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HomeMy WebLinkAbout2002 05 13 Public Hearings A Interim Services Fee COMMISSION AGENDA ITEM A Consent Infonnational Pub lie Hearing x Regular May 13. 2002 Meeting &v4 >jgfr Mgr I Att. I Dept. REQUEST: Consider for first reading an Ordinance to repeal Article XI of Chapter 6 of the City Code of Ordinances, entitled Interim Services Fee. PURPOSE: By Ordinance Nu. 527 the CitycifWinter Springs adopted an ordinance entitled Interim Services Fee. (See Sec. 6-250 et seq. of the City Code) The implementation of the interim services fee was to defray the costs to the City of providing the municipal services to newly improved property prior to the imposition of ad valorem taxes on such improvements. The Ordinance provided that the fee was not in any manner to be directly or indirectly an ad valorem tax. [n 1999. the Florida Supreme Court reviewed a similar ordinance in Collier County v. State of Florida, 733 SO.3d 1012 (Fla. 1999) and found that the interim governmental services fee was not a valid special assessment, user fee, or impact fee, and therefore was an unconstitutional taxation, a.c; the power. to tax is limited to the power provided by the Florida Constitution and General Law. The Court noted Collier County was forthright and candid in the purposes it was trying to accomplish, and further noted they were unaware of why the legislature has declined to act to provide some relief to local governments charged with providing these services, but that local goverrunents redress was with the Florida legislature. As a result of the Supreme Court's ruling, the City orWinter Springs discontinued collecting fees Page I of 2 under Ordinance No. 527. The City, therefore, has been complying with the Supreme Cuurt' S ruling. Ordinance No. 527 is "dead letter law." In other words, the Ordinance has been effectively overturned by the Supreme Court's decision. As a "housing keeping" matter, the City Commission should repeal Ordinance No. 527 and remove it from the Code book APPLICABLE LA W AND PUBLIC POLICY: Florida Constitution, Article VII Chapter 192, Florida Statutes Section 6-250 et seq., City Code Collier County v. Slate of Florida, 733 So.2d 1012 (fla. 1999) CONSIDERA TrONS: I. In 1999, the Florida Supreme Court declared that interim goverrunent Service fees are unconstitutional 2. The City of Winter Springs has discontinued collecting interim government Service fees. 3. The City Commission should repeal Section 6-250, et seq. of the Code to conform the Code to the current law in Florida. STAFF RECOMMENDATION: Approve for second reading and adoption Ordinance 2002-18 to repeal Chapter 6, Article Xl of the City Code. ATTACHMENT: Ordinance 2002-18, with Exhibit "A" COMMISSION ACTION: F ..oocs,c,ty ofWIl1'cr Spn"6''^2I'nd..\,\&Cf'd' J\.Rcr<.l-lr.laim ~'I'"".~.D.()2. ~pd Page 2 of 2 ORDINANCE NO. 2002-L8 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF WINTER SPRlNGS, fLORIDA, REPEALING ARTICLE XI OF CHAPTER 6 OF THE CITY CODE ENTITLED INTERIM SERVlCES FEE; PROVIDING FOR THE REPEAL OF PRIOR INCONSISTENT ORDINANCES AND RESOLUTIONS; PROVIDING FOR SEVERABU,lTY; AND PROVlDING FOR AN EFFECTIVE DATE. WHEREAS, [he power oflocal governments to levy taxes is granted within Article Vll of the Florida Constitution; and ' WHEREAS, the Florida Supreme Court has found interim governmental services fees are not valid special assessments, user fees nor impact fees, but instead an authorized tax. as local jurisdictions may only tax real property as proviueu by the Florida Constitution or by general law. See Collier County v. Slale of Florida, 733 SO.2d 1012 (Fla. 1999); and WHEREAS, the City of Winter Springs discontinueu (;olk(;ting interim servIce fees immediately after the Collier County decision, and WHEREAS, as a "house-cleaning" matter the City Conunission desires to remove the interim c:ervice fee provisions from the City Code; and WHEREAS, the City Commission of the City of Winter Springs, Florida, hereby finds this ordinance to be in the best interests of the puhlic health; safety, and welfare of the citizens of Winter Springs. NOW, THEREFORE, TilE crry COMM rSSION O"F THE CITY OF WINTER SPRINGS HEREDY ORDAINS, AS FOLLOWS: Section 1. Recitals. The foregoing recitals are herehy fully incorporated herein by the reference as legislative findings of the City Commission of Winter Springs Section 2. Repeal Code. Chapter 6, Article Xl, entitled lnterim Services Fee is hereby repealed in its entirety, A copy of this Article is attached hereto as Exhibit" AU for reference purposes only Section 3 Repeal of Prior Inconsistent Ordinances and Resolutions. All prior inconsistent ordinances and resolutions adopted by the City Commission, or parts of prior ordinances and resolutions in conflict herewith, are hereby repealed to the extent of the conflict. CIty ur Wmter SprUlgs OrUlnUI1Ce No. 2002-1 ~ r.ee 1 nf 2 Section 4. Severability. If any section, subsection, sentence, clause, phrase, word or provision of this ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction, \vhether for substantive, procedural, or any other reason, such portion shall be deemed a separate, distinct and independent provision, and such holding shall not affect the validity of the remaining portions of this orGinancc. Section 5 Effective Date. This Ordinance shall become effective immediately upon adoption by the City Commission of the City of Winter Springs. Florida. ADOPTED by the City Commission of the City of Winter Springs, Florida, in a regular meeting assemhled on the _ day of __.___' 2002. PAUL P. PARTYKA Mayor ATTEST: ANDREA LORFNZO-LUACES City Clerk Approved as to legal form and sufficiency for the City of Winter Springs only: Anthony A. Garganese. City Attorney First Reading: Second Reading: Effective Date: f:\Lft1\,"rUcnb\CI.y or Wlnlcr ~rrlng<\Ordl","c...\R'I"'" - rh'r 6 Art XI ~.A.01...,.lI City (')f Winter Springs Ordinance No. 2002.18 l'Rg-< 1 of 1 EXHlBIT "A" ARTICLE XI. INTERIM SERVICES FEE Sec. 6-250. Authority. The city has the authority to adopt this article pursuant to Article VIII of the Constitution of the State of Florida. Chapter 166, Florida Statutes. (Ord. No. 527, 92, 9-14-92) Sec, 6-251. Findings and determinations. It is hereby found, determined and declared as follows: (1) The costs of providing the specified municipal services (as defined herein) exceed the fees charged for such services and consequently those costs are borne in large part through ad valorem taxation. (2) From the time a new structure is completed and occupied until the structure is included on the ad valorem tax rolls as of the ensuing January 1, the city provides the specified municipal services and other direct services for which it receives no compensation. (3) The demand for additional municipal services increases with the development or real property located in the city and the subsequent occupancy of structures located thereon and the existing fiscal structure of the city is insufficient to meet the ever increasing demands for municipal services imposed upon the city by such new development. (4) The implementation of an interim services fee to defray the costs to the city of providing the specified municipal services to newly improved property prior to the imposition of ad valorem taxes on such improvements is in the best interests of the citizens and residents of the City of Winter Springs and reflects the city's desire for fiscal management. (5) The interim services fee by this chapter is not in any manner, directly or indirectly, intended as an ad valorem tax, nor is the amount of the fee established herein related in any way to the valuation of the property receiving the specified municipal services. (Ord. No. 527, S 2, 9-14-92) Sec. 6-252. Definitions. The following words when used herein shall have the meanings indicated, unless the context clearly indicates otherwise: Owner shall mean the person or legal entity reflected in the J1ublic record) of Seminole County. Florida, as the fee simple title holder of real property upon which a structure has heen completed. SpecIfied municipal sell/ices shall mean aJld he limited to the following municipal services provided hy the city: fJubhc safety, code enforcement, engineer/II;;, parks alld re(..'rea/ion, street maintenance. alld fJUilding maintenance (excluding building maintenance on general servicesfimctions). Structure shall mean any building or improvements cOflStructed upon real properly located within the corporate limits (~r the cityfor which a certificate of occupancy is required, either permanC!lt or temporary, for the full or partial use thereof (Ord. No. 527, 92,9-14-92) Sec. 6-253. Esta blishment of interim services fee. Except as set forth in section 6-255 hereof, an interim services fee is hereby imposed upon every structure located within the city from the date of issuance of a certificate of occupancy for such structure through December 31 of that year. (Ord. No. 527, 92,9-14-92) Sec. 6-254. Calculation of interim services fee. (a) The fee schedule shall be based upon the cost of providing the specified municipal services to the structures subject to the interim services fee from the date of issuance of a certificate of occupancy through Oecember 31, of that year, less anticipated franchise fees, utility taxes, fines and forfeitures, charges for services and other revenues from user-based fees. The initial interim services fees and all charges thereto shall be by separate resolution passed by the city commission. Fee schedule shall be reviewed annually by the city commission to make such revisions as are consistent with the findings and determinations set forth in section 6-251 hereof and the uses of the interim services fees set forth in section 6-258 hereof. (b) Notwithstanding the fee schedule set forth in section 6-254(a), trle minimum interim sen/ices fee charged shall be ten dollars ($10.00). (c) The interim services fee for residential structures shall be calculated on a per dwelling unit basis. The interim sen/ices fee for new hotel and motel structures shall be calculated on a per room basis. The interim services fee for all nonresidential structures shall be calculated on the basis of a cost per one thousand (1,000) gross square feet or gross leasable square feet, or portion thereof. (d) The building official shall be responsible for calculating the applicable interim sen/ices fee and determining the fee category into which a structure should be placed. If a structure does not clearly fit into a fee category as set forth in section 6-254(a) then the building official shall place such structure in the fee category which he deems to be the most consistent with the purposes of this chapter. (Ord. No 527,92.9-14-92) Soc. 6-255. Exemptions. The interim services fees shall not be imposed upon (1) Structures requiring a certificate of occupancy solely for change of use of saic structure. (2) Remodeling or additions to structures (such as swimming pools and fences) which do not result in a net increase in gross square footage. (3) Maintenance and repairs. (4) Any structure owned by governmental units and used for governmental purposes or governmentally owned structures which are leased to an organization which uses the structures solely for tax-exempt purposes. (Ord. No. 527, S 2,9-14-92) Sec. 6-256. Collection of interim services fee. The interim services fee shall be paid by the owner of the real property prior to the issuance of a certificate of occupancy. for any structure located on the owner's real property. The building official shall be charged with the responsibility for collection of the interim services fees. Upon request for a certificate of occupancy, the building official shall issue a statement of the interim services fee due and payable for the structure in question. Such fee statement shall be presented to the owner of the real property on which such structure is located and shall be collected by the building official prior to the issuance of a certificate of occupancy. In the event a person other than the owner pays the interim services fee, then the owner shall be discharged from all further obligations hereunder to the city and the person paying such interim services fee on behalf of the owner shall not subsequently be entitled to a refund thereof. COrd. No. 527. 92,9-14-92) Sec. 6-257. Issuance of certificates of occupancy. No certificate of occupancy, shall be issued for any structure, or portion thereof, unless and until the interim services fee required by this chapter has been paid. COrd. No. 527, 92,9-14-92) Sec. 6-258. Interim services fee fund. (a) The interim services fees collected by the city pursuant to this chapter shall be kept separated from other revenue of the city and paid into a proprietary fund which is hereby created. to be known as the "Interim Services Fee Fund." Such fund shall be used exclusively for the purposes of providing the specified municipal services for the benefit of those structures upon which the interim services fee has been imposed and collected. (b) The city manager shall provide the city commission with recommendations for expenditure of monies from the interim services fee fund during the annual budget process. (c) Any funds on deposit in the interim services fee fund which are not immediately necessary for expenditure pursuant to this chapter shall be invested in interest bearing accounts. All income derived shalf be deposited in the interim services fee fund. Owners shall not receive a credit for or be entitled to interest from the investment of funds. (d) Any funds on deposit in the interim services fee fund which are not expended or encumbered six (6) years from the date the interim services fee were paid shall, upon application of the feepayer and proof of payment, be returned with interest at the rate of six (6) percent per annum from the date of payment. No. 527, 92,9-14-92) (Ord.