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8 <br />to calculate how much of capital costs are covered by these <br />payments. Whatever is not paid would then be paid through impact <br />fees. <br />The courts have provided little guidance with respect to <br />setting the amount of impact fees. However, the Utah Supreme Court, <br />in Banberry vs. South Jordan City, set out seven factors that can <br />be considered in establishing a proportionate share of capital <br />costs to be borne by new development. These factors include: <br />1. The cost of the existing facilities; <br />2. The methods by which the existing capital improvements <br />were financed; <br />3. The extent to which new developments have already <br />contributed to the cost of the existing capital <br />improvements; <br />4. The extent to which new developments will pay for <br />existing capital improvements in the future through user <br />fees, debt service payments or other payments toward the <br />cost of existing capital improvements; <br />5. The extent to which new developments are required to <br />construct and /or dedicate capital improvements as <br />conditions of development or construction approval; <br />b. Extraordinary costs, if any, in serving the new <br />development; and <br />7. The time -price differentials inherent in fair comparisons <br />of amounts paid at different times. <br />ftMents.BX New Develo eat Toward Cm ital Cost <br />To determine how capital improvements have been financed, the <br />fiscal structuring of the community must be examined. Each type of <br />facility needs to be analyzed in terms of how it was financed and <br />also in terms of how new development will contribute toward capital <br />finance in the future. It would be unfair to require new <br />development to pay some portion of either existing or future <br />capital improvements and also require them to be totally <br />responsible for the capital improvement costs that new development <br />will need. Thus, a system of "credits" must be identified which <br />recognizes the extent to which to which new developments have <br />already contributed to and will pay for (in the future) the cost of <br />existing capital improvements. <br />Present Va ug. The amounts of concern in impact fee <br />calculation are not one -time payments in the future. Rather, the <br />amounts of concerns are annual payments. This means that there will <br />be a payment in one year, in two years, in three years, etc. Thus, <br />the time -price differentials mentioned in the seventh Banberry <br />