The purpose of this item is to conduct a periodic check of the land use assumptions and capital improvements plan included in Impact Fee Service Area Number 1 (IFSA#1) and update those assumptions as needed to determine the amount of impact fees per development unit within the service area.

With respect to land use assumptions, staff performed a comprehensive analysis of the approved land uses for each property within the boundary of Impact Fee Service Area Number 1. The results of the analysis indicate that the full build out potential within IFSA#1 is 26,436 service units. As of December 30,2015, 11,813 service units have been permitted leaving 14,623 service units available for future developments.

A summary of the land use assumptions for IFSA#1 is presented on page 11 of the House Moran report, attached as Exhibit A for the City Council's review.

The Capital Improvements Plan for the provision of Sanitary Sewer, Flood Control, Parks and Recreation and Fire Station improvements to support the master planned land uses within Impact Fee Service Area #1 are presented on pages 13-24 of the report. The report includes an analysis of both existing and future Capital Improvement facilities for each of the infrastructure categories as well as the basis for allocation of costs for each land use type.

The recommended Impact Fees for the land use assumptions and capital improvements plan included in IFSA#1 are summarized on page 24 of the report. The result was a largely similar capital improvements plan, adjusted for 3 years of inflation, spread out over fewer service units that produced an increase in the impact fee per service unit.

The impact fee update was presented to the Enterprise Fund Advisory Committee (EFAC) on November 1, 2016. The EFAC voted unanimously to forward a recommendation of approval to the Capital Improvements Advisory Committee.

The Capital Improvements Advisory Committee, reviewed the land use assumptions, Capital Improvements Plan and associated Impact Fees for IFSA#1 on November 17, 2016 and voted unanimously to forward a recommendation of approval to the City Council (report of action attached).

Should the Council approve the Resolution, the updated IFSA#1 Impact Fee Schedule will become effective on January 1, 2017.