Aldermen want further discussion on impact fees
Posted on Wednesday, April 30, 2008
URL: http://www.nwanews.com/nwat/News/64678/
The Fayetteville Water and Sewer Committee met Tuesday to discuss possible impact fees — discuss being the key word.
“ I think we had more questions than answers tonight, but that’s OK, ” said Ward 2 Alderman Kyle Cook, the committee chair.
Ward 4 Alderman Lioneld Jordan said he wanted a few things deciphered for him, and Ward 3 Alderman Bobby Ferrell got nods of agreement when he said, “ A lot of this is hard reading. ”
Participants talked about definitions; the reliability of population projections for the years to come; future costs vs. existing costs; the impact of impact fees on homeowners ’ taxes; what charts meant; which city would bill for the various fees; and about using housing costs or income levels for the purposes of waiving fees that are not yet set.
At its last meeting, the committee heard from Clancy Mullen of Duncan and Associates, which conducted a study to identify the maximum impact fees that can be allowed for water and wastewater services in Fayetteville, Farmington, Elkins and Greenland.
One of the decisions facing the committee is whether to adopt the maximum fee or part of it.
The study identified $ 2, 954 as the maximum water impact fee for a single-family home in Fayetteville and $ 2, 631 as the maximum wastewater impact fee. Together, they are almost five times the current combined fees of $ 1, 143.
Different amounts were identified for the other cities in the study and in other categories, such as for businesses or irrigation.
Committee members were told Tuesday that the projects used to determine the proposed impact fee increases and the projects used for the recent rate increases do not overlap.
They were also told by Gary Dumas, director of operations, “ You can’t use impact fees to fix the old system. ”
Paul Becker, finance and internal services director for the city, told Ferrell that he thought the projects were valid capital improvements that have to be addressed.
How quickly they are addressed depends on the committee decisions, he said.
Responding to Ferrell’s comments about a “ fudge factor, ” Dumas said city staff had learned from the Wastewater System Improvement Project that was almost $ 20 million over first estimates to forecast “ a little better” on costs.
Cook said he would like the committee to discuss more specifically at the next meeting how to handle the money.
The next meeting will be held May 13 and will include other topics in addition to the impact fees.