Collection of Fee - 2005 - Impact Fee / 5 Yr Interval/CIP Amendment 2004 - 1/11/2005 Fifth Year Impact Fee/Capital Improvements Supplement
CITY OF EAGLE
Five Year Interval Supplement and Amendments
To
Development Impact Fee Study/ Capital Improvements Plan
12/20/2004
KRR — HECO Project No. EG030802
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ADOPTED 1 /1 1 /05
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Fifth Year Impact Fee/ Capital Improvements Supplement
EXECUTIVE SUMMARY
Idaho's Impact Fee Statute, in IC 67-8208.2, requires that capital improvement plans
upon which impact fee systems are based be "updated" every five years. This report,
dated 2004, represents the update of the City of Eagle's Development Impact Fee
Study/ Capital Improvements Plan dated May 11, 1999. The 1999 study
recommended a schedule of impact fees for parks, and a schedule of impact fees for
pathways. The City adopted only the impact fees for parks. Hence this update
considers, reviews and recommends amendments only for the impact fees for parks.
In the 1999 report, a parks impact fee of$545.69 per dwelling (equivalent to $214.84 per
expected new resident/occupant)was calculated and recommended, based on expected
cost data supplied by the firm performing the study (Hofmann Associates, Laclede,
Idaho), and a "deficiency" as discussed in IC 67-8208.1(a) was noted and a requirement
for the City to cure the deficiency was set forth. This requirement entailed a system of
General Fund contributions and offsetting impact fee discounts to fund "cure" of the
deficiency. The recommended impact fee of$545.69 per dwelling and the associated
system of discounts and General Fund obligations for"curing the deficiency" were
adopted by the City Council and have since been enforced as integral parts of the City's
parks improvements program.
In the current review (year 2004), it is found that considering both land and state of
development, the City's parks program still has a deficiency, but it is greatly reduced
from that in 1999. The cure of the deficiency has been partially done through park land
acquisition. Unlike the situation in 1999, the City now has some actual cost data for
parks construction in Eagle. Using this data, together with some data from nearby
communities in the review period, a recommended impact fee basis per new
resident/occupant is derived. On this basis, it is recommended that the City adopt the
following base impact fee schedule for new residential construction:
• Detached Single-family Dwelling: $ 1,752.14
• Multi > 800 sq. ft., per unit $ 1,105.01
• Multi < 800 sq. ft., per unit $ 757.02
• Hotel Room or Suite $ 433.46
It is recommended that a seven year program for correcting the deficiency by General
Fund participation be re-defined. A per capita annual General Fund outlay of$14.76 is
recommended. To harmonize these impact fees with General Fund inputs, a modified
schedule of discounts is also recommended, diminishing each year and ending after
seven years. This schedule is presented in the text.
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Fifth Year Impact Fee/ Capital Improvements Supplement
INTRODUCTION
This report is a Supplement to update the City of Eagle's Development Impact Fee
Study/ Capital Improvements Plan (first revision dated August 18, 1999), which was
produced for the City by Hofmann Planning Associates of Laclede, Idaho. Only those
parts of the original study that have been affected by change in the five years that have
elapsed from 1999 to 2004 are treated in this Supplement. The remainder of the original
report stands unchanged.
The particular statistics that have changed since 1999 are:
1. Population of the City,
2. Market cost of land,
3. Construction cost, and
4. Facilities inventory.
5. Predicted "Build-out" population.
The Impact Fees statute, Idaho Statutes Title 67, Chapter 82, remains the same as in
1999 in the particulars pertaining to Eagle's Parks Development Impact Fee program
Considerations pertinent to the impact fee system under the referenced statute that have
not altered as of this writing (August, 2004) include:
1. Levels of use and target level of service,
2. Land use assumptions,
3. Demand (per capita)for improvements, and
4. Funding sources.
CURRENT SITUATION
The City's probable population is 16,300 as of December 1, 2004, based on probable
5% annual growth from the U.S. Census estimate value of 15,253 for July 1, 2003.
Parks level of service standard adopted in 1999 is 3.3 acres per 1,000 population. At
this standard, required parks area is 53.79 acres currently. The 2004 Comprehensive
Plan added 22,000 probable residents to the "build-out" population of the City, bringing
the value to 60,000. Build-out parks requirement at the probable "build-out" population
of 60,000 is 198.0 acres.
Actual developed parks area is 17.08 acres. Land held by ownership or by long-term
lease for parks development, including both developed and undeveloped land, is 119.22
acres (which leaves 102.14 acres undeveloped). Deficiency of developed park is 36.71
acres, but surplus of land on hand is 65.43 acres.
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Fifth Year Impact Fee/ Capital Improvements Supplement
PARKS ACREAGE
Developed: Acres
Friendship 1.33
Arboretum .50
Jessica Aschenbrenner .50-
Plaza Street 0.25
Orval Krasen 1.00
Heritage 0.50
Merrill 9.00
Skateboard 4.00
Total Developed: 17.08
Undeveloped:
'Wells" natural area 6.49
Sports Complex 80.91
Hill Road Site 14.74,
Total Undeveloped: 102.14
Total Land = 119.22 Acres
Total Developed = 17.08 Acres
PROBABLE COST BASIS
Probable costs stated in the 1999 report were based on assumptions of$25,000 per
acre for land acquisition and $40,000 per acre for construction to develop parks. It
appears that both of these values are unrealistically low.
The construction involved in development of Merrill Park, a community park, cost
approximately $130,000 per acre. The proposed development of Hill Road Park is
expected to cost $2,040,000 by the architect. Hill Road Park's area is 14.74 acres. This
gives a per acre development cost of$138,400. Since Merrill Park and Hill Road Park
are the principal examples of recent park development in Eagle, their costs are taken as
representative of Eagle's standards, hence the probable cost of park development in
Eagle is taken as $135,000 per acre.
The probable market value of developable land in Eagle is taken as $50,000 per acre.
Since actual amounts paid by developers for large tracts of land are often not divulged,
the data on current land value is unsatisfactory. The value of$50,000 per acre
represents the approximate lower end of a range of values of"$50,000 to $60,000" given
orally by land developers currently active in Eagle.
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Fifth Year Impact Fee/Capital Improvements Supplement
DEFICIENCY CONDITION
The pertinent Idaho statute requires that pre-existing deficiencies in impact-fee-funded
construction programs be cured by resources from sources other than impact fees. In
the current program, as recommended in the 1999 report, deficiencies are being
corrected by a system of appropriations from the General Fund.
In determining the required funding to correct deficiencies, land required at the current
open market value is added to construction required at the current average probable
construction cost in order to derive a total value of deficiency as a basis for required
General Fund (or other) contributions. Extending the same method to current
conditions, the following values are derived:
Construction deficiency 36.71 acres @ $135,000 = $4,955,850.00
Land surplus 65.43 acres @ $50,000 = $3,271,500.00
Deducting land value from construction deficiency, the net deficiency is $1,684,350.00. A
program to correct this deficiency in seven years would require current residents to
contribute $240,621.43 per year through General Fund appropriations. This would
require an appropriation basis of$14.76 per person per year, based on a current
population of 16,300.
BASE IMPACT FEES
Required impact fee per capita:
3.3 X ($135,000 + $50,000)
1,000 = $610.50 per capita
It is recommended that Eagle amend its impact fees ordinance to define required impact
fees by class of dwelling unit. Best available occupancy data indicates the average
detached house occupancy of 2.87 found by the U.S. Census of 2000 for Eagle.
Occupancies of multiple units and hotel rooms were locally determined by Boise and
their data is assumed to be representative for those classes of dwellings in the area
generally: 1.81 per unit for multiple units larger than 800 square feet, 1.24 per unit per
multiple less than 800 square feet, and 0.71 per hotel room.
With these average occupancies, the base impact fees per unit become:
Detached: 2.87 x $610.50 = $1,752.14
Multi >800: 1.81 x$610.50 = 1,105.01
Multi <800: 1.24 x $610.50 = 757.02
Hotel Room: 0.71 x $610.50 = 433.46
No data was found that would support subdividing the detached house category into
classes.
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Fifth Year Impact Fee/Capital Improvements Supplement
GENERAL FUND APPROPRIATION ANTICIPATION DISCOUNTS:
Discounts to be taken in anticipation of offsetting General Fund Appropriations per capita
would be:
YEAR 1 $83.87 YEAR 5 $39.82
YEAR 2 $73.72 YEAR 6 $27.25
YEAR 3 $63.02 YEAR 7 $13.99
YEAR 4 $51.73
IMPACT FEE SCHEDULE
Calculating discounts for each year and each class of dwelling unit, recommended
impact fee schedule is as follows:
DISCOUNT CATEGORY/ DE- MULT I> MULT 1< HOTEL
PER ANNUAL TACHED 800 800 ROOM
PERSON CLASS
(x2.87) (x1.81) (x1.24) (x0.71)
83.87 2005 Discount $240.71 $151.80 $104.00 $59.55
Net Fee 1,511.43 953.21 653.02 373.91
73.72 2006 Discount 211.58 133.43 91.41 52.34
Net Fee 1,540.56 971.58 665.61 381.12
63.02 2007 Discount 180.87 114.07 78.14 44.74
Net Fee 1,571.27 990.94 678.88 388.72
51.73 2008 Discount 148.47 93.63 64.15 36.73
Net Fee 1,603.67 1,011.38 692.87 396.73
39.82 2009 Discount 114.28 72.07 49.38 28.27
Net Fee 1,637.86 1,032.94 707.64 405.19
27.25 2010 Discount 78.21 49.32 33.79 19.35
Net Fee 1,673.93 1,105.69 723.23 414.11
13.99 2011 Discount 40.15 25.32 17.35 9.93
Net Fee 1,711.99 1,079.69 739.67 423.53
Base Fee $1,752.14 $1,105.01 757.02 $433.46
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