CC - Agendas - City Council - REGULAR - 10/23/2012

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ATTACHMENT A City of Prescott,AZ Development of Impact Fees Infrastructure Improvement Plan ,,,,, PRE S OlT' A-3 and Associated Documents&Analysis and Development Of:'Drily Rates development that are included in the development impact (EDU)equal to one single-family detached dwelling unit fee for the same category. with equivalency ratios to other development types such Offsets will be developed for growth-related as residential, multi-family(where appropriate), improvements anticipated to be funded through tax-based commercial and industrial developed in Task 1. revenues generated from new development. Task 9 - Conduct Funding Cash Flow We will work with City Staff to: Analysis Evaluate offsets for growth-related revenue such as A cash flow analysis for each fee category will be excess transaction privilege tax(TPT)tax, and other finalized incorporating debt funding,estimates for growth-related revenue used towards growth-related development impact fee revenues and development capital projects will be taken into consideration for the impact fee credits and offsets, estimated costs for calculations for the ten-year study period. anticipated growth-related projects,and repayment of existing and future growth-related debt. If potential cash Incorporate City summary of existing development short falls are identified,we will work with City Staff to agreements that includes contributed facilities subject adjust financing assumptions or incorporate alternative to future development impact fee credits or funding sources. The adjusted funding sources may reimbursement. affect credits developed in Task 8 requiring modifications to the maximum supportable fee. Task Discuss Preliminary Task 10 - Utility ate Update Methodologies & Policy Options Based on the review of key data,discussion with City As we are working with City Staff to review and update development impact fees,we will also complete an Staff and subsequent evaluations the Red Oak Team will update of the City's water and wastewater utilities. summarize current service level standards and existing and projected capacity requirements by fee category and We will employ a six-step approach to develop annual service area in a technical memorandum.We will develop utility revenue requirements and complete separate class a separate summary of facility cost estimates and growth- cost-of service analyses, completing the following related projects to be used in the development impact fee activities: analysis. The Red Oak Team will recommend the Projected water and sewer demands and review of development impact fee methodology and approach by fee category as the basis for calculations in Task 8. current customer class designations. Budgeted and historical water and sewer O&M and Task 7 - Prepare IIP capital costs including allocated fleet replacement In this task we will prepare the IIP by fee category costs. summarizing the evaluations and recommendations in Identify non-growth related capital costs to be funded compliance with the requirements of ARS§9-463.05. The through user charges separating the growth-related land use assumption, service level evaluations and capital project expenses evaluated in Task 4. additional IIP components will be incorporated in the calculated development impact fees and finalized in the Develop a ten-year cash flow analysis for projected draft and final reports completed in Task 11. annual water and wastewater expenses and revenues.Adjustments to user charges and Task Complete Development Fee alternative funding sources will be evaluated during Methodology alcul tions this task. We will calculate development impact fees based on the Water and sewer class cost-of-service analysis. recommended approach per fee category and service area in compliance with ARS§9-463.05. Fees by A survey of up to five(5)water and wastewater user category and/or service area will be finalized based on fees,funding mechanisms and alternative revenue level of service standards per equivalent dwelling unit programs will be developed. eaa�star • ' RED i)N 1 l E 0u ' Pathways to Lasting Solutions ARCAD