AGENDA REPORT
DATE: March 25, 2024
TO: City Commission
FROM: Bill McDaniel, City Manager
SUBJECT: Public Hearing to Amend Article II of Chapter 86, Plant City Code
Fire Rescue Impact Fees
EXECUTIVE SUMMARY:
An impact fee rate study was conducted in 2006 and established a rate schedule for fire rescue impact fees. These charges have remained the same for 18 years.
On September 26, 2022, the City Commission approved an agreement with Alfred Benesch & Company (Benesch) to perform a citywide impact fee update study.
Benesch provided an extensive review of the current impact fees as required by Section 163.31801, Florida Statutes (FS) and found that the City’s fire rescue impact fees are well below the current cost to provide for growth.
The consultant utilized the following criteria to determine the recommended fire rescue impact fees for Plant City:
• Consumption-based methodology that is widely used in Florida and ensures that fees are calculated at a level not to charge for any deficiencies
• Documentation of capital inventory and level of service
• Estimation of the value of the capital inventory
• Recognizing a credit for non-impact fee contributions from future development
• Calculation of the demand component to measure impact from each land use
Implementation of the recommended impact fee schedule must comply with the following Phase-In Limitation rules required by the State unless a study identifies extraordinary circumstances:
• Up to 25% increase - over two years
• Between 25-50% - over four installments
• Cannot be increased more than 50% of the current rate
After review with the consultant, extraordinary circumstances impacting Plant City’s fire service include:
• Significant construction cost inflation
• Continuing population growth - over 15% or 6,000 residents in the past ten years
• Outdated rate studies
• Additional capital facilities needed to continue to provide high-quality service
Staff requests that the City Commission adopt the findings of extraordinary circumstances, especially when also considering the following conditions:
• The City built Fire Station 3 in Fiscal Year 2019 for a cost of $3,663,787, and impact fees at the current level only funded 44% of the total cost due to the significant cost increases.
• Fire Station 4 will be included in the long-range plan which may cost between $7 million and $10 million.
The consultant recommends a new fire rescue impact fee schedule as seen in the ordinance. Below are a few areas from the complete schedule:
|
Land Use |
Unit |
Functional Residents per Unit |
Proposed Impact Fee |
Existing Impact Fee |
|
Residential |
|
|
|
|
|
Single Family |
du |
1.84 |
$507 |
$363 |
|
Multi-Family |
du |
1.39 |
$383 |
$308 |
|
Non-Residential |
|
|
|
|
|
Light Industrial |
1,000 sf |
0.50 |
$147 |
$139 |
|
Office (50,000 sq. ft.) |
1,000 sf |
0.97 |
$285 |
$262 |
|
Retail (125,000 sq. ft.) |
1,000 sf |
2.93 |
$862 |
$343 |
Once approved, the City will provide a 90-day notice before imposing the new rates in July 2024. Upon implementation, the impact fees should be reviewed every four years, unless new extraordinary circumstances arise prior to July 2028.
The City will continue to maintain a separate fund for this impact fee to separately track receipts and disbursements and monitor compliance.
RECOMMENDATION:
That the City Commission adopt an ordinance amending Article II of Chapter 86, Plant City Code, regarding fire rescue impact fees.
FISCAL IMPACT:
The additional fire rescue impact fee revenue will be recorded in Fund 352 and will be used for expansion related capital improvements as authorized in the code.
Prepared by: Diane Reichard, Chief Financial Officer