Submitted By: Rusella Bowes-Johnson
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Presentation By: Sean Lanier
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Department: Water & Sewer
STAFF RECOMMENDATION (Motion Ready):
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Open a public hearing to consider the adoption of Ordinance 2025-27, adjusting the water and sewer impact fees under Chapter 70, Article V, Division 2, Section 70-502, Code of Ordinances, City of Ocala, Florida
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OCALA'S RELEVANT STRATEGIC GOALS:
Fiscally Sustainable, Operational Excellence
PROOF OF PUBLICATION:
Ocala Gazette - June 6, 2025 - Notice ID AaSK2zn0y6Gh2qwutcL1
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BACKGROUND:
The current impact fee rates have been in effect since May 1, 2021. The Water Resources department has worked with Raftelis Financial Consultants, Inc. to evaluate our current impact fees. The following Impact Fee Criteria were utilized during the evaluation:
1. Fee must be reasonably equitable to all parties - "Rational Nexus"
2. No intentional windfall to existing users
3. Recover capital cost for system capacity necessary to serve new development
FINDINGS AND CONCLUSIONS:
As presented to the Utility Advisory Board on April 16, 2025, and City Council on April 29, 2025, the Water Resources department has a need to recover the cost of supply, treatment, and backbone transmission. A recommendation of an adjustment of 50 percent above the current impact fee was presented to the City Council. Therefore, staff recommends adoption of the new ordinance as proposed.
FISCAL IMPACT:
Recovering the capital costs to serve new development and/or increases in existing service requirements through impact fees helps reduce the overall rates charged to the City's existing customers.
PROCUREMENT REVIEW:
N/A
LEGAL REVIEW:
The ordinance is has been reviewed by the City Attorney, William E. Sexton.
ALTERNATIVE:
* Approve with changes
* Deny
* Table
ORDINANCE 2025-27
AN ORDINANCE OF THE CITY OF OCALA, FLORIDA CONCERNING AND AMENDING DIVISION 2, ENTITLED "WATER AND SEWER IMPACT FEES," OF ARTICLE V, ENTITLED "FEES, RATE...
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