Finance Committee

CITY OF OCONOMOWOC ELECTRONIC MEETING PROCEDURE Finance Committee – Tuesday, December 1, 2020 – 7:00 PM The City of Oconomowoc will be holding this meeting both in person at City Hall and virtually via Webex Instructions on joining the meeting virtually: 1. Please click on this meeting link: https://oconomowoc.webex.com/oconomowoc/onstage/g.php?MTID=e3dce0cb7b03132a4757 d7f1ef52ca4e0 2. Fill out your information: First Name, Last Name, Email Address. If the meeting hasn’t started, please try refreshing the page. 3. Click Join by browser 4. Click on the Phone Icon to connect to your computer’s audio or to show a dial in number. Public comment via Webex: When applicable, public comment can be requested by clicking the three dots on screen and selecting Raise Hand. You will be called upon and unmuted for your comment. **NOTICE: The City Webex Licensing allows up to 200 participants for an electronic meeting. In the event that the City logs in 197 participants, we will assume that there are more people that want to participate than we are currently licensed for. In that situation, the City must cancel the meeting and reschedule after the City has obtained additional licensing to accommodate the increased public audience.  City of Oconomowoc Finance Committee Aldermen: Rosek, Chairman / Ellis, Secy / Spiegelberg Tuesday, December 01, 2020 - 7:00 PM City Hall - Council Chambers 174 E. Wisconsin Ave. Oconomowoc, WI 53066 (or immediately following Committee-Of-The-Whole) Notice: If a person with a disability requires that the meeting be accessible or that materials at the meeting be in accessible format, call the City Clerk at least 48 hours prior to the meeting to request adequate accommodations. Tel: (262) 569-2186. 1. Call to order and confirmation of appropriate meeting notification 2. Committee Business a. Consider/recommend Ordinance 20-O993 to Amend §27.09(1)(a)(Table 1); (9)(b) & (c)(Table); (10)(b) & (c)(Table); and (12)(b)2 & 3(Table) of the City of Oconomowoc Municipal Code Relating to Impact Fees b. Consider/recommend Ordinance 20-O994 to Amend §13.62(3)(a)1(Table 1) of the City of Oconomowoc Municipal Code Relating to Sewer Availability Charges 3. Adjourn ________________________________ Diane Coenen, City Clerk City of Oconomowoc Notice is hereby given that a majority of the Common Council will be present at the above scheduled meeting to gather information about a subject over which they have decision-making responsibility. This constitutes a meeting of the Common Council pursuant to State ex rel. Badke v. Greendale Village Board, 173Wis. 2d 553, 494 N.W. 2d 408 (1993) and must be noticed as such, although the Common Council will not take any formal action at this meeting. 1  MEMORANDUM DEPARTMENT Date: November 23, 2020 To: Finance Committee, Common Council and Mayor Magnus From: Laurie Sullivan, Finance Director Re: Ordinance changes to allow for Impact Fee Indexing RELATES TO THE STRATEGIC PLAN Strategic Goal- II. Improve and Maintain our Infrastructure/Facilities V. Enhance the Effectiveness of our City Government D. Maintain/Improve the City’s financial Sustainability BACKGROUND The City’s ordinances allow indexing of impact fees to keep amounts current for inflation and increases in costs. The City last indexed impact fees in 2020. ADDITIONAL ANALYSIS The following charts outline the current fees for 2020, and the 2021 fees adjusted for the applicable index increases: City Impact Fees 2020 2021 Highways & Other Transportation Facilities Impact Fees (CCI .0126) Residential dwelling unit $382 $388 Commercial/Institutional per sq. ft. $1.418 $1.442 Industrial per sq. ft. $0.375 $0.381 Law Enforcement Facilities Impact Fee (CCI .0126) Single-family/duplex residential dwelling unit $418 $425 Multi-family residential dwelling unit $279 $284 2020 2021 1 2  Commercial/Institutional per sq. ft $0.577 $0.587 Industrial per sq. ft. $0.111 $0.113 Parks, Playgrounds & Other Recreational Facilities Impact Fee (CCI .0126) Per residential dwelling unit $2,831 $2,878 Per resident at maximum occupancy for institutional residential development $944 $960 Per residential dwelling unit where 1,500 sq. feet of land is dedicated for $1,615 $1,642 public parks as a condition of land subdivision (credit up to $1,216) Per resident at maximum occupancy for institutional residential development $457 $465 where 600 sq. feet of land is dedicated for public parks as a condition of land subdivision (credit up to $487) Utility Impact Fees North Interceptor (adjusted by average annual LGIP rate – .0236) ⅝ or ¾ inch $2,110 $2,129 1 inch $7,852 $7,924 1 ½ inch $18,883 $19,055 2 inch $31,363 $31,648 3 inch or larger (per residential equivalent connection – REC) $2,110 $2,129 FINANCIAL IMPACT City Impact fees are adjusted annually by the Construction Cost Index (CCI), Utility fees are adjusted by the September Local Government Investment Pool rate (LGIP). For the 2021 rate adjustment the following indexes were used: CCI adjustment is 0.0166, the LGIP adjustment is 0.00906 RECOMMENDATION Recommend approval of the 2021 indexed adjusted to the impact fees. SUGGESTED MOTION Motion to approve ordinance to index the impact fees as outlined. 2 3  Ordinance No. 20-O993 AN ORDINANCE TO AMEND §27.09(1)(a)(Table 1), §27.09(9)(b) AND (c) (Table), §27.09(10)(b) AND (c) (Table), §27.09(12)(b)2 and 3 (Table), ALL RELATING TO IMPACT FEES _______________________________________________________ The Common Council of the City of Oconomowoc, Waukesha County, Wisconsin, do ordain as follows: Section 1. §27.09(1)(a)(Table 1), §27.09(9)(b) and (c) (Table), §27.09(10)(b) and (c) (Table), §27.09(12)(b)2 and 3 (Table) of the Municipal Code are amended to read: 27.09 IMPACT FEE SCHEDULES/CALCULATION. (1) RESIDENTIAL/NONRESIDENTIAL DEVELOPMENT – 5/8 – TO 2-INCH METER. (a) The following fee schedule (Table 1) based upon meter size shall apply to all residential/nonresidential connections with meter sizes of 5/8-inch up to 2-inch. These fees are a one-time fee and are not subject to a review period. The standard residential meter is the 3/4 –inch meter for the purpose of fee calculation. TABLE 1 Meter Sizes (a) (b) (c) (d) 5/8" and 3/4" 1" 1½" 2" Refer to Refer to Refer to Refer to 2nd Street Lift Station Impact Fee Table 2 Table 2 Table 2 Table 2 North Interceptor Impact Fee $2,129 $7,924 $19,055 $31,648 (9) HIGHWAYS AND OTHER TRANSPORTATION FACILITIES IMPACT FEE. (b) Residential Development. The highways and other transportation facilities impact fee shall be $388 per residential dwelling unit. (c) Nonresidential Development. The highways and other transportation facilities impact fee shall be calculated based on planned building gross floor area according to the fee schedule below. For any properties for which the planned gross floor area is not known at the time that the impact fee is imposed and calculated, the fee shall be calculated based on the gross floor area set forth on the application for a building permit. When actual gross floor area is known, an appropriate charge shall be made if the actual gross floor area is more than what was represented on the building permit application, or credit may be given if the actual gross floor area is less than the gross floor area represented on the building permit application. Land Use Fee Per Square Foot of Gross Floor Area Commercial/Institutional $1.442 Industrial $0.381 4 (10) LAW ENFORCEMENT FACILITIES IMPACT FEE. (b) Residential Development. The law enforcement facilities fee shall be $425 per single-family residential dwelling unit and $284 per multi-family residential dwelling unit. (c) Nonresidential Development. The law enforcement facilities impact fee shall be calculated based on planned building gross floor area according to the fee schedule below. For any properties for which the planned gross floor area is not known at the time that the impact fee is imposed and calculated, the fee shall be calculated based on the gross floor area set forth on the application for a building permit. When actual gross floor area is known, an appropriate charge shall be made if the actual gross floor area is more than what was represented on the building permit application, or credit may be given if the actual gross floor area is less than the gross floor area represented on the building permit application. Land Use Fee Per Square Foot of Gross Floor Area Commercial/Institutional $0.587 Industrial $0.113 (12) PARKS, PLAYGROUNDS, AND LAND FOR ATHLETIC FIELDS IMPACT FEE. (b) Residential Development. 2. For lands for which a dedication of land for public parks was made as a condition of land subdivision under Chapter 18 of the Municipal Code, the parks, playgrounds and lands for athletic fields impact fee shall be reduced by the amount set forth in the table appearing in subsection(12)(b)3. hereof for every 1,500 square feet of land dedicated per residential dwelling unit, up to a maximum credit of $1,236 per residential dwelling unit; or by $495 for every 600 square feet of land dedicated per resident at maximum occupancy for an institutional residential development, up to a maximum credit of $495 per resident. 3. Parks, playgrounds and lands for athletic fields impact fees for 2021 shall be as set forth in the following table. Per resident dwelling unit $2,878 Per resident for institutional residential development $960 Credit for every 1,500 square feet of land dedicated per $1,236 residential dwelling unit Credit for every 600 square feet of land dedicated per resident $495 at maximum occupancy for institutional residential development 5  SECTION 2. EFFECTIVE DATE. This ordinance shall become effective on January 1, 2021, and upon passage and publication as required by law. DATED: _______________________ CITY OF OCONOMOWOC By: ____________________________ ATTEST: Robert P. Magnus, Mayor _____________________________ Diane Coenen, Clerk Date Adopted: _________________ Date Published: ________________ Effective Date: _________________ 6  MEMORANDUM DEPARTMENT Date: November 23, 2020 To: Finance Committee, Common Council and Mayor Magnus From: Laurie Sullivan, Finance Director Re: Ordinance changes to allow for indexed adjustment to the Sewer Availability Charge RELATES TO THE STRATEGIC PLAN Strategic Goal- II. Improve and Maintain our Infrastructure/Facilities V. Enhance the Effectiveness of our City Government D. Maintain/Improve the City’s financial Sustainability BACKGROUND The City’s ordinances allow indexing of the Sewer Availability Charge (SAC) to keep fee amounts current for inflation and increases in costs. The City last indexed impact fees in 2020. ADDITIONAL ANALYSIS The following chart outlines the current fees for 2020 and the 2021 fees adjusted for the applicable index increases: Utility Impact Fees (continued) 2020 2021 Sewer Availability Charge (adjusted by construction cost index – .0126) Existing unconnected development annexed to City prior 6/30/91 (credit of $2,090) $1,874 $1,905 Undeveloped lots in City platted on or before 6/30/91 (credit of $642) $3,298 $3,353 Properties located outside City or properties annexed into City after 6/30/91 ⅝ or ¾ inch $3,930 $3,995 1 inch $14,625 $14,868 1 ½ inch $35,171 $35,755 2 inch $58,417 $59,386 3 inch or larger (per residential equivalent connection – REC) $3,930 $3,995 FINANCIAL IMPACT Sewer Availability Charges are adjusted annually by the Construction Cost Index (CCI). For the 2021 the CCI adjustment is 0.0166. RECOMMENDATION Staff recommend approval of the 2021 index adjustment to the Sewer Availability Charges. SUGGESTED MOTION Motion to approve the indexed adjustment to the Sewer Availability Charge. 1 7  Ordinance No. 20-O994 AN ORDINANCE TO AMEND §13.62(3)(a)1 (Table 1), RELATING TO SEWER AVAILABILITY CHARGES _______________________________________________________ The Common Council of the City of Oconomowoc, Waukesha County, Wisconsin, do ordain as follows: Section 1. §13.62(3)(a)1 (Table 1) of the Municipal Code is amended to read: 13.62 - SEWER AVAILABILITY CHARGE. 3) SCHEDULE OF SEWER AVAILABILITY CHARGES. (a) Residential/Nonresidential Development - 5/8- to 2-Inch Meter. 1. The following fee schedule (Table 1) based upon meter size shall apply to all residential/nonresidential connections with meter sizes of 5/8-inch up to 2-inch. These fees are a one-time fee and are not subject to a review period. TABLE 1 Meter Sizes (a) (b) (c) (d) 5/8" and 1" 1½" 2" 3/4" Sanitary Sewer Availability Charge, City and $3,995 $14,868 $35,755 $59,386 Extraterritorial Credits: Existing unconnected single-family residence $2,090 NA NA NA within the City limits as of June 30, 1991 Existing vacant lot platted on or before June 30, $642 NA NA NA 1991 SECTION 2. EFFECTIVE DATE. This ordinance shall become effective on January 1, 2021, and upon passage and publication as required by law. DATED: _______________________ CITY OF OCONOMOWOC By: ____________________________ ATTEST: Robert P. Magnus, Mayor _____________________________ Diane Coenen, Clerk Date Adopted: _________________ Date Published: ________________ Effective Date: _________________ 8