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03-06-2001 (Impact Fee Advisory) Agenda Packet AGENDA I PACT FEE A I SORY COM ITTEE CITY COUNCIL CHAMBERS - WYLIE MUNICIPAL COMPLEX 2000 Highway 78 North, Wylie, Texas 75098 Tuesday, March 6, 2001 7:30 p.m. CALL TO 0 1 ER CITIZEN PARTICIPATION CONSENT AGENDA ITEMS 1. Consider and act upon approval of the Minutes from the February 6, 2001 Meeting. ACTION AGENDA ITEMS 1. Review and consider a recommendation to the City Council regarding the draft report for the 2001-2010 Water and Wastewater Capital Improvements Plan and Impact Fee Update ADJOURNMENT Posted Friday, March 2, 2001, at 5:00 p.m. THE WYLIE MUNICIPAL COMPLEX IS WHEELCHAIR ACCESSIBLE. SIGN INTERPRETATION OR OTHER SPECIAL ASSISTANCE FOR DISABLED ATTENDEES MUST BE REQUESTED 48 HOURS IN ADVANCE BY CONTACTING THE CITY SECRETARY'S OFFICE AT 442-8100 OR TDD AT 442-8170. AGENDA I PACT FEE A 1 SO f'°`Y CO f ° `ITTEE CITY COUNCIL CHAMBERS - WYLIE MUNICIPAL COMPLEX 2000 Highway 78 North, Wylie, Texas 75098 Tuesday, March 6, 2001 7:30 p.m. CALL TOO ` I ER CITIZEN PARTICIPATION CONSENT AGENDA ITEMS 1. Consider and act upon approval of the Minutes from the February 6, 2001 Meeting. ACTION AGENDA ITEMS 1. Review and consider a recommendation to the City Council regarding the draft report for the 2001-2010 Water and Wastewater Capital Improvements Plan and Impact Fee Update ADJOURNMENT Posted Friday, March 2, 2001, at 5:00 p.m. THE WYLIE MUNICIPAL COMPLEX IS WHEELCHAIR ACCESSIBLE. SIGN INTERPRETATION OR OTHER SPECIAL ASSISTANCE FOR DISABLED ATTENDEES MUST BE REQUESTED 48 HOURS IN ADVANCE BY CONTACTING THE CITY SECRETARY'S OFFICE AT442-8100 OR TDD AT 442-8170. MINUTES IMPACT FEE ADVISORY COMMITTEE WYLIE MUNICIPAL COMPLEX 2000 Highway 78 North, Wylie, Texas 75098 Regular Business Meeting February 6, 2001 7:30 pm Notice was posted in the time and manner required by law and quorum was present. Committee Members Present: Staff Members Present: Michael George, Chairman Claude Thompson, Planner Steve Ahrens Mike Sferra, Development Services William Chapman Chris Holsted, City Engineer Carter Porter Tommy Pulliam Consultant Present: Tony Snider Jim Jenks, Hogan Corporation Gary Wiseman Committee Members Absent: Phillip Tramell CALL TO ORDER Chairman George called the Meeting to order at 8:15 p.m. CITIZEN PARTICIPATION No one was present to speak. CONSENT AGENDA ITEMS 1. Consider and act upon approval of the Minutes of the January 16, 2001 meeting. Motion to approve was made by Ahrens, seconded by Snider. Motion passed 7-0. ACTION ITEMS 1. Review Land Use and Population Assumptions IFAC Meeting February 6, 2001 Page 2 Thompson reported that staff and consultant has reviewed the estimates for future population and land use demands, and remains comfortable with the recommendations which were tentatively approved by the Committee at the January 8 meeting. He said that the annual absorption rate for housing should continue to be around 400 dwelling units, and that higher population estimates (suggested earlier by some Committee members) could not be absorber by the market. The currently platted but undeveloped residential lots are not expected to be fully developed during the ten-year projection period, and these will account for much of the population growth. This current and anticipated subdivision activity also represents a substantial portion of Wylie's remaining developable land as well as some new annexation, and there is not sufficient available land to support significantly larger-than-estimated populations. 2. Consider Capital Improvements Plan Consulting engineer Jim Jenks, of the Hogan Corporation, distributed and explained maps and cost tables illustrating expansions to water and wastewater systems required to serve the ten-year population projection. These plans also illustrate existing facilities and anticipate system requirements for the ultimate system required for complete build-out population. Ahrens asked if funds could be reallocated to other projects if not need as anticipated by the CIP. Jenks and Thompson responded that it is possible that some reallocation is allowable, but that it depends on the specific intent and wording of the bond programs and impact fee extractions. This limited flexibility is the reason why the future cost estimates need to be as defensible as possible. Snider asked if inflation of costs has been included in the estimates. Jenks responded that future inflation rates are based on local trends within the construction industry. He said that the cost of interest to finance the projects has also been included. These are best estimates and are subject to adjustment. Wiseman asked how the costs can be adjusted if population is less or more than anticipated. Jenks responded that impact fees most be used for improvements caused by the development which pays them, so that there is limited flexibility to use surplus funds elsewhere, and the fee schedule can be adjusted if income is found to be lower or higher than costs. Members asked if the ten-year plans can be further broken down to illustrate an annual or fewer- year demand. Jenks said that more exact timing of the projected improvements can not be more closely estimated, because their need depends on the timing of private development which the improvements are to support. IFAC Meeting February 6, 2001 Page 3 Jenks discussed the estimated recoverable costs, and said that these were still being modified. This calculation must include the best estimate of future costs as well as that portion of the costs which is generated by the new private development providing the fees. He said that this estimate will be complete and a complete report compiled for discussion at the next meeting. Members said that dependable estimates of inflation and interest should be included in the estimates. Thompson said that one more meeting will be required of the Committee in order to give final review and endorsement to the final complied and modified document. The document will then be forwarded to the City Council for consideration. The document must be available for public review and the public hearing advertised for a period of 30 days prior to the Council adopting the new fee schedule. Some modification can be considered during this review period prior to the Council hearing and adoption. ADJOURNMENT There being no further discussion, the meeting was adjourned at 9:05 p.m. 1\k' C.JA. 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The City of Wylie instituted a development impact program in June of 1990. Wylie has revised its development impact fee program periodically as required by the State enabling legislation. The State legislation requires that the impact fees be based on sound assumptions of future land use and population growth and that these assumptions be regularly updated. It is the purpose of this report to document the methodology used for establishing the land use and population assumptions utilized to set the City of Wylie's impact fee structure. The report presents a reasoned estimation of Wylie's future growth and, therefore, demand for public utilities and infrastructure for the time period from 2000 to 2010. For purposes of determining a fair impact fee structure, these development growth projections are based on assumptions of the type, location, quantity and timing of various future land uses in the community. These assumptions will become the basis for the preparation of capital improvement plans for water and wastewater facilities which are to be funded by impact fees. This report investigates several major indicators of physical development and population growth within the service area of Wylie's water and wastewater systems and, therefore, the area subject to impact fees. This service area includes the majority of the area within the present City Limits and a minor part of the City's Extraterritorial Jurisdictional Area. BASE DATA INVENTORY These assumptions of future land use and population growth take into consideration several factors influencing development patterns, including: 1. The character, type, density and quantity of existing development. 2. The history and pattern of private development. 3. Existing zoning patterns which direct land use patterns. 1 4. The Comprehensive Plan and recommended Future Land Use. 5. The availability and character of vacant land for future expansion. 6. The capacity of the City to accommodate land uses and population. LAND USE: Every parcel of land within the water and wastewater service area has been classified according to its land use. A field survey was conducted in 1990 to support the initial formulation of impact fees. This information was updated for a revision to the Impact Fee Land Use Assumptions in 1996 by using City records of zoning changes and building permits. The land use inventory was again completely updated in 1999 as a base for preparation of the revised Comprehensive Plan. Table 1 shows a summary of existing land uses for the service area updated as of December 2000. The total land within the service area is 10,126 acres. Of this total, 3,097.67 acres, or 37.78 percent of the total service area, are developed. Developed land uses are categorized by the type-groups by which impact fees are charged. A graphic presentation of existing land use patterns is shown on the Existing Land Use map in the Comprehensive Plan. TABLE 1 EXISTING LAND USE - 2000 Land Use Acres Percent of Percent of Category Used Developed Area Total Area Low- & Medium-Density Residential 1,777.48 46.5 17.55 High-Density Residential 283.53 7.4 2.8 Retail & Office 182.27 4.8 1.8 Industrial & Utilities 398.71 10.4 3.94 Parks & Open Space 455.67 11.9 4.5 Street Rights-of-Way 725.28 19.0 7.16 Total Developed 3,822.94 100 (37.75) Vacant—Agriculture & Floodplain 6,302.4 62.22 Total Area 10,125.34 100 2 BUILDING PERMITS: When Impact Fees were first established in 1990, there were 3,499 dwellings within the Wylie service area, comprised of single-family detached, duplex, mobile home, apartment and townhouse units. Between 1990 and 1996, 959 building permits for single-family dwellings had been issued, bringing the total estimated dwelling units to 4,458. Table 2 reflects the steady growth in the issuance of single-family building permits since that last report of land use assumptions in 1996. Adding these units to the 1996 housing stock, it is estimated that there are currently a total of approximately 5,838 residential dwelling units within Wylie's service area. At an average of 2.3 persons per household, these existing dwelling units can support a current population of approximately 13,427 persons. TABLE 2 SINGLE-FAMILY BUILDING PERMITS TRENDS 1996 -2000 1996 1997 1998 1999 2000 96-00 Total 125 203 300 367 385 1,380 In addition to residential land for dwellings, these Wylie residents use additional other land for work places, shopping, schools and leisure, etc. The current relationship of land uses to population within Wylie is shown by Table 3, as a ratio of land used per 100 persons of the existing population. TABLE 3 CURRENT UTILIZATION OF LAND BY THE POPULATION Acres/100 Land Use Category Acres Used Persons (Pop. 13,250) Low- & Medium-Density Residential 1,777.48 13.41 High-Density Residential 283.53 2.14 Retail & Office 182.27 1.38 Industrial & Utilities 398.71 3.01 Parks & Open Space 455.67 3.44 Street Rights-of-Way 725.28 5.47 Total Developed 3,822.94 28.85 3 POPULATION: The U.S. Census provides an accurate count of population every ten years. Unfortunately, the 2000 Census counts have not been made available at the time this publication was compiled. For each year between these census counts, the North Central Texas Council of Governments estimates population for regional municipalities by compiling the number of new dwelling units recorded by building permits and multiplying this number by the average household size as determined by the last census. Wylie reflects steady growth in population during the last three decades, as have Collin County and the nine-County North Central Texas region. Wylie's population growth potential is closely related to and determined by that of the larger area of which it is a part. NCTCOG estimates the current population of Wylie to be 13,250 persons. Table 4 illustrates the historic and projected growth of Wylie and the region. TABLE 4 POPULATION TRENDS Year & Source 9-County Area Collin County Wylie 1970 Census 2,351,560 66,820 2,675 1980 Census 2,930,545 144,576 3,152 1990 Census 3,885,415 264,036 8,716 2000 NCTCOG 4,851,883 486,806 13,250 2010 NCTGOG 6,792,636 681,528 18,550 PROJECTIONS Based upon the basic development-related information discussed above, estimates of the amount of land which may logically be expected to develop in the near future as well as the population which that land use can support may be projected with some confidence. The following discussion reflects the anticipated growth of Wylie at ultimate or complete build-out as well as the ten-year future target as required by the Impact Fee enabling legislation. ULTIMATE PROJECTIONS In order to provide a basis of calculation for Master Plans for water and wastewater services to Wylie's potential total population, as well as to ensure that the required 10-year growth and service projections of the Capital Improvements Program do not exceed the total development potential of the service area at build-out when all of the developable land within Wylie is utilized, it was necessary to determine the full or ultimate development potential for the service area. These projections include both the ultimate development pattern (as recommended by the Comprehensive Plan) and the population which those land uses will support. 4 LAND USE: Ultimate land utilization was projected based upon the recommended patterns and intensities of the Comprehensive Plan. Acreages were calculated for individual land use categories as proposed on the Future Land Use Map, and according to the current ratios reflected on Table 1. Floodplain which cannot be developed was calculated into the Open Space category or into the acreage of the adjoining uses. These land use projections for the totally developed community at build-out are shown on Table 5. TABLE 5 LAND USE AT ULTIMATE DEVELOPMENT PROJECTIONS Land Use Category Acres Low- & Medium-Density 4,708.6 Residential High-Density Residential 749.3 Retail & Office 486.0 Industrial & Utilities 1,053.1 Parks & Open Space 1,205.0 Street Rights-of-Way 1924.0 Total Developed 10,126 POPULATION: The above land use projections estimate that approximately 4,708.6 acres of land will be used for low- and medium-density residential use at build-out. For purposes of estimating population for this low- and medium-density residential use, a factor of 4.3 dwelling units per acre is used. The ultimate anticipated high- density residential use is 749.3 acres, and can be expected to develop at a maximum of 15 units per acre. The following summarizes the estimated dwelling unit projections: Low- and Medium-Density Residential - 4,708.6 acres at 4.3 units / acre = 20,247 units High Density Residential - 749.3 acres at 15.0 units /acre = 11,239 units Total Units at Build-Out - 31,486 units The ultimate future population will be dependent upon the number of persons per dwelling unit or household as well as the number of dwellings developed (31,486). The current household size of the Wylie population is estimated by NCTCOG to be 2.3 persons per household, and this factor is used for purposes of estimating the ultimate population holding capacity. The estimated population at build-out using these factors is 72,418 persons. 5 TEN-YEAR PROJECTIONS The State legislation enabling local municipalities to establish development impact fees requires that land use and population assumptions/projections be calculated for at least a ten-year future period. The following describes the projections for Wylie to the year 2010. POPULATION: During the past ten-year period, Wylie has added an average of 230 single-family dwelling units per year. At the current average household size of 2.3 persons, this past growth represents 5,290 persons. If Wylie continues to grow at this historic rate, the population in the year 2010 will be 18,540. The North Central Texas Council of Governments estimates that the 2010 population of Wylie will be 18,550 persons. This figure reflects approximately a 40 percent increase over the estimated current population. These ten-year growth estimates, produced by different methodologies, compare favorably and are presumed reliable. Therefore, the NCTCOG estimate of 18,550 will be used to project land use needs and water and wastewater demands. LAND USE: The amounts of new land required to serve this year-2010 population of 18,550 persons is an additional total of 1,542.3 acres. In response to recent development trends, residential uses are projected at 3 dwellings per acre for low- and medium-density and 10 dwellings per acre for high-density. All other land uses are estimated at the utilization ratios of the current population (Table 3). The total new land development anticipated to be required to serve the year-2010 population is reflected on Table 6. TA:LE 6 REQUIRED FUTURE LAND (ACRES) FOR YEAR 2010 Land Use Acres Used by Acres Required for Additional Acres to Categories Existing 13,250 2010 Population of be Developed Persons 18,550 Between 2000 & 2010 Low- & Medium- Density Resid. 1,777.5 2,278.4 500.89 High-Density Residential 283.5 363.6 80.14 Retail & office 182.3 256.0 73.7 Industrial & Utilities 398.7 558.4 159.7 Parks & Open Space 455.7 894.1 438.4 Street Rights-of- Way 725.3 1,014.7 289.4 Total Developed Land 3,822.9 5,365.3 1,542.3 6 ASSUMPTIONS The following assumptions both support and may be drawn from the previously discussed existing base information and future projections 1. Future land uses will be developed generally as allocated and at intensities defined and recommended by the Comprehensive Plan. 2. Future populations will reflect the same or similar household characteristics and land development requirements as the current population. 7