Plan to phase in impact fees considered
Posted on Wednesday, May 14, 2008
URL: http://www.nwanews.com/nwat/News/65167/
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.