Placement: Second Reading of Ordinances / Public Hearing
Action Requested: Motion / Vote
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Ordinance 23-23, Public Hearing, Amending and Restating the City of Port St. Lucie Code of Ordinances Chapter 159, Article IV, Entitled “Public Buildings Impact Fee Schedule”.
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Submitted By: Bethany Grubbs, Planner III
Strategic Plan Link: The City's Goal of high-quality infrastructure and facilities.
Executive Summary (General Business): This is a request to adopt an updated Public Buildings Impact Fee Ordinance, Fee Schedule and the 2023 Impact Fee Study.
Presentation Information: Staff and TischlerBise, the City’s consultant, will provide a presentation.
Staff Recommendation: Move that the Council adopt the Ordinance amending and restating the City’s Public Building Impact Fee Ordinance and Fee Schedule.
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve the Ordinance amending and restating the City’s Public Building Impact Fee Ordinance and Fee Schedule.
2. Move that the Council not approve the Ordinance and provide staff direction.
Background: The City of Port St. Lucie is updating its Impact Fee Ordinance and Fee Schedule related to public buildings to fund capital facilities needed to meet the demand created by future development. The City has contracted with TishlerBise, a fiscal, economic, and planning consulting firm to update its impact fees pursuant to Florida Statutes § 163.31801. The consultant has prepared the 2023 Impact Fee Study, which was used to determine the fee amounts included in the Fee Schedule.
Local governments in Florida may assess impact fees to offset infrastructure costs necessitated by future growth. Impact fees are one-time payments used to construct capital improvements needed to accommodate future development; therefore, as vacant lands within Port St. Lucie develop, or as existing uses expand, the demand imposed upon Port St. Lucie for additional capital facilities and related infrastructure increases proportionately. The fee represents future development’s proportionate share of capital facilities and infrastructure costs. Impact fees may be used for capital improvements or debt service for growth-related infrastructure. In contrast to general taxes, impact fees may not be used for operations, maintenance, replacement, or correcting existing deficiencies.
The Public Building Impact Fee was last updated and adopted in 2013. In 2019, the Budget Advisory Committee analyzed the City’s impact fees and made a number of findings. The Budget Advisory Committee recommended that the City study the fees and review the interlocal agreements with the County as they related to impact fees. Pursuant to those recommendations, an impact fee study was started but, it was put on hold while the City implemented mobility fees. Once the mobility fees were adopted, the City began working on the impact fee study.
The Florida Impact Fee Act, updated in 2021, places limitations on how much local governments, school districts, or special districts may increase an impact fee. An increase to a current impact fee rate which exceeds 25 percent but is not more than 50 percent of the current rate must be phased in over four years. Impact fee schedules can only be revised every four years.
The proposed four-year phasing fee schedule may be found in the attached Ordinance 23-23 and will be effective on June 30, 2023.
On September 21, 2022, City staff provided a PowerPoint presentation at the Bi-Annual Stakeholder meeting to inform the stakeholders of the proposed fee updates.
On January 25, 2023, City staff held two informational workshops for the key stakeholders of the local development community and the general public. These workshops highlighted the need for the impact fee schedule update.
On March 16, 2023, the Bi-Annual Stakeholder meeting agenda included a discussion of the first reading of the impact fee ordinances scheduled for 3/27/2023.
On March 24, 2023, City staff met with the Development Review Task Force.
On March 27, 2023, Council tabled the First Reading of the Ordinance to a date certain of April 24, 2023, and a Second Reading on May 8, 2023.
On March 31, 2023, City staff met with the Chamber of Commerce, Treasure Coast Builders Association, the Realtors Association, and the Economic Development Council to understand the concerns of the stakeholders, collect feedback, and discuss the technical report, presentations, and supporting documents.
Issues/Analysis: See attached, the 2023 Impact Fee Study.
Financial Information: The updated public buildings impact fees include components for a public works facility and public buildings. The plan-based methodology is used for the public works facility, and the incremental expansion methodology is used for the public buildings component. Port St. Lucie plans to maintain its existing level of service for public buildings over the next 10 years and it plans to construct a public works facility that will benefit all development through 2051. Based on November 2022 cost estimates, Port St. Lucie plans to spend $15,000,000 to construct 29,782 square feet. Future development in Port St. Lucie will maintain current levels of service by incrementally expanding public buildings. Port St. Lucie’s existing inventory includes 111,008 square feet of public buildings. Future development demands approximately 45,691 square feet of public buildings at a cost of $22,845,569 (45,691.1 square feet X $500 per square foot). If development occurs at a more rapid rate than projected, the demand for infrastructure will increase and impact fee revenue will increase at a corresponding rate. If development occurs at a slower rate than projected, the demand for infrastructure will also decrease, along with impact fee revenue. Over the next 10 years, projected impact fee revenues equal $22.66 million, and projected expenditures equal $31.90 million. Existing development’s share of $7.79 million for the public works facility may not be paid with impact fees.
Special Consideration: N/A
Location of Project: City-wide.
Attachments:
1. Ordinance 23-23
2. 2023 Impact Fee Study (Technical Report)
3. Single-Family Fee Comparison
4. 23-24 CIP
5. Staff Presentation
6. Consultant’s Presentation
7. Public Comment
NOTE: All of the listed items in the “Attachment” section above are in the custody of the City Clerk. Any item(s) not provided in City Council packets are available upon request from the City Clerk.
Internal Reference Number: 9607
Legal Sufficiency Review:
Reviewed by Margaret M. Carland, Senior Deputy City Attorney. Approved as to Legal form and sufficiency by James D. Stokes, City Attorney.