TABLE OF CONTENTS
LIST OF FIGURES
LIST OF TABLES
Capital improvement plan (CIP)— Typically, a 5- to 10-year plan that identifies a list of capital projects necessary to accommodate the anticipated growth or new developments and that includes a phasing plan and financing option for implementing the capital projects
Demand elasticity—Price elasticity of demand representing a measure of the change in the quantity demanded in relation to its price change; demand is elastic if price sensitive (i.e., consumers readily change their behavior) and inelastic if not price sensitive
Development feasibility—Feasibility of a development project proceeding as proposed when local jurisdictions impose maximum legally defensible impact fees
Essential nexus test—A test required from the Nollan ruling to establish a direct cause–effect relationship between the proposed project and the exaction imposed on property owners and/or developers to pay for the public improvements the project needs
Exaction—A financial burden or other requirements a local government places on a developer to pay for all or a portion of the public improvements needed for the developer’s project as a condition of project approval
Exclusivity—The more correct economic term being “excludability,” the degree to which a government can limit a public service or resource to only paying customers, or conversely, the degree to which a government can prevent nonpaying customers from accessing a service or resource for free
General law city—As opposed to a home rule or charter city, a city that is bound by the State's general law, even with respect to municipal affairs
General obligation (GO) bond—A municipal bond backed solely by the credit and taxing power of the issuing jurisdiction rather than the revenue from a given project
General plan—Comprehensive planning guidelines to a city’s or county’s future development goals; provides policy statements to achieve those development goals (alternatively referred to as master plan or comprehensive plan)
Geographic equity—The degree to which the cost to provide public service is equal and fair from one geographic area to another
Home rule or charter city—A city, with a population of at least 5,000, that has adopted a home rule charter for its local self-governance and that can pass any regulation or law it deems necessary, unless the State law prohibits it
Horizontal equity—Alternatively referred to as proportionality, the degree to which those who benefit from public service pay for the service proportional to the benefit they receive
Inclusionary housing—Local policies that tap the economic gains from rising real estate values to create affordable housing for lower income families; for example, requiring developers to sell or rent 10 to 30 percent of new residential units to lower income residents
In-lieu fee—A fee paid by a developer in lieu of mandatory land dedication requirement or other developer exactions associated with his or her development project
Lumpy investment or asset—A large-scale infrastructure investment of asset (e.g., major highway, water/sewer plant) that is built infrequently and cannot be expanded incrementally
Marginal pricing—An approach to determining infrastructure cost that accounts only for the incremental costs needed to produce an additional unit of public service
Nexus study—Also known as a fee study, a study to demonstrate a legal basis for the required nexus between development project and impact fees and a quantitative basis for specific impact fee levels that are proportional to the impact created by the project
Ordinance—A law or statute that a municipal legislative body adopts
PM peak hour—Representing a 60-minute time period when the highest number of trips are generated during the afternoon period between 4 PM and 6 PM
Police power—The capacity of the States to regulate behavior and enforce order within their territory for the betterment of the health, safety, morals, and general welfare of their inhabitants
Pro forma—A report prepared for real estate investors that gathers current or estimated income and expense data to project the net operating income and cash flow of a proposed development project
Proportionality—Alternatively referred to as horizontal equity, the degree to which those who benefit from public service pay for the service proportional to the benefit they receive
Rational nexus—General requirement that impact fees be rationally linked to an impact that a particular development project creates, which represents a moderate position between a strict standard that the fee be specifically and uniquely attributable to the needs created by new development and the relaxed standard that the fee be reasonably related to the needs
Regressive—When all receive a uniform rate, putting a larger burden on low-income households than high-income households
Regulatory taking—May occur when a government imposes regulations (such as zoning) that limit the owner’s use of that property or exactions or fees on a specific group to pay for improvements that benefit not only the group but the public at large
Resolution—A formal expression of the opinion or will of an official municipal body, which serves as a basis for adopting an ordinance
Rough proportionality test—A test required from the Dolan ruling that proves the need for the exaction amount from a developer and/or property owner is roughly proportional to the impact created by the project
Scale economy—Alternatively referred to as economies of scale, a scale economy is achieved when public or private entities can produce goods and services on a larger scale with lower unit costs
Specific plan—A comprehensive and zoning document for a defined geographic area within a city; implements the city’s general plan by providing a special set of development standards applied to that area
Transit-oriented development—A type of dense and compact urban development that maximizes mixed-use space (i.e., residential, business, and leisure) within walking distance of public transit, thereby maximizing its use
Vertical equity—Another term for social equity and based on the ability-to-payprinciple rooted in welfare economics; the degree to which only those who are able and can afford to pay should pay for public services
Vested right—A property owner’s irrevocable right to develop his or her property and that cannot be changed by future growth restrictions or other regulatory reversals