AGENDA ITEM REPORT
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AN ORDINANCE ADOPTING THE IMPACT FEE STUDY ENTITLED, “CITY OF COCONUT CREEK IMPACT FEE STUDY” DATED SEPTEMBER 30, 2024, PREPARED BY BENESCH, INC.; AMENDING THE CITY’S CODE OF ORDINANCES, BY AMENDING CHAPTER 13, LAND DEVELOPMENT CODE, ARTICLE I, “ADMINISTRATION, REGULATIONS AND PROCEDURES,” DIVISION 5 “IMPACT FEES,” BY DELETING SECTIONS 118 THROUGH 126 RELATING TO IMPACT FEES, IN THEIR ENTIRETY AND CREATING A NEW SECTION 118, “FIRE-RESCUE, LAW ENFORCEMENT, AND PARKS AND RECREATION IMPACT FEES,” TO ADOPT A NEW IMPACT FEE PROGRAM FOR FIRE-RESCUE, LAW ENFORCEMENT, AND PARKS AND RECREATION FACILITIES; AND BY AMENDING CHAPTER 13, LAND DEVELOPMENT CODE, ARTICLE II, “SUBDIVISION REGULATIONS,” DIVISION 5, “SUBDIVISION DESIGN STANDARDS,” TO DELETE SECTION 13-267, “PUBLIC SITES AND OPEN SPACES,” IN ITS ENTIRETY TO DELETE DEDICATION REQUIREMENTS FOR RESIDENTIAL DEVELOPMENTS. (FIRST READING POSTPONED TO THE JANUARY 23, 2025 COMMISSION MEETING)
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BACKGROUND:
This is a request to adopt the City of Coconut Creek Impact Fee Study, dated September 30, 2024, and amend the City’s Land Development Code to update the Fire- Rescue and Law Enforcement Impact Fees and to create a new impact fee for Parks and Recreation Facilities.
The City of Coconut Creek manages a development impact fee program to ensure that new developments contribute their fair share of the costs to fund capital improvements necessary to maintain adequate levels of service, consistent with the City's Comprehensive Plan and Florida Law.
The City’s consultant, Benesch, Inc. (formerly known as Tindale & Oliver, Inc.), was tasked with preparing an impact fee study to evaluate and recommend revisions to the City’s current fire/rescue and police impact fees, and parks and recreation dedication requirements for residential developments. Because of the complexity of the issue and the required timeliness of the data, the City initiated an updated analysis during the summer of 2024.
In addition to evaluating current programs, the study evaluated the need and feasibility of establishing the following new impact fee programs:
1. Transportation Mobility Fee;
2. Sustainability Impact Fee;
3. Stormwater Impact Fee; and
4. Government Facilities Impact Fee.
At this time, the consultant does not recommend adding these new impact fee programs and identifies the reasons for not doing so in Section V, Page 44, of the Impact Fee Study.
DISCUSSION:
Updating the City's development impact fees is essential to providing capital facilities to accommodate the City’s population growth, which is projected to increase approximately fifteen percent (15%) by 2035. The current fees, which have not been revised since 2006, are outdated, and in some cases are insufficient to cover the costs associated with new development. Further, recent legislative changes now govern impact fee programs.
Florida law imposes restrictions on local governments regarding the increase of existing impact fee rates. Specifically, if a local government opts to increase existing impact fee rates by twenty-five percent (25%) or less, the increase must be implemented in two (2) equal annual increments. For increases to existing fee rates between twenty-five and fifty percent (25-50%), the adjustment must be phased in over four (4) equal installments.
Increases to existing fee rates (fire-rescue and law enforcement) that exceed fifty percent (50%) and the phase-in limitations are prohibited unless the local government demonstrates extraordinary circumstances, holds two (2) publicly-noticed workshops dedicated to the extraordinary circumstances necessitating the need to exceed the phase-in limitation and fifty percent (50%) maximum, and receives approval by a 2/3 vote of the City Commission.
The consultant has meticulously designed the fire-rescue and law enforcement impact fee schedule to comply with these limitations, phasing in the fees that are increasing over a four (4) year period to no more than the maximum fifty percent (50%) increase. At this time, it is not recommended to increase fee rates beyond the maximum fifty percent (50%), four (4) year phase-in limitation set by the Florida Statutes.
The City does not currently have a parks and recreation facilities impact fee that meets modern definitions and legal standards for such fees. Section 13-267, "Public sites and open spaces," of the City’s Land Development Code, adopted in 1986, requires new residential developments to either dedicate land or provide cash equivalent contributions for parks and open spaces to maintain adequate levels of service. Although this ordinance and the City have been very successful in preserving and creating parks and recreation facilities, this Code provision will be deleted and replaced under this new ordinance to provide consistency with current legal requirements.
Therefore, a new impact fee for parks and recreation facilities will be introduced into the City’s development impact fee program. This new impact fee is not subject to the fifty percent (50%) maximum and phasing requirements outlined above for the existing impact fee rates since it is a new impact fee.
The City's updated impact fee program reflects a careful consideration of current legislative requirements, recent data, and the ongoing growth within the City. By adjusting the fees, both increases and decreases, the City aims to ensure that new development contributes its fair share to the infrastructure needs, supporting sustainable growth and maintaining service levels for all residents.
Following the Planning and Zoning Board meeting on November 13, 2024, City staff made minor revisions to the ordinance as described below:
• Revised report for scrivnor’s errors and clarity;
• Removed a section of the ordinance called “Alternative Fee: Calculation” as this is not a requirement in state law and could encourage applicants to challenge the methodology of the adopted impact fee;
• Revised Section 13-118.9(a) to clarify that when an impact generating project involves a land use not listed under the impact fee land use categories the impact fee shall be the same as provided in this ordinance for the most similar land use as determined by the Director of Sustainable Development; and
• Revised the backup document: “Backup Summary Impact Fee Study and Ordinance” to be consistent with the changes made to the ordinance.
Nilgun Kamp, the City’s consultant from Benesch, will be in attendance at the meeting to present the findings and recommendations of the study.
RECOMMENDATION:
The Planning and Zoning Board, at its November 13, 2024, meeting, recommended approval of the ordinance. Staff recommends approval of this ordinance.
FISCAL IMPACT:
REVENUES: TBD
EXPENDITURES: $0
BUDGETED? No
NOTES: Impact fees will be deposited to designated revenue accounts. Fire Rescue - 36-V32411; Law Enforcement - 36-V32410; Parks and Recreation - TBD upon ordinance approval.