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H0607aa,aaS.........................................by REVENUE AND TAXATION
DEVELOPMENT IMPACT FEE - Amends existing law relating to development impact
fees to govern the process for individual assessment of proportionate
share; to require an update of the capital improvements plan and inclusion
of tax and revenues invested in system improvements in determining
proportionate share; and to provide for adjustments of proportionate share.
02/08 House intro - 1st rdg - to printing
02/11 Rpt prt - to Rev/Tax
02/20 Rpt out - to Gen Ord
Rpt out amen - to engros
02/21 Rpt engros - 1st rdg - to 2nd rdg as amen
02/22 2nd rdg - to 3rd rdg as amen
02/27 3rd rdg as amen - PASSED - 60-7-3
AYES -- Aikele, Barraclough, Barrett, Bedke, Bell, Black, Block, Boe,
Bolz, Bradford, Bruneel, Callister, Campbell, Clark, Collins, Crow,
Cuddy, Deal, Ellis, Ellsworth, Eskridge, Field(13), Field(20),
Gagner, Gould, Hadley, Hammond, Harwood, Henbest, Higgins, Hornbeck,
Kellogg(Duncan), Kendell, Kunz, Lake, Loertscher, Mader, McKague,
Montgomery, Moyle, Pearce, Pischner, Pomeroy, Raybould, Ridinger,
Roberts, Sali, Schaefer, Sellman, Shepherd, Smith(33), Smith(23),
Smylie, Stevenson, Tilman, Trail, Wheeler, Wood, Young, Mr. Speaker
NAYS -- Bieter, Jaquet, Jones, Martinez, Meyer, Robison, Stone
Absent and excused -- Denney, Langford, Mortensen
Floor Sponsor - Wheeler
Title apvd - to Senate
02/28 Senate intro - 1st rdg - to Loc Gov
03/05 Rpt out - to 14th Ord
03/06 Rpt out amen - to 1st rdg as amen
03/07 1st rdg - to 2nd rdg as amen
03/08 2nd rdg - to 3rd rdg as amen
03/11 3rd rdg as amen - PASSED - 34-1-0
AYES -- Andreason, Boatright, Branch(Bartlett), Brandt, Bunderson,
Burtenshaw, Cameron, Darrington, Davis, Deide, Frasure, Geddes,
Goedde, Hawkins, Hill, Ingram, Ipsen, Keough, King-Barrutia, Little,
Lodge, Marley, Noh, Richardson, Risch, Sandy, Schroeder, Sims,
Sorensen, Stegner, Stennett, Thorne, Wheeler, Williams
NAYS -- Dunklin
Absent and excused -- None
Floor Sponsor - Stegner
Title apvd - to House
03/12 House concurred in Senate amens - to engros
03/13 Rpt engros - 1st rdg - to 2nd rdg as amen
Rls susp - PASSED - 63-4-3
AYES -- Aikele, Barraclough, Barrett, Bedke, Bell, Bieter, Black,
Block, Boe, Bolz, Bradford, Bruneel, Callister, Campbell, Clark,
Collins, Crow, Cuddy, Deal, Denney, Ellis, Ellsworth, Eskridge,
Field(13), Field(20), Gagner, Gould, Hadley, Hammond, Harwood,
Henbest, Higgins, Hornbeck, Jaquet, Jones, Kellogg, Kendell, Kunz,
Lake, Mader, McKague, Montgomery, Mortensen, Moyle, Pearce, Pischner,
Pomeroy, Raybould, Ridinger, Roberts, Sali, Schaefer, Sellman,
Shepherd, Smith(33), Smith(23), Smylie, Stevenson, Stone, Tilman,
Trail, Wheeler, Mr. Speaker
NAYS -- Langford, Martinez, Meyer, Robison
Absent and excused -- Loertscher, Wood, Young
Floor Sponsor - Wheeler
Title apvd - to enrol
03/14 Rpt enrol - Sp signed - Pres signed
03/14 To Governor
03/27 Governor signed
Session Law Chapter 347
Effective: 07/01/02
With affected agencies implementing a
capitol improvement plan-based impact
fee program by 03/31/03
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature Second Regular Session - 2002
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 607
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO DEVELOPMENT IMPACT FEES; AMENDING SECTION 67-8203, IDAHO CODE, TO
3 FURTHER DEFINE TERMS AND TO MAKE A TECHNICAL CORRECTION; AMENDING SECTION
4 67-8204, IDAHO CODE, TO GOVERN THE PROCESS FOR INDIVIDUAL ASSESSMENT OF
5 PROPORTIONATE SHARE; AMENDING SECTION 67-8207, IDAHO CODE, TO INCLUDE TAX
6 REVENUES IN DETERMINATION OF PROPORTIONATE SHARE; AMENDING SECTION
7 67-8208, IDAHO CODE, TO REQUIRE THE UPDATE OF THE CAPITAL IMPROVEMENTS
8 PLAN AND TO MAKE A TECHNICAL CORRECTION; AMENDING SECTION 67-8209, IDAHO
9 CODE, TO GOVERN CREDITS TO BE CONSIDERED; AMENDING SECTION 67-8210, IDAHO
10 CODE, TO PROVIDE FOR REPORT OF TAX AND REVENUES INVESTED IN SYSTEM
11 IMPROVEMENTS; AMENDING SECTION 67-8211, IDAHO CODE, TO PROVIDE ADDITIONAL
12 GROUNDS FOR REFUNDS; AND AMENDING SECTION 67-8213, IDAHO CODE, TO PROVIDE
13 FOR ADJUSTMENTS OF PROPORTIONATE SHARE OF IMPACT FEES.
14 Be It Enacted by the Legislature of the State of Idaho:
15 SECTION 1. That Section 67-8203, Idaho Code, be, and the same is hereby
16 amended to read as follows:
17 67-8203. DEFINITIONS. As used in this chapter:
18 (1) "Affordable housing" means housing affordable to families whose
19 incomes do not exceed eighty percent (80%) of the median income for the ser-
20 vice area or areas within the jurisdiction of the governmental entity.
21 (2) "Appropriate" means to legally obligate by contract or otherwise com-
22 mit to use by appropriation or other official act of a governmental entity.
23 (3) "Capital improvements" means improvements with a useful life of ten
24 (10) years or more, by new construction or other action, which increase the
25 service capacity of a public facility.
26 (4) "Capital improvement element" means a component of a comprehensive
27 plan adopted pursuant to chapter 65, title 67, Idaho Code, which component
28 meets the requirements of a capital improvements plan pursuant to this chap-
29 ter.
30 (5) "Capital improvements plan" means a plan adopted pursuant to this
31 chapter that identifies capital improvements for which development impact fees
32 may be used as a funding source.
33 (6) "Developer" means any person or legal entity undertaking development,
34 including a party that undertakes the subdivision of property pursuant to sec-
35 tions 50-1301 through 50-1334, Idaho Code.
36 (7) "Development" means any construction or installation of a building or
37 structure, or any change in use of a building or structure, or any change in
38 the use, character or appearance of land, which creates additional demand and
39 need for public facilities or the subdivision of property that would permit
40 any change in the use, character or appearance of land.
41 (8) "Development approval" means any written authorization from a govern-
42 mental entity which authorizes the commencement of a development.
43 (9) "Development impact fee" means a payment of money imposed as a condi-
2
1 tion of development approval to pay for a proportionate share of the cost of
2 system improvements needed to serve development. This term is also referred to
3 as an impact fee in this chapter. The term does not include the following:
4 (a) A charge or fee to pay the administrative, plan review, or inspection
5 costs associated with permits required for development;
6 (b) Connection or hookup charges;
7 (c) Availability charges for drainage, sewer, water, or transportation
8 charges for services provided directly to the development; or
9 (d) Amounts collected from a developer in a transaction in which the gov-
10 ernmental entity has incurred expenses in constructing capital improve-
11 ments for the development if the owner or developer has agreed to be
12 financially responsible for the construction or installation of the capi-
13 tal improvements, unless a written agreement is made pursuant to section
14 67-8209(3), Idaho Code, for credit or reimbursement.
15 (10) "Development requirement" means a requirement attached to a develop-
16 mental approval or other governmental action approving or authorizing a par-
17 ticular development project including, but not limited to, a rezoning, which
18 requirement compels the payment, dedication or contribution of goods, ser-
19 vices, land, or money as a condition of approval.
20 (11) "Extraordinary costs" means those costs incurred as a result of an
21 extraordinary impact.
22 (12) "Extraordinary impact" means an impact which is reasonably determined
23 by the governmental entity to: (i) result in the need for system improvements,
24 the cost of which will significantly exceed the sum of the development impact
25 fees to be generated from the project or the sum agreed to be paid pursuant to
26 a development agreement as allowed by section 67-8214(2), Idaho Code, or (ii)
27 result in the need for system improvements which are not identified in the
28 capital improvements plan.
29 (13) "Fee payer" means that person who pays or is required to pay a devel-
30 opment impact fee.
31 (14) "Governmental entity" means any unit of local government that is
32 empowered in this enabling legislation to adopt a development impact fee ordi-
33 nance.
34 (15) "Impact fee." See development impact fee.
35 (16) "Land use assumptions" means a description of the service area and
36 projections of land uses, densities, intensities, and population in the ser-
37 vice area over at least a twenty (20) year period.
38 (17) "Level of service" means a measure of the relationship between ser-
39 vice capacity and service demand for public facilities.
40 (18) "Manufactured home" means a structure, constructed according to
41 HUD/FHA mobile home construction and safety standards, transportable in one
42 (1) or more sections, which, in the traveling mode, is eight (8) feet or more
43 in width or is forty (40) body feet or more in length, or when erected on
44 site, is three hundred twenty (320) or more square feet, and which is built on
45 a permanent chassis and designed to be used as a dwelling with or without a
46 permanent foundation when connected to the required utilities, and includes
47 the plumbing, heating, air conditioning, and electrical systems contained
48 therein, except that such term shall include any structure which meets all the
49 requirements of this subsection except the size requirements and with respect
50 to which the manufacturer voluntarily files a certification required by the
51 secretary of housing and urban development and complies with the standards
52 established under 42 U.S.C. 5401, et seq.
53 (19) "Modular building" means any building or building component, other
54 than a manufactured home, which is constructed according to standards con-
55 tained in the Uniform Building Code, as adopted or any amendments thereto,
3
1 which is of closed construction and is either entirely or substantially pre-
2 fabricated or assembled at a place other than the building site.
3 (20) "Present value" means the total current monetary value of past, pres-
4 ent, or future payments, contributions or dedications of goods, services,
5 materials, construction or money.
6 (21) "Project" means a particular development on an identified parcel of
7 land.
8 (22) "Project improvements" means site improvements and facilities that
9 are planned and designed to provide service for a particular development proj-
10 ect and that are necessary for the use and convenience of the occupants or
11 users of the project.
12 (23) "Proportionate share" means that portion of the cost of system
13 improvements determined pursuant to section 67-8207, Idaho Code, which reason-
14 ably relates to the service demands and needs of the project.
15 (24) "Public facilities" means:
16 (a) Water supply production, treatment, storage and distribution facili-
17 ties;
18 (b) Wastewater collection, treatment and disposal facilities;
19 (c) Roads, streets and bridges, including rights-of-way, traffic signals,
20 landscaping and any local components of state or federal highways;
21 (d) Storm water collection, retention, detention, treatment and disposal
22 facilities, flood control facilities, and bank and shore protection and
23 enhancement improvements;
24 (e) Parks, open space and recreation areas, and related capital improve-
25 ments; and
26 (f) Public safety facilities, including law enforcement, fire, emergency
27 medical and rescue and street lighting facilities.
28 (25) "Recreational vehicle" means a vehicular type unit primarily designed
29 as temporary quarters for recreational, camping, or travel use, which either
30 has its own motive power or is mounted on or drawn by another vehicle.
31 (26) "Service area" means any defined geographic area identified by a gov-
32 ernmental entity or by intergovernmental agreement in which specific public
33 facilities provide service to development within the area defined, on the
34 basis of sound planning or engineering principles or both.
35 (27) "Service unit" means a standardized measure of consumption, use, gen-
36 eration or discharge attributable to an individual unit of development calcu-
37 lated in accordance with generally accepted engineering or planning standards
38 for a particular category of capital improvements.
39 (28) "System improvements," in contrast to project improvements, means
40 capital improvements to public facilities which are designed to provide ser-
41 vice to a service area including, without limitation, the type of improvements
42 described in section 50-1703, Idaho Code.
43 (29) "System improvement costs" means costs incurred for construction or
44 reconstruction of system improvements, including design, acquisition, engi-
45 neering and other costs attributable thereto, and also including, without lim-
46 itation, the type of costs described in section 50-1702(h), Idaho Code, to
47 provide additional public facilities needed to serve new growth and develop-
48 ment. For clarification, system improvement costs do not include:
49 (a) Construction, acquisition or expansion of public facilities other
50 than capital improvements identified in the capital improvements plan;
51 (b) Repair, operation or maintenance of existing or new capital improve-
52 ments;
53 (c) Upgrading, updating, expanding or replacing existing capital improve-
54 ments to serve existing development in order to meet stricter safety,
55 efficiency, environmental or regulatory standards;
4
1 (d) Upgrading, updating, expanding or replacing existing capital improve-
2 ments to provide better service to existing development;
3 (e) Administrative and operating costs of the governmental entity unless
4 such costs are attributable to development of the capital improvement
5 plan, as provided in section 67-8208, Idaho Code; or
6 (f) Principal payments and interest or other finance charges on bonds or
7 other indebtedness except financial obligations issued by or on behalf of
8 the governmental entity to finance capital improvements identified in the
9 capital improvements plan.
10 SECTION 2. That Section 67-8204, Idaho Code, be, and the same is hereby
11 amended to read as follows:
12 67-8204. MINIMUM STANDARDS AND REQUIREMENTS FOR DEVELOPMENT IMPACT FEES
13 ORDINANCES. Governmental entities which comply with the requirements of this
14 chapter may impose by ordinance development impact fees as a condition of
15 development approval on all developments.
16 (1) A development impact fee shall not exceed a proportionate share of
17 the cost of system improvements determined in accordance with section 67-8207,
18 Idaho Code. Development impact fees shall be based on actual system improve-
19 ment costs or reasonable estimates of such costs.
20 (2) A development impact fee shall be calculated on the basis of levels
21 of service for public facilities adopted in the development impact fee ordi-
22 nance of the governmental entity that are applicable to existing development
23 as well as new growth and development. The construction, improvement, expan-
24 sion or enlargement of new or existing public facilities for which a develop-
25 ment impact fee is imposed must be attributable to the capacity demands gener-
26 ated by the new development.
27 (3) A development impact fee ordinance shall specify the point in the
28 development process at which the development impact fee shall be collected.
29 The development impact fee may be collected no earlier than the commencement
30 of construction of the development, or the issuance of a building permit or a
31 manufactured home installation permit, or as may be agreed by the developer
32 and the governmental entity.
33 (4) A development impact fee ordinance shall be adopted in accordance
34 with the procedural requirements of section 67-8206, Idaho Code.
35 (5) A development impact fee ordinance shall include a provision permit-
36 ting process whereby the governmental agency shall provide, upon request by
37 the developer, a written individual assessments of the proportionate share of
38 development impact fees under the guidelines established in the ordinance by
39 this chapter which shall be set forth in the ordinance. The individual assess-
40 ment process shall permit consideration of studies, data, and any other rele-
41 vant information submitted by the developer to adjust the amount of the fee.
42 The decision by the governmental agency on an application for an individual
43 assessment shall include an explanation of the calculation of the impact fee,
44 including an explanation of factors considered under section 67-8207, Idaho
45 Code, and shall specify the system improvement(s) for which the impact fee is
46 intended to be used.
47 (6) A development impact fee ordinance shall provide a process whereby a
48 developer shall receive, upon request, a written certification of the develop-
49 ment impact fee schedule or individual assessment for a particular project,
50 which shall establish the development impact fee for a period of one (1) year
51 from the date of the certification so long as there is no material change to
52 the particular project as identified in the individual assessment application,
53 or the impact fee schedule. The certification shall include an explanation of
5
1 the calculation of the impact fee including an explanation of factors consid-
2 ered under section 67-8207, Idaho Code. The certification shall also specify
3 the system improvement(s) for which the impact fee is intended to be used.
4 (7) A development impact fee ordinance shall include a provision for cre-
5 dits in accordance with the requirements of section 67-8209, Idaho Code.
6 (8) A development impact fee ordinance shall include a provision prohib-
7 iting the expenditure of development impact fees except in accordance with the
8 requirements of section 67-8210, Idaho Code.
9 (9) A development impact fee ordinance may provide for the imposition of
10 a development impact fee for system improvement costs incurred subsequent to
11 adoption of the ordinance to the extent that new growth and development will
12 be served by the system improvements.
13 (10) A development impact fee ordinance may exempt all or part of a par-
14 ticular development project from development impact fees provided that such
15 project is determined to create affordable housing, provided that the public
16 policy which supports the exemption is contained in the governmental entity's
17 comprehensive plan and provided that the exempt development's proportionate
18 share of system improvements is funded through a revenue source other than
19 development impact fees.
20 (11) A development impact fee ordinance shall provide that development
21 impact fees shall only be spent for the category of system improvements for
22 which the fees were collected and either within or for the benefit of the ser-
23 vice area in which the project is located.
24 (12) A development impact fee ordinance shall provide for a refund of
25 development impact fees in accordance with the requirements of section
26 67-8211, Idaho Code.
27 (13) A development impact fee ordinance shall establish for a procedure
28 for timely processing of applications for determination by the governmental
29 entity regarding development impact fees applicable to a project, individual
30 assessment of development impact fees, credits or reimbursements to be allowed
31 or paid under section 67-8209, Idaho Code, and extraordinary impact.
32 (14) A development impact fee ordinance shall specify when an application
33 for an individual assessment of development impact fees shall be permitted to
34 be made by a developer or fee payer. An application for an individual assess-
35 ment of development impact fees shall be permitted sufficiently in advance of
36 the time that the developer or fee payer may seek a building permit or related
37 permits so that the issuance of a building permit or related permits will not
38 be delayed.
39 (15) A development impact fee ordinance shall provide for appeals regard-
40 ing development impact fees in accordance with the requirements of section
41 67-8212, Idaho Code.
42 (156) A development impact fee ordinance must provide a detailed descrip-
43 tion of the methodology by which costs per service unit are determined. The
44 following methodologies shall be acceptable: (a) The development impact fee
45 per service unit may not exceed the amount determined by dividing the costs of
46 the capital improvements described in section 67-8208(1)(f), Idaho Code, by
47 the total number of projected service units described in section
48 67-8208(1)(g), Idaho Code. If the number of new service units projected over a
49 reasonable period of time is less than the total number of new service units
50 shown by the approved land use assumptions at full development of the service
51 area, the maximum impact fee per service unit shall be calculated by dividing
52 the costs of the part of the capital improvements necessitated by and attrib-
53 utable to the projected new service units described in section 67-8208(1)(g),
54 Idaho Code, by the total projected new service units described in that sec-
55 tion.
6
1 (b) An alternative methodology may be used by a governmental entity pro-
2 vided that the governmental entity can demonstrate that such alternative
3 methodology accurately calculates the proportionate share of the impact of
4 the proposed development on the capacity of system improvements in terms
5 of generally accepted engineering and planning principles.
6 (167) A development impact fee ordinance shall include a schedule of
7 development impact fees for various land uses per unit of development. The
8 ordinance shall provide that a developer shall have the right to elect to pay
9 a project's proportionate share of system improvement costs by payment of
10 development impact fees according to the fee schedule as full and complete
11 payment of the development project's proportionate share of system improvement
12 costs, except as provided in section 67-8214(3), Idaho Code.
13 (178) After payment of the development impact fees or execution of an
14 agreement for payment of development impact fees, additional development
15 impact fees or increases in fees may not be assessed unless the number of ser-
16 vice units increases or the scope or schedule of the development changes. In
17 the event of an increase in the number of service units or schedule of the
18 development changes, the additional development impact fees to be imposed are
19 limited to the amount attributable to the additional service units or change
20 in scope of the development.
21 (189) No system for the calculation of development impact fees shall be
22 adopted which subjects any development to double payment of impact fees.
23 (1920) A development impact fee ordinance shall exempt from development
24 impact fees the following activities:
25 (a) Rebuilding the same amount of floor space of a structure which was
26 destroyed by fire or other catastrophe, providing the structure is rebuilt
27 and ready for occupancy within two (2) years of its destruction;
28 (b) Remodeling or repairing a structure which does not increase the num-
29 ber of service units;
30 (c) Replacing a residential unit, including a manufactured home, with
31 another residential unit on the same lot, provided that the number of ser-
32 vice units does not increase;
33 (d) Placing a temporary construction trailer or office on a lot;
34 (e) Constructing an addition on a residential structure which does not
35 increase the number of service units; and
36 (f) Adding uses that are typically accessory to residential uses, such as
37 tennis courts or clubhouse, unless it can be clearly demonstrated that the
38 use creates a significant impact on the capacity of system improvements.
39 (201) A development impact fee will be assessed for installation of a mod-
40 ular building, manufactured home or recreational vehicle unless the fee payer
41 can demonstrate by documentation such as utility bills and tax records,
42 either:
43 (a) That a modular building, manufactured home or recreational vehicle
44 was legally in place on the lot or space prior to the effective date of
45 the development impact fee ordinance; or
46 (b) That a development impact fee has been paid previously for the
47 installation of a modular building, manufactured home or recreational
48 vehicle on that same lot or space.
49 (212) A development impact fee ordinance shall include a process for deal-
50 ing with a project which has extraordinary impacts.
51 (223) A development impact fee ordinance shall provide for the calculation
52 of a development impact fee in accordance with generally accepted accounting
53 principles. A development impact fee shall not be deemed invalid because pay-
54 ment of the fee may result in an incidental benefit to owners or developers
55 within the service area other than the person paying the fee.
7
1 (234) A development impact fee ordinance shall include a description of
2 acceptable levels of service for system improvements.
3 (25) Any provision of a development impact fee ordinance that is inconsis-
4 tent with the requirements of this chapter shall be null and void and that
5 provision shall have no legal effect. A partial invalidity of a development
6 impact fee ordinance shall not affect the validity of the remaining portions
7 of the ordinance that are consistent with the requirements of this chapter.
8 SECTION 3. That Section 67-8207, Idaho Code, be, and the same is hereby
9 amended to read as follows:
10 67-8207. PROPORTIONATE SHARE DETERMINATION. (1) All development impact
11 fees shall be based on a reasonable and fair formula or method under which the
12 development impact fee imposed does not exceed a proportionate share of the
13 costs incurred or to be incurred by the governmental entity in the provision
14 of system improvements to serve the new development. The proportionate share
15 is the cost attributable to the new development after the governmental entity
16 considers the following: (i) any appropriate credit, offset or contribution of
17 money, dedication of land, or construction of system improvements; (ii) pay-
18 ments reasonably anticipated to be made by or as a result of a new development
19 in the form of user fees, and debt service payments;, or taxes which are dedi-
20 cated for system improvements for which development impact fees would other-
21 wise be imposed; and (iii) that portion of general tax and other revenues
22 allocated by the jurisdiction to system improvements; and (iv) all other
23 available sources of funding such system improvements.
24 (2) In determining the proportionate share of the cost of system improve-
25 ments to be paid by the developer, the following factors shall be considered
26 by the governmental entity imposing the development impact fee and accounted
27 for in the calculation of the impact fee:
28 (a) The cost of existing system improvements within the service area or
29 areas;
30 (b) The means by which existing system improvements have been financed;
31 (c) The extent to which the new development will contribute to the cost
32 of system improvements through taxation, assessment, or developer or land-
33 owner contributions, or has previously contributed to the cost of system
34 improvements through developer or landowner contributions.
35 (d) The extent to which the new development is required to contribute to
36 the cost of existing system improvements in the future.
37 (e) The extent to which the new development should be credited for pro-
38 viding system improvements, without charge to other properties within the
39 service area or areas;
40 (f) Extraordinary costs, if any, incurred in serving the new development;
41 (g) The time and price differential inherent in a fair comparison of fees
42 paid at different times; and
43 (h) The availability of other sources of funding system improvements
44 including, but not limited to, user charges, general tax levies, intergov-
45 ernmental transfers, and special taxation. The governmental entity shall
46 develop a plan for alternative sources of revenue.
47 SECTION 4. That Section 67-8208, Idaho Code, be, and the same is hereby
48 amended to read as follows:
49 67-8208. CAPITAL IMPROVEMENTS PLAN. (1) Each governmental entity intend-
50 ing to impose a development impact fee shall prepare a capital improvements
51 plan. That portion of the cost of preparing a capital improvements plan which
8
1 is attributable to determining the development impact fee may be funded by a
2 one (1) time ad valorem levy which does not exceed two one-hundredths per cent
3 percent (.02%) of market value or by a surcharge imposed by ordinance on the
4 collection of a development impact fee which surcharge does not exceed the
5 development's proportionate share of the cost of preparing the plan. For gov-
6 ernmental entities required to undertake comprehensive planning pursuant to
7 chapter 65, title 67, Idaho Code, such capital improvements plan shall be pre-
8 pared and adopted according to the requirements contained in the local plan-
9 ning act, section 67-6509, Idaho Code, and shall be included as an element of
10 the comprehensive plan. The capital improvements plan shall be prepared by
11 qualified professionals in fields relating to finance, engineering, planning
12 and transportation. The persons preparing the plan shall consult with the
13 development impact fee advisory committee.
14 The capital improvements plan shall contain all of the following:
15 (a) A general description of all existing public facilities and their
16 existing deficiencies within the service area or areas of the governmental
17 entity and a reasonable estimate of all costs and a plan to develop the
18 funding resources related to curing the existing deficiencies including,
19 but not limited to, the upgrading, updating, improving, expanding or
20 replacing of such facilities to meet existing needs and usage;
21 (b) A commitment by the governmental entity to use other available
22 sources of revenue to cure existing system deficiencies where practical;
23 (c) An analysis of the total capacity, the level of current usage, and
24 commitments for usage of capacity of existing capital improvements, which
25 shall be prepared by a qualified professional planner or by a qualified
26 engineer licensed to perform engineering services in this state;
27 (d) A description of the land use assumptions by the government entity;
28 (e) A definitive table establishing the specific level or quantity of
29 use, consumption, generation or discharge of a service unit for each cate-
30 gory of system improvements and an equivalency or conversion table estab-
31 lishing the ratio of a service unit to various types of land uses, includ-
32 ing residential, commercial, agricultural and industrial;
33 (f) A description of all system improvements and their costs necessitated
34 by and attributable to new development in the service area based on the
35 approved land use assumptions, to provide a level of service not to exceed
36 the level of service adopted in the development impact fee ordinance;
37 (g) The total number of service units necessitated by and attributable to
38 new development within the service area based on the approved land use
39 assumptions and calculated in accordance with generally accepted engineer-
40 ing or planning criteria;
41 (h) The projected demand for system improvements required by new service
42 units projected over a reasonable period of time not to exceed twenty (20)
43 years;
44 (i) Identification of all sources and levels of funding available to the
45 governmental entity for the financing of the system improvements;
46 (j) If the proposed system improvements include the improvement of public
47 facilities under the jurisdiction of the state of Idaho or another govern-
48 mental entity, then an agreement between governmental entities shall spec-
49 ify the reasonable share of funding by each unit, provided the governmen-
50 tal entity authorized to impose development impact fees shall not assume
51 more than its reasonable share of funding joint improvements, nor shall
52 the agreement permit expenditure of development impact fees by a govern-
53 mental entity which is not authorized to impose development impact fees
54 unless such expenditure is pursuant to a developer agreement under section
55 67-8214, Idaho Code; and
9
1 (k) A schedule setting forth estimated dates for commencing and complet-
2 ing construction of all improvements identified in the capital improve-
3 ments plan.
4 (2) The governmental entity imposing a development impact fee shall
5 update the capital improvements plan at least once every five (5) years. The
6 five (5) year period shall commence from the date of the original adoption of
7 the capital improvements plan. The updating of the capital improvements plan
8 shall be made in accordance with procedures set forth in section 67-8206,
9 Idaho Code.
10 (3) The governmental entity must annually adopt a capital budget.
11 (4) The capital improvements plan shall be updated in conformance with
12 the provisions of subsection (2) of this section each time a governmental
13 entity proposes the amendment, modification or adoption of a development
14 impact fee ordinance.
15 SECTION 5. That Section 67-8209, Idaho Code, be, and the same is hereby
16 amended to read as follows:
17 67-8209. CREDITS. (1) In the calculation of development impact fees for a
18 particular project, credit or reimbursement shall be given for:
19 (a) Tthe present value of any construction of system improvements or con-
20 tribution or dedication of land or money required by a governmental entity
21 from a developer for system improvements of the category for which the
22 development impact fee is being collected, including such system improve-
23 ments paid for pursuant to a local improvement district; and
24 (b) The present value of all tax and user fee revenue generated by the
25 developer and used by the governmental agency for system improvements of
26 the category for which the development impact fee is being collected.
27 Credit or reimbursement shall not be given for project improvements.
28 (2) If a developer is required to construct, fund or contribute system
29 improvements in excess of the development project's proportionate share of
30 system improvement costs, including such system improvements paid for pursuant
31 to a local improvement district, the developer shall receive a credit on
32 future impact fees or be reimbursed at the developer's choice for such excess
33 construction, funding or contribution from development impact fees paid by
34 future development which impacts the system improvements constructed, funded
35 or contributed by the developer(s) or fee payer unless the excess of the pro-
36 portionate share is funded by taxes or user fees generated by the developer,
37 in which case the developer shall only be entitled to a credit against future
38 impact fees.
39 (3) If credit or reimbursement is due to the developer pursuant to this
40 section, the governmental entity shall enter into a written agreement with the
41 fee payer, negotiated in good faith, prior to the construction, funding or
42 contribution. The agreement shall provide for the amount of credit or the
43 amount, time and form of reimbursement.
44 SECTION 6. That Section 67-8210, Idaho Code, be, and the same is hereby
45 amended to read as follows:
46 67-8210. EARMARKING AND EXPENDITURE OF COLLECTED DEVELOPMENT IMPACT FEES.
47 (1) An ordinance imposing development impact fees shall provide that all
48 development impact fee funds shall be maintained in one (1) or more interest-
49 bearing accounts within the capital projects fund. Accounting records shall be
50 maintained for each category of system improvements and the service area in
51 which the fees are collected. Interest earned on development impact fees shall
10
1 be considered funds of the account on which it is earned, and not funds sub-
2 ject to section 57-127, Idaho Code, and shall be subject to all restrictions
3 placed on the use of development impact fees under the provisions of this
4 chapter.
5 (2) Expenditures of development impact fees shall be made only for the
6 category of system improvements and within or for the benefit of the service
7 area for which the development impact fee was imposed as shown by the capital
8 improvements plan and as authorized in this chapter. Development impact fees
9 shall not be used for any purpose other than system improvement costs to cre-
10 ate additional improvements to serve new growth.
11 (3) As part of its annual audit process, a governmental entity shall pre-
12 pare an annual report:
13 (a) Ddescribing the amount of all development impact fees collected,
14 appropriated, or spent during the preceding year by category of public
15 facility and service area; and
16 (b) Describing the percentage of tax and revenues other than impact fees
17 collected, appropriated or spent for system improvements during the pre-
18 ceding year by category of public facility and service area.
19 (4) Collected development impact fees must be expended within five (5)
20 years from the date they were collected, on a first-in, first-out (FIFO)
21 basis, except that the development impact fees collected for wastewater col-
22 lection, treatment and disposal and drainage facilities must be expended
23 within twenty (20) years. Any funds not expended within the prescribed times
24 shall be refunded pursuant to section 67-8211, Idaho Code. A governmental
25 entity may hold the fees for longer than five (5) years if it identifies, in
26 writing:
27 (a) A reasonable cause why the fees should be held longer than five (5)
28 years; and
29 (b) An anticipated date by which the fees will be expended but in no
30 event greater than eight (8) years from the date they were collected.
31 SECTION 7. That Section 67-8211, Idaho Code, be, and the same is hereby
32 amended to read as follows:
33 67-8211. REFUNDS. (1) Any governmental entity which adopts a development
34 impact fee ordinance shall provide for refunds upon the request of an owner of
35 property on which a development impact fee has been paid if:
36 (a) Service is available but never provided;
37 (b) A building permit or permit for installation of a manufactured home
38 is denied or abandoned; or
39 (c) The governmental entity, after collecting the fee when service is not
40 available, has failed to appropriate and expend the collected development
41 impact fees pursuant to section 67-8210(4), Idaho Code; or
42 (d) The fee payer pays a fee under protest and a subsequent review of the
43 fee paid or the completion of an individual assessment determines that the
44 fee paid exceeded the proportionate share to which the governmental entity
45 was entitled to receive.
46 (2) When the right to a refund exists, the governmental entity is
47 required to send a refund to the owner of record within ninety (90) days after
48 it is determined by the governmental entity that a refund is due.
49 (3) A refund shall include a refund of interest at one-half (1/2) the
50 legal rate provided for in section 28-22-104, Idaho Code, from the date on
51 which the fee was originally paid.
52 (4) Any person entitled to a refund shall have standing to sue for a
53 refund under the provisions of this chapter if there has not been a timely
11
1 payment of a refund pursuant to subsection (2) of this section.
2 SECTION 8. That Section 67-8213, Idaho Code, be, and the same is hereby
3 amended to read as follows:
4 67-8213. COLLECTION. A governmental entity may provide in a development
5 impact fee ordinance the means for collection of development impact fees,
6 including, but not limited to:
7 (1) Additions to the fee for reasonable interest and penalties for non-
8 payment or late payment;
9 (2) Withholding of the building permit or other governmental approval
10 until the development impact fee is paid;
11 (3) Withholding of utility services until the development impact fee is
12 paid; and
13 (4) Imposing liens for failure to timely pay a development impact fee
14 following procedures contained in chapter 5, title 45, Idaho Code.
15 A governmental entity that discovers an error in its impact fee formula
16 that results in assessment or payment of more than a proportionate share
17 shall, at the time of assessment on a case by case basis, adjust the fee to
18 collect no more than a proportionate share or discontinue the collection of
19 any impact fees until the error is corrected by ordinance.
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature Second Regular Session - 2002
Moved by Mader
Seconded by Cuddy
IN THE HOUSE OF REPRESENTATIVES
HOUSE AMENDMENT TO H.B. NO. 607
1 AMENDMENT TO SECTION 2
2 On page 4 of the printed bill, in line 36, delete "provide" and
3 insert: "allow the developer"; and in line 37, following "developer," insert:
4 "to provide".
Moved by Stegner
Seconded by Thorne
IN THE SENATE
SENATE AMENDMENT TO H.B. NO. 607, As Amended
5 AMENDMENTS TO SECTION 5
6 On page 9 of the engrossed bill, in line 18, delete ":"; in line 19,
7 delete "(a) Tthe" and insert: "the"; in line 23, delete "; and"; delete
8 lines 24 through 26, and insert: "."; following line 27, insert:
9 "(2) In the calculation of development impact fees for a particular proj-
10 ect, credit shall be given for the present value of all tax and user fee reve-
11 nue generated by the developer, within the service area where the impact fee
12 is being assessed and used by the governmental agency for system improvements
13 of the category for which the development impact fee is being collected. If
14 the amount of credit exceeds the proportionate share for the particular proj-
15 ect, the developer shall receive a credit on future impact fees for the amount
16 in excess of the proportionate share. The credit may be applied by the develo-
17 per as an offset against future impact fees only in the service area where the
18 credit was generated.";
19 in line 28, delete "2" and insert: "23"; in line 35, following "payer" delete
20 the remainder of the line; delete lines 36 and 37; and in line 38, delete
21 "impact fees"; and in line 39, delete "3" and insert: "34".
Moved by Stegner
Seconded by Thorne
IN THE SENATE
SENATE AMENDMENT TO H.B. NO. 607, As Amended
22 AMENDMENT TO THE BILL
23 On page 11 of the engrossed bill, following line 19, insert:
24 "SECTION 9. This act shall be in full force and effect on and after July
25 1, 2002; provided however, that governmental agencies using an alternative
26 methodology under the provisions of section 67-8204(15)(b), Idaho Code, as
27 said section existed immediately prior to the effective date of this act,
28 shall have until March 31, 2003, to implement a capital improvement plan-based
|||
2
1 impact fee program pursuant to section 67-8204, Idaho Code, as amended pursu-
2 ant to this act.".
3 CORRECTION TO TITLE
4 On page 1, in line 12, delete "AND"; and in line 13, following "FEES"
5 insert: "; AND PROVIDING AN EFFECTIVE DATE AND PROCEDURE TO GOVERN IMPLEMENTA-
6 TION".
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature Second Regular Session - 2002
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 607, As Amended, As Amended in the Senate
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO DEVELOPMENT IMPACT FEES; AMENDING SECTION 67-8203, IDAHO CODE, TO
3 FURTHER DEFINE TERMS AND TO MAKE A TECHNICAL CORRECTION; AMENDING SECTION
4 67-8204, IDAHO CODE, TO GOVERN THE PROCESS FOR INDIVIDUAL ASSESSMENT OF
5 PROPORTIONATE SHARE; AMENDING SECTION 67-8207, IDAHO CODE, TO INCLUDE TAX
6 REVENUES IN DETERMINATION OF PROPORTIONATE SHARE; AMENDING SECTION
7 67-8208, IDAHO CODE, TO REQUIRE THE UPDATE OF THE CAPITAL IMPROVEMENTS
8 PLAN AND TO MAKE A TECHNICAL CORRECTION; AMENDING SECTION 67-8209, IDAHO
9 CODE, TO GOVERN CREDITS TO BE CONSIDERED; AMENDING SECTION 67-8210, IDAHO
10 CODE, TO PROVIDE FOR REPORT OF TAX AND REVENUES INVESTED IN SYSTEM
11 IMPROVEMENTS; AMENDING SECTION 67-8211, IDAHO CODE, TO PROVIDE ADDITIONAL
12 GROUNDS FOR REFUNDS; AMENDING SECTION 67-8213, IDAHO CODE, TO PROVIDE FOR
13 ADJUSTMENTS OF PROPORTIONATE SHARE OF IMPACT FEES; AND PROVIDING AN EFFEC-
14 TIVE DATE AND PROCEDURE TO GOVERN IMPLEMENTATION.
15 Be It Enacted by the Legislature of the State of Idaho:
16 SECTION 1. That Section 67-8203, Idaho Code, be, and the same is hereby
17 amended to read as follows:
18 67-8203. DEFINITIONS. As used in this chapter:
19 (1) "Affordable housing" means housing affordable to families whose
20 incomes do not exceed eighty percent (80%) of the median income for the ser-
21 vice area or areas within the jurisdiction of the governmental entity.
22 (2) "Appropriate" means to legally obligate by contract or otherwise com-
23 mit to use by appropriation or other official act of a governmental entity.
24 (3) "Capital improvements" means improvements with a useful life of ten
25 (10) years or more, by new construction or other action, which increase the
26 service capacity of a public facility.
27 (4) "Capital improvement element" means a component of a comprehensive
28 plan adopted pursuant to chapter 65, title 67, Idaho Code, which component
29 meets the requirements of a capital improvements plan pursuant to this chap-
30 ter.
31 (5) "Capital improvements plan" means a plan adopted pursuant to this
32 chapter that identifies capital improvements for which development impact fees
33 may be used as a funding source.
34 (6) "Developer" means any person or legal entity undertaking development,
35 including a party that undertakes the subdivision of property pursuant to sec-
36 tions 50-1301 through 50-1334, Idaho Code.
37 (7) "Development" means any construction or installation of a building or
38 structure, or any change in use of a building or structure, or any change in
39 the use, character or appearance of land, which creates additional demand and
40 need for public facilities or the subdivision of property that would permit
41 any change in the use, character or appearance of land.
42 (8) "Development approval" means any written authorization from a govern-
43 mental entity which authorizes the commencement of a development.
2
1 (9) "Development impact fee" means a payment of money imposed as a condi-
2 tion of development approval to pay for a proportionate share of the cost of
3 system improvements needed to serve development. This term is also referred to
4 as an impact fee in this chapter. The term does not include the following:
5 (a) A charge or fee to pay the administrative, plan review, or inspection
6 costs associated with permits required for development;
7 (b) Connection or hookup charges;
8 (c) Availability charges for drainage, sewer, water, or transportation
9 charges for services provided directly to the development; or
10 (d) Amounts collected from a developer in a transaction in which the gov-
11 ernmental entity has incurred expenses in constructing capital improve-
12 ments for the development if the owner or developer has agreed to be
13 financially responsible for the construction or installation of the capi-
14 tal improvements, unless a written agreement is made pursuant to section
15 67-8209(3), Idaho Code, for credit or reimbursement.
16 (10) "Development requirement" means a requirement attached to a develop-
17 mental approval or other governmental action approving or authorizing a par-
18 ticular development project including, but not limited to, a rezoning, which
19 requirement compels the payment, dedication or contribution of goods, ser-
20 vices, land, or money as a condition of approval.
21 (11) "Extraordinary costs" means those costs incurred as a result of an
22 extraordinary impact.
23 (12) "Extraordinary impact" means an impact which is reasonably determined
24 by the governmental entity to: (i) result in the need for system improvements,
25 the cost of which will significantly exceed the sum of the development impact
26 fees to be generated from the project or the sum agreed to be paid pursuant to
27 a development agreement as allowed by section 67-8214(2), Idaho Code, or (ii)
28 result in the need for system improvements which are not identified in the
29 capital improvements plan.
30 (13) "Fee payer" means that person who pays or is required to pay a devel-
31 opment impact fee.
32 (14) "Governmental entity" means any unit of local government that is
33 empowered in this enabling legislation to adopt a development impact fee ordi-
34 nance.
35 (15) "Impact fee." See development impact fee.
36 (16) "Land use assumptions" means a description of the service area and
37 projections of land uses, densities, intensities, and population in the ser-
38 vice area over at least a twenty (20) year period.
39 (17) "Level of service" means a measure of the relationship between ser-
40 vice capacity and service demand for public facilities.
41 (18) "Manufactured home" means a structure, constructed according to
42 HUD/FHA mobile home construction and safety standards, transportable in one
43 (1) or more sections, which, in the traveling mode, is eight (8) feet or more
44 in width or is forty (40) body feet or more in length, or when erected on
45 site, is three hundred twenty (320) or more square feet, and which is built on
46 a permanent chassis and designed to be used as a dwelling with or without a
47 permanent foundation when connected to the required utilities, and includes
48 the plumbing, heating, air conditioning, and electrical systems contained
49 therein, except that such term shall include any structure which meets all the
50 requirements of this subsection except the size requirements and with respect
51 to which the manufacturer voluntarily files a certification required by the
52 secretary of housing and urban development and complies with the standards
53 established under 42 U.S.C. 5401, et seq.
54 (19) "Modular building" means any building or building component, other
55 than a manufactured home, which is constructed according to standards con-
3
1 tained in the Uniform Building Code, as adopted or any amendments thereto,
2 which is of closed construction and is either entirely or substantially pre-
3 fabricated or assembled at a place other than the building site.
4 (20) "Present value" means the total current monetary value of past, pres-
5 ent, or future payments, contributions or dedications of goods, services,
6 materials, construction or money.
7 (21) "Project" means a particular development on an identified parcel of
8 land.
9 (22) "Project improvements" means site improvements and facilities that
10 are planned and designed to provide service for a particular development proj-
11 ect and that are necessary for the use and convenience of the occupants or
12 users of the project.
13 (23) "Proportionate share" means that portion of the cost of system
14 improvements determined pursuant to section 67-8207, Idaho Code, which reason-
15 ably relates to the service demands and needs of the project.
16 (24) "Public facilities" means:
17 (a) Water supply production, treatment, storage and distribution facili-
18 ties;
19 (b) Wastewater collection, treatment and disposal facilities;
20 (c) Roads, streets and bridges, including rights-of-way, traffic signals,
21 landscaping and any local components of state or federal highways;
22 (d) Storm water collection, retention, detention, treatment and disposal
23 facilities, flood control facilities, and bank and shore protection and
24 enhancement improvements;
25 (e) Parks, open space and recreation areas, and related capital improve-
26 ments; and
27 (f) Public safety facilities, including law enforcement, fire, emergency
28 medical and rescue and street lighting facilities.
29 (25) "Recreational vehicle" means a vehicular type unit primarily designed
30 as temporary quarters for recreational, camping, or travel use, which either
31 has its own motive power or is mounted on or drawn by another vehicle.
32 (26) "Service area" means any defined geographic area identified by a gov-
33 ernmental entity or by intergovernmental agreement in which specific public
34 facilities provide service to development within the area defined, on the
35 basis of sound planning or engineering principles or both.
36 (27) "Service unit" means a standardized measure of consumption, use, gen-
37 eration or discharge attributable to an individual unit of development calcu-
38 lated in accordance with generally accepted engineering or planning standards
39 for a particular category of capital improvements.
40 (28) "System improvements," in contrast to project improvements, means
41 capital improvements to public facilities which are designed to provide ser-
42 vice to a service area including, without limitation, the type of improvements
43 described in section 50-1703, Idaho Code.
44 (29) "System improvement costs" means costs incurred for construction or
45 reconstruction of system improvements, including design, acquisition, engi-
46 neering and other costs attributable thereto, and also including, without lim-
47 itation, the type of costs described in section 50-1702(h), Idaho Code, to
48 provide additional public facilities needed to serve new growth and develop-
49 ment. For clarification, system improvement costs do not include:
50 (a) Construction, acquisition or expansion of public facilities other
51 than capital improvements identified in the capital improvements plan;
52 (b) Repair, operation or maintenance of existing or new capital improve-
53 ments;
54 (c) Upgrading, updating, expanding or replacing existing capital improve-
55 ments to serve existing development in order to meet stricter safety,
4
1 efficiency, environmental or regulatory standards;
2 (d) Upgrading, updating, expanding or replacing existing capital improve-
3 ments to provide better service to existing development;
4 (e) Administrative and operating costs of the governmental entity unless
5 such costs are attributable to development of the capital improvement
6 plan, as provided in section 67-8208, Idaho Code; or
7 (f) Principal payments and interest or other finance charges on bonds or
8 other indebtedness except financial obligations issued by or on behalf of
9 the governmental entity to finance capital improvements identified in the
10 capital improvements plan.
11 SECTION 2. That Section 67-8204, Idaho Code, be, and the same is hereby
12 amended to read as follows:
13 67-8204. MINIMUM STANDARDS AND REQUIREMENTS FOR DEVELOPMENT IMPACT FEES
14 ORDINANCES. Governmental entities which comply with the requirements of this
15 chapter may impose by ordinance development impact fees as a condition of
16 development approval on all developments.
17 (1) A development impact fee shall not exceed a proportionate share of
18 the cost of system improvements determined in accordance with section 67-8207,
19 Idaho Code. Development impact fees shall be based on actual system improve-
20 ment costs or reasonable estimates of such costs.
21 (2) A development impact fee shall be calculated on the basis of levels
22 of service for public facilities adopted in the development impact fee ordi-
23 nance of the governmental entity that are applicable to existing development
24 as well as new growth and development. The construction, improvement, expan-
25 sion or enlargement of new or existing public facilities for which a develop-
26 ment impact fee is imposed must be attributable to the capacity demands gener-
27 ated by the new development.
28 (3) A development impact fee ordinance shall specify the point in the
29 development process at which the development impact fee shall be collected.
30 The development impact fee may be collected no earlier than the commencement
31 of construction of the development, or the issuance of a building permit or a
32 manufactured home installation permit, or as may be agreed by the developer
33 and the governmental entity.
34 (4) A development impact fee ordinance shall be adopted in accordance
35 with the procedural requirements of section 67-8206, Idaho Code.
36 (5) A development impact fee ordinance shall include a provision permit-
37 ting process whereby the governmental agency shall allow the developer, upon
38 request by the developer, to provide a written individual assessments of the
39 proportionate share of development impact fees under the guidelines estab-
40 lished in the ordinance by this chapter which shall be set forth in the ordi-
41 nance. The individual assessment process shall permit consideration of stud-
42 ies, data, and any other relevant information submitted by the developer to
43 adjust the amount of the fee. The decision by the governmental agency on an
44 application for an individual assessment shall include an explanation of the
45 calculation of the impact fee, including an explanation of factors considered
46 under section 67-8207, Idaho Code, and shall specify the system improvement(s)
47 for which the impact fee is intended to be used.
48 (6) A development impact fee ordinance shall provide a process whereby a
49 developer shall receive, upon request, a written certification of the develop-
50 ment impact fee schedule or individual assessment for a particular project,
51 which shall establish the development impact fee for a period of one (1) year
52 from the date of the certification so long as there is no material change to
53 the particular project as identified in the individual assessment application,
5
1 or the impact fee schedule. The certification shall include an explanation of
2 the calculation of the impact fee including an explanation of factors consid-
3 ered under section 67-8207, Idaho Code. The certification shall also specify
4 the system improvement(s) for which the impact fee is intended to be used.
5 (7) A development impact fee ordinance shall include a provision for cre-
6 dits in accordance with the requirements of section 67-8209, Idaho Code.
7 (8) A development impact fee ordinance shall include a provision prohib-
8 iting the expenditure of development impact fees except in accordance with the
9 requirements of section 67-8210, Idaho Code.
10 (9) A development impact fee ordinance may provide for the imposition of
11 a development impact fee for system improvement costs incurred subsequent to
12 adoption of the ordinance to the extent that new growth and development will
13 be served by the system improvements.
14 (10) A development impact fee ordinance may exempt all or part of a par-
15 ticular development project from development impact fees provided that such
16 project is determined to create affordable housing, provided that the public
17 policy which supports the exemption is contained in the governmental entity's
18 comprehensive plan and provided that the exempt development's proportionate
19 share of system improvements is funded through a revenue source other than
20 development impact fees.
21 (11) A development impact fee ordinance shall provide that development
22 impact fees shall only be spent for the category of system improvements for
23 which the fees were collected and either within or for the benefit of the ser-
24 vice area in which the project is located.
25 (12) A development impact fee ordinance shall provide for a refund of
26 development impact fees in accordance with the requirements of section
27 67-8211, Idaho Code.
28 (13) A development impact fee ordinance shall establish for a procedure
29 for timely processing of applications for determination by the governmental
30 entity regarding development impact fees applicable to a project, individual
31 assessment of development impact fees, credits or reimbursements to be allowed
32 or paid under section 67-8209, Idaho Code, and extraordinary impact.
33 (14) A development impact fee ordinance shall specify when an application
34 for an individual assessment of development impact fees shall be permitted to
35 be made by a developer or fee payer. An application for an individual assess-
36 ment of development impact fees shall be permitted sufficiently in advance of
37 the time that the developer or fee payer may seek a building permit or related
38 permits so that the issuance of a building permit or related permits will not
39 be delayed.
40 (15) A development impact fee ordinance shall provide for appeals regard-
41 ing development impact fees in accordance with the requirements of section
42 67-8212, Idaho Code.
43 (156) A development impact fee ordinance must provide a detailed descrip-
44 tion of the methodology by which costs per service unit are determined. The
45 following methodologies shall be acceptable: (a) The development impact fee
46 per service unit may not exceed the amount determined by dividing the costs of
47 the capital improvements described in section 67-8208(1)(f), Idaho Code, by
48 the total number of projected service units described in section
49 67-8208(1)(g), Idaho Code. If the number of new service units projected over a
50 reasonable period of time is less than the total number of new service units
51 shown by the approved land use assumptions at full development of the service
52 area, the maximum impact fee per service unit shall be calculated by dividing
53 the costs of the part of the capital improvements necessitated by and attrib-
54 utable to the projected new service units described in section 67-8208(1)(g),
55 Idaho Code, by the total projected new service units described in that sec-
6
1 tion.
2 (b) An alternative methodology may be used by a governmental entity pro-
3 vided that the governmental entity can demonstrate that such alternative
4 methodology accurately calculates the proportionate share of the impact of
5 the proposed development on the capacity of system improvements in terms
6 of generally accepted engineering and planning principles.
7 (167) A development impact fee ordinance shall include a schedule of
8 development impact fees for various land uses per unit of development. The
9 ordinance shall provide that a developer shall have the right to elect to pay
10 a project's proportionate share of system improvement costs by payment of
11 development impact fees according to the fee schedule as full and complete
12 payment of the development project's proportionate share of system improvement
13 costs, except as provided in section 67-8214(3), Idaho Code.
14 (178) After payment of the development impact fees or execution of an
15 agreement for payment of development impact fees, additional development
16 impact fees or increases in fees may not be assessed unless the number of ser-
17 vice units increases or the scope or schedule of the development changes. In
18 the event of an increase in the number of service units or schedule of the
19 development changes, the additional development impact fees to be imposed are
20 limited to the amount attributable to the additional service units or change
21 in scope of the development.
22 (189) No system for the calculation of development impact fees shall be
23 adopted which subjects any development to double payment of impact fees.
24 (1920) A development impact fee ordinance shall exempt from development
25 impact fees the following activities:
26 (a) Rebuilding the same amount of floor space of a structure which was
27 destroyed by fire or other catastrophe, providing the structure is rebuilt
28 and ready for occupancy within two (2) years of its destruction;
29 (b) Remodeling or repairing a structure which does not increase the num-
30 ber of service units;
31 (c) Replacing a residential unit, including a manufactured home, with
32 another residential unit on the same lot, provided that the number of ser-
33 vice units does not increase;
34 (d) Placing a temporary construction trailer or office on a lot;
35 (e) Constructing an addition on a residential structure which does not
36 increase the number of service units; and
37 (f) Adding uses that are typically accessory to residential uses, such as
38 tennis courts or clubhouse, unless it can be clearly demonstrated that the
39 use creates a significant impact on the capacity of system improvements.
40 (201) A development impact fee will be assessed for installation of a mod-
41 ular building, manufactured home or recreational vehicle unless the fee payer
42 can demonstrate by documentation such as utility bills and tax records,
43 either:
44 (a) That a modular building, manufactured home or recreational vehicle
45 was legally in place on the lot or space prior to the effective date of
46 the development impact fee ordinance; or
47 (b) That a development impact fee has been paid previously for the
48 installation of a modular building, manufactured home or recreational
49 vehicle on that same lot or space.
50 (212) A development impact fee ordinance shall include a process for deal-
51 ing with a project which has extraordinary impacts.
52 (223) A development impact fee ordinance shall provide for the calculation
53 of a development impact fee in accordance with generally accepted accounting
54 principles. A development impact fee shall not be deemed invalid because pay-
55 ment of the fee may result in an incidental benefit to owners or developers
7
1 within the service area other than the person paying the fee.
2 (234) A development impact fee ordinance shall include a description of
3 acceptable levels of service for system improvements.
4 (25) Any provision of a development impact fee ordinance that is inconsis-
5 tent with the requirements of this chapter shall be null and void and that
6 provision shall have no legal effect. A partial invalidity of a development
7 impact fee ordinance shall not affect the validity of the remaining portions
8 of the ordinance that are consistent with the requirements of this chapter.
9 SECTION 3. That Section 67-8207, Idaho Code, be, and the same is hereby
10 amended to read as follows:
11 67-8207. PROPORTIONATE SHARE DETERMINATION. (1) All development impact
12 fees shall be based on a reasonable and fair formula or method under which the
13 development impact fee imposed does not exceed a proportionate share of the
14 costs incurred or to be incurred by the governmental entity in the provision
15 of system improvements to serve the new development. The proportionate share
16 is the cost attributable to the new development after the governmental entity
17 considers the following: (i) any appropriate credit, offset or contribution of
18 money, dedication of land, or construction of system improvements; (ii) pay-
19 ments reasonably anticipated to be made by or as a result of a new development
20 in the form of user fees, and debt service payments;, or taxes which are dedi-
21 cated for system improvements for which development impact fees would other-
22 wise be imposed; and (iii) that portion of general tax and other revenues
23 allocated by the jurisdiction to system improvements; and (iv) all other
24 available sources of funding such system improvements.
25 (2) In determining the proportionate share of the cost of system improve-
26 ments to be paid by the developer, the following factors shall be considered
27 by the governmental entity imposing the development impact fee and accounted
28 for in the calculation of the impact fee:
29 (a) The cost of existing system improvements within the service area or
30 areas;
31 (b) The means by which existing system improvements have been financed;
32 (c) The extent to which the new development will contribute to the cost
33 of system improvements through taxation, assessment, or developer or land-
34 owner contributions, or has previously contributed to the cost of system
35 improvements through developer or landowner contributions.
36 (d) The extent to which the new development is required to contribute to
37 the cost of existing system improvements in the future.
38 (e) The extent to which the new development should be credited for pro-
39 viding system improvements, without charge to other properties within the
40 service area or areas;
41 (f) Extraordinary costs, if any, incurred in serving the new development;
42 (g) The time and price differential inherent in a fair comparison of fees
43 paid at different times; and
44 (h) The availability of other sources of funding system improvements
45 including, but not limited to, user charges, general tax levies, intergov-
46 ernmental transfers, and special taxation. The governmental entity shall
47 develop a plan for alternative sources of revenue.
48 SECTION 4. That Section 67-8208, Idaho Code, be, and the same is hereby
49 amended to read as follows:
50 67-8208. CAPITAL IMPROVEMENTS PLAN. (1) Each governmental entity intend-
51 ing to impose a development impact fee shall prepare a capital improvements
8
1 plan. That portion of the cost of preparing a capital improvements plan which
2 is attributable to determining the development impact fee may be funded by a
3 one (1) time ad valorem levy which does not exceed two one-hundredths per cent
4 percent (.02%) of market value or by a surcharge imposed by ordinance on the
5 collection of a development impact fee which surcharge does not exceed the
6 development's proportionate share of the cost of preparing the plan. For gov-
7 ernmental entities required to undertake comprehensive planning pursuant to
8 chapter 65, title 67, Idaho Code, such capital improvements plan shall be pre-
9 pared and adopted according to the requirements contained in the local plan-
10 ning act, section 67-6509, Idaho Code, and shall be included as an element of
11 the comprehensive plan. The capital improvements plan shall be prepared by
12 qualified professionals in fields relating to finance, engineering, planning
13 and transportation. The persons preparing the plan shall consult with the
14 development impact fee advisory committee.
15 The capital improvements plan shall contain all of the following:
16 (a) A general description of all existing public facilities and their
17 existing deficiencies within the service area or areas of the governmental
18 entity and a reasonable estimate of all costs and a plan to develop the
19 funding resources related to curing the existing deficiencies including,
20 but not limited to, the upgrading, updating, improving, expanding or
21 replacing of such facilities to meet existing needs and usage;
22 (b) A commitment by the governmental entity to use other available
23 sources of revenue to cure existing system deficiencies where practical;
24 (c) An analysis of the total capacity, the level of current usage, and
25 commitments for usage of capacity of existing capital improvements, which
26 shall be prepared by a qualified professional planner or by a qualified
27 engineer licensed to perform engineering services in this state;
28 (d) A description of the land use assumptions by the government entity;
29 (e) A definitive table establishing the specific level or quantity of
30 use, consumption, generation or discharge of a service unit for each cate-
31 gory of system improvements and an equivalency or conversion table estab-
32 lishing the ratio of a service unit to various types of land uses, includ-
33 ing residential, commercial, agricultural and industrial;
34 (f) A description of all system improvements and their costs necessitated
35 by and attributable to new development in the service area based on the
36 approved land use assumptions, to provide a level of service not to exceed
37 the level of service adopted in the development impact fee ordinance;
38 (g) The total number of service units necessitated by and attributable to
39 new development within the service area based on the approved land use
40 assumptions and calculated in accordance with generally accepted engineer-
41 ing or planning criteria;
42 (h) The projected demand for system improvements required by new service
43 units projected over a reasonable period of time not to exceed twenty (20)
44 years;
45 (i) Identification of all sources and levels of funding available to the
46 governmental entity for the financing of the system improvements;
47 (j) If the proposed system improvements include the improvement of public
48 facilities under the jurisdiction of the state of Idaho or another govern-
49 mental entity, then an agreement between governmental entities shall spec-
50 ify the reasonable share of funding by each unit, provided the governmen-
51 tal entity authorized to impose development impact fees shall not assume
52 more than its reasonable share of funding joint improvements, nor shall
53 the agreement permit expenditure of development impact fees by a govern-
54 mental entity which is not authorized to impose development impact fees
55 unless such expenditure is pursuant to a developer agreement under section
9
1 67-8214, Idaho Code; and
2 (k) A schedule setting forth estimated dates for commencing and complet-
3 ing construction of all improvements identified in the capital improve-
4 ments plan.
5 (2) The governmental entity imposing a development impact fee shall
6 update the capital improvements plan at least once every five (5) years. The
7 five (5) year period shall commence from the date of the original adoption of
8 the capital improvements plan. The updating of the capital improvements plan
9 shall be made in accordance with procedures set forth in section 67-8206,
10 Idaho Code.
11 (3) The governmental entity must annually adopt a capital budget.
12 (4) The capital improvements plan shall be updated in conformance with
13 the provisions of subsection (2) of this section each time a governmental
14 entity proposes the amendment, modification or adoption of a development
15 impact fee ordinance.
16 SECTION 5. That Section 67-8209, Idaho Code, be, and the same is hereby
17 amended to read as follows:
18 67-8209. CREDITS. (1) In the calculation of development impact fees for a
19 particular project, credit or reimbursement shall be given for the present
20 value of any construction of system improvements or contribution or dedication
21 of land or money required by a governmental entity from a developer for system
22 improvements of the category for which the development impact fee is being
23 collected, including such system improvements paid for pursuant to a local
24 improvement district. Credit or reimbursement shall not be given for project
25 improvements.
26 (2) In the calculation of development impact fees for a particular proj-
27 ect, credit shall be given for the present value of all tax and user fee reve-
28 nue generated by the developer, within the service area where the impact fee
29 is being assessed and used by the governmental agency for system improvements
30 of the category for which the development impact fee is being collected. If
31 the amount of credit exceeds the proportionate share for the particular proj-
32 ect, the developer shall receive a credit on future impact fees for the amount
33 in excess of the proportionate share. The credit may be applied by the develo-
34 per as an offset against future impact fees only in the service area where the
35 credit was generated.
36 (23) If a developer is required to construct, fund or contribute system
37 improvements in excess of the development project's proportionate share of
38 system improvement costs, including such system improvements paid for pursuant
39 to a local improvement district, the developer shall receive a credit on
40 future impact fees or be reimbursed at the developer's choice for such excess
41 construction, funding or contribution from development impact fees paid by
42 future development which impacts the system improvements constructed, funded
43 or contributed by the developer(s) or fee payer.
44 (34) If credit or reimbursement is due to the developer pursuant to this
45 section, the governmental entity shall enter into a written agreement with the
46 fee payer, negotiated in good faith, prior to the construction, funding or
47 contribution. The agreement shall provide for the amount of credit or the
48 amount, time and form of reimbursement.
49 SECTION 6. That Section 67-8210, Idaho Code, be, and the same is hereby
50 amended to read as follows:
51 67-8210. EARMARKING AND EXPENDITURE OF COLLECTED DEVELOPMENT IMPACT FEES.
10
1 (1) An ordinance imposing development impact fees shall provide that all
2 development impact fee funds shall be maintained in one (1) or more interest-
3 bearing accounts within the capital projects fund. Accounting records shall be
4 maintained for each category of system improvements and the service area in
5 which the fees are collected. Interest earned on development impact fees shall
6 be considered funds of the account on which it is earned, and not funds sub-
7 ject to section 57-127, Idaho Code, and shall be subject to all restrictions
8 placed on the use of development impact fees under the provisions of this
9 chapter.
10 (2) Expenditures of development impact fees shall be made only for the
11 category of system improvements and within or for the benefit of the service
12 area for which the development impact fee was imposed as shown by the capital
13 improvements plan and as authorized in this chapter. Development impact fees
14 shall not be used for any purpose other than system improvement costs to cre-
15 ate additional improvements to serve new growth.
16 (3) As part of its annual audit process, a governmental entity shall pre-
17 pare an annual report:
18 (a) Ddescribing the amount of all development impact fees collected,
19 appropriated, or spent during the preceding year by category of public
20 facility and service area; and
21 (b) Describing the percentage of tax and revenues other than impact fees
22 collected, appropriated or spent for system improvements during the pre-
23 ceding year by category of public facility and service area.
24 (4) Collected development impact fees must be expended within five (5)
25 years from the date they were collected, on a first-in, first-out (FIFO)
26 basis, except that the development impact fees collected for wastewater col-
27 lection, treatment and disposal and drainage facilities must be expended
28 within twenty (20) years. Any funds not expended within the prescribed times
29 shall be refunded pursuant to section 67-8211, Idaho Code. A governmental
30 entity may hold the fees for longer than five (5) years if it identifies, in
31 writing:
32 (a) A reasonable cause why the fees should be held longer than five (5)
33 years; and
34 (b) An anticipated date by which the fees will be expended but in no
35 event greater than eight (8) years from the date they were collected.
36 SECTION 7. That Section 67-8211, Idaho Code, be, and the same is hereby
37 amended to read as follows:
38 67-8211. REFUNDS. (1) Any governmental entity which adopts a development
39 impact fee ordinance shall provide for refunds upon the request of an owner of
40 property on which a development impact fee has been paid if:
41 (a) Service is available but never provided;
42 (b) A building permit or permit for installation of a manufactured home
43 is denied or abandoned; or
44 (c) The governmental entity, after collecting the fee when service is not
45 available, has failed to appropriate and expend the collected development
46 impact fees pursuant to section 67-8210(4), Idaho Code; or
47 (d) The fee payer pays a fee under protest and a subsequent review of the
48 fee paid or the completion of an individual assessment determines that the
49 fee paid exceeded the proportionate share to which the governmental entity
50 was entitled to receive.
51 (2) When the right to a refund exists, the governmental entity is
52 required to send a refund to the owner of record within ninety (90) days after
53 it is determined by the governmental entity that a refund is due.
11
1 (3) A refund shall include a refund of interest at one-half (1/2) the
2 legal rate provided for in section 28-22-104, Idaho Code, from the date on
3 which the fee was originally paid.
4 (4) Any person entitled to a refund shall have standing to sue for a
5 refund under the provisions of this chapter if there has not been a timely
6 payment of a refund pursuant to subsection (2) of this section.
7 SECTION 8. That Section 67-8213, Idaho Code, be, and the same is hereby
8 amended to read as follows:
9 67-8213. COLLECTION. A governmental entity may provide in a development
10 impact fee ordinance the means for collection of development impact fees,
11 including, but not limited to:
12 (1) Additions to the fee for reasonable interest and penalties for non-
13 payment or late payment;
14 (2) Withholding of the building permit or other governmental approval
15 until the development impact fee is paid;
16 (3) Withholding of utility services until the development impact fee is
17 paid; and
18 (4) Imposing liens for failure to timely pay a development impact fee
19 following procedures contained in chapter 5, title 45, Idaho Code.
20 A governmental entity that discovers an error in its impact fee formula
21 that results in assessment or payment of more than a proportionate share
22 shall, at the time of assessment on a case by case basis, adjust the fee to
23 collect no more than a proportionate share or discontinue the collection of
24 any impact fees until the error is corrected by ordinance.
25 SECTION 9. This act shall be in full force and effect on and after July
26 1, 2002; provided however, that governmental agencies using an alternative
27 methodology under the provisions of section 67-8204(15)(b), Idaho Code, as
28 said section existed immediately prior to the effective date of this act,
29 shall have until March 31, 2003, to implement a capital improvement plan-based
30 impact fee program pursuant to section 67-8204, Idaho Code, as amended pursu-
31 ant to this act.
STATEMENT OF PURPOSE
RS ll8llC2
The purpose of this bill is to clarify and reemphasize that
a governmental agency that levies impact fees may not charge
a developer more than their proportionate share for system
improvements as defined by the act. It clarifies that governmental
agencies must consider all tax and user fee revenue generated
by a developer and used by the agency for system improvements
when calculating development impact fees for a particular project.
This is necessary in order to avoid charging a developer twice for
the same system improvements.
The bill further clarifies procedures for the processing of
requests to calculate proportionate share and providing refunds.
It creates additional accountability of governmental agencies
collecting development impact fees and protections for fee payers
to ensure that no more than a proportionate is imposed or collected.
The bill also clarifies the definition of a developer, and the
acceptable methodology for the calculating of development impact
fees. The act stipulates that a developer’s application for an
individual assessment may contain studies, data, and other relevant
information without restriction and that the governmental agency
shall evaluate this information in accordance with the requirements
of the act.
FISCAL IMPACT
There is no fiscal impact to the State of Idaho. This bill will not
limit a governmental agency’s ability to collect impact fees and
therefore should be revenue neutral.
CONTACT
Name: Jason Kreizenbeck
Agency:
Micron Technology, Inc
Phone: 368-4477
Name: John Eaton
Agency: Building Contractors Association of SW Idaho
Phone: 377-3550
Name: Alex LaBeau
Agency: Idaho Realtors Association
Phone: 342-3585
STATEMENT OF PURPOSE/FISCAL NOTE H 607