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CITY OF MADISON: IMPACT FEE STUDY REPORT

CITY COUNCIL WORK SESSION JANUARY 22, 2020


WHAT ARE IMPACT FEES, AND WHY ARE WE
CONSIDERING THEM?
▪ One-time service fees paid during development of residential and commercial
property
▪ Can only be used to fund capital improvements for growth-related infrastructure. No use
for operations, maintenance, replacement, existing deficiencies, etc.

▪ Must relate back to City’s police powers to take care of health, safety, and welfare
▪ Police, Fire, Roads, Parks and Recreation, Library
▪ Not school infrastructure unless legislation

▪ Residential and commercial growth demands increased city services and facilities,
and we want that development to help to pay for itself.
▪ Builders or developers pay when they request building permits.
▪ Costs may be passed along to buyers of newly constructed homes or businesses.
WHERE ARE WE IN THE PROCESS?
▪ Master Plans: West Side Master Plans, 2040 Transportation Master Plan, Parks &
Recreation, Growth Impact Committee, etc.
▪ Residential development outpacing City’s ability to keep up with service demand.

▪ Research, planning, introduction to City Council.


▪ Impact fee study.
▪ Next:
▪ Finalize draft ordinance.
▪ Public and stakeholder input.
▪ Public Hearing (2/24) & Council consideration (3/9)
HOW THE IMPACT FEE STUDY WORKS
▪ 1. Asked City leaders and department heads what types of facilities and equipment
they need to keep up with growth
▪ Examples: Fire Station No. 4, Police cars, Huntsville-Brownsferry Road Widening

▪ 2. Evaluated expected population growth & demand


▪ Additional 10,384 people in next decade

▪ 3. Evaluated current levels of service


▪ What is the cost of infrastructure or equipment per person or job?
▪ City cannot charge future development for a higher level of service than existing
development receives.

▪ 4. Determined costs of infrastructure “units” based on recent costs or national


averages.
▪ Park acres, fire trucks, road construction, etc.

▪ 5. Plugged into formulas to determine how much cost to allocate to each new
house or building.
IMPACT-FEE-FUNDED CAPITAL IMPROVEMENT PLAN
IMPACT FEE SUMMARY & TOTALS
STREETS
PARKS & RECREATION
FIRE DEPARTMENT
PUBLIC LIBRARY
POLICE DEPARTMENT
PUBLIC WORKS
SCHOOLS
▪ City is funding half of the cost of the schools’ study.

▪ Consultants are reviewing data from BOE.

▪ BOE/City must approach legislature for permission.

▪ Staff and Administration recommend proceeding without final


results on schools, while continuing to work with the schools
on the correct impact fee amount.

▪ Other City impact fees will support school system and quality of
life for children and families.
▪ Better streets to travel to school
▪ Police and Fire services to provide school safety
▪ Public library
▪ Parks and recreation facilities

▪ Amount of school impact fees could significantly increase


current impact fee estimates.
IMPACT FEE SUMMARY & TOTALS
COMPARISON TO OTHER CITIES
ORDINANCE OUTLINE & PROCEDURES
▪ Fee schedule:
▪ Use impact fee study data.
▪ Decide which categories of impact fees you want to charge.

▪ Procedures:
▪ Building permit (50/50 permit and c.o.?)
▪ Refunds and appeals

▪ Accounting
▪ Separate interest-bearing accounts for each fee category

▪ Credits
▪ Reimbursement agreements for infrastructure construction

▪ Advisory committee and review every 5-10 years


PATH FORWARD
▪ Posting documents on website
▪ Public input, stakeholder meetings
▪ Ordinance drafting
▪ Public hearing—February 24
▪ Council vote—March 9