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Regular Meeting October 14, 2002 116. Page 3 Mr. O'Leary stated the Council discussed impact fees in September and set Public Hearings for tonight and the next meeting. Mr. O'Leary stated he would review the water and wastewater systems. The question posed is who should pay for growth; new development of customers. These impact fees can give the City an opportunity to control where development will occur. Mayor Habingreither opened the public hearing. 1) Dianne Wassenich stated she was passionate about impact fees. She stated in the past citizens passed bonds to pay for clean water and utility funds paid for these bonds. She stated impact fees need to be collected or the citizens will have to pay for them. 2) Mary Gonzales thanked the Council for their hard work. She stated she lives in the Southeast end of San Marcos and feels Bastrop Lane could not handle more traffic. No one else wished to speak, so Mayor Habingreither closed the public hearing. Ms. Narvaiz inquired if $2,000 for impact fees the Council adopted is enough. Mr. O'Leary stated the City cannot absorb any additional debt. He stated if fees continue at the current rate the City will have to do things piece by piece and will not have control over where new development and growth takes place. Ms. Narvaiz asked Staff to provide Council with a chart showing the approved impact fee rate with projected growth. She requested the chart also show projects, which need to be done, and what else can be done. Mr. Mihalkanin stated presently everyone is paying for the cost of development and eventually rate increases will be needed. Mayor Habingreither stated he would like to know how many service units are in the City and how many facilities do not have water/wastewater services. Laurie Anderson, Director of Engineering, stated currently there are 16,123 water and wastewater units. She stated if the City keeps growing at the same rate, in ten years she predicts the City would need to add 3,744 water units and 4,559 wastewater units. Mayor Habingreither inquired how many City residents are not getting water and wastewater services because they do not have access to tie in. He stated he would like one chart to include the Southwest annexation area and another without the Southwest annexation area. Ms. Tatum inquired how this would discourage infrastructure. Mr. O'Leary stated he feels the developers will develop in the areas most advantageous for their developments. Ms. Narvaiz asked if impact fees could be different based on the areas the City wants to encourage growth in. Mr. Mark Taylor stated the impact fee statute does allow the City to divide based upon different characteristics, but the Council cannot intentionally raise development costs without equating it to the cost of providing services. Mr. Taylor inquired as to refinancing debt while interests are low. Rodney Gonzales, Director of Finance, stated debt cannot be refinanced until ten years from the date bonds were issued. He also stated the earliest these bonds may be refinanced is 2005. Mr. Mayhew stated he would like to see a phasing of fee increases with completion of some of the projects. Mr. Mihalkanin stated he would like staff to divide the City into impact fee areas with sufficient cost differentials. Mayor Habingreither stated he thinks the fee increase is premature. He also requested Staff to place the presentation, which was presented, tonight on the City website. Mayor Habingreither introduced for consideration a public hearing and approval of an Ordinance on first reading, the caption which was read as follows: