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MEMORANDUMFROM

OFFICEOFTHECOUNTYMANAGER

DATE: January 26, 2015

TO: BoCC FROM: Roger J. Desjarlais

County Manager

RE: Impact Fee Collection Rates and New Fee Schedules February 3, 2015

Commissioners:

Attached is the February 3rdagenda item to allow for the following:

1. Make no decision regarding the impact fees and allow current ordinance tosunset allowing impact fees to go to the 100% level effective March 16th.

2. Set a new collection rate different from the 100% level to become effective March

16th.

3. Consider accepting the newly recommended impact fee schedules, based upon

the most recent localized data, and begin a 90-day notice period.

A. No Decision

No decision allows the current ordinance to sunset and the impact fee collection rate to

return to the 100% level.

B. Set New Collection Rate

The Board has the option to set the collection rate at any level below the current impactfee maximum fee schedule.

For roads, staff is recommending a collection rate of at least 85%. Thisrecommendation was arrived at as follows:

The 5-year Capital Improvement Plan (CIP) is projected for each revenue source

impact fees, gas taxes, and surplus tolls.

For impact fees, revenues were projected at a 100% collection rate of current volume ofactivity after March 13. These projections were then applied against eligible projects(expenses), by impact fee district of which there are five.

To analyze what collection rate could be applied at less than 100% before reservesbecome $0 in any given year, staff identified the district most sensitive to rate changesearly on in the five-year CIP (meaning it has the lowest reserves).

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That road impact fee district is the Central District (#23) that has projected reserves of$951,581 at Sep. 30, 2016. Staff then ran models that reduced the collection rate by5% increments until the reserves at Sep. 30, 2016 are near $0. That collection rate is85% and generates reserves in that district of $61,050.

Again, it is important to note that these projections are at the 12-month average ofcurrent volume of activity, with a 2% annual escalator. Also no assumptions have been

made about other revenues that could be used to bridge a temporary, short-term needfor additional funds.

C. Accept New Fee Schedule

The consultant has provided the final analysis of impact fee rate setting. The studyrecommends the fees be adjusted as follows:

1. Road impact fees, single family home, decrease from $6,701 to $6,458 (3.6%),and decline in all other categories except for a warehouse category.

2. School impact fees, single family home, increase from $3,924 to $4,540 (15.7%),

and increase in the other two categories multi-family and mobile-home park.

At a 100% collection rate, on a single-family home there is a net increase of $373 forroads and schools impact fees using the new fee schedules. Adding parks, fire, andEMS impact fees result in a new total fee of $12,985 compared to the prior fee of$12,612, a 3% increase. At an 85% collection rate, on a single-family home there is anet decrease of $1,496 (including parks, fire, and EMS), generating a new total fee of$11,116, an 11.9% decrease.

CURRENT FEE SCHEDULE NEW FEE SCHEDULESingle Family Single Family

Recipient: 100% 20% Recipient: 100% 85%Roads $6,701 $1,340 Roads $6,458 $5,489Schools 3,924 785 Schools 4,540 3,859Community Parks 780 156 Community Parks 780 663Regional Parks 683 137 Regional Parks 683 581Fire* 474 474 Fire* 474 474EMS* 50 50 EMS* 50 50

TOTAL $12,612 $2,942 TOTAL $12,985 $11,116

*Fire and EMS were not part of the reduced collection rates

Since the new schools maximum rate increases, notification requirements dictate a 90-day notice period. The Board may decide to accept the new fee schedules and anylevel of collection rate at the March 3rdpublic hearing. However, the new fee schedulefor schools would not go into effect until June 1st.

Thank you.

Cc: County Attorney