FY 2025 BUDGET BOOK - Flipbook - Page 69
➢ Reduced Monthly Payments: Refinancing a lower loan amount may not only save
money over the life of the loan but also result in reduced monthly payments. This
can free up cash flow for other expenses or investments.
➢ Improved Loan Terms: The City can use land loan refinancing to modify loan terms.
For example, the City can opt for a shorter loan term to pay off the debt more quickly
or choose a longer term to reduce monthly payments.
➢ Access to Equity: If the value of the land has increased since the original loan was
secured, the City may be able to tap into the land’s equity. This can provide funds
for other investments, or property improvements.
➢ Improved Credit Rating: Successful refinancing of the land loan with better terms
can have a positive impact on the City’s credit rating. This can lead to improved
credit scores and better access to credit in the future.
The sale of the land or refinancing of the loan should be approached with careful
consideration and a clear understanding of the potential benefits and costs involved.
6. Impact Fees Rate Study: Impact fees are being reviewed by the consultant conducting
the water and wastewater rate study. Impact fees haven’t been reviewed for the past
two decades. In FY 2024/25 the City will likely implement new impact fees based on the
results of the study. A comprehensive impact fee study is a crucial undertaking for the
City and has far-reaching implications for both the City and the community it serves.
Here are some benefits to consider regarding the City’s impact fee study:
➢
Revenue Generation: The primary objective of an impact fee study is to assess
and quantify the impact of new developments on the City’s infrastructure and
services. Ultimately, the fees that developers should pay to mitigate these impacts
can be validated. This generates revenue that can be used to fund future expansion
related infrastructure projects and maintain service levels.
➢
Infrastructure Investment: Impact fees are typically earmarked for specific
purposes, such as expansion of roads, utilities, parks, or public facilities. A rate
study helps identify the infrastructure needs arising from population growth and new
developments, ensuring that the City can accommodate its expanding population
effectively.
➢
Economic Analysis: A rate study includes an economic analysis to ensure that the
impact fees being charged are in line with new development activity. This analysis
considers factors like housing affordability, economic competitiveness, and market
dynamics.
➢
Public Input: Community engagement is a crucial component of the rate study
process. Public hearings, meetings, and feedback allow residents, developers, and
stakeholders to express their views and concerns. This input can assist in shaping
the study’s recommendations.
➢
Planning for Growth: An impact fee study is inherently forward-looking. It considers
projected growth patterns and population increases to ensure that infrastructure is
in place timely to accommodate future needs.
➢
Financial Sustainability: By accurately assessing the costs associated with growth,
a rate study contributes to the financial sustainability of the City. It prevents the
burden of new infrastructure costs from falling solely on existing residents and
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