HomeMy WebLinkAbout01-14-19 City Commission Packet Materials - A5. Wastewater Impact Fee Study Presentation - SUPPLEMENTAL MATERIALS1
Water and Wastewater Impact Fees
City of Bozeman, Montana
Impact Fee Background
The Basis for Impact Fees and Related Criteria
Have Been Developed Under Montana Code and
Case Law
Dual Rational Nexus
Relate Capital Needs to Growth
Relate Capital Expenditures to Growth
Revenue-Producing Ordinance
Maintain Separate Accounting
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Impact Fee Background (Cont.)
Impact Fees Should be Based on the Capital
Cost Requirements Anticipated for Providing
Service to New Development
Impact Fees Should be Based Upon Reasonable
Level of Service Standards that Meet the Needs
of the City
Impact Fees Should Not be Used to Fund
Deficiencies in Capital Needs of the City or Pay
for Any Operating Costs
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Impact Fee Background (Cont.)
Funding Utility System Growth With Impact Fees
Reduces the Need for Borrowing by Providing an
Additional Capital Funding Resource
“Growth Pays for Growth”
Proper Impact Fee Levels Reduce the Burden of
Expansion Costs on Existing Rate Payers; However,
Fees Cannot Create a Windfall to Existing Users
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Impact Fee Background (Cont.)
Montana Impact Fee Code
Montana Legislature Created Title 7, Chapter 6, Part 16
of the Montana Code Governing Impact Fees
―Requires the Calculation of Impact Fees to be Based on the
Proportionate Share of Cost of Infrastructure to Serve New
Development
―Recognizes Other Available Funding such as Grants
―The Fee cannot include Cost of Correcting System
Deficiencies nor the Cost of Operation and Maintenance of
the Facility
―New Development Cannot be Held to a Higher Level of
Service
―Provides for Accounting and Reporting of Impact Fee
Revenues and Expenditures in a Separate Fund
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Utility Impact Fee Study Tasks
Provide the Basis for Proposed Impact Fees for
Water and Wastewater Utility Services
Review and Categorize Existing Fixed Assets
Review and Categorize Proposed Capital Plan
Analyze Water and Wastewater System Capacities
Examine Historical and Projected System Flows
Evaluate Existing Levels of Service
Develop Proposed Impact Fees
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Major Assumptions
City Currently Has $429.1 Million in Water and
Wastewater Utility Assets
$196.1.0 Million Excluded from Fee Calculations as
Misc. Equipment, Non-Backbone Distribution and
Collection Lines
City Projects $159.6 Million in Water and
Wastewater Capital Improvement Projects
$155.6 Million Included in Fee Calculation
($14.7) Million in Assumed Existing Asset Retirements
$138.9 Million Net Increase in Assets Include in Fee
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Major Assumptions
Water Treatment Capacity and Flow
Water Plant Capacity – 25.744 MGD MDF
Maximum Daily Flow – 12.259 MGD MDF
Available Capacity for Growth – 53.29%
Water Level of Service – 222 Gallons Per Day
Wastewater Treatment Capacity and Flow
Wastewater Treatment Capacity – 8.500 MGD ADF
Average Daily Flow – 5.118 MGD MDF
Available Capacity for Growth – 39.78%
Wastewater Level of Service – 144 Gallons Per Day
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Existing to Proposed Residential ERUs
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Residential Service Existing ERUs Proposed ERUs
Residential (Square Feet of
Living Area)
Usage
(ADF) ERUs
Usage
(ADF) ERUs
1400 or less 117.42 0.49 159.62 0.70
1401-1600 150.48 0.62 201.76 0.89
1601-1800 180.12 0.74 213.11 0.94
1801-2000 206.34 0.85 227.09 1.00
2001-2200 230.28 0.95 243.03 1.07
2201-2400 251.94 1.04 256.61 1.13
2401-2600 271.32 1.12 270.27 1.19
2601-2800 289.56 1.20 273.93 1.21
2801-3000 306.66 1.27 288.10 1.27
3001 or more 316.92 1.31 306.66 1.35
Group Quarters per person 114.00 0.47 101.38 0.45
Existing Fees - Water
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Residential (Square
Feet of Living Area)
Water Plant
Fee Per Unit
Distribution
System Fee
per Net Acre
1400 or less $1,118.48 $4,224.47
1401-1600 $1,432.91 $4,224.47
1601-1800 $1,714.85 $4,224.47
1801-2000 $1,965.46 $4,224.47
2001-2200 $2,192.87 $4,224.47
2201-2400 $2,399.40 $4,224.47
2401-2600 $2,583.88 $4,224.47
2601-2800 $2,757.91 $4,224.47
2801-3000 $2,920.35 $4,224.47
3001 or more $3,018.97 $4,224.47
Group Quarters per
person $1,085.99 $4,224.47
Proposed Fees – Water
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Residential (Square
Feet of Living Area)
Water Plant
Fee Per Unit
Transmission
System Fee
Per Unit
Total Impact
Fee Per Unit
1400 or less $740 $1,141 $1,881
1401-1600 $941 $1,450 $2,391
1601-1800 $994 $1,532 $2,526
1801-2000 $1,057 $1,630 $2,687
2001-2200 $1,131 $1,744 $2,875
2201-2400 $1,195 $1,841 $3,036
2401-2600 $1,258 $1,939 $3,197
2601-2800 $1,279 $1,972 $3,251
2801-3000 $1,343 $2,070 $3,413
3001 or more $1,427 $2,200 $3,627
Group Quarters per
person $475 $733 $1,208
Proposed Fees – Water (cont.)
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Non-residential
(Per Meter Size)
Water Plant
Fee Per Meter
Transmission
System Fee
Per Meter
Total Impact
Fee Per Meter
¾” Meter $1,586 $2,445 $4,031
1” Meter $2,643 $4,075 $6,718
1 ½” Meter $5,287 $8,150 $13,437
2” Meter $8,460 $13,040 $21,500
3” Meter $15,863 $24,450 $40,313
Above 3” Meter
Calculated
based on $4.76
per gallon
Calculated
based on $7.34
per gallon
Calculated based
on $12.10 per
gallon
Existing Fees - Wastewater
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Residential (Square
Feet of Living Area)
Water
Reclamation
Fee Per Unit
Collection
System Fee
per Net Acre
1400 or less $440.89 $4,716.42
1401-1600 $565.04 $4,716.42
1601-1800 $676.43 $4,716.42
1801-2000 $775.05 $4,716.42
2001-2200 $864.39 $4,716.42
2201-2400 $945.60 $4,716.42
2401-2600 $1,018.70 $4,716.42
2601-2800 $1,087.15 $4,716.42
2801-3000 $1,150.97 $4,716.42
3001 or more $1,190.42 $4,716.42
Group Quarters per
person $428.13 $4,716.42
Proposed Fees – Wastewater
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Residential (Square
Feet of Living Area)
Water
Reclamation
Fee Per Unit
Transmission
System Fee
Per Unit
Total Impact
Fee Per Unit
1400 or less $718 $415 $1,133
1401-1600 $913 $528 $1,441
1601-1800 $964 $558 $1,522
1801-2000 $1,026 $593 $1,619
2001-2200 $1,098 $635 $1,733
2201-2400 $1,159 $671 $1,830
2401-2600 $1,221 $706 $1,927
2601-2800 $1,241 $718 $1,959
2801-3000 $1,303 $754 $2,057
3001 or more $1,385 $801 $2,186
Group Quarters per
person $461 $267 $728
Proposed Fees – Wastewater (cont.)
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Non-residential
(Per Meter Size)
Water
Reclamation
Fee Per Meter
Transmission
System Fee
Per Meter
Total Impact
Fee Per Meter
¾” Meter $1,539 $890 $2,429
1” Meter $2,565 $1,484 $4,049
1 ½” Meter $5,130 $2,969 $8,099
2” Meter $8,209 $4,750 $12,959
3” Meter $15,392 $8,907 $24,299
Above 3” Meter
Calculated
based on $7.13
per gallon
Calculated
based on $4.12
per gallon
Calculated based
on $11.25 per
gallon
Recommendations and Conclusions
Adopt Proposed Impact Fees
Review Fees Periodically (Every 3-5 Years)
Development Trends
Capital Needs
Cost Allocation Process
Maintain Separate Accounting for Collection and Usage
of Fees
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Discussions & Questions