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

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In 2001, the impact fees were updated to reflect the rapidly changing demographics and the continued strain on our existing facilities and to ensure that the charges, and the underlying assumptions, were meeting the needs for which they were established. In addition to updating the fees, a new public buildings fee for was initiated. Since 1995, the city has collected nearly $13 million in impact fees that have helped to defray the cost of growth related projects totaling $11.1 million. Details of each fee and the related use of proceeds are shown in the appendix of this report. The City Council has authority to reduce or eliminate any of the impact fees, but cannot arbitrarily increase the fees. Increases require revisions to the public report to demonstrate justification and formula revisions. This report provides such an update. Process and Proposed Fees There are three methods used to calculate the various development impact fees. A plan-based method is best suited for public facilities that have adopted plans or commonly accepted service delivery standards to guide capital improvements. The incremental expansion approach documents the current service level (SL) for each type of public facility. SL standards are determined using the City's current inventory of capital facilities and assets as well as current costs to construct or acquire comparable facilities or assets. An incremental expansion cost approach is best suited for public facilities that will be expanded in regular increments, with SL standards based on current conditions in the community. This approach was .romik used extensively in this study. A third approach, known as the buy-in approach is best suited for facilities that have been overbuilt in anticipation of growth and have excess capacity available. New development would "buy-in" to the excess capacity of the facility. The basis for the buy-in approach is that new development will pay for its share of the useful life and remaining capacity of recently constructed or purchased facilities. Each department provided updates and improved information based on current replacement costs for the various impact fees as well as new projects anticipated as a result of growth. The updated information is presented in the supporting impact fee calculation section. The public building fee is restructured to reflect the addition of the City's vehicle fleet.This update proposes a 154% increase to the residential impact fees as shown below: Impact Fees: Residential Units 1994 2001 2006 Fire 128 167 525 Police 48 84 589 Parks 500 715 2,466 Recreation 400 401 708 Library 208 253 747 Public Buildings& Fleet N/A 275 511 Streets(not included in this update) N/A 469 469 Total 1,284 2,364 6,015 -�•.