BACKGROUND/DISCUSSION:
On June 16, 2020, City Council authorized Kimley-Horn and Associates, Inc. to conduct a Water Impact Fee Study (Study). The last update to Water Impact Fees occurred in 2016. Impact fees allow cities to shift system wide facility costs to new development. Impact fees must be evaluated every five years at a minimum.
As part of the impact fee adoption process, a public hearing is required to be held on the impact fees. The Study sets the City’s maximum assessable water impact fee for a standard residential ¾” connection at $531 down from the current fee of $913.
The City also collects City of Fort Worth’s impact fees as a pass through. Currently the City of Fort Worth’s maximum assessable water impact fee for a standard residential ¾” connection is $6,593.
Currently the City is not collecting any additional Water or Sanitary Sewer Impact fees as an administrative function. Sufficient funds exist in the Water Enterprise Fund balance to complete the estimated remaining Water and Sanitary Sewer Capital Improvements. Therefore it is recommended that the Master Fee Table be amended to reflect no City of Saginaw fee collection for both Water and Sanitary Sewer Impact Fees.
The Capital Improvement Advisory Committee (CIAC) met on November 10, 2020 and received a briefing on the proposed Water Impact Fee Study and the City's recommendation to stop receiving impact fees. The CIAC unanimously concurred with the recommendation and forwarded it to the City Council for consideration (attachment).
FINANCIAL IMPACT:
The financial impact will be no further collection of water impact fees.
RECOMMENDATION:
Staff recommends:
1. approval of Ordinance No. 2021-1 amending the Water Impact Fees on new land development or redevelopment within the City limits and updating the City’s Land Use Assumptions and Capital Improvements Plan; and
2. approval of Ordinance 2021-2 amending the Master Fee Table be amended to reflect no City of Saginaw fee collection for both Water and Sanitary Sewer Impact Fees.