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HomeMy WebLinkAbout2003 01 13 Informational B Impact Fee Analysis Report COMMISSION AGENDA ITEM B CONSENT INFORMATIONAL X PUBLIC HEARING REGULAR January 13,2003 Meeting MGR hEPT ~ Authorization REQUEST: City Manager Providing a copy of the Impact Fee Analysis Report for Police, FireIRescue and Parks and Recreation PURPOSE: The purpose ofthis agenda item is to provide the City Commission with a copy of the Impact Fee Analysis for Police, FirelRescue, and Parks & Recreation in preparation for an Ordinance adopting the updated and new fees at the January 27,2003 City Commission meeting. CONSIDERA TIONS: The City retained LDI to perform an analysis of the current Police and Fire Impact Fee as well as create a new Parks and Recreation impact fee. The executive summary and analysis report are attached_ In addition, an electronic version of the report without the appendices is on the server at shared on Cityha/l/City of Winter Springs/Docs/ReportslImpact Fee Study 2002/ImpactFees.doc. The recommended residential impact fees for police and fire/rescue are in line with the surrounding jurisdictions. The recommended police and fire/rescue commercial impact fees are substantially higher than those of the surrounding jurisdictions. This is due to the limited commercial base and the associated high incident rate for these properties. Additionally, the parks and recreation impact fee for the City of Winter Springs is significantly higher than that of the surrounding jurisdictions. This is due to the much higher level of service provided by the City of Winter Springs versus that of the surrounding jurisdictions. The City Attorney is reviewing the appropriate impact fee ordinances which are tentatively scheduled for consideration offirst reading on January 27,2003. Informational Agenda Item B January 13,2003 Page 2 ATTACHMENTS: 1. Impact Fee Analysis Executive Summary 2. Impact Fee Analysis for Police, FireIRescue, and Parks & Recreation Report COMMISSION ACTION: Attachment No, 1 December 3, 2002 Mr. Ron McLemore, City Manager City of Winter Springs 1126 East S_R. 434 Winter Springs, Fl. 32708 RE: Impact Fee Report LDI Project No. 01026.12 Dear Mr. McLemore: Please find attached, twenty (20) copies ofthe final version ofthe Impact Fee Report for fire/rescue, police, and parks and recreation services. The report details the methodology and calculation of the impact fee for each of the above-referenced services. The base impact fee is provided along with a calculation of the appropriate credit due for each. The credit, not to be confused with a discount, will vary depending on the year in which the impact fee is paid. As such, the credit has been provided through year 2007. At that time, the impact fee amounts should be reassessed. There are several methodologies used for calculating impact fees, which most consultants categorize into two categories 1) Standards Driven and 2) Improvements Driven. The standards driven methodology provides for an impact fee determination based upon the theoretical proportionate share of the cost for capital improvements necessary to accommodate an increment of growth. The rates are based upon the historical capital investments made to support current levels of service. The costs of historic capital improvements is an easily identifiable and readily defensible amount. Improvements driven determination of impact fees uses projections for future capital improvements needed to accommodate future growth. The disadvantages of improvements driven impact fee calculations are 1) fees do not take into account unused capacity at existing facilities, 2) forecasted capital improvements for new development is an estimate of cost and need and therefore subject to constant revision and update, 3) generally, it is difficult to apportion cost of specific improvements among present deficiencies, growth, and excess capacity, and 4) fees may be based upon intermediate range forecasts for capital improvements which may not reflect the true needs since major capital improvements may be beyond the time frame of the capital forecast. For these reasons, LDI choose to apply the Standards Driven methodology to determine the impact fee amounts for the City of Winter Springs. Development of impact fees requires that some rationality and proportionality be incorporated into their determination. Impact fees are typically justified by the use of a nexus test which requires the relationship between new development and the facilities required to support the development be established, that the cost associated with the new facilities be identified, and that those costs be proportioned among new development receiving benefit from these facilities. There are various issues involved in determining a justifiable impact fee amount which is fair, practical and defensible. These major issues are 1) establishing a level of service standard, 2) identifying current deficiencies, 3) apportioning cost to new development, 4) determining appropriate credits, and 5) incorporating time-price differentials. For each of the services for which impact fees were determined, the above referenced issues were determined and identified. Supporting documentation for each of these issues in contained within the appendix section of the report for verification of data. In reviewing the results of the report, the Winter Springs residential impact fees for police and fire/rescue are in line with the surrounding jurisdictions. The police and fire/rescue commercial impact fees are substantially higher than those of the surrounding jurisdictions. This is due to the limited commercial base and the associated high incident rate for these properties. Additionally, the parks and recreation impact fee for the City of Winter Springs is significantly higher than that of the surrounding jurisdictions. This is due to the much higher level of service provided by the City of Winter Springs versus that of the surrounding jurisdictions. It should also be noted that the City's financial data records used for the projection of credits due were insufficiently detailed. As such, it was necessary that certain assumptions be made in order to arrive at a credit amount. These assumptions were related to the percentage of the Personal Service Taxes/Franchise Fees (pST/FF) devoted to retiring each of the bonds. The assumptions made were based on consultation with and upon the recommendations of the City of Winter Springs finance department. Finally, LDI has prepared a spreadsheet identifying the developable land uses according to the City of Winter Springs Future Land Use Map. This spreadsheet identifies the project impact fee assessment amounts that would be generated by the development of these properties. Various assumptions were made in determining these amounts which are detailed on the spreadsheet. Using the projected impact fee amounts, the City of Winter Springs should review their projected capital costs for the future planning period and determine if sufficient funding will be available for the construction of the needed capital improvements. Should there be an excess in impact fee assessments versus the projected capital needs, the City should consider providing a rate reduction for those impact fees which are substantially higher than those of the surrounding cities. To this end, please find attached twenty (20) copies of the finalized version of the Impact Fee Report for use by the City and the associated ordinances required to implement these new fees. Should you have any questions or require additional explanation of the methods of calculation, please do not hesitate to contact our office. Sincerely, Land Design Innovations, Inc. Tracy L. Crowe, AICP Principal Planner Enclosures TLC:jc