Southern Utah News Articles
Kanab City Council raises impact fees to $9000
The Kanab City Council came to a consensus decision on the amount that should be charged to new home and commercial builders starting August 1, 2018, but not before hearing comments from homebuilders and realtors attending the May 22 meeting.
Homebuilder Gary Mudrow asked if all other options to pay for city impacts had been examined. “I am concerned that high impact fees will make homes less affordable for many people,” said Mudrow.
Jim Peterson, also a homebuilder, supported resuming impact fees, but wanted a “doable” amount that would not be prohibitive in the home market.
Realtor Ben Clarkson felt there is a need for impact fees, but asked, “What will the market bear, perhaps $5,000.”
Scott Colson asked if lower income homeowners could have fees waived or at least lowered. City attorney Jeff Stott answered saying, “It can be written into the ordinance that this could be reviewed on a case by case scenario or be designated as a development with a broad public purpose and thereby qualify for fee adjustments.”
After hearing public comments, the council deliberated whether they should decide on a total fee amount or go through the five need areas to determine what amount of funding each of them would minimally require to determine an impact fee amount.
They decided to examine the funding needs of each area as researched by City Manager Joe Decker and Mayor Robert Houston. Their findings were: Public Safety $400, Parks and Recreation $528, Transportation $825, Wastewater $242, Water $3500 and Storm Water $3500. These figures were deemed reasonable and accepted by the council and totaled $8,995.
The council then voted four to one, with Jeff Yates voting no, to set the Impact Fee amount at $9,000 for new homes beginning August 1, 2018. However, they decided by a three to two vote, with Joe B. Wright and Michael East voting no, that this fee amount would be phased in over the next three years starting at 50 percent ($4,500); then 75 percent ($6,750) on Aug. 1, 2019 and finally $9,000 on Aug.1, 2020.
Commercial buildings had a maximum allowable rate for impact fees of $12.87 per square foot. The council voted to keep the commercial rate at the same percentage (29 percent) of the maximum allowable rate for homes, which would amount to $3.73 per square foot. Ordinance 5-1-18 O passed.
The Impact Fee can be raised to a maximum of $31,000 for homes and $12.87/sq.ft. for commercial buildings, or lowered at any time by the city council, if they determine it is in the best interests of the city.
The council voted unanimously to pass Ordinance 5-2-18 O, establishing an enterprise fund for Storm Water Utility so a fee could be charged on the Kanab City Consolidated Fee Schedule, also known as Kanab City’s monthly bill.
Thus followed Resolution 5-2-18 R, adopting a new Consolidated Fee Schedule, which includes a $3 per month increase in the base water rate to $30 and a $12.91 monthly charge for Storm Water Mitigation costs. Beginning July 1, your city bill will be higher by about $16.
Resolution 5-1-18 R authorizes Joe Decker and soon-to-be new Kanab City Treasurer Katherine Ohlwiler to make changes to PTIF accounts.
Raelene Johnson, after long years of dedicated service to the city and citizens of Kanab, will be retiring at the end of June. Thank you, Raelene, and many happy days ahead for you.