Staff recommends that the City Council conduct a public hearing and approve the proposed resolution setting arterial construction fee assessments rates for FY 2021.

Arterial construction fee assessments are set annually by resolution.  The rate schedule for arterial fee assessments is based on zoning and square footage to reflect the relative average impact on arterial roads.  The existing rates are not adequate to provide for the capital investment necessary to continue providing service at the current level. The attached resolution specifies the proposed rates with a 2% increase for FY 2021.  The arterial construction assessments requires two-thirds (2/3) of all Council members present and voting to pass an increase in assessments.

City Council must hold a public hearing and then may:

• Approve the recommended resolution,
• Approve an amended resolution, or;
• Not approve a resolution.  If Council does not approve a resolution, an amended resolution to establish arterial construction fee assessments will need to be considered at a future City Council meeting to establish rates for fiscal year 2021.

An average 9,691 square foot residential lot currently pays $51.36 per year.  The adjusted fee increase to an average 9,691 square foot residential lot is $1.06 per year and the annual increase in revenues for FY 2021 is approximately $87,000.