|
Development fees fund planning and growth management, including long and short
term planning and zoning, review of development plans and subdivisions and
building inspection.
|
| Fiscal
Year |
1998a |
1999a |
2000a |
2001 a |
2002 a |
2003 b |
2003 p |
2004 p |
2005 p |
2006 p |
2007 p |
| Revenue
$ |
5,661 |
5,782 |
6,493 |
8,426 |
5,436 |
5,986 |
5,922 |
4,969 |
4,991 |
5,271 |
5,271 |
| % Change |
4.6% |
2.1% |
12.3% |
29.8% |
-35.5% |
10.1% |
8.9% |
-16.1% |
0.4% |
5.6% |
0.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Historical Events |
| During the
1990�s, the City benefited from record growth rates in residential and
commercial real estate.
|
|
Since FY
1997, increases in development revenue have averaged nearly 8% due to strong
population growth, a favorable economy, and low mortgage interest rates.
|
|
|
FY 2000 had significant increases due to several large commercial projects such
as the Ada County Courthouse project.
|
|
|
FY 2001 was a
record year for the City primarily from multi-housing construction and major
capital expansion by Micron, Incorporated.
|
|
|
A weak
economy and the impact of the September 11, 2001 terrorist attack resulted in
the dramatic decline in FY 2002.
|
| |
| Projection/Assumptions |
| Development
fees are intended to cover the cost of providing planning and building
services, with the exception of code enforcement and comprehensive planning.
|
|
|
Projections
are based on permits typical of the past 10 years for smaller projects and do
not include any large commercial projects over $50 million.
|
|
|
Projections are based upon no increase in the number of housing permits through
FY 2003 and 2004 from FY 2002. Total permit valuation is projected to decline
because of lower commercial values.
|
|
|
The 5% fee
increase effective October 1, 2002 is included in the projections. No other fee
increase is assumed.
|
|
|
Because the
expected recovery has lagged behind estimates, the projections are revised
downward by $300,000 in both FY 2004 and FY 2005.
|
| |
|
Threats/Opportunities
|
|
|
East Gate Industrial Park development could enhance development activity of
large commercial projects.
|
|
|
Continued economic weakness could dampen development activity.
|
|
|
|