DATE: December 6, 2016
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Mark Hilty, Water Management Director
SUBJECT:
title
Discussion of Water and Sanitary Sewer Impact Fees
body
Purpose
The purpose of this memorandum is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning water and sanitary sewer impact fees.
Background
Sanitary sewer and water impact fees are intended to fund projects related to capacity and replacements and upgrades of existing infrastructure. The last update to impact fees occurred in 2008 which added a flat 10% increase to all impact fees. In 2011, staff worked with Jackson Thornton to develop an update to the fees however due to the economic landscape at the time, these proposed fees were never finalized. Jackson Thornton and City Staff have updated this study which is detailed in the attached presentations.
In addition to the fees themselves, staff is also advocating a change to the methodology in which the fees are applied. The current fee structure is based on meter size which among other considerations, limits the City’s ability to apply equitable fees. Staff is proposing a structure that assesses fees based on projected demands of the development, instead of meter size. In doing so, the fees are directly related to the capacity requirements of the development, which in turn, ties directly into the City’s planning efforts and capital expenditures.
Financial Impact
At this time, there is not a quantifiable financial impact. This will be determined at a later date once guidance is received by the BOMA.
Recommendation
rec
At this time, staff has no specific recommendation.