CC - Agendas - City Council - REGULAR - 12/2/2014

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1Lb. ciTYoF PRESCOTT F�,-u1; r °"nctate" COUNCIL AGENDA MEMO MEETING DATE/TYPE: COMBINED WORKSHOP AND 12-2-14 REGULAR VOTING SESSION DEPARTMENT: Finance AGENDA ITEM: Adoption of Ordinance No. 4916-1454 repealing development impact fees for fire and police Approved By: Date: Director: Woodfill, Mark 11/18/2014 City Manager: McConnell, Craig a Background At the May 13, 2014, Council meeting, development impact fees for water, wastewater, fire, and police were adopted by Resolution No. 4225-1434. For each of the fire and police fees, Council opted to set rates of zero ($0.00) from August 1, 2014 (the effective date of all of the updated impact fees), until January 1, 2015; and established a checkpoint of December 2014 for further consideration of these two categories. All of the fees set by Resolution No. 4224-1434 were codified by adoption of Ordinance No. 4889- 1427 on June 24, 2014. If no further action is taken, the fire and police development impact fees identified by Exhibit B to Resolution No. 4224-1434, and codified by Ordinance No. 4889-1427, will go into effect on January 1, 2015. For reference, presentation slides from the May 6, 2014, Council meeting pertaining to the fire and police development impact fees are attached; the fee amounts indicated are those which were subsequently adopted. There have been no significant changes to City finances since the fire and police impact fees were set at zero, and calendared for further discussion in December 2014. Simply stated, General Fund resources are insufficient to support both the portions of the capital cost of the new facilities listed in the Fire and Police Infrastructure Improvement Plans (IIP) that are not attributable to new growth (i.e., existing deficiencies ineligible for funding from impact fees), as well as the recurring operating costs, none of which can be paid from impact fees. These (unfunded) portions of the capital facilities costs are $2,183,000 for Fire and EMS IIP Projects, and $1,969,918 for Police IIP Projects. The recurring annual operating costs for a new fire station alone are in the range of $1.0 to $1.2 million per year, not including fire apparatus (a fire engine) that costs over $500,000 and must be replaced in the future when its service life is depleted. Unless/until General Fund financial resources are augmented and assured for each future fiscal year, as a matter of prudent financial policy, construction of new fire and police facilities only