White Paper Analysis of SB 1525: Changes to the Development Impact Fee Program. Presentation to Goodyear City Council November 7, 2011

Transcription

1 White Paper Analysis of SB 1525: Changes to the Development Impact Fee Program Presentation to Goodyear City Council November 7, 2011

2 Goodyear Summary Engaged TischlerBise to analyze impact on Goodyear in July 2011 Staff asked the question; Should fees stay or should they be discontinued? Discontinuing fees would mean loss of revenue source for Capital Projects need alternative methods to make up for loss Staff recommends continuing to assess development impact fees as outlined in the analysis.

3 SB 1525: A Brief Summary Governor signed bill on April 26, Makes substantial changes to Impact Fee State Statutes Definition of Necessary Public Services. There are two compliance dates. Effective January 1, Requires full compliance by August 1, 2014.

4 Fee Eliminations Two of the twelve impact fee categories must be eliminated as of January 1, 2012: General Government Public Works Monies collected prior to elimination must be spent prior to January 1, Qualifying improvements must be already included in the current Infrastructure Improvement Plan (IIP).

5 Fee Restrictions The Parks fee has a strict definition of what qualifies for funding. Large parks (30+ acres) are generally no longer eligible for funding. Community centers (> 3000 sq. ft.), arts & cultural facilities, arenas, amusement parks, auditoriums, museums and aquatic centers, are no longer eligible for funding.

6 Fee Restrictions The Library Fee has been restricted in terms of eligible improvements. A library may be funded only up to 10,000 square feet in size. No equipment (computers, books), vehicles, or other appurtenances may be funded by the Library Impact Fee. Due to these restrictions, Staff will recommend discontinuing this Fee.

7 Fee Restrictions The Reclaimed Water Fee is not specifically allowed under the definition of necessary public services. Reclaimed Water is a component of wastewater disposal. Reclaimed Water Fee Staff will recommend that the Reclaimed Water Fee be combined with the Wastewater Fee.

8 Fee Restrictions Most Fee categories will decrease. Development Fees may not be used for any of the following: Administrative services or training facilities for Police & Fire Equipment, vehicles, or other appurtenances for all categories, except Police & Fire

9 Time Restrictions Water and Wastewater impact fees may be held in accounts no longer than 15 years after collection. All other fees may be held in accounts no longer then 10 years after collection. A landowner may request a refund of the fee if the City is not in compliance with these restrictions.

10 SB1525 Full Compliance New Study Must Be Completed & Adopted by August 1, Offset for Excess Construction Sales Tax in new development fee calculations. Before adoption of proposed or updated land use assumptions City must appoint an Advisory Committee or Auditor to advise, review and monitor the plan.

11 Additional administrative tasks Tracking of fees collected per year is now required, so as to comply with 10- and 15- year holding requirements. Tracking of costs of each infrastructure project is now required, so as to comply with refund requirements. Collection and review of actual costs for projects built by developers for impact fee credits is now required for all such projects. Revision and reprogramming of impact fees must happen at least yearly, based upon actual costs of projects.

12 Staff Recommendations Adopt new fees for Sonoran Valley and then suspend fees indefinitely. If we continue to collect fees, the City will be liable to build infrastructure or face reimbursing the fees collected. Once a Developer is ready to initiate development, the City can reinstate the fees.

13 Timeline July 2011: Retained TischlerBise to analyze impact of SB1525. July/September 2011: Staff worked with TischlerBise and affected departments to analyze each fee category and determine the scope of work required to bring the program into compliance with SB Nov/Dec 2011: January 1, 2012: City must take action to comply with the new law by January 1, > Fees collected prior to this date may be spent as currently approved in the IIP. > Fees collected after this date may only be spent in accordance with SB 1525.

14 Timeline > New Development Impact Fee and Infrastructure Improvement Plan must be completely revised to comply with August 1, 2014 January 1, 2020: SB > Fees collected on or after this date must fully comply with SB 1525, or no impact fees may be collected. > Any fees collected in the General Government, Public Works and Library categories must be spent as originally approved. If not spent, then funds would be distributed equally among the categories of authorized necessary public services.

15 Example: Single Family Resident (North Zone) Category Current Fee Updated Fee Difference Percentage Library $410 $0 ($410) -100% Parks and Recreation $1,032 $940 ($92) -9% Fire and Emergency Services Fee $1,415 $1,058 ($357) -25% Police Fee $606 $378 ($228) -48% Public Works Fee $357 $0 ($357) -100% General Government Fee $1,021 $0 ($1,021) -100% Arterial Streets $651 $532 ($119) -18% Regional Transportation $61 $61 $0 0% Water Water Resources Wastewater Reclaimed Water TOTAL $5,553 $2,969 ($2,584) -47%

16 Example: Single Family Resident (South Zone) Category Current Fee Updated Fee Difference Percentage Library $410 $0 ($410) -100% Parks and Recreation $1,032 $940 ($92) -9% Fire and Emergency Services Fee $1,415 $1,058 ($357) -25% Police Fee $606 $378 ($228) -48% Public Works Fee $357 $0 ($357) -100% General Government Fee $1,021 $0 ($1,021) -100% Arterial Streets $651 $532 ($119) -18% Regional Transportation $ $409 $0 0% Water $3,294 $3,080 ($214) -6% Water Resources $1,709 $1,709 $0 0% Wastewater $3,730 $4,193 $463 12% Reclaimed Water $564 $0 ($564) -100% TOTAL $15,198 $12,299 ($2,899) -19%

17 Example: Retail - 3,000 sq.ft. Facility (North Zone) Category Current Fee Updated Fee Difference Percentage Library $ - $ - $ - 0% Parks and Recreation $ - $ - $ - 0% Fire and Emergency Services Fee $3,090 $2,310 ($780) -25% Police Fee $2,970 $1,950 ($1,020) -48% Public Works Fee $1,320 $ - ($1,320) -100% General Government Fee $3,540 $ - ($3,540) -100% Arterial Streets $6,360 $4,560 ($1,800) -18% Regional Transportation $930 $930 $0 0% Water 1" meter Water Resources 1" meter Wastewater 1" meter Reclaimed Water 1" meter TOTAL $33, $25,046 ($8,748) -26%

18 Example: Retail - 3,000 sq.ft. Facility (South Zone) Category Current Fee Updated Fee Difference Percentage Library $ - $ - $ - 0% Parks and Recreation $ - $ - $ - 0% Fire and Emergency Services Fee $3,090 $2,310 ($780) -25% Police Fee $2,970 $1,950 ($1,020) -48% Public Works Fee $1,320 $ - ($1,320) -100% General Government Fee $3,540 $ - ($3,540) -100% Arterial Streets $6,360 $4,560 ($1,800) -18% Regional Transportation $6,270 $6,270 $0 0% Water 1" meter $5,451 $5,237 ($214) -6% Water Resources 1" meter $2,905 $2,905 $0 0% Wastewater 1" meter $6,270 $7,154 $884 12% Reclaimed Water 1" meter $958 $ - ($958) -100% TOTAL $39, $30, ($8,748) -22%

19 Questions?