Minutes - 2020 - Development Impact Fee Committee - 03/09/2020 - Regular pA+OF T,.;
V
THE CITY OF EAGLE
* * Development Impact Fee AdvisoryCommittee
o P P
Qtt March 9, 2020
Minutes
1. CALL TO ORDER: Meeting called to order at 5:35 p.m.
2. ROLL CALL: Present: GRUBB, KRAMER, FILLMORE, JOHNSON. Absent:
FILLMORE, PENCE
3 APPROVAL OF MINUTES:
A. Minutes of August 21, 2018.
Chairman Kramer introduces the item.
Grubb moves to approve the minutes of August 21, 2018 as presented. Seconded by
Johnson. ALL AYE...MOTION CARRIES.
B. Minutes of December 4,2019.
Grubb moves to approve the minutes of December 4, 2018 as presented. Seconded by
Johnson. ALL AYE...MOTION CARRIES.
4. UNFINISHED BUSINESS: NONE
5. NEW BUSINESS:
A Review of Idaho State Code 67-8201, Idaho Development Impact Fee Act—and the
City's role in establishing and collecting development impact fees—City Attorney Villegas
Chairman Kramer introduces the item.
City Attorney Villegas reviews Idaho State Code pertaining to development impact fees.
[PowerPoint attached]
B. Action Item: Review and comment on the Eagle Rural Fire District proposed Capital
Improvement Plan. —Galena Consulting
C. Action Item: Review and comment on the draft law enforcement impact fee Capital
Improvement Plan. —Galena Consulting
Chairman Kramer introduces the item.
Anne Wescott with Galena Consulting reviews the proposed law enforcement Capital
Improvement Plan and the fire district Capital Improvement Plan. [PowerPoint attached]
General discussion between Ms. Wescott, Council liaison Pittman, Chief Clifford and the
Committee.
Galena suggests that the next step would be to provide a memo of the DIFAC recommendation
to City Council for their review and approval of the plans.
Kramer recommends that Galena draft a memo and provide it to the City Attorney for review and
be presented at the next DIFAC meeting. Two members are not present, so it would be nice if
they could provide their input regarding the plans at the next meeting as well. Deputy City Clerk
Treasurer, Osborn will send out a Doodle Poll to organize a meeting in the next month.
6. ADJOURNMENT:
No further business,Grubb moves to adjourn. Seconded by Johnson. ALL AYE...MOTION
CARRIES.
Page I of 2
Meeting adjourns at 6:54 p.m.
`�•••C%T Y 0.• �•'•.
Respectfully submitted: .•••••••.
.,�. ••••CORp0 ••./
TRACY . OSBORN, CMC :� 9� .•,
CLERK OF THE MEETING �•., o••. ;�;••••,, ,;'•.,,IDAN0 ..•'�.
••••••••••••••••
APPROVED:
JANE KRAMER
CHAIRMAN
AN AUDIO RECORDING OF THIS MEETING IS AVAILABLE FOR DOWNLOAD AT
WWW.CITYOFEAGLE.ORG
Page 2 of 2
difac-03-09-20min
3/10/2020
Development Impact Fees
Definition: Payment of money imposed as a condition of development approval to pay for a
proportionate share of the cost of system improvements needed to serve development. I.C. 67-
8201(9)
Impact Fee Steps
Comprehensive Plan
Impact Fee Advisory Committee
Capital Improvements Plan ("CIP")
Impact Fee Ordinance
Intergovernmental Agreement
1
l&� Impact Fee Advisory Committee T'
Any governmental entity which is considering or which has adopted a development impact fee
ordinance, shall establish a development impact fee advisory committee. I.0§67-8205
Serve as an advisor to the City and :
(a)Assist the governmental entity in adopting land use assumptions;
(b) Review the capital improvements plan, and proposed amendments, and file written comments;
(c) Monitor and evaluate implementation of the capital improvements plan;
(d) File periodic reports, at least annually,with respect to the capital improvements plan and
report to the governmental entity any perceived inequities in implementing the plan or imposing ;;
the development impact fees; and
(e)Advise the governmental entity of the need to update or revise land use assumptions, capital erg'
improvements plan and development impact fees.
2
1
3/10/2020
Proportionate Share ( I .C. 67-8207)
Fee must be based on "a reasonable formula or method under which the development impact
fee imposed does not exceed a proportionate share of the costs incurred..."
In determining the proportionate share the following factors shall be considered and accounted
for in the calculation of the impact fee:
*The cost of existing system improvements within the service area or areas;
*The means by which existing system improvements have been financed;
*The extent to which the new development will contribute to the cost of system improvements
through taxation, assessment, or developer or landowner contributions,
*The extent to which the new development is required to contribute to the cost of existing
system improvements in the future.
*The availability of other sources of funding system improvements including, but not limited to,
user charges, general tax levies, intergovernmental transfers, and special taxation.The
governmental entity shall develop a plan for alternative sources of revenue.
Capital Improvements
"Capital improvements" means improvements with a useful life of ten (10)years or more, by new
construction or other action,which increase the service capacity of a public facility.
"Capital improvements plan" means a plan adopted pursuant to this chapter that identifies capital
improvements for which development impact fees may be used as a funding source.
Idaho Code§67-8203
6
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Eagle Development Impact Fee
Advisory Committee
March 4, 2020
EALENA
ONSULTING
1 'j \.,.
Three Types of Capital Spending
Not all capital costs are associated with growth:
Repair and replacement of facilities (i.e., standard periodic
investment in existing facilities such as replacing a leaky fire station
roof). These costs are not impact fee eligible;
Betterment of facilities, or implementation of new services (e.g.,
development of a fire training center for the first time). These costs
are generally not entirely impact fee eligible; and
3. Expansion of facilities to accommodate new development (e.g.,
construction and equipping of new fire stations in growth areas).
These costs are impact fee eligible.
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ALF.NA
ONSULTING
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Current Capital Assets
Square Replacement
Type of Capital Asset Footage Value
Facilities
Administration Space 1,189 $ 475,600 Level of Service =
Police Station Space 3,140 $ 1,256,000 .74 officers per
ApparatusNehicles 1,000
Tahoe $ 55,000
Equipment
Weaponry for 23 sworn FTEs $ 20,700
Total Assets $ 1,807,300
Plus Cost of Fee-Related Research
Impact Fee Study $ 8,000
Grand Total $ 1,815,300
EOjA
ALENA
NSULTING
7
10-Year Capital Improvement Plan 2020-2029
Square CIP Growth Amount to Amount from
Type of Capital Infrastructure Feet Value Portion Include in Fees Other Sources
Facilities
Station/Administration Space
Current 23 officers 4,329 $ 865,800 0% $ - $ 865,800
Growth-Related 12 officers 2,179 $ 435,836 100% $ 435,836 $ -
Equipment
Weaponry for 12 growth-related officers $ 10,800 100% $ 10,800 $ -
Total Infrastructure $ 1 ,312,436 $ 446,636 $ 865,800
Plus Cost of Fee-Related Research
Impact Fee Study $ 8,000 100% $ 8,000 $ -
Grand Total $ 1,320,436 $ 454,636 $ 865,800
EALENA
ONSULTING
How Does This Compare Across the Valley?
City of City of City of City of City of City of City of City of
Eagle Kuna Meridian Boise Caldwell Nampa Star Middleton
DRAFT
$ 95 $ 90 $ 122 $ 216.00 $ 120 $ 359 $ - $ -
$ 0.04 $ 0.04 $0.05-$0.24 $0.04-$0.31 $ 0.06 $ 0.21 $ - $ -
EALENA
ONSULTING
11 -.of
Growth Projections
Net Net Increase in Percent of
2019 2029 Growth Square Feet Total Growth
Population 37,400 60,455 23,055
Residential (in units) 13,357 21,591 8,234 20,584,821 89%
Nonresidential (in square feet) 2,404,286 4,857,991 2,453,705 2,453,705 11
Total 23,038,527 100%
Sources: Eagle Comprehensive Plan; building permit data from Eagle
Building planning staff; COMPASS projections for District
A
ALENA
ONSULTING
13 ..."
Current Service Standard
Current Service Calculation
Amount to Include in Fee Calculation $19,915,400
Distribution of Current Land Uses "How much has
Residential 93% everyone already here
Nonresidential 7% paid into the capital
infrastructure to
Current Assets by Land Use provide this level of
Residential $ 18,577,799
service?"
Nonresidential $ 1 ,337,601
Current Land Uses
Residential 13,357
Nonresidential 2,404,286
Impact Fee per Unit
Residential $ 1 ,391
Nonresidential $ 0.56
ALENA
ONSULTING
15
Impact Fee Calculation
Amount to Include in Impact Fee Calculation $8,269,000
Percentage of Future Growth
Residential 89%
Non Residential 11%
Amount Attributable to Future Growth
Residential $ 7,388,315
Non Residential $ 880,685
Future Growth 2017-2026
Residential (per unit) 8,234
Non Residential (per square foot) 2,453,705
Impact Fee
Residential (per unit) $ 897
Non Residential (per square foot) $ 0.36
EALENA
ONSULTING
17
Next Steps
CIP and Fees have been approved by Eagle Rural Fire
DIFAC, Eagle Rural Fire Commission
- Ada County has adopted and agreed to collect on behalf of
the District
Eagle Rural Fire is requesting that the City of Eagle agree
to collect impact fees for Eagle Rural Fire at the point of
building permit.
ALENA
ONSULTING
19
TITLE 67
STATE GOVERNMENT AND STATE AFFAIRS
CHAPTER 82
DEVELOPMENT IMPACT FEES
67-8201. SHORT TITLE. This chapter shall be known and may be cited as
the "Idaho Development Impact Fee Act. "
[67-8201, added 1992, ch. 282, sec. 1, p. 861. ]
67-8202. PURPOSE. The legislature finds that an equitable program for
planning and financing public facilities needed to serve new growth and de-
velopment is necessary in order to promote and accommodate orderly growth
and development and to protect the public health, safety and general welfare
of the citizens of the state of Idaho. It is the intent by enactment of this
chapter to:
(1) Ensure that adequate public facilities are available to serve new
growth and development;
(2) Promote orderly growth and development by establishing uniform
standards by which local governments may require that those who benefit
from new growth and development pay a proportionate share of the cost of new
public facilities needed to serve new growth and development;
(3) Establish minimum standards for the adoption of development impact
fee ordinances by governmental entities;
(4) Ensure that those who benefit from new growth and development are
required to pay no more than their proportionate share of the cost of public
facilities needed to serve new growth and development and to prevent dupli-
cate and ad hoc development requirements; and
(5) Empower governmental entities which are authorized to adopt ordi-
nances to impose development impact fees.
[67-8202, added 1992, ch. 282, sec. 1, p. 861. ]
67-8203. DEFINITIONS. As used in this chapter:
(1) "Affordable housing" means housing affordable to families whose
incomes do not exceed eighty percent (80%%) of the median income for the
service area or areas within the jurisdiction of the governmental entity.
(2) "Appropriate" means to legally obligate by contract or otherwise
commit to use by appropriation or other official act of a governmental en-
tity.
(3) "Capital improvements" means improvements with a useful life of ten
(10) years or more, by new construction or other action, which increase the
service capacity of a public facility.
(4) "Capital improvement element" means a component of a comprehensive
plan adopted pursuant to chapter 65, title 67, Idaho Code, which component
meets the requirements of a capital improvements plan pursuant to this chap-
ter.
(5) "Capital improvements plan" means a plan adopted pursuant to this
chapter that identifies capital improvements for which development impact
fees may be used as a funding source.
(6) "Developer" means any person or legal entity undertaking develop-
ment, including a party that undertakes the subdivision of property pursuant
to sections 50-1301 through 50-1334, Idaho Code.
2
(7) "Development" means any construction or installation of a building
or structure, or any change in use of a building or structure, or any change
in the use, character or appearance of land, which creates additional demand
and need for public facilities or the subdivision of property that would per-
mit any change in the use, character or appearance of land. As used in this
chapter, "development" shall not include activities that would otherwise
be subject to payment of the development impact fee if such activities are
undertaken by a taxing district, as defined in section 63-201, Idaho Code,
or by an authorized public charter school, as defined in section 33-5202A,
Idaho Code, in the course of carrying out its statutory responsibilities,
unless the adopted impact fee ordinance expressly includes taxing districts
or public charter schools as being subject to development impact fees.
(8) "Development approval" means any written authorization from a gov-
ernmental entity that authorizes the commencement of a development.
(9) "Development impact fee" means a payment of money imposed as a con-
dition of development approval to pay for a proportionate share of the cost
of system improvements needed to serve development. This term is also re-
ferred to as an impact fee in this chapter. The term does not include the
following:
(a) A charge or fee to pay the administrative, plan review, or inspec-
tion costs associated with permits required for development;
(b) Connection or hookup charges;
(c) Availability charges for drainage, sewer, water, or transportation
charges for services provided directly to the development; or
(d) Amounts collected from a developer in a transaction in which the
governmental entity has incurred expenses in constructing capital im-
provements for the development if the owner or developer has agreed to
be financially responsible for the construction or installation of the
capital improvements, unless a written agreement is made pursuant to
section 67-8209(3) , Idaho Code, for credit or reimbursement.
(10) "Development requirement" means a requirement attached to a devel-
opmental approval or other governmental action approving or authorizing a
particular development project including, but not limited to, a rezoning,
which requirement compels the payment, dedication or contribution of goods,
services, land, or money as a condition of approval.
(11) "Extraordinary costs" means those costs incurred as a result of an
extraordinary impact.
(12) "Extraordinary impact" means an impact that is reasonably deter-
mined by the governmental entity to:
(a) Result in the need for system improvements, the cost of which will
significantly exceed the sum of the development impact fees to be gener-
ated from the project or the sum agreed to be paid pursuant to a develop-
ment agreement as allowed by section 67-8214 (2) , Idaho Code; or
(b) Result in the need for system improvements that are not identified
in the capital improvements plan.
(13) "Fee payer" means that person who pays or is required to pay a de-
velopment impact fee.
(14) "Governmental entity" means any unit of local government that is
empowered in this enabling legislation to adopt a development impact fee or-
dinance.
(15) "Impact fee. " See development impact fee.
3
(16) "Land use assumptions" means a description of the service area and
projections of land uses, densities, intensities, and population in the ser-
vice area over at least a twenty (20) year period.
(17) "Level of service" means a measure of the relationship between ser-
vice capacity and service demand for public facilities.
(18) "Manufactured home" means a structure, constructed according to
HUD/FHA mobile home construction and safety standards, transportable in one
(1) or more sections, which, in the traveling mode, is eight (8) feet or more
in width or is forty (40) body feet or more in length, or when erected on site,
is three hundred twenty (320) or more square feet, and which is built on a
permanent chassis and designed to be used as a dwelling with or without a
permanent foundation when connected to the required utilities, and includes
the plumbing, heating, air conditioning, and electrical systems contained
therein, except that such term shall include any structure that meets all the
requirements of this subsection except the size requirements and with re-
spect to which the manufacturer voluntarily files a certification required
by the secretary of housing and urban development and complies with the stan-
dards established under 42 U.S.C. 5401, et seq.
(19) "Modular building" is as defined in section 39-4301, Idaho Code.
(20) "Present value" means the total current monetary value of past,
present, or future payments, contributions or dedications of goods, ser-
vices, materials, construction or money.
(21) "Project" means a particular development on an identified parcel
of land.
(22) "Project improvements" means site improvements and facilities
that are planned and designed to provide service for a particular devel-
opment project and that are necessary for the use and convenience of the
occupants or users of the project.
(23) "Proportionate share" means that portion of the cost of system im-
provements determined pursuant to section 67-8207, Idaho Code, which rea-
sonably relates to the service demands and needs of the project.
(24) "Public facilities" means:
(a) Water supply production, treatment, storage and distribution fa-
cilities;
(b) Wastewater collection, treatment and disposal facilities;
(c) Roads, streets and bridges, including rights-of-way, traffic
signals, landscaping and any local components of state or federal
highways;
(d) Storm water collection, retention, detention, treatment and dis-
posal facilities, flood control facilities, and bank and shore protec-
tion and enhancement improvements;
(e) Parks, open space and recreation areas, and related capital im-
provements; and
(f) Public safety facilities, including law enforcement, fire, emer-
gency medical and rescue and street lighting facilities.
(25) "Recreational vehicle" means a vehicular type unit primarily de-
signed as temporary quarters for recreational, camping, or travel use, which
either has its own motive power or is mounted on or drawn by another vehicle.
(26) "Service area" means any defined geographic area identified by a
governmental entity or by intergovernmental agreement in which specific
public facilities provide service to development within the area defined, on
the basis of sound planning or engineering principles or both.
4
(27) "Service unit" means a standardized measure of consumption, use,
generation or discharge attributable to an individual unit of development
calculated in accordance with generally accepted engineering or planning
standards for a particular category of capital improvements.
(28) "System improvements, " in contrast to project improvements, means
capital improvements to public facilities designed to provide service to
a service area including, without limitation, the type of improvements
described in section 50-1703, Idaho Code.
(29) "System improvement costs" means costs incurred for construction
or reconstruction of system improvements, including design, acquisition,
engineering and other costs attributable thereto, and also including,
without limitation, the type of costs described in section 50-1702 (h) , Idaho
Code, to provide additional public facilities needed to serve new growth and
development. For clarification, system improvement costs do not include:
(a) Construction, acquisition or expansion of public facilities other
than capital improvements identified in the capital improvements plan;
(b) Repair, operation or maintenance of existing or new capital im-
provements;
(c) Upgrading, updating, expanding or replacing existing capital
improvements to serve existing development in order to meet stricter
safety, efficiency, environmental or regulatory standards;
(d) Upgrading, updating, expanding or replacing existing capital im-
provements to provide better service to existing development;
(e) Administrative and operating costs of the governmental entity un-
less such costs are attributable to development of the capital improve-
ments plan, as provided in section 67-8208, Idaho Code; or
(f) Principal payments and interest or other finance charges on bonds
or other indebtedness except financial obligations issued by or on be-
half of the governmental entity to finance capital improvements identi-
fied in the capital improvements plan.
[67-8203, added 1992, ch. 282, sec. 1, p. 861; am. 1996, ch. 366, sec.
1, p. 1226; am. 2002, ch. 347, sec. 1, p. 983; am. 2007, ch. 252, sec. 16,
p. 753; am. 2008, ch. 389, sec. 1, p. 1068.; am. 2019, ch. 70, sec. 1, p.
164. ]
67-8204. MINIMUM STANDARDS AND REQUIREMENTS FOR DEVELOPMENT IMPACT
FEES ORDINANCES. Governmental entities which comply with the requirements
of this chapter may impose by ordinance development impact fees as a condi-
tion of development approval on all developments.
(1) A development impact fee shall not exceed a proportionate share
of the cost of system improvements determined in accordance with section
67-8207, Idaho Code. Development impact fees shall be based on actual system
improvement costs or reasonable estimates of such costs.
(2) A development impact fee shall be calculated on the basis of levels
of service for public facilities adopted in the development impact fee ordi-
nance of the governmental entity that are applicable to existing development
as well as new growth and development. The construction, improvement, ex-
pansion or enlargement of new or existing public facilities for which a de-
velopment impact fee is imposed must be attributable to the capacity demands
generated by the new development.
(3) A development impact fee ordinance shall specify the point in the
development process at which the development impact fee shall be collected.
The development impact fee may be collected no earlier than the commencement
5
of construction of the development, or the issuance of a building permit or a
manufactured home installation permit, or as may be agreed by the developer
and the governmental entity.
(4) A development impact fee ordinance shall be adopted in accordance
with the procedural requirements of section 67-8206, Idaho Code.
(5) A development impact fee ordinance shall include a process whereby
the governmental agency shall allow the developer, upon request by the
developer, to provide a written individual assessment of the proportionate
share of development impact fees under the guidelines established by this
chapter which shall be set forth in the ordinance. The individual assessment
process shall permit consideration of studies, data, and any other relevant
information submitted by the developer to adjust the amount of the fee. The
decision by the governmental agency on an application for an individual
assessment shall include an explanation of the calculation of the impact
fee, including an explanation of factors considered under section 67-8207,
Idaho Code, and shall specify the system improvements) for which the impact
fee is intended to be used.
(6) A development impact fee ordinance shall provide a process whereby
a developer shall receive, upon request, a written certification of the
development impact fee schedule or individual assessment for a particular
project, which shall establish the development impact fee so long as there is
no material change to the particular project as identified in the individual
assessment application, or the impact fee schedule. The certification shall
include an explanation of the calculation of the impact fee including an
explanation of factors considered under section 67-8207, Idaho Code. The
certification shall also specify the system improvement (s) for which the
impact fee is intended to be used.
(7) A development impact fee ordinance shall include a provision for
credits in accordance with the requirements of section 67-8209, Idaho Code.
(8) A development impact fee ordinance shall include a provision
prohibiting the expenditure of development impact fees except in accordance
with the requirements of section 67-8210, Idaho Code.
(9) A development impact fee ordinance may provide for the imposition
of a development impact fee for system improvement costs incurred subsequent
to adoption of the ordinance to the extent that new growth and development
will be served by the system improvements.
(10) A development impact fee ordinance may exempt all or part of a par-
ticular development project from development impact fees provided that such
project is determined to create affordable housing, provided that the pub-
lic policy which supports the exemption is contained in the governmental en-
tity's comprehensive plan and provided that the exempt development's pro-
portionate share of system improvements is funded through a revenue source
other than development impact fees.
(11) A development impact fee ordinance shall provide that development
impact fees shall only be spent for the category of system improvements for
which the fees were collected and either within or for the benefit of the ser-
vice area in which the project is located.
(12) A development impact fee ordinance shall provide for a refund of
development impact fees in accordance with the requirements of section
67-8211, Idaho Code.
(13) A development impact fee ordinance shall establish for a procedure
for timely processing of applications for determination by the governmental
entity regarding development impact fees applicable to a project, individ-
6
ual assessment of development impact fees, credits or reimbursements to be
allowed or paid under section 67-8209, Idaho Code, and extraordinary impact.
(14) A development impact fee ordinance shall specify when an applica-
tion for an individual assessment of development impact fees shall be per-
mitted to be made by a developer or fee payer. An application for an individ-
ual assessment of development impact fees shall be permitted sufficiently in
advance of the time that the developer or fee payer may seek a building permit
or related permits so that the issuance of a building permit or related per-
mits will not be delayed.
(15) A development impact fee ordinance shall provide for appeals re-
garding development impact fees in accordance with the requirements of sec-
tion 67-8212, Idaho Code.
(16) A development impact fee ordinance must provide a detailed de-
scription of the methodology by which costs per service unit are determined.
The development impact fee per service unit may not exceed the amount
determined by dividing the costs of the capital improvements described in
section 67-8208 (1) (f) , Idaho Code, by the total number of projected service
units described in section 67-8208 (1) (g) , Idaho Code. If the number of new
service units projected over a reasonable period of time is less than the
total number of new service units shown by the approved land use assumptions
at full development of the service area, the maximum impact fee per service
unit shall be calculated by dividing the costs of the part of the capital
improvements necessitated by and attributable to the projected new service
units described in section 67-8208 (1) (g) , Idaho Code, by the total projected
new service units described in that section.
(17) A development impact fee ordinance shall include a schedule of de-
velopment impact fees for various land uses per unit of development. The or-
dinance shall provide that a developer shall have the right to elect to pay a
project' s proportionate share of system improvement costs by payment of de-
velopment impact fees according to the fee schedule as full and complete pay-
ment of the development project's proportionate share of system improvement
costs, except as provided in section 67-8214 (3) , Idaho Code.
(18) After payment of the development impact fees or execution of an
agreement for payment of development impact fees, additional development
impact fees or increases in fees may not be assessed unless the number of
service units increases or the scope or schedule of the development changes.
In the event of an increase in the number of service units or schedule of the
development changes, the additional development impact fees to be imposed
are limited to the amount attributable to the additional service units or
change in scope of the development.
(19) No system for the calculation of development impact fees shall be
adopted which subjects any development to double payment of impact fees.
(20) A development impact fee ordinance shall exempt from development
impact fees the following activities:
(a) Rebuilding the same amount of floor space of a structure which was
destroyed by fire or other catastrophe, providing the structure is re-
built and ready for occupancy within two (2) years of its destruction;
(b) Remodeling or repairing a structure which does not increase the
number of service units;
(c) Replacing a residential unit, including a manufactured home, with
another residential unit on the same lot, provided that the number of
service units does not increase;
(d) Placing a temporary construction trailer or office on a lot;
7
(e) Constructing an addition on a residential structure which does not
increase the number of service units; and
(f) Adding uses that are typically accessory to residential uses, such
as tennis courts or clubhouse, unless it can be clearly demonstrated
that the use creates a significant impact on the capacity of system
improvements.
(21) A development impact fee will be assessed for installation of a
modular building, manufactured home or recreational vehicle unless the
fee payer can demonstrate by documentation such as utility bills and tax
records, either:
(a) That a modular building, manufactured home or recreational vehicle
was legally in place on the lot or space prior to the effective date of
the development impact fee ordinance; or
(b) That a development impact fee has been paid previously for the in-
stallation of a modular building, manufactured home or recreational ve-
hicle on that same lot or space.
(22) A development impact fee ordinance shall include a process for
dealing with a project which has extraordinary impacts.
(23) A development impact fee ordinance shall provide for the calcula-
tion of a development impact fee in accordance with generally accepted ac-
counting principles. A development impact fee shall not be deemed invalid
because payment of the fee may result in an incidental benefit to owners or
developers within the service area other than the person paying the fee.
(24) A development impact fee ordinance shall include a description of
acceptable levels of service for system improvements.
(25) Any provision of a development impact fee ordinance that is incon-
sistent with the requirements of this chapter shall be null and void and that
provision shall have no legal effect. A partial invalidity of a development
impact fee ordinance shall not affect the validity of the remaining portions
of the ordinance that are consistent with the requirements of this chapter.
[67-8204, added 1992, ch. 282, sec. 1, p. 864; am. 1996, ch. 366, sec.
2, p. 1229; am. 2002, ch. 347, sec. 2, p. 986. ]
67-8204A. INTERGOVERNMENTAL AGREEMENTS. Governmental entities as
defined in section 67-8203 (14) , Idaho Code, which are jointly affected by
development are authorized to enter into intergovernmental agreements with
each other or with highway districts, fire districts, water districts, sewer
districts, recreational water and sewer districts or irrigation districts
for the purpose of developing joint plans for capital improvements or for
the purpose of agreeing to collect and expend development impact fees for
system improvements, or both, provided that such agreement complies with
any applicable state laws. Governmental entities are also authorized to
enter into agreements with the Idaho transportation department for the
expenditure of development impact fees pursuant to a developer's agreement
under section 67-8214, Idaho Code.
[67-8204A, added 1996, ch. 366, sec. 3, p. 1232; am. 2007, ch. 167,
sec. 1, p. 496. ]
67-8205. DEVELOPMENT IMPACT FEE ADVISORY COMMITTEE. (1) Any governmen-
tal entity which is considering or which has adopted a development impact fee
ordinance, shall establish a development impact fee advisory committee.
8
(2) The development impact fee advisory committee shall be composed of
not fewer than five (5) members appointed by the governing authority of the
governmental entity. Two (2) or more members shall be active in the business
of development, building or real estate. An existing planning or planning
and zoning commission may serve as the development impact fee advisory
committee if the commission includes two (2) or more members who are active
in the business of development, building or real estate; otherwise, two (2)
such members who are not employees or officials of a governmental entity
shall be appointed to the committee.
(3) The development impact fee advisory committee shall serve in an ad-
visory capacity and is established to:
(a) Assist the governmental entity in adopting land use assumptions;
(b) Review the capital improvements plan, and proposed amendments, and
file written comments;
(c) Monitor and evaluate implementation of the capital improvements
plan;
(d) File periodic reports, at least annually, with respect to the cap-
ital improvements plan and report to the governmental entity any per-
ceived inequities in implementing the plan or imposing the development
impact fees; and
(e) Advise the governmental entity of the need to update or revise
land use assumptions, capital improvements plan and development impact
fees.
(4) The governmental entity shall make available to the advisory
committee, upon request, all financial and accounting information, profes-
sional reports in relation to other development and implementation of land
use assumptions, the capital improvements plan and periodic updates of the
capital improvements plan.
[67-8205, added 1992, ch. 282, sec. 1, p. 867. ]
67-8206. PROCEDURE FOR THE IMPOSITION OF DEVELOPMENT IMPACT FEES. (1) A
development impact fee shall be imposed by a governmental entity in compli-
ance with the provisions set forth in this section.
(2) A capital improvements plan shall be developed in coordination with
the development impact fee advisory committee utilizing the land use assump-
tions most recently adopted by the appropriate land use planning agency or
agencies.
(3) A governmental entity that seeks to consider adoption, amendment,
or repeal of a capital improvements plan shall hold at least one (1) public
hearing. The governmental entity shall publish a notice of the time, place
and purpose of the hearing or hearings not fewer than fifteen (15) nor more
than thirty (30) days before the scheduled date of the hearing, in a newspa-
per of general circulation within the jurisdiction of the governmental en-
tity. Such notices shall also include a statement that the governmental en-
tity shall make available to the public, upon request, the following: pro-
posed land use assumptions, a copy of the proposed capital improvements plan
or amendments thereto, and a statement that any member of the public affected
by the capital improvements plan or amendments shall have the right to appear
at the public hearing and present evidence regarding the proposed capital
improvements plan or amendments. The governmental entity shall send notice
of the intent to hold a public hearing by mail to any person who has requested
in writing notification of the hearing date at least fifteen (15) days prior
to the hearing date, provided that the governmental entity may require that
9
any person making such request renew the request for notification, not more
frequently than once each year, in accordance with a schedule determined by
the governmental entity, in order to continue receiving such notices.
(4) If the governmental entity makes a material change in the capital
improvements plan or amendment, further notice and hearing may be provided
before the governmental entity adopts the revision if the governmental en-
tity makes a finding that further notice and hearing are required in the pub-
lic interest.
(5) Either following or concurrently with adoption of the initial or
amended capital improvements plan, a governmental entity shall conduct a
public hearing to consider adoption of an ordinance authorizing the impo-
sition of development impact fees or any amendment thereof. Notice of the
hearing shall be provided in the same manner as set forth in subsection (3) of
this section for adoption of a capital improvements plan, and such hearing,
at the option of the governmental entity, may be combined with the public
hearing held to adopt, amend or repeal the capital improvements plan.
(6) Nothing contained in this section shall be construed to alter the
procedures for adoption of an ordinance by the governmental entity. Pro-
vided, however, a development impact fee ordinance shall not be adopted as
an emergency measure but may be read for the first and second times on succes-
sive days prior to the public hearing to consider its adoption and shall not
take effect sooner than thirty (30) days following its adoption.
[67-8206, added 1992, ch. 282, sec. 1, p. 868; am. 2006, ch. 321, sec.
1, p. 1019. ]
67-8207. PROPORTIONATE SHARE DETERMINATION. (1) All development
impact fees shall be based on a reasonable and fair formula or method under
which the development impact fee imposed does not exceed a proportionate
share of the costs incurred or to be incurred by the governmental entity
in the provision of system improvements to serve the new development. The
proportionate share is the cost attributable to the new development after
the governmental entity considers the following: (i) any appropriate
credit, offset or contribution of money, dedication of land, or construction
of system improvements; (ii) payments reasonably anticipated to be made by
or as a result of a new development in the form of user fees and debt service
payments; (iii) that portion of general tax and other revenues allocated
by the jurisdiction to system improvements; and (iv) all other available
sources of funding such system improvements.
(2) In determining the proportionate share of the cost of system im-
provements to be paid by the developer, the following factors shall be con-
sidered by the governmental entity imposing the development impact fee and
accounted for in the calculation of the impact fee:
(a) The cost of existing system improvements within the service area or
areas;
(b) The means by which existing system improvements have been financed;
(c) The extent to which the new development will contribute to the cost
of system improvements through taxation, assessment, or developer or
landowner contributions, or has previously contributed to the cost of
system improvements through developer or landowner contributions.
(d) The extent to which the new development is required to contribute to
the cost of existing system improvements in the future.
10
(e) The extent to which the new development should be credited for pro-
viding system improvements, without charge to other properties within
the service area or areas;
(f) Extraordinary costs, if any, incurred in serving the new develop-
ment;
(g) The time and price differential inherent in a fair comparison of
fees paid at different times; and
(h) The availability of other sources of funding system improvements
including, but not limited to, user charges, general tax levies, inter-
governmental transfers, and special taxation. The governmental entity
shall develop a plan for alternative sources of revenue.
[67-8207, added 1992, ch. 282, sec. 1, p. 869; am. 1996, ch. 366, sec.
4, p. 1233; am. 2002, ch. 347, sec. 3, p. 989. ]
67-8208 . CAPITAL IMPROVEMENTS PLAN. (1) Each governmental entity in-
tending to impose a development impact fee shall prepare a capital improve-
ments plan. That portion of the cost of preparing a capital improvements
plan which is attributable to determining the development impact fee may be
funded by a one (1) time ad valorem levy which does not exceed two one-hun-
dredths percent ( .02%) of market value or by a surcharge imposed by ordi-
nance on the collection of a development impact fee which surcharge does not
exceed the development's proportionate share of the cost of preparing the
plan. For governmental entities required to undertake comprehensive plan-
ning pursuant to chapter 65, title 67, Idaho Code, such capital improvements
plan shall be prepared and adopted according to the requirements contained
in the local planning act, section 67-6509, Idaho Code, and shall be included
as an element of the comprehensive plan. The capital improvements plan shall
be prepared by qualified professionals in fields relating to finance, engi-
neering, planning and transportation. The persons preparing the plan shall
consult with the development impact fee advisory committee.
The capital improvements plan shall contain all of the following:
(a) A general description of all existing public facilities and their
existing deficiencies within the service area or areas of the govern-
mental entity and a reasonable estimate of all costs and a plan to de-
velop the funding resources related to curing the existing deficiencies
including, but not limited to, the upgrading, updating, improving, ex-
panding or replacing of such facilities to meet existing needs and us-
age;
(b) A commitment by the governmental entity to use other available
sources of revenue to cure existing system deficiencies where practi-
cal;
(c) An analysis of the total capacity, the level of current usage, and
commitments for usage of capacity of existing capital improvements,
which shall be prepared by a qualified professional planner or by a
qualified engineer licensed to perform engineering services in this
state;
(d) A description of the land use assumptions by the government entity;
(e) A definitive table establishing the specific level or quantity of
use, consumption, generation or discharge of a service unit for each
category of system improvements and an equivalency or conversion table
establishing the ratio of a service unit to various types of land uses,
including residential, commercial, agricultural and industrial;
11
(f) A description of all system improvements and their costs necessi-
tated by and attributable to new development in the service area based
on the approved land use assumptions, to provide a level of service not
to exceed the level of service adopted in the development impact fee or-
dinance;
(g) The total number of service units necessitated by and attributable
to new development within the service area based on the approved land
use assumptions and calculated in accordance with generally accepted
engineering or planning criteria;
(h) The projected demand for system improvements required by new
service units projected over a reasonable period of time not to exceed
twenty (20) years;
(i) Identification of all sources and levels of funding available to
the governmental entity for the financing of the system improvements;
(j ) If the proposed system improvements include the improvement of
public facilities under the jurisdiction of the state of Idaho or
another governmental entity, then an agreement between governmental
entities shall specify the reasonable share of funding by each unit,
provided the governmental entity authorized to impose development
impact fees shall not assume more than its reasonable share of funding
joint improvements, nor shall the agreement permit expenditure of de-
velopment impact fees by a governmental entity which is not authorized
to impose development impact fees unless such expenditure is pursuant
to a developer agreement under section 67-8214, Idaho Code; and
(k) A schedule setting forth estimated dates for commencing and com-
pleting construction of all improvements identified in the capital im-
provements plan.
(2) The governmental entity imposing a development impact fee shall
update the capital improvements plan at least once every five (5) years. The
five (5) year period shall commence from the date of the original adoption
of the capital improvements plan. The updating of the capital improvements
plan shall be made in accordance with procedures set forth in section
67-8206, Idaho Code.
(3) The governmental entity must annually adopt a capital budget.
(4) The capital improvements plan shall be updated in conformance with
the provisions of subsection (2) of this section each time a governmental en-
tity proposes the amendment, modification or adoption of a development im-
pact fee ordinance.
[67-8208, added 1992, ch. 282, sec. 1, p. 869; am. 1996, ch. 322, sec.
71, p. 1098; am. 1996, ch. 366, sec. 5, p. 1233; am. 2002, ch. 347, sec. 4,
p. 990. ]
67-8209. CREDITS. (1) In the calculation of development impact fees for
a particular project, credit or reimbursement shall be given for the present
value of any construction of system improvements or contribution or dedica-
tion of land or money required by a governmental entity from a developer for
system improvements of the category for which the development impact fee is
being collected, including such system improvements paid for pursuant to a
local improvement district. Credit or reimbursement shall not be given for
project improvement.
(2) In the calculation of development impact fees for a particular
project, credit shall be given for the present value of all tax and user
fee revenue generated by the developer, within the service area where the
12
impact fee is being assessed and used by the governmental agency for system
improvements of the category for which the development impact fee is being
collected. If the amount of credit exceeds the proportionate share for the
particular project, the developer shall receive a credit on future impact
fees for the amount in excess of the proportionate share. The credit may be
applied by the developer as an offset against future impact fees only in the
service area where the credit was generated.
(3) If a developer is required to construct, fund or contribute system
improvements in excess of the development project's proportionate share
of system improvement costs, including such system improvements paid for
pursuant to a local improvement district, the developer shall receive a
credit on future impact fees or be reimbursed at the developer's choice
for such excess construction, funding or contribution from development
impact fees paid by future development which impacts the system improvements
constructed, funded or contributed by the developer(s) or fee payer.
(4) If credit or reimbursement is due to the developer pursuant to this
section, the governmental entity shall enter into a written agreement with
the fee payer, negotiated in good faith, prior to the construction, funding
or contribution. The agreement shall provide for the amount of credit or the
amount, time and form of reimbursement.
[67-8209, added 1992, ch. 282, sec. 1, p. 871; am. 1996, ch. 366, sec.
6, p. 1235; am. 1999, ch. 291, sec. 10, p. 730; am. 2002, ch. 347, sec. 5,
p. 991. ]
67-8210. EARMARKING AND EXPENDITURE OF COLLECTED DEVELOPMENT IMPACT
FEES. (1) An ordinance imposing development impact fees shall provide that
all development impact fee funds shall be maintained in one (1) or more
interest-bearing accounts within the capital projects fund. Accounting
records shall be maintained for each category of system improvements and the
service area in which the fees are collected. Interest earned on development
impact fees shall be considered funds of the account on which it is earned,
and not funds subject to section 57-127, Idaho Code, and shall be subject
to all restrictions placed on the use of development impact fees under the
provisions of this chapter.
(2) Expenditures of development impact fees shall be made only for the
category of system improvements and within or for the benefit of the service
area for which the development impact fee was imposed as shown by the capi-
tal improvements plan and as authorized in this chapter. Development impact
fees shall not be used for any purpose other than system improvement costs to
create additional improvements to serve new growth.
(3) As part of its annual audit process, a governmental entity shall
prepare an annual report:
(a) Describing the amount of all development impact fees collected, ap-
propriated, or spent during the preceding year by category of public fa-
cility and service area; and
(b) Describing the percentage of tax and revenues other than impact
fees collected, appropriated or spent for system improvements during
the preceding year by category of public facility and service area.
(4) Collected development impact fees must be expended within eight
(8) years from the date they were collected, on a first-in, first-out (FIFO)
basis, except that the development impact fees collected for wastewater
collection, treatment and disposal and drainage facilities must be expended
within twenty (20) years. Any funds not expended within the prescribed times
13
shall be refunded pursuant to section 67-8211, Idaho Code. A governmental
entity may hold the fees for longer than eight (8) years if it identifies, in
writing:
(a) A reasonable cause why the fees should be held longer than eight (8)
years; and
(b) An anticipated date by which the fees will be expended but in no
event greater than eleven (11) years from the date they were collected.
[67-8210, added 1992, ch. 282, sec. 1, p. 871; am. 1996, ch. 366, sec.
7, p. 1236; am. 2002, ch. 347, sec. 6, p. 992; am. 2006, ch. 321, sec. 2,
p. 1020. ]
67-8211. REFUNDS. (1) Any governmental entity which adopts a develop-
ment impact fee ordinance shall provide for refunds upon the request of an
owner of property on which a development impact fee has been paid if:
(a) Service is available but never provided;
(b) A building permit or permit for installation of a manufactured home
is denied or abandoned;
(c) The governmental entity, after collecting the fee when service is
not available, has failed to appropriate and expend the collected de-
velopment impact fees pursuant to section 67-8210(4) , Idaho Code; or
(d) The fee payer pays a fee under protest and a subsequent review of the
fee paid or the completion of an individual assessment determines that
the fee paid exceeded the proportionate share to which the governmental
entity was entitled to receive.
(2) When the right to a refund exists, the governmental entity is re-
quired to send a refund to the owner of record within ninety (90) days after
it is determined by the governmental entity that a refund is due.
(3) A refund shall include a refund of interest at one-half (1/2) the
legal rate provided for in section 28-22-104, Idaho Code, from the date on
which the fee was originally paid.
(4) Any person entitled to a refund shall have standing to sue for a re-
fund under the provisions of this chapter if there has not been a timely pay-
ment of a refund pursuant to subsection (2) of this section.
[67-8211, added 1992, ch. 282, sec. 1, p. 872; am. 2002, ch. 347, sec.
7, p. 993. ]
67-8212. APPEALS. (1) A governmental entity which adopts a development
impact fee ordinance shall provide for administrative appeals by the devel-
oper or fee payer from any discretionary action or inaction by or on behalf of
the governmental entity.
(2) A fee payer may pay a development impact fee under protest in order
to obtain a development approval or building permit. A fee payer making such
payment shall not be estopped from exercising the right of appeal provided in
this chapter, nor shall such fee payer be estopped from receiving a refund of
any amount deemed to have been illegally collected.
(3) A governmental entity which adopts a development impact fee ordi-
nance shall provide for mediation by a qualified independent party, upon
voluntary agreement by the fee payer and the governmental entity, to address
a disagreement related to the impact fee for proposed development. The
ordinance shall provide that mediation may take place at any time during
the appeals process and participation in mediation does not preclude the
fee payer from pursuing other remedies provided for in this section. The
14
ordinance shall provide that mediation costs will be shared equally by the
fee payer and the governmental entity.
[67-8212, added 1992, ch. 282, sec. 1, p. 872; am. 1996, ch. 366, sec.
8, p. 1236. ]
67-8213. COLLECTION. A governmental entity may provide in a develop-
ment impact fee ordinance the means for collection of development impact
fees, including, but not limited to:
(1) Additions to the fee for reasonable interest and penalties for non-
payment or late payment;
(2) Withholding of the building permit or other governmental approval
until the development impact fee is paid;
(3) Withholding of utility services until the development impact fee is
paid; and
(4) Imposing liens for failure to timely pay a development impact fee
following procedures contained in chapter 5, title 45, Idaho Code.
A governmental entity that discovers an error in its impact fee formula
that results in assessment or payment of more than a proportionate share
shall, at the time of assessment on a case by case basis, adjust the fee to
collect no more than a proportionate share or discontinue the collection of
any impact fees until the error is corrected by ordinance.
[67-8213, added 1992, ch. 282, sec. 1, p. 872; am. 2002, ch. 347, sec.
8, p. 993. ]
67-8214 . OTHER POWERS AND RIGHTS NOT AFFECTED. (1) Nothing in this
chapter shall prevent a governmental entity from requiring a developer to
construct reasonable project improvements in conjunction with a development
project.
(2) Nothing in this chapter shall be construed to prevent or pro-
hibit private agreements between property owners or developers, the Idaho
transportation department and governmental entities in regard to the con-
struction or installation of system improvements or providing for credits
or reimbursements for system improvement costs incurred by a developer
including interproject transfers of credits or providing for reimbursement
for project improvements which are used or shared by more than one (1)
development project. If it can be shown that a proposed development has a
direct impact on a public facility under the jurisdiction of the Idaho trans-
portation department, then the agreement shall include a provision for the
allocation of impact fees collected from the developer for the improvement
of the public facility by the Idaho transportation department.
(3) Nothing in this chapter shall obligate a governmental entity to ap-
prove development which results in an extraordinary impact.
(4) Nothing in this chapter shall obligate a governmental entity
to approve any development request which may reasonably be expected to
reduce levels of service below minimum acceptable levels established in the
development impact fee ordinance.
(5) Nothing in this chapter shall be construed to create any additional
right to develop real property or diminish the power of counties or cities
in regulating the orderly development of real property within their bound-
aries.
(6) Nothing in this chapter shall work to limit the use by governmen-
tal entities of the power of eminent domain or supersede or conflict with re-
15
quirements or procedures authorized in the Idaho Code for local improvement
districts or general obligation bond issues.
(7) Nothing herein shall restrict or diminish the power of a govern-
mental entity to annex property into its territorial boundaries or exclude
property from its territorial boundaries upon request of a developer or
owner, or to impose reasonable conditions thereon, including the recovery of
project or system improvement costs required as a result of such voluntary
annexation.
[67-8214, added 1992, ch. 282, sec. 1, p. 873; am. 1996, ch. 366, sec.
9, p. 1237. ]
67-8215. TRANSITION. (1) The provisions of this chapter shall not be
construed to repeal any existing laws authorizing a governmental entity to
impose fees or require contributions or property dedications for capital
improvements. All ordinances imposing development impact fees shall be
brought into conformance with the provisions of this chapter within one (1)
year after the effective date of this chapter. Impact fees collected and
developer agreements entered into prior to the expiration of the one (1)
year period shall not be invalid by reason of this chapter. After adoption
of a development impact fee ordinance, in accordance with the provisions
of this chapter, notwithstanding any other provision of law, development
requirements for system improvements shall be imposed by governmental
entities only by way of development impact fees imposed pursuant to and in
accordance with the provisions of this chapter.
(2) Notwithstanding any other provisions of this chapter, that portion
of a project for which a valid building permit has been issued or construc-
tion has commenced prior to the effective date of a development impact fee
ordinance shall not be subject to additional development impact fees so long
as the building permit remains valid or construction is commenced and is pur-
sued according to the terms of the permit or development approval.
[67-8215, added 1992, ch. 282, sec. 1, p. 873. ]
67-8216. SEVERABILITY. The provisions of this chapter are hereby de-
clared to be severable and if any provision of this chapter or the applica-
tion of such provision to any person or circumstance is declared invalid for
any reason, such declaration shall not affect the validity of remaining por-
tions of this chapter.
[67-8216, added 1992, ch. 282, sec. 1, p. 873 . ]