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SCORECARD
Impact Fees
What are "Impact Fees"?
- "Impact Fees" are the charges jurisdictions
make for roads, water, wastewater, schools, etc. that
are charged to new developments to fund capital
improvements needed to serve new growth.
- Impact fees, where they are applied, are required
to be based on the direct need, or "impact," created by
a new development. Impact fees are supposed to be
applied to the provision of infrastructure -- roads,
schools, water and sewer, etc. - in proportion to the
impact of the new homes being built.
- As new residential construction declines, local
governments will need to be careful to budget
declines in capital development revenues.
- The land use impact fees included in this national
survey included, single-family detached, multi-family,
retail, office and industrial developments.
- Impact fees are often opposed by home builders
because they raise the price to consumers but also
because they don't think cities and school districts are
accountable and responsible on how they use the
fees.
- Home builders also point out that charges
for "water shares" and impact fees charged by the
myriad of special districts are often not included but
still must be paid.
How do your fees compare?
- Are they too high?
- Are they too low?
- Has it been too long since you have reviewed
them?
- If challenged, can they be legally justified?
- Will fee revenue declines jeopardize your capital
budgets?
- Are your fees at risk because you are using
revenues for maintenance and operations?
Utah Sample City Fees - SINGLE FAMILY,
2007
| City | Total |
Non-
Util | Roads | Water |
Sewer |
Drain | Parks | Library |
Fire | Police | Gen
Gov't | Schools | Other |
|---|
| West
Jordan | $10,964 | $5,534 |
$1,891 | $3,266 |
$2,344 | $1,478 |
$1,633 |
$-- | $247 | $105 |
$-- | $-- | $-- |
| Tooele | $9,825 |
$3,990 | $1,515 |
$4,320 |
$1,515 |
$-- | $2,125 |
$-- | $-- | $350 |
$-- | $-- | $-- |
| Draper | $8,841 |
$7,428 | $1,749 |
$1,413 | $--
| $1,161 | $3,990 |
$-- | $310 | $218 |
$-- | $-- | $-- |
| Provo | $6,413 |
$4,622 | $887 | $684 |
$1,107 |
$801 | $2,934 |
$-- | $-- | $-- |
$-- | $-- | $-- |
| Layton | $6,132 |
$5,532 | $2,399 | $600 |
$--
| $759 | $1,873 |
$-- | $501 | $-- |
$-- | $-- | $-- |
| Sandy | $5,688 |
$4,159 |
$-- | $1,529 |
$-- | $905 | $3,018 |
$-- | $165 | $71 |
$-- | $-- | $-- |
| West
Valley | $2,565 | $2,565 |
$846 | $-- |
$-- | $181 | $1,381 |
$-- | $91 | $66 |
$-- | $-- | $-- |
| Logan | $2,541 |
$1,258 | $669 | $258 |
$935 | $77 | $-- |
$-- | $118 | $34 |
$-- | $-- | $360 |
| Utah
Average | $6,610 | $4,364 |
$1,245 | $1,509 | $738 |
$670 |
$2,119 |
$-- | $179 | $106 |
$-- | $-- | $-- |
Source: National Impact Fee Survey, August 2007
Note: Single-Family Dwelling - 3 BR, 2,000 sf on
10,000 sf lot at 4 UPA & Value of $200,000
Sample Utah Fees - MULTI - FAMILY,
2007
| City | Total |
Non
Util | Roads | Water |
Sewer |
Drain | Parks | Library |
Fire | Police | Gen
Gov't | Schools | Other |
|---|
| West
Jordan | $8,066 | $3,596 |
$1,532 | $2,602 |
$1,868 | $493 |
$1,301 |
$-- | $196 | $83 |
$-- | $-- | $-- |
| Draper | $6,085 |
$5,003 | $1,202 |
$1,082 |
$-- | $1,161 | $2,463 |
$-- | $107 | $70 |
$-- |
$-- | $-- |
| Provo | $5,006 |
$3,739 | $591 | $160 |
$1,107 |
$501 | $2,647 |
$-- | $-- | $-- |
$-- | $-- |
$-- |
| Layton | $3,895 |
$3,647 | $1,508 | $248 |
$-- | $367 | $1,381 |
$-- | $391 | $-- |
$-- |
$-- | $-- |
| Tooele | $3,361 |
$1,456 | $--
| $1,523 | $382 |
$-- | $1,250 | $-- |
$-- | $206 | $-- |
$-- |
$-- |
| Sandy | $3,324 |
$2,967 | $-- | $357 |
$-- | $301 | $2,536 |
$-- | $92 | $38 |
$-- |
$-- | $-- |
| West
Valley | $1,739 | $1,739 |
$514 | $-- |
$-- | $181 | $937 |
$-- | $62 | $45 |
$-- |
$-- | $-- |
| Logan | $1,202 |
$986 | $461 | $60 |
$156 | $37 |
$-- |
$-- | $100 | $28 |
$-- | $-- | $360 |
| Utah
Average | $4,085 | $2,892 |
$967 | $862 | $878 |
$434 |
$1,788 |
$-- | $158 | $78 |
$-- | $-- | $-- |
Source: National Impact Fee Survey, August 2007
Note: Multi-Family Unit - 2 BR, 1,000 sq ft unit,
density of 12 UPA & Value of $100,000
This Weeks Leads
- Valvoline Instant Oil Change
- Ashland, Inc. trades as Valvoline Instant Oil
Change.
- The 825-unit chain operates locations
nationwide.
- The automotive service centers
occupy spaces of 1,900 sq.ft. to 2,500 sq.ft. in
freestanding locations and mixed-use and power
centers.
- Growth opportunities are sought
throughout the existing markets during the coming 18
months.
- Typical leases run 25 years.
- Preferred cotenants include Kroger and Target.
- Major competitors include Jiffy Lube.
- A land
area of 30,000 sq.ft. is required for freestanding units.
- Send site submittals to:
- Dennis Hill,
Ashland, Inc., 3499 Blazer Parkway, Lexington, KY
40509.
- Oak Express, Denver Mattress, Sofa Mart
and Bedroom Expressions
- Furniture Row Cos. trades as Oak Express,
Denver Mattress, Sofa Mart and Bedroom Expressions
at 330 locations throughout AL, AR, AZ, CO, IA, ID, IL,
IN, KS, KY, MI, MO, MT, NC, ND, NE, NM, NV, NY, OH,
OK, OR, PA, SD, TN, TX, UT, WA, WI, WV and
WY.
- The stores, four specialty concepts at one
destination, feature traditional and water beds as well
as oak furniture and occupy spaces of 55,000 sq.ft. in
freestanding locations.
- Growth opportunities are
sought throughout the existing markets during the
coming 18 months.
- A land area of four to five acres
and a vanilla shell are required.
- Preferred
cotenants include Best Buy and Home Depot.
- The
company prefers to acquire sites.
- For more
information, contact
- Chuck Retling,
- Furniture Row Cos.,
- 13333 East 37th Avenue,
- Denver, CO 80239;
- Web site:
www.furniturerow.com.
- Rocky Mountain Chocolate Factory
- Rocky Mountain Chocolate Factory, Inc. trades as
Rocky Mountain Chocolate Factory at 320 locations
nationwide and in Canada and internationally.
- The shops, offering chocolates, candies and nuts,
occupy spaces of 600 sq.ft. to 1,000 sq.ft. in malls and
entertainment, mixed-use, outlet, specialty and tourist
centers.
- Growth opportunities are sought
nationwide during the coming 18 months.
- Typical
leases run five years.
- A vanilla shell and specific
improvements are required.
- Major competitors
include Godiva.
- For more information, contact
- Kraig
Carlson or Dave Richie,
- Rocky Mountain
Chocolate Factory, Inc.,
- 265 Turner Drive,
- Durango, CO 81303.
Lehi Economic
Development/Redevelopment Coordinator
- CLOSING DATE:
September 6, 2007
- SALARY RANGE:
$49,000-$72,000 annually, plus excellent
benefits
- STATUS:
Appointed, Full Time
- DEPARTMENT:
Administration
- JOB SUMMARY:
- Under the
general supervision of the City Administrator,
performs a variety of professional, administrative and
technical duties related to planning, organizing,
directing and coordinating city-wide economic
development.
- Develops the city's economic base,
including business retention and the building of
commercial, industrial and retail sites within the
community.
- Administers the city's redevelopment
programs and initiatives and coordinates the
purchase of real property.
- MINIMUM REQUIREMENTS:
- Bachelor's degree from an
accredited college or university in public
management, business management, finance,
planning or closely related field.
- Five (5) years of
progressively responsible experience in economic
development/redevelopment or related duties.
-
Valid Utah driver's license required.
- Must pass
drug test and background check before hire.
- NOTE: A complete list of essential
functions and minimum requirements of the position
may be obtained from Lehi City Human Resources.
Lehi City will provide reasonable accommodations for
any applicant during the examination and selection
process. If you have special needs, please call 801-
768-7100, ext. 2265. For required City application,
contact Lehi City Human Resources, 153 North 100
East , Lehi, UT 84043 or download application and job
description at www.lehicity.com. Lehi City is an equal
opportunity employer and does not discriminate on
the basis of race, color, national origin, gender,
religion, age or disability.
Back-to-School Jitters?
- Looking for a sign that this year's holiday
shopping season will be slow? Check the back-to-
school numbers. With about two weeks to go in the
eight-week long season (the second most important
of the year for retailers), all indications are that sales
will be down from the past two years.
- Analysts estimate total sales growth for the 2007
back-to-school season will come in at between 3
percent or 4 percent--down from 5.9 percent in 2006
and 7.6 percent in 2005 (the highest figure in 10
years, according to ICSC).
- That's important
because the back to school shopping season, which
runs from the last week of July and goes through the
third week of September, accounts for as much as 15
percent of retailers' annual sales and is a bellwether
for the all-important holiday sales season.
- Source: Retail Traffic, 2007
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Greetings!
- Residential Impact Fees
- National
survey
- Utah Sample Cities
- How
much?
- For what?
- How do you compare?
- Back to School Jitters?
- Economic notes
- This weeks leads
Bob Springmeyer
Bonneville Research
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| Economic Notes: |
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Economic Notes:
- Productivity & Costs
- As expected, productivity growth for the second
quarter was revised higher. Nonfarm business
productivity grew 2.6% (SAAR), compared to 1.8% in
the preliminary release. This revision was due to a
higher estimate of output. Growth in unit labor costs
saw a downward revision, from 2.1% (SAAR) to 1.4%;
this was a larger downward revision than the
consensus expected. The larger-than-expected
downward revision to unit labor costs is good news
on inflation.
- ISM Non-Mfg.Index
- Business activity in the non-manufacturing sectors
of the economy held steady in August, remaining at
55.8%. This number was above both consensus
expectations and our forecast.
- Monster Employment Index
- The Monster Employment Index increased by three
points in August, clocking in at 186 compared to a
reading of 183 in July. The tone of the report was
weaker relative to previous readings for the month of
August, highlighting softening demand for labor.
- Challenger Report
- Announced job cuts increased to 79,459 in
August, their highest total since February. Financial
services accounted for nearly half of the August cuts,
primarily due to cutbacks at mortgage lenders,
especially subprime lenders. Job cuts were 22%
higher than in August 2006.
- Jobless Claims
- Underground storage of natural gas increased by
36 billion cubic feet during the week ending August
31. This figure came in well below expectations.
Inventories currently stand 10.4% above the five-year
average. This report will have a bullish effect on
prices.
- US Housing Market
- U.S. home prices fell 3.2% in the second quarter.
The sub-prime mortgage crisis and the credit crunch
that has followed in its aftermath are taking their toll
on the housing market. According to the National
Association of Realtors, the inventory of unsold
homes is at a record high.
- Pending Home Sales
- The National Association of Realtors reported that
pending home sales fell to a six-year low in July, when
market volatility was in its early stages. Economists
had expected a decline of 2 per cent, but instead
sales fell 12.2 per cent.
- Housing Foreclosures
- More than one in seven US homebuyers with
subprime loans failed to keep up with their mortgage
payments in the second quarter - the second
consecutive quarter of record growth in the rate of
foreclosures. More than 619,000 mortgagees - or 1.4
per cent of all home loans - now face the prospect of
repossession, up from 1.28 per cent in the first
quarter, according to estimates by the Mortgage
Bankers Association. Total delinquencies rose to their
highest level since 2002 to 5.12 per cent of all
mortgages. The data, for the period April to June,
cover the period before last month's credit squeeze
raised the cost of borrowing. Most of the rise in
foreclosures came from growing numbers of
seriously delinquent adjustable rate subprime, and
prime, mortgages. Adjustable rate mortgages are
home loans with interest rates that can be changed by
lenders.
- MBA Mortgage Applications Survey
- Mortgage demand increased 1.3% in the week
ending August 31. Purchase applications increased
0.4% and refinance applications increased 2.3%.
Thirty-year fixed rates are lower than ARMs indexed off
of 1-year Treasury notes, providing a strong incentive
for refinancing, although some may be waiting to see
if the Fed takes action.
- MBA Mortgage Delinquency Rates
- The delinquency rate of first mortgages increased
28 basis points to 5.12% on a quarter-to-quarter basis
in the second quarter of 2007, while the percentage of
loan foreclosures increased 12 basis points to 1.40%.
The increases in both mortgage delinquency and
foreclosure rates reflect the dismal housing market,
increases in mortgage payments from rising or
resetting mortgage rates, and recently tightened
underwriting standards.
- Chain Store Sales
- Chain store sales rose 2.9% in August. While
modest, this was the best result since January (after
adjusting for Easter distortions), and provided little
evidence of spillover from financial market turmoil.
The majority of retailers topped expectations, led by
luxury retailers. Discounters benefited from lower
energy prices.
- Oil and Gas Inventories
- Crude oil inventories fell by 3.9 million barrels for
the week ending August 31, according to the Energy
Information Administration, markedly below
expectations of a 2.2 million barrel draw. Gasoline
inventories dropped by 1.5 million barrels, relatively in
line with expectations. Refinery activity soared,
increasing to 92.1%, well above expectations.
Distillate supplies rose by 2.3 million barrels, topping
expectations. This report will exert slight downward
pressure on prices.
- Weekly Natural Gas Storage Report
- Underground storage of natural gas increased by
36 billion cubic feet during the week ending August
31. This figure came in well below expectations.
Inventories currently stand 10.4% above the five-year
average. This report will have a bullish effect on
prices.
Source: Economy.com, Financial Times 2007
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Bonneville Research is a Utah-based consulting
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research to public and private sector clients
throughout the intermountain west.
Our services include:
- Financial Analysis
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Analysis and Budgets
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Each of our studies is tailored to address the
unique needs of our clients and their communities.
If we can help, please call or email us at
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- BobSpring@BonnevilleResearch.com
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JonSpring@BonnevilleResearch.com
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