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Sample Impact Fee Report

See also Tom Hennen's Public Library Association presentation on Impact Fees

Impact fees allow communities to assess up-front costs on new homes as they are built in a community. They are intended to allow communities to levy a fee to offset the impact that a new household has on the ability of a library to sustain its service level. Such impact fees are far more workable in larger units of service. Impact fees are not legal in some states, and quite controversial in many others.  Developers often oppose them and governing bodies have mixed responses. 

This sample impact fee statement is based on an actual statement that generates fees in Wisconsin.  You will need to check with your state laws to determine if the statements will work for your library, of course.  

Anywhereville Community Library
Impact Fee Needs Assessment
 Thomas J. Hennen Jr.

Executive Summary & Fee Statement

Chapter 1 - Introduction.
Community Profile.
Library Profile.
Scope.
Related Reports.

Chapter 2 - Community Growth.
History.
Population Projection.
Village Population Projections.
Circulation.

Chapter 3 – Library Background.
Library Building Narrative.
Reference.
Impact Fee Calculation.
Building costs:
Materials costs.

Appendix 1.1 State of Wisconsin Building Worksheet

Wisconsin Public Library Standards Compared to Anywhereville Actual

ss. 66.0617 Wisconsin Statutes. Impact fees.

DRAFT Transfer of Funds Ordinance.

 

 

Executive Summary & Fee Statement

 

[In most states] impact fees cannot be used to close existing deficits.   The fees can only be used to maintain standards levels that are based on the impact of new residents.  Anywhereville meets or exceeds all current state standards for library service, but new residents will strain that capacity. 

The assumptions used in this report lead to a recommended impact fee assessment of $526 per household.

This needs assessment addresses only the Village Library and the needs associated with serving the area until 2012 based on the development pattern discussed in Chapter 2. If development occurs that is not discussed in Chapter 2, this needs assessment should be revised. One Village wide fee was calculated as the one library serves the entire Village. The residential development was projected through the year 2012 with assistance from the Village and preliminary plats of proposed development in the area. Development outside the Village limits, but within the Library’s service territory is not considered in this report because the Village does not have the ability to impose impact fees outside its boundaries. 

 

A Village population for 2012 was estimated using the regional average of 2.88 persons per housing unit. Due to the high use of the library by non-Village residents, a "non-resident population" was established using current circulation information. The facility needed to serve the total resident and non-resident population was determined and costs were estimated with the assistance of the director of the library. The costs were apportioned and the Village impact fee calculated. The fees were established based on 2000 expenses, budgets, and cost estimates. In order to keep pace with inflation, the fees will need to be adjusted on a yearly basis, using an appropriate cost index.

 

Chapter 1 - Introduction

 

Community Profile

The Village of Anywhereville is located in Southeastern Somewhere County. The Village was incorporated in 1905. The Village itself had a population of approximately 6,162.  The Village began as an area inhabited by Potawatomi Indians, who called the area “the place of the bear.”  By 1836 white settlers appeared and Sewell Andrews built a log store and brought goods from New York and Vermont, thus making Anywhereville a trade center servicing a 25-mile radius.  Anywhereville continued to develop, but was overshadowed by the faster development of Milwaukee (30 miles east) and Somewhere(12 miles east.  Today, Anywhereville must meet the needs of a growing service population.  Somewhere County has become one of the fastest growing counties in the state, with a great deal of this growth occurring west of Highway 83.  This service area is immediate to the Village of Anywhereville boundaries and subsequently newcomers view Anywhereville as their source for their daily business needs. 

 

Library Profile

 The Library is a member of the Somewhere County Federated Library System and serves not only the residents of the Village but also residents in the surrounding area.  Anywhereville is a village of approximately 5,800 people with a library service area of 17,500.  The immediate area that the library serves includes the Town of Anywhereville, and parts of the Towns of  Alpha, Beta, and Gamma. The library is also available to all residents of Nearby and Veryclose Counties.  It provides substantial services to the Towns of Omega and Epsilon in Nearby County. The original library was located in one of the village churches and then moved to one room of what is now the fire station.  In 1957, it became the F. & J. Carnegie Public Library when the family donated a former two-story residence for that purpose.  That building was on two stories with less than 2,000 sq. ft.  Prior to the most recent expansion in 1996, a needs assessment survey indicated that the library needed to consist of 24,000 sq. ft., but the village board cut the size to 12,200 because of a lack of funds.  In April of 1996, the library moved into its present facility of 12,200 sq. ft.  The circulation went from 77,098 items in 1995 to 218,921 at the end of 2000. 

 

Scope

Historically, the Village has not levied an impact fee on new development. Therefore, presently the Village does not have a method of financing costs associated with the library expansion needed in order to properly serve the growing population. This report and needs assessment was prepared by the Somewhere County Federated Library System to assist the Village in developing an impact fee ordinance for libraries that is in conformance with the requirements of Chapter 66.55 of the Wisconsin Statutes. Substantial development is anticipated in the Village and the cost of expanding the library to adequately serve the new development will exceed the Village's ability to pay for this service.

 

Related Reports

Several documents were utilized in the preparation of this report. These include Library - 1994 Annual Report, Wisconsin Library Building Project Handbook (1991) by the Wisconsin Department of Public Instruction, Wisconsin Public Library Standards (2000) developed by the Division for Libraries, Technology and Community Learning, Public Library Space Needs A Planning Outline by Anders C. Dahlgren for the Wisconsin Department of Public Instruction.

 

Chapter 2 - Community Growth

 History

From 1970 to 1990, the population growth within the Village increased by 26.4 percent. Building permits in 1990 added 30 households and peaked in 199l with 94 new households. 1992 saw the beginning of a decline with only 40 new housing permits. Now, in 1995, the Village is close to the saturation point barring annexations with only 76 lots still available.

 This is far from true in the surrounding Town of Anywhereville, where new single housing permits have increased since 1990, with this trend expected to continue.

Population Projection

The population projection for the Village of Waterford was estimated using the following assumptions:

  1. Development will occur as shown on preliminary plats
  2. Development
  3. Commercial development as planned on above-mentioned plats will not affect population calculations.

 

The following table is the breakdown used to calculate population.

 Table 2.1 - Preliminary Plat Breakdowns

  

Impact fees are not assessed on a per person basis, so the population was converted to residential equivalent units (REU's) by dividing the population by the regional average of 2.88 persons per housing unit. One housing unit is equal to one REU. Therefore, the 637 additional units platted (from Table 2. I), calculated to an additional population of 1,835, giving a projected population of 2,935 + 1,835 - 4,770. Table 2.2 shows that this growth is realistic compared to the growth in the last few years.

 

Village Population Projections

 The Southeastern Wisconsin Regional Planning Commission projects 2020 population for the South Central Area at 38,300 for the intermediated growth rate.  For purposes of this report, it is assumed that about 7,000 of those residents would be in the service territories of either the Big Bear or Somewhere libraries and that the remaining 25,000 would be in the Anywhereville Community Library service area. 

 [Place population projection table here.]


There are, however, a large number of non-Village residents that use the library. An estimate of the non-residents population must be made to adequately size the library and its collection. Table 2.3 shows current circulation information.

Circulation

 Circulation data was used to estimate the non-resident population using the basic assumptions that an average the proportion of circulation to population is the same for residents and nonresidents and that the proportion of residents to non-residents will remain the same as shown in Table 2.3.

 
Using the first assumption and Table 2.3, the 1994 resident circulation was I8,897 for a population of 2,935 persons, a ratio of approximately 6.4, therefore with a non-resident circulation of 26,257, the non-resident population is estimated to have been 4,078 in 1994. Using the second assumption, if the 2005 resident population is estimated to be 4,770 (Table 2.2) and 58 percent of the circulation goes to non-rcsidents, then the non-resident population is estimated to be 6,628.

 Therefore, the current design population is 2,935 + 4,078 or 7,013 persons. This is the number that must be used when evaluating current deficiencies. The design population for the year 2005 is 4,770 + 6,628 = 11,398. This number should be used when determining necessary improvements.

 [Put current circulation table here]

  

Chapter 3 – Library Background

 Library Building Narrative

 Overview

The original spaciousness of the library has gradually disappeared as more materials have been added to the library collection.  The limit may have been reached. Books fill all of the shelves, and some books that the librarians would rather keep had to be discarded to make space. There is no room available for proper display of the video or audiocassettes,

 There is a definite lack of study rooms, which are often requested by library patrons.  Meeting room space is very limited, holding just 26 chairs.  Many groups who want to use it are turned away because it is heavily booked.  Storage space is very limited. 

 County minimum standards and the more expansive state materials standards indicate that the collection needs to grow to accommodate an expanding population of users, but there is no shelf space.

 Seating

____tables have been reduced to ___ and ___ study chairs have dropped to ___.  There are ___ lounge chairs and a round table for newspapers.

 

Staff Space

Staff space is a bare minimum. A ________ foot area includes the director's office, the desk of the children's librarian, the cataloging and processing areas, and the staff/work table.

Staff work area is very congested.  Shelves have gotten to the point of overflow, so the staff has put many items in storage and sold many others.   There are ____ staff members all trying to share the same work area. The present circulation desk is ___ square feet and is inadequate to function efficiently.

 

Reference

The reference collection is housed on ___ linear feet of eight foot high shelving. Every shelf is used and filled to capacity. The reference area has lacks sufficient seating and computer workstation access for any patrons using that section.

 

Children's Department

The children's department is next to the circulation desk without any visual or sound barriers. When classes from school come to work at the library, the area is overcrowded and becomes too noisy for other library users.

 

Juvenile

The young adult books are in a corner of the children's space. The collection is housed on ___ linear feet of shelf space in one bookcase at the end of a row of juvenile books. Young adult paperbacks are placed along the tops of the low juvenile shelving.

 

Adult Fiction

The entire collection is housed on ___ linear leet of shelving. Every shelf, including top and bottom are used, and books are lined up on top of the seven foot shelves. Current fiction is on low shelves below the level of convenient inspection for adults. Adult paperbacks are shelved on ___ linear feet of eight foot high wall shelving.

  Adult Non-Fiction

The non-fiction collection takes up ____ linear feet of shelving. Oversized books are on ___  linear feet of shelving.

 Periodicals

 The library has ___ current magazines and __ newspapers. The magazines are on eight foot high periodical shelving.

 

Video Material

There is limited space for popular AV materials, many of which are in storage.

 

Budget

Items that will be affected by growth include expenses such as library maintenance, supplies, postage, children's programming, telephone expenses, equipment repair, and material costs for periodicals, adult materials, and children's materials.

 

Needs Assessment

There are design standards recommended by the Wisconsin Department of' Instruction regarding collection size and space needed for libraries. The Appendix contains the standards and a calculation for the existing and future population needs. Table 3.2 is a summary of the space needs at present and in 2012.

 

Impact Fee Calculation

The future gross area needed was calculated based on the projected population of 25,000. This is the total of resident and non-resident users. The space to be included in the cost estimates for the impact fee was calculated by taking the space needed in 2012 and subtracting the existing (2000) space and deficiencies (2000). The impact fee was calculated by dividing the total project cost by the number of applicable REU's for the Village.

 

The library fee was determined to be $526 per REU.

 

Wisconsin Statutes specifically prohibit application of the impact fee to eliminate existing deficiencies. For that reason, the space needed to serve the existing population was determined. Table 3.2 is a summary of the calculations for needed space. The size of the collection needed to serve the population was calculated and used to determine the needed space. The cost of' increasing the collection size and items the library will need to properly serve the additional population is included below and was compiled with the assistance of the library director.

Calculation for additional building and equipment costs for impact fee.

The most recent state survey found that for libraries in the 10,000 to 25,000-population range the average square footage was 0.92.  This included quite a few inadequately sized facilities, of course, so a range of 1 to 1.5 square feet per capita is realistic.  Using the state building specifications in the appendix, we calculated that 40,208 square feet are needed for an extended service population of 25,000.  That is about 1.6 square feet per capita.  Some of the space needed is fixed and not population sensitive, such as administrative and mechanical space.   This needs assessment determined that a figure of 1.2 square feet per capita was appropriate for impact fee calculation.  Assuming 2.88 residents per home, each household will add 3.45 square feet to the needed facility.  Current construction costs would indicate between $100 and $150 for library building and equipment costs. 

 

Building costs:

 

 

    

Materials costs.

 

 

 

 

 

 
 

Appendix 1.1 State of Wisconsin Building Worksheet (Sheet1 of 3)

Appendix 1.2 State of Wisconsin Building Worksheet (Sheet 2 of 3)


 



Appendix 1.3 State of Wisconsin Building Worksheet (Sheet 3 of 3)

 


 


 


Wisconsin Public Library Standards Compared to Anywhereville Actual

Technology Standard

Some assume that electronic resources and the Internet are reducing the space requirements in libraries.  The opposite is true.  Computer workstations take up more cubic feet of space than books and magazines by far.  The library is presently participating in a national study on electronic resource assessment called “Counting for Results” with the Colorado Research Center.  Data from this report are expected to help in planning efforts.   In addition to the numerical items below, the state recommends a minimum for computer workstations at one for each 35 visitors per day.  At the current rate of 412 visits, that requires at least 13 public access computer workstations – exactly the number now available.  Planning for expansion and peak loads should add at least another 15 workstations. That in turn would require another 1,500 or so square feet of floor space. 

 

Assume service population of 25,000

Calculations are provided here based on Wisconsin library standards for service area population and then assuming two different populations for Anywhereville – 25,000 and 16,000.  Current state library projections put the service population at about 16,000.  For building and long range planning purposes, it is important to consider the impacts of population growth.  A population served of closer to 25,000 is likely in the next 20 years. 

 
 
 
 

 

 


Assume service population of 16,000

 
 

Per

Capita

 
 
 

 

 


Numerical Standards Comparison

The chart below is provided for information purposes only at this point since the standards have not been approved by all 16 library boards and we have not yet reached the relevant year, 2002 for 2003 levy purposes. Boxes below indicate libraries that would be deficient on a measure in a given year at the current rate. 

 

[Place chart of library comparison to state standards here]

 

 

ss. 66.0617 Wisconsin Statutes. Impact fees. 

(a)  "Capital costs" means the capital costs to construct, expand or improve public facilities, including the cost of land, and including legal, engineering and design costs to construct, expand or improve public facilities, except that not more than 10% of capital costs may consist of legal, engineering and design costs unless the political subdivision can demonstrate that its legal, engineering and design costs which relate directly to the public improvement for which the impact fees were imposed exceed 10% of capital costs.  "Capital costs" does not include other noncapital costs to construct, expand or improve public facilities or the costs of equipment to construct, expand or improve public facilities.

 (c)  "Impact fees" means cash contributions, contributions of land or interests in land or any other items of value that are imposed on a developer by a political subdivision under this section.

2 (a)  Subject to par. (am), a political subdivision may enact an ordinance under this section that imposes impact fees on developers to pay for the capital costs that are necessary to accommodate land development.

 (c)  Beginning on May 1, 1995, a political subdivision may impose and collect impact fees only under this section.

 (3) Public hearing; notice.  Before enacting an ordinance that imposes impact fees, or amending an existing ordinance that imposes impact fees, a political subdivision shall hold a public hearing on the proposed ordinance or amendment.  Notice of the public hearing shall be published as a class 1 notice under ch. 985, and shall specify where a copy of the proposed ordinance or amendment and the public facilities needs assessment may be obtained.

 (4)(a)    Before enacting an ordinance that imposes impact fees or amending an ordinance that imposes impact fees by revising the amount of the fee or altering the public facilities for which impact fees may be imposed, a political subdivision shall prepare a needs assessment for the public facilities for which it is anticipated that impact fees may be imposed.  The public facilities needs assessment shall include, but not be limited to, the following:

(a)2. An identification of the new public facilities, or improvements or expansions of existing public facilities, that will be required because of land development for which it is anticipated that impact fees may be imposed.  This identification shall be based on explicitly identified service areas and service standards.

 (a) 3.  A detailed estimate of the capital costs of providing the new public facilities or the improvements or expansions in existing public facilities identified in subd. 2., including an estimate of the effect of recovering these capital costs through impact fees on the availability of affordable housing within the political subdivision.

 (5) Differential fees, impact fee zones. 

 (a)  An ordinance enacted under this section may impose different impact fees on different types of land development.

 (b)  An ordinance enacted under this section may delineate geographically defined zones within the political subdivision and may impose impact fees on land development in a zone that differ from impact fees imposed on land development in other zones within the political subdivision.  The public facilities needs assessment that is required under sub. (4) shall explicitly identify the differences, such as land development or the need for those public facilities, which justify the differences between zones in the amount of impact fees imposed.

 (6) Standards for impact fees.  Impact fees imposed by an ordinance enacted under this section:

(e)  Shall be reduced to compensate for moneys received from the federal or state government specifically to provide or pay for the public facilities for which the impact fees are imposed.

 (7) Low-cost housing.  An ordinance enacted under this section may provide for an exemption from, or a reduction in the amount of, impact fees on land development that provides low-cost housing, except that no amount of an impact fee for which an exemption or reduction is provided under this subsection may be shifted to any other development in the land development in which the low-cost housing is located or to any other land development in the political subdivision.

 (8) Requirements for impact fee revenues.  Revenues from impact fees shall be placed in a segregated, interest-bearing account and shall be accounted for separately from the other funds of the political subdivision.  Impact fee revenues and interest earned on impact fee revenues may be expended only for capital costs for which the impact fees were imposed.

 (9) Refund of impact fees.  An ordinance enacted under this section shall specify that impact fees that are imposed and collected by a political subdivision but are not used within a reasonable period of time after they are collected to pay the capital costs for which they were imposed shall be refunded to the current owner of the property with respect to which the impact fees were imposed.  The ordinance shall specify, by type of public facility, reasonable time periods within which impact fees must be spent or refunded under this subsection.  In determining the length of the time periods under the ordinance, a political subdivision shall consider what are appropriate planning and financing periods for the particular types of public facilities for which the impact fees are imposed.

 


DRAFT Transfer of Funds Ordinance

 

    WHEREAS the Village Board of the Village of Anywhereville imposes impact fees in accordance with Wis. Stat. § 66.0617 (formerly § 66.55) pursuant to Anywhereville Municipal Code § ____; and

 

       WHEREAS a separate impact fund for public library improvements exists pursuant to Anywhereville Municipal Code § ____(6) which consists of impact fees collected by the Village for the purpose of paying the capital costs of public library improvements; and

 

       WHEREAS Anywhereville Municipal Code § ____ authorizes the use of monies collected per its terms for capital costs for new, expanded or improved public facilities which are related to the effects of general population growth in the Village of Anywhereville; and

 

       WEIEREAS the Village of Anywhereville has experienced such population growth within its system and has made necessary improvements to the Village's public library system pursuant to Exhibit A, attached hereto and made a part hereof by reference, in conformance with the Public Facilities Needs Assessment; and

 

       WHEREAS the capital costs for the expenditures shown on said exhibit were paid by the Village of Anywhereville Public Library System from various accounts as listed in said Exhibit A, and properly consist of public library system improvements capital costs:

 

        NOW, THEREFORE, BE IT RESOLVED by the Village Board of the Village of Anywhereville, that, pursuant to the above, $ __________shall be transferred from the Village of Anywhereville Public Library Improvements Impact Fee Fund to the Village of Anywhereville Public Library System Operating Account and $_______shall be transferred from the Village of Anywhereville Public Library Improvements Impact Fee Fund to the Village of Anywhereville Public Library System Fundraising Account to reimburse the Library System for the capital costs for public library improvements expended through___________, having made the findings as follows:

 

  1. These expenditures for these items bear a rational relationship to the need for new, expanded or improved public library facilities created by land development within the Village of Anywhereville and the attendant population growth; and
  2. The costs of these capital improvements do not exceed the proportionate share of the capital costs to serve land development compared to existing uses of land within the Village; and
  3. These costs arc actual and not estimated capital cost items; and
  4. There are no special charges or offsets against these expenditures, and there are no federal or state contributions of any nature toward the acquisition of these capital assets; and
  5. These capital costs were not incurred for the purpose of addressing existing deficiencies; and the Village finds that it is in the best interest of the public library system of the Village of Anywhereville to reimburse the public library system accounts for these capital costs.

 

 

 

 

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