[REcon S E R V I C E S]
Impact Fees/Nexus Studies
Impact Fees, which we typically associated with Real Estate Development have been are being assesses across the United States with some jurisdictions initiating such programs two decades ago, while others are still in the process of implementing these offsetting sources of revenue. The need for structured impact fees arose from the 1970’s and 1980’s as a combination of factors including inflation, higher interest rates, stagnating income, and increases in property taxes created an environment of general revolt against high property taxes across the nation. This culmination created local budgetary constraints for many local governments as property tax limitations were enacted forcing the need for other means of finance-specially ones associated with service requirements for new developments. Across the nation, wide arrays of “innovative” methods were created by developers and local government to address these shortfalls, some of which required new limiting legislation.
The implementation of impact fees by local jurisdiction including municipalities, counties, and special district, is governed by the state legislature. This is done to ensure that new developments provide for needed public facilities (i.e. public protection, transportation, and parks & recreation) without placing an undue burden on the existing tax paying base. A core concern is also to ensure that developers are not burdened into providing in elevating the Cities overall Level of Service (LOS) making one of the most crucial parts of Impact Fee Nexus Studies the determination of Level of Service (LOS) standard for applicable facilities.
As it can be imagined, the legal framework required in establishing Development Impact Fees requires a series of concurrent and consecutive efforts to ensure legally defensible local ordinances in imposing and collecting Development Impact Fees.
Each state has its own legislative standards for the establishment of Development Impact Fees; however, many share the notion of new development paying for its share of added services. The process involved in evaluating and establishing Development Impact Fees in the State of Georgia is examined.
- Water supply production, treatment, and distribution facilities;
- Waste-water collection, treatment, and disposal facilities;
- Roads, streets, and bridges, including rights of way, traffic signals, landscaping, and any local components of state or federal highways;
- Storm-water collection, retention, detention, treatment, and disposal facilities, flood control facilities, and bank and shore protection and enhancement improvements;
- Parks, open space, and recreation areas and related facilities;
- Public safety facilities, including police, fire, emergency medical, and rescue facilities; and Libraries and related facilities.
- Facility Control – Which agency owns/operates the facility?
- Facility Capacity – What is the current level of service provided by the facility?
- Capital Improvements – Will service needs be met by existing excess capacity or through expansion of capital facilities?
- Service Area – Who will be served by what facility?
- Recommendations (Written & Exhibit)
- Impact Fees Legislation
- Impact Fee Definition & Eligibility
- Capital Improvement Element Discussion
- Population and Employment Projections
- Population & Households
- Employment & Daytime Population
- Combined Population
- Area of Service
- Assessment of Impact Fees
- Public Protection
- Public Works
- Parks & Recreation
- Public Protection
- Level of Service
- Service Area Boundaries
- Inter-governmental Cooperation
- Affordable Housing
- Economic Development
All States have varying forms of procedures associate with the assessment of Development Impact Fees. If your City, Town, County, or Special District located anywhere in the United Sates or Canada is interested in exploring Development Fee Option, Affiliated Research Economic is here to assist. Please feel free to contact us.