Council directs staff to push back planned increases to development connection fees by one year

City staff presented a recommendation from an ad hoc fees committee to phase out a long-standing discount on development connection fees. Melissa, the city manager, told the council the committee recommended reducing an existing 75 percent discount on connection fees to 50 percent for fiscal year 2025–26, then to 25 percent in 2026–27, with full fees by 2027–28, and that staff should pursue an updated time-study to support fee-setting.

Council discussion focused on balancing the goal of recapturing costs with the desire to keep development incentives. Several council members argued for pushing back the schedule to give developers time to file permits; others said a shorter window would better encourage timely projects. After discussion, a council member moved to delay the committee’s recommended schedule by one year and direct staff to prepare a formal resolution (or ordinance where needed) implementing the revised timeline. The motion was seconded and passed on a 5–0 voice vote.

The council did not amend the underlying fee studies at the July 14 meeting. Staff said the last comprehensive development-impact fee study was completed in February 2009, wastewater fee updates were done in 2017 (with a 2020 update), and the water utility rate study was completed in 2022; staff recommended commissioning a new time-study when financially feasible.

Ending: Council directed staff to return with a resolution formalizing a one-year delay to the planned reduction in the connection-fee discount; staff will present draft language for council review at a future meeting.