City Commission Workshop: Impact Fees

APPROVED 10/23/2025 MINUTES City Commission Workshop: Impact Fees 6:00 PM - Monday, September 29, 2025 - City Hall Call to Order: 6:00 p.m. Acknowledgement of Quorum and Proper Notice PRESENT: Commissioner Michael Holland, Commissioner Emily Lee, Commissioner George Asbate, Vice Mayor Gary Ashcraft, Mayor Willie L. Hawkins 1. Workshop Item with Discussion, Public Input and Direction 1.1 Impact Fee Presentation by Raftelis Lori Carr, Finance Director, explained that they are required to hold two workshops on the impact fees. She indicated this would be the second extraordinary circumstance workshop. She introduced Michelle Galvin with Raftelis to provide the presentation . Michelle Galvin, Raftelis, stated the City is considering increasing the impact fees for police, fire, parks and recreation, library, water and wastewater. She explained the extraordinary circumstances pertaining to the police and fire impact fees as follows: 1) The City anticipates considerable growth over the next ten years; 2) With that growth, the City will need to invest significantly in its police and fire facilities; and 3) Inflationary cost increases on capital improvements. She stated their recommendation that the City adopt the calculated fees for police and fire and phase-in the remaining fees. She reviewed the impact fee study objectives and explained what the fees can and cannot be used for. She explained the impact fee methodology utilized and noted the recommendation that the City reduce its number of non-residential classes from 40 to 8. Ms. Galvin reviewed the current investment and planned future investments for each of the proposed impact fees including police, fire, parks and recreation, and library services . She reviewed the recommended impact fees for each and summarized the total impact fees for those services. Ms. Galvin then reviewed the water and wastewater current investment and planned future investments. She cited the proposed utility fees and stated their recommendation for those increases to be phased in. She then presented a comparison of the City's current and proposed fees with other area cities and counties. She stated the next step is the second reading of the ordinance. She summarized that the impact fees will help to align the cost of expansion as it relates to capital improvements related to new development, commonly known as growth paying for growth. The impact fee study uses recent and local data and generally follows a conservative impact fee calculation approach . By adopting the impact fees, the City is making a commitment to the projects as outlined in the study or similar projects that would provide the same benefit. She stated the Commission should consider adopting the impact fees as presented. Vice Mayor Ashcraft asked what the planned expansion is for the water and wastewater system . Eustis City Commission Page 1 of 2 September 29, 2025  Tom Carrino, City Manager, explained that the City has a number of planned projects in the five and ten year plan, some of which involve expansion of capacity but there are also some that qualify for impact fee funding that involve enlarging transmission lines or improving quality. He cited some of those projects. Vice Mayor Ashcraft asked if when the City's system reaches a certain capacity they are mandated to expand. Rick Gierok, Director of Engineering, responded that once they reach 80% of capacity, they are mandated to begin planning for expansion. He then commented on the City's 180 Utility District. He reported they are currently running at 22% of capacity but if the two large, planned projects come online, they will be at 80%. He stated they wouldn't have to expand but could tell people they are out of capacity. He confirmed that he would not move forward with any projects without bringing them to the Commission. He added that if any developer wants to extend the lines, the City can increase the size of the lines at only the cost of materials. Vice Mayor Ashcraft asked about U.S. Water with Mr. Carrino responding that their core business is not consulting. However, staff has been working with them, and they will be bringing information back to the Commission. Vice Mayor Ashcraft asked how long before they hit the 80% with Mr. Gierok estimating seven or eight years. Mayor Hawkins opened the public hearing at 6:15 p.m . Jennifer Pryor, Executive Director of the Home Builders Association of Lake-Sumter, stated their request that the police and fire fees be phased in as the others are being done. She noted they had submitted a statement letter for the Commission's review and submitted a copy to the Deputy City Clerk. Danielle Stroud, Habitat for Humanity of Lake and Sumter, cited the effect of the impact fees on affordable housing. She asked that they consider an impact fee waiver program to assist with the development of affordable housing. She cited several families that were recently able to build homes within the City through Habitat. The public hearing was closed at 6:20 p.m. Vice Mayor Ashcraft questioned why it took 20 years to address the impact fees. Discussion was held regarding why it wasn't done sooner with Commissioner Holland citing previous Commissions that put in building moratoriums and other Commissions that kept the fees low to try and encourage development. Discussion was held regarding a possible impact fee waiver program for infill development. 2. Adjournment: 6:23 p.m. *These minutes reflect the actions taken and portions of the discussion during the meeting. To review the entire discussion concerning any agenda item, go to www.eustis.org and click on the video for the meeting in question. A DVD of the entire meeting or CD of the entire audio recording of the meeting can be obtained from the office of the City Clerk for a fee . ~ CHRISTINE HALLORAN City Clerk Eustis City Commission Page 2 of2 September 29, 2025