HomeMy WebLinkAboutCouncil Presentation 04/01/2014 - Water and WW Utility Impact Fee analysis4/1/2014
• Definition: "one time charge paid by new development to
finance the construction of public facilities needed to
serve it"
• Fees are calculated using a defined methodology that is
endorsed by industry experts and used by cities and towns
nationwide
• By implementing development fees, cities and towns
ensure that existing ratepayers are not funding the cost of
new development
• Revenues from development fees cannot be used for
personnel or operating expenses - only for capital costs to
serve new development
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■ Outlines a strict series of guidelines and mandates
for cities and towns to follow in implementing
Impact Fees
■ Requires that adoption process be strictly followed:
- Development and approval of Infrastructure Improvement Plan
- Public Hearing on reasonableness of proposed fee
- Formal adoption by Town Council through ordinance
■ Mandates that adopted fees be periodically
reviewed
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■ Methodology and computations in study result in
the calculation of a maximum impact fee
■ This represents the legal limit at which the fee can
be set
■ Therefore the Town has the right to set the fee at
any level from $0 to the maximum allowable
amount
■ Cities and Towns must set an appropriate balance
between making growth pay for itself and not
driving development to other communities
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$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
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Source: WestLand Resources
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Water Resources North Marana Twin Peaks Wastewater
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■ Impact fees are just and reasonable and
calculated in accordance with national
ratemaking standards
■ Fees are fully in compliance with Arizona SB
1525
■ Collection of maximum fees will ensure that
growth pays for itself
■ In deciding on level of fee to set, Town must
balance the goal of making growth pay for
itself with not driving development to other
communities
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