Fort Walton Beach Council agenda — 01-23-2007 workshop agenda — reading text

revenue stream to completely support capital infrastructure expansIon. It is appropriate to emphasize that impact fees must be tied to growth- and the resulting need to expand services. Renewal and replacement projects, as well as on going preventative maintenance, cannot be funded through revenues collected from impact fees. Growth is the principal issue which should be addressed in determining what, if any, additional impact fees the Gty chooses to assess. Each year, the Gty receives updated permanent population data from the Bureau of Economic and Business Research Center (BEBR) at the University of Florida. BEBR estimated the Oty's growth over the past decade at 6. 95% and estimates similar growth over the next 10- year period. This projection would equate to a population increase of approximately 1,500 residents over the next decade. However, redevelopment- including changes to the Gty's building regulations and specific zoning districts may allow for increased density and!or localized heavy development which may provide higher growth rates than those projected based on past history. The Gty's Community Development Services staff believes changes in land use designations and density increases may result in a population boom over the next 20 to 30 years. The downtown area is currently experiencing a resurgence of redevelopment, with property owners taking advantage of recent density increase changes. Six multi-family developments are now complete or in the construction phase, while another half dozen or so similar developments are in the final planning stage. If the Gty realizes similar growth through redevelopment in the next several years and CDS projections are accurate, the Gty may potentially reach a population density of 54,000 residents over the same 20 to 30 year planning horizon. While it is impossible to accurately predict population levels over a long term planning horizon, the Oty should expect population densities somewhere between BEBR's estimate and those proposed by the CDS Department. 4 If the Gty were to realize this growth, impact fee assessments may present a substantial revenue stream. Since the inception of our current water and sewer impact fees, the Gty has collected 466A03 in additional revenue, a ponion of which is being used to fund construction of our recent water and sewer system improvements. If additional impact fees are assessed, new revenue sources would be available to fund expansion!renovation improvements for aging Gty facilities, parks, fire and police capital improvements, and others, if needed. The methodology for funding infrastructure capital improvements utilizing impact fees and other revenue sources is complicated and beyond the scope of this report. Should Council desire to increase the current impact fees or implement new fees, consideration should be given to hiring an outside consultant to perform an Impact Fee Study. able to Any revisions to the current impact fee schedule plus any proposed new impact fees, must be withstand close legal scrutiny. Outsourcing this effort to an unaffiliated and unbiased third party is the usual and most effective means to accomplish this directive. Should Council desire, staff will prepare an estimated cost for this study in conjunction with the upcoming FY2007- 08 Budget Workshop. Recommendation: Staff requests Council direction on the assessment of increased water and sewer impact fees and!or the implementation of new impact fees. Should Council desire to implement new impact fees and!or increase the existing impact fees, staff will prepare a " Request for Qualifications" ( RFQ)to solicit the services of a qualified and competent consulting firm to perform an Impact Fee Study. will Currently, no funding is allocated in the current FY2006- 2007 budget for this effort. Staff in the FY2007 -2008 budget; or, at the direction prepare a budget estimate for the study for inclusion of Council, staff will secure funding from the current FY2006- 2007 budget to commission the study this year. I?- D7 Date 0'/ 1. Date 5