CC - Minutes - City Council - 8/29/2006

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Prescott City Council Regular Voting Meeting—August 29,2006 Page 15 �r The Planned Growth Strategy and Parks Master Plan were being done in the FY2007 budget and would become available in 12-24 months and staff would look at the impact fees again at that point. Speakers: Ethan Edwards, Yavapai County Contractors Association, 126 Marina Street, thanked staff for an easily understood report. He made the following points: • Have low property taxes and income taxes. • State funds things through sales taxes. • When you go to a store you pay tax and it is kept there. When construction is done,taxes go to the point of the building being built. • No price study had been done and at what point do people choose not to buy here. • When people don't build, the City doesn't get the building permit fees or the impact fees. The City was looking at increasing building permit fees from 40-50%and then would be looking at sewer rates. Mayor Simmons explained the City Manager was only recommending the Police and Fire impact fees be increased at this time, which was approximately$1,100. Mr. Edwards continued it didn't say in the report the Council would only be looking at Police and Fire impact fees; that if someone decided not to build here the City would lose at least$34,000; sewer impact fees would also be looked at and without high paying jobs in this area, people would be hiring unlicensed and non-bonded contractors who undercut the licensed and bonded contractors; growth could pay for growth with the transaction privilege tax; impact fees have to be for growth related buildings, such as building an additional fire station; non-residential fees had not been levied up to know but if they were it could cost Lowe's an additional $100,000 and they might decide not to proceed with their business plans; increases need to be directly related to the project the City wanted to do;and keep the public informed. Manager Steve Norwood explained Prescott Valley was also going through this process as well and would have a public hearing on Thursday; Prescott Valley was at$2,700 not including water and sewer; Prescott was at$2,300 and Prescott Valley was recommending increases to$7,900, and Prescott's maximum would be to$6,000. Mr. Edwards added the County fees were $1,200 and the Verde Valley ,,, was$1,100.