For Utilities Commission Meeting [October 16, 2018]
TO: Honorable Chairperson and Commission
APPROVAL: Thomas J. Crowley, P.E., Utilities Manager
FROM: Susanne Wilcox, Administrative Analyst
Title
Recommend City Council Consider Adoption of the Updated Water and Wastewater Development Impact Fees.
(ACTION)
Body
BACKGROUND:
Development Impact Fees [DIF(s)] are charges imposed by local governmental agencies for the purpose of defraying all or a portion of the cost of public facilities needed to serve development projects. Government Code Sections 66000-66025 (the "Mitigation Fee Act") establishes the procedural framework for adopting development impact fees.
A DIF is not a tax, special assessment or rate increase on existing development, but is only imposed upon new development as a mitigation measure. DIFs are a one-time charge to new applicants for service representing a proportionate share of the cost of facilities necessary to provide system capacity to a new development. The DIFs must be reasonable related to the demand for public services created by the development. The power to exact DIFs arises from the City's duty to protect the community's public health, safety and welfare.
From 1989-1990, the City of Rialto adopted Ordinances establishing DIFs for various public facilities, including but not limited to general municipal, police, fire, park, storm drains, water and sewer. The City imposes the DIFs to mitigate the demands that new development places upon the City's public facilities. The enacting Ordinances provide allow the DIFs to be set by Resolution, and may be increased by the City Council based upon material changes in facility needs, construction costs, or demographic trends.
The DIF schedules were last updated for a variety of facilities, including Water and Wastewater in 2011. To ensure the DIFs continue to keep pace with inflation, the City adopted an automatic inflationary adjustment to be made each July 1st. The DIFs are adju...
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