The importance of impact fees

first_img Support conservation and fish with NEW Florida specialty license plate Please enter your comment! Update: Parks and Recreation, Fire Rescue and Law Enforcement Impact Fee Studies From Orange County Commissioner Bryan NelsonLocal government impact fees are considered an important source of revenue for funding infrastructure that is required by growth in a County. Specifically, these fees are a one-time charge of new development and cover costs associated with new land and capital facilities or equipment. These fees are authorized and regulated by Florida Statutes, where they must meet the following conditions: The fees must be calculated using recent and localized data; have separate accounting; meet the burden of proof for public agencies and satisfy the dual rational nexus test. Orange County’s local government impact fees can be found under Orange County Code Chapter 23: Impact Fees in relation to schools, fire/rescue services, law enforcement, parks and recreation, and transportation. Fee variables are reviewed every 5 years, and the capital improvements element (CIE) and capital improvements program (CIP) are implemented as well. In regard to fee study schedules, fees for schools were updated in 2016 and showed a phased increase. Additionally, impact fees for parks and recreation, fire/rescue services, and law enforcement are still under review. Furthermore, review of fees for transportation is expected to be completed in early 2018.Impact fees are calculated using a consumption-based methodology consisting of 3 components: Cost, credit, and demand. This methodology can be illustrated with the following equation: Impact Fee= [Demand x Unit Cost] (New Growth Cost) – Credit (New Revenue)The following findings were observed from the technical study on parks and recreation: 23 community parks with a total acreage of 1,081; 19 specialty parks with a total acreage of 850; 6 district parks with a total acreage of 1,418; and 3 regional parks with a total acreage of 11,112. Overall, there were 51 parks studied total (14,461 acres). Neighborhood parks, pocket parks, habitat land, and parks located in municipalities were not included in this study. Park acreage was classified into 2 categories: Activity-based and resource-based. Activity-based acres include man-made elements such as sports fields, playgrounds, and basketball courts. Resource-based acres include areas, natural water bodies, and wooded areas and can be used for activities such as hiking, fishing, and camping. It was observed that most parks in the study have both classifications.Orange County Commissioner Bryan NelsonIn applying the cost component to parks and recreation, the study focused on facility and equipment values as well as land value. Facility and equipment values were based on recent bids and purchases, insurance reports and indexed unit costs from the 2011 study. Land value was based on recent land purchases, the current land value of existing parkland and of similarly-sized vacant parcels, recent land sales (2013-2016) and changes in land values since 2011. For activity-based acres, there was a -8% ($60,000 – $65,000) change in land value per acre between 2005 and 2017; for resource-based acres, there was a -2% ($30,000 – $31,000) change between those years. In applying the value costs to residents, the study found that there was a -25% ($308 – $408) change and a 34% ($299-$224) change for land and facility costs per resident, respectively, between 2005 and 2017 (-4% total). Additionally, to date, the credit per resident is $51 (8% credit as a % of cost), with a -79% change for 2005-17. Furthermore, as of this year, the net impact cost per resident was estimated to be $555, with a 40% change for 2005-2017. Lastly, the 2017 Orange County calculated impact fee schedule for land use has been established as follows: $1,544 for a single family home (2,000 square feet); $1,044 for a multi-family home; and $1,150 for a mobile home.In summary, it is important for residents to note the changes observed in the 2011 study. For example, in regard single-family residence, an increase in the cost per resident has increased the impact fee; a decrease in the credit per resident has increased the impact fee, and an increase in the demand (residents per unit) has increased the impact fee. Overall, there has been more than a 59% increase in the calculated impact fee for a single-family residence as it relates to parks and recreation.For Orange County Fire Rescue, the following findings were made in the technical study: 38 fire stations (owned, excludes 3 leased stations); 3 ancillary facilities; 352,000 square feet of building space; located on 92.5 acres of land; and the total cost for necessary vehicles and equipment was $83.2 million. It is important to note that when the cost component was applied, the estimated asset value per call was $2,058; the average annual calls made between 2013 and 2016 was 103,787. To date, the credit per call is $894 (43% credit as a % of the cost), with a 488% ($894 – $152) change between 2012 and 2017. The net impact cost per call for 2017 was $1,164, with a total cost of $2,058, $894 total credit per call, and a -2% ($1,164 – $1,193) change. The call based demand was based on the average annual calls by land use (residential/non-residential) between 2013 and 2016 used. Calls not assigned to a land use were redistributed based on the distribution of calls assigned to a land use. The Orange County Property Appraiser’s database was used for units.In summary, utilizing the single-family residence example again, since the 2011 study, an increase in the cost per call increased the impact fee; an increase in the credit per call decreased the impact fee, and an increase in the demand (calls per unit) increased the impact fee. Overall, there has been more than an 18% increase in the calculated impact fee for a single-family residence as it relates to fire rescue.For law enforcement, the study made the following findings: 9 primary buildings; 3 support buildings; 374,000 square feet of total building space; located on 143.5 acres of land; and $125 million in total costs for necessary vehicles and equipment. Similar to the findings made in Orange County Fire Rescue, a significant finding for law enforcement was that the asset value per call was estimated to be $534 for the cost component. For 2017, the total credit per call was $20 (based on residential land uses), with a -26% ($20 – $27) change between 2012 and 2017. The net impact cost per call for 2017 was $514 (based on residential land uses), with a 106% ($514 – $250) change between 2012 and 2017. Factors used to base the demand for calls for law enforcement were similar to that of Fire Rescue, with the difference being that law enforcement excluded non-patrol calls to government land uses, public schools and mobile hang-ups.In summary, in utilizing the single-family residence example once more, since the 2012 study, an increase in the cost per call increased the impact fee; a decrease in the credit per call increased the impact fee, and a decrease in the demand (calls per unit) decreased the impact fee. Overall, there has been more than a 76% increase in the calculated impact fee for a single-family residence as it relates to law enforcement.For the parks impact fee, Orange County is considering Retirement/Age Restricted land use for parks as well as the deferral of the parks impact fee to Certificates of Occupancy.  Additionally, the County is considering indexing impact fees for parks and recreation, fire rescue, and law enforcement.The Local Planning Agency had a work session for fire rescue and law enforcement on September 21st, and plans on holding an approval hearing for these departments on October 19th as well as an approval hearing for parks and recreation on November 16th. The Orange County Board of County Commissioners will also be having a hearing on the technical studies to be announced at a later date. The Anatomy of Fear LEAVE A REPLY Cancel reply Save my name, email, and website in this browser for the next time I comment. TAGSImpact FeesOrange County Commissioner Bryan Nelson Previous articleThe connection between health and hungerNext articleBlue Darters begin their crucial eight-day stretch tonight Denise Connell RELATED ARTICLESMORE FROM AUTHOR Please enter your name here Free webinar for job seekers on best interview answers, hosted by Goodwill June 11 Share on Facebook Tweet on Twitter You have entered an incorrect email address! Please enter your email address herelast_img

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