1. Road Impact Fee Update Discussion Item June 21, 2011 Transportation Impact Fee Update Discussion Item June 21, 2011

2. Transportation Impact Fee Update  Background  How Fees are Calculated  Phase 1 Status  Phase 2 Considerations  Closing

3.  Background  How Fees are Calculated  Phase 1 Status  Phase 2 Considerations  Closing Transportation Impact Fee Update

4. Background  Required Fees for New Development  Permits  Inspections  Utility Connections  Impact Fees

5. Background  Fire Protection  Schools  Law Enforcement  Transportation  Parks

6. Background  General Requirements  Related to Growth  Proportional to Impacts  Improvements Address Growth  Nexus

7. Background  Timing  Periodic Review per Ordinance and Resolution Every Five Years  Last Update 2004

8. Background  History of Road Impact Fee Ordinance  1985 - Established  1990 - Updated  1998 - Updated  2004 - Updated  2009 - Update Postponed  2011 - Update Underway

9. Background  Road Impact Fee Zones Funds Must be Used in Area Collected Funds Must be Used in Area Collected 1 2 4 3

10. Background 1 4 3 2 Zone 1 Zone 2 Zone 3 Zone 4 Revenues by Impact Fee Zone

11. Background Total Road CIP 5-year = approx. $359 million Average Impact Fee Expenditures Over Next 5 Years ( FY 10/11 - FY14/15) Road expenditures by funding source (Average)

12. Background *(Present Day Costs) Actual Cost Changes (in 000’s)*

13. Background Road Impact Fees - Single Family Unit Impact fee rate before recent policy reductions

14. Background Road Impact Fees - Single Family Unit Impact fee rate before recent policy reductions

15. Background All Impact Fees - Single Family Unit Impact fee rate before recent policy reductions

16. Background All Impact Fees - Single Family Unit Impact fee rate before recent policy reductions

17.  Background  How Fees are Calculated  Phase 1 Status  Phase 2 Considerations  Closing Transportation Impact Fee Update

18. How Fees Are Calculated  Growth Related  Major Roads  Actual Costs  Demonstrated Need  Proportional to Impact

19. How Fees Are Calculated  Fees Calculated for Each Land Use  Trip Generation  New Trips  Trip Length  General Factors  Road Capacity  Costs  Fuel Tax Credit

20. How Fees Are Calculated

21.  Background  How Fees are Calculated  Phase 1 Status  Phase 2 Considerations  Closing Transportation Impact Fee Update

22. Phase 1 Status  Update Existing Rate Table  Trip Generation  Trip Length  Improvement Cost Components  Funding Credit Components  Refine Formula

23. Phase 1 Status  Are We Overcharging?  Refine formula  Construction costs  Expectation is data will suggest fee increase

24.  Background  How Fees are Calculated  Phase 1 Status  Phase 2 Considerations  Closing Transportation Impact Fee Update

25. Phase 2 Considerations  Methodology and Public Policy  Funding various modes of travel  Varying fees by area  Varying fees by land use  Align fee structure with policy goals

26. Phase 2 Considerations  Funding Various Modes of Travel  Methodology change to person miles of travel  Cost basis for assets  Types of infrastructure  Intersection Improvements  Signal systems  Sidewalks  Bike lanes  Transit shelters

27. Phase 2 Considerations  Varying Fees by Area  Fee differential based on geographic areas  Technically supported through “Smart Growth Model”  Slow growth areas  Requires use of alternative funding investment

28. Phase 2 Considerations

29.  Varying Fees by Land Use  Additional considerations for desired land uses  Shorten trip lengths  Higher trip internalization  Need to ensure predictability, equal protection

30. Phase 2 Considerations  Align Fee Structure with Policy Goals  Previous approaches  Adopted comprehensive plan focuses on:  Infill and redevelopment  Transit Oriented Development  Mixed-Use Activity Centers  Streamline development review process

31. Transportation Impact Fee Update  Background  How Fees are Calculated  Phase 1 Status  Phase 2 Considerations  Closing

32. Closing  Complete Phase 1  Establish baseline  Impacts of key assumptions  August 2011  Move into Phase 2  Methodology and public policy considerations  Burden of proof  Ordinance updates  January 2012

33. Discussion  Methodology and public policy considerations  Funding various modes of travel  Varying fees by area  Varying fees by land use  Align fee structure with policy goals

35. How Fees Are Calculated  Two Common Methodologies  Consumption Based  Charges growth to replace capacity consumed  Maintains current levels of service  Improvements Driven  Cost basis to specific plan projects  Need to ensure new growth is not charged for existing deficiencies  Burden of Proof

36. Background Total Road CIP 5-year = approx. $290 million Average Impact Fee Expenditures Over Next 5 Years ( FY 11/12 - FY15/16) Road expenditures by funding source (Average) Gas Taxes 15.2% I Drive CRA 19.3% Other 22%

37. Phase 2 Considerations  Outreach  Development Advisory Board (DAB)  Homebuilder Associations  Technical Advisory Group  Citizens