On January 23, 2018, the City Council adopted the 2017 land use assumptions, capital improvements plan, and maximum assessable fees by adopting Ordinance No. 23084-01-2018 (M&C G-19207). The maximum assessable impact fee for a development represents the actual cost of expanding the arterial street network to serve development within that service area. Those maximum assessable rates are also called the Schedule 1 rates. Instead of requiring that development fund the entire cost of new transportation facilities, the City Council has opted generally for a reduced, "smoothed" collection rate across the City. These collection rates are also called the Schedule 2 rates. This first ordinance amends Schedule 2, the transportation impact fee collection rates, to maintain the current fees, which were adopted in 2013, but necessarily pegs those rates to the Schedule 1 Maximum Assessable Rates adopted on January 23, 2018. This ordinance will be effective April 1, 2018 through December 31, 2018. After discussions with the affected development community, Staff recommends Option C of the five collection rate options presented for the City Council's review on January 9, 2018. Option C increases the current collection rate fees by 25 percent to account for construction cost inflation for both residential and non-residential uses on a smoothed basis across all service areas. In order to allow the development community time to adjust to the higher rates, collection of Option C's rates will be deferred until January 1, 2019. The second ordinance establishes these collection rates and will be effective on January 1, 2019 and remain in place until subsequently amended. An increase in the collection rates will provide a larger funding source for arterial network expansion necessary to serve new development and alleviate some of the demand on bond funding for such network expansions. This M&C does not request approval of a contract with a business entity. |
