Wednesday, March 28, 2007

Hailey considers capital improvements plan

Impact fees could generate $3 million in five years


By JON DUVAL
Express Staff Writer

Using a capital improvements plan to charge development impact fees will enable Hailey to keep pace with future city services and infrastructure needs, but under state law the city won't be able to use those funds to enhance existing standards of services.

The Hailey City Council met Monday to hear a report on the options provided by a proposed capital improvements plan, which would permit the city to charge development impact fees. And, as a part of his report, Paul Tischler, a fiscal, economic and planning consultant, detailed the infrastructure demands Hailey will face in the near future due to increasing expansion of the city.

"To accommodate new development over the next five years, Hailey plans to spend approximately $3.08 million on growth-related capital improvements," Tischler stated in his report.

This figure was calculated using current infrastructure standards, as state law requires that impact fees reflect the present levels of service for both existing and new developments.

In other words, the city wouldn't be allowed to charge new developments to increase the quality of their services, such as roads, parks and police, but only for expanded capacity.

"You can't charge for a Cadillac and then offer a Chevrolet," Tischler said.

To prevent this from happening, the Idaho Development Impact Fee Act requires cities to create a capital improvements plan in order to ensure that new development pays only its fair share for growth-related infrastructure.

In his report, Tischler concluded that impact fees could pay for nearly 98 percent of improvements necessitated by new development.

"Impact fee funding will provide a dedicated source of revenue that will enable the city to maintain its current infrastructure standards," he wrote.

The projected fee revenue takes into account increases in population, households and jobs, and determines their monetary effects on parks, transportation, police and fire services.

However, under Idaho law certain public facilities, for example general government buildings and libraries, are not eligible for impact fee funding, despite the fact that they will surely be utilized more with increased population.

Hailey resident Stefanie Marvel, a member of the Citizens Advisory Board working on this proposal, acknowledged the frictions arising with the continued growth.

"Development is diminishing services for those of us who already live here by spreading out services," Marvel said.

City Attorney Ned Williamson requested the council give him two weeks to go over the plan before it decides whether or not to adopt the proposed plan into the city's comprehensive plan.

The council agreed to continue discussion at its April 9 meeting.




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