2017-07-12Impact Fee Advisory Committee Meeting Agenda – Monday, July 17, 2017 Page 1 of 2
All materials presented at public meetings shall become property of the City of Meridian.
Anyone desiring accommodation for disabilities related to documents and/or hearing,
Please contact the City Clerk’s Office at 888-4433 at least 48 hours prior to the public meeting.
1.
Fire Station #1
Training Room
540 E. Franklin Road
Meridian, Idaho 83642
Wednesday July 12, 2017 at 2:30 P.M.
1. Roll-Call Attendance
__X__ David Fulkerson __X__ Gene Strate __X__ Jon Wardle
__O__ Matthew Adams __X__ Spencer Martin __X__ “Butch” Weedon
__X__ John Nesmith
Non Roll Call Attendance:
Steve Siddoway, Mark Niemeyer, Charlie Butterfield, Ted Baird, Todd Lavoie,
Jenny Fields, Elizabeth Sayre
2. Volunteer Appreciation
Volunteer appreciation mugs were given to committee members from Mayor’s
Office
3. PowerPoint presentation review for considering Impact Fee Advisory Committee
Todd Lavoie provide PowerPoint handout on the Proposed Full Cost
Recovery of Impact fees.
Discussions were had when there is not enough Impact Funds collected,
General Fund to cover Impact Fee eligible projects. i.e. 77 Acre Park.
CIP/CFP clarification: each department generates their Capital
Improvement Plan information. BBC Report is based on the CIP data that is
produced by each department.
Committee has decided a couple of meetings ago to open up Impact Study
in September 2018. The cost recovery proposal to Council is an interim (20
months) fix to fill in the gap.
4. Discussion on Full Cost Recovery rates
Discussions were had on the need to communicate to Development
Community of the interim Impact Fee increase, then another to come in
2019.
A motion and a second to approve on bring in front of Council to obtain
Fully Recovery Cost. Motion carried – all ayes.
IMPACT FEE ADVISORY COMMITTEE
MEETING AGENDA
Impact Fee Advisory Committee Meeting Agenda – Monday, July 17, 2017 Page 2 of 2
All materials presented at public meetings shall become property of the City of Meridian.
Anyone desiring accommodation for disabilities related to documents and/or hearing,
Please contact the City Clerk’s Office at 888-4433 at least 48 hours prior to the public meeting.
Committee has requested staff to do outreach to BCA and Realtor Group
prior to taking the proposal to Council.
o BCA Government Affairs Committee meets 2nd Tuesday of the month.
Next meeting is Aug 8th at 3pm.
Staff to put together a timeline of action items.
Staff to send committee member Jon Wardle 2014 BBC Report.
5. Adjourn
Start Time: 2:35pm
End Time: 3:41pm
Proposed Full Cost
Recovery Fee
Structure
July, 11, 2017
Impact Fee
Advisory
Committee
History/Timeline of Current Impact Fee Rates
Current Impact Fee Rates
Proposed Impact Fee Rates (Full Cost Recovery)
Estimated value of proposed changes
Justification for Proposed Fee Changes
Questions
City of Meridian
Agenda
September 2013 –BBC Research Firm begins Impact Fee Calculations
November 2013 –BBC drafts first report with City
December 2013 –BBC Presents final report to Council for public hearing
February 2014 –Council requests staff to reconsider calculation methods for
Single Family Homes versus Multi-Family
March 2014 –Finance provides updated calculations for Single Family Homes
versus Multi-Family
March 2014 –Council adopts proposed budget
May 2014 –Impact Fee schedule is updated
City of Meridian
History of Current Impact Fees
Council approved the Current Impact Fees March 2014
Effective Date : May 2014
Expiration Date : May 2023
City of Meridian
Current Impact Fee Rates
Impact Fee Advisory Committee proposed fees February 2014
City of Meridian
Proposed Impact Fee Rates
BBC Proposed Impact Fee (02/04/14)
Res. - SFH Res. - MFH Commercial
Fire Impact Fee 681.00$ 681.00$ 0.35$
Parks Impact Fee 1,113.00$ 1,113.00$ -$
Police Impact Fee 223.00$ 223.00$ 0.12$
Total Impact Fee 2,017.00$ 2,017.00$ 0.47$
Comparison between Adopted Current Impact Fees and Proposed Full Cost
Recovery
City of Meridian
Proposed Impact Fee Rates
BBC Proposed Impact Fee (02/04/14)
Res. - SFH Res. - MFH Commercial
Fire Impact Fee 681.00$ 681.00$ 0.35$
Parks Impact Fee 1,113.00$ 1,113.00$ -$
Police Impact Fee 223.00$ 223.00$ 0.12$
Total Impact Fee 2,017.00$ 2,017.00$ 0.47$
Dollar Value Change - Impact Fee
Res. - SFH Res. - MFH Commercial
Fire Impact Fee 129.93$ 129.93$ 0.06$
Parks Impact Fee 32.28$ 345.48$ -$
Police Impact Fee 87.28$ 87.28$ 0.05$
Total Impact Fee 249.49$ 562.69$ 0.11$
Estimated/Calculated Value of Proposed Change
Previous three Fiscal Years foregone revenue
Foregone Impact Revenue must be made up by General Fund Revenues
Fire Department = $693k
Parks Department = $529k
Police Department = $486k
City of Meridian
Proposed Impact Fee Rates
Difference between Current and Proposed Impact Fee Rates
2014 (4)2015 (4)2016 (4)2017 (4)2018 (4)Totals
Nonresidential Square Footage (1)113,532.29$ 147,212.39$ 81,535.35$ -$ -$ 342,280.03$
Single Family (units * 2,210 sqft)117,127.49$ 241,325.82$ 351,207.00$ -$ -$ 709,660.31$
Multi-Family (units * 1,127 sqft)291,965.51$ 251,090.18$ 117,419.00$ -$ -$ 660,474.69$
Total Calculated Cash Flow 522,625.29$ 639,628.39$ 550,161.35$ -$ -$ 1,712,415.03$
Estimated/Calculated Value of Proposed Change
Projected six Fiscal Years change in revenue
City of Meridian
Proposed Impact Fee Rates
Projected Additional Revenue 2018 2019 2020 2021 2022 2023
Fire Impact Fee 129.93$ Single Family 134,277$ 134,277$ 103,290$ 92,961$ 92,961$ 92,961$ 650,725$
Parks Impact Fee 32.28$ Single Family 33,360$ 33,360$ 25,661$ 23,095$ 23,095$ 23,095$ 161,667$
Police Impact Fee 87.28$ Single Family 90,200$ 90,200$ 69,384$ 62,446$ 62,446$ 62,446$ 437,122$
Total Impact Fee 249.49$ Single Family 257,836$ 257,836$ 198,335$ 178,502$ 178,502$ 178,502$ 1,249,514$
Fire Impact Fee 129.93$ Multi-family 21,733$ 14,488$ 11,591$ 11,591$ 11,591$ 11,591$ 82,584$
Parks Impact Fee 345.48$ Multi-family 57,786$ 38,524$ 30,819$ 30,819$ 30,819$ 30,819$ 219,588$
Police Impact Fee 87.28$ Multi-family 14,599$ 9,733$ 7,786$ 7,786$ 7,786$ 7,786$ 55,475$
Total Impact Fee 562.69$ Multi-family 94,118$ 62,745$ 50,196$ 50,196$ 50,196$ 50,196$ 357,647$
Fire Impact FeeTotal 156,009$ 148,765$ 114,880$ 104,551$ 104,551$ 104,551$ 733,308$
Parks Impact FeeTotal 91,146$ 71,884$ 56,481$ 53,915$ 53,915$ 53,915$ 381,255$
Police Impact FeeTotal 104,799$ 99,932$ 77,170$ 70,232$ 70,232$ 70,232$ 492,597$
Total Impact FeeTotal 351,954$ 320,581$ 248,532$ 228,698$ 228,698$ 228,698$ 1,607,160$
Fire Department
When the impact fees were last established, the cost of a fire engine was $510,000. The cost
today is $550,000. Roughly 7% increase in cost for the same item
When the impact fees were last established, the cost to build per square foot was
approximately $200-$220 per square foot. Today the cost, conservatively, is approximately
$300 per square foot for same construction design and materials
When the impact fees were last established, the cost for land was significantly lower than
the cost of land today
Lastly, impact fees for Fire can be used not only to purchase the fire engine and build the
fire station, but to equip both as well. Simply put, the cost of goods and needed equipment
has increased at an equally alarming rate.
City of Meridian
Justification for Proposed Impact Fees
Parks Department
When the last impact fee study was done, the development cost per acre was calculated at
$142,000/acre. Current development costs are around $206,000/acre.
In the past 3 years, we have foregone $529,000 in potential Park Impact Fees that could have been
paid for by development, but now must be made up some other way.
We have a proven track record of using current impact fees to develop quality parks for the
growing population. Parks currently in development using Park Impact Fees include Hillsdale Park,
Reta Huskey Park, and Keith Bird Legacy Park. Next year we hope to begin construction of the
South Meridian Regional Park.
Future parks to meet growth projections include future phases of South Meridian Regional Park,
development of the Borup Property (West Meridian), and Margaret Aldape Park (North Meridian
along Boise River), as well as smaller park partnerships such as the potential future neighborhood
park at Brundage/Graycliff. These parks will be paid for by a combination of park impact fees,
general fund (including CIP Savings Fund), and partnerships/donations.
Raising the impact fee will ensure that new development is paying its own way as much as
possible to maintain existing levels of service.
City of Meridian
Justification for Proposed Impact Fees
Police Department
PD is limited on what we can use Impacts fees
Raising PD fees would place greater burden on growth rather than all citizens for future
projects
Growth is having a major impact on providing quality services
We are limited by statute on how much revenue we can bring in
We must be fiscally responsible and collect revenue where we can and use it to keep up
with growth
Collecting 100% on impacts fees from generated growth may lead to less revenue needed
else where
Could reduce some of a property tax increase if we are collecting 100% in impact fees
If there is not comfort to increase collected fees then we must update and recalculate
current fees collected
City of Meridian
Justification for Proposed Impact Fees
City of Meridian
Questions
…
City of Meridian
A