Alternative Road Impact Fee Methodologies Clancy Mullen, AICP Duncan Associates Austin, TX
Basic Impact Fee Formula Travel Demand (Trips or Vehicle-Miles) [Consumption-Based Must Use VMT] X Cost per Trip/VMT [Consumption: Cost ÷ Capacity] [Improvement: Cost ÷ Future Trips or VMT] = Gross Impact Fee
Consumption-Based Method Cost of Representative List of Projects ÷ Vehicle-Miles of Capacity (VMC) = Cost per VMC x System VMC/VMT Ratio = Cost per VMT
Improvement-Based Method Cost of Improvements Needed ÷ Projected New Trips or VMT = Cost per Trip or VMT
History of ACHD’s Impact Fees 1989: Original Study by Duncan Assoc. 1991: Auto Tag Fee Increase Vote 1992: Ord. 184 1992: Idaho Development Fees Act 1993: CIP and Revised Ordinance 1995: CIP Update 1996: Revised Study by Duncan Assoc. 1999: Ord. 193 Based on Staff Study 2000: Developers Sue 2001: Ord. 194 Based on Updated Study 2002: HB 604 Amended State Act 2003: Ord. 197 Based on Improvement Method
Original Study Consumption-Based Methodology Fees Varied Based on Trip Length County-Wide Construction/ROW Costs Trip Length Reduced for State Roads Four Assessment Districts Boise/Garden City ($837) Western Cities ($900) Near Rural ($964) Far Rural ($1,039)
1999 Amendments (Ord. 193) County-Wide Fee for Residential Uses Variable Fee for Nonresidential: Boise/Garden City ($3,158/1000 sf) Eagle ($2,701) Meridian ($2,466) Kuna/Star ($1,486) Variable ROW Costs ($22k-$365k/LM) Credit Error: Pk Hr Cost – ADT Credit Reduced Construction Cost
Assessment Districts
Benefit Districts
Idaho HB 607, effective 3/2002 Micron vs. Ada County Hwy Dist Micron expanding plant, wanted credit for all past and future taxes to ACHD Law now requires credit based on what developer paid Unfair to New Firms to Area
Advantages of Standards-Driven Method Flexibility to Spend Revenues No Need to Be Tied to Specific List of Projects Simple to Calculate
Advantages of Improvements-Driven Method Ties Fees to Improvements Benefiting Development Sound “Rational Nexus” to Impacts Ensures No Fees Used to Pay for Deficiencies Relates Directly to CIP and Long Range Plans