Finance Committee

City of Oconomowoc Finance Committee Aldermen: Mulder, Chairman / Rosek, Secy / Spiegelberg Tuesday, December 07, 2021 - 7:20 PM City Hall - Conference Room 3 174 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 Resolution 21-R2996 Amending Impact Fees and Sewer Availability Charge Fee Amounts for 2022 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 FINANCE DEPARTMENT Date: November 30, 2021 To: Common Council and Mayor Magnus From: Laurie Sullivan, Finance Director Re: Resolution 21-R2996 to allow for annual 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 for the indexing of impact fees through resolution to keep amounts current for inflation and increases in costs. The City last indexed impact fees in 2021. ADDITIONAL ANALYSIS The following charts outline the current fees for 2021 and the 2022 fees adjusted for the applicable index increases: City Impact Fees 2021 2022 Highways & Other Transportation Facilities Impact Fees (CCI .0840) Residential dwelling unit $388 $421 Commercial/Institutional per sq. ft. $1.442 $1.563 Industrial per sq. ft. $0.381 $0.413 Law Enforcement Facilities Impact Fee (CCI .0840) Single-family/duplex residential dwelling unit $425 $461 Multi-family residential dwelling unit $284 $308 Commercial/Institutional per sq. ft. $0.587 $0.636 Industrial per sq. ft. $0.113 $0.122 Parks, Playgrounds & Other Recreational Facilities Impact Fee (CCI .0840) Per residential dwelling unit $2,878 $3,120 Per resident at maximum occupancy for institutional residential development $960 $1,041 Per residential dwelling unit where 1,500 sq. ft. of land is dedicated for public parks as a condition of land subdivision (credit up to $1,340) Per resident at maximum occupancy for institutional residential development $1,642 $1,780 where 600 sq. ft. of land is dedicated for public parks as a condition of land subdivision (credit up to $537) $465 $504 1 2  Utility Impact Fees North Interceptor (adjusted by average annual LGIP rate – .0007) ⅝ or ¾ inch $2,129 $2,131 1 inch $7,924 $7,929 1 ½ inch $19,055 $19,068 2 inch $31,648 $31,670 3 inch or larger (per residential equivalent connection – REC) $2,129 $2,131 Sewer Availability Charge 2021 2022 Sewer Availability Charge (CCI .0840) Existing unconnected development annexed to City prior 6/30/91 (credit of $2,226) $1,905 $2,065 Undeveloped lots in City platted on or before 6/30/91 (credit of $696) $3,353 $3,635 Properties located outside City or properties annexed into City after 6/30/91 ⅝ or ¾ inch $3,995 $4,331 1 inch $14,868 $16,117 1 ½ inch $35,755 $38,758 2 inch $59,386 $64,375 3 inch or larger (per residential equivalent connection – REC) $3,995 $4,331 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 2022 rate adjustment the following indexes were used: CCI adjustment is 0.0840, LGIP adjustment is 0.0007. Sewer Availability Charges are adjusted annually by the Construction Cost Index (CCI). The 2022 CCI rate adjustment is 0.0840 RECOMMENDATION Recommend approval of the 2022 index adjustments to the impact fees and sewer availability charge SUGGESTED MOTION Motion to approve Resolution 21-R2996 to index the impact fees and sewer availability charge as outlined. 2 3  RESOLUTION NO. 21-R2996 RESOLUTION AMENDING IMPACT FEES AND SEWER AVAILABILITY CHARGE FEE AMOUNTS EFFECTIVE JANUARY 1, 2022 WHEREAS, the City’s Municipal Code Chapter 13.62 relating to Sewer Availability Charge and Chapter 27.09 relating to Impact Fee Schedules/Calculation have been amended to authorize fee amounts and adjustments by Council resolution; and WHEREAS, the City’s ordinances allow annual indexing of impact fees and sewer availability charges to keep fee amounts current; and WHEREAS, the following charts outline the current fees for 2021 and the proposed 2022 fees adjusted for the applicable index increases. City Impact Fees 2021 2022 Highways & Other Transportation Facilities Impact Fees (CCI .0840) Residential dwelling unit $388 $421 Commercial/Institutional per sq. ft. $1.442 $1.563 Industrial per sq. ft. $0.381 $0.413 Law Enforcement Facilities Impact Fee (CCI .0840) Single-family/duplex residential dwelling unit $425 $461 Multi-family residential dwelling unit $284 $308 Commercial/Institutional per sq. ft. $0.587 $0.636 Industrial per sq. ft. $0.113 $0.122 Parks, Playgrounds & Other Recreational Facilities Impact Fee (CCI .0840) Per residential dwelling unit $2,878 $3,120 Per resident at maximum occupancy for institutional residential development $960 $1,041 Per residential dwelling unit where 1,500 sq. ft. of land is dedicated for public parks as a condition of land subdivision (credit up to $1,340) Per resident at maximum occupancy for institutional residential development $1,642 $1,780 where 600 sq. ft. of land is dedicated for public parks as a condition of land subdivision (credit up to $537) $465 $504 Utility Impact Fees North Interceptor (adjusted by average annual LGIP rate – .0007) ⅝ or ¾ inch $2,129 $2,131 1 inch $7,924 $7,929 1 ½ inch $19,055 $19,068 2 inch $31,648 $31,670 3 inch or larger (per residential equivalent connection – REC) $2,129 $2,131 4  Sewer Availability Charge 2021 2022 Sewer Availability Charge (CCI .0840) Existing unconnected development annexed to City prior 6/30/91 (credit of $2,226) $1,905 $2,065 Undeveloped lots in City platted on or before 6/30/91 (credit of $696) $3,353 $3,635 Properties located outside City or properties annexed into City after 6/30/91 ⅝ or ¾ inch $3,995 $4,331 1 inch $14,868 $16,117 1 ½ inch $35,755 $38,758 2 inch $59,386 $64,375 3 inch or larger (per residential equivalent connection – REC) $3,995 $4,331 NOW THEREFORE, BE IT HEREBY RESOLVED, that the City Council affirms and sets forth by Resolution the fee amounts for Chapter 13.62 and Chapter 27.09 of the Municipal Code relating to Sewer Availability Charge and Impact Fee Schedules/ Calculation effective January 1, 2022. BE IT FURTHER RESOLVED THAT, the fees set forth in this Resolution shall be in place until such time that the Council authorizes an amendment to such fees. DATED: December 7, 2021 CITY OF OCONOMOWOC By: _____________________________ Robert P. Magnus, Mayor ATTEST: Diane Coenen, Clerk 5