Informational Item – Budgetary Impact of Implementing Impact Fees for Electric and Water:

The assessment of an impact fee on water customers moving into new homes would result in approximately $108,000 per year of additional revenue and cash flow for the Water Department. This figure is based on historical averages. If this impact fee was implemented as of July 1, 2007, the additional funds could delay the 8% rate increase (scheduled for 08-09) to City customers a year and a half, all other factors remaining unchanged.

The assessment of impact and connection fees on electric customers moving into new homes would result in approximately $114,000 per year of additional revenue and cash flow for the Electric Department. This figure is based on historical averages. If these fees were implemented as of July 1, 2007, the additional funds could delay the customer charge rate increase (scheduled for 08-09) one year, all other factors remaining unchanged.

Staff is not recommending any impact fee for the Cable Department. John Higginbotham will provide a discussion of the current refund calculation utilizing the average number of services per customer.