Improvement-Driven Fees National Impact Fee Roundtable Arlington, Virginia October 5, 2006 Joe Colgan Colgan Consulting Corporation

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 Slide 2

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 Slide 3

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 Slide 4

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 Slide 5

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 Slide 6

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 Slide 7

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 Slide 8