HomeMy WebLinkAboutImpact Fee Comparison ReportDate: December 12, 2011
TO: Honorable Mayor and Town Council
FROM: Tom Brymer, Town Manager /Superintendent
SUBJECT: Impact Fee Discussion: Surrounding Cities Comparison Report
Below is a short report on the use of impact fees by surrounding municipalities. The
cities referenced have also been used as benchmarks in previous property tax
comparisons. Perhaps this information will be useful to the Council as it deliberates on
the possible implementation impact fees.
In an article written for the International City Manager's Association (ICMA)
regarding the successful implementation of an impact fee, the author states, "Despite the
potential difficulty of enacting development impact fees, it is a revenue - raising method
worthy of serious consideration, especially where governmental officials favor
community growth and want to manage it effectively." (Townsend, 1996)
In another article titled, "Best and Worst Methods for Calculating Impact Fees ",
the author outlines two major approaches to establishing impact fees — an aggressive
approach that provides more room for discounting but also increases the potential for
litigation, and a conservative approach that sets maximum amounts at legally defensible
levels. He concludes that each method may be deemed appropriate depending on the
perspective and circumstances of the enacting jurisdiction. (Malizia, 2006) The following
flowchart illustrates the process for estimating impact fees as described in the second
article:
Steps to Estimate impact Fees
1. Estimate needlimpact
4. Estimate proportionate
cost by land use categories
5. Deduct credits h
2. Identify public facility costs
3. Estimate current level of service
Establish benefit zones
6. Calculate net cost for land use categories
A = Aggressive approach C = Conservative approach
Impact Fee Comparison Summary
Since impact fees have the potential to affect the Town's competitive advantage
with regard to economic development, it is informative to know which cities in our
surrounding area currently have impact fees in place and at what levels. This report
contains comparative data on ten metroplex cities that have historically been utilized as
benchmarks for the Town of Westlake. Of the 10 benchmark cities surveyed, nine utilize
both water and waste water impact fees. Additionally, five of the nine also impose a
roadway or transportation fee. The table below reflects both the maximum water and
wastewater impact fees currently assessed for each jurisdiction as well as the
roadway /transportation impact fee range (lowest to highest) where applicable. These fees
are expressed in terms of Development Unit Equivalency (DUE) or Service Equivalency
Unit (SUE). Each municipality surveyed utilizes a unique method for calculating the
final impact fee. The water and wastewater fees cited are tiered based on the size of the
water meter; for uniformity, the figures shown in the table below represent the maximum
SUE fee for based on a 1" meter.
Table i — Impact Fee Comparison for Surrounding Cities
City
Water
Wastewater
Roadway /Transportation
Colleyville
$24,908.00
$6,425.00
$461 (Jr. College) - $94,935 (Movie Theater)
"Flower Mound
$12,175.00
$1,598 - $14,948
$511 (single family) - $879 (Superstore)
Fort Worth
$1,447.89
$464.26
$382 (single family) - $71,563 (movie Theater)
Grapevine
$3,189.70
$1,548.09
n /a?
Haslet
$5,731.00
$4,945.00
n /a?
Keller
$1,247.49
$1,419.50
$1,619 - $2,435
North Richland Hills
$1,815.29
$511.02
n /a?
Roanoke
$2,641.22
$987.63
n /a?
Southlake
$2,085.39
$1,240.47
$1,200 (single family) - $10,578 (arena)
Trophy Club
I n/a
n/a
n /a?
* *Fee varies based on geography — 4 distinct service areas
While Colleyville has the highest adopted rate, their current formula
automatically reduces the maximum collection amount to 25% of the max rate i.e. $6,227
and $1,606 respectively for a 1" meter. Similarly, Flower Mound employs a 19 -step
formula that changes the final amount drastically from the base amount referenced above;
the final amount may be much higher or lower depending on a number of factors.
Ignoring these two highest amounts, the average impact fee for a 1" meter for water
services is approximately $2,600 and $1,588 for wastewater.
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