Plan to phase in impact fees considered
Posted on Wednesday, May 14, 2008
Water and wastewater impact fees will be phased in over three years if a proposal made Tuesday at the Water and Wastewater Committee meeting is adopted by the Fayetteville City Council in weeks to come. Ward 4 Alderman Lioneld Jordan suggested that the city phase in impact fees over three years, reviewing and adjusting at the end of each year. "That way you gradually move everything into it and it's not such a shock," said Jordan, whose idea was greeted with voiced - though not voted - approval.
A study conducted by Duncan and Associates identified $ 2, 954 as the maximum water impact fee for a singlefamily home in Fayetteville and $ 2, 631 as the maximum wastewater impact fee. That translates to a maximum total fee of about $ 5, 585 for each new single-family home. Fayetteville's current water and wastewater impact fees are $ 1, 143 combined. Jordan suggested adding $ 720 to the current fees, which would be a charge of $ 1, 863 for a single-family home in the first year of an impact fee increase. That amount is about onethird of the maximum total fee identified in the study.
"The Water and Sewer Committee will review it every year, and you decide to raise it or not raise it," Jordan said. "That way you have control and can adjust it according to the market."
"The bottom line is bring it over a three-year period to this maximum number and review it each year," said committee Chairman Kyle Cook, to which Jordan agreed.
Impact fees in other categories, such as multifamily dwellings, commercial buildings and water for irrigation, would go up in a similar percentage if the proposal is approved.
Single-family homes were the base unit in the study.
"We're going to have to tweak the figures probably "Jordan said. "I just busted it up over three years."
Ward 3 Alderman Bobby Ferrell, who generally opposes impact fees, told Jordan," You've got something there to shoot at."
The committee did not take action on the proposal, but members asked staff to provide a chart of what the rates would be if Jordan's suggestion was followed.
Committee members also agreed by voice to a one-sizefits-all method of applying fees, such as for each house, rather than basing fees on square footage.
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