§ 45-22.4-4. Calculation of impact fees.
(a) The governmental entity considering the adoption of impact fees shall conduct a needs
assessment for the type of public facility or public facilities for which impact fees
are to be levied. The needs assessment shall identify levels of service standards,
projected public facilities capital improvements needs, and distinguish existing needs
and deficiencies from future needs. The findings of this document shall be adopted
by the local governmental entity. In order for a municipality to continue assessing
and collecting impact fees, a needs assessment shall be conducted every five (5) years.
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§ 45-22.4-4. Calculation of impact fees.
(a) The governmental entity considering the adoption of impact fees shall conduct a needs
assessment for the type of public facility or public facilities for which impact fees
are to be levied. The needs assessment shall identify levels of service standards,
projected public facilities capital improvements needs, and distinguish existing needs
and deficiencies from future needs. The findings of this document shall be adopted
by the local governmental entity. In order for a municipality to continue assessing
and collecting impact fees, a needs assessment shall be conducted every five (5) years.
(b) The data sources and methodology upon which needs assessments and impact fees are
based shall be made available to the public upon request.
(c) The amount of each impact fee imposed shall be based upon actual cost of public facility
expansion or improvements, or reasonable estimates of the cost, to be incurred by
the governmental entity as a result of new development, as set forth in the needs
assessment. The calculation of each impact fee shall be in accordance with generally
accepted accounting principles.
(d) An impact fee shall meet the following requirements:
(1) The amount of the fee must be reasonably related to or reasonably attributable to
the development's share of the cost of infrastructure improvements made necessary
by the development; and
(2) The impact fees imposed must not exceed a proportionate share of the costs incurred
or to be incurred by the governmental entity in accommodating the development. The
following factors shall be considered in determining a proportionate share of public
facilities capital improvement costs:
(i) The need for public facilities' capital improvements required to serve new development,
based on a capital improvements program that shows deficiencies in capital facilities
serving existing development, and the means, other than impact fees, by which any
existing deficiencies will be eliminated within a reasonable period of time, and that
shows additional demands anticipated to be placed on specified capital facilities
by new development; and
(ii) The extent to which new development is required to contribute to the cost of system
improvements in the future.