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Council extends police facility impact fee collection window to 2045 to avoid sharp fee hikes
Summary
After staff showed current collections will not meet an original $13M cap within the existing 10-year window, the council approved a developer-backed option to extend the timeline to 2045 while keeping per-unit fees unchanged to avoid large immediate increases to single-family home permit fees.
The Reno City Council voted unanimously to extend the collection window for the police facility impact fee to 2045 and maintain existing fee amounts, a move staff said would avoid a potentially large per-unit fee increase for new home buyers.
Angela Foos, assistant director of development services, explained that under state law the city may collect up to $13 million in impact fees to help pay for a portion of the new police station. Collections are taken at the time of building permit issuance and have fallen sharply since the COVID-era permit boom. “In 5 years, we—ve raised just over $2,000,000. So that means in the next 5 years, we have to raise $10,900,000. Probably not gonna happen,” Foos said. Staff presented four options (raise fees, extend the timeline, both, or change allocations) and a fifth alternative proposed by the development community: extend the sunset year but keep current fees.
Council members asked about interest, bond schedule and budget impact; Foos said the $13M is the legal cap and extending the timeline does not increase the cap or the bond terms, it simply spreads receipts across a longer period. After discussion the council adopted Alternative 5, which keeps the fee schedule and extends the collection period to 2045, with staff directed to pursue the business impact statement and ordinance steps necessary to implement the change.
The motion passed unanimously; staff will return with the formal ordinance language and required impact studies.
