CC - Minutes - City Council - 2/18/2014

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Prescott City Council Special Meeting February 18, 2014 Page 4 Mr. Rheem noted that reimbursement of Streets Fund for debt incurred from previous improvements is not allowed and the City does not currently have identified capacity expanding projects in the area of streets. He said the City is restricted in the service area on how the money is spent and restricted in what the money may go towards. There is no additional capacity improvements programmed in the five year Capital Improvement Projects Mr. McConnell said it was confusing; if the fees were adopted, the City would be keeping impact fees but there would be no projects. Mr. Rheem continued with Utility Fee Components and said that fees are tied to the capacity of the major facilities and are different from street fees. Mr. McConnell said the Infrastructure Improvement Plan is a conservative plan that has been scaled back. He said the anticipated population growth is reasonable. He noted that the City of Prescott has enough land within its existing city limits to exhaust its available water without annexing any more property. There was a discussion about the water system fee. Councilman Arnold asked if the City of Prescott were to look toward centralization of the wastewater treatment plant in the next few years, would the Council and staff have to re-evaluate the fees. Mr. McConnell said yes, as they are also required to re-evaluate the fees every five years. Mr. Giardina continued the discussion with preliminary fees versus the fees the City of Prescott has in place. He noted that the fees that are labeled as preliminary are the maximum allowable fees. The Council is free to adopt any fee up to that amount. He noted that the new legislation said that if a police fee, for instance, were adopted, it would have to be assessed to all land use categories. He then discussed preliminary impact fee examples. Next Steps Mr. Giardini showed a schedule with everything geared toward the August 1, 2014 effective date. He said fees can be charged anytime after that date. Mr. McConnell said that the February 25, 2014 date was to consider. The adoption of the IIP and LUA, but that adoption does not commit Council to adopt a fee. Jon Paladini, City Attorney, noted that if new fees do not go into effect August 1, 2014, the old fees do not continue.