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Commission passes first reading of new impact-fee ordinance updating fire, police and adding parks fees
Summary
On first reading the City Commission adopted an impact-fee study and ordinance to update fire rescue and law enforcement fees and to create a parks & recreation fee; the ordinance includes phased increases and programmatic rules; fees will apply at building permit and be effective after statutory notice.
The commission approved first reading of Ordinance 2025-001, which adopts a consultant study and establishes a revised impact-fee program for fire rescue, law enforcement and a new parks & recreation impact fee. Staff and the city's consultant presented the technical analysis and statutory constraints that shaped the proposed fees.
Why it matters: The ordinance updates the fee schedule the city charges new development to pay for capacity-related capital costs. It changes how future development contributes to fire, police and park capital, creates dedicated impact-fee funds and requires reporting and developer-credit accounting by statute.
Key points from the consultant and staff (Benesch; presented by Negan Kemp and Justin):
- Methodology and legal constraints: The study used a consumption-based methodology and localized cost data to measure the capital cost per resident and per land use. State law (Impact Fee Act and subsequent bills) requires most-recent localized data, a 90-day notice before implementation, and phase-in limitations when increases exceed statutory thresholds (generally a maximum 50% increase phased over four equal installments unless extraordinary circumstances are demonstrated and approved).
- Proposed fees and samples: The consultant provided example calculations. For a typical multifamily dwelling, the combined calculated fee with a parks component would be roughly $4,200 before statutory limits; application of statutory phasing and limits yields a lower allowable initial amount. Parks & recreation fees in the study apply only to residential development; fire and law-enforcement fees apply to residential and nonresidential uses with new or expanded demand.
- Credits, exemptions and administration: The ordinance includes developer-credit rules (indexing credits when fees increase), procedures for refunds, exemptions provided by statute (including a local ability to waive or reduce fees for qualifying affordable and workforce housing without offset), and reporting and accounting requirements. Fees are collected at building permit and tracked in dedicated impact-fee funds. Finance staff confirmed impact-fee collections are segregated from the general fund and earmarked for capital projects in the relevant service area (fire, law enforcement, parks).
- Timing and next steps: First reading passed unanimously. If the commission adopts second reading, the implementation schedule must meet the 90-day notice requirement and any phased increases must follow state law. Staff and consultants will prepare required notices and second-reading materials.
What commissioners asked and staff clarified:
- Trigger for payment: Fees are assessed at building-permit issuance; projects that have not reached building permit stage when the ordinance is adopted will be subject to the new schedule at permit time.
- Parks fee: The parks fee is new for the city; staff explained the land-value and facility-cost components used to calculate a per-resident charge; the transcript included sample per-resident cost figures and credits that reduce the raw per-resident cost to a net impact-fee value in the study.
Vote: The commission approved Ordinance 2025-001 on first reading by roll call; second reading and statutory notices will follow.
