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February 7, 2023 City Council Regular Meeting
Title
12. First of Two Public Hearings to Adopt the Impact Fee Ordinance.
Strategic Priority
Good Government
Description

This is the first of two public hearings to receive and consider comments for the implementation of an impact fee ordinance. The hearing is held in accordance with the authority provided by Article 9, Section 2, Paragraph 3 of the Constitution of the State of Georgia and the Georgia Development Impact Fee Act (DIFA) under O.C.G.A. § 36-71-1 et seq. as amended.  

In 1990, the Georgia Development Impact Fee Act (DIFA) was enacted into law, and it significantly affected the way local governments in Georgia pay for public services and facilities. Impact fees are one-time fees charged to land developers to help defray the costs of expanding capital facilities to serve new growth. DIFA enables local governments to charge new development for a proportionate share of infrastructure capacity it requires. However, the Act places restrictions on the categories of capital facilities for which new development can be charged. It also establishes rules under which impact fees must be calculated, collected, expended, accounted for, and administered.

As part of the process to create an impact fee program, the CIty completed a Methodology Report last year. The document contains the growth forecasts for the city and identifies capital projects needed to meet the City’s Level of Service standards.  It also presents calculations related to establishing the maximum impact fees that could be charged for the public facility categories which include roads, public safety, and parks and recreation. The forecasts and identified capital improvement projects from this report comprise the Capital Improvements Element (CIE) which must be approved by the Coastal Regional Commission (CRC) and the Georgia Department of Community Affairs (DCA).  On January 19, 2023, DCA notified the City that the revised CIE adequately addressed the State’s requirements.

To move forward in the adoption of impact fees, City Council must:

  1. Adopt an impact fee ordinance; 
  2. Amend the Chatham County-Savannah Comprehensive Plan to include the CIE; and
  3. Approve a resolution for affordable housing exemptions. 

A corresponding agenda item includes the 1st Reading for the new ordinance.  At the City Council meeting on February 23, the second public hearing and 2nd Reading will be scheduled along with the resolutions to adopt the CIE and affordable housing exemption. 

Recommendation
Contact
Bridget Lidy, Senior Director, Planning & Urban Design
Financial Impact
N/A
Review Comments
Attachments
Exhibit 1: Methodology Report Final Document.pdf
Exhibit 2: Capital Improvements Element Final Document.pdf
Exhibit 3: City of Savannah CIE Approval.pdf
Exhibit 4: Proposed Savannah Impact Fee Ordinance and Maximum Fee Schedule.pdf
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