City Council Agenda and Packet 1992 09 01

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CO ii DIscu"ZON an IMPACT Feed, Om M%XX 03WICATIOM "D 0?MiA Cin XM4IC= Davidmm spokO of the Copy of the draft ordinance and the sum to the Kayor and Council frol the City Attorney dated Auquat 11, 1997 that they had all received. CounCH has had two Mork Sessions with the Planning Commission discussing impact team and their effects, looking at cost associated with growth, havinq the impact fees pay the costs of growth rather than in later years having the taxpayer subsidise that growth. Mayer stated viat this Comes fro* his concerns on water tap fees, budgetary issues, providi of City services in the past number of years, such as; parlor, ball field needs, or trails. Kayer stated that the last share of Karshall Lake the City purchased was purchased for approxin&tely $11,000.00. This supplies i to 1 1/2 acre feet of oats water per share. With two houses per acre loot, which translates to a cost per house of $3,500 - $5,500.00. Concerning the water treatmwr plant, tf you take the money the City borrowed plus the interest cost, the total is about $19 million. with the plant serving roughly 3,000 houses, that's a cost of about $6,000.00 per house. Totaled, the cost per house is $9 - 11,400.00 rang*. He proposed a water tap fee of $7,000.00, because there are several neighboring cities that have water tap tees of $7,000 - 0,000.00. He fait the $7,000.00 may not even be enough. Zither the people causing the growth will pay for it or we'll pay for it 10 - 20 years frog now. Howard had told Councilman Mayer that $7, 000.00 was such too cheap. If the City doesn't make up its debt ratio through the tap fee process, then the City has to increase its water rates. by saklnq a tap foe change vs. just increasinq the costs on the eater bill each month, the older part of town will remain cost effective in housing stock. Howard questioned the City Attorney about the limiting of the fees to the 3/4 tap. Susan Griffiths, City Attorney, explained that in order to rails only the 3/4 tap, there has to be acmw reasonable basis for increasing only that tap and not the other taps. Kayer: I think the 3/4 tape primarily residential, is the one that puts the greatest peak demand on the system. Mainly, the summertime watering of lawns. If we had average water da wnds, we probably would not have to build a new water treatment plant until well past the year 2000. In examining our fee structure, th* larger users are already paying higher rates. It's not my intent to discriminate 12