facility, as defined by Utah State law, means (i) “a building constructed or leased to house police, fire, or other public safety entities; or (ii) a fire suppression vehicle with a ladder reach of at least 75 feet, costing in excess of $1,250,000, that is necessary for fire suppression in commercial areas with one or more buildings at least five stories high.” The purpose of this impact fee is to calculate new development’s fair share of the capital costs for the new fire station in Hyrum. The City currently has one fire facility which is insufficient for future needs. With future population and commercial growth, Hyrum has determined that it will need a larger station to replace the existing smaller station. The capital facilities plan (“CFP”) completed by Aqua Engineering provided estimates for current and future usage, as well as the cost for the future fire facility. The calculations in this analysis are based off of the estimates found in the CFP.

CALLS FOR SERVICE Calls for service generally increase with population and commercial growth. Data from the years 2001-2005 for calls for service are provided in table 4.1. During the years ranging from 2001 through 2004 the calls for service decreased by a total of five percent; 2005 had a slight increase of two percent from the 2004 calls for service. Since calls for service have historically fluctuated, we have used the average calls for service over this five-year period to estimate future calls. TABLE 4.1: HISTORICAL CALLS FOR SERVICE

Hyrum City Calls for Service

Year Residential Commercial Other Total 2001 52 29 32 113 2002 51 25 18 94 2003 32 18 33 83 2004 43 19 29 91 2005 39 13 22 74

Total 217 104 134 455 Average 43 21 27 91 Note: Calls for service provided by Hyrum City and include only calls for service in the Hyrum City boundaries.

12 Utah Code [11-36-102(12)(g)]


13

Hyrum City Calls for Service Year Residential Commercial Other Total

Source: Hyrum City Fire Department.

From 2001 through the year 2005 there were a total of 455 calls for service in Hyrum; 217 of these calls originated from residential units and 104 from commercial. The average number of calls per year are 43 residential, 21 commercial and 27 other (including street origination or calls that cannot be traced to a specific residential or commercial location). Not including the “other” category, residential calls account for 67 percent of calls for service, while commercial is 33 percent of the total. The impact fee is calculated by first deriving the average number of calls for both residential (per unit) and commercial (per acre); these averages were 0.022 and 0.042 respectively.13 TABLE 4.2: EXISTING CONDITIONS IN HYRUM CITY

Existing - 2006 Residential Nonresidential Total Residential Units/Commercial Acres 1,974 505 N/A Calls for service- 5 year average 43 21 64 Percent of Total Calls 67% 33% 100% Average calls per residence or acre 0.022 0.042 N/A

It is projected that at buildout there will be approximately 4,815 residential units and 621 developed commercial acres. Using the average calls for service per residence, residential units are projected to produce 106 calls for service, or 80 percent of the total calls; commercial businesses will produce 26 calls for service, or 20 percent of total calls. TABLE 4.3: PROJECTED CALLS FOR SERVICE AT BUILDOUT

Buildout

Residential Nonresidential Total Residential Units or Commercial Acres 4,815 621 N/A Average calls per residence or acre 0.022 0.042 N/A Projected calls for service* 106 26 132 Percent of Total Calls 80% 20% 100% *Includes residential and commercial origination only; does not include "other" category

There will be an increase of 2,841 residential units and 116 acres of commercial development at buildout. The new residential development in Hyrum will account for 63 calls for service of the total 68 calls for service; this is approximately 93 percent of the future calls for service. New commercial development will have an increase of 5 calls for service at buildout. 13 The average per unit or acre is calculated as follows: calls for service/(total units or acres/units)


14

TABLE 4.4: IMPACT OF NEW DEVELOPMENT

New Development Residential Nonresidential Total

Residential Units or Commercial Acres 2,841 116 N/A Average calls per residence or acre 0.022 0.042 N/A New calls for service 63 5 68 Percent of Total Calls - New Dev Only 93% 7%

Residential calls are expected to increase by nearly two and one-half times at buildout; commercial calls are expected to increase at a somewhat slower rate. This increased demand, from both residential and commercial will place increased demands on the City for fire capital facilities.

FUTURE CAPITAL PROJECTS

The National Fire Prevention Agency (“NFPA”) states that the first response station should be located within two miles of residential and one and one-half miles of commercial. These distances are to be calculated along travel routes – not “as the crow flies.” The Occupational Safety and Health Administration (“OSHA”) has established guidelines for fire control and extinguishment that require a minimum of four firefighters to be on the fire scene before an interior fire attack can be initiated. The new fire station planned for Hyrum will allow these guidelines to be met. Currently Hyrum has one fire facility. The purpose of this impact fee is to calculate new development’s fair share of the replacement and expansion station. The city currently owns the land where the fire facility will be built; therefore no land costs have been included in this analysis. The estimated cost in 2007 dollars for the new fire facility (building) is $2,052,592. The capital costs also include $198,845 in engineering costs and a $4,000 professional fees expense which is to account for the cost of the fire impact fee analysis, making the total capital costs to be considered for impact fees $2,255,437.

TABLE 4.5: CAPITAL PROJECT COSTS

Total Capital Costs Costs

Cost per fire station (bldg only) $ 2,052,592 Engineering 198,845 Subtotal 2,251,437 Professional fees 4,000 Total $ 2,255,437 Source: Hyrum City Capital Facilities Plan Update 2/21/06 by Aqua Engineering Inc. , LYRB; costs inflated at 3.2 percent.


15

PROPOSED FIRE/EMS IMPACT FEE The fire/EMS impact fees that are proposed in this analysis will be assessed to all geographic locations within the City. The cost per residential unit is $375.91, while the cost per commercial square foot is $0.09.14 TABLE 7: IMPACT FEES

Residential Non-ResidentialNumber of Future Calls 106 26Cost Per Call $17,086.64 $17,086.64Average Calls Per Unit/Acre 0.022 0.042Cost Per Call Unit/Acre $375.91 $717.64Square Foot N/A $0.09

Impact Fee

The impact fees to be assessed as shown in the preceding table are calculated in two steps. Total costs are then divided by the total calls for service at buildout to arrive at an average cost per call. Then average cost per call is multiplied by the average calls per residential unit/commercial acre in order to calculate the impact fee of $375.91 per residential unit and $717.64 per commercial acre. Commercial impact fees are taken one step further in order to assess a building on a square foot basis. Dividing the cost per acre by the FAR used in this analysis (0.18), we arrive at the fee of $0.09 per building square foot.

CREDITS TO GROSS FEE

There is no debt outstanding for fire/EMS in Hyrum. Therefore, no credits need to be made to the impact fee for future debt payments.

OTHER CREDITS At the discretion of the City, a developer may choose to donate infrastructure, labor or supplies for the building of the fire facility in lieu of the entire impact fee or a portion thereof as long as the donation is consistent with the City’s capital facilities plan. The City would determine if a potential donation would meet City needs for fire infrastructure and the fair market value of such donation to the City. The impact fees calculated above represent the maximum supportable impact fees for fire/EMS that are allowable by law. The City may choose to adopt any impact fee that is less than those described above. 14 The commercial square foot cost is calculated based on an FAR of 0.18.


16

The City may also choose to enact a provision that exempts low-income housing and other development activities with broad public purposes from the public safety fire impact fee and establish a source or sources of funds (other than impact fees) to pay the fire costs of that development activity.

ACCOUNTING The funds that are collected from fire impact fees should be placed into an account specifically for fire impact fees.


17

CHAPTER 5 IMPACT FEE CALCULATION - ROADWAYS

BACKGROUND This impact fees analysis incorporates the revised Roadway Capital Facilities Plan prepared by Aqua Engineering.15 The update has revised previous capital projects and increased their costs due to new estimates and general appreciation of construction. Since impact fees are based on capital facility plans, it is necessary to update the Hyrum roadway impact fees in accordance with the CFP. These impact fees affect only the areas located on the map in Appendix A. There are no roadway capital projects, attributable to new development, planned for other parts of the City at the present time.

DEMAND Development on the east side of Hyrum will require the City to build new roads for the new residents. Without any new development, these roads would not need to be built. There are currently 1,974 households in Hyrum, an increase of 230 households from the 1,744 reported in the 2000 Census. This increase is calculated by adding in the new housing permits (from January 2000 through December 2006) from the Bureau of Economic and Business Research at the University of Utah. The 2000 Census also estimated the average persons per household at 3.75, thus giving a 2006 population of approximately 7,403. Table 5.2 below projects the population through buildout for Hyrum City. TABLE 5.1: PERSONS PER HOUSEHOLD

Persons per Household Owner 3.83 Renter 3.31 Average Household Size 3.75 Source: United States Census 2000

TABLE 5.2: POPULATION PROJECTIONS


Rate of Growth



Absolute Growth

2006 7,403 2024 12,882 2.42% 304 2007 7,707 4.11% 304 2025 13,186 2.36% 304 2008 8,011 3.95% 304 2026 13,490 2.31% 304 2009 8,316 3.80% 304 2027 13,795 2.26% 304

15 Roadway Capital Facilities Plan Update, dated March 2006


18


Rate of Growth



Absolute Growth

2010 8,620 3.66% 304 2028 14,099 2.21% 304 2011 8,924 3.53% 304 2029 14,404 2.16% 304 2012 9,229 3.41% 304 2030 14,708 2.11% 304 2013 9,533 3.30% 304 2031 15,012 2.07% 304 2014 9,838 3.19% 304 2032 15,317 2.03% 304 2015 10,142 3.09% 304 2033 15,621 1.99% 304 2016 10,446 3.00% 304 2034 15,926 1.95% 304 2017 10,751 2.91% 304 2035 16,230 1.91% 304 2018 11,055 2.83% 304 2036 16,534 1.88% 304 2019 11,360 2.75% 304 2037 16,839 1.84% 304 2020 11,664 2.68% 304 2038 17,143 1.81% 304 2021 11,968 2.61% 304 2039 17,447 1.78% 304 2022 12,273 2.54% 304 2040 17,752 1.74% 304 2023 12,577 2.48% 304 2041 18,056 1.71% 304

1. Based on the BEBR records for single and multi-family dwelling units. Straight line growth has been assumed through buildout.

At buildout it is estimated that there will be a total of 4,815 households in Hyrum, with a total population of 18,056.16 Current housing densities are 1.55 units per acre. Future construction will develop at an average of 3.09 residential units per acre; this will increase the City’s overall average density to approximately 2.2 residential units per acre.17 TABLE 5.3: RESIDENTIAL BUILDING PERMITS BY YEAR

TABLE 5.4: RESIDENTIAL DEVELOPMENT

Residential Development Existing New Development Buildout Units Acres Units Acres Units Acres Residential 1,974 1,270 2,841 918 4,815 2,188 Population 7,403 10,654 18,056

1. Commercial Includes E.A. Miller's 359.18 acres of industrial development, the remaining 146 acres are based off of the September 2003 Impact Fees and adjusted at the same growth rate as residential units.

16 Population projections based off of the estimated number of residential units through buildout multiplied by the current average number of persons per household. Population projections are based on the current boundaries for the City. 17 Housing densities are calculated as follows: (Existing units) 1,974 / 1,270 (acres) = 1.55. The same method was used for both new development and buildout estimates.

Bureau of Economic and Business Research Year 2000 2001 2002 2003 2004 2005 2006*

New Residential Units 33 37 53 42 30 35 Total Residential Units 1,744 1,777 1,814 1,867 1,909 1,939 1,974 Percent Change 1.86% 2.04% 2.84% 2.20% 1.55% 1.77% Source: University of Utah Bureau of Economic and Business Research * Through December 31st 2006.


19

The capital projects in the updated Roadway Capital Facilities Plan for Hyrum are built or being built for new development on the eastern side of Hyrum. For this reason the roadway impact fee is a specific fee for the 96018 additional homes planned for that geographic region. Currently, there are 440 existing homes in the area. The total number of homes or ERUs that will benefit from the roadway projects is 1,400 units. The 960 units to be added to the area before buildout account for 68.57 percent of the total; for this reason new development will need to pay for 68.57 percent of the total costs for the capital projects.

FUTURE CAPITAL PROJECTS The Roadway CFP dated March 2006 contains three phases of capital projects. The first two phases have already been developed and for this reason will be considered as buy-in costs for the impact fees. Phase III is the last remaining new capital project that will be implemented in the eastern area of the City. Phase III will connect the first two phases to Hammer Road. The estimated costs are $485,659.20 for construction, $48,565.92 for construction contingency, and $48,565.92 for engineering and management. The total cost for the third phase is $582,791.04. The costs of phase III are summarized in the following table. TABLE 5.5: SUMMARY OF CAPITAL PROJECT COSTS

BUY-IN COSTS Phases I and II were implemented in 2005 and 2006 respectively. Since the life span of these projects is estimated to be 30 years, the original total costs of the two projects have been depreciated to account for the age. Table 5.6 shows phases I and II with their original total costs, the year they were constructed, and the depreciated values. The total depreciated value of the first two phases $1,401, 003.33. 18 Total number of additional homes to be built within the development through buildout as provided by Aqua engineers.

Hyrum Transportation Future Capital Projects

Phase Project Description Cost Engineering & Management Contingencies Total

III 1300 East to Hammer Road $ 485,659.20 $ 48,565.92 $ 48,565.92 $ 582,791.04 Total $ 485,659.20 $ 48,565.92 $ 48,565.92 $ 582,791.04


20

Table 5.6: Depreciated Value of Existing Capital Projects

Phase Project Description Year Built Total Cost Life Remaining Life

Percent Remaining Remaining Value

I 1170 East to 1300 South 2005 507,837.49$ 30 28 93.33% 473,964.73$ II SR 165 to 1170 East 2006 958,972.38 30 29 96.67% 927,038.60 Total 1,466,809.87$ 1,401,003.33$

Hyrum Transportation Buy-in Costs

The Utah Impact Fees Act states that in calculating the impact fee, each local political subdivision may include the cost for planning, surveying, and engineering fees for services provided for and directly related to the construction of the system improvements [11-36-202 (1)(c)(iii)]. Included in the analysis of the Hyrum roadways impact fees is $2,000 for professional fees. Since the remaining homes to be developed account for 68.57 percent of the total homes that will benefit from the three capital projects, new development will only be responsible for 68.57 percent of the total costs. The cost to new development for phase III is $399,619.82;19 the total buy-in costs for the first two phases are $960,667.99.20 The total costs attributable to new development are $1,360,287.81. Table 5.7 shows the breakout of costs for new development including the $2,000 fee for professional expenses. TABLE 5.7: TOTAL COSTS TO BE ASSESSED

Future Capital Project Costs 399,619.82$ Buy-In Costs 960,667.99 Professional Fees 2,000 Total 1,362,287.81$ * Capital Project Costs inflated to 2007 dollars by 3.2 percent.

Total Costs to be Assessed

TABLE 5.8: IMPACT FEE CALCULATION

Total costs 1,362,287.81$ Number of Households to Pay fee 960 Fee 1,419.05$

Calculation of Impact Fee

The Impact Fee for Roadways is calculated as follows: Total costs to be assessed in the impact fee ($1,362,287.81) / 960 (number of households) to pay the fee = $1,419.05.

ACCOUNTING The roadways fees that are collected shall be placed into a separate account for roadways only. No credits need to be made for past contributions from the general fund to the

19 Calculated as follows $582,791.04 * 68.57 percent = $399,619.82 20 Calculated as follows $1,401,003.33 * 68.57 percent = $960,667.99


21

capital facilities listed in this analysis. No bonds are currently outstanding that need to be credited against this fee.

TRANSPORTATION AND PUBLIC AFETY IMPACT FEE ANALYSIS · 2010-07-19 · transportation and public...

Documents

Transcript of TRANSPORTATION AND PUBLIC AFETY IMPACT FEE ANALYSIS · 2010-07-19 · transportation and public...