AG 1999 06 21 - Laserfiche WebLink

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ten years may suffice. In most cases the jurisdic- tion must have a good idea that the money will be spent within the reasonable time period for a specific facility. This encourages capital im- provement programs to be prepared. 4. The electorate may think that impact fees will pay for all new capital facilities, therefore negating the need for higher tares. This expec- tation by the electorate could lead to long term negative political consequences. Even if impact fees are eligible to pay for all capital facilities, which is highly unlikely, they will not negate the need for higher taxes due to operating costs. IEducate the electorate on what impact fees do and do not accomplish. 5. Educate the electorate on what impact fees do and do not accomplish. Impact fees relate solely to capital facilities for new development. They do not pertain to rehabilitation, retrofitting, or replacement of existing capital facilities. Also, the greater cash cow of operating expenses must be explained to the electorate. Otherwise, their expectations will be artificially high. 6. The amount of impact fees must be politically acceptable. The amount that is politically acceptable will vary by state and jurisdiction. If an impact fee of $1,500 is the politically acceptable amount, while the maximum justifi- able is $8,000, it may not make sense to pursue some impact fees. This depends on how much revenue can be obtained by impact fees and/or other sources. 7. The community should be growing. A 3-5% growth rate may allow the community to raise a reasonable amount of revenues and also show the need for additional capital facilities due to growth. A very Iow growth rate will generate minimal revenues and new capital facilities may not be needed in the foreseeable future for most services. 8. Planning departments are probably the most appropriate center for managing impact fee activity. The calculation of impact fees is closely related to land use and rational nexus. Planning departments are the most appropriate center for managing activity. Impact fee calculations are not primarily an accounting or engineering exercise. Because rational nexus requires one to show a direct benefit of the impact fee to the capital facility or the particular service, land use issues are very important. Also, projections, usually provided by planning departments are very important. In jurisdictions where there is an active planning department, this department will probably be the most appropriate center for managing activity. This does not preclude other departments, such as finance and budget, from playing an integral part. Current levels of service must be met. 9. Current levels of service must be met unless there is a plan to address existing deficiencies. There is a tendency for communities and their consultants to assume the adopted level of service for the impact fee study. You can not extract a higher level of service and commen- surate fee solely from new development unless there is an existing plan to address deficiencies generated by the current population. I Do not rely solely on departmental assumptions. Y[ O. Do not rely solely on departmental assump- tions; instead, obtain your own background information. Because departments are not familiar with the requirements of impact fees, they are unlikely to clearly understand the difference between adopted and existing levels of service, service delivery areas and their relationship to existing and new capital facilities and several other issues. If the right questions are asked, they should be able to provide the