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64. Regular Meeting September 23, 2002 Page 4 Mayor Habingreither introduced for consideration a public hearing and approval of an Ordinance on first reading, the caption which was read as follows: AN ORDINANCE AMENDING CHAPTER 86, UTILITIES, OF THE CITY CODE BY REPEALING DIVISIONS 4 AND 5 OF ARTICLE 3; AMENDING IMPACT FEES FOR WATER AND WASTEWATER FACILITIES; ADOPTING UPDATED LAND USE ASSUMPTIONS AND AN UPDATED IMPACT FEE CAPITAL IMPROVEMENTS PLAN; AMENDING IMPACT FEE SERVICE AREAS FOR THESE FACILITIES; PROVIDING FOR COLLECTION AND ASSESSMENT OF IMPACT FEES; PROVIDING FOR OFFSETS AND CREDITS AGAINST IMPACT FEES; PROVIDING FOR ACCOUNTS FOR IMPACT FEES AND USE OF FUNDS IN THESE ACCOUNTS; PROVIDING FOR APPEALS, RELIEF PROCEDURES AND EXEMPTIONS; PROVIDING FOR FUTURE UPDATES; PROVIDING FOR AGREEMENTS FOR CAPITAL IMPROVEMENTS; INCLUDING PROCEDURAL PROVISIONS; AND PROVIDING FOR PENALTIES. Mayor Habingreither opened the public hearing and asked if anyone wish to speak. 1) Ray Kotowski stated the increases proposed in this impact fee are shocking. He inquired whether the newly annexed area will have to pay, since they do not have sewer yet. 2) Dianne Wassenich stated the impact fee for connecting water in Martindale is $2,000. No one else wished to speak, so Mayor Habingreither closed the public hearing. Mr. Mayhew moved for the approval of the Ordinance on first reading and Ms. Narvaiz seconded the motion. Ron Patterson, Director of Planning, stated the State Legislature in 2001 required impact fees be updated, brought into compliance and certified by September 30, 2002. He also stated these impact fees will be charged at the time of the builder's permits. Mr. Patterson stated impact fees cannot be charged for maintenance on existing systems; they can only be charged to new developments. Prior to 1990 the impact fees were $1,100 for water and $900 for wastewater. In 1989 Legislation standardized the fees, which reduced fees from $2,000 to $890. Mr. Patterson stated Laurie Anderson, Director of Engineering, came up with the anticipated growth of population and land use within the City's water and wastewater area for ten years and then cost of capital improvements for new growth, which is $9,200.00 at 50% equals $4,600.00. He stated the Council can set these fees anywhere from 0 to $4,600.00. He also stated the Planning and Zoning and Capital Improvements Advisory Committee recommended $4,600.00. These recommended fees are $2,466 for water and $2,185.00 for wastewater per service unit; both with reductions or exemptions for affordable housing. Mayor Habingreither inquired whether these proposed impact fees are the highest in the region, and Mr. Patterson stated yes, if the fees are adopted at $4,600.00. Mr. Taylor inquired whether 1/3 of the water bill goes to Debt Service now. Mr. Patterson stated yes, a third of the water bill goes to Debt Service. Mr. O'Leary stated the City has very little room to take on additional debt without increasing the water and wastewater rates. Mr. Taylor stated he would be more in favor if Council would waive fees for the development of homes in the range of $60,000 to $100,000. Mr. O'Leary stated the Council has the option of putting together development incentives to provide for affordable housing. Ms. Narvaiz stated she was concerned with the City holding three