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

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AOilk Although previous councils have opted against nonresidential impact fees, the recent studies have factored nonresidential use into the calculation in an effort to alleviate the shortfalls created by a residential only impact fee. The nonresidential fee is not imposed for nonresidential services such as parks, recreation and library since nearly all of these services are geared towards residential users.The table below reflects the proposed nonresidential fees per 1,000 square feet: Proposed Impact Fees: Nonresidential Units (per 1,000 s.f.) 2001 2006 Fire 435 871 Police 365 624 Public Buildings & Fleet 275 282 Streets* 469 469 Total 1,544 2,246 *The streets impact fee is not included in this update will be considered separately. The proposed fee from 2001 is included in the proposed 2006 amounts. It could be argued that commercial development places an increased burden on our police and fire departments as well as many of the public buildings. Commercial fees are reflected in the report update in the event that the Council desires to expand the fees to include commercial development. Most jurisdictions are imposing nonresidential fees that average $3,513 as shown in the survey results in the appendix. These fees presented in the report should be considered the "ceiling" or the highest allowable ,r. based on the methodology used. The City Council has the discretion to reduce or entirely eliminate any of these fees as long as it is done in a nondiscriminatory manner. However, a reduction in development fee revenue will dictate an increase in other revenues, a decrease in planned capital expenditures and/or a decrease in the City's SL standards. Development Fee Inflation Escalator All costs in the development fee calculations are given in current dollars, we recommend an annual inflation adjustment to the fees based on the rapidly rising construction costs we have experienced on our large projects. The adjustment factor should be based on the change in construction costs according to the Engineering News Record (ENR) 20 City Construction Cost Index. The first escalation should be imposed on January 1, 2007 and each succeeding January 1 until the study is revised or updated.The Appendix includes an example of how the escalator will be applied. Demographics The table below reflects the demographics at the time of each impact fee study: % Increase 1994 2001 2005 from 1994 Population 30,815 33,938 41,050 33.2% Average household size 2.11 2.11 - Estimated residential units 15,029 17,916 21,005 39.8% Estimated nonresidential square footage 4,646,551 7,784,105 11,732,249 152.5% Annual new residential units 519 503 715 37.8% Annual new nonresidential square footage 128,341 627,511 789,623 515.3% 4111. Projected dwelling units at build out 21,894 24,092 31,000 41.6%