HomeMy WebLinkAboutRes 2005-11-04 Requesting Amendment Allow Municipalities to Assess Fire Impact Fees.pdfCITY OF ANNA, TEXAS
RESOLUTION NO. 2005-11-04
A RESOLUTION REQUESTING A TEXAS LOCAL GOVERNMENT CODE
AMMENDMENT ALLOWING MUNICIPALITIES THE OPTION OF ASSESSING
FIRE IMPACT FEES.
WHEREAS, Texas cities rate of population growth, exceeds the municipality's
ability to maintain minimum fire protection service levels. Collin County has
experienced population growth that leads many of the nation's counties.
Specifically, the City of Anna located in Collin County, has experienced a 51%
population growth rate in 2003-2004, 28% to date 2004-2005 population
growth rates.
WHEREAS, Texas cities revenue from growth of municipality in general comes
from Ad Valorem tax, sales tax, franchise taxes, licenses and permits, Inter-
governmental (Grants) and fees. Municipality revenues have increased in line
with the populations' growth; however the funds received through this increase
are divided among all departments within the city.
WHEREAS, Texas cities current impact fees allowed by Texas Local
Government Code are; road, water, sewer, and storm water, the City of Anna
currently collects water and sewer impact fees only. These funds are segregated
from other city funds and specifically utilized for water and sewer capital
expenses, caused by increased development. Utilizing these funds reduces the
debt burden of the city by reducing long -tens capital expense debt.
WHEREAS, Texas cities collect fees that are specifically used for capital
expenditures. However, the impact fees do not cover all expenditures of water
and sewer cost incurred by increased development, Once the initial
infrastructure is in place, the city must maintain the service. This cost will be
covered by the increase in population and the Ad Valorem taxes.
WHEREAS, Texas Local Government Cade does not specifically give a
municipality the right to charge a capital expenditure fire impact fee for
development of residential or commercial property. Currently 27 states have
legislation enabling impact fees local government can enact. Of the 27 states, 21
state legislators have passed law to allow "fire impact fees."
WHEREAS, Texas cities fire department capital infrastructure for critical facilities
is tax -supported debt. The fire department is then in a position of competing with
other departments for limited resources. A fire impact fee would provide speck
funding for fire department capital infrastructure.
Res lulim 2005-11-04 SlgWft assessing Fire Impact Fees 1 11-22-05
WHEREAS, Texas cities would benefit by implementing a "tire impact fee" to
provide new residents the same level of service while maintaining the current
level of fire protection prior to development. Current residents of a municipality
would not be required to bear costs of all capital expenditures in a community
that may have had excellent fire protection prior to the growth. Additionally, the
quality of life is insured by the ability to continue to provide fire protection, when
necessary.
WHEREAS, Texas cities long-term solution for the municipality of Anna would be
the approval of legislation that allows fire impact fees to be assessed. By
passing legislation for "fire impact fees", municipalities in Texas, including the
City of Anna would then have the ability for long term to fund capital expenditures
for critical facilities like fire stations. These expenditures would be calculated via
economic study. The study would detail the capital to be purchased with the
funds collected. This fee, by law, is calculated using a standard format dictated
by government code. This would prevent misuse of funds requiring the money to
be spent for capital expenditures such as fire stations.
WHEREAS, without a Texas Local Government code amendment that allows
'fire impact fees'for critical facilities like fire stations, the cycle will continue until
this municipality builds out. Simply, fire protection, and the security it provides, is
an essential quality of life to citizens of Texas. Legislation allowing a municipality
to address increases of development to fire protection service levels through 'fire
impact fees" helps struggling municipalities deal with sudden large increases in
development, maintain :Homeland Security" and the health and safety of the
community.
NOW, therefore, BE IT RESOLVED by the City Council of the City of Anna,
Texas that the City Council support legislation to give Texas cities legislative
authority to collect "fire impact fees" for capital expenditure of fire stations.
PASSED and APPROVED on this the 22nd day of November, 2005, by the
following vote of the members of the City Council as present.
AYES 5 NAYS 0 ABSTAINED 0
ATTESTED: APPROVED:
N a Wilkison, City Secretarynneth Pelham, Mayor
RewrI.d.s 2005-11-04 SYPPIA assessing Fire Impar] Foes 2 11-22-05