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Presentation to the City of Irwindale

Presentation to the City of Irwindale. Development Impact Fee Study Workshop. May 2018. What are impact fees?. One-time fees charged to new development, usually at building permit Not an ongoing fee charged to residents or business owners

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Presentation to the City of Irwindale

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  1. Presentation to the City of Irwindale Development Impact Fee Study Workshop May 2018

  2. What are impact fees? • One-time fees charged to new development, usually at building permit • Not an ongoing fee charged to residents or business owners • May be used to fund facilities needed to serve new development • Not for operations and maintenance costs • Not for the share of facilities serving existing development

  3. Conducting an Impact Fee Nexus Study

  4. Mitigation Fee Act Findings(Govt. Code §66001) • Key findings • Need: Development  Need for facilities • Benefit: Development  Use of revenue • Rough proportionality: Fee amount  development’s share of facility costs • Other findings • Purpose of fee • Use of fee revenue

  5. Impact Fees – Basic Methodology • Estimate existing development and future growth • Identify facility standards • Determine new facility needs and costs • Allocate share to accommodate growth • Identify alternative funding needs • Calculate fee by allocating costs per unit of new development

  6. Allocating Cost of New Facilities:Existing Inventory vs. System Plan System Plan Method (Increase Service Level) 150 140 Existing InventoryMethod Growth Share 130 120 New Facilities 110 100 100 Fee $ 90 Fee $ Future Demand New Facilities 90 Future Demand 80 Existing Deficiency 80 70 70 60 60 50 50 Non-fee $ 40 40 Existing Demand Existing Facilities Existing Demand Existing Facilities 30 30 20 20 10 10 0 0 Facility Demand Facility Needs Facility Needs Facility Demand

  7. Allocating Cost of New Facilities:Planned Facilities Method Planned Facilities Method • Use engineering models to demonstrate need for facilities to serve growth • Usually applicable for traffic & utility fees • May also have deficiencies that must be funded by alternative revenues 150 140 130 120 110 100 New Facilities 90 80 70 60 Fee $ Future Demand 50 40 30 20 10 0 Demand Facility Needs

  8. Facility Standards and Cost Allocation EXISTING INVENTORY Existing Facilities Existing Service Pop. PLANNED FACILITIES Planned Facilities New Service Pop. SYSTEM PLAN Existing + Planned Facilities Existing + New Service Pop.

  9. Irwindale Impact Fee Categories • Administrative Facilities • Libraries • Police Facilities • Parks and Recreation Facilities • Transportation Facilities • Storm Drain Facilities • Wastewater Facilities

  10. Major Planned Facilities • General Government Facilities • City Hall Expansion • Library Expansion • Public Safety Facilities • New Police Station and Emergency Operations Center • Traffic/Transportation Facilities • Major Intersection Improvements • Infrastructure Facilities • Live Oak Ave/Arrow Highway Storm Drain Improvements • Live Oak Ave/Arrow Highway Sewer Improvements

  11. Maximum Justified Impact Fee Schedule

  12. QUESTIONS

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