Town Hall Meeting March 30: Impact Fees

City of Jerome
Town Hall Meeting:
Development Impact Fee Proposal

Tonight’s Objectives

• Public Dialogue: communication of ideas, preferences and concerns between Citizens and City Officials.
• Review the recommendations for Impact Fees made by the Citizen Advisory Committee and the P&Z Commission.
• Determine the policy direction for impact fees in Jerome.

Jerome’s Mission

• To provide public health and safety for all citizens, businesses and visitors with high quality, friendly and professional service.

Jerome’s Vision

• Driven to be Magic Valley's most welcoming, friendly and livable city; by drawing inspiration from our residents, embracing opportunity and taking pride in our heritage through progressive and professional leadership.

Jerome Impact Fee History

• April 2008- City Council Commissioned BBC and Galena consulting to conduct a Development Impact Fee study
• October 2008- Mayor appoints Citizen Advisory Board to study the issue and provide a recommendation
• March 2009- Study completed, Advisory Board issued recommendation
• Jerome Impact Fee History (cont.)
• June 2009
• Galena Consulting presents study findings to the City Council
• July 2009
• Impact fee proposal referred to P&Z Commission
• November 2009
• P&Z Commission amends Comprehensive Plan to include a growth management strategy
• Jerome Impact Fee History (cont.)
• December 2009
• P&Z Commission recommends adoption of Impact Fees as proposed by the Citizen Advisory Board.
• February 2010
• City Council Workshop discussion of Impact Fees
• March 2010
• Impact Fee Town Hall meeting

Next steps:

• City Council to consider Impact Fee ordinance for adoption

What is an impact fee?

• Idaho Code: Title 67, Chapter 82
• The Idaho Development Impact Fee Act (Impact Fee Act) specifically gives cities, towns and counties the authority to levy impact fees.
• Impact fees are one-time assessments established by local governments to assist with the provision of Capital Improvements necessitated by new growth and development.
• Idaho’s definition of an Impact Fee
• “… a payment of money imposed as a condition of development approval to pay for a proportionate share of the cost of system improvements needed to serve the development.”
• The Impact Fee Act includes the legislative finding that “… an equitable program for planning and financing public facilities needed to serve new growth and development is necessary in order to promote and accommodate orderly growth and development and to protect the public health, safety and general welfare of the citizens of the state of Idaho.”2

Impact Fee Eligible Investments

• “System improvements” are capital improvements with a useful life of 10 years or more that, in addition to a long life, increase the service capacity of a public facility.
• Public facilities include: parks, open space and recreation areas, and related capital improvements; and public safety facilities, including law enforcement, fire, emergency medical and rescue facilities.

Jerome P&Z Recommendation

• City Council should consider adopting impact fees for Police, Fire, Parks and Streets.
• New growth should ultimately pay the full-cost recovery amounts indicated in the report.
• Phase in the cost over two years; 33% year 1, 66% year 2, 100% year 3
• “Grandfather” buildable lots for 2 years
• Exempt residential properties annexed into the City
• Proposal considerations
• Provides the minimum funding level for the projected capital investments needed to accommodate growth at current service levels over the next 10 years.
• Existing development investments have already committed time and resources and should not be expected to absorb impact fees into their pro forma

Discussion

• Current Service Levels
• Current Investment Levels
• Proposed Impact Fee
• What does growth mean to the City?

Fiscal implications

• Increased tax base
• Increased demand for services
• Increased cost of providing services

Policy implications

• Good vs. Bad
• Organized vs. Sprawl
• Regulated vs. Reactive
• Planned vs. Unplanned

What does growth mean to residents?

• Will it increase or decrease our quality of life?
• Will it increase or decrease our cost of government; taxes and fees?
• Will it provide new consumer opportunities, services or amenities?

What does growth mean to developers?

• Increased economic activity, profits.
• Increased competition in the market(?)
• Market driven growth patterns: Return on investment: least cost for greatest return
• Jerome’s Approach to Growth

With Impact Fees

• Bias favors in-fill development
• Maintains existing service levels
• Creates a level playing field to pay for the cost of improvements to meet the future demand for services.

Without Impact Fees

• Alternative increased regulatory restrictions, development exactions
• Decreased service levels
• Increased taxes, bonds, fees
• Increased reliance on grants to cover gaps and revenue shortfalls

Conclusions

• Promote growth that enhances the quality of life in the community without adversely impacting current residents in the cost or level of city services.
• Provide a fair and flexible environment to developers and consumers while ensuring the best future for Jerome as it continues to grow.