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Improvement-Driven Fees

Improvement-Driven Fees

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Improvement-Driven Fees

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  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

  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

  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

  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

  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

  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

  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