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HomeMy WebLinkAboutCost Estimate Estimated Eligible Cost Construction Cost $1,733,309 Engineering /Survey /Geotechnical $276,029 Land Cost $106,887 Impact Fee Preparation $16,400 Total Eligible Cost $2,132,625 Cost Allocation Total New LUE's 2441 Total LUE's Served 2777 Cost Allocation Factor 2441/2777 = 0.88 Maximum Recoverable Cost 0.88 *$2,132,625 = $1,876,710 Maximum 10 -Year Recoverable Cost Projected LUE's 2003 -2013 1110 Projected LUE's after 2013 1331 Total New LUE's 2441 Service Distribution % 100 *(1110/2441) = 45% Maximum 10 -Year Recoverable Cost 45% *$1,876,710 = $844,520 Utility Revenue Credits & Ad Valorem Tax Utility Revenue per LUE Applied to Capital Improvements $56.09 Total Utility Revenue Credit' $56.09* 1110 = $65,590 Ad Valorem Tax Applied to Capital Improvements $0 ' Revenue credit on new LUE's associated with first 10 -year ('03-'13) growth window (service time frame) Mitchell &,4lorgan, LLP - 3 - Number of New LUE's" 1110 Impact Fee Calculation Maximum Impact Fee = Maximum 10 -Year Recoverable Cost — Total Utility Revenue Credit Number of new LUE's Maximum Impact Fee = ($844,520- $65,590)/(1110 LUE's) _ $701.74 /LUE " Number of new LUE's associated with 10 -year growth window ('03-'13) Mitchell &Morgan, LLP - 4 - Impact Fee Calculation Estimated Elijzible Cost Construction Cost $1,733,309 Engineering /Survey /Geotechnical $276,029 Land Cost $106,887 Impact Fee Preparation $16,400 Total Eligible Cost $2,132,625 Cost Allocation The costs recoverable by impact fees are proportioned by the ratio of new Living Unit Equivalents ( LUE's) to the total LUE's served. Since impact fees are collected at the time of new construction, only new LUE's may be charged directly for new capital improvement projects in the "03 -01" service area. The cost allocation factor removes existing LUE's from the impact fee calculation. Total New LUE's 2441 Total LUE's Served 2777 Cost Allocation Factor 2441/2777 = 0.88 Maximum Recoverable Cost = Cost Allocation Factor * Total Eligible Cost Maximum Recoverable Cost = 0.88 *$2,132,625 = $1,876,710 Maximum 10 -Year Recoverable Cost State law limits the City to collection of the infrastructure costs necessary to service a time frame not to exceed ten years (10 -year recovery period). Service distributions allow the City to comply with state law without having to construct a smaller waterline and then return ten to fifteen years later to construct a parallel waterline to accommodate the flow increase. The impact fee reports are updated every three to five years, allowing the service time frame to continually shift forward ensuring eventual recovery of all eligible costs. The service distribution for the first ten year window ('03-'13) was based on the ratio of ultimate LUE's to the LUE's created for the first ten year time frame ('03-'13). Mitchell &,4lorgan, LLP - 17 - Projected New LUE's 2003 -2013 1110 Projected New LUE's after 2013 1331 Total New LUE's 2441 Service Distribution % = 100 * New LUE's for Ten -Year Time Frame (2003 -2013) Total New LUE's Service Distribution % = 100 * (1110/2441) = 45% Maximum 10 -Year Recoverable Cost = Service Distribution % * Maximum Recoverable Cost Maximum 10 -Year Recoverable Cost = 45% *$1,876,710 = $844,520 Utility Revenue Credits & Ad Valorem Tax Credits A portion of customer utility bills are used to finance City capital improvement projects. This portion of the utility bills is used toward the repayment those utility bonds. Utility revenue credits ensure that those customers paying impact fees do not fund the capital improvements to service their area through impact fees and their utility bills, thus paying twice for the same improvements. The same would be done for any ad valorem taxes used to fund capital improvements. Currently, the City of College Station does not use ad valorem taxes to finance capital improvements. Utility Revenue Per LUE "' = X *Y *n X = Average monthly water utility bill per LUE Y = Percent of average monthly water utility bill applied to debt service for bond payment for water capital improvement projects in subject area n = Number of months associated with service time frame (ten years) Utility Revenue Per LUE = $23.37*2%*120 = $56.09 '' Utility revenue per LUE which are used to finance capital improvement bonds Mitchell &,4iorgan, LLP - 18 - Number of New LUE's 1110 Total Utility Revenue Credit" = Utility Revenue Per LUE * Number of New LUE's Total Utility Revenue Credit = $56.09* 1110 = $65,590 Ad Valorem Tax Applied to Capital Improvements $0 Impact Fee Calculation Maximum Impact Fee = Maximum 10 -Year Recoverable Cost — Total Utility Revenue Credit Number of new LUE's Maximum Impact Fee = ($844,520- $65,590)/(1110 LUE's) = $701.74/LUE '" Number of new LUE's associated with service time frame, first 10 -year window CO3-`13) Revenue credit on new LUE's associated with first 10 -year ('03-'13) window /Mitchell &/Horgan, LLP - 19 - Schedule 1 Maximum Impact Fee Per Service Unit Service Area Service Unit Maximum Impact Fee Roadway Facilities: (reserved) Water Facilities: 03 -01 LUE $701.74 Drainage Facilities: (reserved) Mitchell &Morgan, LLP - 20 - Estimated EliLible Cost Construction Cost $1,733,309 Engineering/Survey /Geotechnical $276,029 Land Cost $106,887 Impact Fee Preparation $16,400 Total Eligible Cost $2,132,625 Cost Allocation Total New LUE's 2441 Total LUE's Served 2777 Cost Allocation Factor 2441/2777 = 0.88 Maximum Recoverable Cost 0.88 *$2,132,625 = $1,876,710 Maximum 10 -Year Recoverable Cost Projected LUE's 2003 -2013 1110 Projected LUE's after 2013 1331 Total New LUE's 2441 Service Distribution % 100 *(1110/2441) = 45% Maximum 10 -Year Recoverable Cost 45% *$1,876,710 = $844,520 Utility Revenue Credits & Ad Valorem Tax Utility Revenue per LUE Applied to Capital Improvements $56.09 Total Utility Revenue Credit' $56.09* 1110 = $65,590 Ad Valorem Tax Applied to Capital Improvements $0 'Revenue credit on new LUE's associated with first 10 -year ('03-'13) growth window (service time frame) Mitchell &/!Morgan, LLP - 3 - Number of New LUE's" 1110 Impact Fee Calculation Maximum Impact Fee = Maximum 10 -Year Recoverable Cost — Total Utility Revenue Credit Number of new LUE's Maximum Impact Fee = ($844,520- $65,590)/(1110 LUE's) = $701.74/LUE " Number of new LUE's associated with 10 -year growth window ('03-'13) /Mitchell &,4lorgan, LLP - 4 - Impact Fee Calculation Estimated Eligible Cost Construction Cost $1,733,309 Engineering /Survey /Geotechnical $276,029 Land Cost $106,887 Impact Fee Preparation $16,400 Total Eligible Cost $2,132,625 Cost Allocation The costs recoverable by impact fees are proportioned by the ratio of new Living Unit Equivalents ( LUE's) to the total LUE's served. Since impact fees are collected at the time of new construction, only new LUE's may be charged directly for new capital improvement projects in the "03 -01" service area. The cost allocation factor removes existing LUE's from the impact fee calculation. Total New LUE's 2441 Total LUE's Served 2777 Cost Allocation Factor 2441/2777 = 0.88 Maximum Recoverable Cost = Cost Allocation Factor * Total Eligible Cost Maximum Recoverable Cost = 0.88 *$2,132,625 = $1,876,710 Maximum 10 -Year Recoverable Cost State law limits the City to collection of the infrastructure costs necessary to service a time frame not to exceed ten years (10 -year recovery period). Service distributions allow the City to comply with state law without having to construct a smaller waterline and then return ten to fifteen years later to construct a parallel waterline to accommodate the flow increase. The impact fee reports are updated every three to five years, allowing the service time frame to continually shift forward ensuring eventual recovery of all eligible costs. The service distribution for the first ten year window ('03-'13) was based on the ratio of ultimate LUE's to the LUE's created for the first ten year time frame ('03-'13). 41itchell &,Morgan, LLP - 17 - Projected New LUE's 2003 -2013 1110 Projected New LUE's after 2013 1331 Total New LUE's 2441 Service Distribution % = 100 * New LUE's for Ten -Year Time Frame (2003 -2013) Total New LUE's Service Distribution % = 100 * (1110/2441) = 45% Maximum 10 -Year Recoverable Cost = Service Distribution % * Maximum Recoverable Cost Maximum 10 -Year Recoverable Cost = 45% *$1,876,710 = $844,520 Utility Revenue Credits & Ad Valorem Tax Credits A portion of customer utility bills are used to finance City capital improvement projects. This portion of the utility bills is used toward the repayment those utility bonds. Utility revenue credits ensure that those customers paying impact fees do not fund the capital improvements to service their area through impact fees and their utility bills, thus paying twice for the same improvements. The same would be done for any ad valorem taxes used to fund capital improvements. Currently, the City of College Station does not use ad valorem taxes to finance capital improvements. Utility Revenue Per LUE "' = X *Y *n X = Average monthly water utility bill per LUE Y = Percent of average monthly water utility bill applied to debt service for bond payment for water capital improvement projects in subject area n = Number of months associated with service time frame (ten years) Utility Revenue Per LUE = $23.37 *2 %* 120 = $56.09 Utility revenue per LUE which are used to finance capital improvement bonds 1 4iitchelI &,4iorgan, LLP - 18 - Number of New LUE's'" 1110 Total Utility Revenue Credit" = Utility Revenue Per LUE * Number of New LUE's Total Utility Revenue Credit = $56.09* 1110 = $65,590 Ad Valorem Tax Applied to Capital Improvements $0 Impact Fee Calculation Maximum Impact Fee = Maximum 10 -Year Recoverable Cost — Total Utility Revenue Credit Number of new LUE's Maximum Impact Fee = ($844,520- $65,590)/(1110 LUE's) = $701.74/LUE ' Number of new LUE's associated with service time frame, first 10 -year window CO3-`13) " Revenue credit on new LUE's associated with first 10 -year ('03 -' 13) window /kitchell &/Llorgan, LLP - 19 - Schedule 1 Maximum Impact Fee Per Service Unit Service Area Service Unit Maximum Impact Fee Roadway Facilities: (reserved) Water Facilities: 03 -01 LUE $701.74 Drainage Facilities: (reserved) , Mitchell &/Morgan, LLP - 20 - Estimated Eligible Cost Construction Cost $1,733,309 Engineering /Survey /Geotechnical $276,029 Land Cost $106,887 Impact Fee Preparation $16,400 Total Eligible Cost $2,132,625 Cost Allocation Total New LUE's 2441 Total LUE's Served 2777 Cost Allocation Factor 2441/2777 = 0.88 Maximum Recoverable Cost 0.88 *$2,132,625 = $1,876,710 Maximum 10 -Year Recoverable Cost Projected LUE's 2003 -2013 1110 Projected LUE's after 2013 1331 Total New LUE's 2441 Service Distribution % 100 *(1110/2441) = 45% Maximum 10 -Year Recoverable Cost 45% *$1,876,710 = $844,520 Utility Revenue Credits & Ad Valorem Tax Utility Revenue per LUE Applied to Capital Improvements $56.09 Total Utility Revenue Credit' $56.09* 1110 = $65,590 Ad Valorem Tax Applied to Capital Improvements $0 'Revenue credit on new LUE's associated with first 10 -year ('03-'13) growth window (service time frame) /Mitchell &A/organ, LLP - 3 - Number of New LUE's" 1110 Impact Fee Calculation Maximum Impact Fee = Maximum 10 -Year Recoverable Cost — Total Utility Revenue Credit Number of new LUE's Maximum Impact Fee = ($844,520- $65,590)/(1110 LUE's) = $701.74/LUE " Number of new LUE's associated with 10 -year growth window ('03-'13) Mitchell &/Morgan, LLP - 4 - Impact Fee Calculation Estimated Eligible Cost Construction Cost $1,733,309 Engineering /Survey /Geotechnical $276,029 Land Cost $106,887 Impact Fee Preparation $16,400 Total Eligible Cost $2,132,625 Cost Allocation The costs recoverable by impact fees are proportioned by the ratio of new Living Unit Equivalents (LUE's) to the total LUE's served. Since impact fees are collected at the time of new construction, only new LUE's may be charged directly for new capital improvement projects in the "03 -01" service area. The cost allocation factor removes existing LUE's from the impact fee calculation. Total New LUE's 2441 Total LUE's Served 2777 Cost Allocation Factor 2441/2777 = 0.88 Maximum Recoverable Cost = Cost Allocation Factor * Total Eligible Cost Maximum Recoverable Cost = 0.88 *$2,132,625 = $1,876,710 Maximum 10 -Year Recoverable Cost State law limits the City to collection of the infrastructure costs necessary to service a time frame not to exceed ten years (10 -year recovery period). Service distributions allow the City to comply with state law without having to construct a smaller waterline and then return ten to fifteen years later to construct a parallel waterline to accommodate the flow increase. The impact fee reports are updated every three to five years, allowing the service time frame to continually shift forward ensuring eventual recovery of all eligible costs. The service distribution for the first ten year window ('03 -' 13) was based on the ratio of ultimate LUE's to the LUE's created for the first ten year time frame ('03-'13). Mitchell &/Llorgan, LLP - 17 - Projected New LUE's 2003 -2013 1110 Projected New LUE's after 2013 1331 Total New LUE's 2441 Service Distribution % = 100 * New LUE's for Ten -Year Time Frame (2003 -2013) Total New LUE's Service Distribution % = 100 * (1110/2441) = 45% Maximum 10 -Year Recoverable Cost = Service Distribution % * Maximum Recoverable Cost Maximum 10 -Year Recoverable Cost = 45% *$1,876,710 = $844,520 Utility Revenue Credits & Ad Valorem Tax Credits A portion of customer utility bills are used to finance City capital improvement projects. This portion of the utility bills is used toward the repayment those utility bonds. Utility revenue credits ensure that those customers paying impact fees do not fund the capital improvements to service their area through impact fees and their utility bills, thus paying twice for the same improvements. The same would be done for any ad valorem taxes used to fund capital improvements. Currently, the City of College Station does not use ad valorem taxes to finance capital improvements. Utility Revenue Per LUE "' = X *Y *n X = Average monthly water utility bill per LUE Y = Percent of average monthly water utility bill applied to debt service for bond payment for water capital improvement projects in subject area n = Number of months associated with service time frame (ten years) Utility Revenue Per LUE = $23.37 *2 %* 120 = $56.09 "' Utility revenue per LUE which are used to finance capital improvement bonds /Llitchell &Morgan, LLP - 18 - Number of New LUE's 1110 Total Utility Revenue Credit" = Utility Revenue Per LUE * Number of New LUE's Total Utility Revenue Credit = $56.09* 1110 = $65,590 Ad Valorem Tax Applied to Capital Improvements $0 Impact Fee Calculation Maximum Impact Fee = Maximum 10 -Year Recoverable Cost — Total Utility Revenue Credit Number of new LUE's Maximum Impact Fee = ($844,520- $65,590)/(1110 LUE's) = $701.74/LUE '" Number of new LUE's associated with service time frame, first 10 -year window CO3-`13) " Revenue credit on new LUE's associated with first 10 -year ('03-'13) window /Ltitchell &/Morgan, LLP - 19 - Schedule 1 Maximum Impact Fee Per Service Unit Service Area Service Unit Maximum Impact Fee Roadway Facilities: (reserved) Water Facilities: 03 -01 LUE $701.74 Drainage Facilities: (reserved) Mitchell &/Morgan, LLP - 20 -