Fort Walton Beach Council minutes — 01-23-07 workshop minutes — reading text

163 MINUTES OF THE COUNCIL WORKSHOP MEETING OF THE CITY OF FORT WALTON BEACH, FLORIDA JANUARY 23, 2007 INTRODUCTION A Council Workshop Meeting of the City Council of Fort Walton Beach, Florida, was held on January 23, 2007 at 5: 30 p. m. wth the following members Tuesday, present: Councilmen: Mike Holmes, Bill Patterson, Bob and Mike Minich Campbell, Jim Tucker, Dr. Wayne Pullen, Jim Hartwell, Also Present: Joyce Shanahan, City Manager; Helen Spencer, City Clerk; Lisa Absher, Finance Director; Toni Craig, City Attomey; and Department Directors CALL TO ORDER The Mayor called the meeting to order. PLEDGE OF ALLEGIANCE The Mayor led in the of Pledge Allegiance. PURPOSE OF MEETING-IMPACT FEES The Mayor announced the purpose of the meeting INaS to discuss impact fees. John Hofstad, Utilities Director, began by defining impact fees as one- time assessments governmental agencies or special districts to cover the cost by of additional public facilities or made necessary by new services development or the expansion of existing development. Several different areas where impact fees can be assessed include roads and facilities; parks and recreational transportation; water and sewer space; police/ fire facilities; libraries, schools; and facilities. public buildings and Mr. Hofstad presented a power-point presentation that identified current local government jurisdictions; impact fees assessed by tap fees vs. impact fees; and the benefits of impact fees, existing residents are not forced to pay for growth and including impact fees create a revenue stream specifically for capacity increases by new development; capital infrastructure expansion resulting from population growth attributed to new development; and taxes do not have to be increased to growth. Also presented were the challenges of support impact fees to include the practice results in double taxation; impact fees can lead to stagnant growth and limit economic development; builders and developers will pass on the fee onto the buyer; increasing efforts of developers to construct property costs; and impact fees hamper affordable housing. Discussion included that impact fees can be applied to future debts as long as the debt is not to replace or repair an existing use. Also discussed INaS that the and sewer at this time, and not br City's impact fees are only for water other areas such as police/ fire or recreation. Mr. Hofstad continued his presentation by discussing whether impact fees should be that impact fees must be tied to considered and growth. Mr. Hofstad reported that the Bureau of Economic and Business Research Center (BEBR) at the decade at 6. 95% and estimates a similar University of Florida estimated the City's growth the past growth over the next 10- year period, or 1, 500 residents. He advised the City' s CDS Department Services staff believes changes in land use density increases may result in a population boom over the next 20- 30 designations and additional residents, which would have a years, perhaps 19, 000 significant impact on the City's level of service. Mr. Hofstad relayed that while it is impossible to predict population levels over a population densities somewhere between the estimate of BEBR long term, the City should expect and those proposed CDS Department. by the City's 164 Council Workshop 1- 23- 07 IMPACT FEES ( CONTI The City Manager explained the impact fees in the City have not been adjusted since 2004 and explained two questions Council needed to consider regarding impact fees are 1) whether to the 2004 numbers for inflation or adjust increasing beyond its current level based on other communities; and 2) whether or not to explore other impact fee areas, such as police/ fire; parks and recreation etc., and whether to pursue it this budget ~ ar or wait until the 2007-08 budget. Council discussion included whether BEBR takes into account the density increases already i: approved by the City. Missy McKim, CDS Director, advised that BEBR uses statistics from past growth as a method of determining increases in population, but that a more accurate way would be to look at actual zoning and densities permitted, then do an estimated build~ ut potential for the City and project that into a specific time frame. She advised that Staff will be looking at that through the EAR Report, the Comprehensive Plan, and the CRA Plan. Further discussion included the life expectancy of the study if performed this year based on projected CRA recommendations or actions approved by Council. The Finance Director advised the study will look at future needs and costs, and explained that when there is a significant change in the cost of materials, a change in impact fees will occur. The Finance Director informed that materials that are post- Katrina will incur significant impact on cost of materials. The City Manager asked for a consensus and stated if the funds can be found for this budget year, Staff will retum with an item to move forward with impact fees at the February meeting. She clarified Staff would be looking at an increase in water/sewer impact fees and in addition, if Council concurred, Staff would study the other areas whether or not to asses impact fees in public safety, parks and recreation, library, etc. and study other areas. Consensus of Council was for Staff to return in February with a formalized Staff Report on impact fees. ADJOURNMENT Being no further business, the meeting adjourned at 6: 20 p. m. APPROVED: ; J.- I'3- tJ7 MAYOR: ~~ M. A-r;7~ST: r. a~ CITY CLERK Iva