Laserfiche WebLink
Prescott City Council Joint Special Meeting/ <br />Study Session — October 21, 2008 Page 12 <br />L. Water and Sewer Development Fees: <br />1. Adoption of Water and Wastewater Capital Improvement Plans. <br />2. Adoption of Ordinance No. 4665-0908 — An ordinance of the Mayor <br />and Council of the City of Prescott, Yavapai County, Arizona, <br />amending Title II, Chapter 2-1 and Title III, Chapter 3-14, of the <br />Prescott City Code, regarding the imposition of water and sewer <br />development fees. <br />Deputy City Manager Craig McConnell said that this item was last <br />considered on August 26, when the subject was rescheduled to today's <br />meeting to allow additional time for dialogue with construction industry <br />representatives. He said that the City engaged Economists.com, a rate <br />and impact fee expert, to look at the rates/impact fees and to do that they <br />had several objectives: 1) assure a stable financial footing for water and <br />sewer enterprises, which includes rates (existing) and monies generated <br />from impact fees or other financial tools; 2) continue quality infrastructure <br />to the City's customers; and 3) achieve the Council's goal for a first-class <br />utility system. <br />He said that Mr. Jackson has pointed out before that the cost of operating <br />and maintaining systems are rising. In May, water and sewer rates were <br />adjusted and are now in effect supporting both rising costs and <br />rehabilitation work. Part of the work has been accomplished which was a <br />fundamental purpose. He said that raising rates/fees is a difficult <br />proposition; the City is sensitive to the concept of raising rates. He said <br />that the City's ratepayers are making their contribution to the cost of <br />maintaining those systems, and this item is the second component. <br />He said that if the City is going to have a policy of encouraging <br />reasonable growth, they need to be prepared with infrastructure. In order <br />to accomplish that it requires funding from some source or financing tool. <br />He then reviewed the legal definition of impact fees. <br />He said that the process sounds simple, but it requires a 250-page report <br />and an expert that knows how to do these things because it all has to fit <br />together. A ten-year financial plan is the basis for this report, but it also <br />looks at projections well into the future to make sure that things will work <br />as well in the future years. <br />Mr. McConnell said that if impact fees are reduced, the funding is reduced <br />for new infrastructure, so the implication is that projects have to be <br />deferred or deleted. There is a relationship between the two. He said that <br />the packet information also included some numbers for building activity <br />