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Staff warns a sewer moratorium could cut millions from development funds; board urged to plan funding scenarios
Summary
City staff told the Board that a full sewer-development moratorium could stop the collection of about $8 million in development-fee revenue and remove roughly $2.5 million in annual permit-related receipts in a worst-case scenario.
City staff briefed the Board on the fiscal implications of any moratorium on development and sewer connections, saying a formal moratorium could materially reduce revenues the city currently receives from development-related fees.
Assistant City Administrator Dan Allen and city staff described four funds and fee sources tied to development: (1) adequate facilities taxes, (2) roadway impact fees, (3) water development fees and (4) sewer development fees. Allen said Spring Hill operates under a local private act that allows the city to collect these fees and that the fees are restricted for specific capital uses.
Staff presented a worst-case illustration in…
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