- Briefing Room
The following are brief summaries recent Value Capture applications employed by local governments.
Value Capture Strategy-Street Impact Fees: The City of Lubbock , Texas Council voted to adopt impact fees on new development to go into effect June 1, 2021. The city council approved impact fees for only road projects with a 50% reduction from the maximum fee on all development, although the recommendation from the appointed citizen committee was to adopt the maximum impact fees on residential development for road projects. Per state law, impact fees can cover 50% of the cost for new thoroughfare construction. With a 50% reduction on top of that, money collected through impact fees moving forward will cover 25% of the estimated cost for new roads in a given service area. Public money levied across the entire city will pay for the remaining 75%. for additional information, visit City of Lubbock Website.
The Georgia Constitution authorizes CIDs in the state and enumerates their powers in Article IX, Section VII. to provide one or more of the services be provided within the CID's boundaries: Street and road construction and maintenance, including curbs, sidewalks, streetlights and devices to control the flow of traffic on streets and roads; Parks and recreational areas and facilities; Storm water and sewage collection and disposal systems; Development, storage, treatment, purification and distribution of water; Public transportation, Terminal and dock facilities and parking facilities; Such other services and facilities as may be provided for by general law.
The Elephant Insurance, a Richmond-based company is the first major sponsor of the program, with a commitment to clean up 100 miles of interstate. Organizations, large and small, can sponsor as little as one mile of litter clean-ups throughout the Commonwealth. All major highways throughout the commonwealth are part of the Beautify Virginia program. Roadside signage is placed on the right shoulder of the highway in every segment of sponsored road, facing traffic, to ensure that travelers see the segment's litter removal sponsor. VDOT operates the nation's third largest state-maintained highway system, managing and maintaining more than 57,000 miles of roadway.
Value Capture Strategy-Special Assessment/Community Improvement District (Sales Tax): On June 23, 2020 the Missouri 76 Entertainment Community Improvement District (CID) was passed by the Branson Board of Alderman. A petition to add property to the 76 Entertainment Community Improvement District (CID) was filed on Feb. 14, 2020 on behalf of certain owners of property adjacent to the CID. The purpose of the petition is to amend the boundaries and add additional property to the 76 CID to provide CID services to an expanded area of the city’s Hwy 76 entertainment corridor. It is charging a 1% sales tax on sales inside the district, that will be a component of the added property - it’s a substantial amount of real property and a substantial amount of property owners. 76 Entertainment Community Improvement District (76ECID) is a special district formed under RSMo 67.1401-67.1571 to define the improvement area and implement a 1% sales tax to fund its revitalization and upkeep. The transformation of W. 76 Country Boulevard will help ensure Branson remains a prosperous vacation destination for decades to come.
Value Capture Strategy-Transportation Utility Fees: In June of 2020, the City of Clintonville Common Council voted to hire Ehlers to assist with conducting a study on a Transportation Utility to determine whether it is a viable method of funding the City's transportation costs as well as establishing the fee structure, implementation and administration framework, and revenue needs. The City also created a website where residents and other stakeholders can go to get information on this process and on TUFs in general. The State has no laws regarding Transportation Utilities, nor is the specific method of funding transportation needs dictated by the State, and therefore, Home Rule Authority applies. According to the League of Wisconsin Municipalities the Transportation Utility [lwm-info.org] it is a valid use of the Home Rule Authority that essentially provides municipalities with the legal authority to do what they believe is in the best interest of their community provided that it does not conflict with or attempt to regulate something that the State already regulates if the State has not specifically prohibited municipalities from doing it. For updated information on Transportation Utility Fees are available on the website.
Value Capture Strategy-Roadway Impact Fees: The city of Pflugerville is considering implementing roadway impact fees to help offset costs of future development. The City Council on Tuesday February 25, 2020 approved a contract for an engineering firm to conduct a study on the fees, which are assessed to developers for roads and other infrastructure related to infrastructure improvements in the area that is expected to grow over the next 10 years.
Roadway impact fees are imposed by governments onto developers of new developments to help pay for city infrastructure, dependent on the size of the development and its overall impact on city roadways. Money collected through roadway impact fees can be applied to traffic infrastructure, such as traffic signals, bridges, sidewalks, roadways, thoroughfares, land-acquisition costs, surveying and engineering fees.
Value Capture Strategy-Roadway Impact Fees: In January 2020, the Round Rock City Council unanimously approved a roadway impact fee to address traffic demands and the need for increased capacity on major roadways around the city as it continues to grow. The city's most recent master transportation plan identified the need for $1.2 billion in new road capacity to accommodate growth during the next 20 years. Impact fees will be phased into new residential and commercial projects when developers apply for building permits.
Value Capture Strategy-Special Assessment (Sales Tax): The McLeod County, Minnesota Board of Commissioners approved by resolution the establishment of a .50% Transportation Sales Tax effective January 1, 2020 and will continue until December 31, 2049 or until revenues raised are sufficient to finance the identified transportation improvements, whichever occurs first. The Minnesota Department of Revenue will administer this tax. Revenues will fund transportation projects identified in Resolution No. 19-CB-43. This 0.5 percent sales tax applies to retail sales made into McLeod County. It anticipates $1.9 million annually will help the county closie a $3 million annual funding gap from the state aid system to help maintain highways.
Value Capture Strategy-Mobility Fees: On September 19, 2019, the City Council from of the Palm Beach Gardens, Florida approved the Ordinance 19, 2019 with an effective date of January 1, 2020. The city revised impact fees to include a new fee for mobility and to replace road impact fees for certain lands in the City. The City’s new Mobility Plan and Mobility Fee provided the basis to implement multi-modal principles to reduce vehicle trips, encourage use of transit and light rail, and increase pedestrian and bicycle activity throughout the City. The Mobility Fee enables the City to collect fees from developers in lieu of paying Road impact fees to the County. These mobility fees are used for multi-modal capital improvements within the City’s boundary, that were typically used for improvement outside the City limits, and within the County through standard County road impact fees.
Value Capture Strategy-Right-of-Way Use Agreements: The City of Hot Springs, Arkansas Board of Directors unanimously approved a largest solar municipal project on Tuesday, September 17, 2019 to provide solar electricity for all city operations. Under a 28-year energy services agreement, the City will purchase power from solar powerplants owned and operated by Scenic Hill Solar, as well as collect the leases on the land where the powerplants are built. The plants are expected to save Hot Springs more than $30 million in electricity costs over 30 years, plus add nearly $20 million of economic development.
Value Capture Strategy-Roadway Impact Fees: The Midland, Texas City Council voted in August to establish a roadway impact fee. Water and wastewater impact fees were also included in the ordinance. The ordinance was based on a recommendation from the Capital Improvements Advisory Committee and will help fund improvements in the City's capital improvement plan. The capital improvement plan indicated $575 million in needed improvements nearly 38% attributable to potential growth over the next 10 years. The fees are anticipated to generate $5 to $10 million annually
Value Capture Strategy- Public Improvement District (PID/Special Assessments: The Fort Worth City Council adopted a resolution authorizing the Fort Worth Public Improvement District (PID) 16 (Walsh Ranch/Quail Valley) on August 20, 2019. The PID was created to finance roadway and landscaping improvements to include erosion control, storm drainage, water, wastewater, and paving. Assessments were used to finance the resolution; which property owners can pay in full or in installments.