STAFF REPORT

Town Council, March 27, 2008

Transportation Development Fee Ordinance (EN08-083)
Consideration of amending Section 7.11 of the Land Development Ordinance (LDO)
Speaker:  Mr. Tim Bailey

From:  Tim Bailey, PE, Engineering Director
Prepared by:  Tim Bailey, PE, Engineering Director
Approved by:  William B. Coleman, Jr., Town Manager
Approved by:  Benjamin T. Shivar, Assistant Town Manager

Purpose:  Consideration of several changes to the Transportation Development Fee Ordinance as recommended by the November 2007 Duncan Associates report.

Town Council authorized a study to update transportation development fees (TDF) primarily considering level of fees.  Considerable change occurred since the last consultant study and some changes in the Town’s ordinance were also recommended.  A slightly different process is required for ordinance changes; therefore this item is being submitted in a separate staff report.  Ordinance changes must receive a recommendation from the Planning and Zoning Board prior to adoption.

A draft ordinance is attached with additions underlined and deletions shown in strike through. 

Overall the changes are minor.  A brief summary of changes is as follows:

The consultant recommended deletion of the Southeast Zone.  The fees were nearly the same in this zone.  Many of the concerns with this area have been addressed since the last study.  Traffic growth has stabilized in this area as new retail facilities have opened in Apex, Durham and other locations in Cary.  Several road improvements have been completed and a few more are planned.  Concerns about traffic congestion in this area have decreased and are now similar to other areas of Town. 

An increase in the amount of fee collected which go toward annual cash reimbursements are proposed to change from 25% to 30%.  The sum of the cash reimbursement requests has been increasing in recent years.  Increasing the percentage available for cash reimbursements coupled with other recommendations will be an effort to address this concern.  The Town will continue to monitor this issue over time. 

The formula changes slightly with this study.  The ordinance should reflect the most recent methodology used to calculate the fees. 

Proposed Schedule

Fiscal Impact:  A 5% reduction in revenue will occur with a change to 30% of fees collected being allocated to cash reimbursement, based on prior typical revenue of $3 million annually.  This will reduce revenue approximately $150,000.00.  This is an estimate based on past experience.  

Recommendation:  Staff recommends that this item be referred to the Planning and Zoning Board following the Public Hearing.