2022 Development Impact Fees StudyDevelopment Impact Fees Study
prepared by
DP Guthrie LLC
September 16, 2022
September 16, 2022
Mr. Todd Lavoie
Chief Financial Officer
City of Meridian
33 E Broadway Ave
Meridian, Idaho 83642
Subject: Development Impact Fees Report
Dear Mr. Lavoie,
DP Guthrie LLC is pleased to provide the 2022 development impact fee update for the City of Meridian. After
collaborating with staff and receiving input from the Impact Fee Advisory Committee, this draft report
summarizes key findings and recommendations related to the growth cost of capital improvements to be funded
by development impact fees, along with the need for other revenue sources to ensure a financially feasible
Comprehensive Financial Plan.
It has been a pleasure working with you. Also, I am grateful to City staff for engaging with quality information and
insight regarding best practices for the City of Meridian.
Sincerely,
Dwayne Guthrie, PhD, AICP
DP Guthrie LLC
TABLE OF CONTENTS
EXECUTIVESUMMARY......................................................................................................................................................... 1
UNIQUE REQUIREMENTS OF THE IDAHO IMPACT FEE ACT.......................................................................................................................
1
PROPOSEDIMPACT FEES..................................................................................................................................................................
2
PARKS AND RECREATION IMPACT FEES................................................................................................................................ 4
PARKIMPROVEMENTS.....................................................................................................................................................................4
LANDFOR PARKS............................................................................................................................................................................
6
RECREATIONBUILDINGS...................................................................................................................................................................
8
REVENUE CREDIT EVALUATION..........................................................................................................................................................
9
PROPOSED AND CURRENT IMPACT FEES..............................................................................................................................................
9
FORECAST OF REVENUES FOR PARKS AND RECREATION........................................................................................................................
10
COMPREHENSIVE FINANCIAL PLAN FOR PARKS AND RECREATION...........................................................................................................
11
POLICEIMPACT FEES..........................................................................................................................................................
12
PROPORTIONATESHARE................................................................................................................................................................
12
EXCLUDEDCOSTS.........................................................................................................................................................................
13
CURRENT USE AND AVAILABLE CAPACITY..........................................................................................................................................
13
POLICE FACILITIES, SERVICE UNITS, AND STANDARDS...........................................................................................................................
13
POLICE INFRASTRUCTURE NEEDS.....................................................................................................................................................
15
REVENUE CREDIT EVALUATION........................................................................................................................................................
15
POLICEDEVELOPMENT FEES...........................................................................................................................................................
15
PROJECTED REVENUE FOR POLICE FACILITIES......................................................................................................................................
17
COMPREHENSIVE FINANCIAL PLAN FOR POLICE...................................................................................................................................
18
FIREIMPACT FEES..............................................................................................................................................................
19
EXISTING STANDARDS FOR FIRE FACILITIES.........................................................................................................................................
19
FIREINFRASTRUCTURE NEEDS.........................................................................................................................................................
21
REVENUE CREDIT EVALUATION........................................................................................................................................................
21
CURRENT AND PROPOSED FIRE IMPACT FEES.....................................................................................................................................
22
PROJECTED REVENUE FOR FIRE FACILITIES.........................................................................................................................................
24
COMPREHENSIVE FINANCIAL PLAN FOR FIRE FACILITIES........................................................................................................................
25
FEE IMPLEMENTATION AND ADMINISTRATION..................................................................................................................
26
COSTOF CFP PREPARATION...........................................................................................................................................................
26
DEVELOPMENTCATEGORIES...........................................................................................................................................................
26
CREDITS AND REIMBURSEMENTS.....................................................................................................................................................
27
APPENDIX A: LAND USE ASSUMPTIONS.............................................................................................................................
28
SERVICEAREAS............................................................................................................................................................................
28
SUMMARY OF GROWTH INDICATORS................................................................................................................................................
28
PROPORTIONATESHARE................................................................................................................................................................
29
RESIDENTIAL DEVELOPMENT AND PERSONS PER HOUSING UNIT............................................................................................................
30
DEMAND INDICATORS BY DWELLING SIZE..........................................................................................................................................
31
.LOBS AND NONRESIDENTIAL DEVELOPMENT.......................................................................................................................................
34
APPENDIX B: CHANGES IN STANDARDS AND COST FACTORS............................................................................................. 36
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Executive Summary
Impact fees are one-time payments used to construct system improvements that serve multiple development
projects or even the entire jurisdiction. By law, impact fees can only be used for capital improvements, not
operating or maintenance costs. Impact fees are subject to legal standards that satisfy three key tests: need,
benefit, and proportionality.
• First, to justify a fee for public facilities, local government must demonstrate a need for capital
improvements.
• Second, new development must derive a benefit from the payment of the fees (i.e., in the form of public
facilities constructed within a reasonable timeframe).
• Third, the fee paid should not exceed a development's proportionate share of the capital cost.
As documented in this report, the City of Meridian has complied with applicable legal precedents. Impact fees are
proportionate and reasonably related to the capital improvement demands of new development, with the
projects identified in this study taken from Meridian's Comprehensive Financial Plan (CFP). Specific costs have
been identified using local data and current dollars. With input from City staff, DP Guthrie LLC determined service
units for each type of infrastructure and calculated proportionate share factors to allocate costs by type of
development. This report documents the formulas and input variables used to calculate the impact fees for each
type of public facility. Impact fee methodologies also identify the extent to which new development is entitled to
various types of credits to avoid potential double payment of growth -related capital costs.
The Idaho Development Impact Fee Act (Idaho Code Title 67 Chapter 82) sets forth "an equitable program for
planning and financing public facilities needed to serve new growth." The enabling legislation calls for three
integrated products: 1) Land Use Assumptions (LUA) for at least 20 years, 2) Capital Improvements Plan, which the
City of Meridian calls Comprehensive Financial Plan (CFP), and 3) Development Impact Fees (DIFs).
The LUA (see Appendix A) uses population and housing unit projections provided by City staff. In addition, the
CFP and DIF for fire and police facilities require demographic data on nonresidential development. This document
includes nonresidential land use assumptions such as jobs and floor area within the City of Meridian, along with
service units by residential size thresholds.
The CFP and DIF are in the middle section of this report, organized by chapters pertaining to each public facility
type (i.e., parks/recreation, police, and fire). Each chapter documents existing infrastructure standards, the
projected need for improvements to accommodate new development, the updated DIF compared to current fees,
revenue projections and funding strategy for growth -related infrastructure, and a CFP listing specific
improvements to be completed by the City of Meridian.
Unique Requirements of the Idaho Impact Fee Act
The Idaho Development Impact Fee Act has several requirements not common in the enabling legislation of other
states. This overview summarizes these unique requirements, which have been met by the City of Meridian, as
documented in this study. First, as specified in 67-8204(2) of the Idaho Act, "development impact fees shall be
calculated on the basis of levels of service for public facilities ... applicable to existing development as well as
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new growth and development." Second, Idaho requires a Capital Improvements Plan (aka CFP in Meridian) [see
67-8208]. The CFP requirements are summarized in this report, with more detailed information maintained by
City staff responsible for each type of infrastructure funded by impact fees. Third, the Idaho Act states the cost
per service unit (i.e., impact fee) may not exceed the cost of growth -related system improvements divided by the
number of projected service units attributable to new development [see 67-8204(16)]. Fourth, Idaho requires a
proportionate share determination [see 67-8207]. The City of Meridian has complied by considering various types
of applicable credits that may reduce the capital costs attributable to new development. Fifth, Idaho requires a
Development Impact Fee Advisory Committee established to: a) assist in adopting land use assumptions, b)
review the CFP and file written comments, c) monitor and evaluate implementation of the CFP, d) file periodic
reports on perceived inequities in implementing the plan or imposing DIFs, and e) advise the governmental entity
of the need to update the LUA, CFP and DIF study.
Proposed Impact Fees
Figure 1 summarizes the methods and cost components used for each type of public facility in Meridian's 2022
impact fee study. City Council may change the proposed impact fees by eliminating infrastructure types, cost
components, and/or specific capital improvements. If changes are made during the adoption process, DP Guthrie
LLC will update the impact fee study to be consistent with legislative policy decisions.
Figure 1: Proposed Fee Methods and Cost Components
Type of Impact
Service
Incremental Expansion
CostAllocation
Fee
Area
(current standards)
Parks and
Park Improvements,
Recreation
Citywide
Land for Parks, and
Residential
Facilities
Recreation Centers
Functional Population
and Inbound Vehicle
Police Facilities
Citywide
Police Buildings
Trips to Nonresidential
Development
Fire Buildings,
Functional
Apparatus,
Fire Facilities
Citywide
Population
Communications &
and Jobs
Equipment
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Figure 2 summarizes proposed 2022 impact fees for new development in the City of Meridian. As discussed in
Appendix A, DP Guthrie LLC recommends that residential fees be imposed by dwelling size, based on climate -
controlled space. For a building with more than one residential unit, City staff will determine the average size
threshold for the entire building by dividing total climate -controlled floor area, less ancillary building space, by the
total number of dwellings in the building. Ancillary floor area includes community rooms, fitness centers,
management offices, and maintenance areas.
For nonresidential development, Commercial includes all buildings within a shopping center, plus stand-alone
retail development and eating/drinking places (i.e., restaurants and bars). All Other includes industrial,
warehousing, offices, business services, and personal services (i.e., every type of non-residential development not
considered Commercial).
Figure 2: Proposed Impact Fee Schedule
Citywide Service Area Park and Police Fire Proposed Current Increase Proposed
Recreation Facilities Facilities Total Total to Current
Facilities (2022) (2019) Ratio
Residential (perhousing unit) by5puare Feet of Climate -Controlled FloorArea
1200 or less
1201 to 1700
1701 to 2500
2501 to 3200
3201 or more
Commercial (Restaurant/Retail)
All Other
$1,946
$190
$470
$3,006
$294
$726
$4,119
$402
$995
$4,935
$482
$1,192
$5,544
$542
$1,339
$2,606
$4,026
$5,516
$6,609
$7,425
$1,095
$1,511
2.38
$1,909
$2,117
2.11
$2,483
$3,033
2.22
$2,943
$3,666
2.25
$3,4331
$3,992
1 2.16
$0.00 $1.23 1$1.29 $2.52 1 $0.881 $1.64 1 2.86
$0.00 $0.19 1 $0.96 $1.15 1 $0.461 $0.69 1 2.50
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Parks and Recreation Impact Fees
The 2022 impact fee for parks and recreation facilities will enable Meridian to maintain current infrastructure
standards for improved acres of parks, acquire additional land for future parks, and expand floor area of
recreation buildings. All parks and recreation facilities included in the impact fees have a citywide service area.
Cost components are allocated 100% percent to residential development.
Park Improvements
Citywide parks have active amenities, such as a soccer/football/baseball fields, basketball/volleyball courts, and
playgrounds that will attract patrons from the entire service area. As shown in Figure PR1, the updated
infrastructure standard is 2.66 acres per 1,000 residents based on Meridian's projected population in 2023 and
completion of Phase 2 improvements to Discovery Park by the end of Fiscal Year 2023.
Projected need for park improvements is shown at the bottom of Figure PR1. From 2023 through 2032, Meridian
will improve 87 acres of parks, expected to cost approximately $35.76 million.
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Figure PR1: Improvements Standard and Need for Improved Acres
Location Improved Acres
Discovery Park
63.19
Julius M. Kleiner Park
58.20
Settlers Park
57.74
Heroes Park
30.13
Fuller Park
23.20
BearCreak Park
18.82
Tully Park
18.68
Storey Park & Bark Park
17.85
Gordon Harris Park
11.13
Hillsdale Park
9.54
Reta Huskey Park
8.92
Jabil Soccer Fields
8.40
Keith Bird Legacy Park
7.50
Seasons Park
7.13
Chateau Park
6.70
Renaissance Park
6.53
Champion Park
5.98
Heritage MS Ball Fields
5.60
8th Street Park
2.78
Meridian Pool Park
1.31
City Hall Plaza
0.90
Centennial Park
0.40
Generations Plaza
0.24
Tota 1
370.85
Allocation Factors for Parks
Improvements Cost per Acre $411,000
Residential Proportionate Share 100%
Service Units
Population in 2023 139,249
Infrastructure Standards for Park Improvements
Improved Acres
Residential (per person)
Year
Base
2022
Year1
2023
Year2
2024
Year3
2025
Year4
2026
Years
2027
Year10
2032
0.00266
Park Improvement Needs
Population
Improved Acres
139,249
370.8
145,028
386.2
151,006
402.2
154,310
411.0
157,614
419.8
171,903
457.8
2023-2032Increase 32,654 87.0
Growth Cost of Parks => $35,757,000
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Land for Parks
In the 2019 study, land for additional parks was only 1% of the growth cost and no standard was documented. In
the 2022 study, land for additional parks is 26% of the growth cost for parks & recreation. Additional land for
parks is estimated to cost $150,000 per acre. City staff obtained supporting documentation for the land cost
factor from local appraisals, with input from the DIF Advisory Committee.
As shown in Figure PR2, the current infrastructure standard for park land is 3.14 acres per 1,000 residents. In
comparison to inventory of improved parks, the table below includes the following changes:
1. Phase 3 acreage added to Discovery Park
2. Inserted West Regional Park site
3. Deleted Jabil Soccer Fields (not owned by Meridian)
4. Deleted Heritage Middle School Ballfields (not owned by Meridian)
At the bottom of the table below is a needs analysis for park land. To maintain the current standard over the next
ten years, Meridian will acquire 120.5 acres of land for future parks, which is expected to cost approximately
$18.08 million.
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Figure PR2: Land Standard and Need for Park Sites
Park Sites Land Area (acres)
Discovery Park
77.69
Julius M. Kleiner Park
58.20
Settlers Park
57.74
West Regional Park
47.16
Heroes Park
30.13
Fuller Park
23.20
Bear Creak Park
18.82
Tully Park
18.68
Storey Park & Bark Park
17.85
Gordon Harris Park
11.13
Hillsdale Park
9.54
Reta Huskey Park
8.92
Keith Bird Legacy Park
7.50
Seasons Park
7.13
Chateau Park
6.70
Renaissance Park
6.53
Champion Park
5.98
8th Street Park
2.78
Meridian Pool Park
1.31
City Hall Plaza
0.90
Centennial Park
0.40
Generations Plaza
0.24
Total
418.51
Allocation Factors for Park Land
Land Cost per Acre $150,000
Residential Proportionate Share 100%
Service Units
Population in 20221 133,470
Infrastructure Standards for Park Land
Residential (per person)
Year
Base
2022
Year1
2023
Year2
2024
Year3
2025
Year4
2026
Years
2027
Year10
2032
Park Sites (acres)
0.00314
Park Land Needs
Population
Park Sites (acres)
133,470
418.5
139,249
436.6
145,028
454.7
151,006
473.5
154,310
483.9
157,614
494.2
171,903
539.0
2022-20321ncrease 38,433 120.5
Growth Cost of additional Park Land=> $18,075,000
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Recreation Buildings
Figure PR3 lists floor area for parks and recreation buildings in 2022, including the maintenance shop, which is
consistent with approach used for public safety facilities. As shown in their respective sections of this report, the
building inventories for fire and police include support facilities for administration and training.
City staff provided the cost estimate of $670 per square foot to construct future recreation buildings. The lower
portion of the table below indicates projected service units over the next ten years. To maintain current
standards, Meridian will need 22,827 additional square feet of recreation building space, expected to cost
approximately $15.29 million.
Figure PR3: Infrastructure Standards and Needs for Recreation Buildings
Existing Buildinas Square Feet
Meridian Homecourt
51,303
Parks Maintenance Shop (1700 E Lanark)
15,264
Pool Building
8,505
Meridian Community Center
4,200
Tota 1 79,272
Allocation Factors for Parks & Recreation Buildings
Recreation Building Cost per Square Foot
$670
Residential Proportionate Share
100%
2022 Meridian Population
133,470
Residential (per person)
Base
Year 1
Year 2
Year3
Year4
Years
Year 6
Year7
Year8
Year9
Year10
Square Feet
0.59
Building Needs
Year
Population
Square Feet
2022
133,470
79,272
2023
139,249
82,704
2024
145,028
86,137
2025
151,006
89,687
2026
154,310
91,650
2027
157,614
93,612
2028
160,919
95,575
2029
164,223
97,537
2030
167,527
99,500
2031
169,715
100,799
2032
1 171,9031
102,099
Ten-Yrincrease 38,433 22,827
Growth Cost for Parks & Recreation Buildings => $15,294,000
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Revenue Credit Evaluation
Currently the City of Meridian does not have any outstanding debt related to parks and recreation facilities.
Therefore, a revenue credit for bond payments is not applicable. As shown in the cash flow analysis below,
projected impact fee revenue matches the growth cost of new facilities. Because impact fees fully fund expected
growth costs, there is no potential double -payment from other revenue sources.
Proposed and Current Impact Fees
At the top of Figure PR4 is a summary of the infrastructure needs for parks and recreation facilities due to growth.
In addition to the growth cost of parks and recreation facilities, impact fees include the cost of professional
services related to the CFP (authorized by the Idaho impact fee enabling legislation), less the projected park
impact fee fund balance at the end of the current fiscal year. The net growth cost of $66,826,219 divided by the
projected increase in population from 2022 to 2032, yields a cost of $1,738 per service unit.
To be consistent with 67-8204(16) of the Idaho Development Impact Fee Act, impact fees are derived using the
cost per service unit multiplied by the average number of service units per dwelling. Please see Appendix A for
supporting documentation on the average number of persons by dwelling size in Meridian.
Figure PR4: Parks and Recreation Impact Fee Schedule
2022 Input Variables
Growth
Infrastructure
Cost Factor
Growth Cost
Infrastructure Type
Quantity Over
Units
per Unit
(rounded)
Ten Years
Park Improvements
acres
87.0
$411,000
$35,757,000
Additional Park Sites (land)
acres
120.5
$150,000
$18,075,000
Parks &Recreation Buildings
sq ft
22,827
$670
$15,294,000
Total => $69,126,000
Professional Services Cost=> $7,680
Less Projected Fund Balance 9/30/2022 => ($2,307,461)
Net Growth Cost => $66,826,219
Population Increase 2022 to 2032 38,433
Cost per Service Unit $1,738
Residential Impact Fees (per dwelling)
Proposed
Proposed to
Square Feet of Climate-
Persons per
Parks &
Current
Increase
Current
Controlled Space
Housing Unit
Recreation
Fees
Ratio
Fee
1200 or less
1.12
$1,946
$781
$1,165
2.49
1201 to 1700
1.73
$3,006
$1,361
$1,645
2.21
1701 to 2500
2.37
$4,119
$1,770
$2,349
2.33
2501 to 3200
2.84
$4,935
$2,098
$2,837
2.35
3201 or more
3.19
$5,544
$2,447
1 $3,097
1 2.27
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Forecast of Revenues for Parks and Recreation
Figure PR5 indicates Meridian should receive almost $68 million in parks and recreation impact fee revenue over
the next ten years, if actual development matches the projections documented in Appendix A. To the extent the
rate of development either accelerates or slows down, there will be a corresponding change in the need for
infrastructure and impact fee revenue. The revenue projection assumes the average single-family dwelling has
2501 to 3200 square feet of climate -controlled space and the average multifamily unit has 1201 to 1700 square
feet of floor area.
Figure PR5: Projected Impact Fee Revenue
Ten -Year Growth Cost => $66,826,219
Parks & Recreation Impact Fee Revenue
Year
Base
2022
Year1
2023
Year2
2024
Year3
2025
Year4
2026
Years
2027
Year6
2028
Year7
2029
Year8
2030
Year9
2031
Year10
2032
Ten-Yr I ncrease
Projected Revenue =>
Single Family
$4,935
per housing unit
Multi family
$3,006
per housing unit
Hsg Units
Hsg Units
41,617
9,427
43,217
10,227
44,767
10,877
46,117
11,427
47,317
11,827
48,265
12,231
49,212
12,634
50,160
13,038
51,107
13,441
51,836
13,752
52,565
14,062
10,948 4,635
$54,030,000 $13,930,000
Total Revenue => $67,960,000
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Comprehensive Financial Plan for Parks and Recreation
As specified in 67-8203(29), development impact fees in Meridian exclude costs to provide better service to
existing development. Existing parks and recreation buildings are fully utilized and there is no surplus capacity for
future development. Expansion of buildings may include support facilities for administration and maintenance.
City staff recommends the improvements listed in Figure PR6 to accommodate additional development over the
next ten years.
Figure PR6: Summary of Ten -Year CFP for Parks and Recreation
Needed
Planned
I mproved Acres
87.0
93.2
Land for Parks (acres)
120.5
120.5
Recreation Building Sq Ft
22,827
22,800
FY
Description
Amount
Units
Cost
2023
Parks & Recreation Building Design
$1,500,000
2024
Parks & Recreation Building Construction
22,800
square feet
$13,776,000
2025
Graycliff Park Design
$185,000
2026
Graycliff Park Construction
11.5
acres
$4,541,500
2026
West Regional Park Design
$500,000
2027
West Regional Park Construction
47.2
acres
$18,899,200
1 1
2031
•. •- • •
. 111
2032
2023-32
Additional Park Sites
120.5
acres
$18,075,000
Total => $71,656,200
Growth Needs to Maintain Current LOS => $66,826,219
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Police Impact Fees
The City of Meridian will use an incremental expansion cost method to maintain existing infrastructure standards
for police buildings.
Proportionate Share
In Meridian, police and fire infrastructure standards, projected needs, and development fees are based on both
residential and nonresidential development. As shown in Figure P1, functional population was used to allocate
public safety infrastructure and costs to residential and nonresidential development. Functional population is like
the U.S. Census Bureau's "daytime population," by accounting for people living and working in a jurisdiction.
Functional population also considers commuting patterns and time spent at residential versus nonresidential
locations. Residents that don't work are assigned 20 hours per day to residential development and four hours per
day to nonresidential development (annualized averages). Residents that work in Meridian are assigned 14 hours
to residential development and 10 hours to nonresidential development. Residents that work outside Meridian
are assigned 14 hours to residential development. Inflow commuters are assigned 10 hours to nonresidential
development. Based on 2019 functional population data for Meridian, the cost allocation for residential
development is 72% while nonresidential development accounts for 28% of the demand for police and fire
infrastructure.
Figure P1: Functional Population
Functional Population Cost Allocation for Public Safety
Demand Units in 2019 Demand
Residential Hours/Day
Population* 114,161
61% Residents Not Working 69,079 20
39% Resident Workers** 45,082
23% Worked in City**
77% Worked Outside City**
Nonresidential
Non -working Residents
Jobs Located in City**
20% Residents Working in City**
80% Inflow Commuters
10,148 14
34,934 14
Residential Subtotal
Residential Share =>
69,079 4
49,856
10,148 10
39,708 10
Nonresidential Subtotal
Nonresidential Share =>
Person
Hours
1,381,580
142,072
489,076
2,012,728
72%
276,316
101,480
397,080
774,876
* 2019 U.S. Census Bureau population estimate. TOTAL 2,787,604
** 2019 Inflow/Outflow Analysis, OnTheMap web
application, U.S. Census Bureau data for all jobs.
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Excluded Costs
Police development fees in Meridian exclude costs to meet existing needs and stricter safety, efficiency,
environmental or regulatory standards. The City's CFP addresses the cost of these excluded items. Also excluded
from the police development fees are public safety vehicles and equipment that do not meet the minimum useful
life requirement in Idaho's Impact Fee Act.
Current Use and Available Capacity
In Meridian, police facilities are fully utilized and there is no surplus capacity for future development. Meridian
has determined that police building space will require expansion to accommodate future development.
Police Facilities, Service Units, and Standards
Police development fees in Meridian are based on the same level of service provided to existing development.
Figure P2 inventories police buildings in Meridian. Because the training center is also used by the Fire
Department, floor area was reduced to indicate the portion used by Meridian police.
For residential development, Meridian will use year-round population within the service areas to derive current
police infrastructure standards. For nonresidential development, Meridian will use inbound, average -weekday,
vehicle trips as the service unit. Figure P2 indicates the allocation of police building space to residential and
nonresidential development, along with FY23 service units in Meridian. Vehicle trips to nonresidential
development are based on floor area estimates for industrial, commercial, institutional, office and other services,
as documented in the Land Use Assumptions.
For police development fees, Meridian will use a cost factor of $660 per square foot (provided by City staff). The
cost factor includes design and construction management. Based on FY23 service units, the standard in Meridian
is 0.33 square feet of police building floor area per person in the service area. For nonresidential development,
Meridian's standard is 0.09 square feet of police building per inbound vehicle trip to nonresidential development,
on an average weekday.
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Figure P2: Meridian Police Buildings and Standards
Police Buildings Square Feet
Admin Building
33,000
Scenario Village
11,637
Police Pricinct - N
11,223
PSTC (half)
7,250
TOTAL 63,110
Source: City of Meridian Police Department.
Police Buildings Standards
Proportionate Share (based on
functional population)
Growth Indicator
Service Units in FY23
Square Feet per Service Unit
Residential Nonresidential
72%
28%
Population
Avg WkdyVeh Trips
to Nonres Dev
139,2491
195,281
0.331
0.09
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9/16/22 MERIDIAN DEVELOPMENT IMPACT FEES REPORT
Police Infrastructure Needs
Idaho's development fee enabling legislation requires jurisdictions to convert land use assumptions into service
units and the corresponding need for additional infrastructure over the next ten years. As shown in Figure P3,
projected population and inbound nonresidential vehicle trips drive the need for police buildings and vehicles.
Meridian will need 13,745 additional square feet of police buildings. The ten-year, growth -related capital cost of
police buildings is approximately $9.07 million.
Figure P3: Police Facilities Needed to Accommodate Growth
Police Infrastructure Standards and Capital Costs
Buildings
- Residential
0.33
Sq Ft per person
Buildings
- Nonresidential
0.09
Sq Ft pertrip
Police Buildings Cost
$660
per square foot
Infrastructure Needed
Veh Trips to
Police
Year
Population
Nonres in Meridian
Buildings (sq ft)
Base
2022
Year 1
2023
139,249
195,281
63,110
Year 2
2024
145,028
198,832
65,317
Year 3
2025
151,006
202,497
67,599
Year 4
2026
154,310
206,064
69,000
Year 5
2027
157,614
209,871
70,423
Year 6
2028
160,919
213,623
71,841
Year7
2029
164,223
217,451
73,265
Year8
2030
167,527
221,295
74,692
Year9
2031
169,715
225,340
75,772
Year10
2032
1 171,9031
229,4231
76,855
2023-2032 Increase
32,654
34,142
13,745
Growth Cost of Police Buildings =>
$9,072,000
Revenue Credit Evaluation
Currently the City of Meridian does not have any outstanding debt related to police facilities. Therefore, a
revenue credit for bond payments is not applicable. As shown in the cash flow analysis below, projected impact
fee revenue matches the growth cost of new facilities. Based on the City of Meridian's legislative policy decision
to fully fund expected growth costs from impact fees, there is no potential double -payment from other revenue
sources.
Police Development Fees
Infrastructure standards and cost factors for police are summarized in the upper portion of Figure P4. The
conversion of infrastructure needs and costs per service unit into a cost per development unit is also shown in the
table below. For residential development, average number of persons in a housing unit provides the necessary
conversion. Persons per housing unit, by size threshold are documented in the Land Use Assumptions.
DP Guthrie LLC 15
9/16/22 MERIDIAN DEVELOPMENT IMPACT FEES REPORT
For nonresidential development, trip generation rates by type of development are from the Institute of
Transportation Engineers (ITE 2022). To ensure the analysis is based on travel demand associated with
nonresidential development within Meridian, trip ends (entering and exiting) are converted to inbound trips using
a basic 50% adjustment factor.
In addition to the growth cost of police facilities, impact fees include the cost of professional services related to
the CFP (authorized by the Idaho Impact Fee Act).
Figure P4: Police Impact Fees per Development Unit
2022 Input Variables
Infrastructure
Growth Quantity
Cost Factor
Growth Cost
Infrastructure Type
Units
Over Ten Years
per Unit
(rounded)
Police Buildings
square feet
13,745
$660
$9,072,000
Professional Services Cost =>
Less Projected Fund Balance 9/30/2022 =>
Cost Allocation Net Growth Cost =>
Residential 72%
Nonresidential 28%
Allocated Cost by Land Use
Residential $6,537,370
Nonresidential $2,542,310
Growth 2022 to 2032 Cost perService
Unit
Residential (persons) 38,433 $170
Nonresidential
37,601 $67
(vehicle trips)
Residential Impact Fees (per housing unit)
$7,680
So
59, 079, 680
Proposed
Square Feet of Climate -Controlled
Persons per
Proposed Police
Current
Increase
to Current
Space
Housing Unit
Facilities Fees
Fees
Ratio
1200 or less
1.12
$190
$56
$134
3.39
1201 to 1700
1.73
$294
$98
$196
3.00
1701 to 2500
2.37
$402
$128
$274
3.14
2501 to 3200
2.84
$482
$152
$330
3.17
3201 or more
3.19
$542
$177
$365
3.06
Nonresidential Impact Fees (square foot of building)
Avg Wkdy Veh
Trip Adjustment
Proposed
TripEnds per
p
Factors
Police
Current
Proposed
Type
KSF
Facilities
Fees
Increase
to Current
Ratio
Fees
Commercial (Restaurant/Retail)
37.01
50%
$1.23
$0.24
$0.99
5.13
All Other
5.76
50%
$0.19
$0.05
$0.14
3.80
DP Guthrie LLC 16
9/16/22 MERIDIAN DEVELOPMENT IMPACT FEES REPORT
Projected Revenue for Police Facilities
Over the next ten years, police development fee revenue is projected to approximately match the growth cost of
police infrastructure, which has a ten-year total cost of approximately $9.08 million (see the upper portion of
Figure P5). The table below indicates Meridian should receive approximately $9.1 million in police development
fee revenue, if actual development matches the land use assumptions. To the extent the rate of development
either accelerates or slows down, there will be a corresponding change in the need for infrastructure and
development fee revenue. The revenue projection assumes the average single-family dwelling has 2501 to 3200
square feet of climate -controlled space and the average multifamily unit has 1201 to 1700 square feet of floor
area.
Police Impact Fee Revenue
Year
Base
2022
Year1
2023
Year2
2024
Year3
2025
Year4
2026
Year5
2027
Year6
2028
Year7
2029
Year8
2030
Year9
2031
Year10
2032
Ten-Yrincrease
Projected Revenue
=>
Figure P5: Police Development Fee Revenue
Ten -Year Growth Cost of Police Facilities => $9,079,680
Single Family
$482
per housing unit
Multi family
$294
per housing unit
Industrial
$190
per 1000 Scl Ft
Commercial
$1,230
per 1000 Scl Ft
Institutional
$190
per 1000 Scl Ft
Office & Other
Services
$190
per 1000 Scl Ft
Hsg Units
Hsg Units
KSF
KSF
KSF
KSF
41,617
9,427
11,740
6,570
5,270
7,360
43,217
10,227
11,950
6,690
5,360
7,490
44,767
10,877
12,170
6,810
5,460
7,630
46,117
11,427
12,380
6,940
5,560
7,760
47,317
11,827
12,610
7,060
5,660
7,900
48,265
12,231
12,840
7,190
5,760
8,050
49,212
12,634
13,070
7,320
5,860
8,190
50,160
13,038
13,300
7,450
5,970
8,340
51,107
13,441
13,540
7,580
6,080
8,490
51,836
13,752
13,790
7,720
6,190
8,640
52,565
14,062
14,030
7,860
6,300
8,800
10,948 4,635 2,290 1,290 1,030
$5,280,000 $1,360,000 $435,000 $1,587,000 $196,000
Total Projected Revenues (rounded) =>
1,440
$ 274,000
$9,132,000
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9/16/22 MERIDIAN DEVELOPMENT IMPACT FEES REPORT
Comprehensive Financial Plan for Police
City staff recommends the improvements listed in Figure P6 to accommodate additional development over the
next ten years. Impact fees will contribute approximately $9.1 million for Phase 3 of the Public Safety Training
Center. Other revenue sources will be required to fund the additional cost of police facilities over the next ten
years.
Figure P6: Summary of Ten -Year CFP for Police
Needed Planned
Building Sq Ft 13,745 17,000
FY
Description
Amount
Units
Cost
2023
2024
2025
Public Safety Training Center Phase 3
17,000
square feet
$11,220,000
2026
2027
2028
2029
2030
2031
2032
Total => $11,220,000
Growth Needs to Maintain Current LOS => $9,079,680
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9/16/22 MERIDIAN DEVELOPMENT IMPACT FEES REPORT
Fire Impact Fees
DP Guthrie LLC recommends functional population to allocate the cost of additional fire infrastructure to
residential and nonresidential development (see Figure P1 above and related text). Fire development fees in
Meridian are based on the same level of service currently provided to existing development.
Existing Standards for Fire Facilities
Figure F1 inventories Fire Department buildings in Meridian. Because the training center is also used by the Police
Department, floor area was reduced to indicate the portion used by Meridian Fire Department. Based on service
units in FY23, the standard for fire buildings is 0.52 square feet per person and 0.52 square feet per job.
Figure F1: Existing Fire Buildings
Fire Stations Square
Feet
Fire Admin Space (City Hall)
13,511
Fire Station # 1(540 E. Franklin Rd)
11,700
Fire Station # 6 (1435 W Overland Rd)
10,299
Fire Station # 7 (2385 Lake Hazel Rd)
10,299
Fire Station # 8 (4250 N Owyhee Storm Ave)
10,299
Fire Station # 5 (6001 N Linder Rd)
7,360
PSTC (half)
7,250
Fire Station # 4 (2515 S Eagle Rd)
7,077
Fire Station # 3 (3545 N Locust Grove)
7,040
Fire Station # 2 (2401 N Ten Mile Rd)
6,770
Training Tower @ Station #1
6,523
Fire Safety Center (1901 Leighfield Dr)
1,744
TOTAL 99,872
Allocation Factors for Fire Stations
Residential Share 72% Functional
Nonresidential Share 28% Population
Population in 2023 139,249
Jobs in 2023 53,547
Infrastructure Standards for Fire Stations
Square
Feet
Residential (per person) 0.52
Nonresidential (perjob) 0.52
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9/16/22 MERIDIAN DEVELOPMENT IMPACT FEES REPORT
Development fees will be used to expand the fleet of fire vehicles and purchase equipment with a useful life of at
least ten years. Figure F2 lists fire vehicles and equipment currently used by the Meridian Fire Department.
Following the same methodology used for fire buildings, the total cost of fire vehicles and equipment was
allocated 72%to residential and 28%to nonresidential development in Meridian. As shown below, every
additional resident will require Meridian to spend approximately $75 for additional fire vehicles and equipment.
Every additional job requires the City to spend approximately $74 for additional fire vehicles and equipment.
Figure F2: Existing Standards for Fire Vehicles
Fire Apparatus and Equipment Code Total Cost
Engines
FE
$6,178,923
Ladder Truck
LT
$4,400,000
Pickup Trucks
PT
$590,975
Other Vehicles
OV
$431,296
Communications & Equipment
CE
$2,244,978
TOTAL $13,846,172
Allocation Factors for Fire Apparatus and Communications
Residential Share 72% Functional
Nonresidential Share 28% population
Population in 2022 133,470
Jobs in 2022 52,602
Infrastructure Standards for Fire Apparatus and Communications
Apparatus and
Communications
Residential (per person) $74.69
Nonresidential (perjob) $73.70
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9/16/22 MERIDIAN DEVELOPMENT IMPACT FEES REPORT
Fire Infrastructure Needs
The City's Comprehensive Plan and website describe existing fire facilities. In Meridian, fire facilities are fully
utilized and there is no surplus capacity for future development. The City has determined that fire facilities will
require expansion to accommodate future development. As specified in 67-8203(29), development impact fees in
Meridian exclude costs to repair, upgrade, update, expand or replace existing capital improvements to provide
better service to existing development. To accommodate projected development, Meridian will expand fire
buildings by 21,741 square feet and spend approximately $3.63 million to purchase additional fire vehicles and
equipment.
Figure F3: Growth -Related Need for Fire Facilities
Fire Infrastructure Standards and Capital Costs
Fire Buildings
- Residential
0.52
Sq Ft per person
Fire Buildings
- Nonresidential
0.52
Sq Ft perjob
Fire Buildings Cost
$864
per square foot
Fire Apparatus/Communications -
Residential
$74.69
Cost per person
Fire Apparatus/Communications -
Nonres
$73.70
Cost perjob
Facilities Needed
Population
Meridian
Sq Ft of Fire
Fire Apparatus and
Year
Jobs
Stations
Communications
Base
2022
$13,846,172
Year 1
2023
139,249
53,547
99,872
$14,347,471
Year 2
2024
145,028
54,514
103,361
$14,850,391
Year3
2025
151,006
55,496
106,961
$15,369,281
Year4
2026
154,310
56,496
109,190
$15,689,784
Years
2027
157,614
57,514
111,428
$16,011,613
Year6
2028
160,919
58,552
113,676
$16,334,917
Year7
2029
164,223
59,607
115,933
$16,659,474
Year8
2030
167,527
60,680
118,200
$16,985,357
Year9
2031
169,715
61,774
119,901
$17,229,431
Year 10
2032 1
171,9031
62,8881
121,6131
$17,474,979
Increase
32,654
9,341
21,741
$3,628,807
Cost of Fire Stations =>
$18,784,000
Cost of Fire Apparatus and Communications =>
$3,629,000
Total
Growth Cost=>
$22,413,000
Revenue Credit Evaluation
Currently the City of Meridian does not have any outstanding debt related to fire facilities. Therefore, a revenue
credit for bond payments is not applicable. As shown in the cash flow analysis below, projected impact fee
revenue matches the growth cost of new facilities. Based on the City of Meridian's legislative policy decision to
fully fund expected growth costs from impact fees, there is no potential double -payment from other revenue
sources.
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9/16/22 MERIDIAN DEVELOPMENT IMPACT FEES REPORT
Current and Proposed Fire Impact Fees
Figure F4 indicates proposed impact fees for fire facilities in Meridian. Residential fees are derived from average
number of persons per housing unit and the cost per person. Nonresidential fees are based on average jobs per
1,000 square feet of floor area and the cost per job. The cost factors for fire facilities are summarized in the upper
portion of Figure F4. Persons per unit, by dwelling size, are based on local data, as discussed in the Land Use
Assumptions. For nonresidential development, average jobs per thousand square feet of floor area are also
documented in the Land Use Assumptions.
To be consistent with 67-8204(16) of the Idaho Development Impact Fee Act, impact fees are derived using the
cost per service unit multiplied by the average number of service units per development unit. Proposed
nonresidential development fees for fire facilities are shown in the column with light orange shading. The 2022
study recommends nonresidential fees by two general categories, Commercial and All Other types of
nonresidential development. Commercial includes all buildings within a shopping center, plus stand-alone retail
development and eating/drinking places (i.e., restaurants and bars). All Other includes industrial, warehousing,
offices, business services, and personal services (i.e., every type of non-residential development not considered
Commercial).
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9/16/22 MERIDIAN DEVELOPMENT IMPACT FEES REPORT
Figure F4: Fee Schedule for Fire Facilities
2022 Input Variables
Infrastructure
Growth Quantity
Cost
Growth Cost
Infrastructure Type
Factor
Units
Over Ten Years
(rounded)
per Unit
Fire Buildings
square feet
21,741
$864
$18,784,000
Fire Apparatus
dollars
1 $3,629,000
Tota I =>
Professional Services Cost=>
Less Projected Fund Balance 9/30/2022 =>
CostAllocation Net Growth Cost =>
Residential
72%
Nonresidential
28%
Allocated Cost by Land Use
Residential $16,142,890
Nonresidential $6,277,790
Growth 2022 to 2032 Cost perService
Unit
Residential (persons) 38,433 $420
Nonresidential (jobs) 10,286 $610
Residential Impact Fees (Der housina unit)
$22,413,000
$7,680
to
�iZZ,4Z0,680
Proposed
Square Feet of Climate -Controlled
Persons per
Proposed Fire
Current
Increase
to Current
Space
Housing Unit
Facilities Fee
Fees
Ratio
1200 or less
1.12
$470
$258
$212
1.82
1201 to 1700
1.73
$726
$450
$276
1.61
1701 to 2500
2.37
$995
$585
$410
1.70
2501 to 3200
2.84
$1,192
$693
$499
1.72
3201 or more
3.19
$1,339
$809
$530
1.66
Nonresidential Impact Fees (square foot of building)
Proposed
Jobs per1,000
Proposed Fire
Current
Type
Increase
to Current
Sq Ft
Facilities Fee
Fees
Ratio
Commercial (Restaurant/Retail)
2.12
$1.29
$0.64
$0.65
2.02
AIIOther
1 1.58
1 $0.961
$0.411
$0.55
2.34
DP Guthrie LLC 23
9/16/22 MERIDIAN DEVELOPMENT IMPACT FEES REPORT
Projected Revenue for Fire Facilities
Over the next ten years, fire development fee revenue is projected to approximately match the growth cost of fire
infrastructure, which is approximately $22.42 million (see the upper portion of Figure F5). The table below
indicates Meridian should receive approximately $22.65 million in fire development fee revenue, if actual
development matches the land use assumptions. To the extent the rate of development either accelerates or
slows down, there will be a corresponding change in the development fee revenue. The revenue projection
assumes the average single-family dwelling has 2501 to 3200 square feet of climate -controlled space and the
average multifamily unit has 1201 to 1700 square feet of floor area.
Fire Impact Fee Revenue
Year
Base
2022
Year1
2023
Year2
2024
Year3
2025
Year4
2026
Year5
2027
Year6
2028
Year7
2029
Year8
2030
Year9
2031
Year10
2032
Ten-Yrincrease
Projected Revenue =>
Figure F5: Fire Development Fee Revenue
Ten -Year Cost of Growth -Related Fire Facilities => $22,420,680
Single Family
$1,192
per housing unit
Multi family
$726
per housing unit
Industrial
$960
per 1000 Scl Ft
Commercial
$1,290
per 1000 Scl Ft
Institutional
$960
per 1000 Scl Ft
Office and
OtherServices
$960
per 1000 Scl Ft
Hsg Units
Hsg Units
KSF
KSF
KSF
KSF
41,617
9,427
11,740
6,570
5,270
7,360
43,217
10,227
11,950
6,690
5,360
7,490
44,767
10,877
12,170
6,810
5,460
7,630
46,117
11,427
12,380
6,940
5,560
7,760
47,317
11,827
12,610
7,060
5,660
7,900
48,265
12,231
12,840
7,190
5,760
8,050
49,212
12,634
13,070
7,320
5,860
8,190
50,160
13,038
13,300
7,450
5,970
8,340
51,107
13,441
13,540
7,580
6,080
8,490
51,836
13,752
13,790
7,720
6,190
8,640
52,565
14,062
14,030
7,860
6,300
8,800
10,948 4,635 2,290 1,290 1,030 1,440
$13,050,000 $3,370,000 $2,200,000 $1,660,000 $990,000 $1,380,000
Total Projected Revenues (rounded) => $22,650,000
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9/16/22 MERIDIAN DEVELOPMENT IMPACT FEES REPORT
Comprehensive Financial Plan for Fire Facilities
Using impact fee funding over the next ten years, Figure F6 indicates that Meridian plans to expand fire building
space by 21,741 square feet. Meridian will also purchase additional fire vehicles costing approximately $6.63
million. The total cost for planned projects is approximately $25.42 million. The growth needs funded by impact
fees is approximately $22.42 million over ten years. Other revenues will be required to fully fund the Fire
Department's CFP.
Figure F6: Summary of Ten -Year CFP for Fire Facilities
Needed Planned
Building Sq Ft 21,741 21,741
Apparatus and Equipmentl $3,629,000 1 $6,632,469
FY
Description
Amount
Units
Cost
2023
2024
Fire Station #1 Vehicle
$686,834
2025
Radios
16
$160,000
2025
Ladder Truck @Fire Station #6
1
$2,200,000
2026
Additional Cardiac Monitors
$140,000
2026
Additional Fire Station Design
$720,000
2027
Additional Fire Station Construction
12,000
square feet
$9,648,000
2027
Additional Fire Station Engine
$686,834
2027
Hydraulic Extrication Tool
2
$250,000
2027
Thermal Imaging Cameras
5
$70,400
2028
Ladder Truck @Fire Station #10
1
$2,200,000
2028
SCBAs for new apparatus
$140,000
2030
Additional Battalion Chief Vehicle
1
$98,401
2023 to
2032
Building Design
$720,000
2023 to
2032
Expand Fire Buildings
9,741
square feet
$7,696,100
Total => $25,416,569
Growth Needs to Maintain Current LOS => $22,420,680
DP Guthrie LLC 25
9/16/22 MERIDIAN DEVELOPMENT IMPACT FEES REPORT
Fee Implementation and Administration
Consistent with best practices and Idaho's enabling legislation, Meridian updates capital improvements and
development impact fees every five years. In addition, some jurisdictions make annual adjustments for inflation
using a price index like the Engineering News Record (ENR) Construction Cost Index published by McGraw-Hill
Companies. This index could be applied to the adopted impact fee schedule, reviewed by the Advisory
Committee, then approved by City Council. If cost estimates or demand indicators change significantly, the City
should redo the fee calculations.
Another best practice is to spend impact fees as soon as possible, tracking funds according to first in, first out
accounting, using aggregate rather than project -specific tracking. Impact fees and accrued interest are
maintained in a separate fund that is not comingled with other revenues. In Idaho, an annual report is
mandatory, indicating impact fee collections, expenditures, and fund balances by type of infrastructure.
Cost of CFP Preparation
As stated in Idaho's enabling legislation, a surcharge on the collection of development impact fees may be used to
fund the cost of preparing the CFP that is attributable to the impact fee determination. A minor cost of $7,680
per infrastructure type was added to the 2022 Meridian impact fee study.
Development Categories
Proposed impact fees for residential development are by square feet of climate -controlled space, excluding
porches, garage and unfinished space, such as basements and attics. For an apartment building, the average size
threshold is derived for an entire building. The recommended procedure is to identify the aggregate climate -
controlled floor area for the entire building, excluding ancillary space for community rooms, fitness centers,
management office and maintenance areas, divided by the number of dwelling units in the building. Apartment
complexes and some residential development provide common areas for use by residents, such as exercise rooms
and clubhouses. Common areas for the private use of residents are ancillary uses to the dwelling units and not
subject to additional impact fees.
Section 67-8204(20) of the Idaho Development Impact Fee Act states that an addition to an existing residential
building, that does not increase the number of service units, should be exempt from additional impact fees. Given
the relatively small fee increase across size thresholds and the high transaction cost to assess fees for additions to
residential buildings, DP Guthrie LLC recommends that additions to residential buildings should not be subject to
additional impact fees.
The two general nonresidential development categories in the proposed impact fee schedule can be used for all
new construction within Meridian. Nonresidential development categories represent general groups of land uses
that share similar average weekday vehicle trip generation rates and job density (i.e., jobs per 1,000 square feet of
floor area), as documented in Appendix A. "Commercial" includes retail development and eating/drinking places
(i.e., restaurants and bars). All land uses within a shopping center will pay the impact fee for commercial
development. All Other includes industrial, warehousing, offices, business services, and personal services (i.e.,
every type of non-residential development not considered Commercial).
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9/16/22 MERIDIAN DEVELOPMENT IMPACT FEES REPORT
An applicant may submit an independent study to document unique demand indicators (i.e., service units per
development unit). The independent study should be prepared by a professional engineer or certified planner
and use the same type of input variables as those in Meridian's impact fee study. For residential development,
impact fees are based on average persons per housing unit. For nonresidential development, impact fees are
based on inbound average weekday vehicle trips per 1,000 square feet of floor area, and the average number of
jobs per 1,000 square feet of floor area. The independent fee study will be reviewed by City staff and can be
accepted as the basis for a unique fee calculation. If staff determines the independent fee study is not
reasonable, the applicant may appeal the administrative decision to Meridian's elected officials for their
consideration.
Credits and Reimbursements
A general requirement that is common to impact fee methodologies is the evaluation of credits. A revenue credit
may be necessary to avoid potential double payment situations arising from one-time impact fees plus on -going
payment of other revenues that may also fund growth -related capital improvements. The determination of
revenue credits is dependent upon the impact fee methodology used in the cost analysis.
Policies and procedures related to site -specific credits should be addressed in the ordinance that establishes the
impact fees. Project -level improvements, required as part of the development approval process, are not eligible
for credits against impact fees. If a developer constructs a system improvement included in the fee calculations, it
will be necessary to either reimburse the developer or provide a credit against the fees. The latter option is more
difficult to administer because it creates unique fees for specific geographic areas. Based on national experience,
DP Guthrie LLC recommends a jurisdiction establish a reimbursement agreement with the developer that
constructs a system improvement. The reimbursement agreement should be limited to a payback period of no
more than ten years and the City should not pay interest on the outstanding balance. The developer must
provide documentation of the actual cost incurred for the system improvement. The City should only agree to
pay the lesser of the actual construction cost or the estimated cost used in the impact fee analysis. If the City
pays more than the cost used in the fee analysis, there will be insufficient fee revenue. Reimbursement
agreements should only obligate the City to reimburse developers annually according to actual fee collections
from the benefiting area.
The supporting documentation for each type of impact fee describes the types of infrastructure considered to be
system improvements. Site specific credits or developer reimbursements for one type of system improvement
does not negate an impact fee for other system improvements.
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9/16/22 MERIDIAN DEVELOPMENT IMPACT FEES REPORT
Appendix A: Land Use Assumptions
Appendix A contains the land use assumptions for Meridian's 2019 DIF update. The CFP must be developed in
coordination with the Advisory Committee and utilize land use assumptions most recently adopted by the
appropriate land planning agency [see Idaho Code 67-8206(2)]. Idaho's enabling legislation defines land use
assumptions as:
"a description of the service area and projections of land uses, densities, intensities, and population in the
service area over at least a 20-year period."
Service Areas
To ensure a substantial benefit to new development paying impact fees, the City of Meridian has evaluated
collection and expenditure zones for public facilities that may have distinct benefit or service areas. In the City of
Meridian, impact fees for parks/recreation, police and fire facilities will benefit new development throughout the
entire incorporated area. DP Guthrie LLC recommends one citywide service area for Meridian impact fees.
Idaho Code 67-8203(26) defines "service area" as:
"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."
The City's adopted Future Land Use Map indicates land uses, densities, and intensities of development, as
required by Idaho Code 67-8203(16). The service area is defined as all land within the city limits of Meridian, as
modified over time.
Summary of Growth Indicators
Population, housing unit, jobs and nonresidential floor area are the "service units" or demand indicators that will
be used to evaluate the need for growth -related infrastructure. The demographic data and development
projections discussed below will also be used to demonstrate proportionality. All land use assumptions are
consistent with Meridian's Comprehensive Plan. In contrast to the Comprehensive Plan, which is more general
and has a long-range horizon, development impact fees require more specific quantitative analysis and have a
short-range focus. Typically, impact fee studies look out five to ten years, with the expectation that fees will be
periodically updated (e.g., every 5 years). Infrastructure standards will be calibrated using fiscal year 2018-19
data. In Meridian, the fiscal year begins on October l't
Key development projections for the City of Meridian are housing units and nonresidential floor area, as shown in
Figure Al. These projections will be used to estimate development fee revenue and to indicate the anticipated
need for growth -related infrastructure. The goal is to have reasonable projections without being overly
concerned with precision. Because impact fee methods are designed to reduce sensitivity to development
projections in the determination of the proportionate -share fee amounts, if actual development is slower than
projected, fee revenue will decline, but so will the need for growth -related infrastructure. In contrast, if
development is faster than anticipated, the City will receive an increase in fee revenue, but will also need to
accelerate infrastructure improvements to keep pace with the actual rate of development.
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Population and housing unit projections were provided by City staff. During the next ten years, the impact fee
study assumes Meridian's population increases at a growth rate of approximately 2.56% per year. Over the next
ten years, jobs are expected to increase at a growth rate of approximately 1.8% per year, which is from the
Communities in Motion employment forecast from 2020 to 2050.
200,000
180,000
140,000
120,000
80,000
60,000
40,000
0
2020
Figure Al: Annual Development Projections
Meridian Land Use Assumptions
2025
Population Housing Units Jobs
2030 2035 2040
Nonresidential Square Feet (in thousands)
Proportionate Share
The term "proportionate" is found throughout Idaho's Development Impact Fee Act. For example, Idaho Code 67-
8202(2) states the intent to,
"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;"
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9/16/22 MERIDIAN DEVELOPMENT IMPACT FEES REPORT
Because DIFS must be proportionate, jurisdictions derive fees for various land uses per unit of development, as
stated in Idaho Code 67-8404(17).
"A development impact fee ordinance shall include a schedule of development impact fees for various land
uses per unit of development. The ordinance 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 development impact fees
according to the fee schedule as full and complete payment of the development project's proportionate
share of system improvement costs..."
Even though formulas and methods are not specified in Idaho's Development Impact Fee Act, DIFs must be
reasonable and fair, as stated in section 67-8201(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.
In the following sections, DP Guthrie LLC describes reasonable and fair formulas and methods that can be used in
the City of Meridian to make DIFs proportionate by size of residential development and type of nonresidential
development.
Residential Development and Persons per Housing Unit
The 2010 census did not obtain detailed information using a "long -form" questionnaire. Instead, the U.S. Census
Bureau has switched to a continuous monthly mailing of surveys, known as the American Community Survey
(ACS), which is limited by sample -size constraints. For example, data on detached housing units are now
combined with attached single units (commonly known as townhouses). Part of the rationale for imposing fees by
size threshold, as discussed further below, is to address this ACS data limitation. Because townhouses and
apartments generally have fewer bedrooms and less floor area than detached units, size thresholds make fees
more proportionate, while facilitating construction of affordable units. As shown Figure A2, dwellings with a
single unit per structure (detached and attached) average 2.84 persons per housing unit. Dwellings in structures
with two or more units average 2.19 year-round residents per unit. This category includes duplexes, which have
two dwellings on a single land parcel. According to the latest available data, the overall average is 2.75 year-
round residents per housing unit and 2.82 persons per household. According to the U.S. Census Bureau, a
household is a housing unit that is occupied by year-round residents. Development fees often use per capita
standards and persons per housing unit, or persons per household, to derive proportionate -share fee amounts.
DP Guthrie LLC recommends that fees for residential development in the City of Meridian be imposed according
to the number of year-round residents per housing unit.
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Figure A2: Year -Round Persons per Unit by Type of Housing
Meridian Population and Housina Characteristics
Units in Structure
Persons
House-
holds
Persons per
Household
Housing
Units
Persons per
Housing Unit
Housing
Mix
Vacancy
Rate
Single Unit *
95,564
32,685
2.92
33,703
2.84
86%
3%
All Other**
11,920
5,364
2.22
5,440
2.19
14%
1%
Subtotal 107,484 38,049 2.82 39,143 2.75 3%
Group Quarters 303
TOTAL 107,787
Source: U.S. Census Bureau, 2020 American Community Survey, 5-Year Estimates, Tables B25024,
B25032, B25033, and B26001.
* Single unit includes attached and detached.
** All other includes multifamily and mobile homes.
Demand Indicators by Dwelling Size
Impact fees must be proportionate to the demand for infrastructure. Because the average number of persons per
housing unit has a strong, positive correlation to the number of bedrooms, DP Guthrie LLC recommends
residential fee schedules that increase by dwelling size. Custom tabulations of demographic data by bedroom
range can be created from individual survey responses provided by the U.S. Census Bureau, in files known as
Public Use Micro -Data Samples (PUMS). PUMS files are only available for areas of at least 100,000 persons, with
the City of Meridian included in Public Use Micro -Data Area (PUMA) 701. As shown in Figure A3, DP Guthrie LLC
derived average persons per housing unit by bedroom range, from un-weighted PUMS data. The recommended
multipliers by bedroom range (shown below) are for all types of housing units, adjusted to the control total for
Meridian (i.e., 2.75 persons per housing unit).
Figure Al Persons by Bedroom Range
Recommended
Multipliers (2)
Bedrooms
0-1
2
3
4+
Tota I
Persons
(1)
Housing
Units (1)
Persons per
Housing Unit
Housing
Mix
53
43
1.33
3.0%
384
205
2.02
14.3%
1,580
684
2.49
1 47.7%
1,6421
5011
3.53
1 35.0%
3,6591
1,4331
2.75
1 100.0%
(1) American Community Survey, Public Use Microdata
Sample for ID PUMA 701 (2016-2020 5-year database).
(2) Recommended persons per housing unit are scaled to
make the average derived from PUMS survey data match
the control total for Meridian (i.e. 2.75 persons per housing
unit).
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DIFs based on size of dwelling are generally easier to administer when expressed in square feet of finished living
space for all types of housing. Basing fees on floor area rather than the number of bedrooms eliminates the need
for criteria to make administrative decisions on whether a room qualifies as a bedroom. To translate dwelling size
by number of bedrooms into square feet of living space, DP Guthrie LLC used the 2018 Ada County Assessor's
residential database to derive average square feet by bedroom range (i.e., two, three, and four or more
bedrooms).
DP Guthrie LLC recommends that DIFs for residential development be imposed based on finished square feet of
living space, excluding garages, patios and porches that are not climate -controlled. Average floor area and
number of persons by bedroom range are plotted in Figure A4, with a logarithmic trend line derived from actual
averages for Meridian. Using the trend line formula shown in the chart, DP Guthrie LLC derived the estimated
average number of persons, by dwelling size, in size thresholds like those currently used by the City of Boise. As
shown with yellow highlighting, the lowest floor area range (1200 square feet or less) has an estimated average of
1.24 persons per housing unit. At the upper end of the floor area range (3201 or more square feet of climate -
controlled space), the average is 3.53 persons per housing unit.
For a building with more than one residential unit, City staff will determine the average size threshold for the
entire building by dividing total climate -controlled floor area, less ancillary building space, by the total number of
dwellings in the building. Ancillary floor area includes community rooms, fitness centers, management offices,
and maintenance areas.
In each impact fee worksheet, the person per housing unit values shown in Figure A4 were adjusted downward by
multiplying the value for each size threshold by the ratio of 2.84 divided by 3.14. Figure A2 indicates an average
of 2.84 persons per single-family unit in Meridian and 3.14 is the fitted -curve value for dwellings with 2501 to
3200 square feet, which is the middle range for single-family units.
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Figure A4: Persons by Square Feet of Living Space
Survey of Construction
Square Feet (rounded)
Meridian Averages per Housing Unit
Fitted -Curve Values
Bedrooms
Sq Ft (rounded)
Persons
Sq Ft Range
Persons
1,100
0-1
1,000
1.33
1200 or less
1.24
1,800
2
1,500
2.02
1201 to 1700
1.91
2,200
3
2,100
2.49
1701 to 2500
2.62
3,400
4+
2,900
3.53
2501 to 3200
3.14
2,700 <=Wt Avg=> 2,400
3201 or more
3.53
Persons per Housing Unit in Meridian, ID
4.00 -
3.50 y = 1.98841n(x) - 12.493
+ 3.00
c
c 2.50
3
= 2.00
v
a
c 1.50
0
01
a 1.00
0.50
0.00
Average square feet for 2 to 4+
bedrooms in Meridian was derived
from Ada County Assessor
residential database (units
constructed 2014 to 2018).
Average persons per housing unit
by bedroom range is based on
2016-2020 ACS PUMS data for ID
PUMA 701. Recommended Square
Feet Ranges are similar to Boise
size thresholds.
0 500 1,000 1,500 2,000 2,500 3,000 3,500
Square Feet of Living Area
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Jobs and Nonresidential Development
In addition to data on residential development, the calculation of impact fees requires data on nonresidential
development. DP Guthrie LLC uses the term 'jobs" to refer to employment by place of work. In Figure A5, color
shading indicates nonresidential development prototypes used by DP Guthrie LLC to derive average weekday
vehicle trips and nonresidential floor area. For future industrial development, DP Guthrie LLC averaged Light
Industrial (ITE code 110) and Warehousing (ITE 150) to derive an average of 1,239 square feet per industrial job.
The prototype for future commercial development is an average -size Shopping Center (ITE code 820).
Commercial development (i.e., retail and eating/drinking places) is assumed to average 471 square feet per job.
For institutional development, such as schools, daycare and churches, the impact fee study assumes an average of
1,012 square feet per job. The prototype for institutional development is Assisted Living (ITE 254). For office and
other services, an average -size Office (ITE 710) is the prototype for future development, averaging of 307 square
feet per job.
Figure A5: Average Weekday Vehicle Trip Ends
ITE Land Use/ Demand Wkdy Trip Ends Wkdy Trip Ends Emp Per Sq Ft
Code Unit Per Dmd Unit* PerEmployee* I Dmd Unit PerEmp
110
Lightlndustrial
1,000SgFt
4.87
3.10
1.57
637
140
Manufacturing
1,000 Sq Ft
4.75
2.51
1.89
528
150
Warehousing
1,000 Sq Ft
1.71
5.05
0.34
2,953
254
Assisted Living
1,000 Sq Ft
4.19
4.24
0.99
1,012
610
Hospital
1,000 Sq Ft
10.77
3.77
2.86
350
620
Nursing Home
1,000 Sq Ft
6.75
3.31
2.04
490
710
General Office
1,000SgFt
10.84
3.33
3.26
307
760
Research & Dev Center
1,000 Sq Ft
11.08
3.37
3.29
304
770
Business Park
1,000 Sq Ft
12.44
4.04
3.08
325
820
1 Shopping Center
1,000 Sq Ft
37.01
17.42
2.12
471
857
Discount Club
1,000 Sq Ft
42.46
32.21
1.32
759
Industrial in Meridian 1 1,000 Sq Ft 1 3.29 1 4.08 0.81 1,239
* Trip Generation, Institute of Transportation Engineers,11th Edition (2022).
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Figure A6 indicates 2019 estimates of jobs and nonresidential floor area within Meridian. Job estimates, by type
of nonresidential, are from Meridian's Work Area Profile, available through the U.S. Census Bureau's online web
application known as OnTheMap. The number of jobs in Meridian is based on quarterly workforce reports
supplied by employers. Floor area estimates are derived from the number of jobs by type of nonresidential
development and average square feet per job ratios, as discussed on the previous page. Total floor area of
nonresidential development in Meridian is consistent with property tax parcel information obtained from Ada
County.
Figure A6: Jobs and Floor Area Estimates
Commercial (2)
Industrial (3)
Institutional (4)
Office & Other Services (5)
TOTAL 49,856
2019
Jobs (1)
13,237
26.6%
8,983
18.0%
4,934
9.9%
22,702
45.5%
100.0 %
(1) Jobs in 2015 from Work Area Profile,
OnTheMap, U.S. Census Bureau web
application.
(2) Major sectors are Retail and
Accommodation/Food Services.
(3) Major sectors are Construction,
Manufacturing, Wholesale Trade, and
Trans portation/Wareho using.
(4) Major sectors are Educational Services and
Public Administration.
(5) Major sectors are
Professional/Scientific/Technical Services and
Health Care.
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9/16/22 MERIDIAN DEVELOPMENT IMPACT FEES REPORT
Appendix B: Changes in Standards and Cost Factors
Figure 131 summarizes changes to infrastructure standards and cost factors from the 2019 impact fee study to the
2022 update. For most public facilities, infrastructure standards have increased slightly over time, with the
exception of park improvements. Since 2019, population has increased faster than acres of improved parks.
Major changes accounting for the proposed impact fee increase are higher cost factors and the recommendation
to acquire additional park sites using impact fees, based on the 2022 standard of 3.14 acres per thousand
residents. In the 2019 study, land for additional parks was only 1% of the growth cost and no standard was
documented. In the 2022 study, land for additional parks is 26% of the growth cost for parks & recreation.
Figure 1131: Comparison of Standards and Cost Factors
Public
Infrastructure Standard
Cost Factor
2022 to 2019
Facility
Cost Ratio
2019
2022
Measure
2019
2022
Units
acres perthousand$241,000
Park Improvements
2.91
2.66
$411,000
per acre
1.71
residents
acres perthousand$61,000
Park Land (new)
*
3.14
$150,000
per acre
2.46
residents
square feet
persquare foot of
Recreation Centers
0.49
0.59
$225
$670
2.98
per person
building
Police Buildings
square feet
0.26
0.33
Residential
per person
$333
$660
per square foot of
building
1.98
Police Buildings
square feet per
0.06
0.09
Nonresidential
vehicle trip
square feet
Fire Buildings - Residential
0.44
0.52
per person
$535
$864
per square foot of
buildin g
1.61
Fire Buildings -
square feet
0.46
0.52
Nonresidential
perjob
Fire Apparatus,
Communications &
$61.98
$74.69
per person
1.21
Equipment - Residential
Fire Apparatus,
Communications &
$64.46
$73.70
perjob
1.14
Equipment-
Nonresidential
* In the 2019 study, land foradditional parks was only 1% of the growth cost and no standard was documented.
In the 2022 study, land foradditional parks is 26%of the growth costfor parks& recreation.
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