roadway impact fees
TRANSCRIPT
Roadway Impact Fees Roadway Impact Fees Council Workshop #6Council Workshop #6October 13, 2016October 13, 2016
Presentation OverviewPresentation Overview1.1. Roadway BackgroundRoadway Background
Land Use AssumptionsLand Use AssumptionsCapital Improvements Plan Capital Improvements Plan – Maximum Calculated Fees w/ Detailed FinancialsMaximum Calculated Fees w/ Detailed Financials
2.2. Roadway Fees by Land UseRoadway Fees by Land Use– Comparison Cities’ FeesComparison Cities’ Fees– Staff Recommended Fees Staff Recommended Fees
3.3. Fee & Credit ExamplesFee & Credit Examples4.4. IFAC Written CommentsIFAC Written Comments5.5. Discussion & DirectionDiscussion & Direction
Roadway Needs (CIP)Roadway Needs (CIP) Full Build-Out T-Plan (City)Full Build-Out T-Plan (City) = $290M= $290M 10-yr Needs10-yr Needs = $217M= $217M Attributable 10-yr Growth Attributable 10-yr Growth = $143M= $143M
(66%)(66%) Eligible Recovery 10-yr Eligible Recovery 10-yr = $134M= $134M (94%)(94%)
City will continue to look to new and City will continue to look to new and increased funding sources: increased funding sources: – Council Directed Roadway Impact Fees be studied Council Directed Roadway Impact Fees be studied
and initiated this formal process as one sourceand initiated this formal process as one source– Otherwise, Roads will not be built, LOS decreasesOtherwise, Roads will not be built, LOS decreases
Roadway Impact Fee – CIP
Maximum Calculated Maximum Calculated FeesFees
Roads ARoads A $4,244/SF House$4,244/SF House ($1,061/Veh-Mile) ($1,061/Veh-Mile)
Roads BRoads B $4,288/SF House$4,288/SF House ($1,072/Veh-Mile) ($1,072/Veh-Mile)
Roads CRoads C $10,224/SF House$10,224/SF House ($2,556/Veh-Mile) ($2,556/Veh-Mile)
Roads DRoads D $16,148/SF House$16,148/SF House ($4,037/Veh-Mile) ($4,037/Veh-Mile)
Recommended Recommended Roadway Impact Roadway Impact FeesFees
““Flat” across all four areas for equityFlat” across all four areas for equity Residential Fees 15% of Max Residential Fees 15% of Max (Area C)(Area C)
– $1500 Single Family House$1500 Single Family House Non-Residential Fees 3% of Max Non-Residential Fees 3% of Max (Area C)(Area C)
– Actual Fees Vary by Land Use/Business TypeActual Fees Vary by Land Use/Business Type Staff believes the Market can bear the Staff believes the Market can bear the
Recommended FeesRecommended Fees– Council could adjust the % in future if neededCouncil could adjust the % in future if needed
Recommended FeesRecommended Fees% of Max Fees by Area% of Max Fees by Area
Service Areas
Recommended Residential
$375/VM
RecommendedNon-Residential
$80/VM
A 35% 7.5%
B 35% 7.5%
C 15% 3%
D 9% 2%
Roadway Costs and Roadway Costs and FeesFees
Full Build-Out T-Plan (City)Full Build-Out T-Plan (City) = $290M= $290M 10-yr Needs10-yr Needs = $217M= $217M Attributable 10-yr Growth Attributable 10-yr Growth = $143M= $143M Eligible Recovery 10-yr Eligible Recovery 10-yr = $134M= $134M
10-yr Collection Amount:10-yr Collection Amount: ““Max” Fees Max” Fees = $134M= $134M ““Recommended” Fees Recommended” Fees = $14M= $14M (10%)(10%)
Roadway Fees by Land Roadway Fees by Land UseUse
Comparison Cities Comparison Cities for Roadway Impact for Roadway Impact FeesFees
DentonDenton Mansfield Mansfield FriscoFrisco Fort WorthFort Worth New BraunfelsNew Braunfels
Comparison Cities Comparison Cities Roadway Impact FeesRoadway Impact Fees
City Max Fee Unit*($/Vehicle
Mile)
Adopted Residential($/Vehicle
Mile)
Adopted Non-Residential($/Vehicle
Mile)College Station
(Recommended)$2,182 / VM $375 / VM
($1,500 SF Home)
$80 / VM
New Braunfels $1,056 / VM $375 / VM($1,875 SF
Home)
$102 / VM
Denton $2,002 / VM $408.16 / VM($2,000 SF
Home)
$306.12 / VM
Mansfield $904 / VM $550 / VM($2,200 SF
Home)
$300 / VM
Frisco $1,060 / VM $636 / VM($3,816 SF
Home)
$636 / VM
Fort Worth $1,866 / VM $500 / VM($3,000 SF
Home)
$375 / VM
* Average Max Fee Unit
Comparison Cities’ Comparison Cities’ Example Example DevelopmentsDevelopments
Fees & CreditsFees & Credits Developments receive credit toward Developments receive credit toward
Roadway Impact Fees for construction of Roadway Impact Fees for construction of Major Collectors and aboveMajor Collectors and above
System Improvements receive credit System Improvements receive credit (Public – i.e. Major Collector, Signal, etc.)(Public – i.e. Major Collector, Signal, etc.)
Site Improvements do Site Improvements do notnot receive credit receive credit (Private – i.e. Driveways, DW Decel Lanes, (Private – i.e. Driveways, DW Decel Lanes, etc.)etc.)
May not owe any feeMay not owe any fee Lowe’s / Lakeway Dr ExampleLowe’s / Lakeway Dr Example
IFAC Written IFAC Written CommentsComments
Provided in Council PacketProvided in Council Packet IFAC Representative IFAC Representative
– Commissioner Jerome RektorikCommissioner Jerome Rektorik
Discussion and DirectionDiscussion and Directionto Staff for Ord Preparationto Staff for Ord Preparation
1.1. Adopt FeesAdopt Fees??– Staff Recommended FeesStaff Recommended Fees– OtherOther
2.2. Absolute Fee CapsAbsolute Fee Caps??– All or Specific Land UsesAll or Specific Land Uses
3.3. ExemptionsExemptions??– Specific Land UsesSpecific Land Uses
4.4. PhasedPhased??– 2 Year 2 Year
5.5. Discussion & DirectionDiscussion & Direction
Impact Fee Calculations
LUE = Living Unit Equivalent (connection for a single family home)
Eligible CIP Cost = 10-year capital cost (2016 – 2026)
Rate Credit = Chapter 395 requirements: reduce the eligible CIP cost by 50% [or] perform a credit analysis to determine the percent of utility bill used for growth CIP
Service Unit Growth = Derived from land use assumptions for 10-year growth in LUEs
Eligible CIP Cost – Rate Credit Impact Fee Per LUE = Service Unit Growth
Impact Fee Equation:
Maximum Maximum Calculated Calculated
FeesFeesWater Water $2,917/SF House$2,917/SF House $500/SF House $500/SF HouseSewerSewer $5,519/SF House$5,519/SF House $3,000/SF House $3,000/SF HouseRoads ARoads A $4,244/SF House$4,244/SF House $1,500/SF House $1,500/SF HouseRoads BRoads B $4,288/SF House$4,288/SF House $1,500/SF House $1,500/SF HouseRoads CRoads C $10,224/SF House$10,224/SF House $1,500/SF House $1,500/SF HouseRoads DRoads D $16,148/SF House$16,148/SF House $1,500/SF House $1,500/SF House
TotalsTotals $12K-$24K/SF House $5K/SF House $12K-$24K/SF House $5K/SF House
Staff Staff RecommendeRecommende
ddFeesFees
Maximum Roadway Maximum Roadway Example Impact FeesExample Impact Fees
Real World Example 1Real World Example 1
Land Use Intensity/Units Impact FeeFree Standing Discount Superstore 114,768 ft2 $433,823.04
Shopping Center 29,760 ft2 $88,052.40High-Turnover Sit-Down Restaurant 19,600 ft2 $98,931.00
Gasoline/Service Station
18 Fueling Positions $32,535.00
Total $653,341.44
Constructed 2-lanes and made intersection improvements
100% Credit
Real World Example 2Real World Example 2Developer constructed 2 lane divided facility. Paid no Impact Fee.
Developer constructed 4 lane divided facility. Paid no Impact Fee.
1Developer constructed roundabouts. Paid no Impact Fee.
City participation
Maximum Calculated Maximum Calculated FeesFees
Land Use Assumptions Land Use Assumptions (adopted)(adopted) Capital Improvement Plan Capital Improvement Plan (adopted)(adopted) Detailed Financial AnalysisDetailed Financial Analysis
– Financing CostsFinancing Costs– Interest EarningsInterest Earnings– CreditsCredits
W/WW – Utility RatesW/WW – Utility Rates Roadway – Ad Valorem TaxesRoadway – Ad Valorem Taxes
50% W/WW50% W/WWExample Impact FeesExample Impact Fees
IFACs Discussion & Q/AIFACs Discussion & Q/A
Dr. James Gaines, TAMU Real Estate Dr. James Gaines, TAMU Real Estate OfficeOffice
Richard Weatherly, Freese and NicholsRichard Weatherly, Freese and Nichols Jeff Whitaker, Kimley HornJeff Whitaker, Kimley Horn City StaffCity Staff
IFACs’ Comments IFACs’ Comments RecordedRecorded on Staff Recommended Fees on Staff Recommended Fees
Water/Wastewater IFACWater/Wastewater IFAC– WaterWater $500/SF House $500/SF House– WastewaterWastewater$3,000/SF House$3,000/SF House
Roadway IFACRoadway IFAC– Roads Roads $1,500/SF House$1,500/SF House
Other CitiesOther Cities 2012 Duncan National I.F. Study2012 Duncan National I.F. Study
– 28 States with Impact Fees, 271 jurisdictions28 States with Impact Fees, 271 jurisdictions– 2012 National Averages per Single Family2012 National Averages per Single Family
Roads $3,228 Roads $3,228 Water $3,863Water $3,863 Sanitary $3,725Sanitary $3,725
– 8 Texas Cities averages lower than National8 Texas Cities averages lower than National 2014 KHA Metroplex Survey2014 KHA Metroplex Survey
– 35 Metroplex Cities with Roadway Impact Fees35 Metroplex Cities with Roadway Impact Fees– Average Roadway IF per Single Family ~$2,200Average Roadway IF per Single Family ~$2,200
Prior CS Impact Fee Prior CS Impact Fee StudiesStudies 2010 Roadway Impact Fees2010 Roadway Impact Fees
– Based on Average $3,000 per SF HouseBased on Average $3,000 per SF House– If adopted in 2012, fees ~ $7.0 MIf adopted in 2012, fees ~ $7.0 M
2011 Citywide Utility Impact 2011 Citywide Utility Impact FeesFees– Based on Water $1,480 per SF HouseBased on Water $1,480 per SF House– Based on Sanitary $1,578 per SF HouseBased on Sanitary $1,578 per SF House– If adopted in 2012, fees ~ $7.7 MIf adopted in 2012, fees ~ $7.7 M