DATE: October 31, 2016
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Vernon Gerth, Assistant City Administrator
Paul Holzen, Director of Engineering
SUBJECT: title
Discussion Concerning Road Impact Fees (Deferred from 11-08-16)
body
Purpose
The purpose of this memorandum is to provide information to the Board of Mayor and Aldermen (BOMA) concerning a Road Impact Fee Study completed by Duncan and Associates.
Background
Road Impact Fees are fees that are assessed on new development to help pay for the capital facility cost for roadways they impose on the community. Essentially, impact fees require that each new residential or commercial project pay its pro-rata share of the cost of new infrastructure facilities required to serve the development.
On February 8, 2014 the Board of Mayor and Aldermen approved Ordinance 2014-09, “An Ordinance to Amend Various Sections of Chapter 4 of Title 16 of the Franklin Municipal Code concerning Road Impact Fees.” This Ordinance updated the arterial road impact fees included in Municipal Code and did not include collector roadways. Over the past few months, City staff has been working with Duncan Associates to evaluate the possible inclusion of collector road in the impact fee structure.
Financial Impact
Alteration of the road impact fee structure could produce additional funding capacity for capital investment projects that increase roadway capacity.
Recommendation
Road Impact Fees for both arterial and collector roadways seems to be best and fairest approach to charge new development for the transportation capital cost they impose on the community. Staff is seeking direction from the Board of Mayor and Aldermen.