IPFNA_Policy Analysis Memo_Jan_06

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INTRODUCTION The purpose of this memorandum is to assist HawaiÔi County in de replace its existing system of fair shar e assessments with an impact fee program. The impact fee project has been divided into two phases. The first phase will iden tify facilities for which it would be feasible to develop impact fees base d on available data and other factors. The specific methodology and approach to be used in developing th e fees will also be refined during this phase. The second phase will entail the preparation of detaile d impact fee studies and ordinance amendments to implement the policy decisions made in Phase I. This memorandum is the major consultant work pr oduct for Phase I. It is intended to provide background information and guidance to the County in deciding whether and how to proceed with the development of an impact fee program in Phase II. Background The County of HawaiÔi encompasses the entire isla nd of HawaiÔi and has the largest land area of HawaiÔiÔs counties. The land area of the County is approximately twice the combined land area of all the other islands of the State. Traditionally, agriculture has played an important role in the CountyÔs economy and Figure 1 much of the CountyÔs population growth and POPULATION GROWTH, 1940-2020 development was tied to the growth and employment needs of its agricultural economy. The islandÔs population declined after World War II with the decreasing need for agricultural workers. Since the 1960s, however, tourism has emerged as the primary economic activity. In addition, the County has seen substantial population growth beyond what would be expected from economic opportunities in the CountyÔs primary industries; such population growth has most likely been due to in-migration of people drawn to the quality of life in the County. The County of HawaiÔi is currently the second most populous county in HawaiÔi. The 2000 U.S. Census recorded the CountyÔs population as 148,677. Fi gure 1 shows the population growth since 1940, and the projected growth through 2020. The County of HawaiÔiÔs population growth has remained relatively constant over the last two decades, with a slight decline from an annual rate of 2. 71 percent in the 1980s to 2.14 percent in the 1990s. According to population projections provided in the medium serie HawaiÔi County General Plan , HawaiÔi CountyÔs population is expected to grow at about 1.9 percent a year over the next H Ô C \I N A ÐP A M January 5, 2006 , Page 3 AWAI I OUNTY NFRASTRUCTURE EEDS SSESSMENT OLICY NALYSIS EMORANDUM