Impact Fees: Practical Guide for Calculation and Implementation

Abstract

The use of development impact fees (DIFs) to finance public facilities necessary to accommodate new growth is a concept that has gained acceptance in recent years. California and Florida are considered by many to be the leading areas for the development of theory, practical models, and legislation for determining growth‐related costs and calculating impact fees for new construction. Two methods of calculation of impact fees are discussed: inductive and deductive. A total of 22 potential impact fees for public facilities have been identified, including the conventional water, sewer, and street impact fees. Other potential impact fees include public safety facilities (police and fire), library, public art, and day‐care facilities. The consequences of not using impact fees to offset the cost of providing adequate public facilities for new growth are far‐reaching. Often the full effects of growth are not felt, or recognized, by the community for many years. The community may simply wake up one day to discover that they need to improve a street or intersection to alleviate congestion.