1. Presentation and Discussion of the Draft Transportation Land Use Assumptions and Infrastructure Improvement Plan Report (Impact Fee Report)
Town Council Meeting
April 5, 2017

2. Purpose of Presentation
Discuss Calendar
Discuss Land Use Assumptions and Infrastructure Improvement Plan
Discuss Draft Report Fee Amount
Discuss Comparative Fee Information
Identify Options re. Who Pays?
Recommended Motion

3. Section 1 Calendar

4. Two Phase Process
Approve / Disapprove the Land Use Assumptions (LUAs) and Infrastructure Improvement Plan (IIP)
Set the Impact Fee Amount

5. Two Phase Process (concluded)
Process Defined by State Law
Extensive Stakeholder and Public Input Process
11 Month Process
4 Public Hearings

6. Phase 1: LUA & IIP 1. Present Impact Fee Study to Town Council
Step
Date
1. Present Impact Fee Study to Town Council
2. Set Public Hearing #1 Date for July 19
April 5
Council Meeting
3. Post Draft Study and Notice Public Hearing
April 6
4. IIP/LUA Public Hearing #1 – No Action
(At Least 60 days after Published Report)
5. Set Public Hearing #2 Date for September 6
July 19
6. IIP/LUA Public Hearing #2 – Possible Approval
(At least 30 days after Public Hearing #1 but before 60 days)
September 6

7. Phase 2: Impact Fee
Step
Date
1. Notice October 18 Public Hearing #1 to Increase Impact Fee
September 7
2. Impact Fee Public Hearing #1 – No Action
(At Least 30 days after Notice)
3. Set Public Hearing #2 Date for December 6
October 18
Council Meeting
4. Impact Fee Public Hearing #2 – Possible Approval
(At least 30 days after Public Hearing #2 but before 60 days)
December 6
5. Effective Date of New Fee
(At least 75 Days after Approval)
March 1, 2018

8. Outreach Objectives All Inclusive Staff Accessibility Transparency
Town Boards and Commissions
Development Community
Existing Residents, Businesses and Other Key Stakeholders
Staff Accessibility
Transparency
Ongoing Communications
Completed by June 30th
Input Summarized for July 19th Public Hearing

9. Outreach Meetings Informal Individual Meetings
Meetings with TAC, PRAC and EDC
Group Meetings
Invitations via Member Organizations
Example: Homebuilder Association
Public Meeting
General Invitation to Residents, Businesses and Key Stakeholders

10. Phase 1 and 2 Outreach Dedicated Webpage News Release
Feedback Form
News Release
Water Bill Insert
eNewsletter
Social Media
Facebook
Twitter
NextDoor

11. Section 2 Discuss Land Use Assumptions and Infrastructure Improvement Plan

12. The Process Financing General Plan Plan How will the IIP be Paid For?
How will the Town Manage
Growth?
Transportation Master Plan
What is the Town’s Level of Service?
Infrastructure Improvement
Plan (IIP)
What Projects Must be Built to Achieve the Level of Service?
Financing
Plan
How will the IIP be Paid For?

13. Land Use Assumptions (LAU) Source: General Plan
Draft Report
Land Use Assumptions (LAU)
Source: General Plan
Number of Units
Single-Family Homes, Retail Square Footage, etc.
Service Area
26 Square Miles

14. Infrastructure Improvement Plan (IIP)
Draft Report
Infrastructure Improvement Plan (IIP)
Source: Transportation Master Plan
Project List
Traffic Volume, Congestion, Level of Service, Vehicle Miles Traveled

15. $195M 10-Year Plan

16. See Separate Presentation Entitled “Traffic Flow Analysis”

17. Section 3 Discuss Draft Report Fee Amount

18. What is an Impact Fee?
One-Time Fee Assessed to New Development to Pay for the Proportionate Share of Infrastructure Costs New Development Imposes on a Community
Town Impact Fees: Transportation, Police, Fire, Parks and Recreation, Library, & General Facilities

19. What is an Impact Fee? (continued)
The Fee is Assessed Using a Standard Formula Based on the Specific Characteristics of the Development
Single-Family Residential
Multi-Family Residential
Retail
Office
Industrial

20. What is an Impact Fee? (concluded)
Most Recent Reform
Effective August 1, 2014
Can Only be Used to Fund “Necessary Public Services”
10-Year Planning Period for Projects
Fees Must be Recalculated At Least Every 5 Years

21. QC’s Current Impact & Capacity Fees (Single-Family Home)
Amount %
1.Wastewater Capacity
$5,082
32%
2.Water Capacity
$4,014
25%
3.Parks and Recreation
$3,681
23%
4.Transportation
$1,263 8%
5. Library
$723 5%
6. Fire
$490 3%
7. Town Facilities
$470
8. Public Safety
$167 1%
TOTAL
$15,890
100%

22. QC’s Impact Fee History (Single-Family Home)

23. Transportation Impact Fee
“Necessary Public Services” for Transportation includes:
Arterial Streets
Collector Streets
Traffic Signals
Right-of-Ways

24. QC’s Transportation Impact Fee History (Single-Family Home)

25. Impact Fee Calculation
The Impact Fee Calculation is Based on Two Types of Information
Financial (Cost) Information
Traffic Volume Information

26. $195 M. 10-Year Project List

27. $195 M. 10-Year Project List Funding Sources Current IIP New
Total Projects
Other Government and Developer Participation
$3 M
$30 M
$33 M
Dedicated Construction Sales Tax
$1 M
$24 M
$25 M
Impact Fees (Maximum Amount)
$6 M
$52 M
$58 M
Subtotal – Growth
$10 M
$106 M
$116 M
Non – Growth (Operating Budget)
$8 M
$71 M
$79 M
Total
$18 M
$177 M
$195 M

28. $177 M. New IIP

29. Financial Information
IIP (Project List)
New Borrowing Costs for IIP
Reduction (Offset) for Dedicated Construction Sales Tax

30. Financial Information (continued)
IIP (Project List)
Amount: $177 M
Number of New Lane Miles: 84
Number of Projects: 36
Maintains Current Level of Service
Growth and Non-Growth Cost Allocation Determined for Each Project

31. Financial Information (concluded)
New Borrowing Costs for IIP
Estimated Debt Issue Amount: $20M
Interest Cost: $6M
Reduction (Offset) for 2% Dedicated Construction Sales Tax
$24M Over 10 Years
In Lieu of Proposition 400 Funding

32. Traffic Volume Information
Level of Service (LOS)
Population Estimates
Trip Generation Rates

33. Traffic Volume Information (continued)
Level of Service (LOS)
Measures Traffic Volume and Flow
Established in the Transportation Master Plan
QC’s LOS is a ‘D’
Same as Most Cities

34. Traffic Volume Information (continued)
Projects Used in Calculation Cannot Increase LOS
New Lane Miles Needed: 119
New Lane Miles in IIP: 84
San Tan Valley
Traffic Impacts are Excluded from the Calculation

35. Traffic Volume Information (continued)
Population Estimates
Population Expected to Double by 2026
67K Population in 2026

36. Traffic Volume Information (continued)
Trip Generation Rates
Impact Fees are Based on the Burden Each Classification of Development Places on the System
Measured by Vehicle Miles Traveled (VMT)
Residential Developments: Per dwelling unit
Non-Residential: Per 1,000 square feet of floor area

37. Traffic Volume Information (concluded)
Town Specific Data was Used to Develop Land Use Travel Characteristics
~75% of the IIP is Being Built to Handle System Demand Caused by Single- Family Homes
All Other Uses Total ~25% (Multi-Family, Retail, Office, and Industrial)

38. Single-Family Home Fee
Draft Report Fee
$3,927*
Current Fee
$1,263
Increase
$2,664
*This amount was initially estimated at $4,800. The decrease is due to
several factors: splitting the total project list into two IIPs, reducing the
project inflation assumption, removing existing debt payments
from the new fee, paying off two development agreements, and
recalculating the amount generated from Dedicated Construction
Sales Tax Revenues.

39. Why Did the Fee Increase? Key Elements Increased
Estimated Fee
Current Fee
Change
New Projects Costs Paid from Impact Fees
$52.0 M
$6.5 M
$45.5 M
Population Increase
33K
20K
13K
New Vehicle Miles Traveled
1.05M
510K
540K
New Lane Miles 84 7 77

40. Section 4 Comparative Information

41. Transportation Impact Fee Only

42. Why Do Transportation Impact Fees Vary?
Funding Sources Vary
Types of Infrastructure Paid By Impact Fees Vary

43. Funding Sources Vary Funding Source Queen Creek Chandler Gilbert Mesa
Operating Budget
Yes
Impact Fees No
Proposition 400 (County Tax)
Dedicated Construction Sales Tax
Gas Tax (HURF)
Voter Approved G.O. Bonds (paid from Property Taxes)
Dedicated General Sales Tax

44. Proposition 400 (County Tax)
0.5% Dedicated Transportation Sales Tax in Maricopa County
Most Cities in Maricopa County Receive Prop 400 Funding – QC Does Not
Represents Significant Funding for Projects
Mesa: $47M over 10 Years

45. QC’s Dedicated Construction Sales Tax
Sales Tax Rates Vary
QC’s Dedicated Construction Sales Tax
2% Additional on All Construction Activity
Direct Reduction to Impact Fees
Others Entities Have a Dedicated General Sales Tax
Mesa: 0.3% on All Transactions
Broader Base

46. Types of Infrastructure Paid By Impact Fees Vary
Major Arterials
Collector Streets
Traffic Signals
Right-of-Way
Support Facilities
Apache Junction
Yes No
Chandler
Gilbert
Peoria
Phoenix
Pinal County
Queen Creek

47. Comparative Information
Comparative Impact Fee Information is Presented for the Southeast Valley Entities
Chandler (6 Zones, 3 Traffic Fee Zones)
Gilbert (2 Zones, 2 Traffic Fee Zones)
Mesa (1 Zone)
Pinal County (5 Zones, 5 Traffic Fee Zones)
Queen Creek (1 Zone)

48. Transportation Impact Fee Only (Single-Family Home)

49. Transportation Impact Fee Only (175 Unit Multi-Family Apartment Complex)

50. Transportation Impact Fee Only (2,000 Square Foot Restaurant)

51. Transportation Impact Fee Only (5,000 Square Foot Restaurant)

52. Transportation Impact Fee Only (25,000 Square Foot Retail Store)

53. Transportation Impact Fee Only (185,000 Square Foot Grocery Store)

54. Transportation Impact Fee Only (25,000 Square Foot School Building)

55. Total Impact / Capacity Fees

56. Preliminary QC’s Impact & Capacity Fees (Single-Family Home)
Amount
1.Wastewater
$5,082
2.Water
$4,014
3.Transportation
$3,927
4.Parks and Recreation
$3,681
5. Library
$723
6. Fire
$490
7. Town Facilities
$479
8. Public Safety
$167
TOTAL
$18,554*
* Total Fee Increased By $2,664, or 14% (from $15,890)

57. All Impact / Capacity Fees (Single-Family Home)

58. All Impact / Capacity Fees (175 Unit Multi-Family Apartment Complex)

59. All Impact / Capacity Fees (2,000 Square Foot Restaurant)

60. All Impact / Capacity Fees (5,000 Square Foot Restaurant)

61. All Impact / Capacity Fees (25,000 Square Foot Retail Store)

62. All Impact / Capacity Fees (185,000 Square Foot Grocery Store)

63. All Impact / Capacity Fees (25,000 Square Foot School Building)

64. All Costs

65. Amounts in Presentation Reflect Updates to April 1 Staff Memo
All Costs Summary
Amounts in Presentation Reflect Updates to April 1 Staff Memo
Single-Family
Gilbert (See Next Slide)
Pinal County (Pending)
All Other Categories
Gilbert (Pending)

66. Comparison: QC and Gilbert
Single-Family Home QC
Current
QC Draft Report
Gilbert Current
Gilbert Draft Report*
Impact / Capacity Fees
$15,890
$18,554
$18,071
$22,145
Permit/Plan Review Fees***
$2,750
$903
Sales Tax **
$18,624
$18,453
$13,459
$13,263
Total Costs
$37,264
$39,757
$32,433
$36,311
* Reflects Draft Water and Wastewater Impact Fee Report
** Reflects QC’s 4.25% tax rate, Gilbert’s 1.5% tax rate
*** Based on Best Information Available from Gilbert

67. Section 5 Options re. Who Pays?

68. Impact Fee Objectives
Justifiable
Equitable
Predictable

69. Options re. Who Pays?
Options Being Evaluated
Buy Down the Impact Fee Increase
Phase-In the Impact Fee Increase
Timeline
July 19th Public Hearing

70. Related Issues / Timing
Update to Parks and Recreation Master Plan and Impact Fee
Update to Wastewater Master Plan and Capacity Fee
Update to Water Master Plan and Capacity Fee

71. Section 6 Recommended Motion

72. Recommended Motion
Approve a Motion to Set the Public Hearing on the Land Use Assumptions and the Infrastructure Improvement Plan for the Transportation Impact Fee for July 19, 2017 at 7 p.m.

73. Questions and Comments