HomeMy WebLinkAboutCouncil Presentation 11/07/2017 - Impact Fee ProgramImpact Fee Program Update
Keith Brann, Town Engineer
John Kmiec, Marana Water Director
November 7, 2017
The Impact Fee Process
MARANA
• Authorized under ARS §9-463.05
• Can only be used (and credits given) for new
construction , not maintenance
• Can NOT be used to improve existing deficiencies —
only build equivalent level of service
• Must use current land use assumptions and
infrastructure needs for a 10 year cycle
• Must be for a proportionate share
11/7/2017
1
"`_ Impact Fee Calculations
MARANA
1. Determine existing level of service and users of
the infrastructure
2. Calculate EDU relationships
3. Forecast growth in the next 10 years
4. Determine infrastructure needed to serve the
future growth
5. Determine portion of infrastructure
attributable to the growth = raw cost per
EDU
6. Assign credits for concurrent revenues
(if applicable)
D6�
Land Use Assumptions - 2017
MARANA -
Total 10 -year Growth Estimate
2014 Final Report 2017 Draft Report
• 6,895 new homes/18,683 people • 6,973 new homes (+1.1%)/17,103 people (-8.4i)
• 401 acres of commercial/industrial • 341 acres of commercial/industrial (-isr)
• 6,186 new jobs • 4,750 new jobs (-23i)
• Revised 10 -year population and employment forecast
• Residential & commercial growth estimates at subdivision level
— Town staff refines input to PAG modeling
• Allocation to fee service areas
11/7/2017
2
11/7/2017
� Fee Service Areas - Streets
MARANA AZ
'{: :�• -x
.-• '�' fi,'r • ti.
Al
B
DibApproved Infrastructure Improvement Plan
_z Streets
MARANA A 7
Total 5 67,849,296
Total Cost of Cost of Cost
Project ProjectType Improvement Vehicular bike/ped Attributable to
Costs Improv 80% Im rov 2036 Development
SeZ.JAr..Road
Tot
Marana Main Street New $ 2,020,000 $ 2,020,000
Marana Main Street Capacity $ 11000,000
3
oGladden
z
Tangerine Farms Road
Clark Farms Legacy $ 5,462,000
Farms
Lon Adams Road
Tangerine Farms Road New $ 8,970,000 $ 4,490,000
Marana Road Interchange, Phase Intersection 6000000 $ 6,000,000
$ 18,972,000
Tangerine Road, Phase 1 Capacity $ 6,189 000 $ 4,951,200 $ 1,237,800 $ 2,150,081
Tangerine Road, Phase 2 Expansion $ 49,179,000 $ 39,343,200 $ 9,835,800 $ 13,570,219
r
Twin Peaks Road Lea $ 4,097,000
z
Moore Road Legacy $ 876,000
$ 20,693,300
Twin Peaks lnterchan a Legacy $ 3,008,000
Twin Peaks Road Legacy $ 2,049,000
Twin Peaks Road/Rattlesnake Expansion $ 11210,000 $ 8,968,000 $ 2,242000 $ 4,549,720
Cortaro Road Capacity $ 8,134735 $ 6,507,788 $ 1,626947 $ 2,353,668
Silverbell Road Capacity $ 21,068,682 $ 16,854,946 $ 4,213,736 $ 12,071,849
Ina Road Capacity $ 9,000,000 $ 7,200,000 $ 1,800,000 $ 4,151,759
$ 28,183,996
Total 5 67,849,296
Approved Infrastructure Improvement Plan
Parks
MARANA AZ
PROJECT
FY 2018-20 FY 2021-28 10 Year Total
Impact Fee Study
65,000
65,000
North Marana Sports Fields
350,000
3,000,000
3,350,000
Parks, Recreation, Trails & Open Space Master Plan
350,000
350,000
Saguaro Bloom Community Park
3,377,800
3,377,800
Tangerine Sky Community Park Hard Structures
500,000
500,000
NE District Park Land Acquisition
1,500,000
1,500,000
AP Canal Trail Improvements
100,000
100,000
Santa Cruz SUP Phase IV (Avra Valle Rd. - N. Marana)
1,500,000
1,500,000
ortolita Trail Extension
450,000
450,000
Heritage River Park Improvements
1,000,000
1,000,000
Ora Mae Harn Park Improvements
250,000
2,200,000
2,450,000
Tangerine Road Cooridor Path
900,000
900,000
Santa Cruz Shared Use Path, Phase III
1,000,000
1,000,000
Adult Softball Field Ora Mae Harn Park
360,000
360,000
Tota
16,902,800
Fee Service Areas - Water
z
MARANA AZ
f
y
rtes • (:._ Ij!L . '_..u, e«».',»a, K* I ".
11/7/2017
11
11/7/2017
Approved Infrastructure Improvement Plan
Water Infrastructure
MARANA AZ
Table 22. Summary of infrastructure improvement costs by benefit area
Table 27. Summary of costs associated with water rights acquisitions
Year
Planning
Reimbursements
Proposed
Infrastructure
Y
Total f
Twin Saguaro
Peaks Bloom
North
Marana
Twin
Peaks
S40--5.46
2018
$75,000
$254,135
$97,967
$324,000
$1,344,600
52,095,702
$128,250
2019
$254,055 $97,972
$1,736910
52,088,937
5905,2-5
2020
5128,250
$253,973
$97,972
$675,000
2021
2022
$1,026,945
$340,409
$340,409
$128,250
$128,250
2021
1
$253,889
397,972
$2,,203,875
1
52,555,736
2022
$253,802 $97,972
$2,227,7701
i
$2,579,544
2023
1 $253,712 1 $97,972
$351,684
2024
2025
20'6
$253,620
$97,972
$128,250
$128,250
$351,592
51,373," 84
51,3" 4,034
_-'--
2025
2026
$340,409
$253,525
$97,972
1
1
$351,497
$9,048,326
$253,428 $97,972
$351,400
2027
5253,327 $97,972
$351,299
Totall
575,000 1
52,537,466 1
$979,713
$5,430,645
53,081,110
512,104,336
Q� Approved Infrastructure Improvement Plan
�- Water Resource
MARANA AZ
Table 27. Summary of costs associated with water rights acquisitions
Year
Portion of Portion of
Plant WRF
Acquisition Upgrade
Debt Service Debt Service'
Recharge Non -Indian
Basin Debt Agricultural
Service Reallocation
Avra CAP
M&I
Total
2018
5904,963
S40--5.46
5153,544
$13,06
5692,9-0
S2,1-4,-29
2019
$904,963
$340,409
$128,250
$15,706
$1,389,328
_
2021)
5905,2-5
$340,409
5128,250
$15,706
$1,389,640
2021
2022
5903,5,5
$906,175
$340,409
$340,409
$128,250
$128,250
$15,706
$15,706
$1,38,940
$1,390,540
2023
$905,3'5
$310,409
$128,250
_
$1,3'4,034
_
2024
5903,375
$340,409
$128,250
$1,3'2,034
2025
20'6
5905,125
$905,3"5
$340,409
$340,409
$128,250
$128,250
51,373," 84
51,3" 4,034
_-'--
$904,1'5
$340,409
5128,250
51,3'2,"84
Total
$9,048,326
$3,471,227
$1,307,794
$78,530
$692,970
$14,598,847
MARANA
Z,<\11." -
Fee Service Area - Sewer
MARANA
Porion of
Upgrade Debt
Service
CollectionCollection
System
Improvements
System Master Total
Plass
7
$904,963
6
-s-+
9 10
" .
$340,109
13
16
20
$340,409
19
15
2021
17
21'
MARANA
Approved Infrastructure Improvement Plan
Sewer Infrastructure
Table IS. Tool CIP Costs
Period
Plant
Acquisition
Debt Service
Porion of
Upgrade Debt
Service
CollectionCollection
System
Improvements
System Master Total
Plass
2018
$904,963
$4075311
50,000 $1,382,509
2019
$904,963
$340,109
$1,245,372
2020
$905,275
$340,409
$1,245,684
2021
$903,575
$340,409
$465,750
$1,709,734
2022
$906,175
$340,409
$1,246,584
2023
$905,375
$340,409
$145,784
2024
$903,375
$310,409
$1,243,784
2025 1
$905,125
$340,409
$248,100
$1,493,931
2026
$905,375
$310,409
1 $1245,784
2027 1
$904,125
$340,409
1 $1244,534
Totall
$9,048,326
$3,471,227
$714,150
$70,000 1 $13,303,703
11/7/2017
L
Final Fee Process
MARANA AZ
1. The Infrastructure Improvement Plan determines what infrastructure is
needed due to projected growth, but infrastructure provided likely yields
more capacity than what is absolutely needed.
2. The Fee study determines the proportional cost per EDU. This sets the Raw
Impact Fee.
3. The Fee study must also take into account other revenues that the Town
receives and credit them against the Raw Impact Fee. This creates the Base
Impact Fee which is what is published as the "Impact Fee".
4. Finally, should a developer build infrastructure that is part of the original IIP,
the cost of that infrastructure is also credited against the Base Impact Fee.
Construction Sales Tax Credit
MARANA r
1. The Town charges a 4% construction sales tax and normally a 2% retail sales
tax. State law requires Town to credit the difference against impact fees.
2. The State formula for construction sales tax assumes 65% of a construction
charge is for materials and 35% is for labor. The Tax only applies to materials.
3. The Town uses the same International Code Council cost per square foot table
used in building permit fee valuation to also determine impact fee valuation.
State Formula
(65% x 10.1%) / (1+(65% x 10.1%)) x (4% / 10.1%) x ((4%-2%) / 4%) = 1.2199%
Retail Example, ICC cost per sf = $104.03, raw impact fee = $8,143 per 1,000sf
$104.03/sf x 1000sf x 1.1299% _ $1,270 reduction from raw fee
$8,143 - $1,270 = $6,873 per 1,000sf base fee
11/7/2017
7
Proposed Base Impact Fees
MARANA
Summary of Timeline
MARANA
6/2/2017 Publication of draft LUA and IIPs
6/20/2017 Council study session
7/14/2017 Stakeholder outreach meeting
8/1/2017 Public Hearing for LUA and IIPs
9/19/2017 Council action on LUA and IIPs
9/22/2017 Notice of intent to implement impact fees
11/7/2017 Public Hearing for impact fees
12/19/2017 Council Action for impact fees
3/05/2018 Impact fees effective (min 75 days from council action)
11/7/2017
0
Pre SB3525
2014 study /
Current
2017study
Northwest Streets
$7,372
$3294/NA
$3,719
Northeast Streets
$7,624
$5,599
$4,291
South Streets
$3,465
$3926/ $3465
$4,327
Parks
$3,294
$2,461
$2,461
Water lnfrastructrue-TwinPeaks
$864
$2,457
$2,740
Water lnfrastructrue - Saguaro Bloom
$864
$1,189
$838
Water Infrastructure - North Marana
$864
$2,122
$2,331
Water Resource
$1,467
$1,771
$3,050
Sewer
$4,544
$4,241
$3,930
Summary of Timeline
MARANA
6/2/2017 Publication of draft LUA and IIPs
6/20/2017 Council study session
7/14/2017 Stakeholder outreach meeting
8/1/2017 Public Hearing for LUA and IIPs
9/19/2017 Council action on LUA and IIPs
9/22/2017 Notice of intent to implement impact fees
11/7/2017 Public Hearing for impact fees
12/19/2017 Council Action for impact fees
3/05/2018 Impact fees effective (min 75 days from council action)
11/7/2017
0