Clarkdale impact fees out, capacity fees in

Capacity and connection fees for water, wastewater

CLARKDALE - The Town Council took separate actions Jan. 8 to do away with development impact fees and then create capacity fees for water and wastewater systems and fees for wastewater connections.

The council voted unanimously to approve Ordinance 347, which states that, "Development Impact Fees will no longer be collected on new developments in the Town of Clarkdale."

Director of Community Development Jody Filardo reported to the council on the background of impact fees. The town adopted development impact fees in August of 2007 in six categories: civic facilities, library, park facilities, police facilities, wastewater facilities and water facilities.

In January 2012, the state revised the statute regarding collection, reporting and disbursement of development impact fees. The town manager then suspended the collection of development fees.

At about the same time, the council adopted the goal of ensuring that new development does not create a financial burden on citizens.

In response, the impact of development on the town's water and wastewater systems will be offset through new capacity fees.

Mayor Doug Von Gausig said the state Legislature decided it knows better than cities and towns.

Filardo explained that capacity and connection fees will essentially take the place of impact fees.

"When someone comes to town to connect to water or wastewater, they will pay the impact fee," Filardo said.

Her report stated that staff believes the amount collected from all of the impact fees, other than water or wastewater, does not warrant the cost of administering the development impact fee program.

Wayne Debrosky, utilities director, explained that the town currently collects two types of fees for connection to the town's water system. The connection fees are based on meter size.

"Those fees were based on a study that was done," Debrosky said.

Debrosky said Type A fees go directly to the town, and Type B are pass-through fees that are passed on to the former owner of the water system.

He said the Type B fees will expire Feb. 1.

Vice Mayor Richard Dehnert made a motion to approve Resolution 1417 to create capacity fees for water and wastewater systems and wastewater connection fees.

The new fees will become effective Feb. 8.

The water system connection charges, the wastewater connection charges and the water capacity fees are all based on meter size from 5/8 inch up to 8 inch.