Revising a Development Impact Fee Program in South Carolina. Stantec. City Explained, Inc. J.R. Wilbur and Associates, Inc.

Transcription

1 Revising a Development Impact Fee Program in South Carolina Stantec In association with City Explained, Inc. J.R. Wilbur and Associates, Inc. Planning Commission Presentation January 18, 2017

2 Background Information Tools & Solutions Required Documents Some Things to Consider

3 Background Information

4 General Context for Our Work Town implements first municipal impact fee system (Chapter 154). State enacts the SC Development Impact Fee Act, setting specific circumstances & procedures for maintaining a development impact fee system. Continued growth in the community increases the needs for expensive capital investments to meet future needs

5 General Context for Our Work Town Council directed staff to update its current impact fee system, and determine if fees charged are adequate to provide new infrastructure that keeps pace with future growth and development.

6 What are Development Impact Fees? Impact fees represent financial payments made from a developer to the Town for funding a proportionate share of certain off-site capital improvements needed to maintain current service delivery standards or levels of service. The legality for updating the development impact fee system is expressed in the South Carolina Development Impact Fee Act.

7 Why Study Impact Fees Now? Rapid growth & development Significant land remains available for development Federal and state funding unable to meet needs Annual construction costs continue to increase Local resistance to increased property taxes Local expectation that growth shares in the cost of growth

8 Tools & Solutions

9 General Background Impact fees may be used for - design & engineering - ROW acquisition - construction - purchase - utility relocation - project financing Impact fees may not be use for - maintenance - administrative costs - operating costs - existing deficiencies

10 General Background All revenues are maintained in an interest bearing account Monies must be spent within 3 years of scheduled date for construction in the CIP Annual monitoring report Comprehensive review and update every 5 years Some new projects & all maximum allowable fee changes require an updated study

11 Formal Study Process Prepare Impact Fee Justification Report Prepare Capital Improvements Plan Prepare Housing Affordability Study Adopt Impact Fee Ordinance

12 Typical Planning Process Feasibility Study Initial Study & Appropriateness Town Council Resolution Presentation to PC / TC Prepare Supporting Documents Impact Fee Study Report Capital Improvements Plan Housing Affordability Analysis Develop Model Ordinance Public Comment Period Public Hearings Adoption Process

13 Who Else is Collecting Impact Fees Under the South Carolina Development Impact Fee Act? York County Rock Hill Fort Mill Myrtle Beach Dorchester County Summerville Mount Pleasant Charleston Beaufort City / County Hilton Head

14 Required Documents

15 Development Impact Fee Study Report What is it? A report that documents existing conditions, anticipates future year needs (2035) and their implementation costs, and recommends maximum allowable impact fees by category. Recommended Impact Fee Categories: Recreation Fire Protection Municipal Facilities & Equipment Transportation

16 Development Impact Fee Study Report Berkley County Francis Marion National Forest Dewees Island Isle of Palms Sullivan s Island

17 Development Impact Fee Study Report Consumption-Driven Approach Incremental cost per service unit Assumes constant current service delivery standards for calculating maximum allowable impact fees Improvements-Driven Approach Cost of increasing capacity at established LOS is divided among new service units It does not charge new development for using existing capacity, nor does it account for excess capacity remaining in the system at the horizon year Identifies existing & future year deficiencies, but only future year improvements are considered in impact fee calculations Methods for Determining Impact Fees

18 Development Impact Fee Study Report What is it? A discount rate may be applied to the maximum allowable impact fees to provide a reasonable fee for continued residential or non-residential investment and to ensure that impact fees collected do not exceed the cost of providing capital facilities that support new development. Becomes a policy decision for Town Council Discount Rate Discussion

19 What is it? Capital Improvements Plan The CIP is a blueprint for future capital expenditures funded over a fixed period of time to meet anticipated demand. What is included? Capital improvement project description Start & completion dates Revenue & expenditure summaries Funding sources & schedule

20 Affordable Housing Analysis What is it? A report that estimates the effect of imposing updated development impact fees on affordable housing in Mount Pleasant.

21 Model Development Impact Fee Ordinance What is it? A development impact fee ordinance enacts the rules and requirements formally adopted by Town Council for updating the development impact fee system. Highlights: Supporting Documentation Jurisdiction (Service Zones) Application & Exemptions Determination of Fees Credits & Reimbursements Appeal Process Refunds

22 Some Things to Consider

23 Timing is Everything Economic Conditions Political Support & Understanding Data Availability Potential Revisions to the Study Budget Planning Process

24 Partnering Strategy An open & honest approach to the impact fee study will carry the day through implementation. Increase the number of finger prints on the study: - staff coordination meetings - policy-maker briefings - community workshops

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