HomeMy WebLinkAbout09-09-24 - Community Development Board - Agendas & Packet MaterialsA. Call to Order - 6:00 pm
B. Disclosures
C. Changes to the Agenda
D. Public Service Announcements
E. Approval of Minutes
E.1 Approval of Minutes(Sagstetter)
F. Public Comments on Non-agenda Items Falling within the Purview and Jurisdiction of the Board
THE COMMUNITY DEVELOPMENT BOARD OF BOZEMAN, MONTANA
CDB AGENDA
Monday, September 9, 2024
General information about the Community Development Board is available in our Laserfiche
repository.
If you are interested in commenting in writing on items on the agenda please send an email to
comments@bozeman.net or by visiting the Public Comment Page prior to 12:00pm on the day of the
meeting. At the direction of the City Commission, anonymous public comments are not distributed to
the Board or staff.
Public comments will also be accepted in-person and through video conference during the appropriate
agenda items.
As always, the meeting will be streamed through the Commission's video page and available in the
City on cable channel 190.
For more information please contact Chris Saunders, csaunders@bozeman.net
This meeting will be held both in-person and also using an online video conferencing system. You
can join this meeting:
Via Video Conference:
Click the Register link, enter the required information, and click submit.
Click Join Now to enter the meeting.
Via Phone: This is for listening only if you cannot watch the stream, channel 190, or attend in-
person
United States Toll
+1 346 248 7799
Access code: 954 6079 2484
This is the time to comment on any non-agenda matter falling within the scope of the Community
Development Board. There will also be time in conjunction with each agenda item for public
comment relating to that item but you may only speak once per topic.
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G. Special Presentations
G.1 Bozeman Landmark Program, application 22388 (Rosenberg & Burke)
H. Action Items
H.1 Ordinance 2169, Revisions to Chapter 2, Article 6, Division 9 Impact Fees, Bozeman
Municipal Code to Revise Definitions, Reorganize Division Structure, Clarify Relationship To
The City’s Capital Improvement Program, Update Provisions For Impact Fee Refunds To
Conform To Recent Changes In State Law, Strike Certain Exemptions, Â Update Processes
For Approval Of Impact Fee Credits And Custom Fee Studies, Update Processes For Appeals,
And Providing An Effective Date(Saunders)
H.2 Review and Recommendation to City Commission Regarding the 2024 Service Area Report
for Fire/Emergency Medical Services Impact Fees(Saunders)
I. FYI/Discussions
I.1 Upcoming Items for the September 16, 2024, Community Development Board
Meeting.(Saunders)
I.2 Information Regarding Other Montana Communities Using Impact Fees(Saunders)
J. Adjournment
Please note, the Community Development Board cannot take action on any item which does not
appear on the agenda. All persons addressing the Community Development Board shall speak in a
civil and courteous manner and members of the audience shall be respectful of others. Please
state your name, and state whether you are a resident of the city or a property owner within the
city in an audible tone of voice for the record and limit your comments to three minutes.
General public comments to the Board can be found in their Laserfiche repository folder.
Consider the motion: Having reviewed and considered the staff report, draft text, public comment, and
all information presented, I hereby adopt the findings presented by the Staff and recommend approval
of Ordinance 2169.
Consider the Motion: Having reviewed and considered the staff presentation, draft text, public
comment, and all information presented, I hereby adopt the findings presented by the Staff and
recommend approval of the 2024 service area report for Fire/EMS.
This board generally meets the first and third Monday of the month from 6:00 pm to 8:00 pm.
City Board meetings are open to all members of the public. If you have a disability that requires
assistance, please contact our Acting ADA Coordinator, Max Ziegler, at 406.582.2439
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Memorandum
REPORT TO:Community Development Board
FROM:Sam Sagstetter - Community Development.
SUBJECT:Approval of Minutes
MEETING DATE:September 9, 2024
AGENDA ITEM TYPE:Community Development - Legislative
RECOMMENDATION:Approve.
STRATEGIC PLAN:1.1 Outreach: Continue to strengthen and innovate in how we deliver
information to the community and our partners.
BACKGROUND:None.
UNRESOLVED ISSUES:None.
ALTERNATIVES:Approve with corrections.
FISCAL EFFECTS:None.
Attachments:
081924 CDB Minutes.pdf
Report compiled on: September 5, 2024
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Bozeman Community Development Meeting Minutes, August 19, 2024
Page 1 of 3
THE COMMUNITY DEVELOPMENT MEETING OF BOZEMAN, MONTANA
MINUTES
August 19, 2024
General information about the Community Development Board is available in our Laserfiche repository.
Present: Nicole Olmstead, Chris Egnatz, Jason Delmue, Ben Lloyd, Mark Egge
Absent: None
Excused: Henry Happel, Padden Guy Murphy, Jennifer Madgic
A) 00:05:58 Call to Order - 6:00 pm
B) 00:06:27 Disclosures
C) 00:06:38 Changes to the Agenda
D) 00:06:41 Approval of Minutes
D.1 00:06:46 Approval of Minutes: 08-05-24 & 08-12-24
080524 CDB Minutes.pdf
081224 CDB Minutes.pdf
00:06:52 Motion to approve Approve.
Chris Egnatz: Motion
Mark Egge: 2nd 00:07:03 Vote on the Motion to approve Approve The Motion carried 5 - 0.
Approve:
Nicole Olmstead
Chris Egnatz
Jason Delmue
Ben Lloyd
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Bozeman Community Development Meeting Minutes, August 19, 2024
Page 2 of 3
Mark Egge
Disapprove:
None
E) 00:07:19 Special Presentations
E.1 00:07:25 2025 Stormwater Facilities Plan Update
00:07:39 Stormwater program manager Adam Oliver presents to the board.
F) 00:47:21 Action Items
F.1 00:47:33 The Rest Stop Zone Map Amendment Requesting Amendment of the
City Zoning Map to Change the Zoning from M-1 (Light Manufacturing District) to B-2
(Community Business District) Containing Approximately 10.05 Acres. The Property is
Located on the East Side of North 19th Avenue, South of the 19th Avenue/Springhill
Road Offramp off Interstate 90 Interchange and North of Simmental Way. Application
24185.
24185 Rest Stop ZMA CDB SR.pdf
00:48:16 Development Review Manager Chris Saunders presents to the board.
00:52:18 Applicant Marty Matsen provides public comment.
00:57:10 Motion to approve Meets standards for approval.
Ben Lloyd: Motion
Chris Egnatz: 2nd
00:59:12 Vote on the Motion to approve Meets standards for approval. The Motion carried 5 - 0.
Approve:
Nicole Olmstead
Chris Egnatz
Jason Delmue
Ben Lloyd
Mark Egge
Disapprove:
None
01:00:24 Richard Bakker provides public comment.
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Bozeman Community Development Meeting Minutes, August 19, 2024
Page 3 of 3
F.2 01:03:15 Training on Impact Fees and Board Role as the Impact Fee Advisory
Committee.
CD Training 8-19-2022 memo.pdf
F.3 01:53:33 Discussion on Capital Improvement Program Development for
Transportation Impact Fee
02:31:02 Justin B. provides public comment.
G) 02:33:02 Public Comments on Non-agenda Items Falling within the Purview and
Jurisdiction of the Board
02:33:26 Katherine Barry provides public comment.
02:36:19 Tyler H. provides public comment.
02:38:53 Justin Dixon provides public comment.
H) 02:42:02 FYI/Discussions
H.1 02:42:56 Upcoming Items for the September 9, 2024, Community Development
Board Meeting.
I) 02:42:57 Adjournment
This board generally meets the first and third Monday of the month from 6:00 pm to 8:00 pm.
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Memorandum
REPORT TO:Community Development Board
FROM:Sarah Rosenberg, Associate Planner/Historic Preservation Officer
Chris Saunders, Community Development Manager
Erin George, Interim Director of Community Development
SUBJECT:Bozeman Landmark Program, application 22388
MEETING DATE:September 9, 2024
AGENDA ITEM TYPE:Citizen Advisory Board/Commission
RECOMMENDATION:None
STRATEGIC PLAN:1.1 Outreach: Continue to strengthen and innovate in how we deliver
information to the community and our partners.
BACKGROUND:The Historic Preservation Program began in the early 1980's when a
comprehensive historic architecture survey of the "historic portion" of the
city was conducted. Surveying over 3,000 properties provided the
foundation to nominate ten National Historic Districts in subsequent years,
adopt historic preservation regulations, and create the Neighborhood
Conservation Overlay District (NCOD) in 1991. Since then, the current
regulations in Section 38.340 of the Bozeman Municipal Code have been
applied to new development and alterations within the historic districts or
the NCOD via the Certificate of Appropriateness (COA) process.
Reports evaluating the NCOD were prepared in both 2015 and 2019. The
reports note the successes of the NCOD and the Historic Preservation
program as a whole, but also recommend changes. The City issued an RFP in
December 2022 seeking consultant assistance to conduct additional research
and community engagement to inform and draft policy and regulation
changes, including a local landmark nomination process, in line with the
2015 and 2019 reports and recent national trends. After a competitive
procurement process, Community Planning Collaborative (CPC) was selected
to assist with the project.
The Bozeman Landmark Program project will do the following:
Evaluate Section 38.340 of the Unified Development Code - where all
things historic preservation and standards for the NCOD reside;
Assess the review criteria and standards for certificate of
appropriateness applications;
Reevaluate the NCOD - determine the effectiveness of the district and
its boundary and how it relates to the historic preservation program as
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a whole since this project is looking at the entire city and not just the
NCOD;
Create a Landmark Program and nomination process which can
identify places of importance that may not be recognized as significant
at the National level and can establish its own locally-specific
standards and regulations.
The project is divided into two phases. The first phase focuses on research
and community engagement that will result in policy recommendations. The
second phase will put the recommendations into action (subject to City
Commission authorization) by drafting and preparing necessary code
amendments. At both phases, the Historic Preservation Advisory Board and
the Community Development Board will review and provide their
recommendation to the City Commission for consideration. Community
engagement kicked off in July with a variety of different ways for the
community to participate, including in-person focus groups, an online
survey, pop-up tabling events, social media posts, utility bill mailers, and a
historic marker workshop at the library. Additional details on the project can
be found on the project's Engage Bozeman page.
This special presentation will introduce the project to the Community
Development Board, highlight the next steps, and pose questions for
discussion.
UNRESOLVED ISSUES:None
ALTERNATIVES:None
FISCAL EFFECTS:Funds for the project are included in the FY25 budget.
Report compiled on: September 3, 2024
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Memorandum
REPORT TO:Community Development Board
FROM:Chris Saunders, Community Development Manager
Erin George, Community Development Interim Director
SUBJECT:Ordinance 2169, Revisions to Chapter 2, Article 6, Division 9 Impact Fees,
Bozeman Municipal Code to Revise Definitions, Reorganize Division
Structure, Clarify Relationship To The City’s Capital Improvement Program,
Update Provisions For Impact Fee Refunds To Conform To Recent Changes In
State Law, Strike Certain Exemptions, Update Processes For Approval Of
Impact Fee Credits And Custom Fee Studies, Update Processes For Appeals,
And Providing An Effective Date
MEETING DATE:September 9, 2024
AGENDA ITEM TYPE:Ordinance
RECOMMENDATION:Consider the motion: Having reviewed and considered the staff report, draft
text, public comment, and all information presented, I hereby adopt the
findings presented by the Staff and recommend approval of Ordinance 2169.
STRATEGIC PLAN:7.5. Funding and Delivery of City Services: Use equitable and sustainable
sources of funding for appropriate City services, and deliver them in a lean
and efficient manner.
BACKGROUND:The Bozeman Municipal Code contains Chapter 2, Article 6, Division 9,
Impact Fees [external link] which is the local enabling legislation for the City’s
impact fee program. This division of the Municipal Code sets the general
parameters for the impact fee program and provides additional local detail
and processes to round out the general standards from the state. Authority
to establish impact fees is granted by Title 7 Chapter 6 Part 16, Montana
Code Annotated [External Link}.
Impact fees were first adopted in 1996. From time to time, needed changes
to the code are identified to make it more functional and effective. The City
reviews and when needed updates the code in conjunction with updates to
the impact fee service area reports. The State also passed some changes in
the enabling legislation regarding refunds in the 2023 Legislative session.
Due to the extent of edits in the text, the proposed ordinance is a complete
repeal and replace of the division. Exhibit A attached to the ordinance is the
final proposed language and shows no markups. There is a marked up
version of the existing text showing the changes attached to this agenda
item as supporting documentation.
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Summary of changes in the draft ordinance.
General rewording to active tense, more plain language, and updating
of language per current code drafting protocols
Updating legislative findings for clarity
Updating authority references reflecting a change to a charter
community authority
Update definitions to correspond with other changes and define terms
used but not currently defined
Rearrange locations for generally applicable requirement to precede
specific requirements
Remove certain fee exceptions originally established for program start
up and no longer needed
Standardize wording for review of independent fee calculation studies
Revise process for refunding impact fees to match with changed state
law requirements for who receives the refund
Revise process for review and approval of impact fee credits for
construction of qualifying infrastructure
Revise miscellaneous provisions to coordinate with other changes and
clarify existing practice.
Establish a specific section for deferrals to make it easier to find those
elements of the code
Revise processes for appeals, administration, and interpretation of the
impact fee code.
The City has implemented impact fees for transportation, Fire/EMS, water,
and sewer. The service area reports for each service are reviewed separately
from this item.
The Community Development Board, acting in their capacity as the Impact
Fee Advisory Committee (IFAC), will make a recommendation on the draft
ordinance to the City Commission. The IFAC provides an important
opportunity for public input on the proposed amendments. The City
Commission will hold a public hearing on October 1, 2024 to consider
provisional adoption of the proposed ordinance. Training for the Board on
the role of the IFAC was provided on August 19th. The video and materials
for the training are available through the City's website [External Link]. The
item begins at 1:03:15 in the recording.
UNRESOLVED ISSUES:None
ALTERNATIVES:1. Recommend approval of the ordinance;
2. Recommend approval of the ordinance with modifications to the
recommended amendments;
3. Recommend denial of the ordinance based on failure to comply with
state adopted criteria for impact fees; or
4. Recommend to open and continue the public hearing on the application,
with specific request to staff to supply additional information or to address
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specific items.
FISCAL EFFECTS:None, the proposed amendments are primarily process related and do not
commit or expend money.
Attachments:
Ordinance 2169 Amending 2.06 Div 9 Impact Fees.pdf
Ordinance 2169 - Exhbit A.pdf
Text Markup Exhibit Final.pdf
Report compiled on: September 3, 2024
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Version February 2023
Ord 2169
Page 1 of 3
ORDINANCE 2169
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA REPEALING
AND REPLACING CHAPTER 2, ARTICLE 6, DIVISION 9 IMPACT FEES.
WHEREAS, Sections 7-6-1601 through 7-6-1604, MCA provide specific authority and
guidance about the necessary documentation to establish an impact fee and procedures to adopt
and administer an impact fee; and
WHEREAS, the City of Bozeman adopted an impact fee program in 1996 through
ordinance 1414 which has been amended from time to time and is codified in Chapter 2, Article
6, and Division 9 of the municipal code; and
WHEREAS, changes in wording were identified as improving the organization, clarity, and
function of the impact fee program; and
WHEREAS, public notice was provided in accordance with 7-1-4127 MCA of public
hearings before the Community Development Board in their capacity as the Impact Fee
Advisory Committee and the City Commission and the public has had opportunity to review and
comment on the language of this ordinance;
NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF
BOZEMAN, MONTANA:
Section 1
That Chapter 2, Article 6, Division 9 of the Bozeman Municipal Code be repealed in its entirety
and replaced with the wording in Exhibit A of this Ordinance.
Section 2
Repealer.
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Ordinance No. 2169, Repealing and Replacing Impact Fee Codes
Page 2 of 3
All provisions of the ordinances of the City of Bozeman in conflict with the provisions of
this ordinance are hereby, repealed and all other provisions of the ordinances of the City of
Bozeman not in conflict with the provisions of this ordinance shall remain in full force and effect.
Section 3
Savings Provision.
This ordinance does not affect the rights and duties that matured, penalties that were
incurred, or proceedings that were begun before the effective date of this ordinance. All other
provisions of the Bozeman Municipal Code not amended by this Ordinance shall remain in full
force and effect.
Section 4
Severability.
If any sentence, paragraph, subdivision, clause, phrase or section of this ordinance be
adjudged or held to be unconstitutional, illegal, or invalid, it shall not affect the validity of this
ordinance as a whole, or any part or provision thereof, other than the part so decided to be
invalid, illegal or unconstitutional, and shall not affect the validity of the remainder of this
ordinance or the Bozeman Municipal Code as a whole.
Section 5
Codification.
This Ordinance shall be codified as indicated in Section 1.
Section 6
Effective Date.
This ordinance shall be in full force and effect thirty (30) days after final adoption.
PROVISIONALLY ADOPTED by the City Commission of the City of Bozeman, Montana, on
first reading at a regular session held on the _____ day of ________________, 2024.
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Ordinance No. 2169, Repealing and Replacing Impact Fee Codes
Page 3 of 3
____________________________________
TERENCE CUNNINGHAM
Mayor
ATTEST:
____________________________________
MIKE MAAS
City Clerk
FINALLY PASSED, ADOPTED AND APPROVED by the City Commission of the City of
Bozeman, Montana on second reading at a regular session thereof held on the ___ of
____________________, 2024. The effective date of this ordinance is ______________, 2024.
_________________________________
TERENCE CUNNINGHAM
Mayor
ATTEST:
_______________________________
MIKE MAAS
City Clerk
APPROVED AS TO FORM:
_________________________________
GREG SULLIVAN
City Attorney
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Page 1 of 23
Exhibit A – Ordinance 2169
DIVISION 9. IMPACT FEES
Sec. 2.06.1600. Legislative findings.
A. The city commission finds that:
1. The protection of the health, safety, and general welfare of the citizens of the city requires that the
transportation, fire protection, water, and wastewater systems of the city be expanded and improved
to accommodate continuing growth within the city and within those areas directly served by its fire
department and within those areas connected to its water and wastewater systems.
2. New residential and nonresidential development imposes increased and excessive demands upon
existing city facilities.
3. New development will overburden existing public facilities unless it offsets increased service demand,
and the tax revenues generated from new development do not generate sufficient funds to provide
public facilities to serve the new development as the cost of construction inflation substantially
exceeds the ½ the three year average rate of inflation allowed to local governments under 15-10-420
MCA and property taxes are charged in arrears.
4. New development is expected to continue and will place ever-increasing demands on the city to
provide public facilities to serve new development.
5. The creation of an equitable development impact fee system enables the city to demonstrate and
require payment of a roughly proportionate share of the costs of required improvements to the city's
transportation, fire protection, water, and wastewater systems on those developments that create the
need for them.
6. All types of development that are not explicitly exempted from the provisions of this division will
generate demand for city's transportation, fire protection, water, and wastewater services or facilities
that will require improvements to city facilities and equipment.
7. The city's adopted impact fee service area reports set forth reasonable methodologies and analyses for
determining the impacts of various types of development on the city's transportation, fire protection,
water and wastewater systems and for determining the cost of acquiring land and the cost of acquiring
or constructing facilities and equipment necessary to meet the demands for such services created by
new development.
8. The city establishes as city standards the assumptions and service standards referenced in the impact
fee service area reports and other duly adopted documents as part of its current plans for the
transportation system and for the city's fire protection, water, and wastewater systems.
9. The documentation required by MCA 7-6-1602, is collectively contained in the city's facility plans,
impact fee service area reports, development regulations, financial records, capital improvements
program, design and specification manual, and other city documents.
10. The development impact fees described in this division are reasonably related to the service demands
and needs of new development and are based on the impact fee service area reports and
documentation cited in subsection 7 of this section and are shown to not exceed the costs of acquiring
additional land and the costs of acquiring or constructing additional facilities or equipment required to
serve the new developments that will pay the fees.
11. All transportation improvements upon which the transportation impact fees are based and upon which
transportation impact fee revenues will be spent, based on the limitations set forth in this division will
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benefit all new development in the city; and it is, therefore, appropriate to treat the entire city as a
single service area for purposes of calculating, collecting, and spending the transportation impact fees,
while recognizing differences in the demand for service based upon the identified factors set forth in
the transportation impact fee service area report.
12. All fire protection/EMS improvements upon which the fire impact fee service area report are based and
upon which fire/EMS impact fee revenues will be spent, based on the limitations set forth in this
division will benefit all new development that receives fire protection service directly from the city fire
department; and it is, therefore, appropriate to treat the entire city and all properties served directly
by the city fire department as a single service area for purposes of calculating, collecting, and spending
the fire protection impact fees.
13. All water system improvements upon which the water impact fee service area report are based and
upon which water impact fee revenues will be spent, based on the limitations set forth in this division
will benefit all new development that connects to the city water system; and it is, therefore,
appropriate to treat the entire city and all properties connected to the city water system as a single
service area for purposes of calculating, collecting, and spending the water impact fees.
14. All wastewater system improvements upon which the wastewater impact fee service area report are
based and upon which wastewater impact fee revenues will be spent, based on the limitations set
forth in this division will benefit all new development that connects to the city wastewater system; and
it is, therefore, appropriate to treat the entire city and all properties connected to the city wastewater
system as a single service area for purposes of calculating, collecting, and spending the wastewater
impact fees.
15. There is both a rational nexus and a rough proportionality between the development impacts created
by each type of development covered by this division and the development impact fees that such
development will be required to pay and the fee study and project-specific calculation process provides
an individualized determination of impacts to be mitigated by payment of the impact fee.
16. The city's facility planning, capital improvement program, development review, and bidding processes
create a public process by which, on a specific and detailed basis, the capacity expanding components of construction can be identified and funded distinctly from those components which are not capacity
expanding by providing for evaluation by the city and the impact fee advisory committee of future
needs related to growth, identification of applicable funding sources, and monitoring of construction
and payments.
17. To meet the needs of new development the city may construct capacity expanding capital
improvements prior to development of adjacent properties. This may include the construction of
capacity expanding infrastructure of a nature and in a location that may require such improvements to
be deemed project related improvements at the time of the development of such adjacent properties.
The city commission finds that under certain conditions it is fair and reasonable that the costs of a
project related improvement that have been paid by the city prior to development of certain
properties should be reimbursed at the time of development of those properties.
18. This division creates a system by which development impact fees paid by new developments will be
used to expand or improve the city transportation, fire protection, water, and wastewater systems in
ways that benefit the development that paid each fee within a reasonable period of time after the fee
is paid.
19. This division creates a system under which development impact fees must not be used to cure existing
deficiencies in public facilities or to pay maintenance or operations costs associated with providing
public facilities.
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Page 3 of 23
Sec. 2.06.1610. Authority and applicability.
A. This division is enacted pursuant to the city's self-government powers, the authority granted to the city by
the Montana State Constitution, MCA 7-6-1601 through 7-6-1604, , and the city charter.
B. The provisions of this division apply to all of the territory within the limits of the city.
C. The provisions of this division related to the fire protection impact fees apply to all properties located
outside the city that are served directly by the city fire department.
D. The provisions of this division related to water impact fees apply to all properties located outside the city
that are connected to the city water system.
E. The provisions of this division related to wastewater impact fees apply to all properties located outside the
city that are connected to the city wastewater system.
F. The provisions of this division related to the establishment of transportation, fire/EMS, water, and sewer
reimbursement districts applies to properties located outside the city that are deemed to benefit from
capacity expansion.
Sec. 2.06.1620. Intent of division.
A. This division implements the growth policy/land use plan of the city, the city's most recently adopted long
range transportation plan, the most recently adopted water facility plan, the most recently adopted
wastewater facility plan, and the most recently adopted fire protection/EMS master plan.
B. SEnsure that new development bears its proportionate share of the cost of improvements to the city
transportation, fire protection, water, and wastewater systems; to ensure that such proportionate share
does not exceed the roughly proportionate cost of the transportation, fire protection, water, and wastewater
facilities and equipment required to serve such new developments.
C. It is the further intent of this division that new development pay for its roughly proportionate share of public
facilities through the imposition of development impact fees that will be used to finance, defray, or
reimburse all or a portion of the costs incurred by the city to construct improvements to the city
transportation, fire protection, water, and wastewater systems that serve or benefit impact fee payers.
D. Prevent the collection of money through impact fees from new development in excess of the reasonably
foreseeable, logically connected, and roughly proportional amount necessary to offset new demands for
transportation, fire protection, water, or wastewater improvements generated by that new development
within the service area as established in the service area report for each fee type.
E. No moneys collected from any development impact fee and deposited in an impact fee fund may be co-
mingled with moneys from a different impact fee fund or ever be used for a type of facility or equipment
different from that for which the fee was paid.
F. Any funds paid pursuant to a reimbursement district established in this division or payback district
established through other municipal authority do not replace or reduce any impact fees imposed upon
development.
Sec. 2.06.1630. Definitions.
A. The following words, terms and phrases, when used in this division, have the meanings ascribed to them in
this section, except where the context clearly indicates a different meaning:
1. "Capacity expanding capital improvements" means improvements that increase the functional capacity
of the city's water system, wastewater system, fire protection and emergency medical service system,
or transportation system. This term may include capital improvements that if constructed in advance of
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Page 4 of 23
development may meet the definition of "project related improvements" when development of
adjacent property occurs.
2. "Central Business District" (CBD) means the land area encompassed within the B-3, "Central Business
District," zoning district as of [the effective date of this ordinance].
3. "Development" means any construction or expansion of a building, structure, or use, any change in use
of a building or structure, or any change in the use of land, which creates additional demand for public
services.
4. "Development impact fees" means the transportation impact fee, fire protection impact fee, water
impact fee, and wastewater impact fee established by this division.
5. "Encumber" means to legally obligate by contract, or otherwise commit to use by appropriation or
other official act of the city.
6. Fee schedule means the listing of the dollar cost of each impact fee as established in the most recent
service area report and as adjusted annually for inflation.
7. "Impact fee capital improvement program" means the capital improvements program for the
transportation system, the city fire protection system, and the city water and wastewater systems,
which assigns moneys from each impact fee fund to specific projects and related expenses for
improvements to the type of facilities or services for which the fees in that fund were paid, and must
not include improvements needed to correct existing deficiencies or operations or maintenance costs.
8. "Impact fee coordinator" means the director of the city's department of community development or
designee.
9. "Impact fee funds" means the transportation impact fee fund, fire protection impact fee fund, water
impact fee fund, and wastewater impact fee fund established by this division.
10. "Impact fee studies" means the service area reports most recently adopted by resolution of the city
commission for each impact fee which set forth reasonable methodologies and analyses for
determining the impacts of various types of development on the city's transportation, fire protection
and emergency medical services, water and wastewater systems or other services or facilities for which
an impact fee may be charged and for determining the cost of acquiring land and the cost of acquiring
or constructing facilities and equipment necessary to meet the demands for such services created by
new development.
11. "Improvement" means planning, land acquisition, engineering design, construction inspection, on-site
construction, off-site construction, equipment purchases, and financing costs associated with new or
expanded facilities, buildings, and equipment that expand the capacity of a facility or service system
and that have an average useful life of at least ten years. The term "improvement" does not include
maintenance, operations, or improvements that do not expand capacity.
12. "Independent fee calculation study" means a study prepared by an applicant for a building permit or
water or wastewater connection permit calculating the cost of expansions or improvements to the
city's transportation, fire protection, water, or wastewater systems required to serve the applicant's
proposed development; that is performed on an average cost (not marginal cost) methodology; uses
the service units and unit construction costs stated in the impact fee studies; and is performed in
compliance with any criteria for such studies established by this division or by the city.
13. "Initiation of construction" means the date of the preconstruction meeting with the city engineer, or
the date of the first visible change in the physical condition of the improved site caused by the first
person furnishing services or materials to effect construction of the improvement, whichever occurs
first.
14. "Maintenance" means replacement, repair, or caring for a constructed water, sewer, fire/EMS, or
transportation facility to preserve them in a functional state equal to their initial installed design; and
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which does not change the basic design or structure or change them from their original purpose.
Activities that change the scope of a project beyond the original design are not included in this
definition.
15. “Payback district” means a legal mechanism for an entity that installs incidental excess capacity that
benefits future development and is not funded by or eligible for impact fees to recapture a
proportionate share of the value of installed excess capacity from benefited landowners.
16. "Project-related improvements" means site-related improvements including, without limitation, all
access streets including sidewalks adjacent to the proposed development or leading only to the
proposed development and not included on the transportation system; all streets, driveways, and
pedestrian/bicycle facilities within the development; all acceleration, deceleration, right, or left turn
lanes leading to any streets and driveways within the development; all traffic control devices for
streets and driveways within the development; all water lines or facilities adjacent to, leading to, or
located within the development and serving only the development; all wastewater lines or facilities
adjacent to, leading to, or located within and serving only the development; and all off-site
improvements necessary for the safety and code compliance of a development. Credit for incidental
improvements is not allowed. It is presumed that the minimum improvement needed to serve a
project is a project improvement even if additional capacity is thereby created that may be potentially
used by other developments presently or in the future.
17. “Reimbursement district” means a legal mechanism to recoup the costs of project-related
improvements funded by impact fees as part of initial installation of a larger capacity expanding
improvement greater than project-related improvements.
18. "Transportation system" means existing or planned collectors or arterial streets, including associated
non-motorized travel elements and which are either included on the most current long range
transportation plan or the city's impact fee capital improvement program.
19 "Trip exchange district" means a defined geographic area where there is a demonstrated significant
reduction in new vehicle trips below that established in the transportation service area report.
Sec. 2.06.1640. General Requirements.
A. Interest earned on moneys in any impact fee fund is part of such fund and is subject to the same restrictions
on use applicable to the impact fees deposited in such fund.
B. No moneys from any impact fee fund may be spent for periodic or routine maintenance of any facility of any
type or to cure deficiencies in public facilities.
C. Nothing in this division restricts the city from requiring an applicant to construct reasonable project related
improvements required to serve the applicant's project, whether or not such improvements are of a type for
which credit is available under section 2.06.1700.
D. The city must maintain accurate records of the development impact fees paid, including the name of the
person paying such fees, the project for which the fees were paid, the date of payment of each fee, the
amounts received in payment for each fee, and any other matters that the city deems appropriate or
necessary to the accurate accounting of such fees, and such records must be available for review by the
public during city business hours.
E. 1. The city manager must present to the city commission a proposed impact fee capital improvements
program consistent with section 5.07 of the city charter for the transportation system, fire protection
system, water system, and wastewater system, which identifies the capacity-adding capital improvements
that will benefit new development subject to the terms of this division, exclusive of any improvements
needed to correct existing deficiencies or for operation or maintenance purposes. The city commission must
approve the capital program consistent with section 5.08 of the city charter.
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2. The capital improvements program must assign moneys from each impact fee fund to specific projects and
related expenses for improvements to the type of facilities or services for which the fees in that fund were
paid. Any moneys, including any accrued interest, not assigned to specific projects within such capital
improvements program and not expended pursuant to section 2.06.1690 or 2.06.1700 must be retained in
the same impact fee fund until the next fiscal year. The impact fee capital improvements program schedules
the construction of capital improvements to serve projected growth and project capital improvement costs,
expenditures and impact fee fund revenues for a five-year period. The individual fee funds shall maintain a
positive fiscal balance.
3. The city manager shall adopt and revise, as needed, an administrative impact fee manual to carry out the
purposes of this division. The manual must address processes, further definitions as needed, special cases for
calculation of fees, independent fee studies, calculation of credits, deferral processes, and appeals.
F. Updating of impact fee information.
1. The facility plans described in this division must be reviewed by the city at least once every five years
and if a revision of a facility plan to address changed conditions is deemed necessary by the city, the
plan must be updated.
2. The development impact fees described in this division, fee studies, data and analysis relied upon and
required by MCA 7-6-1602, and the administrative procedures and manual of this division must be
updated at least once every four fiscal years.
3. The purpose of the review and updating of impact fee related documentation is to ensure that:
a. The demand and cost assumptions underlying such fees are still valid;
b. The resulting fees do not exceed reasonable estimates of the cost of constructing improvements
that are of the type for which the fee was paid and that are required to serve new development;
c. The moneys collected or to be collected in each impact fee fund have been, and are expected to
be, spent for improvements of the type for which such fees were paid; and
d. That such improvements will benefit those developments for which the fees were paid.
G. The development impact fees shown in the most recently adopted impact fee studies must be adjusted
annually to reflect the effects of inflation on those costs for improvements set forth in the impact fee
studies. On January 1st of each year unless and until the impact fee studies are revised or replaced, and then
beginning in the subsequent calendar year, each fee amount set forth in each such study must be adjusted
by multiplying such amount by one plus the value of the Construction Cost Index published in the first
December edition of the current year. (Source: Engineering News Record.) Such adjustments in such fees
become effective immediately upon calculation by the city and do not require additional action by the city
commission to be effective.
Sec. 2.06.1650. Transportation impact fees.
A. Imposition of transportation impact fees.
1. Any person who seeks to obtain any of the following forms of development approval is required to pay
a transportation impact fee in the amount specified in the commission resolution adopting the most
recent transportation impact fee study and establishing the transportation impact fee and as updated
as required in this division.
a. A building permit;
b. Any other permit that will result in the construction of improvements that will generate
additional demand for transportation services; or
c. Any delayed payment of impact fees as specified and approved by the city commission in
accordance with division 38.380.
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2. Notwithstanding subsection A.1 of this section, no impact fee may be imposed earlier than the
issuance of a building permit for developments requiring a building permit. Development generating
additional demand for service and not requiring a building permit must pay impact fees prior to the
action of the City that authorizes initiation of construction.
3. No permits of the types described in subsection A.1 of this section may be issued until the
transportation impact fee described in this division has been paid, unless the development for which
the permit is sought is exempted by subsection F of this section; or unless deferral of payment of the
transportation impact fee has been approved by the impact fee coordinator pursuant to a deferral
program approved by resolution of the Commission in compliance with 2.06.1720.
B. Computation of amount of transportation impact fee.
1. An applicant required by this division to pay a transportation impact fee may choose to have the
amount of such fee determined pursuant to either subsection B.2 or B.3 of this section.2. Unless
an applicant requests that the city determine the amount of such fee pursuant to subsection B.3 of this
section, the city must determine the amount of the required transportation impact fee by reference to
the most recently adopted transportation impact fee schedule. The fee amounts set forth in such study
include credits for expected future receipts of state and federal highway funds and expected future
receipts of gas tax revenues, and all other non-impact fee sources of funding anticipated to be made by
or as a result of new development to be applied to the transportation improvements required to serve
new development.
a. If a development is of a type not listed in the most recently adopted transportation impact fee
service area report, then the city must use the fee applicable to the most nearly comparable type
or land use in thereport. In making a decision about which use is most nearly comparable, the
city is guided by the most recent edition of "Trip Generation: An Information Report" prepared by
the Institute of Transportation Engineers; or if such publication is no longer available, then by a
similar publication. If the city determines that there is no comparable type of land use listed in
the study, then a new fee must be determined by:
(1) Finding the most nearly comparable trip generation rate from the publication noted in
subsection B.2.a. of this section; and
(2) Applying an independent fee study as set forth in subsection B.3.d of this section.
b. If the applicant's development includes a mix of those uses listed in the most recently adopted
transportation impact fee study, then the fee is determined by adding up the fees that would be
payable for each use if it were a freestanding use pursuant to the most recently adopted
transportation impact fee study.
c. If the applicant is applying for an extension of a permit issued previously, then an additional fee is
necessary and that fee is the net increase between the fee applicable at the time of the current
permit extension application and any transportation impact fee previously paid pursuant to this
division for the same structure. In the event that the fee applicable at the time of the current
extension permit application is lower than the transportation impact fee previously paid pursuant
to this division for the same structure, no refund of transportation impact fees previously paid is
allowed. If fees are not yet paid, the amounts due prior to permit issuance will be updated based
on the date of the extension application.
d. If the applicant is applying for a permit to allow a change of use or the expansion,
redevelopment, or modification of an existing development, the fee must be based on the net
positive increase in the fee for the new use as compared to the previous use. However, no new
fee may be imposed unless additional service demand is created, in accordance with the most
recently adopted transportation impact fee study. If necessary to determine such net increase,
the city must be guided by the most recent edition of "Trip Generation Manual" prepared by the
Institute of Transportation Engineers; or if such publication is no longer available, then by a
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similar publication. In the event that the proposed change of use, expansion, redevelopment, or
modification results in a net decrease in the fee for the new use or development as compared to
the previous use or development, no refund of transportation impact fees previously paid is
allowed.
3. Prior to issuance of a building permit, an applicant may request that the city determine the amount of
the required transportation impact fee by reference to an independent fee calculation study for the
applicant's development prepared by qualified professional traffic engineers and/or economists at the
applicant's cost and submitted to the city engineer. Any such study must show the traffic engineering
and economic methodologies and assumptions used, including, but not limited to, those forms of
documentation listed in subsections B.3.a and B.3.b of this section and must be acceptable to the city
pursuant to subsection B.3.c of this section.
a. Traffic engineering studies must include documentation of trip generation rates, trip lengths, any
percentage of trips from the site that represent net additions to current trips from the site, the
percentage of trips that are new trips as opposed to pass-by or divert-link trips, and any other
trip data for the proposed land use.
b. Economic studies must include documentation of any special factors that the applicant believes
will reduce the traffic volumes otherwise attributable to the proposed land use.
c. The city must consider all such documentation and any independent fee calculation study
submitted by the applicant. The city is not required to accept any such study or documentation
that the city deems to be inaccurate or unreliable and may request that the applicant submit
additional or different documentation for consideration. Any independent fee calculation study
submitted by an applicant may be accepted, rejected, or accepted with modifications by the city
as the basis for calculating transportation impact fees.
d. The city will review and determine whether or not to accept a customized calculation within 90
calendar days of submittal. If accepted, the city will use the customized calculation in assessing
the fee and no further correspondence is required. If the city rejects a customized calculation the
city will inform the applicant of the reasons in writing.
e. Upon acceptance, or acceptance with modifications, of an independent fee calculation study and
documentation, the city will use the formulas and methodology contained within the most
recently adopted transportation impact fee study to determine the transportation impact fee.
C. Payment of transportation impact fee.
1. All funds paid by an applicant pursuant to this division must be identified as transportation impact fees
and must be promptly deposited in the transportation impact fee fund described in subsection D of this
section.
D. Transportation impact fee funds.
1. A single transportation impact fee fund is created and such fund must be maintained in an interest
bearing account.
2. Such fund must contain those transportation impact fees collected pursuant to this division and any
interest which may accrue from time to time on such amounts.
3. Such fund may also contain reimbursements collected pursuant to subsection 2.06.1650.F.
E. Use of transportation impact fee funds. The moneys in the transportation impact fee fund must be used only
as follows:
1. To acquire land for and/or acquire or construct capacity expanding capital improvements to the
transportation system reasonably related to the benefits accruing to new development subject to the
terms of this division, in accordance with the requirements of state law; or
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2. To pay debt service on such capital improvements to the transportation system; or
3. For purposes of refunds or credits, as described in section 2.06.1690 or 2.06.1700; and
4. May not be used for:
a. Operations or maintenance purposes; or
b. To correct existing deficiencies.
F. Transportation impact fee reimbursement. When the commission determines to fund capacity expanding
capital improvements to the transportation system and the commission determines prior to expenditure of
funds for such improvements that, upon future development, such improvements may be considered project
related improvements the commission may by resolution create a transportation impact fee reimbursement
district. The resolution creating the district must:
1. Identify the specific transportation system improvements that will be subject to reimbursement if
determined at a later date to be a project related improvement;
2. Identify the real property to be included in such district wherein future development may be required
to provide reimbursement;
3. Identify the rationale for the commission's determination that such improvements may be considered
in the future to be project related improvements;
4. Identify the estimated amount of repayment that will be due from each property, the methodology for
adjusting the estimated amount to the actual costs of construction, and the methodology for
determining such amount;
5. Identify whether the amount of repayment will account for the time value of the initial expenditure,
and if so, describe the calculation methodology;
6. Identify the period of time the reimbursement district will exist; and
7. Identify the required timing of payment of the reimbursement which may be upon annexation or prior
to final subdivision or site plan approval, and in no case later than issuance of a building permit.
Prior to adoption of a resolution creating the reimbursement district, the city must provide 15 business days
written notice to owners of real property within the proposed district.
G. Exemptions from transportation impact fee.
1. The following types of development are exempt from payment of the transportation impact fee:
a. Alterations, remodeling, rehabilitations, expansions of existing buildings, or other improvements
to an existing structure where no additional vehicle trips will be produced over and above those
produced by the existing use;
b. Construction of accessory buildings or structures that will not produce additional vehicle trips
over and above those produced by the primary building or land use;
c. The replacement of a destroyed or partially destroyed building or structure with a new building
or structure of the same size and use where no additional vehicle trips will be produced over and
above those produced by the original building or structure;
d. The installation or replacement of a mobile home on a lot or a mobile home site when a
transportation impact fee for such lot or site has previously been paid pursuant to this division or
where a mobile home legally existed on such site on or prior to the effective date of the
ordinance from which this division is derived; and
e. Any other type of development for which the applicant can demonstrate that the proposed land
use and development will produce no more vehicle trips from such site over and above the trips
from such site prior to the proposed development, or for which the applicant can show that a
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transportation impact fee for such site has previously been paid in an amount that equals or
exceeds the transportation impact fee that would be required by this division for such
development.
2. Any such claim for exemption must be made no later than the time when the applicant applies for the
first permit or a type listed in subsection A.1 of this section for the proposed development, and any
claim for exemption not made at or before that time is waived.
3. The city must determine the validity of any claim for exemption pursuant to the criteria set forth in
subsection G.1 .
H. A trip exchange district is established through an independent fee study or similar data through a service
area report. Areas where a trip exchange district may be established have the majority of the following
characteristics:
1. The use of shared and consolidated parking;
2. A high degree of pedestrian and bicycle access to and throughout the proposed development;
3. The availability of public transit;
4. Extensive trip capture within the existing and proposed development where trips to the proposed
development result in visits to multiple destinations in the area via a mode other than automobile;
5. Diverse business proprietorships within the development;
6. Primary use at the ground floor is non-residential;
7. The majority of individual businesses within the development are less than 20,000 square feet;
8. Structures within the development are near to each other and the public street (with small or no
setbacks);
9. The majority of buildings associated with the proposed development are multi-story building, often
more than two stories;
10. Having a high percentage building coverage on the lot and typically in excess of 0.5;
11. The physical characteristics are shared among the entire area, not just one or a few businesses;
12. The area is at least 50 percent developed as measured by lot area utilized; and
13. The area is the subject of a city enforceable common plan of development, such as an urban renewal
plan or master site plan.
Sec. 2.06.1660. Fire protection and emergency medical service impact fees.
A. Imposition of fire protection and emergency medical service impact fees.
1. Any person who seeks to obtain any of the following forms of development approval is required to pay
a fire/EMS impact fee in the amount specified in the commission resolution adopting the most recent
fire/EMS impact fee study and establishing the fire/EMS impact fee and as updated as required in this
division:
a. A building permit; or
b. Any other permit that will result in construction that will generate demand for fire protection
services; or
c. Any delayed payment of impact fees as specified and approved by the city commission in
accordance with division 38.380.
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2. Notwithstanding subsection A.1 of this section, no impact fee may be imposed earlier than the
issuance of a building permit for developments requiring a building permit. Development generating
additional demand for service and not requiring a building permit must pay impact fees prior to the
action of the City that authorizes initiation of construction.
3. No permits of the types described in subsection A.1 of this section may be issued until the fire
protection/EMS impact fee described in this division has been paid, unless the development for which
the permit is sought is exempted by subsection F of this section; or unless deferral of payment of the
fire protection/EMS impact fee has been approved by the city pursuant to a deferral program approved
by resolution of the commission in compliance with 2.06.1720.
B. Computation of amount of fire protection/EMS impact fee.
1. An applicant required by this division to pay a fire protection/EMS impact fee may choose to have the
amount of such fee determined pursuant to either subsection B.2 or B.3 of this section.
2. Unless an applicant requests that the city determine the amount of such fee pursuant to subsection B.3
of this section, the city must determine the amount of the required fire protection impact fee by
reference to the most recently adopted fire impact fee service area report.
a. If a development is not of a type listed in the most recently adopted fire/EMS impact fee service
area report , then the city must use the fee applicable to the most nearly comparable type or
land use in the service area report.
b. If the type of development that a permit is applied for includes a mix of those uses listed in the
most recently adopted fire impact fee study, then the fee must be determined by adding up the
fees that would be payable for each use if it were a freestanding use pursuant to the most
recently adopted fire impact fee service area report.
c. If the applicant is applying for an extension of a permit issued previously, then an additional fee is
necessary and that fee is the net increase between the fee applicable at the time of the current
permit application and any fire protection impact fee previously paid pursuant to this division for
the same structure. In the event that the fee applicable at the time of the current extension
permit application is lower than the fire protection impact fee previously paid pursuant to this
division for the same structure, no refund of fire protection impact fees previously paid is
allowed. If fees are not yet paid, the amounts due prior to permit issuance will be updated based
on the date of the extension application.
d. If the applicant is applying for a permit to allow a change of use or for the expansion,
redevelopment, or modification of an existing development, the fee is based on the net increase
in the fee for the new use as compared to the previous use. In the event that the proposed
change of use, expansion, redevelopment, or modification results in a net decrease in the fee for
the new use or development as compared to the previous use or development, no refund of fire
protection impact fees previously paid is allowed.
3. Prior to issuance of a building permit, an applicant may request that the city determine the amount of
the required fire/EMS protection impact fee by reference to an independent fee calculation study for
the applicant's development prepared at the applicant's cost by qualified professional fire protection
experts and/or economists and submitted to the city fire chief. Any such study must be based on the
same service standards and unit costs for fire protection/EMS used in the most recently adopted
fire/EMS impact fee service area report, and must document the economic methodologies and
assumptions used.
a. Independent fee calculation studies must include documentation of rate of calls for service,
required service standard, and any other relevant data for the proposed land use.
b. Economic studies must include documentation of any special factors that the applicant believes
will reduce the service demand otherwise attributable to the proposed land use.
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c. The city must consider all such documentation and any independent fee calculation study
submitted by the applicant. The city is not required to accept any such study or documentation
that the city deems to be inaccurate or unreliable and may request that the applicant submit
additional or different documentation for consideration. Any independent fee calculation study
submitted by an applicant may be accepted, rejected, or accepted with modifications by the city
as the basis for calculating transportation impact fees.
d. The city will review and determine whether or not to accept a customized calculation within 90
calendar days of submittal. If accepted, the city will use the customized calculation in assessing
the fee and no further correspondence is required. If the city rejects a customized calculation the
city will inform the applicant of the reasons in writing.
e. Upon acceptance, or acceptance with modifications, of an independent fee calculation study and
documentation, the city will use the formulas and methodology contained within the most
recently adopted transportation impact fee study to determine the transportation impact fee.
C. Payment of fire protection/EMS impact fees.
1. All funds paid by an applicant pursuant to this division must be identified as fire protection/EMS impact
fees and must be promptly deposited in the fire protection/EMS impact fee fund described in
subsection D of this section.
D. Fire protection/EMS impact fee funds.
1. A single fire protection/EMS impact fee fund is created and such fund must be maintained in an
interest bearing account.
2. Such fund must contain those fire protection/EMS impact fees collected pursuant to this division and
any interest which may accrue from time to time on such amounts.
3. Such fund may also contain reimbursements collected pursuant to section 2.06.1660.F.
E. Use of fire protection/EMS impact fee funds. The moneys in the fire protection/EMS impact fee fund must be
used only:
1. To acquire or construct capacity expanding fire protection/EMS improvements within the city; or
2. To pay debt service on any portion of any future general obligation bond issue or revenue bond issue
used to finance the acquisition or construction of fire protection/EMS improvements within the city; or
3. As described in section 2.06.1690 or 2.06.1700.
F. Fire protection/EMS impact fee reimbursement. When the commission determines to fund capacity
expanding capital improvements to the fire protection/EMS system and the commission determines prior to
expenditure of funds for such improvements that, upon future development, such improvements may be
considered project related improvements the commission may by resolution create a fire protection/EMS
impact fee reimbursement district. The resolution creating the district must:
1. Identify the specific fire protection/EMS improvements that will be subject to reimbursement if
determined at a later date to be a project related improvement;
2. Identify the real property to be included in such district wherein future development may be required
to provide reimbursement;
3. Identify the rationale for the commission’s determination that such improvements may be considered
in the future to be project related improvements;
4. Identify the estimated amount of repayment that will be due from each property, the methodology for
adjusting the estimated amount to the actual costs of construction, and the methodology for
determining such amount;
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5. Identify whether the amount of repayment will account for the time value of the initial expenditure,
and if so, describe the calculation methodology;
6. Identify the period of time the reimbursement district will exist; and
7. Identify the required timing of payment of the reimbursement which may be upon annexation or prior
to final subdivision or site plan approval, and in no case later than issuance of a building permit.
Prior to adoption of a resolution creating the reimbursement district, the city must provide 15 business days
written notice to owners of real property within the proposed district.
G. Exemptions from fire protection/EMS impact fee.
1. The following types of development are exempted from payment of the fire protection/EMS impact
fee:
a. Reconstruction or replacement of a previously existing residential unit that does not create any
additional or larger residential units.
b. Construction of unoccupied accessory structures related to a residential unit.
c. Projects that the applicant can demonstrate will produce no greater demand for fire
protection/EMS from such land than existed prior to issuance of such permit.
d. Projects for which a fire protection/EMS impact fee has previously been paid in an amount that
equals or exceeds the fire protection/EMS impact fee that would be required by this division.
2. Any such claim for exemption must be made no later than the time when the applicant applies for the
first permit of a type listed in subsection A.1 of this section for the proposed development, and any
claim for exemption not made at or before that time is waived.
3. The city must determine the validity of any claim for exemption pursuant to the criteria set forth in
subsection G.1 .
Sec. 2.06.1670. Water impact fees.
A. Imposition of water impact fees.
1. Any person who seeks to obtain a permit for connection to the city water system, or who is subject to
subsection B.2.b of this section and applies for a city permit to expand or add to the structure served
by a previously approved water connection is required to pay a water impact fee in the amount
specified in the commission resolution adopting the water impact fee service area report and
establishing the water impact fee and as updated as required in this division; or
2. Any delayed payment of impact fees as specified and approved by the city commission in accordance
with division 38.380.
3. No permits for connection to the city water system may be issued until the water impact fee described
in this division has been paid, unless the development for which the permit is sought is exempted by
subsection F of this section; or unless deferral of payment of the water impact fee has been approved
by the city pursuant to a deferral program approved by resolution of the commission in compliance
with 2.06.1720.
B. Computation of amount of water impact fee.
1. An applicant required by this division to pay a water impact fee may choose to have the amount of
such fee determined pursuant to either subsection B.2 or B.3 of this section.
2. The city must determine the amount of the required water impact fee by reference to the most
recently adopted water impact fee schedule unless the applicant chooses to submit an individualized
calculation pursuant to subsection B.3.a of this section or the city determines the application to be
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subject to subsection B.3.b of this section. If the applicant is applying for a replacement for a water
connection permit issued previously or extension for a permit, then the fee is the net positive
difference between the service demand and associated fee applicable at the time of the current permit
application and the service demand for which a water impact fee was previously paid pursuant to this
division for the same structure. In the event that the fee applicable at the time of the replacement
permit application is lower than the water impact fee previously paid pursuant to this division for the
same structure, no refund of water impact fees previously paid is allowed.
3. Individualized calculations.
a. An applicant may request that the city determine the amount of the required water impact fee
by reference to an independent fee calculation study for the applicant's development prepared
at the applicant's cost by a professional engineer and/or economist and submitted to the city
transportation and engineering director. Any such study must be based on the same service
standards and unit costs used in the most recently adopted water impact fee study and must
document the economic methodologies and assumptions used.
1. Independent fee calculation studies must include documentation of rate of calls for service,
required service standard, and any other relevant data for the proposed land use.
2. Economic studies must include documentation of any special factors that the applicant
believes will reduce the service demand otherwise attributable to the proposed land use.
3. The city must consider all such documentation and any independent fee calculation study
submitted by the applicant. The city is not required to accept any such study or
documentation that the city deems to be inaccurate or unreliable and may request that the
applicant submit additional or different documentation for consideration. Any independent
fee calculation study submitted by an applicant may be accepted, rejected, or accepted
with modifications by the city as the basis for calculating transportation impact fees.
4. The city will review and determine whether or not to accept a customized calculation
within 90 calendar days of submittal. If accepted, the city will use the customized
calculation in assessing the fee and no further correspondence is required. If the city rejects
a customized calculation the city will inform the applicant of the reasons in writing.
5. Upon acceptance, or acceptance with modifications, of an independent fee calculation
study and documentation, the city will use the formulas and methodology contained within
the most recently adopted transportation impact fee study to determine the transportation
impact fee.
b. The city may identify a user as having extraordinary demands for water service which are not
accurately represented by the average usage which was relied upon by the methodology which
generated the calculated charges in the most recently adopted water impact fee study. In this
circumstance the city must prepare a customized calculation based upon the most recently
adopted water impact fee service area report.
1. The impact fee paid for water meters larger than three inches may be adjusted based on
actual usage. If usage is greater than 110 percent of anticipated volume during the 12-
month period of time beginning six months after building occupancy is granted by the city,
an additional impact fee may be charged, using the same techniques for calculating peak
day and storage EDUs and multiplying by the peak day impact fee cost per EDU and the
storage impact fee cost per EDU then in effect. The additional impact fee is the positive net
demand between a previously calculated impact fee and the impact fee based upon the
metered demand.
C. Payment of water impact fee.
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1. All funds paid by an applicant pursuant to this section must be identified as water impact fees and
must be promptly deposited in the water impact fee fund described in subsection D of this section.
D. Water impact fee funds.
1. A single water impact fee fund is created and such fund must be maintained in an interest bearing
account.
2. Such fund must contain those water impact fees collected pursuant to this division and any interest
which may accrue from time to time on such amounts.
3. Such fund may also contain reimbursements collected pursuant to section 2.06.1670.F.
E. Use of water impact fee funds. The moneys in the water impact fee fund must be used only:
1. To acquire or construct capacity expanding improvements to the city water system; or
2. To pay debt service on any portion of any future general obligation bond issue or revenue bond issue
used to finance improvements to the city water system; or
3. As described in section 2.06.1690 or 2.06.1700.
F. Water impact fee reimbursement. When the commission determines to fund capacity expanding capital
improvements to the water system and the commission determines prior to expenditure of funds for such
improvements that, upon future development, such improvements may be considered project related
improvements the commission may by resolution create a water impact fee reimbursement district. The
resolution creating the district must:
1. Identify the specific water improvements that will be subject to reimbursement if determined at a later
date to be a project related improvement;
2. Identify the real property to be included in such district wherein future development may be required
to provide reimbursement;
3. Identify the rationale for the commission's determination that such improvements may be considered
in the future to be project related improvements;
4. Identify the estimated amount of repayment that will be due from each property, the methodology for
adjusting the estimated amount to the actual costs of construction, and the methodology for
determining such amount;
5. Identify whether the amount of repayment will account for the time value of the initial expenditure,
and if so, describe the calculation methodology;
6. Identify the period of time the reimbursement district will exist; and
7. Identify the required timing of payment of the reimbursement which may be upon annexation or prior
to final subdivision or site plan approval, and in no case later than issuance of a building permit.
Prior to adoption of a resolution creating the reimbursement district, the city must provide 15 business days
written notice to owners of real property within the proposed district.
G. Exemptions from water impact fees.
1. The following types of development are exempt from payment of the water impact fee:
a. Alteration or expansion of an existing nonresidential building that does not require an additional
or larger water meter;
b. Replacement of a nonresidential building or structure of the same size that does not require an
additional or larger water meter;
c. The reconstruction or replacement of a previously existing residential unit that does not create
any additional or larger residential units.
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2. The installation of fire lines for fire protection are exempt from payment of the water impact fee.
3. Any such claim for exemption must be made no later than the time when the applicant applies for the
first permit of a type listed in subsection A.1 of this section for the proposed development, and any
claim for exemption not made at or before that time is waived.
4. The city must determine the validity of any claims for exemption pursuant to the criteria set forth in
subsections G.1 and G.2 of this section.
Sec. 2.06.1680. Wastewater impact fees.
A. Imposition of wastewater impact fees.
1. Any person who seeks to obtain a permit for connection to the city wastewater system, or who is
subject to subsection B.2.b of this section and applies for a city permit to expand or add to the
structure served by a previously approved water connection is required to pay a wastewater impact
fee in the amount specified in the commission resolution adopting the wastewater impact fee service
area report and establishing the wastewater impact fee and as updated as required in this division; or
2. Any delayed payment of impact fees as specified and approved by the city commission in accordance
with division 38.380.
3. No permits for connection to the city water system may be issued until the water impact fee described
in this division has been paid, unless the development for which the permit is sought is exempted by
subsection F of this section; or unless deferral of payment of the wastewater impact fee has been
approved by the city pursuant to a deferral program approved by resolution of the commission in
compliance with 2.06.1720.
B. Computation of amount of wastewater impact fee.
1. An applicant required by this division to pay a water impact fee may choose to have the amount of
such fee determined pursuant to either subsection B.2 or B.3 of this section.
2. The city must determine the amount of the required wastewater impact fee by reference to the most
recently adopted wastewater impact fee schedule unless the applicant chooses to submit an
individualized calculation pursuant to subsection B.3.a of this section or the city determines the
application to be subject to subsection B.3.b of this section. If the applicant is applying for a
replacement for a wastewater connection permit issued previously or extension for a permit, then the
fee is the net positive difference between the service demand and associated fee applicable at the time of the current permit application and any wastewater impact fee previously paid pursuant to this
division for the same structure. In the event that the fee applicable at the time of the replacement
permit application is lower than the wastewater impact fee previously paid pursuant to this division for
the same structure, no refund of wastewater impact fees previously paid is allowed.
3. Individualized calculations.
a. An applicant may request that the city determine the amount of the required wastewater impact
fee by reference to an independent fee calculation study for the applicant's development
prepared at the applicant's cost by a professional engineer and/or economist and submitted to
the city transportation and engineering director. Any such study must be based on the same
service standards and unit costs used in the most recently adopted wastewater impact fee study
and must document the economic methodologies and assumptions used.
a. Independent fee calculation studies must include documentation of rate of calls for service,
required service standard, and any other relevant data for the proposed land use.
b. Economic studies must include documentation of any special factors that the applicant believes
will reduce the service demand otherwise attributable to the proposed land use.
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c. The city must consider all such documentation and any independent fee calculation study
submitted by the applicant. The city is not required to accept any such study or documentation
that the city deems to be inaccurate or unreliable and may request that the applicant submit
additional or different documentation for consideration. Any independent fee calculation study
submitted by an applicant may be accepted, rejected, or accepted with modifications by the city
as the basis for calculating transportation impact fees.
d. The city will review and determine whether or not to accept a customized calculation within 90
calendar days of submittal. If accepted, the city will use the customized calculation in assessing
the fee and no further correspondence is required. If the city rejects a customized calculation the
city will inform the applicant of the reasons in writing.
e. Upon acceptance, or acceptance with modifications, of an independent fee calculation study and
documentation, the city will use the formulas and methodology contained within the most
recently adopted transportation impact fee study to determine the transportation impact fee.
b. The city may identify a user as having extraordinary demands for wastewater service which are
not accurately represented by the average usage which was relied upon by the methodology in
the most recently adopted wastewater impact fee study. In this circumstance the city must
prepare a customized calculation based upon the methodology in the water impact fee study.
When applicable an adjustment to the wastewater treatment portion of the impact fee for high
strength discharge will be applied.
(1) The impact fee paid for water meters larger than three inches may be adjusted based on
actual usage. If usage is greater than 110 percent of anticipated volume or other measure
of demand during the 12-month period of time beginning six months after building
occupancy is granted by the city, an additional impact fee may be charged, using the same
techniques for calculating treatment and collection in EDUs and multiplying by the impact
fee cost per EDU. The additional impact fee is the positive net demand between a
previously calculated impact fee and the impact fee based upon the metered demand.
C. Payment of wastewater impact fee.
1. All funds paid by an applicant paid pursuant to this section must be identified as wastewater impact
fees and must be promptly deposited in the wastewater impact fee fund described in subsection D of
this section.
D. Wastewater impact fee funds.
1. A single wastewater impact fee fund is created and such fund must be maintained in an interest
bearing account.
2. Such fund must contain those wastewater impact fees collected pursuant to this division and any
interest which may accrue from time to time on such amounts.
3. Such fund may also contain reimbursements collected pursuant to section 2.06.1680.F.
E. Use of wastewater impact fee funds. The moneys in the wastewater impact fee fund must be used only:
1. To acquire or construct capacity expanding improvements to the city wastewater system; or
2. To pay debt service on any portion of any future general obligation bond issue or revenue bond issue
used to finance improvements to the city wastewater system; or
3. As described in section 2.06.1690 or section 2.06.1700.
F. Wastewater impact fee reimbursement. When the commission determines to fund capacity expanding
capital improvements to the wastewater system and the commission determines prior to expenditure of
funds for such improvements that, upon future development, such improvements may be considered project
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related improvements the commission may by resolution create a wastewater impact fee reimbursement
district. The resolution creating the district must:
1. Identify the specific wastewater improvements that will be subject to reimbursement if determined at
a later date to be a project related improvement;
2. Identify the real property to be included in such district wherein future development may be required
to provide reimbursement;
3. Identify the rationale for the commission's determination that such improvements may be considered
in the future to be project related improvements;
4. Identify the estimated amount of repayment that will be due from each property, the methodology for
adjusting the estimated amount to the actual costs of construction, and the methodology for
determining such amount;
5. Identify whether the amount of repayment will account for the time value of the initial expenditure,
and if so, describe the calculation methodology;
6. Identify the period of time the reimbursement district will exist; and
7. Identify the required timing of payment of the reimbursement which may be upon annexation or prior
to final subdivision or site plan approval, and in no case later than issuance of a building permit.
Prior to adoption of a resolution creating the reimbursement district, the city must provide 15 business days
written notice to owners of real property within the proposed district.
G. Exemptions from wastewater impact fees.
1. The following types of development are exempt from payment of the wastewater impact fee:
a. Alteration or expansion of an existing nonresidential building that does not require an additional
or larger water meter;
b. Replacement of a nonresidential building or structure of the same size that does not require an
additional or larger water meter;
c. The replacement of a previously existing residential unit that does not create any additional or
larger residential units.
2. Any such claim for exemption must be made no later than the time when the applicant applies for the
first permit of a type listed in subsection A.1 of this section for the proposed development, and any
claim for exemption not made at or before that time is waived.
3. The city must determine the validity of any claim for exemption pursuant to the criteria set forth in
subsection G.1 .
Sec. 2.06.1690. Refunds of development impact fees paid.
A. Refunds of development impact fees must be made only in the following instances and in the following
manner:
1. Upon application to the impact fee coordinator by the applicant, the city must refund the development
impact fee paid if capacity is available and service is denied.
2. Expenses and encumbrances.
a. Upon application to the impact fee coordinator, the city must refund the development impact
fee paid and not expended or encumbered within ten years from the date the development
impact fee was paid or spent in a manner not in accordance with this division or MCA 7-6-1602.
Refunds must be paid to the owner of the property at the time impact fee in question was paid.
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In determining whether development impact fees have been expended or encumbered, fees
must be considered encumbered on a first-in, first-out (FIFO) basis.
b. When the right to a refund exists due to a failure to expend or encumber development impact
fees, the city must publish written notice within 30 days after the expiration of the ten year
period from the date development impact fee was paid. The published notice must contain the
heading "Notice of Entitlement to Development Impact Fee Refund."
3. If an applicant paid a development impact fee required by this division and obtained any of the types of
permits or extensions listed in sections 2.06.1650.A.1, 2.06.1660.A.1, 2.06.1670.A.1, or 2.06.1680.A.1,
and,
a. The applicant cancels the project to beginning construction of the work for which the fee was
paid, or
b. The permit or extension for which the fee was paid later expires without the possibility of further
extension and construction of the project has not begun, then the applicant who paid such fee is
entitled to a refund of the fee paid, without interest. In order to be eligible to receive such
refund, the applicant who paid such fee must submit an application for such refund within 30
calendar days after the expiration of the permit or extension for which the fee was paid.
4. A refund application must be made to the impact fee coordinator within 30 calendar days from the
date such refund becomes payable under subsections A.1 through A.3 of this section, or within one
year from the date of publication of the notice of entitlement of a refund under subsection A.2 of this
section, whichever is later. Any refund not applied for within said time period is waived.
5. A refund application must include information and documentation sufficient to permit the impact fee
coordinator to determine whether the refund claimed is proper and, if so, the amount of such refund.
6. All refunds must be paid within 90 days after the impact fee coordinator determines that such refund is
due.
. 8 Once paid, an impact fee may not be refunded in exchange for impact fee credits issued
according to section 2.06.1700.
Sec. 2.06.1700. Credits against development impact fees.
A. After the effective date of the ordinance from which this division is derived, mandatory or voluntary land or
easement dedications for transportation, fire protection, water, or wastewater improvements, and mandatory or voluntary acquisition or construction of capital improvements to the transportation system or
the city fire protection, water, or wastewater systems by an applicant in connection with a proposed
development may result in a pro rata credit against the development impact fee for the same type of service
or facility otherwise due for such development, except that no such credit may be awarded for:
1. Projects or land dedications not listed on the impact fee capital improvements program (CIP); or
2. Land dedications for, or acquisition or construction of, project-related improvements as defined in
section 2.06.1630; or
3. Any voluntary land or easement dedications not accepted by the city; or
4. Any voluntary acquisition or construction of improvements not approved in writing by the city prior to
commencement of the acquisition or construction.
B. In order to obtain a credit against development impact fees otherwise due, an applicant must submit a
written offer to dedicate to the city specific parcels of qualifying land or easements, or to acquire or
construct specific improvements to the transportation system or the city fire protection, water, or
wastewater systems in accordance with all applicable state or city design and construction standards, and
must specifically request a credit against such development impact fees. Such written request must be made
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on a form provided by the city, must contain a statement under oath of the facts that qualify the applicant to
receive a credit, must be accompanied by documents evidencing those facts, and must be approved not later
than the initiation of construction of improvements or the acceptance by the city of land dedications, or the
applicant's claim for the credit is waived. The city may approve a credit only after making findings that the
need for the dedication or construction is clearly documented pursuant to MCA 7-6-1602 and that any land
dedication proposed for credit is determined to be appropriate for the proposed use.
1. Upon receipt of a complete application for impact fee credit, the impact fee coordinator must
coordinate review of the application for compliance with the requirements of this division and other
relevant requirements. The impact fee coordinator must consult with applicable department directors
during the review. Upon completion of the review the impact fee coordinator must:
a. Approve the application;
b. If the application is insufficient or otherwise does not conform to the city's requirements,
communicate in writing to the applicant the reason the credit request failed.
c. If the application satisfies the requirements and is approved, the credit may be provided in any of
the allowed forms as described in subsection G of this section.
2. Factors for consideration:
a. When credit is sought for an improvement listed in the second through fifth years of the CIP after
the current fiscal year there is a rebuttable presumption that any credit is to be awarded as a
credit balance and not as cash.
b. In the event that the city considers that award of a credit may negatively impact its ability to
construct improvements listed sooner in time on the CIP or otherwise interfere with city
priorities, they may decline to award a credit at that time without removing the item from the
CIP.
3. Appeals of administrative decisions on credit requests may be appealed to the city manager per section
2.06.1730.
C. The credit due to an applicant must be calculated and documented as follows:
1. Credit for qualifying land or easement dedications must, at the applicant's option, be valued at:
a. One hundred percent of the most recent assessed value for such land as shown in the records of
the state assessor; or
b. That fair market value established by a private appraiser acceptable to the city in an appraisal
paid for by the applicant.
2. In order to receive credit for qualifying acquisition or construction of transportation, fire protection,
water, or wastewater improvements, the applicant must submit preliminary engineering drawings,
specifications, and construction cost estimates to the city. The city must determine the amount of
credit due based on the information submitted, or, if it determines that such information is inaccurate
or unreliable, then on alternative engineering or construction costs acceptable to the city. Final credit
values are determined after completion of construction and the city verifies final costs.
D. Approved credits become effective at the following times:
1. Approved credit for land or easement dedications becomes effective when the land has been conveyed
to the city in a form acceptable to the city, and at no cost to the city, and has been accepted by the city
. When such conditions have been met, the city must note that fact in the credit record maintained by
the city department of finance. Upon request of the credit holder, the city must send the credit holder
a letter stating the credit balance available to the credit holder.
2. Approved credits for the acquisition or construction of transportation, fire protection, water, or
wastewater improvements become effective when:
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a. All required construction has been completed and has been accepted by the city; and
b. A suitable maintenance and warranty bond has been received and approved by the city; and
c. All design, construction, inspection, testing, bonding, and acceptance procedures have been
completed in compliance with all applicable city and state procedures.
However, approved credits for the construction of improvements may become effective at an earlier date if the
applicant posts security and completes all other steps necessary under 38.270 for securing completion of
infrastructure. When such conditions have been met, the city must note that fact in the credit record maintained
by the city department of finance. Upon request of the credit holder, the city must also send the credit holder a
letter stating the credit balance available to the credit holder.
E. Approved credits may be used to reduce the amount of development impact fees due from any proposed
development for the same type of service or facility for which the applicant dedicated land or acquired or
constructed improvements until the amount of the credit is exhausted. Each time a request to use credit
from a mandatory or voluntary dedication, acquisition, or construction is presented to the city, the city must
reduce the amount of the development impact fee of the same type otherwise due from the applicant and
must note in the city records the amount of credit remaining, if any. In the case of a mandatory dedication,
acquisition, or construction, any credit in excess of the amount of the development impact fee otherwise due
under this division is deemed excess credit that is remaining and available for use by the applicant. In the
case of a voluntary dedication, acquisition, or construction, any credit in excess of the amount of the
development impact fee of the same type and applicable to the project is deemed excess credit that is
remaining and available for use by the applicant. Upon request of the credit holder, the city must send the
credit holder a letter stating the amount of credit remaining to the credit holder.
F. Approved credit may only be used to reduce the amount of development impact fees of the same type
otherwise due under this division and must not be paid to the applicant in cash or in credit against any
development impact fees for a different type of facility or service or against any other moneys due from the
applicant to the city, except as described in subsection G of this section.
G. If the amount of approved credit for a mandatory dedication, acquisition, or construction exceeds the
amount of the development impact fees of the same type otherwise due under this division, the applicant may request in writing that the city provide for reimbursement of any excess credit to the applicant in cash.
Such written request must be approved not later than the initiation of construction of improvements, or the
acceptance by the city of land dedications, or the applicant's claim is waived. Upon receipt of such a written
request, the city may, at its discretion:
1. Arrange for the reimbursement of such excess credit from the impact fee fund for the same type of
service or facility from development impact fees paid by others;
2. Arrange for the reimbursement of such excess credit through the issuance of a promissory note
payable in not more than ten years and bearing interest equal to the interest rate paid by the city for
its long-term debt; or
3. Reject the request for cash and provide credit. Such excess credit must be valued at 100 percent of
actual developer costs for the excess improvements, or at the actual appraised value of such excess
improvements, at the city's option.
H. Credit may be transferred from one holder to another by notarized writing clearly identifying the credit
issued under subsection C of this section that is to be transferred, provided that such instrument is signed by
both the transferor and transferee, and that the document is delivered to the city for registration of the
change in ownership.
Sec. 2.06.1710. Miscellaneous provisions.
A. The city may retain not more than five percent of the development impact fees collected as payment for the
expenses of collecting the fee and administering this division.
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B. If a development impact fee has been calculated and paid based on a mistake or misrepresentation, it must
be recalculated. Any amounts overpaid by an applicant must be refunded by the city to the applicant within
60 business days after the city's acceptance of the recalculated amount. Amounts underpaid by the applicant
must be paid to the city within 30 business days after the city's acceptance of the recalculated amount unless
the city and landowner agree to a different time frame In the case of an underpayment to the city, the city
must not issue any additional permits or approvals for the project for which the development impact fee was
previously paid until such underpayment is corrected; and if amounts owed to the city are not paid within
such 30 business day period, the city may also repeal any permits issued in reliance on the previous payment
of such development impact fee and refund such fee. The city may decline to collect underpaid fees if the
city determines that the cost of collection of underpaid fees exceeds benefit of the fee.
C. 1. In order to promote affordable housing, the city commission maypay some or all of the impact fee from
other funds of the city that are not restricted to other uses.
2. In order to promote the economic development of the city the city commission may agree to pay some or
all of the development impact fees imposed on a proposed development by this division from other funds of
the city that are not restricted to other uses.
3. Any such decision to pay development impact fees on behalf of an applicant is at the discretion of the city
commission and must be made pursuant to goals and objectives previously adopted by the city commission
to promote economic development and/or affordable housing.
Sec. 2.06.1720. Deferrals.
A. The city commission may, by resolution, create a program to enable deferral of payment of impact fees to a
time after issuance of a building permit or a connection permit to the water and sewer systems. Any such
resolution must:
1. Specify the circumstances and conditions under which a deferral may be allowed or disallowed.
2. Specify the points in time when the deferral may be requested, granted, and when payment of fees is
required.
3. Specify costs to be incurred with deferral and fee payment and who is responsible for paying those
costs.
4. Specify the process to receive and process a request for a deferral, including any administrative fees or
required security for payment.
5. Specify the process for recognizing the payment of deferred fees and the release of any limitations on
the property.
6. Require an impact fee deferral agreement and related documents as approved by the city attorney to
be recorded at the Gallatin County Clerk and Recorder's Office securing the amount due, including a
covenant running with the land agreeing that a certificate of occupancy or other permit required by
this division when a certificate of occupancy is not required will not be provided until payment of the
deferred fees is verified.
Sec. 2.06.1730. Appeals, administration, and interpretation.
A. 1. Any determination made by any official of the city charged with the administration of any part of this division
may be appealed to the city manager by filing:
a. A written notice of appeal on a form provided by the city;
b. A written explanation of why the appellant feels that a determination was in error including any
supporting documentation; and
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c. An appeal fee of $500.00 with the impact fee coordinator within 15 business days after the
determination for which the appeal is being filed.
2. The city manager must review the appeal within 30 working days of the date the written appeal was
presented to the impact fee coordinator. If the city manager concludes that all or part of a
determination made by an official of the city charged with the administration of any part of this
division was in error, then the appeal fee described in this subsection must be returned to the
appellant.
B. The impact fee coordinator is responsible for interpretation of this division.
C. Violation of this division is a misdemeanor and is subject to those remedies provided in section 1.01.210.
Knowingly furnishing false information to any official of the city charged with the administration of this
division on any matter relating to the administration of this division, including without limitation the
furnishing of false information regarding the expected size, use, or impacts on services from a proposed
development, is a violation of this division. In addition to, or in lieu of, any criminal prosecution, the city or
any applicant for a permit of the types described in section 2.06.1650.A.1, 2.06.1660.A.1, 2.06.1670.A.1, or
2.06.1680.A.1 have the right to sue in civil court to enforce the provisions of this division.
D. The section titles used in this division are for convenience only and do not affect the interpretation of any
portion of the text of this division.
E. Any judicial action or proceeding to attack, review, set aside, or annul the reasonableness, legality, or validity
of any development impact fee must be filed and service of process effected within 90 calendar days
following final administrative action to impose the fee, including resolution of any appeals.
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Exhibit A – Ordinance 2169
DIVISION 9. IMPACT FEES
Sec. 2.06.1600. Legislative findings.
A. The city commission finds that:
1. The protection of the health, safety, and general welfare of the citizens of the city requires that the
street transportation, fire protection, water, and wastewater systems of the city be expanded and
improved to accommodate continuing growth within the city and within those areas directly served by
its fire department and within those areas connected to its water and wastewater systems.
2. New residential and nonresidential development imposes increased and excessive demands upon
existing city facilities.
3. New development often will overburdens existing public facilities unless it offsets increased service
demand, and the tax revenues generated from new development often do not generate sufficient
funds to provide public facilities to serve the new development as the cost of construction inflation
substantially exceeds the ½ the three year average rate of inflation allowed to local governments under
15-10-420 MCA and property taxes are charged in arrears.
4. New development is expected to continue and will place ever-increasing demands on the city to
provide public facilities to serve new development.
5. The creation of an equitable development impact fee system would enables the city to demonstrate
and require payment of impose a roughly proportionate share of the costs of required improvements
to the city's transportation, fire protection, water, and wastewater systems on those developments
that create the need for them.
6. All types of development that are not explicitly exempted from the provisions of this division will
generate demand for city's transportation, fire protection, water, and wastewater services or facilities
that will require improvements to city facilities and equipment.
7. The city's adopted impact fee studies service area reports set forth reasonable methodologies and
analyses for determining the impacts of various types of development on the city's
transportationstreet, fire protection, water and wastewater systems and for determining the cost of
acquiring land and the cost of acquiring or constructing facilities and equipment necessary to meet the
demands for such services created by new development.
8. The city establishes as city standards the assumptions and service standards referenced in the impact
fee service area reports studies and other duly adopted documents as part of its current plans for the
transportation system and for the city's fire protection, water, and wastewater systems.
9. The documentation required by MCA 7-6-1602, is collectively contained in the city's facility plans,
impact fee studies service area reports, development regulations, financial records, capital
improvements program, design and specification manual, and other city documents.
10. The development impact fees described in this division are reasonably related to the service demands
and needs of new development and are based on the impact fee studies service area reports and
documentation cited in subsection 7 of this section and are shown to do not exceed the costs of
acquiring additional land and the costs of acquiring or constructing additional facilities or equipment
required to serve the new developments that will pay the fees.
11. All transportation improvements upon which the transportation impact fees are based and upon which
transportation impact fee revenues will be spent, based on the limitations set forth in this division will
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benefit all new development in the city; and it is, therefore, appropriate to treat the entire city as a
single service area for purposes of calculating, collecting, and spending the transportation impact fees,
while recognizing differences in the demand for service based upon the identified factors set forth in
the transportation impact fee service area reportstudy.
12. All of the fire protection/EMS improvements upon which the listed in the fire impact fee study service
area report are based and upon which fire/EMS impact fee revenues will be spent, based on the
limitations set forth in this division will benefit all new development that receives fire protection
service directly from the city fire department; and it is, therefore, appropriate to treat the entire city
and all properties served directly by the city fire department as a single service area for purposes of
calculating, collecting, and spending the fire protection impact fees.
13. All of the water system improvements upon which listed in the water impact fee study service area
report are based and upon which water impact fee revenues will be spent, based on the limitations set
forth in this division will benefit all new development that connects to the city water system; and it is,
therefore, appropriate to treat the entire city and all properties connected to the city water system as
a single service area for purposes of calculating, collecting, and spending the water impact fees.
14. All of the wastewater system improvements upon which listed in the wastewater impact fee study
service area report are based and upon which wastewater impact fee revenues will be spent, based on
the limitations set forth in this division will benefit all new development that connects to the city
wastewater system; and it is, therefore, appropriate to treat the entire city and all properties
connected to the city wastewater system as a single service area for purposes of calculating, collecting,
and spending the wastewater impact fees.
15. There is both a rational nexus and a rough proportionality between the development impacts created
by each type of development covered by this division and the development impact fees that such
development will be required to pay and the fee study and project-specific calculation process provides
an individualized determination of impacts to be mitigated by payment of the impact fee.
16. The city's facility planning, capital improvement program, development review, and bidding processes
create a public process by which, on a specific and detailed basis, the capacity expanding components of construction can be identified and funded distinctly from those components which are not capacity
expanding by providing for evaluation by the city and the impact fee advisory committee of future
needs related to growth, identification of applicable funding sources, and monitoring of construction
and payments.
17. To meet the needs of new development the city may construct capacity expanding capital
improvements prior to development of adjacent properties. This may include the construction of
capacity expanding infrastructure of a nature and in a location that may require such improvements to
be deemed project related improvements at the time of the development of such adjacent properties.
The city commission finds that under certain conditions it is fair and reasonable that the costs of a
project related improvement that have been paid by the city prior to development of certain
properties should be reimbursed at the time of development of those properties.
18. This division creates a system by which development impact fees paid by new developments will be
used to expand or improve the city transportation, fire protection, water, and wastewater systems in
ways that benefit the development that paid each fee within a reasonable period of time after the fee
is paid.
19. This division creates a system under which development impact fees shall must not be used to cure
existing deficiencies in public facilities or to pay maintenance or operations costs associated with
providing public facilities.
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Sec. 2.06.1610. Authority and applicability.
A. This division is enacted pursuant to the city's self-government powers, the authority granted to the city by
the Montana State Constitution, MCA 7-6-1601 through 7-6-1604, and MCA 7-1-4123, 7-1-4124, 7-3-4313, 7-
7-4404, 7-7-4424, 7-13-4304, and 69-7-101, and the city charter.
B. The provisions of this division shall apply to all of the territory within the limits of the city.
C. The provisions of this division related to the fire protection impact fees shall also apply to all properties
located outside the city that are served directly by the city fire department.
D. The provisions of this division related to water impact fees shall also apply to all properties located outside
the city that are connected to the city water system.
E. The provisions of this division related to wastewater impact fees shall also apply to all properties located
outside the city that are connected to the city wastewater system.
F. The provisions of this division related to the establishment of transportation, fire/EMS, water, and sewer
reimbursement districts applies to properties located outside the city that are deemed to benefit from
capacity expansion.
Sec. 2.06.1620. Intent of division.
A. This division is adopted to help implements the growth policy/land use plan of the city, the city's most
recently adopted long range transportation plan, the most recently adopted water facility plan, the most
recently adopted wastewater facility plan, and the most recently adopted fire protection/EMS master plan.
B. The intent of this division is to SeEnsure that new development bears its a proportionate share of the cost of
improvements to the city transportation, fire protection, water, and wastewater systems; to ensure that
such proportionate share does not exceed the roughly proportionate cost of the transportation, fire
protection, water, and wastewater facilities and equipment required to serve such new developments.; and
to ensure that funds collected from new developments are actually used to construct improvements to the city
transportation, fire protection, water, and wastewater systems that reasonably relate to the benefits
accruing to such new developments.
C. It is the further intent of this division that new development pay for its roughly proportionate share of public
facilities through the imposition of development impact fees that will be used to finance, defray, or
reimburse all or a portion of the costs incurred by the city to construct improvements to the city
transportation, fire protection, water, and wastewater systems that serve or benefit such new
developmentimpact fee payers.
D. Prevent the It is not the intent of this division to collection of any money through impact fees from any new
development in excess of the reasonably foreseeable, logically connected, and roughly proportional actual
amount necessary to offset new demands for transportation, fire protection, water, or wastewater
improvements generated by that new development within the service area as established in the service area
report for each fee type.
E. It is not the intent of this division that any No moneys collected from any development impact fee and
deposited in an impact fee fund may ever be co-mingled with moneys from a different impact fee fund or
ever be used for a type of facility or equipment different from that for which the fee was paid.
F. Any funds paid pursuant to a reimbursement district established in this division or payback district
established through other municipal authority do not replace or reduce any impact fees imposed upon
development.
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Sec. 2.06.1630. Definitions.
A. The following words, terms and phrases, when used in this division, shall have the meanings ascribed to
them in this section, except where the context clearly indicates a different meaning:
1. "Capacity expanding capital improvements" means improvements that increase the functional capacity
of the city's water system, wastewater system, fire protection and emergency medical service system,
or transportation system. This term may include capital improvements that if constructed in advance of
development may meet the definition of "project related improvements" when development of
adjacent property occurs.
2. "Central Business District" (CBD) means the land area encompassed land uses established within the B-
3, "Central Business District," zoning district as of [the effective date of this ordinance].
3. "Development" means any construction or expansion of a building, structure, or use, any change in use
of a building or structure, or any change in the use of land, which creates additional demand for public
services.
4. "Development impact fees" means the transportation impact fee, fire protection impact fee, water
impact fee, and wastewater impact fee established by this division.
5. "Development impact fees review committee" means the committee composed of the impact fee
coordinator, the building official, the director of transportation and engineering, the fire chief, and the
director of community development, or their designees appointed to serve in the member's place at a
meeting.
56. "Encumber" means to legally obligate by contract, or otherwise commit to use by appropriation or
other official act of the city.
6. Fee schedule means the listing of the dollar cost of each impact fee as established in the most recent
service area report and as adjusted annually for inflation.
7. "Impact fee capital improvement program" means the capital improvements program for the
transportation system, the city fire protection system, and the city water and wastewater systems,
which shall assigns moneys from each impact fee fund to specific projects and related expenses for
improvements to the type of facilities or services for which the fees in that fund were paid, and shall
must not include improvements needed to correct existing deficiencies or operations or maintenance
costs.
8. "Impact fee coordinator" means the director of the city's department of community development or
designee.
9. "Impact fee funds" means the transportation impact fee fund, fire protection impact fee fund, water
impact fee fund, and wastewater impact fee fund established by this division.
10. "Impact fee studies" means the service area reports studies most recently adopted by resolution of the
city commission for each impact fee which set forth reasonable methodologies and analyses for
determining the impacts of various types of development on the city's street transportation, fire
protection and emergency medical services, water and wastewater systems or other services or
facilities for which an impact fee may be charged and for determining the cost of acquiring land and
the cost of acquiring or constructing facilities and equipment necessary to meet the demands for such
services created by new development.
11. "Improvement" means planning, land acquisition, engineering design, construction inspection, on-site
construction, off-site construction, equipment purchases, and financing costs associated with new or
expanded facilities, buildings, and equipment that expand the capacity of a facility or service system
and that have an average useful life of at least ten years. The term "improvement" does not include
maintenance, operations, or improvements that do not expand capacity.
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12. "Independent fee calculation study" means a study prepared by an applicant for a building permit or
water or wastewater connection permit calculating the cost of expansions or improvements to the
city's transportation, fire protection, water, or wastewater systems required to serve the applicant's
proposed development; that is performed on an average cost (not marginal cost) methodology; uses
the service units and unit construction costs stated in the impact fee studies; and is performed in
compliance with any criteria for such studies established by this division or by the city.
13. "Initiation of construction" means the date of the preconstruction meeting with the city engineer, or
the date of the first visible change in the physical condition of the improved site caused by the first
person furnishing services or materials to effect construction of the improvement, whichever occurs
first.
14. "Maintenance" means replacement, repair, or caring for a constructed water, sewer, fire/EMS, or
transportation facility to preserve them in a functional state equal to their initial installed design; and
which does not change the basic design or structure or change them from their original purpose.
Activities that change the scope of a project beyond the original design are not included in this
definition.
15. “Payback district” means a legal mechanism for an entity that installs incidental excess capacity that
benefits future development and is not funded by or eligible for impact fees to recapture a
proportionate share of the value of installed excess capacity from benefited landowners.
165. "Project-related improvements" means site-related improvements including, without limitation, all
access streets including sidewalks adjacent to the proposed development or leading only to the
proposed development and not included on the transportation system; all streets, and driveways, and
pedestrian/bicycle facilities within the development; all acceleration, deceleration, right, or left turn
lanes leading to any streets and driveways within the development; all traffic control devices for
streets and driveways within the development; all water lines or facilities adjacent to, leading to, or
located within the development and serving only the development; all wastewater lines or facilities
adjacent to, leading to, or located within and serving only the development; and all off-site
improvements necessary for the safety and code compliance of a development. Credit for incidental improvements shall is not be allowed. The presumption shall be madeIt is presumed that the minimum
improvement needed to serve a project shall be deemed to beis a project improvement even if
additional capacity is thereby created that may be potentially used by other developments presently or
in the future.
17. “Reimbursement district” means a legal mechanism to recoup the costs of project-related
improvements funded by impact fees as part of initial installation of a larger capacity expanding
improvement greater than project-related improvements.
186. "Transportation system" means existing or planned collectors or arterial streets, including associated
non-motorized travel elementsroads of three lanes or more and, which are either included on the most
current long range transportation plan or the city's impact fee capital improvement program. The
transportation system includes bicycle and pedestrian facilities appurtenant to such roads.
19. 17. Trip exchange district.
a. "Trip exchange district" means a defined geographic area where there is a demonstrated significant
reduction in new vehicle trips below that established in the transportation service area report. that
meets the following criteria, pursuant to the transportation fee study and an independent fee
calculation study as provided in section 2.06.1640.B.3:
(1) The use of shared and consolidated parking;
(2) A high degree of pedestrian and bicycle access to and throughout the proposed
development;
(3) The availability of public transit;
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(4) Extensive trip capture within the proposed development where trips to the proposed
development result in visits to multiple businesses in the area via a mode other than
automobile;
b. The following additional physical development characteristics are associated with trip exchange
district land uses:
(1) The majority of buildings associated with the proposed development are multi-story
building, often more than two stories;
(2) Diverse business proprietorships within the development;
(3) Primary use at the ground floor is commercial;
(4) The majority of individual businesses within the development are less than 20,000 square
feet;
(5) Structures within the development are in near to each other and the public street (with
small or no setbacks);
(6) Having a high percentage building coverage on the lot and typically in excess of 0.5;
(7) The physical characteristics are shared among the entire business area, not just one or a
few of the businesses;
(8) The area should be at least 50 percent developed as measured by lot area utilized; and
(9) The area is the subject of a city enforceable common plan of development, such as an
urban renewal plan.
Sec. 2.06.1640. General Requirements.
A. Interest earned on moneys in any impact fee fund is part of such fund and is subject to the same restrictions
on use applicable to the impact fees deposited in such fund.
B. No moneys from any impact fee fund may be spent for periodic or routine maintenance of any facility of any
type or to cure deficiencies in public facilities.
C. Nothing in this division restricts the city from requiring an applicant to construct reasonable project related
improvements required to serve the applicant's project, whether or not such improvements are of a type for
which credit is available under section 2.06.1700.
D. The city must maintain accurate records of the development impact fees paid, including the name of the
person paying such fees, the project for which the fees were paid, the date of payment of each fee, the amounts received in payment for each fee, and any other matters that the city deems appropriate or
necessary to the accurate accounting of such fees, and such records must be available for review by the
public during city business hours.
E. 1. The city manager must present to the city commission a proposed impact fee capital improvements
program consistent with section 5.07 of the city charter for the transportation system, fire protection
system, water system, and wastewater system, which identifies the capacity-adding capital improvements
that will benefit new development subject to the terms of this division, exclusive of any improvements
needed to correct existing deficiencies or for operation or maintenance purposes. The city commission must
approve the capital program consistent with section 5.08 of the city charter.
2. The capital improvements program must assign moneys from each impact fee fund to specific projects and
related expenses for improvements to the type of facilities or services for which the fees in that fund were
paid. Any moneys, including any accrued interest, not assigned to specific projects within such capital
improvements program and not expended pursuant to section 2.06.1690 or 2.06.1700 must be retained in
the same impact fee fund until the next fiscal year. The impact fee capital improvements program schedules
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the construction of capital improvements to serve projected growth and project capital improvement costs,
expenditures and impact fee fund revenues for a five-year period. The individual fee funds shall maintain a
positive fiscal balance.
3. The city manager shall adopt and revise, as needed, an administrative impact fee manual to carry out the
purposes of this division. The manual must address processes, further definitions as needed, special cases for
calculation of fees, independent fee studies, calculation of credits, deferral processes, and appeals.
F. Updating of impact fee information.
1. The facility plans described in this division must be reviewed by the city at least once every five years
and if a revision of a facility plan to address changed conditions is deemed necessary by the city, the
plan must be updated.
2. The development impact fees described in this division, fee studies, data and analysis relied upon and
required by MCA 7-6-1602, and the administrative procedures and manual of this division must be
updated at least once every four fiscal years.
3. The purpose of the review and updating of impact fee related documentation is to ensure that:
a. The demand and cost assumptions underlying such fees are still valid;
b. The resulting fees do not exceed reasonable estimates of the cost of constructing improvements
that are of the type for which the fee was paid and that are required to serve new development;
c. The moneys collected or to be collected in each impact fee fund have been, and are expected to
be, spent for improvements of the type for which such fees were paid; and
d. That such improvements will benefit those developments for which the fees were paid.
G. The development impact fees shown in the most recently adopted impact fee studies must be adjusted
annually to reflect the effects of inflation on those costs for improvements set forth in the impact fee
studies. On January 1st of each year unless and until the impact fee studies are revised or replaced, and then
beginning in the subsequent calendar year, each fee amount set forth in each such study must be adjusted
by multiplying such amount by one plus the value of the Construction Cost Index published in the first
December edition of the current year. (Source: Engineering News Record.) Such adjustments in such fees
become effective immediately upon calculation by the city and do not require additional action by the city
commission to be effective.
Sec. 2.06.16401650. Transportation impact fees.
A. Imposition of transportation impact fees.
1. Any person who seeks to obtain any of the following forms of development approval is required to pay
a transportation impact fee in the amount specified in the commission resolution adopting the most
recent transportation impact fee study and establishing the transportation impact fee and as updated
as required in this division.
a. A building permit;
b. Any other permit that will result in the construction of improvements that will generate
additional trafficdemand for transportation services; or
c. Any extension of any such permit that was issued before the effective date of the ordinance from
which this division is derived; or
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d. Any delayed payment of impact fees as specified and approved by the city commission in
accordance with chapterdivision 38.380., article 43.
2. Notwithstanding subsection A.1 of this section, no impact fee shall may be imposed earlier than the
issuance of a building permit for developments requiring a building permit. Development generating
additional demand for service and not requiring a building permit must pay impact fees prior to the
action of the City that authorizes initiation of construction.
3. No permits of the types described in subsection A.1 of this section may be issued until the
transportation impact fee described in this division has been paid, unless the development for which
the permit is sought is exempted by subsection F of this section; or unless deferral of payment of the
transportation impact fee has been approved by the impact fee coordinator pursuant to a deferral
program approved by resolution of the Commission in compliance with 2.06.17201700.I.
B. Computation of amount of transportation impact fee.
1. An applicant required by this division to pay a transportation impact fee may choose to have the
amount of such fee determined pursuant to either subsection B.2 or B.3 of this section. The amount of
the fee calculated pursuant to either subsection B.2 or B.3 of this section shall be subject to the
following adjustment:
a. For the first expansion of an existing nonresidential building, the amount calculated shall not include
the amount calculated for the expansion of up to 30 percent as compared with its size on February 22,
1996, or 2,000 square feet, whichever is less.
b. When a property changes from one nonresidential use to another within an existing nonresidential
building, the area included in the calculation of change in demand shall exclude the first 2,000 square
feet of gross floor area.
c. The transportation impact fees are those adopted by resolution of the commission and as updated as
provided for in this division.
2. Unless an applicant requests that the city determine the amount of such fee pursuant to subsection B.3
of this section, the city shall must determine the amount of the required transportation impact fee by
reference to the most recently adopted transportation impact fee studyschedule. The fee amounts set
forth in such study include credits for expected future receipts of state and federal highway funds and
expected future receipts of gas tax revenues, and all other non-impact fee sources of funding
anticipated to be made by or as a result of new development to be applied to the transportation
improvements required to serve new development.
a. If a the applicant's development is of a type not listed in the most recently adopted
transportation impact fee service area reportstudy, then the city shall must use the fee applicable
to the most nearly comparable type or land use in the studyreport. In making a decision about
which use is most nearly comparable, the city shall isbe guided by the most recent edition of
"Trip Generation: An Information Report" prepared by the Institute of Transportation Engineers;
or if such publication is no longer available, then by a similar publication. If the city determines
that there is no comparable type of land use listed in the study, then a new fee shall must be
determined by:
(1) Finding the most nearly comparable trip generation rate from the publication noted in
subsection B.2.a. of this section; and
(2) Applying the formula an independent fee study as set forth in subsection B.3.d of this
section.
b. If the applicant's development includes a mix of those uses listed in the most recently adopted
transportation impact fee study, then the fee shall beis determined by adding up the fees that
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would be payable for each use if it were a freestanding use pursuant to the most recently
adopted transportation impact fee study.
c. If the applicant is applying for an extension of a permit issued previously, then an additional fee is
necessary and that the fee shall beis the net increase between the fee applicable at the time of
the current permit extension application and any transportation impact fee previously paid
pursuant to this division for the same structure. In the event that the fee applicable at the time of
the current extension permit application is lower than the transportation impact fee previously
paid pursuant to this division for the same structure, there shall be no refund of transportation
impact fees previously paid is allowed. If fees are not yet paid, the amounts due prior to permit
issuance will be updated based on the date of the extension application.
d. If the applicant is applying for a permit to allow a change of use or the expansion,
redevelopment, or modification of an existing development, the fee shallmust be based on the
net positive increase in the fee for the new use as compared to the previous use. However, no
new fee may shall be imposed unless an additional unit of service demand is created, in
accordance with the most recently adopted transportation impact fee study. If necessary to
determine such net increase, the city shallmust be guided by the most recent edition of "Trip
Generation Manual: An Information Report" prepared by the Institute of Transportation
Engineers; or if such publication is no longer available, then by a similar publication. In the event
that the proposed change of use, expansion, redevelopment, or modification results in a net
decrease in the fee for the new use or development as compared to the previous use or
development, there shall be no refund of transportation impact fees previously paid is allowed.
3. Prior to issuance of a building permit, Aan applicant may request that the city determine the amount of
the required transportation impact fee by reference to an independent fee calculation study for the
applicant's development prepared by qualified professional traffic engineers and/or economists at the
applicant's cost and submitted to the city engineer. Any such study must show the traffic engineering
and economic methodologies and assumptions used, including, but not limited to, those forms of
documentation listed in subsections B.3.a and B.3.b of this section and must be acceptable to the city
pursuant to subsection B.3.c of this section.
a. Traffic engineering studies must include documentation of trip generation rates, trip lengths, any
percentage of trips from the site that represent net additions to current trips from the site, the
percentage of trips that are new trips as opposed to pass-by or divert-link trips, and any other
trip data for the proposed land use.
b. Economic studies must include documentation of any special factors that the applicant believes
will reduce the traffic volumes otherwise attributable to the proposed land use.
c. The city shall must consider all such documentation and any independent fee calculation study
submitted by the applicant., but shall The city is not be required to accept any such study or
documentation that the city deems to be inaccurate or unreliable and may request that the
applicant submit additional or different documentation for consideration. Any independent fee
calculation study submitted by an applicant may be accepted, rejected, or accepted with
modifications by the city as the basis for calculating transportation impact fees.
d. The city will review and determine whether or not to accept a customized calculation within 90
calendar days of submittal. If accepted, the city will use the customized calculation in assessing
the fee and no further correspondence is required. If the city rejects a customized calculation the
city will inform the applicant of the reasons in writing.
ed. Upon acceptance, or acceptance with modifications, of an independent fee calculation study and
documentation, the city shall will use the formulas and methodology contained within the most
recently adopted transportation impact fee study to determine the transportation impact fee.
C. Payment of transportation impact fee.
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1. All funds paid by an applicant pursuant to this division shall must be identified as transportation impact
fees and shall must be promptly deposited in the transportation impact fee fund described in
subsection D of this section.
D. Transportation impact fee funds.
1. A single transportation impact fee fund is created and such fund must be maintained in an interest
bearing account.
2. Such fund may must contain those transportation impact fees collected pursuant to this division and
any interest which may accrue from time to time on such amounts.
3. Such fund may also contain reimbursements collected pursuant to subsection 2.06.16501640.F.
E. Use of transportation impact fee funds. The moneys in the transportation impact fee fund shall must be used
only as follows:
1. To acquire land for and/or acquire or construct capacity expanding capital improvements to the
transportation system reasonably related to the benefits accruing to new development subject to the
terms of this division, in accordance with the requirements of state law; or
2. To pay debt service on such capital improvements to the transportation system; or
3. For purposes of refunds or credits, as described in section 2.06.16901680 or 2.06.17001690.G; and
4. May not be used for:
a. Operations or maintenance purposes; or
b. To correct existing deficiencies.; or
c. For bicycle or pedestrian facilities unless built in conjunction with and included in a capacity-
adding transportation system facility, otherwise eligible for impact fee funding.
F. [Transportation impact fee reimbursement.] When the commission determines to fund capacity expanding
capital improvements to the transportation system and the commission determines prior to expenditure of
funds for such improvements that, upon future development, such improvements may be considered project
related improvements the commission may by resolution create a transportation impact fee reimbursement
district. The resolution creating the district must:
1. Identify the specific transportation system improvements that will be subject to reimbursement if
determined at a later date to be a project related improvement;
2. Identify the real property to be included in such district wherein future development may be required
to provide reimbursement;
3. Identify the rationale for the commission's determination that such improvements may be considered
in the future to be project related improvements;
4. Identify the estimated amount of repayment that will be due from each property, the methodology for
adjusting the estimated amount to the actual costs of construction, and the methodology for
determining such amount;
5. Identify whether the amount of repayment will account for the time value of the initial expenditure,
and if so, describe the calculation methodology;
6. Identify the period of time the reimbursement district will exist; and
7. Identify the required timing of payment of the reimbursement which may be upon annexation or prior
to final subdivision or site plan approval, and in no case later than issuance of a building permit.
Prior to adoption of a resolution creating the reimbursement district, the city must provide 15 business days
written notice to owners of real property within the proposed district.
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G. Exemptions from transportation impact fee.
1. The following types of development shall beare exempted from payment of the transportation impact
fee:
a. Alterations, remodeling, rehabilitations, expansions of existing buildings, or other improvements
to an existing structure where no additional vehicle trips will be produced over and above those
produced by the existing use;
b. Construction of accessory buildings or structures that will not produce additional vehicle trips
over and above those produced by the primary building or land use;
c. The replacement of a destroyed or partially destroyed building or structure with a new building
or structure of the same size and use where no additional vehicle trips will be produced over and
above those produced by the original building or structure;
d. The installation or replacement of a mobile home on a lot or a mobile home site when a
transportation impact fee for such lot or site has previously been paid pursuant to this division or
where a mobile home legally existed on such site on or prior to the effective date of the
ordinance from which this division is derived; and
e. Any other type of development for which the applicant can demonstrate that the proposed land
use and development will produce no more vehicle trips from such site over and above the trips
from such site prior to the proposed development, or for which the applicant can show that a
transportation impact fee for such site has previously been paid in an amount that equals or
exceeds the transportation impact fee that would be required by this division for such
development.
2. Any such claim for exemption must be made no later than the time when the applicant applies for the
first permit or a type listed in subsection A.1 of this section for the proposed development, and any
claim for exemption not made at or before that time shall have beenis waived.
3. The city shall must determine the validity of any claim for exemption pursuant to the criteria set forth
in subsections G.1 and G.2 of this section.
H. A trip exchange district is established through an independent fee study or similar data through a service
area report. Areas where a trip exchange district may be established have the majority of the following
characteristics:
1. The use of shared and consolidated parking;
2. A high degree of pedestrian and bicycle access to and throughout the proposed development;
3. The availability of public transit;
4. Extensive trip capture within the existing and proposed development where trips to the proposed
development result in visits to multiple destinations in the area via a mode other than automobile;
5. Diverse business proprietorships within the development;
6. Primary use at the ground floor is non-residential;
7. The majority of individual businesses within the development are less than 20,000 square feet;
8. Structures within the development are near to each other and the public street (with small or no
setbacks);
9. The majority of buildings associated with the proposed development are multi-story building, often
more than two stories;
10. Having a high percentage building coverage on the lot and typically in excess of 0.5;
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11. The physical characteristics are shared among the entire area, not just one or a few businesses;
12. The area is at least 50 percent developed as measured by lot area utilized; and
13. The area is the subject of a city enforceable common plan of development, such as an urban renewal
plan or master site plan.
Sec. 2.06.16601650. Fire protection and emergency medical service impact fees.
A. Imposition of fire protection and emergency medical service impact fees.
1. Any person who seeks to obtain any of the following forms of development approval is required to pay
a fire/EMS impact fee in the amount specified in the commission resolution adopting the most recent
fire/EMS impact fee study and establishing the fire/EMS impact fee and as updated as required in this
division:
a. A building permit; or
b. Any other permit that will result in construction that will generate demand for fire protection
services; or
c. Any extension of any such permit that was issued before the effective date of the ordinance from
which this division is derived, is required to pay a fire protection impact fee in the amount
specified in this division; or
d. Any delayed payment of impact fees as specified and approved by the city commission in
accordance with chapter 38, article 43division 38.380.
2. Notwithstanding subsection A.1 of this section, no impact fee may be imposed earlier than the
issuance of a building permit for developments requiring a building permit. Development generating
additional demand for service and not requiring a building permit must pay impact fees prior to the
action of the City that authorizes initiation of construction.
23. No permits of the types described in subsection A.1 of this section may be issued until the fire
protection/EMS impact fee described in this division has been paid, unless the development for which
the permit is sought is exempted by subsection F of this section; or unless deferral of payment of the
fire protection/EMS impact fee has been approved by the city pursuant to a deferral program approved
by resolution of the commission in compliance with 2.06.17201700.I.
B. Computation of amount of fire protection/EMS impact fee.
1. An applicant required by this division to pay a fire protection/EMS impact fee may choose to have the amount of such fee determined pursuant to either subsection B.2 or B.3 of this section. The amount of
the fee calculated pursuant to either subsection B.2 or B.3 of this section shall be subject to the
following adjustment:
a. For the first expansion of an existing nonresidential building, the amount calculated shall not include
the amount calculated for the expansion of up to 30 percent as compared with its size on February 22,
1996, or 2,000 square feet, whichever is less.
2. Unless an applicant requests that the city determine the amount of such fee pursuant to subsection B.3
of this section, the city shall must determine the amount of the required fire protection impact fee by
reference to the most recently adopted fire impact fee studyservice area report.
a. If a the type of development is not of a type listed in the most recently adopted fire/EMS impact
fee service area report that a permit is applied for is not listed in the most recently adopted fire
impact/EMS fee study, then the city shall must use the fee applicable to the most nearly
comparable type or land use in the study service area report.
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b. If the type of development that a permit is applied for includes a mix of those uses listed in the
most recently adopted fire impact fee study, then the fee shall must be determined by adding up
the fees that would be payable for each use if it were a freestanding use pursuant to the most
recently adopted fire impact fee service area reportstudy.
c. If the applicant is applying for an extension of a permit issued previously, then an additional fee is
necessary and that the fee shall isbe the net increase between the fee applicable at the time of
the current permit application and any fire protection impact fee previously paid pursuant to this
division for the same structure. In the event that the fee applicable at the time of the current
extension permit application is lower than the fire protection impact fee previously paid pursuant
to this division for the same structure, there shall be no refund of fire protection impact fees
previously paid is allowed. If fees are not yet paid, the amounts due prior to permit issuance will
be updated based on the date of the extension application.
d. If the applicant is applying for a permit to allow a change of use or for the expansion,
redevelopment, or modification of an existing development, the fee shall be is based on the net
increase in the fee for the new use as compared to the previous use. In the event that the
proposed change of use, expansion, redevelopment, or modification results in a net decrease in
the fee for the new use or development as compared to the previous use or development, there
shall be no refund of fire protection impact fees previously paid is allowed.
3. Prior to issuance of a building permit, aAn applicant may request that the city determine the amount of
the required fire/EMS protection impact fee by reference to an independent fee calculation study for
the applicant's development prepared at the applicant's cost by qualified professional fire protection
experts and/or economists and submitted to the city fire chief. Any such study shall must be based on
the same service standards and unit costs for fire protection/EMS used in the most recently adopted
fire/EMS impact fee service area reportstudy, and must document the economic methodologies and
assumptions used. Any independent fee calculation study submitted by an applicant may be accepted,
rejected, or accepted with modifications by the city as the basis for calculating fire protection impact
fees. If such study is accepted or accepted with modifications as a more accurate measure of the
demand for new fire protection/EMS facilities and equipment created by the applicant's proposed
development than the applicable fee shown in the most recently adopted fire impact fee study, then
the fire protection/EMS impact fee due under this division may be calculated according to such study.
a. Independent fee calculation studies must include documentation of rate of calls for service,
required service standard, and any other relevant data for the proposed land use.
b. Economic studies must include documentation of any special factors that the applicant believes
will reduce the service demand otherwise attributable to the proposed land use.
c. The city must consider all such documentation and any independent fee calculation study
submitted by the applicant. The city is not required to accept any such study or documentation
that the city deems to be inaccurate or unreliable and may request that the applicant submit
additional or different documentation for consideration. Any independent fee calculation study
submitted by an applicant may be accepted, rejected, or accepted with modifications by the city
as the basis for calculating transportation impact fees.
d. The city will review and determine whether or not to accept a customized calculation within 90
calendar days of submittal. If accepted, the city will use the customized calculation in assessing
the fee and no further correspondence is required. If the city rejects a customized calculation the
city will inform the applicant of the reasons in writing.
e. Upon acceptance, or acceptance with modifications, of an independent fee calculation study and
documentation, the city will use the formulas and methodology contained within the most
recently adopted transportation impact fee study to determine the transportation impact fee.
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C. Payment of fire protection/EMS impact fees.
1. All funds paid by an applicant pursuant to this division shall must be identified as fire protection/EMS
impact fees and shall must be promptly deposited in the fire protection/EMS impact fee fund described
in subsection D of this section.
D. Fire protection/EMS impact fee funds.
1. A single fire protection/EMS impact fee fund is created and such fund must be maintained in an
interest bearing account.
2. Such fund must may contain those fire protection/EMS impact fees collected pursuant to this division
and any interest which may accrue from time to time on such amounts.
3. Such fund may also contain reimbursements collected pursuant to section 2.06.16601650.F.
E. Use of fire protection/EMS impact fee funds. The moneys in the fire protection/EMS impact fee fund shall
must be used only:
1. To acquire or construct capacity expanding fire protection/EMS improvements within the city; or
2. To pay debt service on any portion of any future general obligation bond issue or revenue bond issue
used to finance the acquisition or construction of fire protection/EMS improvements within the city; or
3. As described in section 2.06.16901680 or 2.06.17001690.G.
F. [Fire protection/EMS impact fee reimbursement.] When the commission determines to fund capacity
expanding capital improvements to the fire protection/EMS system and the commission determines prior to
expenditure of funds for such improvements that, upon future development, such improvements may be
considered project related improvements the commission may by resolution create a fire protection/EMS
impact fee reimbursement district. The resolution creating the district must:
1. Identify the specific fire protection/EMS improvements that will be subject to reimbursement if
determined at a later date to be a project related improvement;
2. Identify the real property to be included in such district wherein future development may be required
to provide reimbursement;
3. Identify the rationale for the commission'’s determination that such improvements may be considered
in the future to be project related improvements;
4. Identify the estimated amount of repayment that will be due from each property, the methodology for
adjusting the estimated amount to the actual costs of construction, and the methodology for
determining such amount;
5. Identify whether the amount of repayment will account for the time value of the initial expenditure,
and if so, describe the calculation methodology;
6. Identify the period of time the reimbursement district will exist; and
7. Identify the required timing of payment of the reimbursement which may be upon annexation or prior
to final subdivision or site plan approval, and in no case later than issuance of a building permit.
Prior to adoption of a resolution creating the reimbursement district, the city must provide 15 business days
written notice to owners of real property within the proposed district.
G. Exemptions from fire protection/EMS impact fee.
1. The following types of development shall be are exempted from payment of the fire protection/EMS
impact fee:
a. Reconstruction or replacement of a previously existing residential unit that does not create any
additional or larger residential units.
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b. Construction of unoccupied accessory units structures related to a residential unit.
c. Projects that the applicant can demonstrate will produce no greater demand for fire
protection/EMS from such land than existed prior to issuance of such permit.
d. Projects for which a fire protection/EMS impact fee has previously been paid in an amount that
equals or exceeds the fire protection/EMS impact fee that would be required by this division.
2. Any such claim for exemption must be made no later than the time when the applicant applies for the
first permit of a type listed in subsection A.1 of this section for the proposed development, and any
claim for exemption not made at or before that time shall have been is waived.
3. The city shall must determine the validity of any claim for exemption pursuant to the criteria set forth
in subsections G.1 and G.2 of this section.
Sec. 2.06.16701660. Water impact fees.
A. Imposition of water impact fees.
1. Any person who seeks to obtain a permit for connection to the city water system, or who is subject to
subsection B.2.b of this section and applies for a city permit to expand or add to the structure served
by a previously approved water connection, or any extension of such a permit issued before the
effective date of the ordinance from which this division is derived, is required to pay a water impact fee
in the amount specified in the commission resolution adopting the water impact fee service area
reportstudy and establishing the water impact fee and as updated as required in this division; or
2. Any delayed payment of impact fees as specified and approved by the city commission in accordance
with chapter 38, article 43division 38.380.
3. No permits for connection to the city water system may be issued until the water impact fee described
in this division has been paid, unless the development for which the permit is sought is exempted by
subsection F of this section; or unless deferral of payment of the water impact fee has been approved
by the city pursuant to a deferral program approved by resolution of the commission in compliance
with 2.06.17201700.I.
B. Computation of amount of water impact fee.
1. An applicant required by this division to pay a water impact fee may choose to have the amount of
such fee determined pursuant to either subsection B.2 or B.3 of this section.
2. The city shall must determine the amount of the required water impact fee by reference to the most recently adopted water impact fee studyschedule unless the applicant chooses to submit an
individualized calculation pursuant to subsection B.32.a of this section or the city determines the
application to be subject to subsection B.23.b of this section. If the applicant is applying for a
replacement for a water connection permit issued previously or extension for a permit, then the fee
shall be is the net positive difference between the service demand and associated fee applicable at the
time of the current permit application and any the service demand for which a water impact fee was
previously paid pursuant to this division for the same structure. In the event that the fee applicable at
the time of the replacement permit application is lower than the water impact fee previously paid
pursuant to this division for the same structure, there shall be no refund of water impact fees
previously paid is allowed.
23. Individualized calculations.
a. An applicant may request that the city determine the amount of the required water impact fee
by reference to an independent fee calculation study for the applicant's development prepared
at the applicant's cost by a professional engineer and/or economist and submitted to the city
transportation and engineering director. Any such study shall must be based on the same service
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standards and unit costs used in the most recently adopted water impact fee study and must
document the economic methodologies and assumptions used.
1. Independent fee calculation studies must include documentation of rate of calls for service,
required service standard, and any other relevant data for the proposed land use.
2. Economic studies must include documentation of any special factors that the applicant
believes will reduce the service demand otherwise attributable to the proposed land use.
3. The city must consider all such documentation and any independent fee calculation study
submitted by the applicant. The city is not required to accept any such study or
documentation that the city deems to be inaccurate or unreliable and may request that the
applicant submit additional or different documentation for consideration. Any independent
fee calculation study submitted by an applicant may be accepted, rejected, or accepted
with modifications by the city as the basis for calculating transportation impact fees.
4. The city will review and determine whether or not to accept a customized calculation
within 90 calendar days of submittal. If accepted, the city will use the customized
calculation in assessing the fee and no further correspondence is required. If the city rejects
a customized calculation the city will inform the applicant of the reasons in writing.
5. Upon acceptance, or acceptance with modifications, of an independent fee calculation
study and documentation, the city will use the formulas and methodology contained within
the most recently adopted transportation impact fee study to determine the transportation
impact fee.
Any independent fee calculation study submitted by an applicant may be accepted, rejected, or
accepted with modifications by the city as the basis for calculating water impact fees. If such
study is accepted, or accepted with modifications, as a more accurate measure of the demand for
new water facilities created by the applicant's proposed development than the applicable fee
shown in the most recently adopted water impact fee study, then the water impact fee due
under this division may be calculated according to such study.
b. The city may identify a user as having extraordinary demands for water service which are not
accurately represented by the average usage which was relied upon by the methodology which
generated the calculated charges in the most recently adopted water impact fee study. In this
circumstance the city shall must prepare a customized calculation based upon the most recently
adopted water impact fee service area reportstudy.
1. The impact fee paid for water meters larger than three inches as of the effective date of the
ordinance from which this division is derived may be adjusted based on actual usage. If
usage is greater than 110 percent of anticipated volume during the 12-month period of
time beginning six months after building occupancy is granted by the city, an additional
impact fee may be charged, using the same techniques for calculating peak day and storage
EDUs and multiplying by the peak day impact fee cost per EDU and the storage impact fee
cost per EDU then in effect. The additional impact fee is the positive net demand between
a previously calculated impact fee and the impact fee based upon the metered demand.
C. Payment of water impact fee.
1. All funds paid by an applicant pursuant to this section division shall must be identified as water impact
fees and shall must be promptly deposited in the water impact fee fund described in subsection D of
this section.
D. Water impact fee funds.
1. A single water impact fee fund is created and such fund must be maintained in an interest bearing
account.
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2. Such fund must may contain those water impact fees collected pursuant to this division and any
interest which may accrue from time to time on such amounts.
3. Such fund may also contain reimbursements collected pursuant to section 2.06.1670.1660.F.
E. Use of water impact fee funds. The moneys in the water impact fee fund shall must be used only:
1. To acquire or construct capacity expanding improvements to the city water system; or
2. To pay debt service on any portion of any future general obligation bond issue or revenue bond issue
used to finance improvements to the city water system; or
3. As described in section 2.06.16901680 or 2.06.17001690.G.
F. [Water impact fee reimbursement.] When the commission determines to fund capacity expanding capital
improvements to the water system and the commission determines prior to expenditure of funds for such
improvements that, upon future development, such improvements may be considered project related
improvements the commission may by resolution create a water impact fee reimbursement district. The
resolution creating the district must:
1. Identify the specific water improvements that will be subject to reimbursement if determined at a later
date to be a project related improvement;
2. Identify the real property to be included in such district wherein future development may be required
to provide reimbursement;
3. Identify the rationale for the commission's determination that such improvements may be considered
in the future to be project related improvements;
4. Identify the estimated amount of repayment that will be due from each property, the methodology for
adjusting the estimated amount to the actual costs of construction, and the methodology for
determining such amount;
5. Identify whether the amount of repayment will account for the time value of the initial expenditure,
and if so, describe the calculation methodology;
6. Identify the period of time the reimbursement district will exist; and
7. Identify the required timing of payment of the reimbursement which may be upon annexation or prior
to final subdivision or site plan approval, and in no case later than issuance of a building permit.
Prior to adoption of a resolution creating the reimbursement district, the city must provide 15 business days
written notice to owners of real property within the proposed district.
G. Exemptions from water impact fees.
1. The following types of development shall be are exempted from payment of the water impact fee:
a. Alteration or expansion of an existing nonresidential building that does not require an additional
or larger water meter;
b. Replacement of a nonresidential building or structure of the same size that does not require an
additional or larger water meter;
c. The reconstruction or replacement of a previously existing residential unit that does not create
any additional or larger residential units.
2. The installation of fire lines for fire protection shall beare exempted from payment of the water impact
fee.
3. Any such claim for exemption must be made no later than the time when the applicant applies for the
first permit of a type listed in subsection A.1 of this section for the proposed development, and any
claim for exemption not made at or before that time shall have beenis waived.
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4. The city shall must determine the validity of any claims for exemption pursuant to the criteria set forth
in subsections G.1 and G.2 of this section.
Sec. 2.06.16801670. Wastewater impact fees.
A. Imposition of wastewater impact fees.
1. Any person who seeks to obtain a permit for connection to the city wastewater system, or who is
subject to subsection B.2.b of this section and applies for a city permit to expand or add to the
structure served by a previously approved water connection, or any extension of such a permit issued
before the effective date of the ordinance from which this division is derived is required to pay a
wastewater impact fee in the amount specified in the commission resolution adopting the wastewater
impact fee service area report study and establishing the wastewater impact fee and as updated as
required in this division; or
2. Any delayed payment of impact fees as specified and approved by the city commission in accordance
with chapter 38, article 43division 38.380.
3. No permits for connection to the city water system may be issued until the water impact fee described
in this division has been paid, unless the development for which the permit is sought is exempted by
subsection F of this section; or unless deferral of payment of the wastewater impact fee has been
approved by the city pursuant to a deferral program approved by resolution of the commission in
compliance with 2.06.17201700.I.
B. Computation of amount of wastewater impact fee.
1. An applicant required by this division to pay a water impact fee may choose to have the amount of
such fee determined pursuant to either subsection B.2 or B.3 of this section.
2. The city shall must determine the amount of the required wastewater impact fee by reference to the
most recently adopted wastewater impact fee schedulestudy unless the applicant chooses to submit
an individualized calculation pursuant to subsection B.32.a of this section or the city determines the
application to be subject to subsection B.32.b of this section. If the applicant is applying for a
replacement for a wastewater connection permit issued previously or extension for a permit, then the
fee shall be is the net positive difference between the service demand and associated fee applicable at
the time of the current permit application and any wastewater impact fee previously paid pursuant to
this division for the same structure. In the event that the fee applicable at the time of the replacement permit application is lower than the wastewater impact fee previously paid pursuant to this division for
the same structure, there shall be no refund of wastewater impact fees previously paid is allowed.
32. Individualized calculations.
a. An applicant may request that the city determine the amount of the required wastewater
impact fee by reference to an independent fee calculation study for the applicant's
development prepared at the applicant's cost by a professional engineer and/or economist
and submitted to the city transportation and engineering director. Any such study shall
must be based on the same service standards and unit costs used in the most recently
adopted wastewater impact fee study and must document the economic methodologies
and assumptions used. Any independent fee calculation study submitted by an applicant
may be accepted, rejected, or modified by the city as the basis for calculating wastewater
impact fees. If such study is accepted or accepted with modifications as a more accurate
measure of the demand for new wastewater facilities created by the applicant's proposed
development than the applicable fee shown in the most recently adopted wastewater
impact fee study, then the wastewater impact fees due under this division shall be
calculated according to such study.
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a. Independent fee calculation studies must include documentation of rate of calls for service,
required service standard, and any other relevant data for the proposed land use.
b. Economic studies must include documentation of any special factors that the applicant believes
will reduce the service demand otherwise attributable to the proposed land use.
c. The city must consider all such documentation and any independent fee calculation study
submitted by the applicant. The city is not required to accept any such study or documentation
that the city deems to be inaccurate or unreliable and may request that the applicant submit
additional or different documentation for consideration. Any independent fee calculation study
submitted by an applicant may be accepted, rejected, or accepted with modifications by the city
as the basis for calculating transportation impact fees.
d. The city will review and determine whether or not to accept a customized calculation within 90
calendar days of submittal. If accepted, the city will use the customized calculation in assessing
the fee and no further correspondence is required. If the city rejects a customized calculation the
city will inform the applicant of the reasons in writing.
e. Upon acceptance, or acceptance with modifications, of an independent fee calculation study and
documentation, the city will use the formulas and methodology contained within the most
recently adopted transportation impact fee study to determine the transportation impact fee.
b. The city may identify a user as having extraordinary demands for wastewater service which are
not accurately represented by the average usage which was relied upon by the methodology in
the most recently adopted wastewater impact fee study. In this circumstance the city shall must
prepare a customized calculation based upon the methodology in the water impact fee study.
When applicable an adjustment to the wastewater treatment portion of the impact fee for high
strength discharge will be applied.
(1) The impact fee paid for water meters larger later than three inches as of the effective date
of the ordinance from which this division is derived may be adjusted based on actual usage.
If usage is greater than 110 percent of anticipated volume or other measure of demand
during the 12-month period of time beginning six months after building occupancy is granted by the city, an additional impact fee may be charged, using the same techniques
for calculating treatment and collection in EDUs and multiplying by the impact fee cost per
EDU. The additional impact fee is the positive net demand between a previously calculated
impact fee and the impact fee based upon the metered demand.
C. Payment of wastewater impact fee.
1. All funds paid by an applicant paid pursuant to this section division shall must be identified as
wastewater impact fees and shall must be promptly deposited in the wastewater impact fee fund
described in subsection D of this section.
D. Wastewater impact fee funds.
1. A single wastewater impact fee fund is created and such fund must be maintained in an interest
bearing account.
2. Such fund must may contain those wastewater impact fees collected pursuant to this division and any
interest which may accrue from time to time on such amounts.
3. Such fund may also contain reimbursements collected pursuant to section 2.06.16801670.F.
E. Use of wastewater impact fee funds. The moneys in the wastewater impact fee fund shall must be used only:
1. To acquire or construct capacity expanding improvements to the city wastewater system; or
2. To pay debt service on any portion of any future general obligation bond issue or revenue bond issue
used to finance improvements to the city wastewater system; or
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3. As described in section 2.06.16901680 or section 2.06.17001690.G.
F. [Wastewater impact fee reimbursement.] When the commission determines to fund capacity expanding
capital improvements to the wastewater system and the commission determines prior to expenditure of
funds for such improvements that, upon future development, such improvements may be considered project
related improvements the commission may by resolution create a wastewater impact fee reimbursement
district. The resolution creating the district must:
1. Identify the specific wastewater improvements that will be subject to reimbursement if determined at
a later date to be a project related improvement;
2. Identify the real property to be included in such district wherein future development may be required
to provide reimbursement;
3. Identify the rationale for the commission's determination that such improvements may be considered
in the future to be project related improvements;
4. Identify the estimated amount of repayment that will be due from each property, the methodology for
adjusting the estimated amount to the actual costs of construction, and the methodology for
determining such amount;
5. Identify whether the amount of repayment will account for the time value of the initial expenditure,
and if so, describe the calculation methodology;
6. Identify the period of time the reimbursement district will exist; and
7. Identify the required timing of payment of the reimbursement which may be upon annexation or prior
to final subdivision or site plan approval, and in no case later than issuance of a building permit.
Prior to adoption of a resolution creating the reimbursement district, the city must provide 15 business days
written notice to owners of real property within the proposed district.
G. Exemptions from wastewater impact fees.
1. The following types of development shall beare exempted from payment of the wastewater impact
fee:
a. Alteration or expansion of an existing nonresidential building that does not require an additional
or larger water meter;
b. Replacement of a nonresidential building or structure of the same size that does not require an
additional or larger water meter;
c. The replacement of a previously existing residential unit that does not create any additional or
larger residential units.
2. Any such claim for exemption must be made no later than the time when the applicant applies for the
first permit of a type listed in subsection A.1 of this section for the proposed development, and any
claim for exemption not made at or before that time shall have beenis waived.
3. The city shall must determine the validity of any claim for exemption pursuant to the criteria set forth
in subsections G.1 and G.2 of this section.
Sec. 2.06.16901680. Refunds of development impact fees paid.
A. Refunds of development impact fees shall must be made only in the following instances and in the following
manner:
1. Upon application to the impact fee coordinator by the applicant, the city shall must refund the
development impact fee paid if capacity is available and service is denied.
2. Expenses and encumbrances.
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a. Upon application to the impact fee coordinator, the city shall must refund the development
impact fee paid and not expended or encumbered within ten years from the date the
development impact fee was paid or spent in a manner not in accordance with this division or
MCA 17-6-1602. Refunds shallmust be paid to the owner of the property at the time impact fee
in question was paidthe refund is due. In determining whether development impact fees have
been expended or encumbered, fees shall must be considered encumbered on a first-in, first-out
(FIFO) basis.
b. When the right to a refund exists due to a failure to expend or encumber development impact
fees, the city shall must publish written notice within 30 days after the expiration of the ten year
period from the date development impact fee was paid. The published notice shall must contain
the heading "Notice of Entitlement to Development Impact Fee Refund."
3. If an applicant has paid a development impact fee required by this division and has obtained any of the
types of permits or extensions listed in sections 2.06.16501640.A.1, 2.06.16601650.A.1,
2.06.16701660.A.1, or 2.06.16801670.A.1, and,
a. The applicant cancels the project to beginning construction of the work for which the fee was
paid, or
b. tThe permit or extension for which the fee was paid later expires without the possibility of
further extension and construction of the project has not begun, then the applicant who paid
such fee shall beis entitled to a refund of the fee paid, without interest. In order to be eligible to
receive such refund, the applicant who paid such fee shall be required tomust submit an
application for such refund within 30 calendar days after the expiration of the permit or
extension for which the fee was paid.
4. A refund application shall must be made to the impact fee coordinator within one year30 calendar days
from the date such refund becomes payable under subsections A.1 and through BA.3 of this section, or
within one year from the date of publication of the notice of entitlement of a refund under subsection
BA.2 of this section, whichever is later. Any refund not applied for within said time period shall be
deemedis waived.
5. A refund application shall must include information and documentation sufficient to permit the impact
fee coordinator to determine whether the refund claimed is proper and, if so, the amount of such
refund.
6. A refund shall include a pro rata share of interest actually earned on the unused or excess
development impact fee paid.
67. All refunds shall must be paid within 690 days after the impact fee coordinator determines that such
refund is due.
8. Any refund payable pursuant to subsections A and B of this section, shall be made to the record owner
of property as of the date the refund was due.
89. Once paid, an impact fee may not be refunded in exchange for impact fee credits issued according to
section 2.06.17001690.
Sec. 2.06.17001690. Credits against development impact fees.
A. After the effective date of the ordinance from which this division is derived, mandatory or voluntary land or
easement dedications for transportation, fire protection, water, or wastewater improvements, and
mandatory or voluntary acquisition or construction of capital improvements to the transportation system or
the city fire protection, water, or wastewater systems by an applicant in connection with a proposed
development may result in a pro rata credit against the development impact fee for the same type of service
or facility otherwise due for such development, except that no such credit shall may be awarded for:
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1. Projects or land dedications not listed on the impact fee capital improvements program (CIP); or
2. Land dedications for, or acquisition or construction of, project-related improvements as defined in
section 2.06.1630; or
3. Any voluntary land or easement dedications not accepted by the city; or
4. Any voluntary acquisition or construction of improvements not approved in writing by the city prior to
commencement of the acquisition or construction.
B. In order to obtain a credit against development impact fees otherwise due, an applicant must submit a
written offer to dedicate to the city specific parcels of qualifying land or easements, or to acquire or
construct specific improvements to the transportation system or the city fire protection, water, or
wastewater systems in accordance with all applicable state or city design and construction standards, and
must specifically request a credit against such development impact fees. Such written request must be made
on a form provided by the city, must contain a statement under oath of the facts that qualify the applicant to
receive a credit, must be accompanied by documents evidencing those facts, and must be approved not later
than the initiation of construction of improvements or the acceptance by the city of land dedications, or the
applicant's claim for the credit shall beis waived. The granting of credit shall be approved by the city
commission. The city shall may approve a credit only after showing making findings that the need for the
dedication or construction is clearly documented pursuant to MCA 7-6-1602 and that any land dedication
proposed for credit is determined to be appropriate for the proposed use.
1. Upon receipt of a complete application for impact fee credit, the impact fee coordinator shall must
coordinate review of the application for compliance with the requirements of this division and other
relevant requirements. The impact fee coordinator must consult with applicable department directors
during the review. Upon completion of the review the impact fee coordinator shall either must:
a. forward the application to the city manager, or when required to the city commission, for
approval Approve the application;
b. or iIf the application is insufficient or otherwise does not conform to the city's requirements,
shall communicate in writing to the applicant the reason the credit request failed.
c. If the application satisfies the requirements and is approved, the credit may be provided in any of
the allowed forms as described in subsection G of this section.
a2. Factors for consideration:
a.(1) When credit is sought for an improvement listed in the second through fifth years of the CIP after
the current fiscal year there shall beis a rebuttable presumption that any credit shall is to be
awarded as a credit balance and not as cash.
(2) The final decision to approve a credit request in excess of $1,000,000.00 from a single impact fee
fund shall be made by the city commission.
b.(3) In the event that the city manager believes that a credit request may result in a significant effect
on policy decisions the credit request may be referred to the city commission for final action,
regardless of the dollar amount.
(4) In the event that the city considers that award of a credit may negatively impact its ability to
construct improvements listed sooner in time on the CIP or otherwise interfere with city
priorities, they may decline to award a credit at that time without removing the item from the
CIP.
32. Appeals of staff administrative decisions on credit requests may be appealed to the city manager
commission per section 2.06.17301700.
C. The credit due to an applicant shall must be calculated and documented as follows:
1. Credit for qualifying land or easement dedications shallmust, at the applicant's option, be valued at:
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a. One hundred 100 percent of the most recent assessed value for such land as shown in the
records of the citystate assessor; or
b. That fair market value established by a private appraiser acceptable to the city in an appraisal
paid for by the applicant.
2. In order to receive credit for qualifying acquisition or construction of transportation, fire protection,
water, or wastewater improvements, the applicant shall must submit preliminary complete
engineering drawings, specifications, and construction cost estimates to the city. The city shall must
determine the amount of credit due based on the information submitted, or, if it determines that such
information is inaccurate or unreliable, then on alternative engineering or construction costs
acceptable to the city. Final credit values are determined after completion of construction and the city
verifies final costs.
D. Approved credits shall become effective at the following times:
1. Approved credit for land or easement dedications shall becomes effective when the land has been
conveyed to the city in a form acceptable to the city, and at no cost to the city, and has been accepted
by the city commission. When such conditions have been met, the city shall must note that fact in the
credit record maintained by the city department of finance. Upon request of the credit holder, the city
shall must send the credit holder a letter stating the credit balance available to the credit holder.
2. Approved credits for the acquisition or construction of transportation, fire protection, water, or
wastewater improvements shall generally become effective when:
a. All required construction has been completed and has been accepted by the city; and
b. A suitable maintenance and warranty bond has been received and approved by the city; and
c. All design, construction, inspection, testing, bonding, and acceptance procedures have been
completed in compliance with all applicable city and state procedures.
However, approved credits for the construction of improvements may become effective at an earlier date if the
applicant posts security in the form of a performance bond, irrevocable letter of credit, or escrow agreement, and
the amount and terms of such security are accepted by the city. At a minimum, such security must be in the
amount of the approved credit or an amount determined to be adequate to allow the city to construct the
improvements for which the credit was given, whichever is higher.and completes all other steps necessary under
38.270 for securing completion of infrastructure. When such conditions have been met, the city shallmust note
that fact in the credit record maintained by the city department of finance. Upon request of the credit holder, the
city shallmust also send the credit holder a letter stating the credit balance available to the credit holder.
E. Approved credits may be used to reduce the amount of development impact fees due from any proposed
development for the same type of service or facility for which the applicant dedicated land or acquired or
constructed improvements until the amount of the credit is exhausted. Each time a request to use credit
from a mandatory or voluntary dedication, acquisition, or construction is presented to the city, the city
shallmust reduce the amount of the development impact fee of the same type otherwise due from the
applicant and shall must note in the city records the amount of credit remaining, if any. In the case of a
mandatory dedication, acquisition, or construction, any credit in excess of the amount of the development
impact fee otherwise due under this division shall beis deemed excess credit that is remaining and available
for use by the applicant. In the case of a voluntary dedication, acquisition, or construction, any credit in
excess of the amount of the development impact fee of the same type and applicable to the project shall
beis deemed excess credit that is remaining and available for use by the applicant. Upon request of the credit
holder, the city shall alsomust send the credit holder a letter stating the amount of credit remaining to the
credit holder.
F. Approved credit shall may only be used to reduce the amount of development impact fees of the same type
otherwise due under this division and shall must not be paid to the applicant in cash or in credit against any
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development impact fees for a different type of facility or service or against any other moneys due from the
applicant to the city, except as described in subsection G of this section.
G. If the amount of approved credit for a mandatory dedication, acquisition, or construction exceeds the
amount of the development impact fees of the same type otherwise due under this division, the applicant
may request in writing that the city provide for reimbursement of any excess credit to the applicant in cash.
Such written request must be approved not later than the initiation of construction of improvements, or the
acceptance by the city of land dedications, or the applicant's claim shall beis waived. Upon receipt of such a
written request, the city may, at its discretion:
1. Arrange for the reimbursement of such excess credit from the impact fee fund for the same type of
service or facility from development impact fees paid by others;
2. Arrange for the reimbursement of such excess credit through the issuance of a promissory note
payable in not more than ten years and bearing interest equal to the interest rate paid by the city for
its long-term debt; or
3. Reject the request for cash and provide credit. Such excess credit shall must be valued at 100 percent
of actual developer costs for the excess improvements, or at the actual appraised value of such excess
improvements, at the city's option.
H. Credit may be transferred from one holder to another by any written instrument notarized writing clearly
identifying the credit issued under subsection C of this section that is to be transferred, provided that such
instrument is signed by both the transferor and transferee, and that the document is delivered to the city for
registration of the change in ownership.
I. In the event that land is annexed into the city from the county after the effective date of the ordinance from
which this division is derived, and that road or fire impact fees have been previously paid to the county, an
applicant proposing a development on the land may request in writing a credit against the transportation
impact fee equal to the amount of any road impact fee paid to the county for the same land and may also
request a credit against the fire protection impact fee equal to the amount of any fire protection impact fee
paid to the county for the same land. Such written request must be filed not later than the time when an
applicant applies for the first permit of a type listed in section 2.06.1640.A.1 or 2.06.1650.A.1 that creates an
obligation to pay the type of development impact fee against which the credit is requested, or the applicant's
claim shall be waived.
Sec. 2.06.17101700. Miscellaneous provisions.S
A. Interest earned on moneys in any impact fee fund shall be considered part of such fund and shall be subject
to the same restrictions on use applicable to the impact fees deposited in such fund.
B. No moneys from any impact fee fund shall be spent for periodic or routine maintenance of any facility of any
type or to cure deficiencies in public facilities existing on the effective date of the ordinance from which this
division is derived.
C. Nothing in this division shall restrict the city from requiring an applicant to construct reasonable project
improvements required to serve the applicant's project, whether or not such improvements are of a type for
which credit is available under section 2.06.1690.
D. The city shall maintain accurate records of the development impact fees paid, including the name of the
person paying such fees, the project for which the fees were paid, the date of payment of each fee, the
amounts received in payment for each fee, and any other matters that the city deems appropriate or
necessary to the accurate accounting of such fees, and such records shall be available for review by the
public during city business hours.
E. At least once during each fiscal year of the city, the city manager shall present to the city commission a
proposed impact fee capital improvements program for the transportation system, fire protection system,
water system, and wastewater system, which identifies the capacity-adding capital improvements that will
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benefit new development subject to the terms of this division, exclusive of any improvements needed to
correct existing deficiencies or for operation or maintenance purposes. Such capital improvements program
shall assign moneys from each impact fee fund to specific projects and related expenses for improvements to
the type of facilities or services for which the fees in that fund were paid. Any moneys, including any accrued
interest, not assigned to specific projects within such capital improvements program and not expended
pursuant to section 2.06.1680 or 2.06.1690.G shall be retained in the same impact fee fund until the next
fiscal year. The impact fee capital improvements program shall be adopted by the city commission as a
supplemental document to the city budget. The impact fee capital improvements program shall schedule the
construction of capital improvements to serve projected growth and project capital improvement costs,
expenditures and impact fee fund revenues for a five-year period. The individual fee funds shall maintain a
positive fiscal balance. The program may be amended by a majority vote of the city commission. The city
manager shall adopt and revise, as needed, an administrative impact fee manual to carry out the purposes of
this division.
AF. The city shall be entitled tomay retain not more than five percent of the development impact fees collected
as payment for the expenses of collecting the fee and administering this division.
BG. If a development impact fee has been calculated and paid based on a mistake or misrepresentation, it
shallmust be recalculated. Any amounts overpaid by an applicant shallmust be refunded by the city to the
applicant within 3060 business days after the city's acceptance of the recalculated amount, with interest at
the rate of five percent per annum since the date of such overpayment. Any aAmounts underpaid by the
applicant shallmust be paid to the city within 30 business days after the city's acceptance of the recalculated
amount unless the city and landowner agree to a different time frame, with interest at the rate of five
percent per annum since the date of such underpayment. In the event the underpayment is caused by an
error attributed solely to the city, the applicant shall pay the recalculated amount without interest. In the
case of an underpayment to the city, the city shallmust not issue any additional permits or approvals for the
project for which the development impact fee was previously paid until such underpayment is corrected; and
if amounts owed to the city are not paid within such 30 business -day period, the city may also repeal any
permits issued in reliance on the previous payment of such development impact fee and refund such fee to
the then current owner of the land. The city may decline to collect underpaid fees if the city determines that
the cost of collection of underpaid fees exceeds benefit of the fee.
CH. 1. In order to promote affordable workforce housing of the city, the city commission may waive impact fees
for workforce housing lots approved by the city commission pursuant to chapter 38, article 43, by paying pay
some or all of the impact fee from other funds of the city that are not restricted to other uses.
2. In order to promote the economic development of the city and the provision of affordable housing in the
city, the city commission may agree to pay some or all of the development impact fees imposed on a
proposed development by this division from other funds of the city that are not restricted to other uses.
3. Any such decision to pay development impact fees on behalf of an applicant shall beis at the discretion of
the city commission and mustshall be made pursuant to goals and objectives previously adopted by the city
commission to promote economic development and/or affordable housing.
Sec. 2.06.1720. Deferrals.
IA. The city commission may, by resolution, create a program to enable deferral of payment of impact fees to a
time after issuance of a building permit or a connection permit to the water and sewer systems. Any such
resolution shallmust:
1. Specify the circumstances and conditions under which a deferral may be allowed or disallowed.
2. Specify the points in time when the deferral may be requested, granted, and when payment of fees is
required.
3. Specify costs to be incurred with deferral and fee payment and who is responsible for paying those
costs.
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4. Specify the process to receive and process a request for a deferral, including any administrative fees or
required security for payment.
5. Specify the process for recognizing the payment of deferred fees and the release of any limitations on
the property.
6. Require an impact fee deferral agreement and related documents as approved by the city attorney to
be recorded at the Gallatin County Clerk and Recorder's Office securing the amount due, including a
covenant running with the land agreeing that a certificate of occupancy or other permit required by
this division when a certificate of occupancy is not required will not be provided until payment of the
deferred fees is verified.
Sec. 2.06.1730. Appeals, administration, and interpretation.
JA. 1. Any determination made by any official of the city charged with the administration of any part of this division
may be appealed to the development impact fees review committeecity manager by filing:
a. A written notice of appeal on a form provided by the city;
b. A written explanation of why the appellant feels that a determination was in error including any
supporting documentation; and
c. An appeal fee of $500.00 with the impact fee coordinator within ten 15 business working days
after the determination for which the appeal is being filed.
2. The development impact fees review committee shall meet to city manager must review the appeal
within 30 working days of the date the written appeal was presented to the impact fee coordinator. If
the city manager concludes that all or part of a determination made by an official of the city charged
with the administration of any part of this division was in error, then the appeal fee described in this
subsection must be returned to the appellant. If the appellant is dissatisfied with the decision of the
development impact fees review committee, the appellant may appeal the decision to the city
commission by filing a written request with the city clerk within ten working days of the committee's
decision. At the regular meeting following the filing of the appeal, the city commission shall fix a time
and place for hearing the appeal; and the city clerk shall mail notice of the hearing to the appellant at
the address given in the notice of appeal. The hearing shall be conducted at the time and place stated
in such notice given by the city commission. The determination of the city commission shall be final. If
the city commission concludes that all or part of a determination made by an official of the city charged with the administration of any part of this division was in error, then the appeal fee described in this
subsection shall be returned to the appellant.
K. Updating of impact fee information.
1. The facility plans described in this division shall be reviewed by the city at least once every five years
and if a revision of a facility plan to address changed conditions is deemed necessary by the city, the
plan shall be updated.
2. The development impact fees described in this division, fee studies, data and analysis relied upon and
required by MCA 7-6-1602, and the administrative procedures and manual of this division shall be
updated at least once every four fiscal years.
3. The impact fee capital improvement program shall be reviewed and updated as provided in section
2.06.1700.E.
4. The purpose of the review and updating of impact fee related documentation is to ensure that:
a. The demand and cost assumptions underlying such fees are still valid;
b. The resulting fees do not exceed the actual cost of constructing improvements that are of the
type for which the fee was paid and that are required to serve new development;
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c. The moneys collected or to be collected in each impact fee fund have been, and are expected to
be, spent for improvements of the type for which such fees were paid; and
d. That such improvements will benefit those developments for which the fees were paid.
L. The development impact fees shown in the most recently adopted impact fee studies shall be adjusted
annually to reflect the effects of inflation on those costs for improvements set forth in the impact fee
studies. On January 1 of each year unless and until the impact fee studies are revised or replaced, and then
beginning in the subsequent calendar year, each fee amount set forth in each such study shall be adjusted by
multiplying such amount by one plus the value of the Construction Cost Index published in the first
December edition of the current year. (Source: Engineering News Record.) Such adjustments in such fees
shall become effective immediately upon calculation by the city and shall not require additional action by the
city commission to be effective.
B. The impact fee coordinator is responsible for interpretation of this division.
CM. Violation of this division shall beis a misdemeanor and shall beis subject to those remedies provided in
section 1.01.210. Knowingly furnishing false information to any official of the city charged with the
administration of this division on any matter relating to the administration of this division, including without
limitation the furnishing of false information regarding the expected size, use, or traffic impacts on services
from a proposed development, shall be is a violation of this division. In addition to, or in lieu of, any criminal
prosecution, the city or any applicant for a permit of the types described in section 2.06.16501640.A.1,
2.06.16601650.A.1, 2.06.16701660.A.1, or 2.06.16801670.A.1 shall have the right to sue in civil court to
enforce the provisions of this division.
DN. The section titles used in this division are for convenience only and shall do not affect the interpretation of
any portion of the text of this division.
EO. Any judicial action or proceeding to attack, review, set aside, or annul the reasonableness, legality, or validity
of any development impact fee must be filed and service of process effected within 90 calendar days
following the date of imposition of the fee or the final determination of the city commission, whichever is
the later. final administrative action to impose the fee, including resolution of any appeals.
Secs. 2.06.1710—2.06.1840. Reserved.
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Memorandum
REPORT TO:Community Development Board
FROM:Chris Saunders, Community Development Manager
Erin George, Community Development Interim Director
SUBJECT:Review and Recommendation to City Commission Regarding the 2024
Service Area Report for Fire/Emergency Medical Services Impact Fees
MEETING DATE:September 9, 2024
AGENDA ITEM TYPE:Plan/Report/Study
RECOMMENDATION:Consider the Motion: Having reviewed and considered the staff presentation,
draft text, public comment, and all information presented, I hereby adopt the
findings presented by the Staff and recommend approval of the 2024 service
area report for Fire/EMS.
STRATEGIC PLAN:7.5. Funding and Delivery of City Services: Use equitable and sustainable
sources of funding for appropriate City services, and deliver them in a lean
and efficient manner.
BACKGROUND:The State of Montana authorizes impact fees through Title 7, Chapter 6, Part
16, Montana Code Annotated (MCA) [External Link]. An impact fee is defined
as:
(5) (a) "Impact fee" means any charge imposed upon development by a
governmental entity as part of the development approval process to fund
the additional service capacity required by the development from which it is
collected. An impact fee may include a fee for the administration of the
impact fee not to exceed 5% of the total impact fee collected.
(b) The term does not include:
(i) a charge or fee to pay for administration, plan review, or inspection
costs associated with a permit required for development;
(ii) a connection charge;
(iii) any other fee authorized by law, including but not limited to user
fees, special improvement district assessments, fees authorized under Title 7
for county, municipal, and consolidated government sewer and water
districts and systems, and costs of ongoing maintenance; or
(iv) onsite or offsite improvements necessary for new development to
meet the safety, level of service, and other minimum development
standards that have been adopted by the governmental entity.
The Community Development Board has been assigned by the City
Commission the duties of the Impact Fee Advisory Committee [External Link]
to review calculation of fees. An element of this duty is to review and
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recommend on the service area report (SAR).
A key part of the state authorization is the requirement for a local
government to prepare a service area report for each fee type. The SAR
consolidates key information relating to the future needs for infrastructure,
expected means to provide the infrastructure, and the process by which a
cost of additional services are assigned to units of new development. A copy
of 7-16-1602 MCA is attached to this agenda item. In addition to the details
of the SAR the City also provides documentation through its Fire Master Plan
[External PDF] and annual capital improvement program and budgets
[External link].
The City updates the SAR at least every four years to help ensure the fees are
accurate, reflect current construction costs and service needs, and remain
roughly proportionate and logically connected to the development that pays
the fees. The City hired TischlerBise, a nationally prominent specialist in
impact fees, to support the City in updating the impact fee SAR.
Staff has reviewed the draft SAR prepared by TischlerBise on behalf of the
City and finds that the document meets the requirements of state law for an
SAR. The SAR is in writing, the document has been provided to the public for
review through the Engage Bozeman website [External Link] as well as the
agenda for the Community Development Board meeting. The City has an
annual process to update a capital improvement program to schedule
construction of public facility capital improvements. As shown in the SAR,
actual costs of construction and reasonable estimate of costs have been
used, forecast for future needs are provided, necessary facilities to serve
future growth are identified, and the appropriateness of a single service area
is established. No maintenance or operational costs are included in the
calculated fee. All other necessary elements are also provided.
The City published formal notice in the Bozeman Daily Chronicle on
8/17/2024, 8/31/2024, and 9/07/2024 of the public hearings before the
Community Development Board and City Commission. A news item was
included on the City's website, the Engage Bozeman impact fee update
project website was established, several publicly available work sessions and
training sessions regarding impact fees have been held during the project,
and direct notification to interest groups occurred at the beginning of the
project.
The action under this agenda item is specific to the Fire/EMS impact fee. The
City also implements transportation, water, and wastewater fees. SAR for
those fees are under development and will come forward for public review
and Community Development Board recommendation as they are
completed.
The City has adopted various fiscal policies to guide how revenues and
expenditures are made. These are included in the City’s adopted budget
66
[external link], see page 175. A relevant policy is:
5. User fees and charges will be used, as opposed to general taxes, when
distinct beneficiary populations or interest groups can be identified.
User fees and charges are preferable to general taxes because user charges
can provide clear demand signals which assist in determining what services
to offer, their quantity, and their quality. User charges are also more
equitable, since only those who use the service must pay--thereby eliminating
the subsidy provided by nonusers to users, which is inherent in general tax
financing.
Consistent with this policy the City uses impact fees to fund capital
improvements to expand service capacity. All expenses for operations,
maintenance, and capital replacement come from other user fees,
assessments, and taxes as authorized by law. Also consistent with this policy,
impact fees are set only to the amount found necessary to offset the costs
due from new construction.
Most elements of the 2024 Fire/EMS SAR are very similar to previous SAR
although updated data has been used in the forecasts and other calculations.
The data requirements established by state law ensure a certain consistency
from one SAR to its successor. The primary change is to expand the range of
home sizes for which fees are calculated. As better data has become
available and a greater range of home sizes is being constructed it is
appropriate to consider if an improved fit between construction, expected
service demand, and fees charged can be established. It is also necessary to
keep the range realistic and reasonably descriptive of expected demand. For
example, although there is a demonstrated correlation between home size
and occupancy the occupancy of a home can never go below 1 regardless of
its size.
The expansion of dwelling size range is a policy option. It will add a modest
amount of additional work for staff to administer the program. The
Community Development Board could recommend the size range continue
in its current range from <1,400 sq. ft. to 3,001 sq. ft. and greater; or
recommend the expanded range included in the SAR.
UNRESOLVED ISSUES: None
ALTERNATIVES:1. Recommend approval of the draft service area report;
2. Recommend approval with modifications to the draft service area
report;
3. Recommend the draft service area report not be approved; or
4. Recommend to open and continue the public hearing on the application,
with specific request staff to supply additional information or to address
specific items.
FISCAL EFFECTS:The service area report does not expend funds. It does update the costs per
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unit of new development. Adoption of the SAR will enable continued
operation of the impact fee program to offset capital costs from new
construction for fire/EMS functions.
Attachments:
Bozeman MT Impact Fee Report_FireEMS_8.27.24.pdf
7-6-1602. Calculation of impact fees -- documentation
required -- ordinance or resolution -- requirements for
impact fees, MCA.pdf
Report compiled on: September 3, 2024
68
Fire/EMS
Service Area Report and
Impact Fee Study
Prepared for:
Bozeman, Montana
August 27, 2024
4701 Sangamore Road
Suite S240
Bethesda, MD
(301) 320-6900
www.TischlerBise.com
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Table of Contents
Executive Summary ............................................................................................................... 3
Montana Impact Fee Enabling Legislation ........................................................................... 3
Public Facilities ...................................................................................................................................... 3
Service Area Report .............................................................................................................................. 4
Legal Framework ................................................................................................................ 4
Methodology ..................................................................................................................... 6
Conceptual Impact Fee Calculation ...................................................................................................... 7
Evaluation of Credits ............................................................................................................................. 7
Maximum Supportable Impact Fees ................................................................................... 8
Fire/EMS Service Area Report .............................................................................................. 10
Service Area ........................................................................................................................................ 10
Cost Allocation .................................................................................................................................... 10
Service Demand Units ......................................................................................................................... 10
Level of Service and Cost Analysis .................................................................................... 12
Fire/EMS Station Space ....................................................................................................................... 12
Fire/EMS Station Land......................................................................................................................... 13
Fire/EMS Apparatus ............................................................................................................................ 13
Projected Service Demand Units and for Demand for Services .......................................... 15
Fire/EMS Growth-Related Capital Improvement Plans ...................................................... 16
Credit for Other Revenues Sources ................................................................................... 16
Fire/EMS Personnel and Operations ................................................................................................... 16
Maximum Supportable Fire/EMS Impact Fees .................................................................. 17
Projected Fire/EMS Impact Fee Revenue .......................................................................... 20
Capital Improvement Plan ................................................................................................... 21
Appendix A: Land Use Assumptions ..................................................................................... 22
Population and Housing Characteristics ............................................................................ 22
Building Permit History .................................................................................................... 22
Base Year Housing Units and Population .......................................................................... 23
Housing Unit and Population Projections .......................................................................... 26
Current Employment and Nonresidential Floor Area ......................................................... 27
Employment and Nonresidential Floor Area Projections ................................................... 27
Vehicle Trip Generation ................................................................................................... 29
Residential Vehicle Trips by Housing Type.......................................................................................... 29
Residential Vehicle Trips Adjustment Factors..................................................................................... 30
Nonresidential Vehicle Trips ............................................................................................................... 30
Vehicle Trip Projections .................................................................................................... 32
Demand Indicators by Dwelling Size ................................................................................. 33
Bozeman Control Totals ...................................................................................................................... 33
Demand Indicators by Dwelling Size ................................................................................................... 33
Persons by Dwelling Size ..................................................................................................................... 34
Person by Dwelling Size and Housing Type ......................................................................................... 35
Trip Generation by Dwelling Size ........................................................................................................ 38
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Vehicle Trip Ends by Dwelling Size ...................................................................................................... 39
Vehicle Trip Ends by Dwelling Size and Housing Type ........................................................................ 40
Appendix B: Land Use Definitions ........................................................................................ 42
Residential Development .................................................................................................................... 42
Nonresidential Development .............................................................................................................. 42
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EXECUTIVE SUMMARY
The City of Bozeman, Montana, contracted with TischlerBise to document land use assumptions, prepare
the Service Area Report, and update impact fees within the applicable service areas pursuant to Montana
Code 7-6-16 (hereafter referred to as the “Enabling Legislation”). Governmental entities in Montana may
assess impact fees to offset infrastructure costs to the governmental entity for public facilities needed to
serve future development. For each public facility for which an impact fee is imposed, the governmental
entity shall prepare and approve a service area report. The impact fees must (1) be reasonably related to
and reasonably attributable to the development's share of the cost of infrastructure improvements made
necessary by the new development and (2) may not exceed a proportionate share of the costs incurred
or to be incurred by the governmental entity in accommodating the development.
Impact fees are one-time payments used to construct system improvements needed to accommodate
future development, and the fee represents future development’s proportionate share of infrastructure
costs. Impact fees may be used for infrastructure improvements or debt service for growth-related
infrastructure. In contrast to general taxes, impact fees may not be used for operations, maintenance,
replacement, or correcting existing deficiencies.
This Service Area Report and associated update to its impact fees are for Fire/EMS public facilities. In a
tandem effort, TischlerBise is also updating the Service Area Reports for Transportation, Water, and
Wastewater public facilities.
Montana Impact Fee Enabling Legislation
The Enabling Legislation governs how impact fees are calculated for governmental entities in Montana.
Public Facilities
Under the requirements of the Enabling Legislation, impact fees may only be used for construction,
acquisition, or expansion of public facilities made necessary by new development. “Public Facilities”
means any of the following categories of capital improvements with a useful life of 10 years or more that
increase or improve the service capacity of a public facility (§7-6-1601(7)):
1. a water supply production, treatment, storage, or distribution facility;
2. a wastewater collection, treatment, or disposal facility;
3. a transportation facility, including roads, streets, bridges, rights-of-way, traffic signals, and
landscaping;
4. a storm water collection, retention, detention, treatment, or disposal facility or a flood control
facility;
5. a police, emergency medical rescue, or fire protection facility; and
6. other facilities for which documentation is prepared as provided in 7-6-1602 that have been
approved as part of an impact fee ordinance or resolution by:
7. a two-thirds majority of the governing body of an incorporated city, town, or consolidated local
government; or
8. a unanimous vote of the board of county commissioners of a county government.
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Also, §7-6-1601(5a) states that "impact fee" means any charge imposed upon development by a
governmental entity as part of the development approval process to fund the additional service capacity
required by the development from which it is collected. An impact fee may include a fee for the
administration of the impact fee not to exceed 5 percent of the total impact fee collected.
Service Area Report
For each public facility for which an impact fee is imposed, the governmental entity shall prepare and
approve a service area report. The service area report is a written analysis that must:
1. describe existing conditions of the facility;
2. establish level-of-service standards;
3. forecast future additional needs for service for a defined period of time;
4. identify capital improvements necessary to meet future needs for service;
5. identify those capital improvements needed for continued operation and maintenance of the
facility;
6. make a determination as to whether one service area or more than one service area is
necessary to establish a correlation between impact fees and benefits;
7. make a determination as to whether one service area or more than one service area for
transportation facilities is needed to establish a correlation between impact fees and benefits;
8. establish the methodology and time period over which the governmental entity will assign the
proportionate share of capital costs for expansion of the facility to provide service to new
development within each service area;
9. establish the methodology that the governmental entity will use to exclude operations and
maintenance costs and correction of existing deficiencies from the impact fee;
10. establish the amount of the impact fee that will be imposed for each unit of increased service
demand; and
11. have a component of the budget of the governmental entity that:
a. schedules construction of public facility capital improvements to serve projected
growth;
b. projects costs of the capital improvements;
c. allocates collected impact fees for construction of the capital improvements; and
d. covers at least a 5-year period and is reviewed and updated at least every 5 years.
Legal Framework
Both state and federal courts have recognized the imposition of impact fees as a legitimate form of land
use regulation, provided the fees meet standards intended to protect against regulatory takings. Land use
regulations, development exactions, and impact fees are subject to the Fifth Amendment prohibition on
taking of private property for public use without just compensation. To comply with the Fifth Amendment,
development regulations must be shown to substantially advance a legitimate governmental interest. In
the case of impact fees, that interest is in the protection of public health, safety, and welfare by ensuring
development is not detrimental to the quality of essential public services. The means to this end are also
important, requiring both procedural and substantive due process. The process followed to receive
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community input (i.e., stakeholder meetings, work sessions, and public hearings) provides opportunities
for comments and refinements to the impact fees.
There are three reasonable relationship requirements for impact fees that are closely related to “rational
nexus”, or “reasonable relationship” requirements enunciated by a number of state courts. Although the
term “dual rational nexus” is often used to characterize the standard by which courts evaluate the validity
of impact fees under the U.S. Constitution, we prefer a more rigorous formulation that recognizes three
elements: “need,” “benefit,” and “proportionality.” The dual rational nexus test explicitly addresses only
the first two, although proportionality is reasonably implied, and was specifically mentioned by the U.S.
Supreme Court in the Dolan case (Dolan v. City of Tigard, OR, 1994). Furthermore, the plaintiff in the 2024
Sheetz v. El Dorado County U.S. Supreme Court case argued that the El Dorado County, CA impact fee
program failed to meet the Nollan/Dolan test. The U.S. Supreme Court remanded the case back to the
California Supreme Court for further proceedings on a stricter interpretation of the rational nexus,
specifically the extent impact fees can be “roughly proportionate.” Thus, is has been determined that
State courts will make judgements further similar cases. Individual elements of the nexus standard are
discussed further in the following paragraphs.
All new development in a community creates additional demands on some, or all, public facilities provided
by local government. If the capacity of facilities is not increased to satisfy that additional demand, the
quality or availability of public services for the entire community will deteriorate. Impact fees may be used
to recover the cost of development-related facilities, but only to the extent that the need for facilities is
a consequence of development that is subject to the fees. The Nollan decision reinforced the principle
that development exactions may be used only to mitigate conditions created by the developments upon
which they are imposed. That principle clearly applies to impact fees. In this study, the impact of
development on infrastructure needs is analyzed in terms of quantifiable relationships between various
types of development and the demand for specific capital facilities, based on applicable level-of-service
standards.
The requirement that exactions be proportional to the impacts of development was clearly stated by the
U.S. Supreme Court in the Dolan case and is logically necessary to establish a proper nexus. Proportionality
is established through the procedures used to identify development-related facility costs, and in the
methods used to calculate impact fees for various types of facilities and categories of development. The
demand for capital facilities is measured in terms of relevant and measurable attributes of development
(e.g., a typical housing unit’s average weekday vehicle trips).
A sufficient benefit relationship requires that impact fee revenues be segregated from other funds and
expended only on the facilities for which the fees were charged. Impact fees must be expended in a timely
manner and the facilities funded by the fees must serve the development paying the fees. However,
nothing in the U.S. Constitution or the state enabling legislation requires that facilities funded with fee
revenues be available exclusively to development paying the fees. In other words, benefit may extend to
a general area including multiple real estate developments. Procedures for the earmarking and
expenditure of fee revenues are discussed near the end of this study. All of these procedural as well as
substantive issues are intended to ensure that new development benefits from the impact fees they are
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required to pay. The authority and procedures to implement impact fees is separate from and
complementary to the authority to require improvements as part of subdivision or zoning review.
As documented in this report, the City of Bozeman has complied with applicable legal precedents. Impact
fees are proportionate and reasonably related to the capital improvement demands of new development.
Specific costs have been identified using local data and current dollars. With input from City staff,
TischlerBise identified service demand indicators for each type of infrastructure and calculated
proportionate share factors to allocate costs by type of development. This report documents the formulas
and input variables used to calculate the impact fees for each type of public facility. Impact fee
methodologies also identify the extent to which new development is entitled to various types of credits
to avoid potential double payment of growth-related capital costs.
Methodology
Impact fees for public facilities made necessary by new development must be based on the same level of
service provided to existing development in the service area. There are three basic methodologies used
to calculate impact fees. They examine the past, present, and future status of infrastructure. The objective
of evaluating these different methodologies is to determine the best measure of the demand created by
new development for additional infrastructure capacity. Each method has advantages and disadvantages
in a particular situation and can be used simultaneously for different cost components. Additionally,
impact fees for public facilities can also include a fee for the administration of the impact fee not to exceed
five percent of the total impact fee collected.
Reduced to its simplest terms, the process of calculating impact fees involves two main steps: (1)
determining the cost of growth-related capital improvements and (2) allocating those costs equitably to
various types of development. In practice, though, the calculation of impact fees can become quite
complicated because of the many variables involved in defining the relationship between development
and the need for facilities within the designated service area. The following paragraphs discuss basic
methods for calculating impact fees and how those methods can be applied.
• Cost Recovery (past improvements) - The rationale for recoupment, often called cost recovery, is
that future development is paying for its share of the useful life and remaining capacity of facilities
already built, or land already purchased, from which future development will benefit. This
methodology is often used for utility systems that must provide adequate capacity before new
development can take place.
• Incremental Expansion (concurrent improvements) - The incremental expansion methodology
documents current level-of-service standards for each type of public facility, using both
quantitative and qualitative measures. This approach assumes there are no existing infrastructure
deficiencies or surplus infrastructure capacity. Future development is only paying its
proportionate share for growth-related infrastructure. Revenue will be used to expand or provide
additional facilities, as needed, to accommodate future development. An incremental expansion
methodology is best suited for public facilities that will be expanded in regular increments to keep
pace with development.
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• Plan-Based (future improvements) - The plan-based methodology allocates costs for a specified
set of improvements to a specified amount of development. Improvements are typically identified
in a long-range facility plan and development potential is identified by a land use plan. There are
two basic options for determining the cost per service demand unit: (1) total cost of a public
facility can be divided by total service demand units (average cost), or (2) the growth-share of the
public facility cost can be divided by the net increase in service demand units over the planning
timeframe (marginal cost).
Conceptual Impact Fee Calculation
In contrast to project-level improvements, impact fees fund growth-related infrastructure that will benefit
multiple development projects, or the entire service area (usually referred to as system improvements).
The first step is to determine an appropriate service demand indicator for the particular type of
infrastructure. The service demand indicator measures the number of service units for each unit of
development. For example, an appropriate indicator of the demand for roadways is vehicle trips or vehicle
miles of travel that can be determined by development type. The second step in the impact fee formula
is to determine infrastructure improvement units per service demand unit, typically called level-of-service
(LOS) standards. In keeping with the roadway example, a common LOS standard is volume to capacity
ratio. The third step in the impact fee formula is the cost of various infrastructure units. To complete the
roadway example, this part of the formula would establish a construction cost per lane mile of road
expansion.
Evaluation of Credits
A consideration of credits is integral to the development of a legally defensible impact fee. There are two
types of credits that should be addressed in impact fee studies and ordinances. The first is a revenue credit
due to possible double payment situations, which could occur when other revenues expected to be paid
by future development may contribute to the capital costs of infrastructure covered by the impact fee.
This type of credit is integrated into the fee calculation, thus reducing the fee amount.
The second type of credit is a site-specific credit for system improvements that have been included in the
impact fee calculations. Policies and procedures related to site-specific credits for system improvements
are addressed in the ordinance that establishes the impact fees. However, the general concept is that
developers may be eligible for site-specific credits only if they provide system improvements that have
been included in the impact fee calculations. Project improvements normally required as part of the
development approval process are not eligible for credits against impact fees. Site-specific credits are
addressed in the administration and implementation of the development fee program.
Below, Figure 1 summarizes service areas, methodologies, and infrastructure cost components.
Figure 1. Impact Fee Service Areas, Methodologies, and Cost Allocation
Fire/EMS Citywide -Fire Station Space
& Land, Apparatus -Calls
for Service
Cost
AllocationFee Category Service Area
Incremental
Expansion Plan-Based
Cost
Recovery
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Maximum Supportable Impact Fees
The following figures list the schedule of the maximum supportable impact fees by type of land use. The
fees represent the highest amount allowable for each type of applicable land use. The City may adopt fees
that are less than the amounts shown. However, a reduction in impact fee revenue will necessitate an
increase in other revenues, a decrease in planned capital expenditures, and/or a decrease in levels of
service.
The maximum supportable impact fees for residential development will be assessed per housing unit,
based on the square footage of the unit. This study presents additional size bands. The current fee
schedule has 10 bands, while 19 bands are included in the update. Expanding the schedule allows for
further proportionately. Nonresidential impact fees will be assessed per square foot of floor area.
Figure 2. Maximum Supportable Impact Fee Schedule – Single-Unit Dwelling Including Townhomes
Residential - Single-Unit Dwelling including Townhomes
Residential (per housing unit)
Under 600 0.038 $601 $384 $217
600 to 800 0.044 $696 $384 $312
801 to 1,000 0.054 $854 $384 $470
1,001 to 1,200 0.061 $965 $384 $581
1,201 to 1,400 0.068 $1,075 $384 $691
1,401 to 1,600 0.073 $1,155 $393 $762
1,601 to 1,800 0.078 $1,234 $401 $834
1,801 to 2,000 0.082 $1,297 $408 $889
2,001 to 2,200 0.086 $1,360 $415 $945
2,201 to 2,400 (avg.)0.089 $1,408 $422 $986
2,401 to 2,600 0.092 $1,455 $431 $1,024
2,601 to 2,800 0.095 $1,503 $439 $1,064
2,801 to 3,000 0.098 $1,550 $448 $1,102
3,001 to 3,200 0.100 $1,582 $469 $1,113
3,201 to 3,400 0.103 $1,629 $469 $1,160
3,401 to 3,600 0.105 $1,661 $469 $1,192
3,601 to 3,800 0.107 $1,692 $469 $1,223
3,801 to 4,000 0.109 $1,724 $469 $1,255
4,001 or More 0.111 $1,756 $469 $1,287
Maximum
Supportable Fee
Current
Fee
Increase/
Decrease
Dwelling Size
(square feet)
Calls per
Household
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Figure 3. Maximum Supportable Impact Fee Schedule – Other Residential
Figure 4. Maximum Supportable Impact Fee Schedule – Nonresidential Fee
Residential - Other Residential
Residential (per housing unit)
Under 600 0.036 $569 $272 $297
600 to 800 0.042 $664 $272 $392
801 to 1,000 0.051 $807 $272 $535
1,001 to 1,200 0.058 $917 $272 $645
1,201 to 1,400 0.064 $1,012 $272 $740
1,401 to 1,600 (avg.)0.069 $1,091 $279 $812
1,601 to 1,800 0.073 $1,155 $285 $870
1,801 to 2,000 0.078 $1,234 $290 $944
2,001 to 2,200 0.081 $1,281 $294 $987
2,201 to 2,400 0.085 $1,344 $301 $1,043
2,401 to 2,600 0.087 $1,376 $306 $1,070
2,601 to 2,800 0.090 $1,423 $312 $1,111
2,801 to 3,000 0.093 $1,471 $317 $1,154
3,001 to 3,200 0.095 $1,503 $359 $1,144
3,201 to 3,400 0.097 $1,534 $359 $1,175
3,401 to 3,600 0.099 $1,566 $359 $1,207
3,601 to 3,800 0.101 $1,597 $359 $1,238
3,801 to 4,000 0.103 $1,629 $359 $1,270
4,001 or More 0.105 $1,661 $359 $1,302
Group Quarters 0.036 $569 $181 $388
Maximum
Supportable Fee
Current
Fee
Increase/
Decrease
Dwelling Size
(square feet)
Calls per
Household
Nonresidential
Industrial 0.016 $253 $54 $199
Retail, Accommodation & Food Services 0.097 $1,534 $503 $1,031
Health Care & Social Assistance 0.136 $2,151 $2,161 ($10)
All Other Services 0.048 $759 $539 $220
Calls per
1,000 Sq Ft
Nonresidential (per 1,000 square feet)
Current
Fee
Increase/
Decrease
Maximum
Supportable FeeDevelopment Type
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FIRE/EMS SERVICE AREA REPORT
The Fire/EMS Service Area Report includes components for station space, station land, and apparatus. An
incremental expansion methodology is applied to examine the current level of service of facilities and
demand from residential and nonresidential development. Importantly, the initial purchase of the
apparatus that are included in the analysis have a useful life of 10 years or longer making it an impact fee
eligible component.
Service Area
Bozeman’s Fire/EMS Department strives to provide uniform response times citywide, with its current and
future stations and apparatus operating as an integrated network. The service area for the Fire/EMS
Service Area Report is citywide.
Cost Allocation
Demand and proportionality in the fire/EMS impact fee is determined with calls for service data. The City
of Bozeman is tracking calls based on 102 property use types. From a call report for calendar year 2023
there were 4,191 calls for service. To account for calls from residential and nonresidential land use, 72
calls were removed that were labeled as jail, police station, and fire station locations. As a result, the
impact fee analysis examined 4,119 calls.
In Figure 5, calls for service are attributed to development in five categories: residential, industrial, retail,
health care, and all other services. Additionally, there were 753 traffic-related calls which are attributed
to those categories based on their percentage of calls to locations. In Figure 5, the adjusted total calls
reflect the calls to location and attributed traffic calls. The adjusted total is compared to the 2023 demand
factor to calculate the calls per unit. For example, there is an estimated 2,144 residential-related calls and
a base year permanent and seasonal population of 59,271 resulting in 0.036 calls per person (2,114 calls
/ 59,271 persons = 0.036 calls per person). The nonresidential demand unit is 1,000 square feet.
Figure 5. Calls for Service by Location
Service Demand Units
Calls for service rates are used to calculate the fire/EMS impact fee. The average call per person rate
(0.036 calls per person) is applied to the persons per housing unit (PPHH) factors for single-unit dwellings
Residential
Permanent and Seasonal Pop 1,752 52%392 2,144 persons 59,271 0.036
Nonresidential
Industrial 41 1%9 50 1,000 sq ft 3,204 0.016
Retail, Accom. & Food Services 625 19%140 765 1,000 sq ft 7,856 0.097
Healthcare & Social Assistance 779 23%174 953 1,000 sq ft 7,002 0.136
All Other Services 169 5%38 207 1,000 sq ft 4,302 0.048
Total 3,366 753 4,119
[2] Traffic-related calls are attributed to development based on percent of calls to location
Demand
Factor
2023
Estimate
Calls
per Unit
[1] Annual fire call report broken down to 102 property uses then summed by development type
Development
Calls to
Location [1]
%
of Total
Traffic
Calls [2]
Adj.
Total Calls
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and other residential dwellings by size. A detailed analysis of the PPHH factors is provided in Appendix A:
Land Use Assumptions. Figure 6 combines the call per person with the PPHH factors to find the average
calls for service per household factors. The City has seen an increase in smaller dwelling construction and
improved detailed data available. Therefore, a broader range of size bands compared to the prior service
area report is evaluated in this study. The current fee schedule has 10 bands, while 19 bands are included
in the update. Expanding the schedule allows for further proportionately.
Figure 6. Residential Fire/EMS Calls for Service Rates
Figure 7 provides a summary for the nonresidential development types included in the analysis.
Figure 7. Nonresidential Fire/EMS Calls for Service Rates
Of note, since the 2019 impact fee study the City acknowledged that the increasing call volume was
reaching a challenging level. In 2020, the Fire Department started to evaluate operations internally to find
a way to better match dispatched resources to the actual needs of the call. This effort resulted in the
implementation of the Emergency Medical Dispatch (EMD) protocols, which eliminates the need for a fire
truck response to certain medical calls. Medical response is a large fraction of total calls for service. Full
Residential - Single-Unit Dwelling incl. Townhomes Residential - Other Residential
Residential (per housing unit)Residential (per housing unit)
Under 600 1.06 0.038 Under 600 1.00 0.036
600 to 800 1.23 0.044 600 to 800 1.16 0.042
801 to 1,000 1.49 0.054 801 to 1,000 1.41 0.051
1,001 to 1,200 1.70 0.061 1,001 to 1,200 1.61 0.058
1,201 to 1,400 1.88 0.068 1,201 to 1,400 1.78 0.064
1,401 to 1,600 2.03 0.073 1,401 to 1,600 (avg.)1.92 0.069
1,601 to 1,800 2.16 0.078 1,601 to 1,800 2.04 0.073
1,801 to 2,000 2.28 0.082 1,801 to 2,000 2.16 0.078
2,001 to 2,200 2.38 0.086 2,001 to 2,200 2.25 0.081
2,201 to 2,400 (avg.)2.48 0.089 2,201 to 2,400 2.35 0.085
2,401 to 2,600 2.56 0.092 2,401 to 2,600 2.42 0.087
2,601 to 2,800 2.64 0.095 2,601 to 2,800 2.50 0.090
2,801 to 3,000 2.72 0.098 2,801 to 3,000 2.57 0.093
3,001 to 3,200 2.79 0.100 3,001 to 3,200 2.64 0.095
3,201 to 3,400 2.85 0.103 3,201 to 3,400 2.70 0.097
3,401 to 3,600 2.92 0.105 3,401 to 3,600 2.76 0.099
3,601 to 3,800 2.97 0.107 3,601 to 3,800 2.81 0.101
3,801 to 4,000 3.03 0.109 3,801 to 4,000 2.87 0.103
4,001 or More 3.08 0.111 4,001 or More 2.91 0.105
Group Quarters 1.00 0.036
Dwelling Size
(square feet)
Persons per
Household
Calls per
Household
Dwelling Size
(square feet)
Persons per
Household
Calls per
Household
Industrial 1,000 sq ft 0.016
Retail, Accommodation & Food Services 1,000 sq ft 0.097
Health Care & Social Assistance 1,000 sq ft 0.136
All Other Services 1,000 sq ft 0.048
Development
Demand
Factor
Calls
per KSF
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implementation was completed in 2023. The Fire Department estimates that without the EMD protocols
the call volume in 2023 would have been approximately 6,600 calls. This effort has in turn resulted in
reduced call rates for most development types. Figure 8 lists the change in call rates from the 2019 study.
Figure 8. Change in Call Rates by Development Type
Level of Service and Cost Analysis
The following section details the level of service and cost factors for facility types included in the analysis.
Fire/EMS Station Space
The first component is fire/EMS stations. Shown below in Figure 9, after the current relocation project of
Station 2, there will be 45,068 square feet of station space. The square footage is compared to the current
annual call volume to calculate the current level of service (45,068 square feet / 4,119 calls = 10,941
square feet per 1,000 calls, rounded). To determine the capital cost per call, the level of service standard
is multiplied by the current construction cost found from the Station 4 CIP project. As a result, the cost
per call is $14,070 (10,941 square feet per 1,000 calls x $1,286 per square foot = $14,070 per call).
Figure 9. Fire/EMS Station Space Level of Service and Cost Analysis
Residential
Population persons 0.036 0.040 -10%
Nonresidential
Industrial 1,000 sq ft 0.016 0.012 33%
Retail, Accommodation & Food Services 1,000 sq ft 0.097 0.111 -13%
Health Care & Social Assistance 1,000 sq ft 0.136 0.477 -71%
All Other Services 1,000 sq ft 0.048 0.119 -60%
%
Change
Calls
per Unit (2023)Development
Calls
per Unit (2019)
Demand
Unit
Station 1 19,000 $24,434,000
Station 2 13,500 $17,361,000
Station 3 12,568 $16,162,448
Total 45,068 $57,957,448
Square Feet
Share of Square Feet 45,068
Citywide Calls for Service 4,119
Square Feet per 1,000 Calls 10,941
Square Feet
Square Feet per 1,000 Calls 10,941
Average Cost per Square Foot [1]$1,286
Capital Cost per Call for Service $14,070
[1] Cost per square foot based on Station 4 CIP project
Facility
Level-of-Service Standards
Cost Analysis
Square
Feet
Replacement
Cost [1]
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Fire/EMS Station Land
The City of Bozeman anticipates purchasing land for future station expansion. Shown below in Figure 10,
there is currently 2.38 acres of land at stations. Resulting in a current level of service of 0.58 acres per
1,000 calls (2.38 acres / 4,119 calls = 0.58 acres per 1,000 calls). The City’s practice of collocating fire
facilities with other municipal facilities at Stations 1 and 3 reduces total land used and lowers costs. To
determine the capital cost per call, the level of service standard is multiplied by the land cost found from
the Station 4 CIP project. As a result, the cost per call is $580 (0.58 acres per 1,000 calls x $1,000,000 per
acre = $580 per call).
Figure 10. Fire/EMS Station Land Level of Service and Cost Analysis
Fire/EMS Apparatus
Bozeman plans to expand its current fleet to serve demand from new development. Currently, there are
a total of eight units in the fleet that provide fire and EMS services. The fleet is compared to the current
annual call volume to calculate the current level of service (8 units / 4,119 calls = 1.94 units per 1,000
calls). To determine the capital cost per call, the level of service standard is multiplied by the weighted
average of the fleet based on current purchase price of the unit type. As a result, the cost per call is $1,564
(1.94 units per 1,000 calls x $806,000 per unit = $1,564 per call).
Station 1 0.45 $450,000
Station 2 1.20 $1,200,000
Station 3 0.73 $730,000
Total 2.38 $2,380,000
Acres
Share of Acres 2.38
Citywide Calls for Service 4,119
Acres per 1,000 Calls 0.58
Acres
Acres per 1,000 Calls 0.58
Average Cost per Acre [1]$1,000,000
Capital Cost per Call for Service $580
Cost Analysis
[1] Cost per acre based on anticipated cost for
future land purchases for Station 4
Level-of-Service Standards
Facility Acres
Replacement
Cost [1]
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Figure 11. Fire/EMS Apparatus Level of Service and Cost Analysis
Ambulance 1 $350,000 $350,000
Brush Trucks 2 $225,000 $450,000
Engine 3 $900,000 $2,700,000
Hazmat Freightliner 1 $350,000 $350,000
Ladder 1 $2,600,000 $2,600,000
Total 8 $6,450,000
Level-of-Service Standards Units
Share of Fleet 8
Citywide Calls for Service 4,119
Units per 1,000 Calls 1.94
Cost Analysis Units
Units per 1,000 Calls 1.94
Average Cost per Unit $806,000
Capital Cost per Call for Service $1,564
[1] Cost based on current price of unit type
Total ValueApparatusUnits
Cost
per Unit [1]
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Projected Service Demand Units and for Demand for Services
To accommodate projected development, Bozeman will expand its fire/EMS station facilities and acquire
additional apparatus as development occurs. The anticipated need is based on the development
projections contained in the land use assumptions (see Appendix A: Land Use Assumptions).
Shown in Figure 12, over the next ten years, based on current call volume and development projections
there is an estimated increase of 945 calls for service. Current facility levels of service are applied to the
growth in calls for service to estimate the growth-related need in facility expansion. For example, there is
a need for 10,336 square feet of new station space (10,941 square feet per 1,000 calls x 945 increase in
growth-related calls = 10,336 square feet).
The current cost factors are applied to the growth-related need to estimate growth-related cost. Overall,
there is a growth-related cost of $15.2 million to provide current levels of service to future development.
Figure 12. Growth-Related Need for Fire/EMS Station Space
Cost/Unit
10,941 square feet $1,286
0.58 acres $1,000,000
1.94 units $806,000
Base 2023 4,119 45,066 2.4 8.0
Year 1 2024 4,213 46,100 2.4 8.2
Year 2 2025 4,308 47,133 2.5 8.4
Year 3 2026 4,402 48,167 2.6 8.5
Year 4 2027 4,497 49,200 2.6 8.7
Year 5 2028 4,591 50,234 2.7 8.9
Year 6 2029 4,686 51,267 2.7 9.1
Year 7 2030 4,780 52,301 2.8 9.3
Year 8 2031 4,875 53,334 2.8 9.5
Year 9 2032 4,969 54,368 2.9 9.6
Year 10 2033 5,064 55,402 2.9 9.8
945 10,336 0.5 1.8
Projected Expenditure $13,292,096 $500,000 $1,450,800
Growth-Related Expenditures for Fire Facilities $15,242,896
Growth-Related Need for Fire Facilities
Ten-Year Increase
Year Calls
for Service
Station
Square Feet
Station
Acres
Apparatus
Units
Fire Apparatus per 1,000 calls for service
Fire Station Space per 1,000 calls for service
Fire Station Land per 1,000 calls for service
Infrastructure Level of Service
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Fire/EMS Growth-Related Capital Improvement Plans
Figure 13 lists the Fire Department growth-related Capital Improvement Plan (CIP). The plans include
construction of Fire Station 4 which is anticipated to cost $18 million and $1 million for land purchase.
Additionally, the department will man the new station with new apparatus. These plans are consistent
with the projected growth-related needs to continue the current levels of service.
Figure 13. Fire/EMS Growth-Related CIP
Credit for Other Revenues Sources
Evaluation of other revenues funding capital expansion is necessary to ensure the impact fee is
proportionate and there are no double charging scenarios.
The City has an existing impact fee fund balance that will fund a portion of the CIP. To account for this
revenue, the fund balance is compared to the CIP to find its share of the plan. A portion of the existing
balance has been earmarked for the Station 2 relocation/expansion project that is underway. In Figure
14, the unencumbered fund balance ($1.5 million) accounts for 7.1 percent of the growth-related CIP.
Figure 14. Existing Fire/EMS Impact Fee Fund Balance Credit
In the past, the City of Bozeman has issued two bonds for the Station 1 and Station 2 CIP projects. The
vast majority of both projects addressed current deficiencies such as the bay sizes of the older stations
were too small for the larger, modern apparatus. A portion of the Station 2 project is considered growth-
related and impact fee funds have been allocated from the impact fee fund balance to pay for that portion.
In this case, no credit is needed for future debt payments since the payments represent needed
improvements that are not attributed to future development.
Fire/EMS Personnel and Operations
As described in the legal framework section of this report, impact fees are limited to capital purchases.
No personnel or operations expenses are allowed to be included in an impact fee and all such expenses
are excluded from the impact fee. All personnel and operations expenses are paid for with taxes or other
CIP Project
New Fire Station
Fire Station 4 14,000 square feet $18,000,000 $1,286
Fire Station 4 1.00 acres $1,000,000 $1,000,000
New Apparatus
Station 4 Engine or Quint Ladder Truck 1 unit $900,000-$2,600,000 -
Station 4 Ambulance 1 unit $350,000 $350,000
Total $21,100,000
Units Total Cost
Cost
per Unit
City of Bozeman
Fire/EMS
Impact Fee Fund
Existing Fund Balance [1]$1,500,000
Growth-Related CIP $21,100,000
Balance Share of CIP 7.1%
[1] A portion of the balance has been reserved for the
Station 2 project and removed from the credit analysis.
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non-impact fee revenue. Furthermore, a referendum is planned for later this year to raise an operational
levy for fire/EMS. Since the revenue is dedicated for operations, no credit in the impact fee is necessary.
Maximum Supportable Fire/EMS Impact Fees
The following figures lists the maximum supportable fire/EMS impact fees for residential and
nonresidential development and includes an administration fee of five percent (§ 7-6-1601(5a)). After
reducing the fee for the credit, the net total cost per call is $15,816. Fees are derived with the call rates.
For example, the fee for a 2,300 square foot single-unit housing unit is $1,408 ($15,816 per call x 0.089
calls per unit = $1,408 per unit, rounded).
The City may adopt fees that are less than the amounts shown. However, a reduction in impact fee
revenue will necessitate an increase in other revenues, a decrease in planned capital expenditures, and/or
a decrease in levels of service.
Figure 15. Maximum Supportable Fire/EMS Impact Fees – Single-Unit Dwelling Including Townhomes
Cost
per Call
Fire Station Space $14,070
Fire Station Land $580
Fire Apparatus $1,564
Gross Total $16,214
Credit for Existing Fund Balance (7.1%)($1,151)
Administrative Fee (5%)$753
Net Total $15,816
Residential - Single-Unit Dwelling including Townhomes
Residential (per housing unit)
Under 600 0.038 $601 $384 $217
600 to 800 0.044 $696 $384 $312
801 to 1,000 0.054 $854 $384 $470
1,001 to 1,200 0.061 $965 $384 $581
1,201 to 1,400 0.068 $1,075 $384 $691
1,401 to 1,600 0.073 $1,155 $393 $762
1,601 to 1,800 0.078 $1,234 $401 $834
1,801 to 2,000 0.082 $1,297 $408 $889
2,001 to 2,200 0.086 $1,360 $415 $945
2,201 to 2,400 (avg.)0.089 $1,408 $422 $986
2,401 to 2,600 0.092 $1,455 $431 $1,024
2,601 to 2,800 0.095 $1,503 $439 $1,064
2,801 to 3,000 0.098 $1,550 $448 $1,102
3,001 to 3,200 0.100 $1,582 $469 $1,113
3,201 to 3,400 0.103 $1,629 $469 $1,160
3,401 to 3,600 0.105 $1,661 $469 $1,192
3,601 to 3,800 0.107 $1,692 $469 $1,223
3,801 to 4,000 0.109 $1,724 $469 $1,255
4,001 or More 0.111 $1,756 $469 $1,287
Maximum
Supportable Fee
Current
Fee
Fee
Component
Increase/
Decrease
Dwelling Size
(square feet)
Calls per
Household
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Figure 16. Maximum Supportable Fire/EMS Impact Fees – Other Residential
Cost
per Call
Fire Station Space $14,070
Fire Station Land $580
Fire Apparatus $1,564
Gross Total $16,214
Credit for Existing Fund Balance (7.1%)($1,151)
Administrative Fee (5%)$753
Net Total $15,816
Residential - Other Residential
Residential (per housing unit)
Under 600 0.036 $569 $272 $297
600 to 800 0.042 $664 $272 $392
801 to 1,000 0.051 $807 $272 $535
1,001 to 1,200 0.058 $917 $272 $645
1,201 to 1,400 0.064 $1,012 $272 $740
1,401 to 1,600 (avg.)0.069 $1,091 $279 $812
1,601 to 1,800 0.073 $1,155 $285 $870
1,801 to 2,000 0.078 $1,234 $290 $944
2,001 to 2,200 0.081 $1,281 $294 $987
2,201 to 2,400 0.085 $1,344 $301 $1,043
2,401 to 2,600 0.087 $1,376 $306 $1,070
2,601 to 2,800 0.090 $1,423 $312 $1,111
2,801 to 3,000 0.093 $1,471 $317 $1,154
3,001 to 3,200 0.095 $1,503 $359 $1,144
3,201 to 3,400 0.097 $1,534 $359 $1,175
3,401 to 3,600 0.099 $1,566 $359 $1,207
3,601 to 3,800 0.101 $1,597 $359 $1,238
3,801 to 4,000 0.103 $1,629 $359 $1,270
4,001 or More 0.105 $1,661 $359 $1,302
Group Quarters 0.036 $569 $181 $388
Maximum
Supportable Fee
Current
Fee
Increase/
Decrease
Fee
Component
Dwelling Size
(square feet)
Calls per
Household
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Figure 17. Maximum Supportable Fire/EMS Impact Fees – Nonresidential
Fee
Component
Cost
per Call
Fire Station Space $14,070
Fire Station Land $580
Fire Apparatus $1,564
Gross Total $16,214
Credit for Existing Fund Balance (7.1%)($1,151)
Administrative Fee (5%)$753
Net Total $15,816
Nonresidential
Industrial 0.016 $253 $54 $199
Retail, Accommodation & Food Services 0.097 $1,534 $503 $1,031
Health Care & Social Assistance 0.136 $2,151 $2,161 ($10)
All Other Services 0.048 $759 $539 $220
Calls per
1,000 Sq Ft
Nonresidential (per 1,000 square feet)
Current
Fee
Increase/
Decrease
Maximum
Supportable FeeDevelopment Type
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Projected Fire/EMS Impact Fee Revenue
Revenue projections assume implementation of the maximum supportable fire/EMS impact fees and that
future development is consistent with the land use assumptions described in Appendix A: Land Use
Assumptions. To the extent the rate of development either accelerates or slows down, there will be a
corresponding change in the impact fee revenue. The fee for an average size single-unit dwelling and other
residential is used in the revenue projections. As shown in Figure 18, fire/EMS impact fee revenue is
expected to total approximately $14.9 million over the next 10 years, compared to projected expenditures
of $15.2 million. The funding gap is the result of the credit included in the analysis. Importantly, the
existing fund balance will mitigate the funding gap.
Figure 18. Projected Fire/EMS Impact Fee Revenue
Infrastructure Costs for Fire Facilities
Total Cost Growth Cost
Fire Station Space $13,292,096 $13,292,096
Fire Station Land $500,000 $500,000
Fire Apparatus $1,450,800 $1,450,800
Total Expenditures $15,242,896 $15,242,896
Projected Development Impact Fee Revenue
Single Family Multifamily Retail Other Serv.Industrial Health Care
$1,408 $1,091 $1,534 $759 $253 $2,151
per unit per unit per unit per unit per unit per unit
Housing Units Housing Units KSF KSF KSF KSF
Base 2023 14,654 11,928 7,856 3,025 3,204 8,279
1 2024 14,882 12,694 7,906 3,086 3,222 8,375
2 2025 15,110 13,460 7,956 3,147 3,240 8,472
3 2026 15,338 14,226 8,006 3,207 3,258 8,568
4 2027 15,566 14,992 8,056 3,268 3,276 8,664
5 2028 15,794 15,758 8,106 3,329 3,294 8,761
6 2029 16,022 16,524 8,156 3,390 3,312 8,857
7 2030 16,250 17,290 8,206 3,450 3,329 8,954
8 2031 16,478 18,056 8,256 3,511 3,347 9,050
9 2032 16,706 18,822 8,306 3,572 3,365 9,147
10 2033 16,934 19,588 8,356 3,632 3,383 9,243
Ten-Year Increase 2,280 7,660 500 607 179 964
Projected Revenue $3,210,240 $8,357,060 $767,000 $460,821 $45,179 $2,074,179
Projected Revenue $14,914,000
Total Expenditures $15,243,000
Non-Impact Fee Funding $329,000
Year
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CAPITAL IMPROVEMENT PLAN
Per State of Montana enabling legislation (§7-6-1602(2)), the Service Area Report needs to identify capital
improvements necessary to meet future needs. The following figure lists the growth-related capital plans
for each department included in this analysis. There are other non-growth-related CIP projects that are
not included in this analysis. As shown in the previous chapter, the CIP satisfies the projected growth-
related needs to accommodate future demand.
Figure 19. Fire/EMS Growth-Related Capital Improvement Plan
CIP Project
New Fire Station
Fire Station 4 14,000 square feet $18,000,000 $1,286
Fire Station 4 1.00 acres $1,000,000 $1,000,000
New Apparatus
Station 4 Engine or Quint Ladder Truck 1 unit $900,000-$2,600,000 -
Station 4 Ambulance 1 unit $350,000 $350,000
Total $21,100,000
Units Total Cost
Cost
per Unit
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APPENDIX A: LAND USE ASSUMPTIONS
The following sections detail base year and projected demographic assumptions. These assumptions are
used in the fire/EMS impact fee calculations along with the tandem efforts in updating the Service Area
Reports for Transportation, Water, and Wastewater public facilities. In this case, there is data in the
following section that relates to the other efforts and not the fire/EMS calculations (i.e., trip generation
rates and the Transportation Service Area Report).
Note: definitions for the Single-Unit Dwelling and Other Residential housing types can be found Appendix
B: Land Use Definitions
Population and Housing Characteristics
Impact fees often use per capita standards and persons per housing unit or persons per household to
derive proportionate share fee amounts. Housing types have varying household sizes and, consequently,
a varying demand on City infrastructure and services. Thus, it is important to differentiate between
housing types and size.
When persons per housing unit (PPHU) is used in the development impact fee calculations, infrastructure
standards are derived using year-round population. In contrast, when persons per household (PPHH) is
used in the development impact fee calculations, the fee methodology assumes all housing units will be
occupied, thus requiring seasonal or peak population to be used when deriving infrastructure standards.
The City of Bozeman and the surrounding area is home to a significant number of second/vacation homes
and hosts many visitors throughout the year. Thus, TischlerBise recommends that fees for residential
development in Bozeman be imposed according to persons per household.
Figure 20 shows the US Census American Community Survey 2021 5-Year Estimates data for the City of
Bozeman. Single-unit dwellings have an average household size of 2.48 persons and other residential
dwellings have an average household size of 1.92 persons. Additionally, there is a housing mix of 59
percent single-unit dwelling and 41 percent other residential.
The estimates in Figure 20 are for household size calculations. Base year population and housing units are
estimated with another, more recent data source.
Figure 20. Persons per Household
Building Permit History
In Figure 21, the past six years of building permit history is listed by housing type to understand the recent
growth trend in Bozeman. There has been a steady amount of single-unit dwelling development over the
Housing Persons per Persons per Housing
Housing Type Persons Units Housing Unit Households Household Unit Mix
Single-Unit Dwelling [1]31,140 13,355 2.33 12,534 2.48 59%
Other Residential [2]16,235 9,110 1.78 8,451 1.92 41%
Subtotal 47,375 22,465 2.11 20,985 2.26
[1] Includes attached and detached single family homes and mobile homes
[2] Includes all other types
Source: U.S. Census Bureau, 2021 American Community Survey 5-Year Estimates
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past years in Bozeman, while other residential development has been the driving factor in the elevated
construction trend. Housing development peaked in 2021 which included the largest apartment complex
ever built in the city. Housing activity leveled slowed in 2022 (consistent with the national trend with
increasing interest rates) while construction had a noticeable increase in 2023.
Overall, there has been an average of 228 single-unit dwellings and 766 other residential units constructed
annually.
Figure 21. Building Permit History by Housing Type
Base Year Housing Units and Population
Furthermore, the nature of the influx of seasonal population in Bozeman necessitates four types of
populations to be included in the impact fee study:
1) Permanent Residents
2) Seasonal Residents
3) On-Campus Students
4) Overnight-Visitors
Bozeman is a destination for vacationers, students, and seasonal residents and City facilities and services
have been sized to accommodate the additional demand. The peak population includes residents who
have second homes in the city, students living on-campus at Montana State University, and the seasonal
labor influx during peak tourism months. The MSU students living off-campus are captured in the
permanent housing population.
Bozeman permanent population is found by using the housing growth since the 2020 US Census. The 2020
decennial census estimated that there were 23,535 housing units and 49,298 household population in
Bozeman. Additionally, there were 663 single-unit dwellings and 2,384 other residential units constructed
since the survey. Based on PPHU factor, there has been an increase of 5,788 residents since the census.
By combining the 2020 US Census household population and estimated new residents since the Census,
a 2023 permanent population of 55,086 residents is estimated.
Housing Type 2018 2019 2020 2021 2022 2023 Total Average
Single-Unit Dwelling [1]266 245 211 255 197 193 1,367 228
Other Residential [2]593 546 734 1,128 522 1,075 4,598 766
Total 859 791 945 1,383 719 1,268 5,965 994
Source: City of Bozeman
[1] Includes attached and detached single family homes and mobile homes
[2] Includes all other types
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Figure 22. Permanent Population
Seasonal housing population estimates are found by applying the PPHH factors for each housing type to
base year housing estimates to the percent of housing occupied for seasonal use. As a result, the seasonal
population estimate is 4,185 (Figure 23).
Figure 23. Seasonal Population
Shown in Figure 24, in a survey of hotel and motels in Bozeman, TischlerBise found 2,241 lodging rooms
in the city. Based on general peak seasonal lodging factors there are 4,258 overnight-visitors assumed.
Figure 24. Bozeman Visitors
Lastly, based on a news briefing from Montana State University in September 2023 there were 5,200
students living on-campus. The information above is summarized in Figure 25. Based on the four
population types, there is an estimated peak population of 68,729 residents along with 26,582 housing
units in Bozeman.
Bozeman, MT Housing Units [1]HH Population [2]
2020 Census 23,535 49,298
Housing Units 2020 Census Post Census 2023
Single-Unit Dwelling 13,991 663 14,654
Other Residential 9,544 2,384 11,928
Total 23,535 3,047 26,582
PPHU
Single-Unit Dwelling 663 2.33 1,545
Other Residential 2,384 1.78 4,244
Total 3,047 5,788
Household Population 49,298 5,788 55,086
[1] Source: US Census DP1 Table
Bozeman, MT
Units Built
Post Census
New Residents
Post Census
[2] Source: US Census DP1 Table. Household population excludes those in
group quarters. Group quarters is estimated with On-Campus Students in
another figure.
Bozeman, MT 2020 Census
New Residents
Post Census 2023 Estimate
Housing Units PPHH
Single-Unit Dwelling 14,654 7%967 2.48 2,399
Other Residential 11,928 8%930 1.92 1,786
Total 26,582 1,898 4,185
Seasonal
Residents
Seasonal
Units
% Seasonal
Units
2023
Housing Units
Total Lodging Rooms 2,241
Assumed Ave Occupancy 2
Assumed Occupancy Rate 95%
Total Overnight-Visitors 4,258
Source: TischlerBise survey of lodging property
and general peak season lodging factors
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Figure 25. Base Year Housing and Population
Base Year
2023
Permanent Hsg Population [1]55,086
Seasonal Hsg Population [2]4,185
On-Campus Students [3]5,200
Overnight-Visitors [4]4,258
Total Peak Population 68,729
Housing Units [1]
Single-Unit Dwelling 14,654
Other Residential 11,928
Total Housing Units 26,582
Bozeman, MT
[1] Calculated based on 2020 US Census estimate
plus housing development since
[2] Assuming seasonal housing is fully occupied
during peak season
[3] MSU News Service (September, 2023)
[4] TischlerBise survey of lodging property and
general peak season lodging factors
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Housing Unit and Population Projections
The ten-year residential projections are listed in Figure 26. Housing development in Bozeman is assumed to continue at its current pace over the
next ten years. Overall, over the next ten years, 2,280 new single-unit dwellings and 7,660 other residential units are assumed to be constructed.
As a result of the market supporting more non-single-unit dwelling development, by 2033 there will be more non-single-unit dwelling units than
single-unit dwellings in Bozeman.
Population growth is based on housing development and PPHH factors. Over the next ten years, housing development will support 18,841 new
permanent residents and 1,520 seasonal residents. It is assumed that visitors to Bozeman will grow at the same rate as resident population. Lastly,
MSU has built a new dormitory every five years and is currently exploring another expansion. Conservatively, a 1 percent annual growth is assumed
for on-campus students. Overall, the peak population is estimated to grow from 68,729 to 91,099, a 32.5 percent increase.
Figure 26. Residential Development Projections
Importantly, the impact fee methodology does not rely on the growth projections to determine the fee amount. Rather, the current level of service
is used in the fee calculation. In this case, if the growth projections included in the report overestimate or underestimate the real development in
Bozeman, the fee collection is still accurate. For example, if growth is slower than the 10-year projection, less revenue will be collected, however,
the City will provide less capital expansion to keep up with the level of service.
Base Year
City of Bozeman, MT 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
Permanent Hsg Population [1]55,086 56,970 58,855 60,739 62,623 64,507 66,391 68,275 70,159 72,043 73,928 18,841
Seasonal Hsg Population [1]4,185 4,337 4,489 4,641 4,793 4,945 5,097 5,249 5,401 5,553 5,705 1,520
On-Campus Students [2]5,200 5,252 5,305 5,358 5,412 5,466 5,521 5,576 5,632 5,688 5,745 545
Overnight-Visitors [3]4,258 4,404 4,551 4,697 4,843 4,989 5,136 5,282 5,428 5,574 5,721 1,463
Total Peak Population 68,729 70,964 73,199 75,435 77,671 79,907 82,145 84,382 86,621 88,859 91,099 22,369
3.3%3.2%3.1%3.0%2.9%2.8%2.7%2.7%2.6%2.5%32.5%
Housing Units [4]
Single-Unit Dwelling 14,654 14,882 15,110 15,338 15,566 15,794 16,022 16,250 16,478 16,706 16,934 2,280
Other Residential 11,928 12,694 13,460 14,226 14,992 15,758 16,524 17,290 18,056 18,822 19,588 7,660
Total Housing Units 26,582 27,576 28,570 29,564 30,558 31,552 32,546 33,540 34,534 35,528 36,522 9,940
[1] Permanent and seasonal population growth is based on housing development and PPHH factors
[2] On-campus residences are conservatively assumed to grow by 1 percent annually
[3] Visitor population is estimate to grow at the same rate as permanent and seasonal population
[4] Housing development is based on the recent building permit trends without the 2021 peak development year
Total
Increase
Percent Increase
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Current Employment and Nonresidential Floor Area
The impact fee study will include nonresidential development as well. The base year employment
estimates are calculated from two sources. First, from the Montana Department of Labor & Industry there
is an estimated 34,569 total jobs in Bozeman. Second, from the U.S. Census Bureau OnTheMap web
application employment splits are found between retail, office, industrial, and institutional industries. As
a result, the institutional industries (which includes education and healthcare) account for the highest
share while retail industries employee over 10,000 jobs as well.
Furthermore, the floor area for the four industry types is summarized in Figure 27. Retail, office, and
industrial square footage is available from the Montana Department of Revenue (DOR). However, since
public education and healthcare facilities are tax exempt the DOR does not gather floor space for such
development. Instead, TischlerBise applied the average employee density factors (square feet per
employee) for schools and hospitals to the estimated institutional job total to estimate floor area. As a
result, there are 22.4 million square feet of nonresidential development in Bozeman. The majority being
institutional and retail industries.
Figure 27. Base Year Nonresidential Floor Area
Employment and Nonresidential Floor Area Projections
The Bozeman Community Plan 2020 provides an in-depth analysis of the local market and buildout
capacity of the city. Through 2045, the Community Plan projected a growth of 6.3 million square feet of
nonresidential development broken down by retail, office, industrial, and institutional industries. The ten-
year growth projections from the impact fee studies relies on these projections along with employee
density factors from the Institution of Transportation Engineers’ (ITE). For the retail industry the Shopping
Center land use factors are used; for office the General Office factors are used; for industrial the Light
Industrial factors are used; for Institutional the Hospital factors are used.
Figure 28. Institute of Transportation Engineers (ITE) Employment Density Factors
Employment
Industries
Base Year
Jobs [1]
Percent
of Total
Floor Area
(sq. ft.) [2]
Percent
of Total
Retail 10,116 29%7,855,849 35%
Office 7,798 23%3,025,341 14%
Industrial 5,042 15%3,204,452 14%
Institutional [3]11,612 34%8,278,652 37%
Total 34,569 100%22,364,294 100%
[3] Source: Trip Generation, Institute of Transportation Engineers,
11th Edition (2021)
[1] Source: MT Employment Statistics - LAUS
[2] Source: Montana Department of Revenue Database
Employment ITE Demand Emp Per Sq Ft
Industry Code Land Use Unit Dmd Unit Per Emp
Retail 820 Shopping Center 1,000 Sq Ft 2.12 471
Office 710 General Office 1,000 Sq Ft 3.26 307
Industrial 110 Light Industrial 1,000 Sq Ft 1.57 637
Institutional 610 Hospital 1,000 Sq Ft 2.86 350
Source: Trip Generation , Institute of Transportation Engineers, 11th Edition (2021)
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Shown in Figure 29, Bozeman is anticipated to grow by 6,075 jobs (17.6 percent) over the next ten years. Institutional, office, and retail industries
all have significant growth while industrial development is anticipated to taper off. Based on the employee density factors, the employment growth
will generate 2,250,000 million square feet of nonresidential floor area (10 percent growth from the base year).
Figure 29. Employment and Nonresidential Floor Area Projections
Base Year
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
Jobs [1]
Retail 10,116 10,222 10,329 10,435 10,541 10,647 10,753 10,859 10,966 11,072 11,178 1,062
Office 7,798 7,996 8,194 8,391 8,589 8,787 8,985 9,182 9,380 9,578 9,776 1,978
Industrial 5,042 5,070 5,098 5,126 5,154 5,182 5,210 5,238 5,266 5,295 5,323 280
Institutional 11,612 11,888 12,164 12,439 12,715 12,990 13,266 13,541 13,817 14,092 14,368 2,755
Total 34,569 35,176 35,784 36,391 36,999 37,606 38,214 38,821 39,429 40,036 40,644 6,075
1.8%1.7%1.7%1.7%1.6%1.6%1.6%1.6%1.5%1.5%17.6%
Nonresidential Floor Area (1,000 sq. ft.) [2]
Retail 7,856 7,906 7,956 8,006 8,056 8,106 8,156 8,206 8,256 8,306 8,356 500
Office 3,025 3,086 3,147 3,207 3,268 3,329 3,390 3,450 3,511 3,572 3,632 607
Industrial 3,204 3,222 3,240 3,258 3,276 3,294 3,312 3,329 3,347 3,365 3,383 179
Institutional 8,279 8,375 8,472 8,568 8,664 8,761 8,857 8,954 9,050 9,147 9,243 964
Total 22,364 22,589 22,814 23,039 23,264 23,489 23,714 23,939 24,164 24,389 24,614 2,250
[1] Source: Bozeman Community Plan (2020)
[2] Source: Institute of Transportation Engineers, Trip Generation , 2021
Industry
Total
Increase
Percent Increase
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Vehicle Trip Generation
Residential Vehicle Trips by Housing Type
A customized trip rate is calculated for the single-unit dwellings and other residential units in Bozeman.
In Figure 30, the most recent data from the US Census American Community Survey is input into equations
provided by the Institute of Transportation Engineers to calculate the trip ends per housing unit factor. A
single-unit dwelling is estimated to generate 9.27 trip ends and other residential units are estimated to
generate 5.36 trip ends on an average weekday.
Figure 30. Customized Residential Trip End Rates by Housing Type
Owner-Occupied 19,262 8,463 889 9,352 2.06
Renter-Occupied 20,735 4,071 7,562 11,633 1.78
Total 39,997 12,534 8,451 20,985 1.91
13,355 9,110 22,465
Persons in Trip Vehicles by Trip Average National Trip
Households4 Ends5 Type of Unit Ends6 Trip Ends Ends per Unit7
Single-Unit Dwelling 31,140 86,764 24,680 160,855 123,810 9.27 9.43
Other Residential 16,235 37,097 15,292 60,543 48,820 5.36 4.54
Total 47,375 123,861 39,972 221,398 172,630 7.68
7. Trip Generation, Institute of Transportation Engineers, 11th Edition (2021).
Local Trip
Ends per Unit
1. Vehicles available by tenure from Table B25046, 2020 American Community Survey 5-Year Estimates.
3. Housing units from Table B25024, 2020 American Community Survey 5-Year Estimates.
4. Total population in households from Table B25033, 2020 American Community Survey 5-Year Estimates.
5. Vehicle trips ends based on persons using formulas from Trip Generation (ITE 2021). For single-family housing
(ITE 210), the fitted curve equation is EXP(0.89*LN(persons)+1.72). To approximate the average population of the
ITE studies, persons were divided by 3 and the equation result multiplied by 3. For multi-family housing (ITE 221),
the fitted curve equation is (2.29*persons)-64.48 (ITE 2017).
6. Vehicle trip ends based on vehicles available using formulas from Trip Generation (ITE 2021). For single-family
housing (ITE 210), the fitted curve equation is EXP(0.92*LN(vehicles)+2.68). To approximate the average number of
vehicles in the ITE studies, vehicles available were divided by 5 and the equation result multiplied by 5. For multi-
family housing (ITE 221), the fitted curve equation is (4.77*vehicles)-46.46 (ITE 2021).
2. Households by tenure and units in structure from Table B25032, 2020 American Community Survey 5-Year
Estimates.
Vehicles per
HH by Tenure
Housing Units3
Housing Type
Households by Structure Type2
Tenure by Units
in Structure
Vehicles
Available1
Single
Family Multifamily Total
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Residential Vehicle Trips Adjustment Factors
A vehicle trip end is the out-bound or in-bound leg of a vehicle trip. As a result, so as not double count
trips, a standard 50 percent adjustment is applied to trip ends to calculate a vehicle trip. For example, the
out-bound trip from a person’s home to work is attributed to the housing unit and the trip from work back
home is attributed to the employer.
However, an additional adjustment is necessary to capture city residents’ work bound trips that are
outside of the city. The trip adjustment factor includes two components. According to the National
Household Travel Survey, home-based work trips are typically 31 percent of out-bound trips (which are
50 percent of all trip ends). Also, utilizing the most recent data from the Census Bureau's web application
"OnTheMap”, 40 percent of Bozeman workers travel outside the city for work. In combination, these
factors account for 6 percent of additional production trips (0.31 x 0.50 x 0.40 = 0.06). Shown in Figure 31,
the total adjustment factor for residential housing units includes attraction trips (50 percent of trip ends)
plus the journey-to-work commuting adjustment (6 percent of production trips) for a total of 56 percent.
Figure 31. Residential Trip Adjustment Factor for Commuters
Nonresidential Vehicle Trips
Vehicle trip generation for nonresidential land uses are calculated by using ITE’s average daily trip end
rates and adjustment factors found in their recently published 11th edition of Trip Generation. To estimate
the trip generation in Bozeman, the weekday trip end per 1,000 square feet factors listed in Figure 32 are
used. The prior service area report used the 10th Edition of the Trip Generation. The latest edition includes
travel surveys since the previous edition ensuring changes in travel behavior is being captured in the
update.
Figure 32. Institute of Transportation Engineers Nonresidential Factors
For nonresidential land uses, the standard 50 percent adjustment is applied to office, industrial, and
institutional development. A lower vehicle trip adjustment factor is used for retail development because
Employed Bozeman Residents (2020)25,702
Residents Working in Bozeman (2020)15,447
Residents Commuting Outside of Bozeman for Work 10,255
Percent Commuting Out of Bozeman 40%
Additional Production Trips 6%
Standard Trip Adjustment Factor 50%
Residential Trip Adjustment Factor 56%
Source: U.S. Census, OnTheMap Application, 2020
Trip Adjustment Factor for Commuters
Employment ITE Demand Wkdy Trip Ends Wkdy Trip Ends
Industry Code Land Use Unit Per Dmd Unit Per Employee
Retail 820 Shopping Center 1,000 Sq Ft 37.01 17.42
Office 710 General Office 1,000 Sq Ft 10.84 3.33
Industrial 110 Light Industrial 1,000 Sq Ft 4.87 3.10
Institutional 610 Hospital 1,000 Sq Ft 10.77 3.77
Source: Trip Generation, Institute of Transportation Engineers, 11th Edition (2021)
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this type of growth attracts vehicles as they pass-by on arterial and collector roads. For example, when
someone stops at a convenience store on their way home from work, the convenience store is not their
primary destination.
In Figure 33, the Institute for Transportation Engineers’ land use code, daily vehicle trip end rate, and trip
adjustment factor is listed for each land use.
Figure 33. Daily Vehicle Trip Factors
Residential (per housing unit)
Single-Unit Dwelling 210 9.27 56%5.19
Other Residential 220 5.36 56%3.00
Nonresidential (per 1,000 square feet)
Retail 820 37.01 38%14.06
Office 710 10.84 50%5.42
Industrial 110 4.87 50%2.44
Institutional 610 10.77 50%5.39
Land Use
ITE
Codes
Daily Vehicle
Trip Ends
Trip Adj.
Factor
Daily Vehicle
Trips
Source: Trip Generation, Institute of Transportation Engineers, 11th Edition
(2021); National Household Travel Survey, 2009
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Vehicle Trip Projections
The base year vehicle trip totals and vehicle trip projections are calculated by combining the vehicle trip end factors, the trip adjustment factors,
and the residential and nonresidential assumptions for housing stock and floor area. Citywide, residential land uses account for 111,875 vehicle
trips and nonresidential land uses account for 179,264 vehicle trips in the base year (Figure 34).
Through 2033, it is projected that daily vehicle trips will increase by 50,788 trips with the majority of the growth being generated by residential
development (69 percent).
Figure 34. Vehicle Trip Projections
Base Year
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
Residential Trips
Single-Unit Dwelling 76,072 77,255 78,439 79,623 80,806 81,990 83,173 84,357 85,541 86,724 87,908 11,836
Other Residential 35,803 38,102 40,402 42,701 45,000 47,299 49,598 51,898 54,197 56,496 58,795 22,992
Subtotal 111,875 115,358 118,841 122,323 125,806 129,289 132,772 136,255 139,737 143,220 146,703 34,828
Nonresidential Trips
Retail 110,483 111,186 111,889 112,593 113,296 113,999 114,702 115,405 116,109 116,812 117,515 7,032
Office 16,397 16,726 17,055 17,385 17,714 18,043 18,372 18,701 19,030 19,359 19,688 3,291
Industrial 7,803 7,846 7,890 7,933 7,977 8,020 8,064 8,107 8,151 8,194 8,238 435
Institutional 44,581 45,100 45,619 46,138 46,658 47,177 47,696 48,215 48,735 49,254 49,773 5,193
Subtotal 179,264 180,859 182,454 184,049 185,644 187,239 188,834 190,429 192,024 193,619 195,214 15,950
Vehicle Trips
Grand Total 291,139 296,217 301,294 306,372 311,450 316,528 321,606 326,684 331,761 336,839 341,917 50,778
Source: Institute of Transportation Engineers, Trip Generation , 11th Edition (2021)
Total
IncreaseDevelopment Type
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Demand Indicators by Dwelling Size
Impact fees must be proportionate to the demand for infrastructure. Because averages per household,
for both persons and vehicle trip ends, have a strong, positive correlation to the square footage of the
dwelling unit, TischlerBise recommends residential fee schedules by the size of the unit (consistent with
the City of Bozeman’s current fee schedule).
Bozeman Control Totals
According to the U.S. Census Bureau, Bozeman single-unit dwellings have an average household size of
2.48 persons and other residential units have an average household size of 1.92 persons.
Figure 35. Persons per Household
Trip generation rates are also dependent upon the average number of vehicles available per dwelling. Key
independent variables needed for the analysis (i.e., vehicles available, households, and persons) are
available from the U.S. Census Bureau American Community Survey (ACS), indicating an average of 1.90
vehicles per household in Bozeman.
Figure 36. Vehicles per Household
Demand Indicators by Dwelling Size
Custom tabulations of demographic data by bedroom range can be created from individual survey
responses provided by the U.S. Census Bureau in files known as Public Use Microdata Samples (PUMS).
PUMS files are only available for areas of at least 100,000 persons with Bozeman included in Public Use
Microdata Areas (PUMA) 400.
Housing Persons per Persons per Housing
Housing Type Persons Units Housing Unit Households Household Unit Mix
Single-Unit Dwelling [1]31,140 13,355 2.33 12,534 2.48 59%
Other Residential [2]16,235 9,110 1.78 8,451 1.92 41%
Subtotal 47,375 22,465 2.11 20,985 2.26
[1] Includes attached and detached single family homes and mobile homes
[2] Includes all other types
Source: U.S. Census Bureau, 2021 American Community Survey 5-Year Estimates
Owner-occupied 19,262 8,463 889 9,352 2.06
Renter-occupied 20,735 4,071 7,562 11,633 1.78
Total 39,997 12,534 8,451 20,985 1.91
Single-Unit Dwelling [1]24,680 12,534 1.97
Other Residential [2]15,292 8,451 1.81
Total 39,972 20,985 1.90
Source: U.S. Census Bureau, 2021 American Community Survey 5-Year Estimates
Vehicles per
HH by Tenure
Housing Type Vehicles
Available
Housing
Units
Vehicles per
Housing Unit
Households
Tenure Vehicles
Available
Single
Family Multifamily Total
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Cells shaded yellow below are survey results for PUMA 400. Unadjusted persons per household (2.31),
derived from PUMS data for the PUMA listed above, are adjusted downward to match the control totals
for Bozeman (2.26), as shown above in Figure 35. Adjusted persons per household totals are shaded in
gray.
Figure 37. Persons by Bedroom Range
Persons by Dwelling Size
Average floor area and number of persons by bedroom range are plotted in Figure 38 with a logarithmic
trend line derived from 2021 square footage estimates provided by the U.S. Census Bureau (West Region).
Dwellings with two bedrooms or less average 1,032 square feet of floor area—based on multifamily
dwellings constructed in the West Census Region. Three-bedroom dwellings average 2,118 square feet,
four-bedroom dwellings average 2,932 square feet, and dwellings with five or more bedrooms average
4,269 square feet—based on single-unit dwellings constructed in the West Census Region. Using the trend
line formula shown in the chart, TischlerBise derived the estimated average number of persons, by
dwelling size, using 19 size thresholds, expanding the low and high range of the fee schedule.
As shown in the upper-right corner of the table below, the smallest floor area range (under 600 square
feet) has an estimated average of 1.06 persons per dwelling. The largest floor area range (4,001 square
feet or more) has an estimated average of 3.08 persons per dwelling.
0-2 2,180 2,204 1,273 33%1.71 1.68 1.73 1.46
3 3,508 3,443 1,471 38%2.38 2.33 2.34 1.97
4 2,173 2,139 798 21%2.72 2.67 2.68 2.25
5+1,070 958 327 8%3.27 3.20 2.93 2.46
Total 8,931 8,744 3,869 100%2.31 2.26 2.26 1.90
[1] American Community Survey, Public Use Microdata Sample for Montana PUMA 400 (2021 5-Year unweighted data).
[2] Adjusted multipliers are scaled to make the average PUMS values match control totals for Bozeman based on 2021
American Community Survey 5-Year Estimates.
Unadjusted
PPHH
Adjusted
PPHH2
Unadjusted
VPHH
Adjusted
VPHH2
Bedroom
Range Persons1
Vehicles
Available1 Households1
Housing
Mix
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Figure 38. Persons by Dwelling Size
Person by Dwelling Size and Housing Type
The PPHH factors in Figure 38 represents an average over all housing types in Bozeman. An equivalent
dwelling unit (EDU) analysis is completed to calculate the PPHH by size for single-unit dwellings and other
residential units.
Shown in Figure 39, one single-unit EDU is set to the average sized single-unit dwelling in Bozeman (2,201
to 2,400 square feet). The EDU factor for the other size thresholds is found by comparing the PPHH factors,
for example, a single-unit dwelling from 1,801 to 2,000 square feet is 0.92 EDUs (2.28 PPHH / 2.48 PPHH
= 0.92 EDUs).
Bedrooms Square Feet Persons Sq Ft Range Persons
0-2 1,032 1.68 Under 600 1.06
3 2,118 2.33 600 to 800 1.23
4 2,932 2.67 801 to 1,000 1.49
5+4,269 3.20 1,001 to 1,200 1.70
1,201 to 1,400 1.88
1,401 to 1,600 2.03
1,601 to 1,800 2.16
1,801 to 2,000 2.28
2,001 to 2,200 2.38
2,201 to 2,400 2.48
2,401 to 2,600 2.56
2,601 to 2,800 2.64
2,801 to 3,000 2.72
3,001 to 3,200 2.79
3,201 to 3,400 2.85
3,401 to 3,600 2.92
3,601 to 3,800 2.97
3,801 to 4,000 3.03
4,001 or More 3.08
Actual Averages per Hsg Unit Fitted-Curve Values
y = 1.0498ln(x) -5.6504
R² = 0.9878
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
0 1,000 2,000 3,000 4,000 5,000Person per HouseholdSquare Feet of Living Area
Persons per Household by
Square Feet of Dwelling
Average persons per household derived from
2021 ACS PUMS data for the area that
includes Bozeman. Unit size for 0-2 bedroom
is from the 2021 U.S. Census Bureau average for all multifamily units constructed in the
Census West region. Unit size for all other
bedrooms is from the 2021 U.S. Census
Bureau average for single-unit dwellings
constructed in the Census Mountain division.
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The EDU factors for the size threshold is then combined with the average PPHH for single-unit dwelling.
For example, found with US Census ACS 2021 data (Figure 20) the average single-unit dwelling home in
Bozeman is 2.48 persons, thus a single-unit home from 1,801 to 2,000 square feet is 2.28 persons (0.92
EDUs x 2.48 persons = 2.28 persons per household).
Figure 39. Single-Unit Dwelling PPHH by Size
Shown in Figure 40, one other residential EDU is set to the average sized other residential dwelling in
Bozeman (1,401 to 1,600 square feet). The EDU factor for the other size thresholds is found by comparing
the PPHH factors, for example, a unit from 1,001 to 1,200 square feet is 0.84 EDUs (1.70 PPHH / 2.03 PPHH
= 0.84 EDUs).
The EDU factors for the size threshold is then combined with the average PPHH for other residential
dwellings. For example, found with US Census ACS 2021 data (Figure 20) the average other residential
dwelling home in Bozeman is 1.92 persons, thus a single-unit home from 1,001 to 1,200 square feet is
1.61 persons (0.84 EDUs x 1.92 persons = 1.61 persons per household).
Single-Unit Dwelling including Townhomes
Single-Unit
EDU Factor PPHH
Under 600 1.06 0.43 1.06
600 to 800 1.23 0.50 1.23
801 to 1,000 1.49 0.60 1.49
1,001 to 1,200 1.70 0.69 1.70
1,201 to 1,400 1.88 0.76 1.88
1,401 to 1,600 2.03 0.82 2.03
1,601 to 1,800 2.16 0.87 2.16
1,801 to 2,000 2.28 0.92 2.28
2,001 to 2,200 2.38 0.96 2.38
2,201 to 2,400 (avg. single)2.48 1.00 2.48
2,401 to 2,600 2.56 1.03 2.56
2,601 to 2,800 2.64 1.06 2.64
2,801 to 3,000 2.72 1.10 2.72
3,001 to 3,200 2.79 1.13 2.79
3,201 to 3,400 2.85 1.15 2.85
3,401 to 3,600 2.92 1.18 2.92
3,601 to 3,800 2.97 1.20 2.97
3,801 to 4,000 3.03 1.22 3.03
4,001 or More 3.08 1.24 3.08
Average 2.48
Dwelling Size
(squre feet)
Overall
PPHH
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Figure 40. Other Residential PPHH by Size
Other Residential
Other Res.
EDU Factor PPHH
Under 600 1.06 0.52 1.00
600 to 800 1.23 0.61 1.16
801 to 1,000 1.49 0.73 1.41
1,001 to 1,200 1.70 0.84 1.61
1,201 to 1,400 1.88 0.93 1.78
1,401 to 1,600 (avg. other)2.03 1.00 1.92
1,601 to 1,800 2.16 1.06 2.04
1,801 to 2,000 2.28 1.12 2.16
2,001 to 2,200 2.38 1.17 2.25
2,201 to 2,400 2.48 1.22 2.35
2,401 to 2,600 2.56 1.26 2.42
2,601 to 2,800 2.64 1.30 2.50
2,801 to 3,000 2.72 1.34 2.57
3,001 to 3,200 2.79 1.37 2.64
3,201 to 3,400 2.85 1.40 2.70
3,401 to 3,600 2.92 1.44 2.76
3,601 to 3,800 2.97 1.46 2.81
3,801 to 4,000 3.03 1.49 2.87
4,001 or More 3.08 1.52 2.91
Average 1.92
Overall
PPHH
Dwelling Size
(squre feet)
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Trip Generation by Dwelling Size
Rather than rely on one methodology, the recommended trip generation rates shown at the bottom of Figure 41, shaded gray, are an average of
trip rates based on persons and vehicles available for all types of housing units. In Bozeman, the average household is expected to yield 8.86 average
weekday vehicle trip ends (AWVTE), compared to the national weighted average of 7.45 trip ends per household.
Figure 41. Average Weekday Vehicle Trip Ends by Bedroom Range
0-2 2,180 2,204 1,273 33%1.71 1.68 1.73 1.46
3 3,508 3,443 1,471 38%2.38 2.33 2.34 1.97
4 2,173 2,139 798 21%2.72 2.67 2.68 2.25
5+1,070 958 327 8%3.27 3.20 2.93 2.46
Total 8,931 8,744 3,869 100%2.31 2.26 2.26 1.90
National Averages According to ITE
210 SFD 2.65 6.36 9.43 59%3.56 1.48
221 Apt 3.31 5.10 4.54 41%1.37 0.89
Weighted Avg 2.92 5.85 7.45 100%2.67 1.24
Recommended AWVTE per Household
0-2 4.91 8.54 6.73
3 6.80 11.52 9.16
4 7.80 13.16 10.48
5+9.34 14.39 11.87
Average 6.60 11.12 8.86
210 SFD 6.80 11.52 9.16 2.33 1.97
220 Apt 5.20 10.59 7.90 1.78 1.81
All Types 6.16 11.12 8.64 2.11 1.90
Unadjusted
VPHH
Bedroom
Range
AWVTE per
HH Based
on Persons3
AWVTE per
HH Based
on Vehicles4
AWVTE per
Household5
ITE Code AWVTE
per Person
AWVTE
per Vehicle
AWVTE
per HH
Unadjusted
PPHH
Unadjusted
PPHH
Adjusted
PPHH2
Unadjusted
VPHH
Adjusted
VPHH2
ITE Code AWVTE
per Person
AWVTE
per Vehicle
AWVTE
per HH
Housing
Mix
Persons per
Household
Vehicles per
Household
Bedroom
Range Persons1
Vehicles
Available1 Households1
Housing
Mix
1.American Community Survey,Public Use Microdata
Sample for Montana PUMA 400 (2021 5-Year unweighted
data).
2.Adjusted multipliers are scaled to make the average PUMSvaluesmatchcontroltotalsforBozemanbasedon2021
American CommunitySurvey 5-Year Estimates.3.Adjusted persons per household multiplied by national
weighted average triprate perperson.
4.Adjusted vehicles available per household multiplied by
national weighted average trip rateper vehicle.5.Average trip rates based on persons and vehicles per
household.
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Vehicle Trip Ends by Dwelling Size
To derive AWVTE by dwelling size, TischlerBise matched trip generation rates and average floor area, by
bedroom range, as shown in Figure 42, with a logarithmic trend line derived from 2021 square footage
estimates provided by the U.S. Census Bureau (West Region). Using the trend line formula shown in the
chart, TischlerBise derived the estimated average weekday vehicle trip ends, by dwelling size, using 19
size thresholds, expanding the low and high range of the fee schedule.
As shown in the upper-right corner of the table below, the smallest floor area range (under 600 square
feet) generates an estimated average of 4.70 trip ends per dwelling. The largest floor area range (4,001
square feet or more) generates an estimated average of 11.68 trip ends per dwelling.
Figure 42. Vehicle Trip Ends by Dwelling Size
Bedrooms Square Feet Trip Ends Sq Ft Range Trip Ends
0-2 1,032 6.73 Under 600 4.70
3 2,118 9.16 600 to 800 5.27
4 2,932 10.48 801 to 1,000 6.18
5+4,269 11.87 1,001 to 1,200 6.91
1,201 to 1,400 7.51
1,401 to 1,600 8.03
1,601 to 1,800 8.49
1,801 to 2,000 8.89
2,001 to 2,200 9.25
2,201 to 2,400 9.58
2,401 to 2,600 9.88
2,601 to 2,800 10.16
2,801 to 3,000 10.42
3,001 to 3,200 10.66
3,201 to 3,400 10.89
3,401 to 3,600 11.10
3,601 to 3,800 11.30
3,801 to 4,000 11.50
4,001 or More 11.68
Actual Averages per Hsg Unit Fitted-Curve Values
y = 3.6254ln(x) -18.482
R² = 0.9986
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
0 1,000 2,000 3,000 4,000 5,000Trip Ends per HouseholdSquare Feet of Living Area
Vehicle Trips by
Square Feet of Dwelling
Vehicle trips by dwelling size are derived
from 2021 ACS PUMS data for the area that
includes Bozeman. Unit size for 0-2 bedroom
is from the 2021 U.S. Census Bureau average
for all multifamily units constructed in the
Census West region. Unit size for all other
bedrooms is from the 2021 U.S. Census
Bureau average for single-unitdwellings
constructed in the Census Mountain division.
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Vehicle Trip Ends by Dwelling Size and Housing Type
The vehicle trip end factors in Figure 42 represents an average over all housing types in Bozeman. An
equivalent dwelling unit (EDU) analysis is completed to calculate the trip ends by size for single-unit
dwellings and other residential units. Shown in Figure 43, one single-unit EDU is set to the average sized
single-unit dwelling in Bozeman (2,201-2,400 square feet). The EDU factor for the other size thresholds is
found by comparing the trip factors, for example, homes from 1,801 to 2,000 square feet are 0.93 EDUs
(8.89 trip ends / 9.58 trip ends = 0.93 EDUs).
The EDU factors for the size threshold is then combined with the average trip end factor for single-unit
dwellings to find the trip ends by size. For example, found with US Census ACS 2021 data (Figure 30) the
average single-unit dwelling in Bozeman generates 9.27 trip ends, thus a single-unit dwelling from 1,801
to 2,000 square feet has a trip end factor of 8.60 (0.93 EDUs x 9.27 trip ends = 8.60 trip ends per
household).
Figure 43. Single-Unit Dwelling Trip Ends by Size
Shown in Figure 44, one Other Residential EDU is set to the average sized other residential dwelling in
Bozeman (1,401 to 1,600 square feet). The EDU factor for the other size thresholds is found by comparing
the trip factors, for example, homes from 1,001 to 1,200 square feet are 0.86 EDUs (6.91 trip ends / 8.03
trip ends = 0.86 EDUs).
The EDU factors for the size threshold is then combined with the average trip end factor for other
residential dwellings to find the trip ends by size. For example, found with US Census ACS 2021 data
(Figure 30) the average other residential dwelling in Bozeman generates 5.36 trip ends, thus an other
Single-Unit Dwelling including Townhomes
Single-Unit
EDU Factor Trip Ends
Under 600 4.70 0.49 4.55
600 to 800 5.27 0.55 5.10
801 to 1,000 6.18 0.65 5.98
1,001 to 1,200 6.91 0.72 6.69
1,201 to 1,400 7.51 0.78 7.27
1,401 to 1,600 8.03 0.84 7.77
1,601 to 1,800 8.49 0.89 8.22
1,801 to 2,000 8.89 0.93 8.60
2,001 to 2,200 9.25 0.97 8.95
2,201 to 2,400 (avg. single)9.58 1.00 9.27
2,401 to 2,600 9.88 1.03 9.56
2,601 to 2,800 10.16 1.06 9.83
2,801 to 3,000 10.42 1.09 10.08
3,001 to 3,200 10.66 1.11 10.32
3,201 to 3,400 10.89 1.14 10.54
3,401 to 3,600 11.10 1.16 10.74
3,601 to 3,800 11.30 1.18 10.93
3,801 to 4,000 11.50 1.20 11.13
4,001 or More 11.68 1.22 11.30
Average 9.27
Dwelling Size
(squre feet)
Overall
Trip Ends
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residential dwelling from 1,001 to 1,200 square feet has a trip end factor of 4.61 (0.86 EDUs x 5.36 trip
ends = 4.61 trip ends per household).
Figure 44. Other Residential Trip Ends by Size
Other Residential
Other Res.
EDU Factor Trip Ends
Under 600 4.70 0.59 3.14
600 to 800 5.27 0.66 3.52
801 to 1,000 6.18 0.77 4.13
1,001 to 1,200 6.91 0.86 4.61
1,201 to 1,400 7.51 0.94 5.01
1,401 to 1,600 (avg. other)8.03 1.00 5.36
1,601 to 1,800 8.49 1.06 5.67
1,801 to 2,000 8.89 1.11 5.93
2,001 to 2,200 9.25 1.15 6.17
2,201 to 2,400 9.58 1.19 6.39
2,401 to 2,600 9.88 1.23 6.59
2,601 to 2,800 10.16 1.27 6.78
2,801 to 3,000 10.42 1.30 6.96
3,001 to 3,200 10.66 1.33 7.12
3,201 to 3,400 10.89 1.36 7.27
3,401 to 3,600 11.10 1.38 7.41
3,601 to 3,800 11.30 1.41 7.54
3,801 to 4,000 11.50 1.43 7.68
4,001 or More 11.68 1.45 7.80
Average 5.36
Overall
Trip Ends
Dwelling Size
(squre feet)
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APPENDIX B: LAND USE DEFINITIONS
Residential Development
Single-Unit Dwelling:
1. Single-family detached is a one-unit structure detached from any other house, that is, with open
space on all four sides. Such structures are considered detached even if they have an adjoining shed
or garage. A one-family house that contains a business is considered detached as long as the building
has open space on all four sides.
2. Single-family attached (townhouse) is a one-unit structure that has one or more walls extending
from ground to roof separating it from adjoining structures. In row houses (sometimes called
townhouses), double houses, or houses attached to nonresidential structures, each house is a
separate, attached structure if the dividing or common wall goes from ground to roof.
3. Mobile home includes both occupied and vacant mobile homes, to which no permanent rooms have
been added, are counted in this category. Mobile homes used only for business purposes or for
extra sleeping space and mobile homes for sale on a dealer's lot, at the factory, or in storage are
not counted in the housing inventory.
Other Residential:
1. 2+ units (duplexes and apartments) are units in structures containing two or more housing units,
further categorized as units in structures with “2, 3 or 4, 5 to 9, 10 to 19, 20 to 49, and 50 or more
apartments.”
2. Boat, RV, Van, etc. includes any living quarters occupied as a housing unit that does not fit the other
categories (e.g., houseboats, railroad cars, campers, and vans). Recreational vehicles, boats, vans,
railroad cars, and the like are included only if they are occupied as a current place of residence. Such
living quarters are only allowed under Bozeman zoning under unusual temporary conditions.
Nonresidential Development
Nonresidential development categories represent general groups of land uses that share similar average
weekday vehicle trip generation rates and employment densities (i.e., jobs per 1,000 square feet).
Retail: Establishments primarily selling merchandise, eating/drinking places, and entertainment uses. By
way of example, Retail includes shopping centers, supermarkets, pharmacies, restaurants, bars,
nightclubs, automobile dealerships, and movie theaters.
Industrial: Establishments primarily engaged in the production, transportation, or storage of goods. By
way of example, Industrial includes manufacturing plants, distribution warehouses, trucking companies,
utility substations, power generation facilities, and telecommunications buildings.
Office: Establishments providing management, administrative, professional, or business services. By way
of example, Office can include business offices, office parks, and corporate headquarters.
Institutional: Establishments providing education and healthcare services. By way of example,
Institutional includes universities, nursing homes, daycare facilities, and hospitals.
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MCA Contents / TITLE 7 / CHAPTER 6 / Part 16 / 7-6-1602 Calculation of…
Montana Code Annotated 2023
TITLE 7. LOCAL GOVERNMENT
CHAPTER 6. FINANCIAL ADMINISTRATION AND TAXATION
Part 16. Impact Fees to Fund Capital Improvements
Calculation Of Impact Fees -- Documentation
Required -- Ordinance Or Resolution --
Requirements For Impact Fees
7-6-1602. Calculation of impact fees -- documentation required -- ordinance or resolution --
requirements for impact fees. (1) For each public facility for which an impact fee is imposed, the governmental
entity shall prepare and approve a service area report.
(2) The service area report is a written analysis that must:
(a) describe existing conditions of the facility;
(b) establish level-of-service standards;
(c) forecast future additional needs for service for a defined period of time;
(d) identify capital improvements necessary to meet future needs for service;
(e) identify those capital improvements needed for continued operation and maintenance of the facility;
(f) make a determination as to whether one service area or more than one service area is necessary to
establish a correlation between impact fees and benefits;
(g) make a determination as to whether one service area or more than one service area for transportation
facilities is needed to establish a correlation between impact fees and benefits;
(h) establish the methodology and time period over which the governmental entity will assign the proportionate
share of capital costs for expansion of the facility to provide service to new development within each service
area;
(i) establish the methodology that the governmental entity will use to exclude operations and maintenance
costs and correction of existing deficiencies from the impact fee;
(j) establish the amount of the impact fee that will be imposed for each unit of increased service demand; and
(k) have a component of the budget of the governmental entity that:
(i) schedules construction of public facility capital improvements to serve projected growth;
(ii) projects costs of the capital improvements;
(iii) allocates collected impact fees for construction of the capital improvements; and
(iv) covers at least a 5-year period and is reviewed and updated at least every 5 years.
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(3) The service area report is a written analysis that must contain documentation of sources and methodology
used for purposes of subsection (2) and must document how each impact fee meets the requirements of
subsection (7).
(4) The service area report that supports adoption and calculation of an impact fee must be available to the
public upon request.
(5) The amount of each impact fee imposed must be based upon the actual cost of public facility expansion or
improvements or reasonable estimates of the cost to be incurred by the governmental entity as a result of new
development. The calculation of each impact fee must be in accordance with generally accepted accounting
principles.
(6) The ordinance or resolution adopting the impact fee must include a time schedule for periodically updating
the documentation required under subsection (2).
(7) An impact fee must meet the following requirements:
(a) The amount of the impact fee must be reasonably related to and reasonably attributable to the
development's share of the cost of infrastructure improvements made necessary by the new development.
(b) The impact fees imposed may not exceed a proportionate share of the costs incurred or to be incurred by
the governmental entity in accommodating the development. The following factors must be considered in
determining a proportionate share of public facilities capital improvements costs:
(i) the need for public facilities capital improvements required to serve new development; and
(ii) consideration of payments for system improvements reasonably anticipated to be made by or as a result of
the development in the form of user fees, debt service payments, taxes, and other available sources of funding
the system improvements.
(c) Costs for correction of existing deficiencies in a public facility may not be included in the impact fee.
(d) New development may not be held to a higher level of service than existing users unless there is a
mechanism in place for the existing users to make improvements to the existing system to match the higher level
of service.
(e) Impact fees may not include expenses for operations and maintenance of the facility.
History: En. Sec. 2, Ch. 299, L. 2005; amd. Sec. 1, Ch. 358, L. 2009; amd. Sec. 1, Ch. 276, L. 2015.
Created by
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Memorandum
REPORT TO:Community Development Board
FROM:Chris Saunders, Community Development Manager
Erin George, Community Development Interim Director
SUBJECT:Upcoming Items for the September 16, 2024, Community Development
Board Meeting.
MEETING DATE:September 9, 2024
AGENDA ITEM TYPE:Citizen Advisory Board/Commission
RECOMMENDATION:Information only, no action required.
STRATEGIC PLAN:4.2 High Quality Urban Approach: Continue to support high-quality planning,
ranging from building design to neighborhood layouts, while pursuing urban
approaches to issues such as multimodal transportation, infill, density,
connected trails and parks, and walkable neighborhoods.
BACKGROUND:The following development review items are presently scheduled for the
September 16, 2024, Community Development Board meeting:
1. None.
UNRESOLVED ISSUES:None.
ALTERNATIVES:None.
FISCAL EFFECTS:None.
Report compiled on: September 4, 2024
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Memorandum
REPORT TO:Community Development Board
FROM:Chris Saunders, Community Development Manager
Erin George, Community Development Interim Director
SUBJECT:Information Regarding Other Montana Communities Using Impact Fees
MEETING DATE:September 9, 2024
AGENDA ITEM TYPE:Citizen Advisory Board/Commission
RECOMMENDATION:Receive information.
STRATEGIC PLAN:4.1 Informed Conversation on Growth: Continue developing an in-depth
understanding of how Bozeman is growing and changing and proactively
address change in a balanced and coordinated manner.
BACKGROUND:At the August 19th Community Development Board meeting, Board
members expressed interest in how other communities are using impact
fees. Attached is a short summary of cities in Montana that are using impact
fees and the fees applicable for a 2,400 sq. ft. detached home as a common
reference point.
UNRESOLVED ISSUES:None.
ALTERNATIVES:None, information only.
FISCAL EFFECTS:None, information only.
Attachments:
Other Communities Memo 9-5-2024.pdf
Report compiled on: September 5, 2024
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MEMORANDUM
TO: COMMUNITY DEVELOPMENT BOARD
FROM: CHRIS SAUNDERS, COMMUNITY DEVELOPMENT MANAGER
DATE: AUGUST 14, 2024
SUBJECT: IMPACT FEE USE BY OTHER MONTANA COMMUNITIES The Community Development Board expressed interest in the impact fees used by other communities in the state. Staff has surveyed likely communities and obtained information as follows.
Belgrade: Belgrade is currently working on an update to their impact fees. An RFP was issued in March and a consultant was selected. Belgrade has adopted impact fees for Parks, Water, Sewer, Streets, and Fire. Fees were most recently updated in 2019 and have not been inflation adjusted since then. They recently merged fire services with Central Valley Fire District. Fees are charged for both residential and non-residential uses. They do not divide fees as finely as Bozeman does. Fees for a single detached home (no specified size) are: Parks $1,139 Water $4,786 Sewer $2,709 Streets $5,238 Fire $272 Administration fee of 5% $707.20 Missoula: Missoula has adopted impact fees for Community Services (various governmental general functions, vehicles, and equipment), Parks and Open Space, Transportation, Police, and Fire. City-wide fees were updated in 2019. Fees are charged for both residential and non-residential uses. They divide fees similar to how Bozeman does with gradations for housing size but different size bands. Fees for a single detached home (2,400 sq. ft.) are: Community Services $1,406 Parks and Open Space $4,904 Transportation $1,602 Police $151 Fire $506
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Page 2 of 2
Whitefish: Whitefish has adopted impact fees for Water, Sewer, Stormwater, Police, and Fire. Fees were most recently adopted in 2023. Fees are charged for both residential and non-residential uses. They divide some fees by square footage of home but less finely than Bozeman does. Water and sewer are set by meter size for all uses. Fees for a single detached home (2,400 sq. ft.) are: Parks & Recreation $419 Paved Trails $912 City Hall $1,138 Police $551 Fire $790 Water $3,903 Sewer $4,041 Kalispell: Kalispell has adopted impact fees for Water, Sewer, Stormwater, Police, and Fire. Fees were adopted in 2015-2019. They have recently begun inflation adjustments. Fees are charged for both residential and non-residential uses. They do not divide fees as finely as Bozeman does. Fees for a single detached home (no specified size) are: Water $2,138 Sewer $3,240 Stormwater $618 Police $41 Fire $438 Helena, Great Falls, and Billings have not chosen to use impact fees as part of their infrastructure funding approach.
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