HomeMy WebLinkAboutOffice Memo - IFAC Meeting CIP 2016 12 1finalDATE: November 28, 2016
TO: Impact Fee Advisory Board
FROM: Anna Rosenberry, Administrative Services Director
Craig Woolard, Public Works Director
SUBJECT:
Recommendations to the Commission for the Impact Fee Capital Improvement Plan (CIP) Schedules for Fiscal Years 2018-2022
_________________________________________________________________________
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Once again, Impact Fee Advisory Board needs to make recommendations on the Capital Improvement Plan for the upcoming budgeted expenditure of Impact Fee money for:
Water
Impact Fee Fund
Wastewater Impact Fee Fund
In updating the schedules, we have the opportunity to remove items that have been completed or are no longer needed, adjust project costs
estimates, and add projects that are needed. We drop the current fiscal year (FY17) from the plan and extend the plan by a year, to encompass FY22.
Water Impact Fee Fund – Attached
is a draft Water Impact Fee CIP. We believe this schedule is complete and ready for the Committee to discuss and made recommendations to the Commission.
Items of Note:
The scheduled
projects now include more of the projects identified in the Integrated Water Resources Plan (IWRP).
Three projects require borrowing in the 5-year horizon totaling $20.8 million (WIF32,
WIF 35, and WIF40.) The borrowing will need to be backed by the Water Utility – and may have implications for rates charged to customers. Borrowing for these projects begins in FY20.
There
are a significant amount of unscheduled capacity-expanding projects proposed that cannot be supported by the existing levels of impact fee revenues.
Revenue estimates for Water Impact
Fees have been updated with the 5-year average collection amount, detailed on the following page. We have not included
any potential financial effects of the fee study that will be underway in the coming months. Revenues have grown on average by 25% per year, over the past 5 years. Revenues have grown
by an average of 11% per year, over the past 3 years. For the CIP, we have used the 5-year Average collection, plus 5% growth each year from FY18 to FY22.
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Revenue History - Water
Impact Fees
Fiscal Year
Revenue
Change
2012
$1,060,000
-
2013
$1,726,000
63%
2014
$1,833,000
6%
2015
$1,663,000
-9%
2016
$2,262,000
36%
5-Year
Average
$ 1,708,800
25%
Wastewater Impact Fee Fund – Attached is a staff-recommended Wastewater Impact Fee CIP. We believe this schedule is complete and ready for
the Committee to discuss and made recommendations to the Commission.
Items of Note:
Two projects require borrowing in the 5-year horizon totaling approximately $7.5 million (WWIF11, WWIF20.) The borrowing will need to be backed by the Wastewater Utility
– and may have implications for rates charged to customers. Borrowing for these projects begins in FY19.
Revenue estimates for Wastewater Impact Fees have been updated with the 5-year
average collection amount. We have not included any potential financial effects of the fee study that will be underway in the coming months. Revenues have grown on average by 16%
per year, over the past 5 years. Revenues have grown by an average of -3% per year, over the past 3 years. For the CIP, we have used the 5-year Average collection, plus 5% growth
each year from FY18 to FY22.
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Revenue History - Wastewater Impact Fees
Fiscal Year
Revenue
Change
2012
$989,000
48%
2013
$1,405,000
42%
2014
$1,140,000
-19%
2015
$1,052,000
-8%
2016
$1,232,889
17%
5-Year Average
$1,163,777
16%
In conclusion, we’ll be looking to discuss these numerous policy items with the Committee so that we can recommend draft Capital Improvement Plans. Once approved by the Committee,
we will deliver them to the City Commission.
We have tentatively scheduled:
December 5 – City Commission presentation and adoption of Street & Fire Impact Fee Capital Improvement Plan
**CHANGED from previous MEMO**
December 12 – City Commission presentation and adoption of Water & Wastewater Impact Fee Capital Improvement Plans
Attachments:
Draft – Water Impact
Fee CIP – FY18-22
Draft - Wastewater Impact Fee CIP - FY18-22