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Sunday, March 4, 2018
GC Fire Board Meeting Date Change
The Garden City Fire District has moved the monthly board meeting from the Third Thursday at 6:00PM to the 1st Wednesday at 6:00PM starting immediately.
Leonard O'Reilly, Reporter
Rich Civic Times
GARDEN CITY. February 16, 2018. The meeting started on time with all board members in attendance. Due to time constraints, because of conflicting meetings of some board members, most of the topics scheduled to be discussed were tabled until next month.
Three new board members were welcomed aboard necessitating nominations and elections of new officers resulting in the following; Randall Knight - Chairman, Laura Cluff - Treasurer and Jenny England - Secretary.
Because Cluff and England own and operate businesses especially on Thursday evenings it was determined that the first Wednesday of each month was best suited.
The balance of the meeting centered around the expansion of the fire station based on the projections of the level of services needed in the future. To help pay for these needs, the board is looking at modifying the current impact fees. Randall Knight, Chairman, asked Scott Archbald of Sunrise Engineering to explain how impact fees are calculated and implemented. Archibald pointed out that the fees mainly go toward the assets needed for additional growth generated by the new construction of homes, cabins, and businesses.
Archibald explained that the alternative to impact fees would be a user fee/property taxes. However, upon discussion, it was felt that the most equitable way is an impact fee because of where it places the burden; on new construction.
There is a need to increase the size of the fire facility and the board has discussed a possible increase in impact fees to pay for the expansion. There are two ways to pay for the facilities, a user fee/property tax or an impact fee. The impact fee is designed to help pay for growth needed by additional population growth. The new residents/cabins put an impact on the needs of the fire district and require a growth in the facilities to provide the same level of service.
The impact fee is allowed for new building or fire suppression vehicles in excess of $500,000. There is no dollar limit on a building purchase/expansion. Sunrise Engineering would look at the cost of the facility and would project it out to justify any increase and calculate the need for impact fees. This can be for a current need or a projected need. Impact fees can only be used for the items identified in the plan and only during the next six years. If needed for a time-period longer than six years, the plan would need to show the need to save those funds up longer than that time-period. If the funds are not used during the six years (or longer if documented), those fees would need to be refunded.
Fire Chief, Mike Wahlberg, asked if a new plan needed to be filed at the end of the six years to continue to collect. Archibald said that a new plan would not necessarily need to be filed, the thing that would need to be kept up is the list of the capital improvements that the impact fees would be used for. However, they typically do another study at the end of the six years to update the list and reevaluate the amount of the impact fee being charged. As long as there is a need and the need continues, the impact fee can continue without a new plan. The accounting for the fees is audited each year with the financial statements. There is a spreadsheet kept which shows how much is still owed to the general fund for the building purchase, how much fee was received during the year, and the year endowed amount.
Archibald stated that the cost to prepare the plan is roughly $5,000 if they can do multiple studies at the same time. If only one is done, then it would be $6-7,000. Randall asked how to determine what the fee should be. Archibald stated that they use “an equivalent residential unit”, rather than stating square footage of homes, outbuildings, etc. Commercial users may be assessed at the rate of 3-4 residential units, based on the draw they will put on the system. It would take them 30-45 days to put together a plan.
The board would need to put together a plan for the new expansion of the station. The plan would entail computing the level of service using the current number of residents divided by the square footage of the building. Any increase in impact fees would involve providing that same ratio when new residences are included. Another way to do it is by square footage, rather than a residential unit.
A square footage type plan might cost a little more to put it together. Mike asked if the plan becomes invalid if the impact fees are still being collected beyond the expiration date written into the plan. Scott stated that as long as the fees are used for the same capital improvement projects listed in the plan, then the plan would still be valid, although it might not include new projects that an impact fee could be increased to cover. If the fees were used for a project not listed in the plan, then the fee would be used incorrectly. There have been 50-60 new structures in 2017 and the projected growth is at least 200 new structures over the next 2 years. A study of a random range of building permits for the past couple of years could be used to put together the square footage and growth estimates.
The impact fee is allowed for new building or fire suppression vehicles in excess of $500,000. There is no dollar limit on a building purchase/expansion. Sunrise Engineering would look at the cost of the facility and would project it out to justify any increase and calculate the need for impact fees. This can be for a current need or a projected need. Impact fees can only be used for the items identified in the plan and only during the next six years. If needed for a time-period longer than six years, the plan would need to show the need to save those funds up longer than that time-period. If the funds are not used during the six years (or longer if documented), those fees would need to be refunded.
Fire Chief, Mike Wahlberg, asked if a new plan needed to be filed at the end of the six years to continue to collect. Archibald said that a new plan would not necessarily need to be filed, the thing that would need to be kept up is the list of the capital improvements that the impact fees would be used for. However, they typically do another study at the end of the six years to update the list and reevaluate the amount of the impact fee being charged. As long as there is a need and the need continues, the impact fee can continue without a new plan. The accounting for the fees is audited each year with the financial statements. There is a spreadsheet kept which shows how much is still owed to the general fund for the building purchase, how much fee was received during the year, and the year endowed amount.
Archibald stated that the cost to prepare the plan is roughly $5,000 if they can do multiple studies at the same time. If only one is done, then it would be $6-7,000. Randall asked how to determine what the fee should be. Archibald stated that they use “an equivalent residential unit”, rather than stating square footage of homes, outbuildings, etc. Commercial users may be assessed at the rate of 3-4 residential units, based on the draw they will put on the system. It would take them 30-45 days to put together a plan.
The board would need to put together a plan for the new expansion of the station. The plan would entail computing the level of service using the current number of residents divided by the square footage of the building. Any increase in impact fees would involve providing that same ratio when new residences are included. Another way to do it is by square footage, rather than a residential unit.
A square footage type plan might cost a little more to put it together. Mike asked if the plan becomes invalid if the impact fees are still being collected beyond the expiration date written into the plan. Scott stated that as long as the fees are used for the same capital improvement projects listed in the plan, then the plan would still be valid, although it might not include new projects that an impact fee could be increased to cover. If the fees were used for a project not listed in the plan, then the fee would be used incorrectly. There have been 50-60 new structures in 2017 and the projected growth is at least 200 new structures over the next 2 years. A study of a random range of building permits for the past couple of years could be used to put together the square footage and growth estimates.
The process of implementing a fee includes notifying the public of the intent to put together an impact fee analysis, then the study would be done, then the board would adopt an impact fee based on the recommendation of the study. The analysis would be kept on file in the district and could be used to defend against any challenge.
Archibald subsequently discussed the mechanics of impact fees. It would take 30 to 45 days to put a plan together and would cost five to seven thousand dollars, Knight said the board would take his comments into consideration and get back to him in the future.
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