Las Cruces Utilities Impact Fee Report Utilities Development Fee Study
Prepared for:
Las Cruces Utilities
City of Las Cruces, New Mexico
November 18, 2019
Prepared by:
TischlerBise
FISCAL I ECONOMIC I PLANNING
4701 Sangamore Road
Suite S240
Bethesda, Maryland 20816
800.424.4318
www.tischlerbise.com
TischlerBise
FISCAL I ECONOMIC I PLANNING
TischlerBise
4701 Sangamore Road
Suite S240
Bethesda, Maryland 20816
800.424.4318
www.tischlerbise.com
November 2019
Utilities Development Fee Study
City of Las Cruces, New Mexico
Table of Contents
EXECUTIVE SUMMARY....................................................................................................... 1
OVERVIEW....................................................................................................................................................................1
SUMMARY OF CAPITAL IMPROVEMENTS AND IMPACT FEES....................................................................................................1
Figure 1.Summary of City of Las Cruces Impact Fee Methodologies...................................................................2
EXACTIONS...................................................................................................................................................................2
CREDITS.......................................................................................................................................................................2
MAXIMUM ALLOWABLE IMPACT FEES................................................................................................................................2
Figure 2.Summary of Maximum Allowable Utilities Impact Fees........................................................................3
INTRODUCTION TO DEVELOPMENT FEES............................................................................4
DEFINITION...................................................................................................................................................................4
LEGALFRAMEWORK.......................................................................................................................................................4
REQUIREDFINDINGS.......................................................................................................................................................5
UNIQUE REQUIREMENTS OF THE NEW MEXICO DEVELOPMENT FEES ACT.................................................................................6
METHODOLOGIESAND CREDITS........................................................................................................................................7
GENERIC IMPACT FEE CALCULATION..................................................................................................................................8
LAND USE ASSUMPTIONS/DEMAND INDICATORS............................................................... 9
DEMANDFACTORS.........................................................................................................................................................9
Figure 3. City of Las Cruces Persons per Housing Unit........................................................................................10
RESIDENTIALDEVELOPMENT..........................................................................................................................................10
Figure 4. City of Las Cruces and Dona Ana County Historical Population Growth(2009 to 2019).....................10
Figure 5. City of Las Cruces and Dona Ana County Projected Population Growth(2019-2029).........................11
Figure 6. City of Las Cruces Current Housing Unit Estimate(2019)....................................................................11
Figure 7. City of Las Cruces Housing Unit Projections(2019-2029)....................................................................12
NONRESIDENTIAL DEVELOPMENT....................................................................................................................................12
Figure 8. Employee and Building Area Ratios(ITE)............................................................................................13
Figure 9. 2015 Employment and Distribution by Industry Type.........................................................................13
Figure 10. 2019 Employment and Distribution by Industry Type.......................................................................14
Figure 11. Nonresidential Development Projections..........................................................................................15
Figure 12.Summary of Land Use Assumptions..................................................................................................15
DEMAND FOR WATER AND WASTEWATER FACILITIES..........................................................................................................16
Figure 13. Projected Water Demand..................................................................................................................16
Figure 14. Projected Wastewater Demand........................................................................................................17
WATER............................................................................................................................ 18
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City of Las Cruces, New Mexico
METHODOLOGY...........................................................................................................................................................18
WATERDEMAND.........................................................................................................................................................18
Figure 15. Water Usage by Customer Class(2018)and Levels of Service..........................................................19
Figure 16. Water Facilities Ratio of Service Units to Development Units...........................................................20
Figure 17. Current(2019)Average Daily Water Demand by Land Use..............................................................21
Figure 18. Water Level of Service/Demand Factors(Base Year 2019)...............................................................21
Figure 19. Projected Water Demand..................................................................................................................22
SERVICEAREA.............................................................................................................................................................22
WATER SYSTEM LEVELS OF SERVICE AND COST FACTORS.....................................................................................................23
Figure 20. Water Supply Level of Service............................................................................................................23
Figure 21. Water Usage and Capacity................................................................................................................24
Figure 22. Water Supply Cost Factors................................................................................................................24
Figure 23. Water Transmission Lines Level of Service and Cost Factor..............................................................25
Figure 24. Water Valves Level of Service and Cost Factor..................................................................................26
Figure 25. Water Booster Pumps Level of Service and Cost Factor....................................................................27
Figure 26. Water Storage Level of Service..........................................................................................................28
Figure 27. Water Storage Cost Factor................................................................................................................29
Figure 28. Water Development Level of Service and Cost Factor.......................................................................29
Figure 29.Water Quality Lab Level of Service and Cost Factor. Water Portion..................................................30
CREDIT ANALYSIS FOR WATER SYSTEM IMPROVEMENTS......................................................................................................30
Figure 30. Water Principal& Interest Payment Credit Evaluation.....................................................................31
PROPOSEDIMPACT FEES FOR WATER..............................................................................................................................32
Figure 31. Proposed Water Impact Fees............................................................................................................32
Figure 32. Proposed Water Impact Fees:All Meter Types and Sizes..................................................................33
Figure 33. Proposed Water Impact Fees Comparison to Current Water Fees....................................................33
WATER SYSTEM GROWTH-RELATED NEEDS......................................................................................................................34
Figure 34. Water System Needs to Accommodate Growth................................................................................34
PROJECTED REVENUE FROM WATER IMPACT FEE...............................................................................................................35
Figure 35. Projected Revenue from Water System Impact Fee..........................................................................35
WASTEWATER................................................................................................................. 36
METHODOLOGY...........................................................................................................................................................36
WASTEWATERDEMAND................................................................................................................................................36
Figure 36. Wastewater Usage by Customer Class(2018)..................................................................................37
Figure 37. Wastewater Facilities Ratio of Service Units to Development Units.................................................38
Figure 38. Current(2019)Average Daily Wastewater Demand.........................................................................39
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Figure 39. Wastewater Demand Factors(Base Year 2019)................................................................................39
Figure 40. Projected Wastewater Demand........................................................................................................40
SERVICEAREA.............................................................................................................................................................40
WASTEWATER SYSTEM LEVELS OF SERVICE AND COST FACTORS............................................................................................41
Figure 41. Wastewater Treatment Level of Service............................................................................................41
Figure 42. Wastewater Treatment Cost Factors................................................................................................41
Figure 43. Wastewater Collection Lines Current Level of Service and Cost Factor.............................................42
Figure 44. Wastewater Lift Stations Level of Service and Cost Factor................................................................43
Figure 45.Water Quality Lab Level of Service and Cost Factor. Wastewater Portion........................................44
CREDIT ANALYSIS FOR WASTEWATER SYSTEM IMPROVEMENTS.............................................................................................44
Figure 46. Wastewater Principal& Interest Payment Credit Evaluation............................................................45
PROPOSED IMPACT FEES FOR WASTEWATER.....................................................................................................................46
Figure 47. Proposed Wastewater Impact Fees...................................................................................................46
Figure 48. Proposed Wastewater Impact Fees:All Meter Types and Sizes........................................................47
Figure 49. Proposed Wastewater Impact Fees Comparison to Current Wastewater Fees.................................47
WASTEWATER SYSTEM GROWTH-RELATED NEEDS.............................................................................................................48
Figure 50. Wastewater System Needs to Accommodate Growth......................................................................48
PROJECTED REVENUE FROM WASTEWATER IMPACT FEE......................................................................................................49
Figure 51. Projected Revenue from Wastewater System Impact Fee.................................................................49
IMPLEMENTATION AND ADMINISTRATION...................................................................... 50
APPENDIX: NEW MEXICO DEVELOPMENT FEES ACT.......................................................... 51
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EXECUTIVE SUMMARY
Overview
TischlerBise was retained by the City of Las Cruces, New Mexico,to prepare an update to the City's Utilities
impact fees.The purpose of this study is to meet the requirements of the New Mexico Development Fees
Act. The Act provides local government the authority to impose fees and controls the amount, timing,
method of assessment,and use of the funds.This analysis is organized to address the requirements of the
Development Fees Act, and in so doing, define an equitable and proportionate assessment that will help
fund the requisite facilities, without undue burden on new or existing development.
Development fees (also referred to as impact fees) are one-time payments used to construct system
improvements needed to accommodate new development. An impact fee represents new growth's fair
share of capital facility needs. By law, impact fees can only be used for capital improvements, not
operating or maintenance costs. Impact fees are subject to legal standards, which require fulfillment of
three key elements: need, benefit, and proportionality.
■ First, to justify a fee for public facilities, it must be demonstrated that new development will
create a need for capital improvements.
■ Second, new development must derive a benefit from the payment of the fees (i.e., in the form
of public facilities constructed within a reasonable timeframe).
■ Third, the fee paid by a particular type of development should not exceed its proportional share
of the capital cost for system improvements.
TischlerBise documented appropriate demand indicators by type of development for the Utilities' impact
fees, which includes both Water and Wastewater impact fees. Specific capital costs have been identified
using local data and costs. This report includes summary tables indicating the specific factors used to
derive the impact fees.These factors are referred to as level of service standards.
Summary of Capital Improvements and Impact Fees
The impact fees calculated for the City of Las Cruces represent the highest amount feasible by meter size,
or maximum allowable amounts, which represents new growth's fair share of the cost for water and
wastewater capital facilities. The City may adopt fees that are less than the amounts shown. However, a
reduction in impact fee revenue will necessitate an increase in other revenues, a decrease in planned
capital expenditures, and/or a decrease in levels of service.
Water and Wastewater impact fees are based on information provided by the Las Cruces Utilities. A
summary of methodologies used in the analysis is provided below in Figure 1.
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Figure 1.Summary of City of Las Cruces Impact Fee Methodologies
Fee Category Service Area I Incremental Expansion I Plan-Based Cost Recovery Cost Allocation
Water Wells/Supply
Utility Service Water Water Support
Water Water Transmission Gallons
Area Development Facilities
Water Storage
Utility Service Wastewater Treatment Wastewater
Wastewater Area Wastewater Collection N/A Support Gallons
System Facilities
Exactions
Exactions come in many forms and are used to mitigate capital facility needs. Developers may be required
to construct infrastructure or municipal buildings, make a cash payment (e.g., impact fees), and/or
dedicate land for public use. Also, credits or agreements can be made in which fees are waived when the
developer constructs facilities that would have been constructed by the municipality. Exactions are meant
to offset growth-related capital costs and are not used to supplement operating expenditures.
Credits
A general requirement common to impact fee methodologies is the evaluation of credits. Two types of
credits should be considered, future revenue credits and site-specific credits. Revenue credits may be
necessary to avoid potential double payment situations arising from a one-time impact fee plus the
payment of other revenues (e.g., utility rates) that may also fund growth-related capital improvements.
Because new development may provide front-end funding of infrastructure,there is a potential for double
payment of capital costs due to future payments on debt for public facilities. Credits for existing principal
and interest payments are included in the City of Las Cruces' Utilities impact fees because there is
outstanding debt for the infrastructure categories in the fee program after the current fiscal year.
The second type of credit is a site-specific credit for system improvements that have been included in the
Utilities impact fee calculations. Policies and procedures related to site-specific credits for system
improvements should be addressed in the ordinance that establishes the development fees. However,
the general concept is that developers may be eligible for site-specific credits only if they provide system
improvements that have been included in the impact fee calculations. Project improvements normally
required as part of the development approval process are not eligible for credits against impact fees.
Maximum Allowable Impact Fees
A summary of maximum supportable impact fees for Water and Wastewater for the City of Las Cruces are
shown in Figure 2.The fees represent the highest amount allowable for each type of housing unit, which
represents new growth's fair share of the cost for utility capital facilities providing additional capacity.
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Also shown is a comparison to current Water and Wastewater impact fees and the percentage change.As
shown, proposed Water impact fees are calculated to be lower than current fees and Wastewater impact
fees are calculated to be higher than current fees.
The City may adopt fees that are less than the amounts shown. However, a reduction in impact fee
revenue will necessitate an increase in other revenues, a decrease in planned capital expenditures,
and/or a decrease in levels of service.
Figure 2.Summary of Maximum Allowable Utilities Impact Fees
WATER I WASTEWATER TOTAL
Meter Size(inches) Proposed Current Change Proposed Current Change Proposed Current Change
Fee Fee Fee Fee I Fee
$2,125 $2,42012.2% $2,726 $1,943 40.3% $4,851 $4,36311.2%
See each respective chapter for fee schedules by meter type and size.
Please note, calculations throughout this report are based on an analysis conducted using MS Excel
software. Results are discussed in the memo using one- and two-digit places (in most cases). Figures are
typically either truncated or rounded. In some instances, the analysis itself uses figures carried to their
ultimate decimal places, therefore, the sums and products generated in the analysis may not equal the
sum or product if the reader replicates the calculation with the factors shown in the report (due to the
rounding of figures shown, not in the analysis).
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INTRODUCTION TO DEVELOPMENT
Definition
Development fees, also known as impact fees or development impact fees, are one-time payments used
to fund capital improvements necessitated by new growth. Impact fees have been utilized by local
governments in various forms for at least fifty years. Impact fees do have limitations and should not be
regarded as the total solution for infrastructure financing needs. Rather, they should be considered one
component of a comprehensive portfolio to ensure adequate provision of public facilities with the goal of
maintaining current levels of service in a community. Any community considering development impact
fees should note the following limitations:
■ Impact fees can only be used to finance capital infrastructure and cannot be used to finance
ongoing operations and/or maintenance and rehabilitation costs;
■ Impact fees cannot be deposited in the local government's General Fund. The funds must be
accounted for separately in individual accounts and earmarked for the capital expenses for which
they were collected; and
■ Impact fees cannot be used to correct existing infrastructure deficiencies unless there is a funding
plan in place to correct the deficiency for all current residents and businesses in the community.
Legal Framework
U.S. Constitution. Like all land use regulations, development exactions—including impact fees—are
subject to the Fifth Amendment prohibition on taking of private property for public use without just
compensation. Both state and federal courts have recognized the imposition of impact fees on
development as a legitimate form of land use regulation, provided the fees meet standards intended to
protect against regulatory takings. To comply with the Fifth Amendment, development regulations must
be shown to substantially advance a legitimate governmental interest. In the case of impact fees, that
interest is in the protection of public health, safety, and welfare by ensuring that development is not
detrimental to the quality of essential public services.
There is little federal case law specifically dealing with impact fees, although other rulings on other types
of exactions(e.g., land dedication requirements)are relevant. In one of the most important exaction cases,
the U. S. Supreme Court found that a government agency imposing exactions on development must
demonstrate an "essential nexus" between the exaction and the interest being protected. (See Nollan v.
California Coastal Commission, 1987.) In a more recent case (Dolan v. City of Tigard, OR, 1994),the Court
ruled that an exaction also must be "roughly proportional" to the burden created by development.
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However, the Dolan decision appeared to set a higher standard of review for mandatory dedications of
land than for monetary exactions such as development impact fees.
Required Findings
There are three reasonable relationship requirements for impact fees that are closely related to "rational
nexus" or"reasonable relationship" requirements enunciated by a number of state courts. Although the
term "dual rational nexus" is often used to characterize the standard by which courts evaluate the validity
of development impact fees under the U.S. Constitution, we prefer a more rigorous formulation that
recognizes three elements: "impact or need," "benefit," and "proportionality." The dual rational nexus
test explicitly addresses only the first two, although proportionality is reasonably implied, and was
specifically mentioned by the U.S.Supreme Court in the Dolan case.The reasonable relationship language
of the statute is considered less strict than the rational nexus standard used by many courts. Individual
elements of the nexus standard are discussed further in the following paragraphs.
Demonstrating an Impact.All new development in a community creates additional demands on some, or
all, public facilities provided by local government. If the supply of facilities is not increased to satisfy that
additional demand, the quality or availability of public services for the entire community will deteriorate.
Impact fees may be used to recover the cost of development-related facilities, but only to the extent that
the need for facilities is a consequence of development that is subject to the fees. The Nollan decision
reinforced the principle that development exactions may be used only to mitigate conditions created by
the developments upon which they are imposed.That principle clearly applies to impact fees. In this study,
the impact of development on improvement needs is analyzed in terms of quantifiable relationships
between various types of development and the demand for specific facilities, based on applicable level-
of-service standards.
Demonstrating a gene it. A sufficient benefit relationship requires that facility fee revenues be
segregated from other funds and expended only on the facilities for which the fees were charged. Fees
must be expended in a timely manner and the facilities funded by the fees must serve the development
paying the fees. However, nothing in the U.S. Constitution or the State enabling Act requires that facilities
funded with fee revenues be available exclusivelyto development paying the fees. In other words,existing
development may benefit from these improvements as well.
Procedures for the earmarking and expenditure of fee revenues are typically mandated by the State
enabling act, as are procedures to ensure that the fees are expended expeditiously or refunded. All of
these requirements are intended to ensure that developments benefit from the fees they are required to
pay.Thus, an adequate showing of benefit must address procedural as well as substantive issues.
Demonstrating Proportionality. The requirement that exactions be proportional to the impacts of
development was clearly stated by the U.S. Supreme Court in the Dolan case (although the relevance of
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that decision to impact fees has been debated) and is logically necessary to establish a proper nexus.
Proportionality is established through the procedures used to identify development-related facility costs,
and in the methods used to calculate impact fees for various types of facilities and categories of
development. The demand for facilities is measured in terms of relevant and measurable attributes of
development. For example, the need for school improvements is measured by the number of public
school-age children generated by development.
Unique Requirements of the New Mexico Development Fees Act
Impact fees in New Mexico are governed by Article 8, Chapter 5 of New Mexico Statutes Annotated
(NMSA)—the Development Fees Act.The Act imposes certain requirements for impact fee assessment in
New Mexico, including':
■ Capital facility types that are eligible for impact fee assessment;
■ Categories of allowed and prohibited expenses;
■ Impact fee administrative procedures and capital facilities plan update requirements, including
conditions under which fees must be refunded (impact fees must, for example, be spent within
seven years of collection or refunded);
■ Requirements guiding the City's definition of an impact fee service area (the area within which
fees will be assessed);
■ Impact fee analytical requirements that call for preparation of two reports to support the
assessment — impact fee Land Use Assumptions, and this Impact Fee Capital Improvement Plan
(the IFCIP),which documents the calculation methodology and includes a schedule of impact fees
by property type.
The IFCIP includes the following:
■ The definition of the impact fee service unit — a standard unit of measure for capital facilities
demand planning;
■ A demand equivalency table that shows the rate of service unit generation(capital facility capacity
demand), by property type;
■ The number of projected service units attributable to new development (which is a way to
quantify the "impacts" of new development;
'See the Appendix for the full text of the New Mexico Development Fees Act.
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■ The cost per service unit (cost to meet demand from a unit of new development);
■ The net cost per service unit (total cost less impact fee reductions);
■ An impact fee net cost schedule that shows the net payable impact fee amount, by property type.
The Development Fees Act includes three other noteworthy provisions:
1. Platted (and un-built) lots are guaranteed, for a period of four years,the impact fee rate in effect
at the time of platting. This protection expires at the end of four years, after which the current
fee rates apply. Lots platted prior to the adoption of the impact fees in this report have no such
protection (because fees in this report have not been assessed in the past). Future impact fee
updates will have effect only for lots platted after enactment of the new fees (along with lots
platted more than four years before the update).
2. Impact fee exemption is specifically disallowed for public entities.
3. The City may waive fee assessment for "qualified affordable housing." Qualified units are those
affordable to households earning 80% or less of HUD area median income, and which have total
monthly shelter costs of less than 30%of gross household income.
Methodologies and Credits
Any one of several legitimate methods may be used to calculate impact fees. The choice of a particular
method depends primarily on the service characteristics and planning requirements for the facility type
being addressed. Each method has advantages and disadvantages in a particular situation, and to some
extent can be interchangeable, because each allocates facility costs in proportion to the needs created by
development.
Reduced to its simplest terms, the process of calculating impact fees involves two main steps: (1)
determining the cost of development-related capital improvements and (2) allocating those costs
equitably to various types of development. In practice,though,the calculation of impact fees can become
quite complicated because of the many variables involved in defining the relationship between
development and the need for facilities. The following paragraphs discuss three basic methods for
calculating development impact fees and how those methods can be applied.
Plan-Based Fee Calculation. The plan-based method allocates costs for a specified set of improvements
to a specified amount of development. The improvements are identified by a facility plan and
development is identified by a land use plan. In this method, the total cost of relevant facilities is divided
by total demand to calculate a cost per unit of demand. Then, the cost per unit of demand is multiplied
by the amount of demand per unit of development (e.g., housing units or square feet of building area) in
each category to arrive at a cost per specific unit of development (e.g., single family detached unit).
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Cost Recovery or Buy-In Fee Calculation. The rationale for the cost recovery approach is that new
development is paying for its share of the useful life and remaining capacity of facilities already built or
land already purchased from which new growth will benefit. This methodology is sometimes used for
systems that were oversized.
Incremental Expansion Fee Calculation.The incremental expansion method documents the current level
of service(LOS)for each type of public facility in both quantitative and qualitative measures, based on an
existing service standard (such as square feet per student). This approach ensures that there are no
existing infrastructure deficiencies or surplus capacity in infrastructure. New development is only paying
its proportionate share for growth-related infrastructure. The level of service standards are determined
in a manner similar to the current replacement cost approach used by property insurance companies.
However, in contrast to insurance practices, the fee revenues would not be for renewal and/or
replacement of existing facilities. Rather, revenue will be used to expand or provide additional facilities,
as needed, to accommodate new development. An incremental expansion cost method is best suited for
public facilities that will be expanded in regular increments, with LOS standards based on current
conditions in the community.
Credits. Regardless of the methodology, a consideration of "credits" is integral to the development of a
legally valid impact fee methodology. There are two types of"credits" each with specific characteristics,
but both of which should be addressed in the development of development fees. The first is a credit due
to possible double payment situations. This could occur when contributions are made by the property
owner toward the capital costs of the public facility covered by the impact fee. This type of credit is
integrated into the impact fee calculation. The second is a credit toward the payment of a fee for
dedication of public sites or improvements provided bythe developer for which the impact fee is imposed.
This type of credit is addressed in the administration and implementation of a development fee program.
Generic Impact Fee Calculation
In contrast to development exactions, which are typically referred to as project-level improvements,
impact fees fund growth-related infrastructure that will benefit multiple development projects, or the
entire jurisdiction (often referred to as "system-level" improvements).The first step is to determine an
appropriate demand indicator, or service unit, for the particular type of infrastructure. The
demand/service indicator measures the number of demand or service units for each unit of development.
For example, an appropriate indicator of the demand for utilities is meter size. The second step is to
determine infrastructure units per demand unit, often called Level-Of-Service(LOS) standards. In keeping
with the utilities example, a common standard is gallons per day per equivalent dwelling unit (EDU).The
third step in the generic impact fee formula is the cost of various infrastructure units. To complete the
utilities example,this part of the formula would establish the cost per gallon of capacity for utility capacity
improvements.
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LAND USE ' • INDICATORS
New Mexico's Development Fees Act states that land use assumptions should include a description of the
service area and projections of changes in land uses, densities, intensities, and population in the service
area over at least a five-year period (see Section 5-8-2.J). Specifically, the Development Fees Act requires
that two analytical documents be prepared before impact fees can be assessed:
1. Land use assumptions must be defined in order to project the quantity of new development in
terms of new service units anticipated over a 5-10 year period.
2. An impact fee capital improvements plan must be prepared to show how demand for added
capital facility capacity generated by new development is translated into costs, and specifically,
cost per new service unit.
Demand Factors
Person per Housing Unit Factors
Household size (persons per housing unit, PPHU) is used to quantify the demand for utility infrastructure
from a single family housing unit, which is the Equivalent Dwelling Unit (EDU) in the utility analysis. The
2010 Census did not obtain detailed information using a "long-form" questionnaire. Instead, the U.S.
Census Bureau switched to a continuous monthly mailing of surveys, known as the American Community
Survey(ACS),which has limitations due to sample-size constraints. For example,data on detached housing
units are now combined with attached single units (commonly known as townhouses).
To determine household size for a single family unit, data on population, housing units, and households
is from the U.S. Census American Community Survey, 1-Year Estimate for 2017. (Note: housing unit
estimates from ACS will not equal 100 percent counts of units, nor current estimates as provided below.
Instead, these data are used only to derive the custom PPHU factors for each type of unit).
As shown below, a single family unit has 2.43 persons in Las Cruces per the U.S. Census.
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Figure 3.City of Las Cruces Persons per Housing Unit
Type of Unit Persons Households Persons per Housing Persons .-
. . Units Housing Unit
Si ngl e Fa mi ly 78,457 27,622 2.84 32,261
Multifa mi ly 20,817 11,554 1 1.801 14,111 IL LA
Subtotal 99,274 39,176 2-5-31 46,372
Group Quarters 2,432
Tota 1 101,706
Percent Pop.in HH 98%
Source:US Census American Comm unity Survey 1-Year Estim ate,2017
Note:Single unit includes detached,attached, and mobile homes.
Residential Development
Population Growth Trends
Development fees require an analysis of current levels of service. For residential development, current
levels of service are determined using estimates of population and housing units.
Over the past decade,the City of Las Cruces has experienced slightly higher annual growth rate than Dona
Ana County. Over the past ten years, the city has grown by 9,144 residents. The city's estimated
population in 2019 is 104,427, almost half of the population of Dona Ana County.
Figure 4.City of Las Cruces and Dona Ana County Historical Population Growth(2009 to 2019)
Year Doha Ana County City of Las Cruces
Population Population
2009 205,778 95,283
2010 209,233 97,618
2011 210,179 98,327
2012 211,125 99,036
2013 212,071 99,746
2014 213,017 100,455
2015 213,963 101,164
2016 213,825 101,459
2017 215,579 101,706
2018 217,632 103,212
2019 219,686 104,427
Net Incre se •0:
Source:ESR1;Mesilla Valley MPO;Economic& Planning Systems
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Projected Population Growth
Figure 5 illustrates projected population growth through 2029. Projections are consistent with the City's
new Comprehensive Plan and provided by Economic & Planning Systems. Las Cruces' population is
estimated to grow annually at a rate of approximately 1.2 percent, resulting in a projected increase of
12,965 residents.
Figure 5.City of Las Cruces and Dona Ana County Projected Population Growth(2019-2029)
Year Dofia Ana County City of Las Cruces
Population Population
2019 219,686 104,427
2020 221,739 105,656
2021 223,793 106,900
2022 225,846 108,158
2023 227,899 109,431
2024 229,953 110,720
2025 232,006 112,023
2026 234,060 113,342
2027 236,113 114,676
2028 238,166 116,026
2029 240,220 117,392
Net Increase 20,5341 12,965
Source:ESR1;Mesilla Valley MPO;Economic&Planning Systems
Housing Unit Estimate and Projections
The current population estimate in the City of Las Cruces and the above household size and population in
household figures are used to determine the current estimate of housing units.Current number of housing
units within the City is 47,631.
Figure 6.City of Las Cruces Current Housing Unit Estimate(2019)
Population Estimate[1] 72.14,
%Population in Housing Units [2]
Population in Housing Units
Persons per Housing Unit[2]
Estimated Total Housing Units 1 47,631
[1]ESRI,Mesilla Valley MPO;Economic& Planning Systems
[2]US Census American Community Survey 1-Year Estimate,2017
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City of Las Cruces, New Mexico
Projections of housing units are shown below. Residential projections will be used to determine demand
for utilities as well as to project revenues from development fees. Housing unit projections are derived
from the population projections developed for the City's Comprehensive Plan update and the weighted
average household size identified above.
Figure 7.City of Las Cruces Housing Unit Projections(2019-2029)
Year City of Las Cruces City of Las Cruces
Population Housing Units
2018 103,212 47,077
2019 104,427 47,631
2020 105,656 48,191
2021 106,900 48,759
2022 108,158 49,333
2023 109,431 49,913
2024 110,720 50,501
2025 112,023 51,095
2026 113,342 51,697
2027 114,676 52,306
2028 116,026 52,921
2029 117,392 53,544
Net Increase 12,965 5,913
Source:ESR1;Mesilla Valley MPO;Economic&Planning Systems
Nonresidential Development
Current estimates and future projections of nonresidential development are detailed in this section
including jobs and nonresidential floor area.
Base Year Employment and Nonresidential Square Footage Estimates
In addition to data on residential development, the calculation of development fees requires data on
employment(number of jobs)and nonresidential square footage in Las Cruces.TischlerBise uses the term
"jobs" to refer to employment by place of work. TischlerBise analyzed recent employment trends,
reviewed data available as part of the Elevate Las Cruces Comprehensive Plan effort, and the U.S. Census
Bureau.
TischlerBise uses a multi-step process to estimate base year job and nonresidential footage estimates.
First, employment estimates are derived using 2015 data from the U.S. Census, On the Map Application
and Longitudinal-Employer Household Dynamics Program (LEHD), Origin-Destination Employment
Statistics, which is a key data source for employment estimates at the municipal level. However, 2015 is
the latest year for which data is available. Second,job estimates are organized by type: Retail, Office and
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Utilities Development Fee Study
City of Las Cruces, New Mexico
Other(includes institutional) and Industrial.Third, estimated nonresidential square footage in the City of
Las Cruces for 2015 is estimated using average square feet per job factors shown in Figure 8.
Figure 8. Employee and Building Area Ratios(ITE)
ITE I Land Use/Size Demand Wkdy Trip Ends Wkdy Trip Ends Employees Per Sq.Ft.
Code Unit Per 1,000 Sq.Ft. Per Employee* 1,000 Sq.Ft. Per Emp
110 Light Industrial 1,000 Sq Ft 4.96 3.05 1.63 613
130 Industrial Park 1,000 Sq Ft 3.37 2.91 1.16 862
140 Manufacturing 1,000 Sq Ft 3.93 2.47 1.59 629
150 Warehousing 1,000 Sq Ft 1.74 5.05 0.34 2,941
254 Assisted Living bed 2.60 4.24 0.61 na
320 Motel room 3.35 25.17 0.13 na
520 Elementary School 1,000 Sq Ft 19.52 21.00 0.93 1,075
530 High School 1,000 Sq Ft 14.07 22.25 0.63 1,587
540 Public/Institutional 1,000 Sq Ft 20.25 14.61 1.39 721
565 Day Care 1,000 Sq Ft 47.62 21.38 2.23 448
610 Hospital 1,000 Sq Ft 10.72 3.79 2.83 353
710 General Office(avg size) 1,000 Sq Ft 9.74 3.28 2.97 337
720 Medical-Dental Office 1,000 Sq Ft 34.80 8.70 4.00 250
730 Government Office 1,000 Sq Ft 22.59 7.45 3.03 330
750 Office Park 1,000 Sq Ft 11.07 3.54 3.13 319
760 Research&Dev Center 1,000 Sq Ft 11.26 3.29 3.42 292
770 Business Park 1,000 Sq Ft 12.44 4.04 3.08 325
820 Shopping Center(avg size) 1,000 Sq Ft 37.75 16.11 2.34 427
Source: Trip Generation, Institute of Transportation Engineers,10th Edition(2017).
Results are shown below in Figure 9 by land use type. Nonresidential square footage is estimated by
multiplying number of jobs by square feet per employee (e.g., retail jobs at 13,981 x 427 sq. ft. per job=
5,969,887 square feet).
Figure 9.2015 Employment and Distribution by Industry Type
Land Use .. . .
• ,Reta i 1 13,981 30 0 427 5,969,887 33%
Office&Other 26,472 57% 337 8,921,064 49%
Industrial 5,595 12% 613 3,429,735 19%
Total 46,048 100% 18,320,686 100%
[11 U.S. Census,OnTheMap 6.1.1 Application and LEHD Origin-Destination Employment Statistics
[21 Trip Generation, Institute of Transportation Engineers, 10th Edition(2017).
To determine current(2019) nonresidential square footage and job estimates,TischlerBise obtained data
on the total amount of nonresidential square footage in the City from the Elevate Las Cruces
Comprehensive Plan data collection at almost 20 million square feet. Current square footage is allocated
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City of Las Cruces, New Mexico
to existing nonresidential land uses using the detailed data from 2015. Existing nonresidential square
footage is then converted to an estimated number of existing jobs using the square foot per employee
factors from above.
Figure 10.2019 Employment and Distribution by Industry Type
.. . .
••Reta i 1 6,510,505 33% 427 15,247 30%
Office&Other 9,725,816 49% 337 28,860 57%
Industrial 3,734,553 19% 613 6,092 12%
Total 19,970,874 100% 50,199 100%
[11 Total square footage from EPS and Halff Assoc., Elevate Las Cruces;allocated by type from 2015 Summary
[21 From 2015 Summary
[31 Trip Generation, Institute of Transportation Engineers, 10th Edition(2017).
Employment and Nonresidential Floor Area Projections
Future employment growth and nonresidential development in Las Cruces are based on projections
developed for the Elevate Las Cruces Comprehensive Plan, which projects a total of 25.5 million square
feet of nonresidential space by the year 2045. Projections for the development fee study are limited to 10
years, therefore TischlerBise interpolated between the current estimate and the 2045 projection. It is
projected that the City will grow by just under 2 million square feet over the next ten years.
To project growth in at-place employment,TischlerBise applied the previously discussed square feet per
employee factors to the projected increase in square footage.The results of these calculations are shown
in Figure 11. Over the next 10 years, Las Cruces is projected to grow by 4,932 jobs and add an estimated
1.96 million square feet of nonresidential development.
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Utilities Development Fee Study
City of Los Cruces, New Mexico
Figure 11. Nonresidential Development Projections
Year City of Las Cruces City of Las Cruces
Nonres Sq.Ft. .b
2018 49,161
2019 19,970,874 50,199
2020 20,158,928 50,672
2021 20,348,753 51,149
2022 20,540,365 51,631
2023 20,733,782 52,117
2024 20,929,020 52,608
2025 21,126,096 53,103
2026 21,325,029 53,603
2027 21,525,834 54,108
2028 21,728,530 54,617
2029 21,933,135 55,132
Net Increase 1,962,261 4,932
Avg.Annual 0.98% r
Source:City of Las Cruces,Elevate Las Cruces Comprehensive Plan
(Holff Assoc.,EPS);TischlerBise analysis
Summary of Land Use Assumptions
Provided below is a summary of cumulative land use projections used in the development impact fee
study. Base year estimates for 2019 are used in the development fee calculations. Development
projections are used to illustrate a possible future pace of demand for service units and cash flows
resulting from revenues and expenditures associated with those demands.
Figure 12.Summary of Land Use Assumptions
Multi Year Increments>>>
Base 1 2 3 4 5 10
Population
Subtotal Household Population 101,930 103,130 104,344 105,572 106,814 108,072 114,585 12,655
Group Quarters Population 2,497 2,526 2,556 2,586 2,617 2,648 2,807 310
Total Population 104,427 105,656 106,900 108,158 109,431 110,720 117,392 12,965
Net Increase Per Year 1,229 1,244 1,258 1,273 1,289 1,366
Housing Units
Total Housing Units 47,631 48,191 48,759 49,333 49,913 50,501 53,544 5,913
Net Increase Per Year 561 567 574 581 588 623
Jobs
Total Jobs 50,199 50,672 51,149 51,631 52,117 52,608 55,132 4,932
Net Increase Per Year 473 477 482 486 491 514
Nonresidential Floor Area(KSF)
Total Floor Area(KSF)1 19,970,874 20,158,928 20,348,753 20,540,365 20,733,782 20,929,020 21,933,135 1,962,261
Net Increase Per Year 1 188,054 189,825 191,612 193,417 195,238 204,605
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Utilities Development Fee Study
City of Los Cruces, New Mexico
Demand for Water and Wastewater Facilities
Based on the above projections, demand for Water and Wastewater improvements and facilities can be
projected as well. A summary of projected demand is provided below with detail in the respective report
chapters.
Summary of Projected Water Demand
Over the next 10 years, it is projected there will be an increase of 4,491 water customers. Accordingly,
water demand is projected to increase by almost 2.0 million gallons per day by the end of the 10-year
projection period.Average daily total demand at the end of the 10-year period is projected at 19.4 million
average gallons per day. Detail is provided in Figure 13.
Figure 13. Projected Water Demand
Annual Increase Cumulative Increase
Residential Nonresidential/ Total - Grand Total
Year Customers Other customers Customers Avg.Gallons
Customers per �. TAGallcms
.
Base 2019 32,597 4,518 37,115117,460,711
1 2020 32,981 4,561 37,541 426 188,574 426 188,574 17,649,285
2 2021 33,369 4,603 37,972 431 190,686 857 379,260 17,839,971
3 2022 33,762 4,647 38,408 436 192,707 1,293 571,967 18,032,678
4 2023 34,159 4,691 38,850 441 194,831 1,735 766,798 18,227,509
5 2024 34,561 4,735 39,296 447 197,061 2,181 963,859 18,424,570
6 2025 34,968 4,779 39,747 451 199,099 2,632 1,162,958 18,623,669
7 2026 35,380 4,824 40,204 457 201,341 3,089 1,364,299 18,825,010
8 2027 35,796 4,870 40,666 462 203,491 3,551 1,567,790 19,028,501
9 2028 36,218 4,916 41,133 467 205,737 4,018 1,773,526 19,234,237
10 2029 36,644 4,962 41,606 1 473 207,987 1 4,491 1,981,513 19,442,224
Source:TischlerBise,using Average Day Demand factors and projected development shown in the Land Use Assumptions.
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Summary of Projected Wastewater Demand
Over the next 10 years, it is projected there will be an increase of 4,251 wastewater customers.
Accordingly, the projected wastewater demand increases by approximately 1.2 million gallons per day by
the end of the 10-year projection period. Average daily total demand at the end of the 10-year period is
projected at almost 12.4 million average gallons per day. Detail is provided in Figure 14.
Figure 14. Projected Wastewater Demand
OtherAnnual Increase Cumulative Increase
Residential Nonresidential/ Total Grand Total
Year
Customers Customers Customers Customers per Day Customer s per Day Avg.Gallons
per D.
Base 2019 31,507 3,454 34,961 11,147,620
1 2020 31,878 3,487 35,364 403 118,016 403 118,016 11,265,636
2 2021 32,253 3,519 35,772 408 119,309 811 237,326 11,384,946
3 2022 32,633 3,552 36,185 413 120,554 1,224 357,880 11,505,500
4 2023 33,017 3,586 36,603 418 121,857 1,642 479,737 11,627,357
5 2024 33,406 3,620 37,025 423 123,218 2,064 602,955 11,750,575
6 2025 33,799 3,654 37,453 427 124,477 2,492 727,431 11,875,051
7 2026 34,197 3,688 37,885 432 125,847 2,924 853,278 12,000,898
8 2027 34,599 3,723 38,322 437 127,169 3,361 980,447 12,128,067
9 2028 35,007 3,758 38,765 442 128,545 3,804 1,108,992 12,256,612
10 2029 35,419 3,793 39,212 1 447 129,924 1 4,251 1,238,916 12,386,536
Source:TischlerBise,using Average Day Demand factors and projected development shown in the Land Use Assumptions.
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Utilities Development Fee Study
City of Los Cruces, New Mexico
Methodology
Water impact fees are derived using the incremental, plan based, and cost recovery approaches. Impact
fees are by meter size and calibrated to average daily gallons of water demand for a single-family housing
unit (or an Equivalent Dwelling Unit (EDU)). The cost per meter size is based on the net capital costs per
gallon of system capacity or per EDU multiplied by the applicable capacity ratio.Water impact fees include
infrastructure components for: water wells/supply, transmission, storage, development and support
facilities. Impact fees to be paid by multifamily and nonresidential development are derived from capacity
ratios according to the size of the new customer's water meter. Capacity ratios are from Las Cruces
Utilities.
Water Demand
Water impact fees use average water usage per Equivalent Dwelling Unit (EDU) as the service unit.
TischlerBise obtained water usage data from Las Cruces Utilities to determine demand from residential
and nonresidential land uses. Residential customers shown below reflect single units and do not include
multifamily housing units.Therefore, the usage figure can be used to derive average daily water demand
from an EDU at 315 gallons per day. Detail is provided below in Figure 15.
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City of Los Cruces, New Mexico
Figure 15.Water Usage by Customer Class(2018)and Levels of Service
Annual Sales Avg.Annual Gallons per
Test Year 2018 Avg.Customers Avg.GIRD
(1,000 gal) Customer
Residential Customers 3,686,978 32,072 114,959 315
Small Commercial 792,498 3,635 218,019 597
Large Commercial 941,081 432 2,178,428 5,968
Industrial 359,906 18 19,994,778 54,780
San Pablo MDWCA 9,748 1 9,748,000 26,707
Parks 73,390 35 2,096,857 5,745
Parks Non-Potable 12,337 4 3,084,250 8,450
Off Peak 126,481 58 2,180,707 5,975
Reclaimed Water 118,893 6 19,815,500 54,289
Total/Average 6,121,312 36,261 168,813 463
Summary Annual Sales Avg.Customers Avg.Annual Gallons per"Avg.GPD
(1,000 gal) Customer
Residential 3,686,978 32,072 114,959
Nonresidential/Other 2,434,334 4,189 581,125 1,592
Total/Average 6,121,312 36,261 168,813 463
Source:Las Cruces Utilities, water Utility Rate Review, Test Year 2018
Ratio of Service Unit to Development Unit
Residential water facilities development fees are assessed on a per meter basis, calibrated to average
gallons per day per single family unit,which is an equivalent dwelling unit(EDU). Multifamily units should
be assessed based on the corresponding meter size and capacity ratio shown below and would establish
a ratio of service units to land use.
For nonresidential water facilities development fees, capacity ratios by meter size are the appropriate
demand indicator for water facilities. Capacity ratios equate .625 (5/8)or.75 (3/4) inch meters (standard
single family unit meter)to the average gallons per dayfor a single-family residential unit. Utilizing average
gallons per day is the most efficient way to show a direct relationship between development units, usage,
and system capacity. Water facilities development impact fees assessed on nonresidential development
are calculated by multiplying the number of gallons per residential unit by the capacity ratio for the
corresponding size and type of water meter needed to serve the nonresidential land use.
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City of Los Cruces, New Mexico
Maximum flow rate capacity for .625 (5/8) or .75 (3/4) inch meters is 25 gallons per minute (gpm),
reflecting the City's transition to induction flow measurement with a Kamstrup meter having a higher
maximum capacity than the average bronze main case documented by the American Water Works
Association(AWWA). Other types of meters are utilized in the City of Las Cruces with a range of capacities,
which are scaled to the capacity for a standard residential meter. Maximum capacity standards for the
other meters and sizes are from Las Cruces Utilities and shown below in Figure 16.
Figure 16.Water Facilities Ratio of Service Units to Development Units
Water
DevelopmentResidential
Number of Persons per Single Family Unit(EDU) 2.43
Average Gallons per Day per EDU 315
Average Gallons per Person 130
Sources:US Census;Las Cruces Utilities;Tischler8ise
DevelopmentAll
..
Capacity Capacity Capacity Ratio Ratio Ratio
Kamstrup Elster Master Meter Kamstrup Elster Master Meter
Flow IQ EVO Q4 Octave Ultra Flow IQ EVO Q4 Octave Ultra
0 5/8 x 93/4' 25 1.00
3/4 32 1.28
1" 55 2.20
1-1/2" 120 4.80
2" 160 220 250 6.40 8.80 10.00
3" 550 500 22.00 20.00
4" 880 1000 35.20 40.00
6" 1400 1600 56.00 64.00
8" 3500 2800 140.00 112.00
Source:Las Cruces Utilities
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City of Las Cruces, New Mexico
Current Water Demand
Las Cruces Utilities current water usage is estimated based on customer count for Fiscal Year 2019 (as of
February 2019) and gallons per customer from the data in Figure 16 above.Total estimated average daily
demand is approximately 17.5 million gallons per day.
Figure 17.Current(2019)Average Daily Water Demand by Land Use
Land Use Class Customers* Gallons per Estd.Water
Customer per Da ^ Demand GPD
Residential 32,5971 3151 10,268,055
Nonresidential 4,5181 1,5921 7,192,656
Total 37,115 17,460,711
*FY19 Actual Customer Count,Las Cruces Utilities
A City of Las Cruces Utilities, Water Utility Rate Review, Test Year 2018
Projected Water Demand
Using current demand factors as summarized below in Figure 18 and the land use assumptions detailed
in this chapter, future water demand can be projected.
Figure 18.Water Level of Service/Demand Factors(Base Year 2019)
32,597 Residential Customers
47,631 City of Las Cruces Housing Units (HU)
0.684 Customers/HU
315 GPD/Customer
4,518 Nonresidential Customers
50,199 City of Las Cruces Jobs
0.090 Customers/Job
1,592 GPD/Customer
Source:Las Cruces Utilities;Tischlereise analysis.
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Over the next 10 years, it is projected there will be an increase of 4,491 water customers. Accordingly,
water demand is projected to increase by almost 2.0 million gallons per day by the end of the 10-year
projection period.Average daily total demand at the end of the 10-year period is projected at 19.4 million
average gallons per day.This equates to an increase of 6,291 EDUs. Detail is provided in Figure 19.
Figure 19. Projected Water Demand
MO. Grand Tota
Avg.Gallons
FF6
..Base 2019 32,597 4,518 37,115 17,460711 55,4311 2020 32,981 4,561 37,541 426 188,574 188,574 17,649,285 599 599 56,030
2 2021 33,369 4,603 37,972 431 190,686 857 379,260 17,839,971 605 1,204 56,635
3 2022 33,762 4,647 38,408 436 192,707 1,293 571,967 18,032,678 612 1,816 57,247
4 2023 34,159 4,691 38,850 441 194,831 1,735 766,798 18,227,509 619 2,435 57,866
5 2024 34,561 4,735 39,296 447 197,061 2,181 963,859 18,424,570 626 3,061 58,492
6 2025 34,968 4,779 39,747 451 199,099 2,632 1,162,958 18,623,669 632 3,693 59,124
7 2026 35,380 4,824 40,204 457 201,341 3,089 1,364,299 18,825,010 639 4,332 59,763
8 2027 35,796 4,870 40,666 462 203,491 3,551 1,567,790 19,028,501 646 4,978 60,409
9 2028 36,218 4,916 41,133 467 205,737 4,018 1,773,526 19,234,237 653 5,631 61,062
10 2029 36,644 4,962 41,606 473 207,987 4,491 1,981,513 19,442,224 660 6,291 61,722
Source:TschlerBise,using Average Day Demand factors and projected development shown in the Land Use Assumptions.
Service Area
The service area for the Water Development Fee is citywide within Las Cruces water service area.
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FISCAL I ECONOMIC I PLANNING
Utilities Development Fee Study
City of Los Cruces, New Mexico
Water System Levels of Service and Cost Factors
Water Wells/Supply
The City of Las Cruces obtains its water from twenty-seven City of Las Cruces Wells and twelve Jornada
System Wells, which were recently acquired by Las Cruces Utilities. Grand total water capacity is almost
53 million gallons per day with a firm capacity at 80 percent of the total, or 42 million gallons per day. A
summary of current water well/supply is shown below in Figure 20.
Figure 20.Water Supply Level of Service
Capacity(gpd)
City of Las Cruces Wells Jornada System Wells
25 610 878,400 103 LRG-50-S-7 130 187,200
28 500 720,000 106 LRG-50-S-13 600 864,000
29 1800 2,592,000 107 LRG-50-S-11 600 864,000
31 1600 2,304,000 115 LRG-1882-S 90 129,600
32 1100 1,584,000 116 LRG-1882-S-2POD4 150 216,000
33 400 576,000 117 LRG-47-S-3 215 309,600
35 1000 1,440,000 119 LRG-47-S-6 275 396,000
39 500 720,000 120 LRG-47-S-5 150 216,000
40 1250 1,800,000 121 LRG-47-S-4 115 165,600
41 1700 2,448,000 122 LRG-47 85 122,400
42 1400 2,016,000 123 LRG-48 105 151,200
43 1000 1,440,000 125 LRG-48-S-2 175 252,000
46 2500 3,600,000 Subtotal 3,873,600
58 1400 2,016,000
59 1800 2,592,000
61 1200 1,728,000 GRAND TOTAL WELL CAPACITY 52,797,600
62 700 1,008,000
63 2700 3,888,000 FIRM PRODUCTION CAPACITY 42,238,080
65 1250 1,800,000
67 2000 2,880,000
68 500 720,000
69 1000 1,440,000
70 2850 4,104,000
71 2900 4,176,000
18 90 129,600
27 225 324,000
Paz* 400
Subtotal 48,924,000
*Irrigation use;not potable.Not included in capacity figures.
^Firm capacity estimated at 80%of total production capacity,per City of Las Cruces Water and Wastewater System Master Plan Update,2008.
Source:Las Cruces Utilities
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Maximum day demand is estimated at approximately 35 million gallons per day,assuming a peaking factor
of 2, per the Water and Wastewater Master Plan Update and 2013 Impact Fee Study.
This results in a utilization factor of 83 percent of firm water capacity as shown in Figure 21.
Figure 21.Water Usage and Capacity
Estimated Avg. Daily Water Demand (GPD) 17,460,711
Peaking Factor* 2.0
Estimated Max Daily Water Demand (GPD) 34,921,422
Estimated Water Supply Capacity(GPD) 52,797,600
Estimated Firm Water Supply Capacity(GPD)A 42,238,080
Utilization 83%
*Water and Wastewater System Master Plan Update
A 80%of production capacity,per Water and Wastewater System Master Plan Update
Source:Las Cruces Utilities
Water Supply Cost
Las Cruces Utilities plans to continue to expand water supply capacity from future well development.
Below is the current cost per gallon of capacity for water supply based on recent well construction,
including drilling and pump house construction. Interest costs are included in the estimates.The resulting
cost per gallon is$1.05.
Figure 22.Water Supply Cost Factors
Water Supply Est. Interest
M Cost[2] mmm
Well 40-Drilling and Pump Station $2,380,000 $1,071,000 $3,451,000 1,800,000 $1.92
Well 70-Drilling and Pump Station $2,450,000 $1,102,500 $3,552,500 4,104,000 $0.87
Well 71-Drilling and Pump Station $2,450,000 $1,102,500 $3,552,500 4,176,000 $0.85
Total $7,280,000 $3,276,000 $10,556,000 10,080,000 $1.05
i11 Las Cruces Utilities;includes drilling and pump house construction.
i21 Interest estimated at 4%over 20 years.
i31 Las Cruces Utilities.
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Water Distribution
Water is distributed in the City of Las Cruces through a system of transmission lines, valves, and booster
pumps. Las Cruces Utilities plans to continue to add capacity in the system by expanding components of
the water distribution system to accommodate growth. Current levels of service and costs are detailed
below in the next series of figures.
A total of 328,028 linear feet of system transmission lines at a range of sizes from 16 to 36 inches distribute
water in the City of Las Cruces. The infrastructure is currently valued at approximately$64 million (costs
are appreciated using the Engineering News Record cost index for a Southwest city (Dallas, Texas). This
equates to a cost per EDU of$1,147.96.
Figure 23.Water Transmission Lines Level of Service and Cost Factor
Line Size Linear Feet [1] 2013 Cost/Lin. Ft.
16" 31,982 $140.95 $154.30 $4,934,837
18" 164,496 $153.86 $168.44 $27,706,903
24" 87,815 $179.69 $196.71 $17,274,215
30" 8,727 $210.17 $230.08 $2,007,921
36" 35,009 $305.51 $334.45 $11,708,633
Total 328,028 $193.98 $63,632,509
Current Number of Water EDUs 55,431
Cost per EDU $1,147.96
[11 Las Cruces Utilities
[21 City of Las Cruces Water and Wastewater Impact Fee Study,2013;cost updated to 2019 dollars with
Engineering News-Record(ENR)Construction Cost Index forsouthwest city(Dallas, TX).
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Five water control valve stations serve the water system in Las Cruces to regulate and maintain water
pressure through the system. Current estimated value for the existing control valve stations total
$663,588.This equates to a cost per EDU of$11.97. Detail is provided below.
Figure 24.Water Valves Level of Service and Cost Factor
Control Valve Station Diameter(inches)
West Mesa 36 $96,376 $105,506
Spruce and Triviz 14 $150,336 $164,577
Triviz 14 $150,336 $164,577
Telshor 12 $119,078 $130,358
University and Telshor 12 $90,040 $98,569
$663,588
Current Number of Water EDUs 55,431
Cost per EDU $11.97
Sources:Las Cruces Utilities;City of Las Cruces Water and Wastewater Impact Fee Study,2013;cost updated
to 2019 dollars with Engineering News-Record(ENR)Construction Cost Index for southwest city(Dallas, TX).
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The City is served by 11 booster pump stations with 32 pumps to pump water from lower service zones
to higher service zones.The pump stations have an estimated current value of$2.2 million.This equates
to$39.02 per EDU.
Figure 25.Water Booster Pumps Level of Service and Cost Factor
Pump Station No. of Pumps
Loma Vista 3 $114,000 $124,799
Jornada 3 $76,000 $83,199
South Jornada 3 $161,500 $176,799
Upper Griggs 3 $190,000 $311,998
Missouri 1 3 $142,500 $116,999
Missouri 2 3 $199,500 $218,398
Telshor 1 3 $76,000 $83,199
Telshor Skid 2 $87,400 $95,679
Telshor 2 3 $104,500 $171,599
Airport 3 $95,000 $155,999
West Mesa 3 $380,000 $623,996
32 $2,162,665
Current Number of Water EDUs 55,431
Cost per EDU $39.02
*Reflects inventory and asset value at time of 2013 Impact Fee Study
Sources:Las Cruces Utilities;City of Las Cruces Water and Wastewater Impact Fee Study,2013;cost updated
to 2019 dollars with Engineering News-Record(ENR)Construction Cost Index southwest city(Dallas,TX).
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City of Las Cruces, New Mexico
Water Storage
Lac Cruces Utilities provides water storage in 13 storage tanks with a total capacity of 27.4 million gallons.
The current level of service provided to existing Las Cruces Utilities water customers is 494 gallons per
EDU. See Figure 26.
Figure 26.Water Storage Level of Service
CapacityStorage Tank Name Year Built
North Zone 2 2001 2.0
North Zone 1A 1992 2.0
South Zone 1995 2.0
Telshor 1965 2.0
Loma Vista 1964 2.0
North Jornada 1992 2.0
SouthJornada 2009 2.0
Spruce 1970 3.0
Upper Griggs 1962 3.0
Missouri 1956 2.0
Airport Ground 1983 0.4
Airport Elevated 1983 0.5
West Mesa 2000 4.5
Total 27.4
Current Number of Water EDUs 55,431
Gallons per EDU 494
Source:Las Cruces Utilities;City of Las Cruces Water and Wastewater Impact Fee Study,2013
Based on current capacity upgrades in Las Cruces' Capital Improvement Plan, the current cost to Las
Cruces Utilities to provide water storage capacity is $1.27 per gallon. This cost is applied to the demand
per EDU of 494 gallons in the impact fee schedule to derive new growth's share of the cost for water
storage improvements.
Tischl re Bise 28
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City of Las Cruces, New Mexico
Figure 27.Water Storage Cost Factor
Description Capacity
Elevated (Airport)Tank Improvements $1,200,000 0.5 $2.40
Missouri Tank Improvements $2,000,000 2 $1.00
Upper Griggs Tank Improvements $2,195,000 3 $0.73
N.Zone 1 Tank Improvements $1,712,000 2 $0.86
S.Zone Tank Improvements $1,096,500 2 $0.55
Subtotal(principal) $8,203,500 9.5 $0.86
Subtotal(interest)[3] $3,869,058 9.5 $0.41
Grand Total Cost $12,072,558 9.5 $1.27
[1]Las Cruces Utilities Capital Improvement Plan(FY2020)
[2]Las Cruces Utilities
[3]Tischler8ise estimated o t 4%interest rate
Planned Water Development
Las Cruces Utilities operates as a system,and as such, is connected within its system and connects to other
water systems, primarily for emergency and redundancy purposes. Las Cruces Utilities plans to continue
to expand its system of interconnectors with two projects in Zone I shown below. These projects are
anticipated to serve demand over the next 20 years and are allocated to projected water demand over
that time period. Estimated total costs and projected net new water demand over the next 20 years are
shown below along with the resulting cost per gallon of capacity.
Figure 28.Water Development Level of Service and Cost Factor
Zone I Interconnect Project 2-Phase B 2020 $1,160,000
Zone I Interconnect Project 3 South-Phase B 2021 $1,450,000
Total $2,610,000
Projected increase in demand (gpd) (20-Year Increase) 4,189,179
Cost per Gallon $0.62
Source:Las Cruces Utilities Capital Improvement Plan(FY2020);Tischler8ise projections.
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City of Las Cruces, New Mexico
Water Support Facilities
Las Cruces Utilities is currently constructing a Water Quality Lab to provide water and wastewater testing.
Per Las Cruces Utilities, the facility will be utilized 30 percent for water testing (with the remaining 70
percent for wastewater testing). Costs are allocated to each fee category accordingly. This facility is
anticipated to serve current and future demand over the next 20 years. Level of service and cost factors
are shown below.
Figure 29.Water Quality Lab Level of Service and Cost Factor:Water Portion
Water Quality Laboratory(WQL) 2019 $4,734,222 30% $1,420,267
Total $4,734,222 $1,420,267
Projected Total Water Demand (GPD)(20-Year) 21,649,890
Cost per GPD1 $0.07
*Remainder serves Wastewater
Source:Las Cruces Utilities;Tischler8ise projections.
Credit Analysis for Water System Improvements
Las Cruces debt finances some water system improvements, including the purchase of the Jornada Water
System and other capacity improvement projects. To avoid potential double payment for water system
improvements, a credit is necessary because new residential and nonresidential development that will
pay the impact fee will also contribute to future principal payments through utility rates on this remaining
debt.
As shown in Figure 30, outstanding principal and interest payments for financed water capacity
improvements is approximately $21 million, reflecting 100 percent of the Jornada Water System
acquisition debt and 20 percent of remaining Water Fund for capacity projects. To derive the credit
amount, principal and interest subtotal per year is divided by the total demand (average gallons per day)
in the water system in each year.
To account for the time value of money, annual payments per gallon of capacity are discounted using a
net present value formula based on an average interest rate of 4.0 percent.The total net present value of
future debt service payments for capacity improvements is $0.79 per gallon. This amount is subtracted
from the gross capital cost per gallon amount to derive a net capital cost per gallon for water facilities.
Tlschl re Blse 30
FISCAL I ECONOMIC I PLANNING
Utilities Development Fee Study
City of Los Cruces, New Mexico
Figure 30.Water Principal&Interest Payment Credit Evaluation
Demand2016 Bond Series Jornada 9"NWIM kRAND TOTAL CREDIT
Year Principal Interest Total P&I Capacity$ Principal Interest Total P&I � Capacity$ Capacity$ Pr0j. Credit per
2020 $279,808 $213,408 $493,216 $493,216 $2,615,590 $1,667,662 $4,283,252 $856,650 $1,349,867 17,649,285 $0.08
2021 $292,924 $199,418 $492,342 $492,342 $2,535,276 $1,574,979 $4,110,255 $822,051 $1,314,393 17,839,971 $0.07
2022 $308,226 $184,772 $492,998 $492,998 $2,850,945 $1,475,075 $4,326,020 $865,204 $1,358,202 18,032,678 $0.08
2023 $321,342 $172,443 $493,785 $493,785 $3,039,638 $1,366,759 $4,406,397 $881,279 $1,375,064 18,227,509 $0.08
2024 $332,272 $159,589 $491,861 $491,861 $2,906,732 $1,256,630 $4,163,361 $832,672 $1,324,533 18,424,570 $0.07
2025 $347,574 $146,298 $493,872 $493,872 $3,129,896 $1,136,700 $4,266,596 $853,319 $1,347,191 18,623,669 $0.07
2026 $360,690 $132,395 $493,085 $493,085 $2,866,946 $1,012,770 $3,879,716 $775,943 $1,269,028 18,825,010 $0.07
2027 $375,992 $117,967 $493,959 $493,959 $2,622,333 $911,491 $3,533,824 $706,765 $1,200,724 19,028,501 $0.06
2028 $389,108 $102,928 $492,036 $492,036 $1,978,337 $817,730 $2,796,067 $559,213 $1,051,249 19,234,237 $0.05
2029 $397,852 $94,659 $492,511 $492,511 $1,935,178 $755,122 $2,690,301 $538,060 $1,030,571 19,442,224 $0.05
2030 $406,596 $85,708 $492,304 $492,304 $2,089,644 $692,498 $2,782,142 $556,428 $1,048,732 19,652,460 $0.05
2031 $417,526 $76,051 $493,577 $493,577 $2,295,776 $623,096 $2,918,873 $583,775 $1,077,352 19,864,969 $0.05
2032 $426,270 $65,613 $491,883 $491,883 $2,412,133 $547,592 $2,959,725 $591,945 $1,083,828 20,079,776 $0.05
2033 $437,200 $54,956 $492,156 $492,156 $2,558,849 $466,611 $3,025,460 $605,092 $1,097,248 20,296,906 $0.05
2034 $450,316 $41,840 $492,156 $492,156 $2,710,543 $377,281 $3,087,825 $617,565 $1,109,721 20,516,384 $0.05
2035 $465,618 $28,331 $493,949 $493,949 $2,712,657 $289,166 $3,001,823 $600,365 $1,094,313 20,738,235 $0.05
2036 $478,734 $14,362 $493,096 $493,096 $2,168,000 $191,856 $2,359,856 $471,971 $965,067 20,962,485 $0.05
2037 $0 $0 $0 $0 $1,646,362 $112,225 $1,758,587 $351,717 $351,717 21,189,160 $0.02
2038 $0 $0 $0 $0 $1,561,021 $54,636 $1,615,657 $323,131 $323,131 21,418,286 $0.02
2039 1 $0 $0 $0 $0 $0 $0 $0 $0 $0 21,649,890 $0.00
Total 1$6,488,0481$1,890,7371$8,378,785 1$8,378,7851$46,635,856 $15,329,880 $61,965,7361$12,393,1471 $20,771,932 $1.08
Discount Rate 4.0%
Source:Las Cruces Utilities;Tischler8ise projections. Net Present Value $0.79
Tischl re Bise 31
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Utilities Development Fee Study
City of Los Cruces, New Mexico
Proposed Impact Fees for Water
Input variables for the Water Impact Fees are shown in the upper section of Figure 31. For each
component of the impact fee, capital costs per equivalent dwelling unit (EDU) are calculated by
multiplying the average number of gallons per residential unit (EDU) by the net capital cost per gallon of
system capacity.The net capital cost per EDU of$2,125 is the impact fee for a single family unit, or EDU.
Nonresidential impact fees are based on size and type of water meter and their restrictive capacity.Water
development fees are calculated by multiplying the cost per EDU by the capacity ratio for the
corresponding size and type of water meter. The capacity ratio is calibrated to the maximum flow rate
capacity for .625 (5/8) or .75 (3/4) inch meters, the standard for a single family unit (or EDU). The full
impact fee schedule by meter type and size is shown in Figure 32.
Figure 31. Proposed Water Impact Fees
Cost per Gallon of Water Gallons per Water Capital
Capacity Day per EDU Cost per EDU
Water Wells/Supply $1.05 315 $330.75
Water Transmission $1,198.95
Water Storage $1.27 494 $627.38
Water Development $0.62 315 $195.30
Water Support Facilities $0.07 315 $22.05
Subtotal $2,374.43
Water Credit 1 ($0.79) 315 ($248.85)
Water Capital Cost per EDU=> $2,125.58
Water Capital Cost per EDU(Truncated)_>
Proposed Fees:5/8 or 3/4 Inch Meter
Meter Size(inches) Capacity Ratio
A
Fee to Builder Customer Fee to Rate
Surcharge Base
- m 50% 28% 22%
0.625 (5/8)or 0.75 (3/4) 1.00 $1,063 $595 $468
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City of Los Cruces, New Mexico
Figure 32. Proposed Water Impact Fees:All Meter Types and Sizes
LCaacity Capacity Capacity Ratio Ratio Ratio Fee Fee Fee
strup Elster Master Meter Kamstrup Elster Master Meter Kamstrup Elster Master Meter
w IQ EVO Q4 Octave Ultra Flow IQ EVO Q4 Octave Ultra Flow IQ EVO Q4 Octave Ultra
5/8 x 3/4" 25 1.00 $2,125.00
3/4 32 1.28 $2,720.00
1" 55 2.20 $4,675.00
1-1/2" 120 4.80 $10,200.00
2" 160 220 250 6.40 8.80 10.00 $13,600.00 $18,700.00 $21,250.00
3" 550 500 22.00 20.00 $46,750.00 $42,500.00
4" 880 1000 35.20 40.00 $74,800.00 $85,000.00
6" 1400 1600 56.00 64.00 $119,000.00 $136,000.00
8" 3500 2800 140.00 112.00 $297,500.00 $238,000.00
Source:Las Cruces Utilities
Below is a comparison of the updated proposed residential development impact fee amount to the
current rate and the calculated difference.
Figure 33. Proposed Water Impact Fees Comparison to Current Water Fees
Proposed Fees:5/8 or 3/4 Inch Meter
Meter Size(inches) Capacity Ratio
A
Fee to Builder Customer Fee to Rate
Surcharge Base
0'
- m
0.625 (5/8)or 0.75 (3/4) 1.00 $1,063 $595 $468
Current Fees: 5/8 or 3/4 Inch Meter
Meter Size(inches) Capacity Ratio Current Water Fee Fee to Builder Customer Fee to Rate
Surcharge Base
0'
0.625 (5/8)or 0.75 (3/4) 1.00 $1,210 $678 $532
Change in Fees: 5/8 or 3/4 Inch Meter
eter Size(inches) Increase or Fee to Builder Customer Fee to Rate
-
i'
0.625 (5/8)or 0.75 (3/4) ($295) ($148) ($83) ($65)
It should be noted that the above schedules/comparisons reflects the City of Las Cruces' current policy of
allocating payment of the fee—to the builder (50 percent), customer (28 percent), and rate base (22
percent). This allocation is a policy decision and does not reflect an impact fee requirement or a
recommendation of the consultant.
Tisch B S@ 33
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Utilities Development Fee Study
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Water System Growth-Related Needs
Figure 34 lists the 10-year growth needs for water system facilities. Found in the top half of the figure,the
current level of services for water system components are listed and applied to growth projections to
calculate infrastructure needs to accommodate future growth.The projected cost for water infrastructure
to accommodate growth in Las Cruces totals approximately$15 million.
Figure 34.Water System Needs to Accommodate Growth
water standards
Water Wells/Supply 315.00 gallons per EDU
Water Transmission $1,198.95 cost per EDU
Water Storage 494.00 gallons per EDU
Water Development 315.00 gallons per EDU
Water Support Facilities 315.00 gallons per EDU multi-yearinterval»
Water Needs: Base Year 1 2 3 4 5 10-Year Cost per Cost of Future
City of La 2019 � 2020 � 2021 2022 [ 2023 2024 � 210029 Increase Unit Dev.
Projected Increase in EDus 599 605 612 619 626 660 6,291
Water Supply GIRD6188685
188,685 190,575 192,780 194,985 197,190 207,900 1,981,665 $1.05
Water Transmission EDUs599 605 612 619 626 660 6,291 $1,198.95
Wate Storage GIRD295,906 298,870 302,328 305,786 309,244 326,040 3,107,754 $1.27
Water Development GIRD 190,575 192,780 194,985 197,190 207,900 1,981,665 $0.62
Water Support Facilities GPD 188,685 190,575 192,780 194,985 197,190 207,900 1,981,665 $0.07
Total Cost of Growth
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City of Los Cruces, New Mexico
Projected Revenue from Water Impact Fee
Projected revenue from the City's Water Impact Fee is shown in Figure 35. A total of 6,291 new water
EDUs is projected to be served by Las Cruces Utilities by 2029. Multiplying this growth by the development
fee per EDU, projected revenue is calculated ($2,125 per EDU x 6,291 EDUs=$13.4 million).The remaining
cost not offset by the impact fee is a result of the credit included in the fee calculation to prevent fee
payers from paying twice for comparable improvements.
Figure 35. Projected Revenue from Water System Impact Fee
Total Cost 10-Year Growth Cost
Water Wells/Supply $2,080,748 $2,080,748
Water Transmission $7,542,594 $7,542,594
Water Storage $3,946,848 $3,946,848
Water Development $2,610,000 $1,228,632
Water Support Facilities 1 $1,420,2671 $138,717
Total Expenditures $17,600,457 $14,937,539
Projected Development Impact Fee Revenue
Year EDU
Base 2019 55,431
Year 1 2020 56,030
Year 2 2021 56,635
Year 3 2022 57,247
Year 4 2023 57,866
Year 5 2024 58,492
Year 6 2025 59,124
Year 7 2026 59,763
Year 8 2027 60,409
Year 9 2028 61,062
Year 10 2029 61,722
10-Year Increase 6,291
Projected Revenue=> $13,368,375
Projected Growth Cost=> $14,937,539
Non-Impact Fee Funding=> ($1,569,164)
TISCh B Se 35
FISCAL I ECONOMIC I PLANNING
Utilities Development Fee Study
City of Los Cruces, New Mexico
WASTEWATER
Methodology
Wastewater impact fees are derived using the incremental and cost recovery approaches. Impact fees are
by meter size and calibrated to average daily gallons of water demand for a single-family housing unit(or
an Equivalent Dwelling Unit (EDU)).The cost per meter size is based on the net capital costs per gallon of
system capacity or per EDU multiplied by the applicable capacity ratio. Wastewater impact fees include
infrastructure components for: wastewater treatment, wastewater collection, and wastewater support
facilities. Impact fees to be paid by multifamily and nonresidential development are derived from capacity
ratios according to the size of the new customer's water meter. Capacity ratios are from Las Cruces
Utilities and the American Water Works Association (AWWA)).
Wastewater Demand
Wastewater development fees use average wastewater usage per Equivalent Dwelling Unit (EDU) as the
service unit.TischlerBise obtained wastewater usage data from Las Cruces Utilities to determine demand
from residential and nonresidential land uses. Residential customers shown below reflect single units and
do not include multifamily housing units. Therefore, the usage figure can be used to derive average daily
wastewater demand from an EDU at 176 gallons per day. Detail is provided below in Figure 36.
Tisch B Se 36
FISCAL I ECONOMIC I PLANNING
Utilities Development Fee Study
City of Los Cruces, New Mexico
Figure 36.Wastewater Usage by Customer Class(2018)
Test Year 2018 Annual Sales Avg.Customers Avg.Annual Gallons per Avg.GPD
(1,000 gal) Customer
Residential 1,929,941 30,088 64,143 176
Small Commercial 415,580 2,427 171,232 469
Large Commercial 906,638 357 2,539,602 6,958
Industrial 201,715 4 50,428,750 138,161
Industrial High-Strength 43,693 3 14,564,333 39,902
Winterhaven 3,080 1 3,080,000 8,438
West Mesa Park-Industrial 15,859 2 7,929,500 21,725
County/Village 39,013 2 19,506,500 53,442
Mesilla 33,804 1 33,804,000 92,614
Strength Charges 0 6 0 0
Total/Average 3,589,323 32,891 109,128 299
Summary Annual Sales Avg.Customers Avg.Annual Gallons per"Avg.GPD
1000 al Customer
Residential 1,929,941 30,088 64,143
Nonresidential/Other 1,659,382 2,803 592,002 1,622
Total/Average 3,589,323 32,891 109,128 299
Source:Las Cruces Utilities, wastewater Utility Rate Review, Test Year 2018
Ratio of Service Unit to Development Unit
Residential Wastewater Facilities development fees are assessed on a per meter basis, calibrated to
average gallons per day for a single family unit, which is an equivalent dwelling unit (EDU). Multifamily
units should be assessed based on the corresponding meter size and capacity ratio shown below and
would establish a ratio of service units to land use.
For nonresidential wastewater facilities development fees, capacity ratios by meter size are the
appropriate demand indicator for wastewater facilities. Capacity ratios equate .625 (5/8)or.75 (3/4) inch
meters (standard single family unit meter) to the average gallons per day for a single-family residential
unit. Utilizing average gallons per day is the most efficient way to show a direct relationship between
development units, usage, and system capacity. Wastewater facilities development impact fees assessed
on nonresidential development are calculated by multiplying the number of gallons per residential unit
Tischl re Bise 37
FISCAL I ECONOMIC I PLANNING
Utilities Development Fee Study
City of Las Cruces, New Mexico
by the capacity ratio for the corresponding size and type of water meter needed to serve the
nonresidential land use.
Maximum flow rate capacity for .625 (5/8) or .75 (3/4) inch meters is 25 gallons per minute (gpm),
reflecting the City's transition to induction flow measurement with a Kamstrup meter having a higher
maximum capacity than the average bronze main case documented by the American Water Works
Association(AWWA). Other types of meters are utilized in the City of Las Cruces with a range of capacities,
which are scaled to the capacity for a standard residential meter. Maximum capacity standards for the
other meters and sizes are from Las Cruces Utilities and shown below in Figure 37.
Figure 37:Wastewater Facilities Ratio of Service Units to Development Units
Wastewater
DevelopmentResidential
Number of Persons per Single Family Unit(EDU) 2.43
Average Gallons per Day per EDU 176
Average Gallons per Person 72
Sources:US Census;Las Cruces Utilities;Tischler8ise
DevelopmentMl All
Meter Capacity by Type Capacity Ratio by Type of Meter
Capacity Capacity Capacity Ratio Ratio Ratio
Kamstrup Elster Master Meter Kamstrup Elster Master Meter
Flow IQ EVO Q4 Octave Ultra Flow IQ EVO Q4 Octave Ultra
5/8 x 3/4" 25 1.00
3/4 32 1.28
1" 55 2.20
1-1/2" 120 4.80
2" 160 220 250 6.40 8.80 10.00
3" 550 500 22.00 20.00
4" 880 1000 35.20 40.00
6" 1400 1600 56.00 64.00
8" 3500 2800 140.00 112.00
Source:Las Cruces Utilities
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Current Wastewater Demand
Las Cruces Utilities current wastewater usage is estimated based on customer count for Fiscal Year 2019
(as of February 2019) and gallons per customer from the data in above in Figure 38. Total estimated
average daily demand is approximately 11.1 million gallons per day.
Figure 38.Current(2019)Average Daily Wastewater Demand
Land Use Class Customers* Gallons per Estd.Wastewater
Customer per Da ^ Demand GPD
Residential 31,5071 1761 5,545,232
Nonresidential 3,4541 1,6221 5,602,388
Total 34,961 11,147,620
*FY19 Actual Customer Count, Las Cruces Utilities
A City of Las Cruces Utilities, Wastewater Utility Rate Review, Test Year 2018
Projected Wastewater Demand
Using current demand factors as summarized below in Figure 39 and the land use assumptions detailed
in this report, future wastewater demand can be projected.
Figure 39.Wastewater Demand Factors(Base Year 2019)
31,507 Residential Customers
47,631 City of Las Cruces Housing Units (HU)
0.661 Customers/HU
176 GPD/Customer
3,454 Nonresidential Customers
50,199 City of Las Cruces Jobs
0.069 Customers/Job
1,622 GPD/Customer
Source:Las Cruces Utilities;Tischlereise analysis.
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Over the next 10 years, it is projected there will be an increase of 4,251 wastewater customers.
Accordingly, the projected wastewater demand increases by approximately 1.2 million gallons per day by
the end of the 10-year projection period. Average daily total demand at the end of the 10-year period is
projected at almost 12.4 million average gallons per day. This equates to a projected increase in 7,039
equivalent dwelling units (EDU) of demand. Detail is provided in Figure 40.
Figure 40. Projected Wastewater Demand
Base 2019 31,507 3,454 34,961 11,147,620 63,339
1 2020 31,878 3,487 35,364 403 118,016 403 118,016 11,265,636 671 671 64,010
2 2021 32,253 3,519 35,772 408 119,309 811 237,326 11,384,946 678 1,349 64,688
3 2022 32,633 3,552 36,185 413 120,554 1,224 357,880 11,505,500 685 2,034 65,373
4 2023 33,017 3,586 36,603 418 121,857 1,642 479,737 11,627,357 692 2,726 66,065
5 2024 33,406 3,620 37,025 423 123,218 2,064 602,955 11,750,575 700 3,426 66,765
6 2025 33,799 3,654 37,453 427 124,477 2,492 727,431 11,875,051 707 4,133 67,472
7 2026 34,197 3,688 37,885 432 125,847 2,924 853,278 12,000,898 715 4,848 68,187
8 2027 34,599 3,723 38,322 437 127,169 3,361 980,447 12,128,067 723 5,571 68,910
9 2028 35,007 3,758 38,765 442 128,545 3,804 1,108,992 12,256,612 730 6,301 69,640
10 2029 35,419 3,793 39,212 447 129,924 1 4,251 1,238,916 12,386,536 1 738 1 7,039 70,378
Source:TischlerBise,using Average Day Demand factors and projected development shown in the Land Use Assumptions.
Service Area
The service area for the Wastewater Development Fee is citywide within Las Cruces wastewater service
area.
Tischl reschl Base 40
FISCAL I ECONOMIC I PLANNING
Utilities Development Fee Study
City of Las Cruces, New Mexico
Wastewater System Levels of Service and Cost Factors
Wastewater Treatment
The City of Las Cruces is served by three wastewater treatment plants. Grand total capacity is almost 15
million gallons per day.A summary of current wastewater treatment plants and their capacities are shown
below in Figure 41.
Figure 41.Wastewater Treatment Level of Service
Capacity(mgd)
Jacob AHands WWTP (JHWWTP) 13.5
West Mesa Industrial Park Treatment Facility 0.4
East Mesa Water Reclamation Facility 1.0
Tota 1 14.9
Sources:Las Cruces Utilities; Water and Wastewater Impact Fee Study,2013;
City of Las Cruces Water and Wastewater System Master Plan Update, 2008.
Wastewater Treatment Cost
Las Cruces Utilities plans to continue to expand wastewater treatment capacity with improvements at its
existing treatment plants. Below is the current cost per gallon of capacity for wastewater treatment
improvements including construction cost as well as interest costs. The resulting cost per gallon of
capacity is $4.79.
Figure 42.Wastewater Treatment Cost Factors
Wastewater Facility Cost per Gallon [1]
JHWWTP Expansion (Capital Cost) $3.30
JHWWTP Expansion (Interest Cost) $1.49
Total $4.79
[11 City of Las Cruces Water and Wastewater Impact Fee Study,2013;updated
to 2019 dollars with ENR Construction Cost Index forsouthwest city(Dallas, TX).
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Wastewater Collection
Wastewater is collected in the City of Las Cruces through a system of collection lines and lift stations. Las
Cruces Utilities plans to continue to add capacity in the system by expanding these components of the
wastewater collection system to accommodate growth. Current levels of service and costs are detailed
below in the next series of figures.
A total of 551,005 linear feet of system collection lines at a range of sizes from 10 to 42 inches collect
wastewater in the Las Cruces service area. The infrastructure is currently valued at approximately $114
million.This equates to a cost per EDU of$1,793.98.
Figure 43.Wastewater Collection Lines Current Level of Service and Cost Factor
Line Size Linear Feet 2013 Cost/Lin. Ft. 2019 Cost/Lin. Ft.
10" 172,316 $145.75 $159.56 $27,494,240
12" 152,503 $158.01 $172.98 $26,379,744
15" 114,027 $190.70 $208.76 $23,804,743
16" 31,586 $197.33 $216.02 $6,823,218
18" 17,222 $222.03 $243.06 $4,186,065
24" 6,379 $233.59 $255.72 $1,631,167
30" 18,749 $273.23 $299.11 $5,607,939
33" 5,499 $273.23 $299.11 $1,644,741
34" 2,167 $273.23 $299.11 $648,186
36" 10,831 $397.16 $434.78 $4,709,105
42" 19,727 $495.42 $542.35 $10,699,027
Total 551,005 $206.22 $113,628,175
Current Number of Wastewater EDUs 63,339
Cost per EDU $1,793.98
Source:Las Cruces Utilities,City of Las Cruces Water and Wastewater Impact Fee Study,2013,cost updated to 2019 dollars
using Engineering News-Record(ENR)Construction Cost Index for southwest city(Dallas,TX).
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Fourteen lift stations serve the wastewater system in Las Cruces to convey waste to the City's treatment
facilities. Current estimated value for the existing lift stations total approximately $5.4 million. This
equates to a current cost per EDU of$84.59. Detail is provided below.
Figure 44.Wastewater Lift Stations Level of Service and Cost Factor
Lift Station No. of Pumps Capacity(gpm) Cost(2013)*
i
Boutz 1^ 1 900 $511,623 $560,089
Boutz 2^ 2 2100 $1,193,787 $1,306,874
Brown 2 323 $183,616 $201,010
Carver(Rios Encantados) 2 111 $63,100 $69,078
Chisholm 2 160 $90,955 $99,571
Frenger 2 950 $540,047 $591,205
Mesilla Park 2 300 $170,541 $186,696
Sandhill 2 1000 $568,470 $622,321
Shadow Run 2 90 $51,162 $56,009
Tortugas 2 240 $136,433 $149,357
University 3 1200 $454,776 $746,785
Inspiration 2 750 $426,353 $466,741
Sanctuary 2 300 $170,541 $186,696
Holman 2 185 $0 $115,129
28 8609 $4,561,404 $5,357,559
Current Number of Wastewater EDUs 63,339
Cost per EDU $84.59
*Reflects inventory and asset value at time of 2013Impact Fee Study
Boutz land 2 were transposed in the 2013Impact Fee Study
Sources:Las Cruces Utilities;City of Las Cruces Water and Wastewater Impact Fee Study,2013,•cost updated to 2019 dollars
using Engineering News-Record(ENR)Construction Cost Index for southwest city(Dallas,TX).City of Las Cruces Water and
Wastewater System Master Plan Update,2008.
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Wastewater Support Facilities
Las Cruces Utilities is currently constructing a Water Quality Lab to provide water and wastewater testing.
Per Las Cruces Utilities, the facility will be utilized 70 percent for wastewater testing (with the remaining
30 percent for water testing). Costs are allocated to each fee category accordingly. This facility is
anticipated to serve current and future demand over the next 20 years. Level of service and cost factors
are shown below.
Figure 45.Water Quality Lab Level of Service and Cost Factor:Wastewater Portion
Water Quality Laboratory(WQL) 2019 $4,734,222 70% $3,313,956
Total $4,734,222 $3,313,956
Projected Total Wastewater Demand (GPD)(20-Year) 13,763,984
Cost per GPD $0.24
*Remainder serves Water
Source:Las Cruces Utilities;TischlerBise projections.
Credit Analysis for Wastewater System Improvements
Las Cruces has debt financed wastewater improvements to add capacity to the system.To avoid potential
double payment for these wastewater system improvements, a credit is necessary because new
residential and nonresidential development that will pay the impact fee will also contribute to future
principal payments through utility rates on this remaining debt.
As shown in Figure 46, outstanding principal and interest payments for financed wastewater capacity
improvements is approximately $3.4 million, reflecting 20 percent of remaining Wastewater Fund debt
issued for capacity projects per Las Cruces Utilities. To derive the credit amount, principal and interest
subtotal per year is divided by the total demand (average gallons per day) in the wastewater system in
each year.
To account for the time value of money, annual payments per gallon of capacity are discounted using a
net present value formula based on an average interest rate of 4.0 percent.The total net present value of
future debt service payments for capacity improvements is $0.21 per gallon. This amount is subtracted
from the gross capital cost per gallon amount to derive a net capital cost per gallon for wastewater
facilities.
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Figure 46.Wastewater Principal&Interest Payment Credit Evaluation
All • 400
PrincipalYear ...
•► Gallon
2020 $868,179 $467,272 $1,335,451 $267,090 11,265,636 $0.024
2021 $895,246 $438,045 $1,333,291 $266,658 11,384,946 $0.023
2022 $936,457 $398,396 $1,334,853 $266,971 11,505,500 $0.023
2023 $979,178 $356,487 $1,335,664 $267,133 11,627,357 $0.023
2024 $1,016,076 $312,465 $1,328,541 $265,708 11,750,575 $0.023
2025 $1,063,277 $267,622 $1,330,899 $266,180 11,875,051 $0.022
2026 $1,102,862 $231,596 $1,334,458 $266,892 12,000,898 $0.022
2027 $678,692 $200,738 $879,430 $175,886 12,128,067 $0.015
2028 $642,655 $180,208 $822,863 $164,573 12,256,612 $0.013
2029 $661,300 $160,890 $822,190 $164,438 12,386,536 $0.013
2030 $684,367 $140,002 $824,370 $164,874 12,517,837 $0.013
2031 $703,012 $118,044 $821,056 $164,211 12,650,530 $0.013
2032 $663,737 $96,784 $760,521 $152,104 12,784,630 $0.012
2033 $685,460 $76,033 $761,493 $152,299 12,920,151 $0.012
2034 $706,605 $54,481 $761,086 $152,217 13,057,109 $0.012
2035 $611,650 $31,734 $643,384 $128,677 13,195,518 $0.010
2036 $162,500 $11,403 $173,903 $34,781 13,335,395 $0.003
2037 $167,500 $5,829 $173,329 $34,666 13,476,754 $0.003
2038 $0 $0 $0 $0 13,619,612 $0.000
2039 $0 $0 $0 $0 13,763,984 $0.000
Total $13,228,754 $3,548,028 $16,776,782 $3,355,356 $0.278
Discount Rate 4.0%
Net Present Value $0.21
Source:Las Cruces Utilities;Tischlereise analysis
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Proposed Impact Fees for Wastewater
Input variables for the Wastewater Impact Fees are shown in the upper section of Figure 47. For each
component of the impact fee, capital cost per equivalent dwelling unit (EDU) is calculated by multiplying
the average number of gallons per residential unit (EDU) by the net capital cost per gallon of system
capacity.The net capital cost per EDU of$2,726 is the impact fee for a single family unit, or EDU.
Nonresidential impact fees are based on size and type of water meter and their restrictive capacity.
Wastewater development fees are calculated by multiplying the cost per EDU by the capacity ratio for the
corresponding size and type of water meter. The capacity ratio is calibrated to the maximum flow rate
capacity for .625 (5/8) or .75 (3/4) inch meters, the standard for a single family unit (or EDU). The full
impact fee schedule by meter type and size is shown in Figure 48.
Figure 47. Proposed Wastewater Impact Fees
Cost per Gallon of Wastewater Gallons Wastewater Capital
Capacity per Day per EDU Cost per EDU
Wastewater Treatment $4.79 176 $843.04
Wastewater Collection System $1,878.57
Wastewater Support Facilities $0.24 176 $42.24
Subtotal $2,763.85
Wastewater Credit 1 ($0.21) 176 ($36.96)
Wastewater Capital Cost per EDU=> $2,726.89
Wastewater Capital Cost per EDU(Truncated)_>
Proposed Fees:5/8 or 3/4 Inch Meter
ProposedMeter Size(inches) apacity Ratio
Wastewater Fee Surcharge Base
j 50% 20% 30%
0.625 (5/8)or 0.75(3/4) 1.00 $2,726 $1,363 $545 $818
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Figure 48. Proposed Wastewater Impact Fees:All Meter Types and Sizes
W31/41
apacity Capacity Capacity Ratio Ratio Ratio Fee Fee Fee
amstrup Elster Master Meter Kamstrup Elster Master Meter Kamstrup Elster Master Meter
low IQ EVO Q4 Octave Ultra Flow IQ EVO Q4 Octave Ultra Flow IQ EVO Q4 Octave Ultra
25 1.00 $2,726.00
3/4 32 1.28 $3,489.00
1" 55 2.20 $5,997.00
1-1/2" 120 4.80 $13,084.00
2" 160 220 250 6.40 8.80 10.00 $17,446.00 $23,988.00 $27,260.00
3" 550 500 22.00 20.00 $59,972.00 $54,520.00
4" 880 1000 35.20 40.00 $95,955.00 $109,040.00
6" 1400 1600 56.00 64.00 $152,656.00 $174,464.00
8" 1 3500 2800 1 140.00 112.00 1 $381,640.00 $305,312.00
Source:Las Cruces Utilities
Below is a comparison of the updated proposed residential development impact fee amount to the
current rate and the calculated difference.
Figure 49. Proposed Wastewater Impact Fees Comparison to Current Wastewater Fees
Proposed Fees:5/8 or 3/4 Inch Meter
ProposedMeter Size(inches) apacity Ratio
Wastewater Fee Surcharge Base
_j 50% 20% 30%
0.625 (5/8)or 0.75(3/4) 1.00 $2,726 $1,363 $545 $818
Current Fees:5/8 or 3/4 Inch Meter
BuilderMeter Size(inches) Capacity Ratio Current Fee to
Wastewater Fee Surcharge Base
0.625(5/8)or 0.75(3/4) 1.00 $1,943 $971 $389 $583
Change in Fees:5/8 or 3/4 Inch Meter
eter Size(inches) Incre se or Fee to Builder Customer Fee to Rate
(Decreas:)in Fees Surcharge Base
0.625 (5/8)or 0.75(3/4) 1 $783 $392 $157 $235
It should be noted that the above schedules/comparisons reflect the City of Las Cruces' current policy of
allocating payment of the fee—to the builder (50 percent), customer (20 percent), and rate base (30
percent). This allocation is a policy decision and does not reflect an impact fee requirement or a
recommendation of the consultant.
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Wastewater System Growth-Related Needs
Figure 50 lists the 10-year growth needs for wastewater system facilities. Found in the top half of the
figure, the current level of services for wastewater system components are listed and applied to growth
projections to calculate infrastructure needs to accommodate future growth. The projected cost for
wastewater infrastructure to accommodate growth in Las Cruces totals approximately$19.5 million.
Figure 50.Wastewater System Needs to Accommodate Growth
Wastewater Standards
Wastewater Treatment 176.00 gallons per EDU
Wastewater Collection System $1,878.57 cost per EDU
Wastewater Support Facilities 176.00 gallons per EDU multi-yearinterval>>
Wastewater Needs: Base Year 2 1 3 4 109
Dev.Increase in EDUs 6711 6781 6851 6921 7001 738 7,039
Wastewater Treatment GPD 118,096 119,328 120,560 121,792 123,200 129,888 1,238,864A79
Wastewater Collection EDUs 671 678 685 692 700 738 7,039�$�1,878.57Wastewater Support Facilities GPD 118,096 119,328 120,560 121,792 123200 129888 1238864
Total Cost of Growth
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Projected Revenue from Wastewater Impact Fee
Projected revenue from the City's Wastewater Impact Fee is shown in Figure 51. A total of 7,039 new
wastewater EDUs is projected to be served by Las Cruces Utilities by 2029. Multiplying this growth by the
development fee per EDU, projected revenue is calculated ($2,726 per EDU x 7,039 EDUs=$19.2 million).
The remaining cost not offset by the impact fee is a result of the credit included in the fee calculation to
prevent fee payers from paying twice for comparable improvements.
Figure 51. Projected Revenue from Wastewater System Impact Fee
Total Cost 10-Year Growth Cost
Wastewater Treatment $5,934,159 $5,934,159
Wastewater Collection System $13,223,254 $13,223,254
Wastewater Support Facilities $3,313,956 $297,327
Total Expenditures $22,471,368 $19,454,740
Projected Development Impact Fee Revenue
Year EDU
Base 2019 63,339
Year 1 2020 64,010
Year 2021 64,688
Year 3 2022 65,373
Year 4 2023 66,065
Year 5 2024 66,765
Year 6 2025 67,472
Year 2026 68,187
Year 8 2027 68,910
Year 9 2028 69,640
Year 10 2029 70,378
10-Yearincrease 7,039
Projected Revenue => $19,188,314
Projected Expenditures=> $19,454,740
Non-Impact Fee Funding=> ($266,426)
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IMPLEMENTATION AND ADMINISTRATION
Impact fees should be evaluated and updated to reflect recent data. One approach is to adjust for inflation
in construction costs by means of an index like the one published by Engineering News Record (ENR).This
index can be applied against the calculated impact fee. If cost estimates change significantly, the City
should recalculate the fees.
As specified in the New Mexico Development Fees Act, certain accounting requirements need to be met
by the City of Las Cruces. Impact fees must be deposited in separate interest bearing ledger accounts(Sec.
5-8-16 NMSA 1978). Fees should be spent within seven years of when they are collected, with the
expenditures for system improvements for which the fee was collected.
The New Mexico Development Fees Act also provides guidance on refunds(Sec. 5-8-17 NMSA 1978).
Credits are addressed in the New Mexico Act in Section 5-8-15 NMSA 1978. Developer reimbursements
would be provided for system improvements that have been included in the impact fee calculations.
Project improvements normally required as part of the development approval process are not eligible for
credits against impact fees. Specific policies and procedures related to credits or developer
reimbursements for system improvements should be addressed in the ordinance that establishes the
City's fees.
The general concept is that developers may be eligible for credits or reimbursements only if they provide
system improvements that have been included in the impact fee calculations. If a developer constructs a
system improvement that was included in the fee calculations, it is necessary to either reimburse the
developer or provide a credit against the fees.The latter option is more difficult to administer because it
creates unique fees for specific geographic areas. Based on TischlerBise's experience, it is better for a
reimbursement agreement to be established with the developer that constructs a system improvement.
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APPENDIX: NEW • DEVELOPMENT
ARTICLE 8
Land Development Fees and Rights
5-8-1. Short title.
This act [5-8-1 through 5-8-42 NMSA 1978] may be cited as the "Development Fees Act".
History: Laws 1993, ch. 122, § 1.
ANNOTATIONS
Cross references. — For land use easements,see Chapter 47, Article 12 NMSA 1978.
Law reviews. — For article, "Water Supply and Urban Growth in New Mexico: Same Old, Same Old or a
New Era," see 43 Nat. Resources J. 803 (2003).
5-8-2. Definitions.
As used in the Development Fees Act:
A. "affordable housing" means any housing development built to benefit those whose income is at or
below eighty percent of the area median income; and who will pay no more than thirty percent of their
gross monthly income towards such housing;
B. "approved land use assumptions" means land use assumptions adopted originally or as amended under
the Development Fees Act;
C. "assessment" means a determination of the amount of an impact fee;
D. "capital improvement" means any of the following facilities that have a life expectancy of ten or more
years and are owned and operated by or on behalf of a municipality or county:
(1) water supply, treatment and distribution facilities; wastewater collection and treatment facilities;
and storm water, drainage and flood control facilities;
(2) roadway facilities located within the service area, including roads, bridges, bike and pedestrian
trails, bus bays, rights of way, traffic signals, landscaping and any local components of state and federal
highways;
z Source: Ch. 5, art. 8 NMSA 1978, <https:Hlaws.nmonesource.com/w/nmos/Chapter-5-NMSA-1978#!b/a8>,
retrieved on 09/12/2019. (Annotations from the source.)
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(3) buildings for fire, police and rescue and essential equipment costing ten thousand dollars($10,000)
or more and having a life expectancy of ten years or more; and
(4) parks, recreational areas, open space trails and related areas and facilities;
E. "capital improvements plan" means a plan required by the Development Fees Act that identifies capital
improvements or facility expansion for which impact fees may be assessed;
F. "county" means a county of any classification;
G. "facility expansion" means the expansion of the capacity of an existing facility that serves the same
function as an otherwise necessary new capital improvement, in order that the existing facility may serve
new development.The term does not include the repair, maintenance, modernization or expansion of an
existing facility to better serve existing development, including schools and related facilities;
H. "hook-up fee" means a reasonable fee for connection of a service line to an existing gas,water, sewer
or municipal or county utility;
I. "impact fee" means a charge or assessment imposed by a municipality or county on new development
in order to generate revenue for funding or recouping the costs of capital improvements or facility
expansions necessitated by and attributable to the new development. The term includes amortized
charges, lump-sum charges, capital recovery fees, contributions in aid of construction, development fees
and any other fee that functions as described by this definition.The term does not include hook-up fees,
dedication of rights of way or easements or construction or dedication of on-site water distribution,
wastewater collection or drainage facilities,or streets,sidewalks or curbs if the dedication or construction
is required by a previously adopted valid ordinance or regulation and is necessitated by and attributable
to the new development;
J. "land use assumptions" includes a description of the service area and projections of changes in land
uses, densities, intensities and population in the service area over at least a five-year period;
K. "municipality" means any incorporated city, town or village, whether incorporated under general act,
special act or special charter, and H class counties, including any home rule municipality or H class county
chartered under the provisions of Article 10, Section 6 of the constitution of New Mexico;
L. "new development" means the subdivision of land; reconstruction, redevelopment, conversion,
structural alteration, relocation or enlargement of any structure; or any use or extension of the use of
land; any of which increases the number of service units;
M. "qualified professional" means a professional engineer, surveyor, financial analyst or planner
providing services within the scope of his license, education or experience;
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N. "roadway facilities" means arterial or collector streets or roads that have been designated on an
officially adopted roadway plan of the municipality or county, including bridges, bike and pedestrian trails,
bus bays, rights of way,traffic signals, landscaping and any local components of state or federal highways;
O. "service area" means the area within the corporate boundaries or extraterritorial jurisdiction of a
municipality or the boundaries of a county to be served by the capital improvements or facility expansions
specified in the capital improvements plan designated on the basis of sound planning and engineering
standards; and
P. "service unit" means a standardized measure of consumption, use, generation or discharge
attributable to an individual unit of development calculated in accordance with generally accepted
engineering or planning standards fora particular category of capital improvements or facility expansions.
History: Laws 1993, ch. 122, § 2.
ANNOTATIONS
Cross references. — For establishment of H class county,see 4-44-3 NMSA 1978.
5-8-3.Authorization of fee.
A. Unless otherwise specifically authorized by the Development Fees Act, no municipality or county may
enact or impose an impact fee.
B. If it complies with the Development Fees Act, a municipality or county may enact or impose impact
fees on land within its respective corporate boundaries.
C. A municipality and county may enter into a joint powers agreement to provide capital improvements
within an area subject to both county and municipal platting and subdivision jurisdiction or extraterritorial
jurisdiction and may charge an impact fee under the agreement, but if an impact fee is charged in that
area, the municipality and county shall comply with the Development Fees Act.
D. A municipality or county may waive impact fee requirements for affordable housing projects.
History: Laws 1993, ch. 122, § 3; 2001, ch. 176, § 1.
ANNOTATIONS
The 2001 amendment,effective June 15, 2001, added Subsection D.
No vested development rights under impact fee ordinance.—Where the municipal impact fee ordinance
exempted developers who possessed development rights that vested prior to the ordinance's date of
enactment from paying the impact fee; prior to the date the ordinance was enacted, the municipal
planning commission approved a site plan for subdivision of land owned by plaintiff; the approved plan
established zoning,tract boundaries,vehicle access, bicycle and trail access, public transit access, internal
circulation requirements, building heights,setbacks,and common landscape standards; none of the tracts
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were platted; and the regulations which were promulgated pursuant to the ordinance defined vested
rights as development rights acquired and resulting from building permit approval, final plat approval,
preliminary plat approval,or site plan for subdivision or site plan for building permit approval and defined
site plan for subdivision as a plat that covers at least one lot and specifies access and building criteria,
under the ordinance,a developer receives development rights at the time it receives approval of a reliable
platting pattern, the developer's original site plan for subdivision did not confer the development rights
necessary to establish vested rights under the ordinance, because it did not provide a reliable platting
pattern, and the developer was not exempt from paying impact fees.Andalucia Dev. Corp., Inc. v. City of
Albuquerque, 2010-NMCA-052, 148 N.M. 277, 234 P.3d 929.
No common law vested development rights. — Where the municipal impact fee ordinance exempted
developers who possessed development rights that vested prior to the ordinance's date of enactment
from paying the impact fee; prior to the date the ordinance was enacted, the municipal planning
commission approved a site plan for subdivision of land owned by plaintiff;the approved plan established
zoning, tract boundaries, vehicle access, bicycle and trail access, public transit access, internal circulation
requirements, building heights, setbacks, and common landscape standards; none of the tracts were
platted; and development of the property was subject to subsequent municipal approvals and the
continuance of the project remained entirely within the municipality's discretion,the original site plan for
subdivision did not confer a vested development right under common law and the developer was not
exempt from paying impact fees.Andalucia Dev. Corp., Inc. v. City of Albuquerque, 2010-NMCA-052, 148
N.M. 277, 234 P.3d 929.
5-8-4. Items payable by fee.
A. An impact fee may be imposed only to pay the following specified costs of constructing capital
improvements or facility expansions:
(1) estimated capital improvements plan cost;
(2) planning, surveying and engineering fees paid to an independent qualified professional who is not
an employee of the municipality or county for services provided for and directly related to the
construction of capital improvements or facility expansions;
(3) fees actually paid or contracted to be paid to an independent qualified professional, who is not an
employee of the municipality or county, for the preparation or updating of a capital improvements plan;
and
(4) up to three percent of total impact fees collected for administrative costs for municipal or county
employees who are qualified professionals.
B. Projected debt service charges may be included in determining the amount of impact fees only if the
impact fees are used for the payment of principal and interest on bonds, notes or other obligations issued
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to finance construction of capital improvements or facility expansions identified in the capital
improvements plan.
History: Laws 1993, ch. 122, §4.
5-8-5. Items not payable by fee.
Impact fees shall not be imposed or used to pay for:
A. construction, acquisition or expansion of public facilities or assets that are not capital improvements
or facility expansions identified in the capital improvements plan;
B. repair, operation or maintenance of existing or new capital improvements or facility expansions;
C. upgrading, updating, expanding or replacing existing capital improvements to serve existing
development in order to meet stricter safety, efficiency, environmental or regulatory standards;
D. upgrading, updating, expanding or replacing existing capital improvements to provide better service
to existing development;
E. administrative and operating costs of a municipality or county except as provided in Paragraph (4) of
Subsection A of Section 4 [5-8-4 NMSA 1978] of the Development Fees Act;
F. principal payments or debt service charges on bonds or other indebtedness, except as allowed by
Section 4 of the Development Fees Act; or
G. libraries, community centers, schools, projects for economic development and employment growth,
affordable housing or apparatus and equipment of any kind, except capital improvements defined in
Paragraph (3) of Subsection C [D] of Section 2 [5-8-2 NMSA 1978] of the Development Fees Act.
History: Laws 1993, ch. 122, §5.
ANNOTATIONS
Bracketed material. —The bracketed material was inserted by the compiler and it is not part of the law.
The reference in Subsection G to Subsection C of 5-8-2 NMSA 1978,appears to actually refer to Subsection
D of that section.
5-8-6. Capital improvements plan.
A. A municipality or county shall use qualified professionals to prepare the capital improvements plan
and to calculate the impact fee. The capital improvements plan shall follow the infrastructure capital
improvement planning guidelines established by the department of finance and administration and shall
address the following:
(1) a description, as needed to reasonably support the proposed impact fee, which shall be prepared
by a qualified professional, of the existing capital improvements within the service area and the costs to
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upgrade, update, improve, expand or replace the described capital improvements to adequately meet
existing needs and usage and stricter safety, efficiency, environmental or regulatory standards;
(2) an analysis, which shall be prepared by a qualified professional, of the total capacity, the level of
current usage and commitments for usage of capacity of the existing capital improvements;
(3) a description, which shall be prepared by a qualified professional, of all or the parts of the capital
improvements or facility expansions and their costs necessitated by and attributable to new development
in the service area based on the approved land use assumptions;
(4) a definitive table establishing the specific level or quantity of use, consumption, generation or
discharge of a service unit for each category of capital improvements or facility expansions and an
equivalency or conversion table establishing the ratio of a service unit to various types of land uses,
including residential, commercial and industrial;
(5) the total number of projected service units necessitated by and attributable to new development
within the service area based on the approved land use assumptions and calculated in accordance with
generally accepted engineering or planning criteria;
(6) the projected demand for capital improvements or facility expansions required by new service units
accepted over a reasonable period of time, not to exceed ten years; and
(7) anticipated sources of funding independent of impact fees.
B. The analysis required by Paragraph (2) of Subsection A of this section may be prepared on a system-
wide basis within the service area for each major category of capital improvement or facility expansion
for the designated service area.
C. The governing body of a municipality or county is responsible for supervising the implementation of
the capital improvements plan in a timely manner.
History: Laws 1993, ch. 122, § 6.
5-8-7. Maximum fee per service unit.
The fee shall not exceed the cost to pay for a proportionate share of the cost of system improvements,
based upon service units, needed to serve new development.
History: Laws 1993, ch. 122, § 7.
5-8-8.Time for assessment and collection of fee.
A. Assessments of an impact fee shall be made at the earliest possible time. Collection of the impact fee
shall occur at the latest possible time.
B. For land that has been platted in accordance with the subdivision or platting procedures of a
municipality or county before the effective date of the Development Fees Act or for land on which new
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development occurs or is proposed without platting, the municipality or county may assess the impact
fees at the time of development approval or issuance of a building permit, whichever date is earlier.The
assessment shall be valid for a period of not less than four years from the date of development approval
or issuance of a building permit,whichever date is earlier.
C. For land that is platted after the effective date of the Development Fees Act,the municipality or county
shall assess the fees at the time of recording of the subdivision plat and this assessment shall be valid for
a period of not less than four years from the date of recording of the plat.
D. Collection of impact fees shall occur no earlier than the date of issuance of a building permit.
E. For new development that is platted in accordance with the subdivision or platting procedures of a
municipality or county before the adoption of an impact fee, an impact fee shall not be collected on any
service unit for which a valid building permit has been issued.
F. After the expiration of the four-year period described in Subsections B and C of this section, a
municipality or county may adjust the assessed impact fee to the level of current impact fees as provided
in the Development Fees Act.
History: Laws 1993, ch. 122, § 8.
ANNOTATIONS
Compiler's notes. — The phrase "effective date of the Development Fees Act", in Subsections B and C,
refers to the effective date of Laws 1993, ch. 122, which was July 1, 1993.
5-8-9.Additional fee prohibited; exception.
Except as provided in Subsection F of Section 8 [5-8-8 NMSA 1978] of the Development Fees Act, after
assessment of the impact fees attributable to the new development or execution of an agreement for
payment of impact fees, additional impact fees or increases in fees may not be assessed for any reason
unless the number of service units to be developed increases. In the event of an increase in the number
of service units, the impact fees to be imposed are limited to the amount attributable to the additional
service units.
History: Laws 1993, ch. 122, §9.
5-8-10. Agreement with owner regarding payment.
A municipality or county is authorized to enter into an agreement with the owner of a tract of land for
which a plat has been recorded providing for a method of payment of the impact fees over an extended
period of time otherwise in compliance with the Development Fees Act.
History: Laws 1993, ch. 122, § 10.
5-8-11. Collection of fees if services not available.
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Impact fees may be assessed but shall not be collected unless the:
A. collection is made to pay for a capital improvement or facility expansion that has been identified in the
capital improvements plan and the municipality or county commits to complete construction within seven
years and to have the service available within a reasonable period of time after completion of construction
considering the type of capital improvement or facility expansion to be constructed but in no event longer
than seven years;
B. municipality or county agrees that the owner of a new development may construct to adopted
municipal or county standards or finance the capital improvements or facility expansions and agrees that
the costs incurred or funds advanced will be credited against the impact fees otherwise due from the new
development or agrees to reimburse the owner for such costs from impact fees paid from other new
developments that will use such capital improvements or facility expansions,which fees shall be collected
and reimbursed to the property owner of record at the time the plat of the other new development is
recorded; or
C. time period set forth in Subsection A of this section can be extended, provided the municipality or
county obtains a performance bond or similar surety securing performance of the obligation to construct
the capital improvements or facility expansions but in no event longer than seven years from
commencement of construction of the capital improvements or facility expansion for which fees have
been collected.The municipality or county shall establish written procedures to ensure that the owner of
a new development shall not lose the value of the credits. Any refund for fees shall be made as provided
in Section 17 [5-8-17 NMSA 1978] of the Development Fees Act.
History: Laws 1993, ch. 122, § 11.
5-8-12. Entitlement to services.
Any new development for which an impact fee has been paid is entitled to the permanent use and benefit
of the services for which the fee was exacted and is entitled to receive prompt service from any existing
facilities with actual capacity to serve the new service units.
History: Laws 1993, ch. 122, § 12.
5-8-13. Authority of municipality or county to spend funds or enter into agreements to reduce fees.
Municipalities or counties may spend funds from any lawful source or pay for all or a part of the capital
improvements or facility expansions to reduce the amount of impact fees.A developer and a municipality
or county may agree to offset or reduce part or all of the impact fee assessed on that new development,
provided that the public policy which supports the reduction is contained in the appropriate planning
documents of the municipality or county and provided that the development's new proportionate share
of the system improvement is funded with revenues other than impact fees from other new
developments.
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History: Laws 1993, ch. 122, § 13.
5-8-14. Requirement for governmental entities to pay fees.
Governmental entities shall pay all impact fees imposed under the Development Fees Act.
History: Laws 1993, ch. 122, § 14.
5-8-15. Credits against facilities fees.
Any construction of, contributions to or dedications of on-site or off-site facilities, improvements, or real
or personal property with off-site benefits not required to serve the new development, in excess of
minimum municipal and county standards established by a previously adopted and valid ordinance or
regulation and required by a municipality or county as a condition of development approval shall be
credited against impact fees otherwise due from the development.The credit shall include the value of:
A. dedication of land for parks, recreational areas, open space trails and related areas and facilities or
payments in lieu of that dedication; and
B. dedication of rights of way or easements or construction or dedication of on-site water distribution,
wastewater collection or drainage facilities, or streets, sidewalks or curbs.
History: Laws 1993, ch. 122, § 15.
5-8-16. Accounting for fees and interest.
A. The order, ordinance or resolution imposing an impact fee shall provide that all money collected
through the adoption of an impact fee shall be maintained in separate interest-bearing accounts clearly
identifying the payor and the category of capital improvements or facility expansions within the service
area for which the fee was adopted.
B. Interest earned on impact fees shall become part of the account on which it is earned and shall be
subject to all restrictions placed on the use of impact fees under the Development Fees Act.
C. Money from impact fees maybe spent only for the purposes for which the impact fee was imposed as
shown by the capital improvements plan and as authorized by the Development Fees Act.
D. The records of the accounts into which impact fees are deposited shall be open for public inspection
and copying during ordinary business hours of the municipality or county.
E. As part of its annual audit process, a municipality or county shall prepare an annual report describing
the amount of any impact fees collected, encumbered and used during the preceding year by category of
capital improvement and service area identified as provided in Subsection A of this section.
History: Laws 1993, ch. 122, § 16.
5-8-17. Refunds.
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A. Upon the request of an owner of the property on which an impact fee has been paid,the municipality
or county shall refund the impact fee if existing facilities are available and service is not provided or the
municipality or county has, after collecting the fee when service was not available, failed to complete
construction within the time allowed under Section 11 [5-8-11 NMSA 1978] of the Development Fees Act
or service is not available within a reasonable period of time after completion of construction considering
the type of capital improvement or facility expansion to be constructed, but in no event later than seven
years from the date of payment under Subsection A of Section 11 of the Development Fees Act.
B. Upon completion of the capital improvements or facility expansions identified in the capital
improvements plan, the municipality or county shall recalculate the impact fee using the actual costs of
the capital improvements or facility expansion. If the impact fee calculated based on actual costs is less
than the impact fee paid, including any sources of funding not anticipated in the capital improvements
plan, the municipality or county shall refund the difference if the difference exceeds the impact fee paid
by more than ten percent, based upon actual costs.
C. The municipality or county shall refund any impact fee or part of it that is not spent as authorized by
the Development Fees Act within seven years after the date of payment.
D. A refund shall bear interest calculated from the date of collection to the date of refund at the statutory
rate as set forth in Section 56-8-3 NMSA 1978.
E. All refunds shall be made to the record owner of the property at the time the refund is paid. However,
if the impact fees were paid by a governmental entity, payment shall be made to the governmental entity.
F. The owner of the property on which an impact fee has been paid or a governmental entity that has
paid the impact fee has standing to sue for a refund under this section.
History: Laws 1993, ch. 122, § 17.
5-8-18. Compliance with procedures required.
Except as otherwise provided by the Development Fees Act, a municipality or county shall comply with
that act to levy an impact fee.
History: Laws 1993, ch. 122, § 18.
5-8-19. Hearing on land use assumptions.
To impose an impact fee, a municipality or county shall schedule and publish notice of a public hearing to
consider land use assumptions within the designated service area that will be used to develop the capital
improvements plan.
History: Laws 1993, ch. 122, § 19.
5-8-20. Information about assumptions available to public.
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On or before the date of the first publication of the notice of the hearing on land use assumptions, the
municipality or county shall make available to the public its land use assumptions, the time period of the
projections and a description of the general nature of the capital improvement facilities that may be
proposed.
History: Laws 1993, ch. 122, § 20.
5-8-21. Notice of hearing on land use assumptions.
A. The municipality or county shall publish notice of the hearing conforming to locally adopted regulations
governing change-of-zone requests, except as otherwise provided in this section.
B. The notice shall contain:
(1) a headline to read as follows:
"NOTICE OF PUBLIC HEARING ON LAND
USE ASSUMPTIONS RELATING
TO POSSIBLE ADOPTION OF
IMPACT FEES";
(2) the time, date and location of the hearing;
(3) a statement that the purpose of the hearing is to consider the land use assumptions that will be
used to develop a capital improvements plan under which an impact fee may be imposed;
(4) an easily understandable map of the service area to which the land use assumptions apply; and
(5) a statement that any member of the public has the right to appear at the hearing and present
evidence for or against the land use assumptions.
C. The municipality or county, within thirty days after the date of the public hearing, shall approve or
disapprove the land use assumptions.
D. An ordinance, order or resolution approving land use assumptions shall not be adopted as an
emergency measure and its adoption must comply with the procedural requirements of the Development
Fees Act.
History: Laws 1993, ch. 122, § 21.
5-8-22. System-wide land use assumptions.
A. A municipality or county may adopt system-wide land use assumptions for water supply and treatment
facilities in lieu of adopting land use assumptions for each service area for such facilities.
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B. Prior to adopting system-wide land use assumptions, a municipality or county shall follow the public
notice, hearing and other requirements for adopting land use assumptions.
C. After adoption of system-wide land use assumptions, a municipality or county is not required to adopt
additional land use assumptions for a service area for water supply, treatment and distribution facilities
or wastewater collection and treatment facilities as a prerequisite to the adoption of a capital
improvements plan or impact fee, provided the capital improvements plan and impact fee are consistent
with the system-wide land use assumptions.
History: Laws 1993, ch. 122, § 22.
5-8-23. Capital improvements plan required after approval of land use assumptions.
If the governing body adopts an ordinance, order or resolution approving the land use assumptions, the
municipality or county shall provide for a capital improvements plan to be developed by qualified
professionals using generally accepted engineering and planning practices in accordance with Section 6
[5-8-6 NMSA 1978] of the Development Fees Act.
History: Laws 1993, ch. 122, § 23.
5-8-24. Hearing on capital improvements plan and impact fee.
Upon completion of the capital improvements plan,the governing body shall schedule and publish notice
of a public hearing to discuss the adoption of the capital improvements plan and imposition of the impact
fee. The public hearing must be held by the governing body of the municipality or county to discuss the
proposed ordinance, order or resolution adopting a capital improvements plan and imposing an impact
fee.
History: Laws 1993, ch. 122, § 24.
5-8-25. Information about plan available to public.
On or before the date of the first publication of the notice of the hearing on the capital improvements
plan and impact fee,the plan shall be made available to the public.
History: Laws 1993, ch. 122, § 25.
5-8-26. Notice of hearing on capital improvements plan and impact fee.
A. The municipality or county shall publish notice of the hearing conforming to locally adopted regulations
governing change-of-zone requests, except as otherwise provided in this section.
B. The notice must contain the following:
(1) a headline to read as follows:
"NOTICE OF PUBLIC HEARING ON CAPITAL
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IMPROVEMENTS PLAN AND
ADOPTION OF IMPACT
FEES";
(2) the time, date and location of the hearing;
(3) a statement that the purpose of the hearing is to consider the proposed capital improvements plan
and the adoption of an impact fee;
(4) an easily understandable map of the service area in which the proposed fee will be imposed;
(5) the amount of the proposed impact fee per service unit; and
(6) a statement that any member of the public has the right to appear at the hearing and present
evidence for or against the plan and proposed fee.
History: Laws 1993, ch. 122, § 26.
5-8-27. Advisory committee comments on capital improvements plan and impact fees.
The advisory committee created under Section 37 [5-8-37 NMSA 1978] of the Development Fees Act shall
file its written comments on the proposed capital improvements plan and impact fees before the fifth
business day before the date of the public hearing on the plan and fees.
History: Laws 1993, ch. 122, § 27.
5-8-28. Approval of capital improvements plan and impact fee required.
A. The municipality or county, within thirty days after the date of the public hearing on the capital
improvements plan and impact fee, shall approve, disapprove or modify the adoption of the capital
improvements plan and imposition of an impact fee.
B. An ordinance, order or resolution approving the capital improvements plan and imposition of an
impact fee shall not be adopted as an emergency measure and its adoption must comply with the
procedural requirements of the Development Fees Act.
History: Laws 1993, ch. 122, § 28.
5-8-29. Consolidation of land use assumptions and capital improvements plan.
A. In lieu of separately adopting the land use assumptions and capital improvements plan for a service
area containing not greater than three hundred units, a municipality or county may consolidate the land
use assumptions and the capital improvements plan, and adopt the assumptions,the plan and the impact
fee simultaneously.
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B. If a municipality or county elects to consolidate the land use assumptions and capital improvements
plan as authorized by Subsection A of this section, the municipality or county shall first comply with
Section 20 [5-8-20 NMSA 1978] of the Development Fees Act and follow the public notice and hearing
requirements for adopting a capital improvements plan and impact fee as provided in Section 21 [5-8-21
NMSA 1978] of that act, except:
(1) the headline for the notice by publication shall read as follows:
"NOTICE OF PUBLIC HEARING ON
ADOPTION OF LAND USE
ASSUMPTIONS AND
IMPACT FEES";
(2) the notice shall state that the municipality or county intends to adopt land use assumptions, a
capital improvements plan and impact fees at the hearing and does not intend to hold separate hearings
to adopt the land use assumptions, capital improvements plan and impact fees;
(3) the notice shall specify a date, not earlier than sixty days after publication of the first notice, and
must state that if a person, by not later than the date specified, makes a written request for separate
hearings, the governing body shall hold separate hearings to adopt the land use assumptions and capital
improvements plan; and
(4) the notice shall provide the name and mailing address of the official of the municipality or county
to whom a request for separate hearings shall be sent.
C. In addition to the requirements of Subsection B of this section,the municipality or county shall comply
with all other requirements for adopting land use assumptions, a capital improvements plan and an
impact fee.
History: Laws 1993, ch. 122, § 29.
5-8-30. Periodic update of land use assumptions and capital improvements plan required.
A. A municipality or county imposing an impact fee shall update the land use assumptions and capital
improvements plan at least every five years. The initial five-year period begins on the day the capital
improvements plan is adopted.
B. The municipality or county shall review and evaluate its current land use assumptions and shall cause
an update of the capital improvements plan to be prepared in accordance with the Development Fees
Act.
History: Laws 1993, ch. 122, § 30.
5-8-31. Hearing on updated land use assumptions and capital improvements plan.
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The governing body of the municipality or county shall, within sixty days after the date it receives the
update of the land use assumptions and the capital improvements plan, schedule and publish notice of a
public hearing to discuss and review the update and shall determine whether to amend the plan.
History: Laws 1993, ch. 122, §31.
5-8-32. Hearing on amendments to land use assumptions,capital improvements plan or impact fee.
A public hearing shall be held by the governing body of the municipality or county to discuss the proposed
ordinance, order or resolution amending land use assumptions, the capital improvements plan or the
impact fee.On or before the date of the first publication of the notice of the hearing on the amendments,
the land use assumptions and the capital improvements plan, including the amount of any proposed
amended impact fee per service unit, shall be made available to the public.
History: Laws 1993, ch. 122, § 32.
5-8-33. Notice of hearing on amendments to land use assumptions, capital improvements plan or
impact fee.
A. The municipality or county shall publish notice of the hearing conforming to locally adopted regulations
governing change-of-zone requests, except as otherwise provided in this section.
B. The notice must contain the following:
(1) a headline to read as follows:
"NOTICE OF PUBLIC HEARING ON AMENDMENTS
TO LAND USE ASSUMPTIONS, CAPITAL
IMPROVEMENTS PLAN OR
IMPACT FEES";
(2) the time, date and location of the hearing;
(3) a statement that the purpose of the hearing is to consider amendments to land use assumptions,
capital improvements plan or impact fees;
(4) an easily understandable description and map of the service area on which the update is being
prepared; and
(5) a statement that any member of the public has the right to appear at the hearing and present
evidence for or against the update.
History: Laws 1993, ch. 122, § 33.
5-8-34. Advisory committee comments on amendments.
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The advisory committee created under Section 37 [5-8-37 NMSA 1978] of the Development Fees Act shall
file its written comments with the applicable municipality or county on the proposed amendments to the
land use assumptions, capital improvements plan or impact fees before the fifth business day before the
date of the public hearing on the amendments.
History: Laws 1993, ch. 122, §34.
5-8-35. Approval of amendments required.
A. The municipality or county,within thirty days after the date of the public hearing on the amendments,
shall approve, disapprove, revise or modify the amendments to the land use assumptions, the capital
improvements plan or impact fees.
B. An ordinance, order or resolution approving the amendments to the land use assumptions,the capital
improvements plan or impact fees shall not be adopted as an emergency measure and such adoption
must comply with the procedural requirements of the Development Fees Act.
History: Laws 1993, ch. 122, §35.
5-8-36. Determination that no update of land use assumptions, capital improvements plan or impact
fee is needed.
A. If at the time an update under Section 30[5-8-30 NMSA 1978]of the Development Fees Act is required,
the governing body determines that no changes to the land use assumptions, capital improvements plan
or impact fees are needed, it may, as an alternative to the updating requirements of Sections 30 through
35 [5-8-30 through 5-8-35 NMSA 1978] of the Development Fees Act, publish notice of its determination
conforming to locally adopted regulations governing change-of-zone requests, except as otherwise
provided in this section.
B. The notice shall contain the following:
(1) a headline to read as follows:
"NOTICE OF DETERMINATION NOT TO
UPDATE LAND USE ASSUMPTIONS,
CAPITAL IMPROVEMENTS PLAN OR
IMPACT FEES";
(2) a statement that the governing body of the municipality or county has determined that no change
to the land use assumptions, capital improvements plan or impact fees are necessary;
(3) an easily understandable description and a map of the service area in which the updating has been
determined to be unnecessary;
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(4) a statement that if,within a specified date,which date shall be at least sixty days after publication
of the notice, a person makes a written request to the designated official of the municipality or county
requesting that the land use assumptions, capital improvements plan or impact fees be updated, the
governing body may accept or reject such request by following the requirements of Sections 30 through
35 of the Development Fees Act; and
(5) a statement identifying the name and mailing address of the official of the municipality or county
to whom a request for an update should be sent.
C. The advisory committee shall file its written comments on the need for updating the land use
assumptions, capital improvements plan and impact fees before the fifth business day before the earliest
notice of the governing body's decision that no update is necessary is mailed or published.
D. If by the date specified in Paragraph (4) of Subsection B of this section, a person requests in writing
that the land use assumptions, capital improvements plan or impact fees be updated,the governing body
shall cause, accept or reject an update of the land use assumptions and capital improvements plan to be
prepared in accordance with Sections 30 through 35 of the Development Fees Act.
E. An ordinance, order or resolution determining the need for updating land use assumptions, capital
improvements plan or impact fees shall not be adopted as an emergency measure and its adoption must
comply with the procedural requirements of the Development Fees Act.
History: Laws 1993, ch. 122, § 36.
5-8-37. Advisory committee.
A. On or before the date on which the order, ordinance or resolution is adopted under Section 19 [5-8-
19 NMSA 1978]of the Development Fees Act,the governing body of a municipality or county shall appoint
a capital improvements advisory committee.
B. The advisory committee shall be composed of not less than five members who shall be appointed by a
majority vote of the governing body. Not less than forty percent of the membership of the advisory
committee must be representative of the real estate, development or building industries. No members
shall be employees or officials of a municipality or county or other governmental entity.
C. The advisory committee serves in an advisory capacity and shall:
(1) advise and assist the municipality or county in adopting land use assumptions;
(2) review the capital improvements plan and file written comments;
(3) monitor and evaluate implementation of the capital improvements plan;
(4) file annual reports with respect to the progress of the capital improvements plan and report to the
municipality or county any perceived inequities in implementing the plan or imposing the impact fee; and
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(5) advise the municipality or county of the need to update or revise the land use assumptions, capital
improvements plan and impact fee.
D. The municipality or county shall make available to the advisory committee any professional reports
with respect to developing and implementing the capital improvements plan.
E. The governing body of the municipality or county shall adopt procedural rules for the advisory
committee to follow in carrying out its duties.
History: Laws 1993, ch. 122, § 37.
5-8-38. Duties to be performed within time limits.
If the governing body of the municipality or county does not perform a duty imposed under the
Development Fees Act within the prescribed period, a person who has paid an impact fee or an owner of
land on which an impact fee has been paid has the right to present a written request to the governing
body of the municipality or county stating the nature of the unperformed duty and requesting that it be
performed within sixty days after the date of the request. If the governing body of the municipality or
county finds that the duty is required under the Development Fees Act and is late in being performed, it
shall cause the duty to commence within sixty days after the date of the request and continue until
completion.
History: Laws 1993, ch. 122, § 38.
5-8-39. Records of hearings.
A record shall be made of any public hearing provided for by the Development Fees Act.The record shall
be maintained and be made available for public inspection by the municipality or county for at least ten
years after the date of the public hearing.
History: Laws 1993, ch. 122, § 39.
5-8-40. Prior impact fees replaced by fees under Development Fees Act.
An impact fee that is in place on the effective date of the Development Fees Act shall be replaced by an
impact fee imposed under that act by July 1, 1995. Any municipality or county having an impact fee that
has not been replaced under that act by July 1, 1995 shall be liable to any party who, after the effective
date of that act, pays an impact fee that exceeds the maximum permitted under that act by more than
ten percent for an amount equal to two times the difference between the maximum impact fee allowed
and the actual impact fee imposed, plus reasonable attorneys' fees and court costs.
History: Laws 1993, ch. 122, §40.
5-8-41. No effect on taxes or other charges.
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The Development Fees Act does not prohibit, affect or regulate any tax, fee, charge or assessment
specifically authorized by state law.
History: Laws 1993, ch. 122, §41.
5-8-42. Moratorium on development prohibited.
A moratorium shall not be placed on new development for the sole purpose of awaiting the completion
of all or any part of the process necessary to develop, adopt or update impact fees.
History: Laws 1993, ch. 122, §42.
5-8-43. Purpose;transfer of development rights.
A. The purpose of this section is to:
(1) clarify an application of existing authority;
(2) provide guidelines for counties and municipalities to regulate transfers of development rights
consistent with comprehensive plans;
(3) encourage the conservation of ecological, agricultural and historical land; and
(4) require public notification of transfers of development rights.
B. A municipality or county may, by ordinance, provide for voluntary transfer of all or partial development
rights from one parcel of land to another parcel of land.
C. The ordinance shall identify on a zoning map areas from which development rights may be transferred
and areas to which development rights may be transferred.
D. The ordinance shall provide for:
(1) the voluntary transfer of a development right from one parcel of land to increase the intensity of
development of another parcel of land;
(2) joint powers agreements, if applicable,for administration of transfers of development rights across
jurisdictional boundaries;
(3) the method of transfer of development rights, including methods of determining the accounting
for the rights transferred;
(4) the reasonable rules to effect and control transfers and ensure compliance with the provisions of
the ordinance; and
(5) public notification to the areas to which development rights may be transferred.
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E. Transference of a development right shall be in writing and executed by the owner of the parcel from
which the development right is being transferred and acknowledged by the transferor. A development
right shall not be subject to condemnation.
F. As used in this section, "development right" means the rights permitted to a lot, parcel or area of land
under a zoning ordinance or local law respecting permissible use,area, density or height of improvements
executed thereon,and development rights may be calculated and allocated in accordance with density or
height limitations or any criteria that will effectively quantify a development right in a reasonable and
uniform manner.
G. Nothing in this section shall be construed to authorize a municipality or a county to impair existing
property rights.
History: Laws 2003, ch. 229, § 1.
ANNOTATIONS
Cross references. — For property law in general,see Chapter 47 NMSA 1978.
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