CC - Agendas - City Council - REGULAR - 8/29/2006

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TV, E, M COUNCIL AGENDA MEMO — August 29, 2006 DEPARTMENT: FINANCE AGENDA ITEM: Public Hearing on Intention to Increase Development Fees Approved By: Date: Department Head: Finance Director: Mark Woodfill City Manager: Steve Norwood I ��`j fib BACKGROUND The City first imposed impact fees in 1994. The state approved legislation in 1982 that permitted cities to assess development impact fees to offset the costs incurred for providing public services to new development. We project that through fiscal year 2006, the City will have collected over $12.6 million in impact fees that have helped to defray the cost of growth related projects totaling $10.6 million. The fees were last updated in June 2001. In January 2006, the impact fees were reviewed internally to ensure that the charges, and the underlying assumptions, were meeting the needs for which they were established. Both the demographics and projected projects resulting from increased growth have changed since the previous update. The accompanying Impact Fee Public Report provides the details for each fee. The public report includes information on non-residential fees. Impact fees have not been levied on non-residential development in the past because of the economic benefit and privilege tax revenue generated by commercial development. The current residential fees and the maximum fees from the public report are summarized below. Impact Fees Current Maximum % Increase Library 253 747 195% Parks 715 2,466 245% Recreation 401 708 77% Police* 84 589 601% Fire* 167 525 214% Streets 469 469 0% Public Buildings/Fleet 275 511 86% Total 2,364 6,015 154% * - The City Manager is currently recommending residential fees be increased only for Police and Fire, at the maximum level with only a modest increase for the remaining areas. 1