close

Council eyes utility impact fee adjustments

2 min read

City Council members were presented with the results of a water, wastewater and irrigation impact fee study by utility consultant firm Public Resources Management Group at Wednesday’s workshop session.

The city last studied the combined impact fees in 2012 and those fees have not increased for the past 10 years. Impact fee studies are required by state statute on a periodic basis.

Consultant Murray Hamilton recommended that some impact fees be lowered and others increased. Wastewater fees would decrease while potable water and irrigation fees wound increase because of the demand. Wastewater decreases would be offset by the increased to water and irrigation.

“You have to treat everyone the same on the fees, so we will minimize the amount of the increase by discounting the water and irrigation fees by approximately 6 to 7 percent,” said Hamilton. “That discount is relative to the maximum charge on all service classes.”

The new alternative impact fees will remain unchanged at $6,750 for sewer District 2, which basically consists of utility expansion areas Southwest 4, 5 and 6 and North 1-8. Since the rest of the city makes up sewer District 1 where utilities and the supporting infrastructure are available, impact fees there would be raised to a total of $6,167 for connections to all three services.

“That’s because there is no local charge to in District 1 to decrease,” said Hamilton. “The infrastructure (pumps and lift stations) is already in and fully funded.”

The changes were shown to the city’s consultant for water rate revenue sufficiency and it was deemed no impact for the water rates.

A typical residential home with dual service (potable, sewer and irrigation) is proposed to pay the $6,167 figure in District 1 and $6,750 in District 2 on new construction connections.

Utilities Director Jeff Pearson recommended that the city not increase the proposed fees further over time based upon the maximum costs identified in the study.

“I don’t recommend it because the system is financially sound,” Pearson said. “The city is required to give at least a 90-days notice before the new impact fees are to become effective. In District 1 during that 90 days we will give property owners the option to come in and pay their fees under the old rate.”

The proposed impact fee changes now goes to City Council for final consideration at an upcoming meeting. Council’s next regular meeting is on Monday, Oct. 17, in Council Chambers.