1. Fire Protection Impact Fee
TOWN of
WAKE FOREST
Fire Protection Impact Fee
MAY 3, 2016

2. What are Development Impact Fees?
What Are Impact Fees?
What are Development Impact Fees?
One-time capital charges assessed to new development or new customers to recover a proportional share of the costs of capital facilities required to provide service to the new customers.
Objective: “Intergenerational Equity”

3. Rational Nexus Test Basis for Cost Justification
Must demonstrate a linkage between the service needs of new customers and additional facilities and equipment needed to meet those needs
Must demonstrate a linkage between the level of fees and benefits received by new development
Must not exceed the proportional share of costs for the additional facilities and equipment

4. Methodology Methodology for Calculating Fire Protection Impact Fees
Define the service area and standard of service
Define capital needs to address service requirements
Allocate costs between current and future beneficiaries
Allocate costs between residential and non-residential (employment) base
Calculate cost justified level of fees

5. Service Area And Projected Growth
Notes:
Town of Wake Forest and Wakette Fire District
Population growth rate: 5.45%
Employment and Square Footage growth rate: 2.76%

6. Calculation of Cost per Person
Assumptions
81.9% of growth driven by residential demand
Equates to $8.93 million of CIP for residential growth
18.1% of growth driven by non-residential demand
Equates to $1.98 million of CIP for commercial/industrial growth
Calculation
$8.93 mm / 32,458 new residents = $ / resident
$1.98 mm / 3,307 new employees = $ / employee
Addresses proportionality concerns related to development impact fees.

7. Residential Fee Based On Functional Population Units

8. Residential Fire Protection Fee
Calculation
Single Family Residence
$ per resident * 1.66 = $454 per unit
Multi-Family Residence
$ per resident * 1.24 = $341 per unit

9. Non-Residential Fee Assumptions
1.28 Commercial and Institutional employees per 1,000 square feet
0.44 Industrial and Manufacturing employees per 1,000 square feet
Source: Town of Wake Forest NAICS employment by use and square footage by use data used to calculate these factors.

10. Non-Residential Fee

11. Non-Residential Fee Calculation Commercial & Institutional
$598 per employee * 1.28 employees per 1,000 square feet = $767 per 1,000 square feet
Industrial & Manufacturing
$598 per employee * 0.44 employees per 1,000 square feet = $265 per 1,000 square feet

12. Summary and Comparison To Prior Fire Protection Fees
Important Trends Affecting Fee Calculations:
Residential and employment growth did not reach levels projected in 2007;
Fewer residents across which to spread costs
Investment in fire protection infrastructure also did not grow as projected
Change in management for Wake Forest Fire Department
More growth in commercial sector than manufacturing and industry

13. QUESTIONS and DISCUSSION?