BACKGROUND/DISCUSSION:
As required under the Local Government Code, the CIAC meets twice yearly to review the progress of the capital improvements plan and report to the City Council any needed revisions or updates to the land use assumptions, capital improvements plan, and impact fees. The committee met on November 9, 2021 for that purpose.
The CIAC received the report below along with supporting documents including an updated spreadsheet for City of Saginaw Water and Sewer Impact Fees Revenue and Expense Summary showing the fund balances as of November 3, 2021. A second document was Table 12 from the City of Saginaw 2020 Water Impact Study showing a summary of the City of Saginaw Water impact Fee Capital Improvements, Project Costs and 10-Year Recoverable Cost when the study was completed in late 2020.
The CIAC received the staff report as follows:
On June 16, 2020, City Council authorized Kimley-Horn and Associates, Inc. to conduct a Water Impact Fee Study (Study). Cities are required to review their impact fees on a 5-year cycle. The study included a Water Capital Improvement Plan (CIP) (attached Table 12) to determine the maximum rate the city could assess to recover costs due to new development.
Comparing the CIP to the Water Fund Balance resulted in a staff recommendation that the collection of water impact fees cease since sufficient funds existed to fund the outstanding CIP. Council approved that recommendation.
Since the action by City Council, the NW Booster Pump Station has escalated from $462,500 to $940,000. The increase is due to a change in scope required to provide adequate fire protection to future multi-storied apartment in the northwest part of the City. A second project has been added to provide a similar booster pump station in the Beltmill development.
The table below provides a summary of the impact of these two projects and potential funding sources. The impact is a projected funding deficit of $1,580,196. Funding will likely be from use of Water Fund Balance, reimbursement from the TIRZ (Beltmill), developer contribution and/or alternative funding sources.
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Water CIP
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Saginaw Boulevard 12" Waterline, Ph. 2
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$ 1,305,000.00
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McLeroy 12" Waterline, Ph. 2
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$ 325,000.00
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Northwest Booster Pump Station
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$ 940,000.00
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Fort Worth Meter Station Upgrade
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$ 250,000.00
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Beltmill Pump Station
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$ 950,000.00
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Sub-Total
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$ 3,770,000.00
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Saginaw Boulevard 12" Waterline, Ph. 2 Expenses to Date
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$ 1,093,157.80
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Remaining Water CIP Budget
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$ 2,676,842.20
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Water Enterprise Fund Balance
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$ 1,096,646.42
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Projected Fund Balance A
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$ (1,580,195.78)
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A Projected deficit will be funded by use of Water Fund Balance, developer or alternate funding source. Beltmill Pump Station to be funded by Water Fund Balance and Potentially Reimbursed by the TIRZ
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The CIAC discussed the projects contained in the CIP and voted to unanimously to advise the City Council that the project expenditures are on schedule and that there is no reason to update the land use assumptions, and the impact fees are valid at this time.
FINANCIAL IMPACT:
N.A.
RECOMMENDATION:
Staff recommends acceptance of the CIAC’s findings.