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-MEMORANDUM-
Date: October 26, 2012
To: Impact Fee Advisory Committee
From: Adrienne Keeling Al
Department of Community Services
Re: Resolution PC-10-16-12: Park Impact Fee Increase
Enclosed is the information packet for the following item. If you have questions, please contact 571-2417.
Plan Commission Resolution PC-10-16-12: Resolution to implement an increase in the Parks and
Recreation Impact Fee and ratify the scheduled fee increase for June 2013.
Please see the proposed Plan Commission Resolution regarding the scheduled increase in the Parks and
Recreation Impact Fee. The resolution recommends that the Common Council ratify and approve the
scheduled increase for months 37-48 (June 15, 2013 — June 14, 2014) as adopted in Zoning Ordinance
Section 29.07.04(a). See the excerpt below:
29.07.04(a) $1,261, during months 1-12 of the effectiveness of this PRIF Ordinance; and increase in the
following manner provided the Common Council shall approve each subsequent increase prior to
implementation, $1,387, during months 13-24 of the effectiveness of this PRIF Ordinance;
$1,526, during months 25-36 of the effectiveness of this PRIF Ordinance; $1,679, during months
37-48 of the effectiveness of this PRIF Ordinance; or$1,847, after month 48; times
Background:
The Parks & Recreation Impact Fee is derived by calculating the existing Parks' Community Level of Service,
estimated costs of new park infrastructure and the number of projected new dwelling units. The maximum
Fee calculated in the 2010-2015 Zone Improvement Plan was $2,275/unit. Establishing this maximum fee
immediately in 2010 would have involved a major increase in fees. Instead, the City adopted a more gradual
approach over the five-year life of the Impact Fee Ordinance, resulting in a maximum increase of 10% per
year with a cap of $1,847/unit starting in 2014.
Along with the scheduled gradual increase, the Council requested that each increase is reviewed prior to its
effectiveness. The Impact Fee Advisory Committee has been convened for this review prior to forwarding to
the City Council. Once Committee review is complete, this resolution should be sent back to the full Plan
Commission for adoption and forwarding to the City Council
Review Materials/Attachments:
1. Proposed Resolution PC-10-16-12
2. Relevant Pages from the 2010-2015 Zone Improvement Plan
3. Recent History of PRIF Fees Collected & Dwelling units permitted
2012-1 107.PC-10-16-12:IFAC Memo.docx
ONE CIVIC SQUARE CAR\IEI,,INDIANA 46032 317/571-2417
RESOLUTION NO. PC 10-16-12
A RESOLUTION OF THE CARMEL PLAN COMMISSION RECOMMENDING
THAT THE COMMON COUNCIL OF THE CITY OF CARMEL
RATIFY AND APPROVE THE 2013 SCHEDULED INCREASE
IN THE CARMEL PARKS AND RECREATION IMPACT FEE
WHEREAS, pursuant to the Advisory Planning Law of the State of Indiana (contained in IC
36-7-4), each unit of local government that wishes to adopt land use and zoning ordinances must first
approve by resolution a comprehensive plan for the geographic area over which it has jurisdiction; and
WHEREAS, the Carmel Comprehensive Plan (the "C3 Plan") was approved and recommended
by the Carmel Plan Commission on November 18, 2008, duly approved by resolution (as amended) of
the Common Council of the City of Carmel on May 4, 2009, with those C3 Plan amendments approved
by the Carmel Plan Commission on May 19, 2009, with May 20, 2009 becoming the effective date of
the C3 Plan, and therefore it is the official Comprehensive Plan of the City of Carmel, Indiana and Clay
Township, Indiana; and
WHEREAS, the Mayor of the City of Carmel appointed the Impact Fee Advisory Committee to
serve in an advisory capacity to assist and advise the City with regard to the adoption of an impact fee
ordinance under Indiana Code Section 36-7-4-1311; and
WHEREAS, the Impact Fee Advisory Committee met and advised the Carmel Plan
Commission to recommend to the Common Council a revised and updated Zone Improvement Plan and
Park Impact Fee (PRIF) Ordinance resulting in an amendment to the C3 Plan; and
WHEREAS, the Carmel Plan Commission duly approved, and recommended to the Common
Council, an amendment to the C3 Plan regarding a revised and updated Zone Improvement Plan on
which the PRIF Ordinance is based; and
WHEREAS, the Common Council of the City of Carmel, Indiana, pursuant to IC 36-7-4-509,
by Resolution duly approved the revised and updated Zone Improvement Plan; and
WHEREAS, the Common Council of the City of Carmel, Indiana, pursuant to IC 36-7-4-607,
duly adopted Ordinance No. Z-534-09, the current PRIF Ordinance, which is codified as Section 29.07
of the Carmel Zoning Ordinance; and
WHEREAS, Section 29.07.04(a) of the Zoning Ordinance provides that the amount of the
impact fee (times the number of equivalent dwelling units to be constructed) shall be increased during
months 37-48 of the effectiveness of the PRIF Ordinance from $1,526 to $1,679, provided the
Common Council shall approve the increase prior to implementation; and
Resolution No. PC-10-16-12
10/16/2012 DRAFT
WHEREAS, pursuant to Section 29.07.14 of the Zoning Ordinance, such increase is scheduled
to be implemented on June 15, 2013, which begins month 37 of the effectiveness of the PRIF
Ordinance;
NOW,THEREFORE,BE IT RESOLVED BY THE CARMEL PLAN COMMISSION,
THAT:
1. The Plan Commission hereby recommends to the Common Council of the City of
Carmel, Indiana that the Council should ratify and approve the scheduled increase in the amount of the
Parks and Recreation Impact Fee from $1,526, times the number of equivalent dwelling units, to
$1,679, times the number of equivalent dwelling units, during months 37-48 of the effectiveness of the
PRIF Ordinance (June 15, 2013 —June 14, 2014).
2. The Secretary is hereby directed to send a copy of this Resolution with the minutes of
this meeting to the Clerk-Treasurer of the City of Carmel for distribution to the Common Council of the
City of Carmel.
SO RESOLVED BY THE CARMEL PLAN COMMISSION this_day of , 2012.
CARMEL PLAN COMMISSION
President
ATTEST:
Secretary
Resolution No. PC-10-16-12
10/16/2012 DRAFT
CURRENT LEVEL OF SERVICE
'By comparison, the Current Level of Service (see IC 36-7-4-1302) for existing
development in the impact zone is estimated by tanking the current value of
existing park and recreation infrastructure in the Community and dividing that
value by the total number of current households.
Value of existing infrastructure:
o Land (661 Acres*'at $61,200 per acre) $ 40,453,200
*Based'on 505 acres in the Carmel Clay Park'System,(see MIG,
Inc. Master Plan Survey), plus 31 acres in Gray'Road Park
(Carmelot); 80'acres in Brookshire Golf Course; 41 acres of Monon
Greenway ROW (using a width of 66 feet, 51 acres less the
acreage attributed to the Monon Greenway and trailheads in the
MIG, Inc Master Plan Survey) and 4 acres of the recent Cool
Creek North Trail extension.
o Improvements: 71,940,000
TOTAL. $ 112,393,200
® Divided by number of current households. 32,592
Estimated Current Level of Service = $ 3,4481 unit
of existing development
COMMUNITY LEVEL`OF SERVICE
The Community Level of Service represents the maximum impact fee that may
be assessed on a new development unit (see IC 36-7-4-1301). As permitted by
IC 36-7-4-1318(b)(3), this Zone Improvement Plan establishes the Current Level
of Service as the Community Level of Service
Estimate fLCommunity Level of Service = $ 3,448! unit'
(same as Current Level of Service)
45
,40 No
COMPUTATION OF IMPACT FEE; RECOMMENDATION
Park Infrastructure Planned to
Serve New Development $ 23,750,000
a Divided by. New Development Units
Projected for 10-year Period 7,140
Cost of New Infrastructure, per New Unit $ 3,326
Less: Deductions for Central Park Bond (1,001)
Less: Deductions for County Income Tax (50)
Projected (Maximum) Impact Fee: $ 2,275/ unit
RECOMMENDATION
The impact fee is not expected to be the sole source of revenue for parks and recreation
improvements for the next 10 years Accordingly, an impact fee can be imposed at a level below
the maximum authorized by state law; this also recognizes that existing residents may utilize any
new facilities alongside the new residents upon whom the fee is imposed However, unlike some
other communities in Hamilton County, the Carmel/Clay community does not impose road impact
fees upon new development, and thus higher but still reasonable park impact fees assessed upon
new developments in Clay Township should not be unduly burdensome
As indicated above, the impact per new residential development unit over the 10-year planning
period (2010-2020) is$2,275 This is calculated by adding together the net cost of new park
development and new construction ($23,750,000), then dividing by the projected number of new
households (7,140), and then subtracting mandatory, statutory deductions that equal the
estimated amount($1,001)that an average new household•will be assessed via property taxes to
service the debt for the current park bond, as well as the estimated amount ($50)that occupants
of the average new residence will pay via the County Option Income Tax to support other new
park development during the 10 year planning period
It should be noted that the current Carmel/Clay Park and Recreation Impact Fee is only$1,261
per dwelling unit—this is less than was permitted under state law when this fee was set in 2005
Moving the impact fee to the maximum level allowed by state law•at this time would require over a
60%increase from the current amount. Moreover, it is not desirable for the City Council to
increase taxes or fees to be imposed during an economic downturn. However, the economy is
expected to be in growth mode during the five-year life(2010-2015)of this proposed Impact Fee
Ordinance Therefore, it is recommended that the Carmel/Clay Park and Recreation Impact Fee
should be frozen at the current level of.$1,261 for the first 12 months of this ordinance, and then
be scheduled to increase thereafter by no more than 10% per annum
Current Parks and Recreation Impact Fee $1,261/unit
(effective 9/7/05-9/6/10)
Proposed Fee, effective 9/7/10-9/6/11 1,261/unit
Proposed Fee, effective 9/7/11-9/6/12 1,387/ unit
Proposed Fee, effective 9/7/12-9/6/13 1,526/unit
Proposed Fee, effective 9/7/13-9/6/14 1,679/unit
Proposed Fee, effective 9/7/14-9/6/15 1,847/unit
46
PARKS & RECREATION IMPACT FEES 2010-2012
PRIF 2010 2011 2012
Jan $29,003.00 $22,192.00
Feb $23,959.00 $65,189.00
March $29,003.00 $56,867.00
April Jan-May 2010 $25,220.00 $110,960.00
May $ 203,134.00 $30,264.00 $101,251.00
June $39,091.00 $23,202.00 $98,619.00
July $17,654.00 $293,945.00 $76,300.00
August $18,915.00 $269,978.00 $59,514.00
Sept $ 32,786.00 $16,644.00 $251,790.00
October $ 10,088.00 $34,675.00
November $15,132.00 $36,062.00
December $34,047.00 $133,152.00
TOTAL $ 370,847.00 $ 947,118.00 $ 844,694.00
AVG/MO. $ 30,903.92 $ 105,235.33 $ 93,854.89
Units 539 619 598 through September