Agenda - Council Work Session - 10/22/2019

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CC Work Session 2. 3. Meeting Date: 10/22/2019 Information Title: Review Current Development Fees, Sureties and Permit Fees Purpose/Background: The purpose of this case is to review a broad overview of development related fees as well as to seek direction from the City Council if it desires to do a deeper dive study on any component discussed in this case. It can be very time consuming to do a full development fee analysis, as each community accounts for infrastructure needs slightly different. • Assessed versus Fee? • Per Unit or Acreage? • Based on Market Value? Generally speaking, Staff believes that overall, our fees fall within the median range when looking at the total development costs. There are a number of factors that influence the range of total development costs from community to community. • Desired amenities/quality of life • Availability of existing infrastructure/development pattern • Proximity to downtowns and metropolitan area Due to the complexity of this case and the various multipage documents/plans, Staff has not attached each impacted system plan here. Depending on the focus of tonight's scoping meeting, detailed plans will be included with future discussions. DEVELOPMENT FEES Park Dedication and Trail Development Fees The City has a plan for park expansion to keep up with forecasted growth in households, population and employment. The quality of our parks and open space system appears to rank high on our biannual citizen survey. This expansion is largely funded by Park Dedication and Trail Development Fees. Currently, the cost of the planned expansion of the Park and Trail System outpaces the forecasted revenue from these fees. The City's Park Dedication Fee is generally within median range of peer communities. There is a significant difference between developed and developing communities. Developed Communities often have lower Park Dedication Fees, however struggle with long-term maintenance and replacement of existing parks. For example, several years ago Coon Rapids passed a Park Bond Referendum in the amount of $17M to replace and update several recreation facilities in that community. A Trail Development Fee is less common, but is collected by a number of communities. Staff does note that the quality of our robust trail system ranks high on feedback from our community. When looking at our Park Dedication and Trail Development Fee together, the rate appears to be on the high end of median in order to achieve our desired plan/vision/quality of life. Water and Sanitary Sewer Trunk Fees These trunk fees are largely variable based on development patterns when attempting to compare to other