AGENDA REPORT
DATE: March 25, 2024
TO: City Commission
FROM: Bill McDaniel, City Manager
SUBJECT: Public Hearing to Amend Article III of Chapter 86, Plant City Code -
Law Enforcement Impact Fees
EXECUTIVE SUMMARY:
An impact fee rate study was conducted in 2006 and established a rate schedule for law enforcement impact fees. These charges have remained the same for 21 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 law enforcement impact fees are well below the current cost to provide for growth.
The consultant utilized the following criteria to determine the recommended law enforcement 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 law enforcement 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• Outdated rate studies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 has included a Public Safety Training facility in the Capital Improvement Plan, estimated at $1.65 million, which could cost $5 million.
• As the City grows, so will the need for additional police infrastructure to serve the citizens.
The consultant recommends a new law enforcement 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 |
$1,148 |
$538 |
|
Multi-Family |
du |
1.39 |
$867 |
$454 |
|
Non-Residential |
|
|
|
|
|
Light Industrial |
1,000 sf |
0.50 |
$312 |
$205 |
|
Office (50,000 sq. ft.) |
1,000 sf |
0.97 |
$605 |
$388 |
|
Retail (125,000 sq. ft.) |
1,000 sf |
2.93 |
$1,829 |
$506 |
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 III of Chapter 86, Plant City Code, regarding law enforcement impact fees.
FISCAL IMPACT:
The additional law enforcement impact fee revenue will be recorded in Fund 354 and will be used for expansion related capital improvements as authorized in the code.
Prepared by: Diane Reichard, Chief Financial Officer