Fiscal Note
The proposed ordinance amendment updates the ordinance to reflect changes in state law and incorporate existing City collection practices. Wis. Stat. § 66.0617(6)(g), stipulates if the total amount of impact fees due for a development will be more than $75,000, a developer may defer payment of the impact fees for four (4) years from the date of the issuance of the building permit or until six (6) months before the City incurs the costs related to the development for which the fee was imposed, whichever is earlier. If a developer choses to defer the payment, the City will lose interest related to the fee that would have been earned in the city treasury. The fiscal impact of the change depends on how many developers chose to defer payment, interest rates, and when the Parks Division needs the fees to pay for construction.
Parks Division staff will need to monitor approved deferred payment requests and letters of credit and anticipates increased administrative time to do so.
An estimate of the fiscal impact cannot be determined at this time, but it is anticipated most developers will not chose this option because it restricts their assets.
Title
Amending Sections 20.09(1) and 20.11(1) of the Madison General Ordinances to bring the City’s Impact Fee Collection and Refund Procedures in line with practice and recent State law changes.
Body
DRAFTER'S ANALYSIS: This ordinance makes changes to the City’s impact fee collection ordinance in response to 2017 Wis. Act 243, as well as to incorporate existing City collection practices. New subdivision (b) reflects existing City practices where alternate forms of payment are sometimes accepted for certain larger development. New subdivision (d) directly incorporates a deferred impact fee option mandated by recent changes to State law. Finally, the impact fee refund procedure has been updated, as required by State law, to allow for refunds of impact fees to developers in the event that the City does not u...
Click here for full text