20161108 Impact Fee TC Public Hearing PresentationLand Use Assumptions, CIP and Impact
Fee Analysis
November 8, 2016
WATER, WASTEWATER & ROADWAY
IMPACT FEE UPDATE
Agenda
•Impact Fee Basics
•Land Use Assumptions
•Water and Wastewater Impact Fee Analysis
•Roadway Impact Fee Analysis
•Comparison with Other Cities
•CIAC Involvement and Recommendation
2
Impact Fee Basics
•Governed by Chapter 395 of the Texas Local Government
Code
•Previous Impact Fee Study Completed in 2011
•Why Impact Fees?
–Allows cities to recoup costs associated with infrastructure
necessitated to serve future development
–Alleviates burden of new facilities on existing customers
(lower increase in water and wastewater rates)
–Makes “growth pay for growth”
3
What is Eligible for Impact
Fees?
•Recently constructed improvements with excess capacity
to accommodate growth
•Proposed projects that will accommodate growth within
the next 10 years
–Construction Cost, ROW Acquisition, Engineering and Surveying
Fees, etc.
•Financing Costs
•Cost of Impact Fee Study
–Split between Water, Wastewater, and Roadway Impact Fees
4
Update Land Use Assumptions
Update Capital Improvements Plans
Conduct Impact Fee Calculations/
Prepare ReportCIAC CoordinationPublic Hearing and Council
Approval
Update Impact Fee Ordinance
Impact Fee ProcessImpact Fee Process
5
Population by Planning Area
6
Year Total
Population
Average Annual
Population
Growth
Average
Annual
Growth Rate
2016 17,800 --
2021 27,888 2,017 9%
2026 40,976 2,618 8%
Developed Non-Residential
Acreage by Planning Area
7
Year
Total
Developed
Acres
Average Annual
Growth in Acres
2016 661 -
2021 1,167 101
2026 1,744 115
Water Demand Projections
8
•Includes residential and non-residential growth
•Established per capita usage rate per person and non-
residential acre based on a review of historical data
Year Population
Average
Day
Demand
(MGD)
Maximum
Day
Demand
(MGD)
Peak
Hour
Demand
(MGD)
2016 17,800 3.61 10.34 20.18
2021 27,888 5.76 16.39 31.91
2026 40,976 8.48 24.13 46.95
Wastewater Flow Projections
9
•Includes residential and non-residential growth
•Established per capita usage rate per person and non-
residential acre based on a review of historical data and
flow monitoring conducted as part of this study
Year
Wastewater
Service
Population
Average
Day Flow
(MGD)
Peak Wet
Weather
Flow
(MGD)
2016 15,485 1.74 6.94
2021 25,517 2.89 11.55
2026 38,514 4.35 17.41
Water Impact Fee Capital
Improvements Plan
10
Wastewater Impact Fee
Capital Improvements Plan
11
•IFCIP Projects:
–Complete Projects
–Projects under construction with excess capacity
–Projects to meet growth needs
•Calculate cost of impact fee CIP
•Land use assumptions to determine growth in new service units
•Maximum allowable impact fee calculated by dividing eligible
CIP/growth in service units
•Credit of 50% for the portion of ad-valorem taxes generated by CIP
improvements
•Fee collected can be less than maximum; by service area
Conduct Impact Fee Analysis
12
Projected Service Units
13
2016 Existing
Service Units
2026
Proposed
Service Units
2016 –2026
Projected
Growth in
Service Units
Water 5,444 14,623 9,178
Wastewater 4,509 13,639 9,130
Water and Wastewater
Impact Fee Calculations
14
Water Wastewater
10-Year Capital Improvement Costs $52,625,355 $38,688,633
Financing Costs $17,504,846 $12,862,402
Total Eligible Costs $70,130,201 $51,531,035
10-year Projected Growth in Service Units 9,178 9,130
Maximum Impact Fee per Service Unit
without Credit $7,641 $5,644
Impact Fee Credit per Service Unit $3,821 $2,822
Maximum Allowable Impact Fee per
Service Unit with Credit $3,821 $2,822
Current Impact Fee $3,900 $683
•Current Impact Fee = $4,583
•Maximum Allowable Impact Fee = $6,643
Changes Since Previous
Impact Fee Study
•Increase in 10-year projected service units
–Population growth of 23,176 (2016 Update) vs. 18,135 (2011 Update)
–Non-residential acreage growth of 1,083 (2016 Update) vs. 816 (2011
Update)
•Wastewater
–Incorporated capital costs paid by the Town to construct and expand
UTRWD Doe Branch WWTP
•Water
–Similar maximum allowable rate
–No major CIP changes
15
Projected Service Units
Service
Area
Residential
Growth
(veh-mi)
Basic Emp.
Growth
(veh-mi)
Service Emp.
Growth
(veh-mi)
Retail Emp.
Growth
(veh-mi)
Total
Growth
(veh-mi)
1 28,770 1,458 5,967 14,032 50,227
2 15,438 0 13,162 22,012 50,613
Total 44,208 1,458 19,129 36,045 100,840
16
•Roadway: 10-year VMT
•Land Use Assumptions
Projected Ten-Year Growth
Roadway Impact Fee CIP
Roadway Impact Fee
Calculations
18
Service Area 1
(West of RR)
Service Area 2
(East of RR)
10-Year Capital Improvement Costs
Attributable to New Development $96,505,861 $74,772,644
Financing Costs $30,253,316 $22,086,856
Total Eligible Costs $125,759,177 $96,859,500
Total Veh-Mi of New Demand over 10-years 50,227 50,613
Maximum Impact Fee per Service Unit
without Credit $2,522 $1,912
Maximum Allowable Impact Fee per
Service Unit with Credit (50%)$1,261 $956
Maximum Allowable Impact Fee for Single
Family Dwelling Unit (50%)$7,566 $5,736
Current Impact Fee for Single Family
Dwelling Unit (SA 1: 36%; SA 2: 50%)$3,727 $3,727
Changes Since Previous
Impact Fee Study
•Increase in 10-year projected service units
–Vehicle-mile growth of 100,840 (2016 Update) vs. 78,753 (2011)
•Roadway
–Annexations in both Service Areas
–Modifications of roadway alignments for revised Thoroughfare Plan
–Inclusion of actual costs for completed projects
19
Restaurant w/Drive-thru
$140,707
$131,643
$67,178
$56,438
$30,280
$20,900 $19,624
$15,409
$11,891
$140,707
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
Prosper
(Current)
Frisco Flower
Mound
Colleyville Coppell Allen Fairview McKinney Southlake Highland
Park *
Plano *
Roadway, Water, and Wastewater Impact Fees
*Does not charge impact fees.
20
Medical Office Building
$404,697
$274,052
$175,997 $173,469
$120,379
$97,742
$75,035 $69,690
$45,592
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
Frisco Prosper
(Current)
Flower
Mound
Fairview Colleyville Coppell Southlake Allen McKinney Highland
Park *
Plano *
Roadway, Water, and Wastewater Impact Fees
*Does not charge impact fees.
21
Big Box Grocery Store
$1,622,788
$1,247,389
$759,478
$582,997
$246,630 $242,802 $229,200
$129,391 $112,032
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
Frisco Prosper
(Current)
Flower
Mound
Colleyville Fairview Southlake Allen McKinney Coppell Highland
Park *
Plano *
Roadway, Water, and Wastewater Impact Fees
*Does not charge impact fees.
22
Roadway Fee
1 Single-Family Residence
23
$5,736
$4,941
$3,800 $3,727 $3,679
$1,950 $1,899
$1,720
$650 $636
$-$-
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
Prosper
(2016 Max)
Colleyville McKinney Prosper
(Current)
Frisco Fairview Flower
Mound
Southlake Allen Coppell Highland
Park*
Plano*
Roadway Fee
Restaurant w/Drive-thru
24
$171,946
$110,170 $109,672
$29,217 $28,872
$22,783
$7,774 $6,900 $6,481 $4,941
$-$-
$-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
$200,000
Prosper
(2016 Max)
Frisco Prosper
(Current)
Flower
Mound
McKinney Coppell Fairview Allen Southlake Colleyville Highland
Park*
Plano*
Roadway Fee
Medical Office Building
25
$571,743
$376,040
$219,525
$156,906
$135,447
$93,729 $89,249 $78,880
$23,745 $25,423
$-$-
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
Prosper
(2016 Max)
Frisco Prosper
(Current)
Fairview McKinney Flower
Mound
Colleyville Coppell Allen Southlake Highland
Park*
Plano*
Big Box Grocery Store
26
$2,462,006
$1,580,700
$1,089,148.73
$1,041,794.44 $1,048,542
$537,636
$447,018
$359,019
$224,664
$223,080
$198,000
$96,426
$-$-
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
Prosper
(2016 Max)
Frisco Prosper
(+15%)
Prosper
(+10%)
Prosper
(Current)
Colleyville Flower
Mound
McKinney Southlake Fairview Allen Coppell Highland
Park*
Plano*
Restaurant w/Drive-thru Permit
Fees
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
Restaurant w/Drive thru
Prosper Allen Colleyville Coppell Fairview Flower Mound
Frisco HP McKinney Plano Southlake Avg
$1,000,000 Building Value
27
Medical Office Building Permit
Fees
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
Medical Office Building
Prosper Allen Colleyville Coppell Fairview Flower Mound
Frisco HP McKinney Plano Southlake Avg
$3,700,000 Building Value
28
Big Box Grocery Store Permit Fees
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
Grocery Store
Prosper Allen Colleyville Coppell Fairview Flower Mound
Frisco HP McKinney Plano Southlake Avg
$7,500,000 Building Value
29
CIAC Involvement
•Advisory Committee Members
–Planning & Zoning Commission
–ETJ Resident
•Met with Consultants and Town Staff on March 1st,
September 20th, and October 4th to discuss Land Use
Assumptions, Capital Improvement Plans and Impact Fee
Calculations
30
CIAC Recommendation
•October 4th, by a unanimous vote, the CIAC made the
following actions:
–Accepted the land use assumptions, capital improvements plan,
and impact fee calculations as outlined in the draft impact fee
study
–Recommended the Town Council set the water, wastewater, and
roadway impact fees at the maximum allowable fee per the
impact fee study
31
Roadway, Water, and Wastewater
Impact Fee Study Update