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					                                                                   Town of Goffstown
                                                                                     TOWN OFFICES
                                                                  16 MAIN STREET  GOFFSTOWN, NH 03045




                                           Impact Fees for
                                  Recreational Facilities


                                  Goffstown Planning Board
                                                   February 13, 2003




PLANNING AND ECONOMIC DEVELOPMENT                                                              (603) 497-8991
                                                                                          FAX (603) 497-8993
                                                                                  sgriffin@ci.goffstown.nh.us
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                                                                   Town of Goffstown
                                                                                     TOWN OFFICES
                                                                  16 MAIN STREET  GOFFSTOWN, NH 03045




     IMPACT FEES FOR RECREATIONAL FACILITIES

A. Purpose of Report
The Town of Goffstown prepared this report. The Town’s objective was to prepare a
methodology to calculate a proportionate impact fee for recreational facilities to be assessed to
new residential development.

B. Authorization for Impact Fees
New Hampshire RSA 674:21, I (m) lists impact fees as one of the innovative land use controls
available to New Hampshire municipalities. Public recreational facilities, not including open
space, are among the facilities eligible for impact fee assessment. Under this statute, impact fees
may be used to recoup a proportionate share of the costs of capital improvements made in
anticipation of the needs created by new development. Impact fee revenues may, therefore, be
used for new construction of public recreational facilities in the future, or for making payments
toward existing debt service, if existing, for public recreational facilities that have already been
created to absorb the demands of new development.

Impact fees may be expended only for the purposes for which they are originally collected. In
the case of public recreational facilities, costs related to providing adequate capacity to serve
new development could include planning, design, property purchase and the construction and
improvement of public recreational facilities facilities. Impact fees cannot be allocated toward
maintenance and improvement projects that do not contribute to facility capacity. Impact fees
may be used to offset renovation costs, but only where these renovations contributed to an
increase in recreational capacity.

RSA 674:21,V (a) requires that impact fees represent a proportionate share of the capital
improvement costs that are reasonably attributable to the demands of new development and to
the benefits accruing to the development from the capital improvements financed by the fee. The
“upgrading” of existing facilities (for example, the cost of improving the quality or level of
service) is not reimbursable by impact fee assessments. The municipality may only charge
impact fees for the growth related portion of capital facility costs, as reflected by the demands
on facility capacity that are reasonably attributable to new residential development.


PLANNING AND ECONOMIC DEVELOPMENT                                                              (603) 497-8991
                                                                                          FAX (603) 497-8993
                                                                                  sgriffin@ci.goffstown.nh.us
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                                                                   Town of Goffstown
                                                                                     TOWN OFFICES
                                                                  16 MAIN STREET  GOFFSTOWN, NH 03045




C. Approach Used In This Methodology
This methodology has been adapted to reflect local demographic and fiscal characteristics of
Goffstown. These characteristics are best represented, not by national standards and criteria, but
by the existing level of public recreational facilities currently in Goffstown. These facilities,
constructed over a period of time, are those that the community has deemed as required, setting
the local standard. It is assumed that this standard is not only appropriate as a current standard,
but that it is the appropriate future standard as well.

The standard, itself, may be translated into a dollar value. To do so requires the definition of
three parts: the land, the facility and the parking. The current dollar value of the sum of these
parts is the current standard for public recreational facilities for the Town of Goffstown.

        The Land: The land is first identified by tax map and lot. Its value utilized to determine
         the current standard is the assessed value, corrected to represent property value.
         Currently, property is assessed at 66% of its sales value.

        The Facility: Facilities value is the current replacement value of the facility, not
         including land cost. In several cases, there has been recent construction, e.g. the
         construction of playing fields at the landfill and the skateboard park on Church Street that
         are utilized to provided real costs. Generic cost estimates are utilized where no recent
         construction bid costs exist.

        The Parking: The amount of parking utilized for each facility is that which is believed to
         be the required amount, based on current facility usage. This amount may be more than
         is currently provided, due to the property’s space or financial limitations. Parking costs
         are based on the cost per space for on-grade paved parking.

It is assumed that the use of public recreation facilities is by those residents of all housing units,
but adjusted by the anticipated number of children. This adjustment number is taken from the
Methodology for the Calculation of School Impact Fees. The results are termed cost units. The
total cost of public recreational facilities is then divided by the total number of cost units. The
impact on each type of housing unit is then found by multiplying the cost unit by the multiplier
ratio.




PLANNING AND ECONOMIC DEVELOPMENT                                                              (603) 497-8991
                                                                                          FAX (603) 497-8993
                                                                                  sgriffin@ci.goffstown.nh.us
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                                                                   Town of Goffstown
                                                                                     TOWN OFFICES
                                                                  16 MAIN STREET  GOFFSTOWN, NH 03045



In this methodology, the public recreational facilities of Goffstown are treated as an integrated
system of facilities serving the public recreational needs of all residents. Thus, the impact fees
to be derived from the methodology in this report are not specifically attached to any particular
housing development or to any one area of town. Instead, the fees are based on the average unit
cost of providing recreational facilities, to Goffstown’s standard, in proportion to the demand
created by average housing units.

One of the generally accepted principles of impact fee assessment is the calculation of
appropriate “credits” to the fee-payer that recognize the contribution of property tax revenues
(past or future) paid by a given site or development to provide public recreation capacity. This
would be relevant in the case of debt service. In this situation, however, there is no debt service.

Each of the above principles can be reflected in an impact fee assessment system by making
reasonable assumptions that translate the expected demand on public recreation facilities from
new housing into a proportionate charge for the value of the capacity to be consumed. While
no method will perfectly anticipate the exact demands of every housing unit to be developed in
the future, proportionate and reasonable charges can be developed based on analysis of the
demographic impacts of new residential construction. The purpose of this analysis and report is
to illustrate and document a standardized methodology for the calculation of public recreational
impact fees that reflect the unique characteristics of the Town of Goffstown.

This impact fee system relies on numerous variables which may change over time and which
may be adjusted to reflect estimated land costs, construction or replacement costs, local assessed
property value and other factors. In this manner, future updates to the model, when necessary,
can be made to reflect changing demographics.

D. Implementation of Impact Fees
Impact fees for recreational facilities represent a one-time charge assessed at the point where
new dwelling units are to be authorized by building permit. As such, this methodology
recognizes each new dwelling unit as a permanent addition to the base of demand on
Goffstown’s school capacity, and recognizes that the average recreational use may vary by type
of dwelling unit, size of unit, and number of bedrooms.

The actual implementation of one of the methodologies or fee schedules herein may only be
effected by the adoption of an impact fee ordinance. This methodology establishes a rational
basis for determining proportionate dollar amounts for impact fees that could be assessed under
the provisions of local ordinances. Impact fee assessments are implemented primarily to


PLANNING AND ECONOMIC DEVELOPMENT                                                              (603) 497-8991
                                                                                          FAX (603) 497-8993
                                                                                  sgriffin@ci.goffstown.nh.us
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                                                                        Town of Goffstown
                                                                                               TOWN OFFICES
                                                                       16 MAIN STREET  GOFFSTOWN, NH 03045



ensure that adequate public facilities remain available to accommodate new growth and to obtain
more of the revenues needed for such facilities at the time new development takes place.

         Value of Current Recreation Facilities
           Name                           Land and Facility              Acres     Value
           Barnard Park                   Total Acres: 20.12 acres       20.12       256,818
           30 / 25A, 29A & 81             2 basketball courts               0         20,000
                                          Cross Country                     0        200,000
                                          Hiking Trails                     0        200,000
                                          Picnic Area                       0         30,000
                                          Playground                        0         40,000
                                          Soccer Field                      0         55,000
                                          Swimming Pool                     0        800,000
                                          4 Tennis Courts                   0         48,000
                                          Track Field Area                  0        200,000
                                          Volleyball Court                  0         10,000
                                          Parking for 100 Cars              0        200,000
           Roy Park                       Total Acres: 7.55 acres         7.55       241,818
           15 / 57A, 58, 59 & 73A         Baseball/Softball Diamond         0         45,000
                                          Basketball Court                  0         10,000
                                          Picnic Area                       0         30,000
                                          Playground                        0         40,000
                                          Soccer Field                      0         55,000
                                          Swimming Pool                     0        800,000
                                          3 Tennis Courts                   0         36,000
                                          Parking for 100 Cars              0        200,000
           Cemetery Field                 Total Acres: 9.0 acres           9.0        22,879
           27 / 25                        Baseball/Softball Diamond         0         45,000
                                          Parking for 25 Cars               0         50,000
           Recreation Center              Total Acres: 1.8 acres           1.8        52,424
           31 / 19                        Function Room                     0        116,200
                                          Picnic Area                       0         30,000
                                          Skating Rink                      0         10,000
                                          Parking for 50 Cars               0        100,000
           Landfill Fields                Total Area: 34.20 acres          10         18,684
                                          Baseball/Softball Diamonds        0         45,000
                                          2 Soccer                          0        110,000
                                          Football                          0         50,000
                                          Parking for 100 Cars              0        200,000
           Lynchville Beach               Total Acres: 0.3 acres           03         31,212
           21 / 64A & 24 / 59A            Fixtures                          0         10,000
                                          Parking for 50 Cars               0        100,000
           The Common                     Total Acres: 0.25 acres         0.25        59,400
           34 / 152                       Development                       0        100,000
           Skateboard & Church St. Park   Total Acres: 1.0 acre             1         68,000
           34 / 99                        Ramps and park facilities         0         60,000
                                          Parking for 10 Cars               0         20,000
           River Water Front              Total Acres: 0.21 acres         0.21        14,600
           34 / 129                       Facilities                        0        100,000
                                          Parking for 10 Cars               0         20,000
           Rotary Park                    Total Area: 0.3 acres            0.3         1,600
           34 / 164A                      Facilities                        0         50,000
           TOTALS                                                        100.48   $5,002,635



PLANNING AND ECONOMIC DEVELOPMENT                                                                       (603) 497-8991
                                                                                                   FAX (603) 497-8993
                                                                                           sgriffin@ci.goffstown.nh.us
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                                                                        Town of Goffstown
                                                                                               TOWN OFFICES
                                                                      16 MAIN STREET  GOFFSTOWN, NH 03045



Mountain Base Beach on Lake Uncanoonuc is omitted as it is classified as open space. Also, a
number of facilities that town residents use have been omitted from the preceding table because
they are privately owned. These facilities include the four ball fields and the four soccer fields
provided by the Lions Club Field and the Villa Augustina; and the waterfront and boat ramp on
Glenn Lake that is owned by Public Service of New Hampshire and the State of New Hampshire,
respectively. Additionally, the playgrounds and playing fields that are school properties are
omitted, even though through joint use they provide recreation opportunities to town residents
because these values are included within the Methodology for the Calculation of School Impact
Fees.

The total number of dwelling units is from the US Census, with the 2002 statistics derived from
additional building permits issued by the Town through December 15. The breakdown between
housing types is from the Methodology for the Calculation of School Impact Fees, to which have
been added the elderly restricted units and vacant units that were proportioned in the same
manner as occupied units.

                   Number of Dwelling Units
                            Structure Type                        1990         2000           2002
                     Single Family Detached                          3,337        4,019          4,149
                     Single Family Attached                            334          364            377
                     Duplex Structures                                 412          428            428
                     Multifamily 3-4 Units                             132          141            141
                     Multifamily 5 or More Units                       506          545            545
                     Manufactured Housing                              301          301            301
                               TOTALS                                5,022        5,798          5,941

These dwelling units, by type, must be weighted to account for the likely number of children.
The school multiplier, as in the Methodology for the Calculation of School Impact Fees,
describes this variation. By comparing these multipliers for each housing type to the one for
single-family detached homes, one can calculate the total number of cost units.

                   Cost Units
                                                            School           Multiplier     Cost Units
                            Structure Type                 Multiplier         Ratio
                     Single Family Detached                      0.582            100%            4,149
                     Single Family Attached                      0.285              49%             185
                     Duplex Structures                           0.386              66%             282
                     Multifamily 3-4 Units                       0.299              51%              72
                     Multifamily 5 or More Units                 0.155              27%             147
                     Manufactured Housing                        0.338              58%             175
                               TOTALS                                 -                 -         5,010


PLANNING AND ECONOMIC DEVELOPMENT                                                                        (603) 497-8991
                                                                                                    FAX (603) 497-8993
                                                                                            sgriffin@ci.goffstown.nh.us
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                                                                    Town of Goffstown
                                                                                             TOWN OFFICES
                                                                  16 MAIN STREET  GOFFSTOWN, NH 03045



The total value of the public recreational facilities, land, building and parking, of $5,002,635 is
then divided by the total number of cost units, 5,010 to determine that each cost unit is valued at
$1,000. The impact by housing unit type is then found by applying this cost unit to the various
types of housing units.

                             Impact Fee Assessment
                                                                  Multiplier   Impact per
                                    Structure Type                 Ratio        Each Unit
                             Single Family Detached                    100%         $1,000
                             Single Family Attached                      49%          $490
                             Duplex Structures                           66%          $660
                             Multifamily 3-4 Units                       51%          $510
                             Multifamily 5 or More Units                 27%          $270
                             Manufactured Housing                        58%          $580


E. Summary of Fee Computations and Assessment Schedule
         1. Impact Fee Schedule

                   Structure Type              Fee per Dwelling Unit
                   Single Family Detached             $1,000
                   Single Family Attached               $490
                   Duplex                               $660
                   Multifamily 3-4 Units                $510
                   Multifamily 5 or More Units          $270
                   Manufactured Housing                 $580

         2. Standard Waiver Recommendation

                   None.

         3. Structural Types for Impact Fee Assessment

         The impact fee assessment schedule is a charge per dwelling unit by type of structure for
         new construction or conversion activity that would result in a net increase in the number
         of dwelling units. The construction types for which impact fees have been calculated are
         based on U. S. Census classifications of housing units by structural type in the 1990
         Census. The definitions of housing units by structure type are interpreted below, based
         on the 1990 Census, “Definitions of Subject Characteristics”.


PLANNING AND ECONOMIC DEVELOPMENT                                                                  (603) 497-8991
                                                                                              FAX (603) 497-8993
                                                                                      sgriffin@ci.goffstown.nh.us
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                                                                   Town of Goffstown
                                                                                     TOWN OFFICES
                                                                  16 MAIN STREET  GOFFSTOWN, NH 03045



                   Single Family Detached (1-Unit, Detached). This is a 1-unit structure
                   detached from any other structure; that is, with open space on all four sides.
                   Such structures are considered detached even if they have an adjoining shed or
                   garage. A one-family house that contains a business is considered detached as
                   long as the building has open space on all four sides. In the case of a mobile
                   home, where one or more rooms have been or will be added, the unit should
                   be assessed under the single-family classification.

                   Townhouse (1-Unit, Attached). This is a one-unit structure that has one or
                   more walls extending from ground to roof separating it from adjoining
                   structures. In row houses (sometimes called townhouses), double houses, or
                   houses attached to non-residential structures, each house is a separate,
                   attached structure if the dividing or common wall goes from ground to roof.
                   Attached townhouse construction should be assessed within this classification
                   for impact fee purposes.

                   Duplex/ Two Unit/ 3-4 Unit Structures. These are units in structures
                   containing 2 to four housing units, other than those meeting the townhouse or
                   1-unit attached definition. For the purpose of impact fee assessment,
                   structures with 2 units and those with 3-4 units tend to have higher enrollment
                   multipliers than large apartment complexes. Small walk-up apartment
                   buildings, where a floor separates the units, or which are separated by a wall
                   but share a basement generally fit within these structural types.

                   Multifamily Structures of 5+ units (typical for larger apartment
                   developments) are broken out separately since they generally have lower
                   enrollment multipliers than 2-4 family and attached townhouse units. The 5+
                   unit category will generally be used for garden-style apartments or garden-
                   style condominiums.

                   Manufactured Housing includes units classified in the Census as mobile
                   homes or trailers to which no permanent rooms have been added.

         The impact fee assessment is intended to be applied per unit of new development, by type
         of structure, to any new construction or conversion activity that results in a net increase in
         the number of dwelling units.




PLANNING AND ECONOMIC DEVELOPMENT                                                              (603) 497-8991
                                                                                          FAX (603) 497-8993
                                                                                  sgriffin@ci.goffstown.nh.us
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                                                                   Town of Goffstown
                                                                                     TOWN OFFICES
                                                                  16 MAIN STREET  GOFFSTOWN, NH 03045



         4. Conversions and Additions

         In cases where a conversion or addition to a structure changes the number of dwelling
         units within the structure to a new classification of dwelling unit, the impact fee may be
         computed by calculating the impact fee for the new use and number of units, and
         subtracting the fee that would have applied to the existing development if it were new.
         For example, if a single family home were converted to a duplex:

                   Fee for 2-family structure:           2 units @ $ 660           = $1,320
                   Less schedule amount for single-family unit                      ($1,000)
                   Net difference (impact from change in use)                         $320

         In the above example, the net positive difference of $320 represents the value of the net
         impact created by the change in use from a single-family home to a two-family unit. In
         this way, the baseline impact already presence in the form of an existing single family
         home is taken into account. The conversion is then assessed only for the incremental
         impact generated by the change. In order to assess such fees, the impact fee ordinance
         will need to provide an inclusive definition of “new development” that includes such
         conversions or changes in use.

         5. Updating the Fee Schedule

         The impact fee methodology has been designed to allow for future updates or
         modification of the underlying assumptions. Periodically, the variables in the impact fee
         model can be updated based on new information and documentation to produce revised
         impact fee amounts. These variables include changes in:

                  Property purchase costs;
                  Facility replacement costs;
                  Parking lot construction costs;
                  A change in the number of students relative to the various housing types;
                   and
                  A change in proportion of the various housing types to total housing.
         Updates to the fee schedule using the methodology described in this report should be
         made after consideration of all of the variables involved, as some of these elements are
         interdependent. The impact fee ordinance should include policies that address the
         frequency and procedures for adopting updated calculations and fee schedules.



PLANNING AND ECONOMIC DEVELOPMENT                                                              (603) 497-8991
                                                                                          FAX (603) 497-8993
                                                                                  sgriffin@ci.goffstown.nh.us
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