The process to create this study specific to Edmond needs is iterative and includes the Focus Group, city staff, as well as elected and appointed officials. When the process concludes with a finalized study and recommendations, it will be recognizable and familiar to every stakeholder because they will have helped shape it from the beginning. The mayor and City Council will be responsible for formally establishing the program.
Development Impact Fees
Two recently approved studies found significant gaps in the City’s ability to continue to provide services. Both the East Edmond 2050 Plan and the Revenue and Expense Optimization Study recommended a series of fiscal studies to evaluate approaches to diversifying the City’s revenue program specifically related to the cost associated with new development.
To that end, Edmond has contracted with TischlerBise, Inc. to study “Development Impact Fees.”
What is a Development Impact Fee?
A Development Impact Fee is a one-time payment for growth-related infrastructure, usually collected at the time building permits are issued. Payments must address a need, provide a benefit, and be proportionate to demand.
What types of infrastructure does Edmond’s study include?
Edmond is studying the use of development impact fees for all of its major capital, including Parks and Recreation, Libraries, Police, Fire, Transportation and Mobility, Drainage, Water, Wastewater, Electric, and general government.
Oct 23, 2023 – Council Workshop: TischlerBise provided the City Council with an overview of the study and answered questions from Council members.
Nov 7, 2023 – The Planning Commission selects two commissioners to serve on the Impact Fee Focus Group
Nov 14, 2023 – Central Edmond Urban District Board selects two board members to serve on the Impact Fee Focus Group
Nov 16, 2023 – The Parks & Recreation Advisory Board selects two board members to serve on the Impact Fee Focus Group
Nov 21, 2023 – The Capital Improvement Projects Advisory Board selects two board members to serve on the Impact Fee Focus Group
Nov 27, 2023 – The City Council appoints an Impact Fee Focus Group composed of representatives from the Planning Commission, Urban Board, Parks & Recreation Board, CIP Board, the development sector, and citizens at-large.
Dec 4, 2023 – Focus Group meeting 1: Members of the Development Impact Fee Focus Group meet to learn about the initial phases of the study and ask questions about how the program would work. The presentation is available here.
Dec 4, 2023 - Public Open House: The City and its consultant team hosts an Open House at the Edmond Conference Center from 6:30 – 7:30 p.m. so members of the public can learn about development impact fee programs and ask questions that will be answered during the Open House and on the city’s website. The presentation is available here.
Not necessarily. Often those features, such as decel/turn lanes, are required to provide safe access to the adjacent development, the impact fees are designed to add capacity to the system or network overall.
Nexus refers to the spatial relationship between the development paying the fee and the increased capacity the fee is designed to provide. For example, an impact fee could be used to build a new park in the area in which the new development is occurring.
Most likely, yes. However, the program will have to be set up and administered in a specific and transparent manner to ensure that “double collecting” is avoided.
Not really. These studies and impact fee programs are extremely specific to each individual community’s priorities, current conditions, and their state’s statutory requirements.
Oklahoma law allows several types of development to be exempted, in part or in whole, from impact fees – for example significant economic development projects or affordable housing. If a community includes exemptions in their program, they must show how the impact fee funds are made whole, from another funding source, when these exemptions are used.
While some communities have impact fees for public schools, Edmond is only studying the capital/infrastructure that it is directly responsible for.
A service area is a geographic zone where impact fees are collected and spent. For example, a service area for a fire station might include the area around a possible new fire station which would be that specific station’s primary response area.
The presence of an impact fee program can cause a slight increase in the price of new businesses and homes. Communities can help mitigate these increases by ensuring their program does not use a ‘one-size-fits-all’ approach – e.g. using building size as a variable in calculating fees – and phasing in the fees over time.
Usually not. Most utility rates are designed to account for new capacity, therefore, impact fees must make sure they are not “double collecting” for this capital.
There are annual reporting requirements as well as a formal re-evaluation that must occur at least every five years.
A 7- or 8-year planning cycle is common. This timeframe allows for good capital planning, reliable growth projections, and sufficient funds available to construct meaningful projects.
Yes. This is one of the key components of an impact fee program. Special revenue collected as impact fees must be spent on expanding capacity to meet demand from new growth. This often means that a higher percentage of the general fund can be allocated to maintenance and increasing service levels.
Yes. This is especially useful on regional assets such as highways or regional parks.
Credits are established to allow a large development to build some types of capital as part of their overall development. For example, a large subdivision may choose to build a public park that meets the City’s standards, which would allow a reduction in their park impact fee.
The study will have to clearly show how an impact fee program will not “double collect”. For example, impact fees can only be used to increase capacity to accommodate new growth, they cannot be used to correct existing deficiencies or increase existing service levels. By leveraging this new special revenue, many communities are able to allocate other/existing revenues to create new amenities and increase service levels.