MARION COUNTY BOARD March 24, 2015 OF COUNTY
Transcription
MARION COUNTY BOARD March 24, 2015 OF COUNTY
President Elect & V.P. Debbie Klugger Center State Construction Phone: (352) 694-5022 President Todd Taylor Florida Source Construction (352) 512-0177 Immediate Past President Keith Poole KAP Design Group (352) 572-7454 Associate Vice President Mike Monroe Acentria Insurance (352) (352) 390-8993 Secretary Jackie Suarez Architectural Artworks (352) 978-6075 Treasurer David Harden American Heritage Land Surveying Phone: (352) 732-4581 MARION COUNTY BOARD OF COUNTY COMMISSIONERS 601 NE 25th Avenue Ocala, Florida 34471 March 24, 2015 RE: Position Letter on the reinstatement of transportation impact fees in Marion County Dear Board of County Commissioners, Having recently received, and after a preliminary review of the draft report prepared by your transportation impact fee consultant (Tindale Oliver), we wish to communicate and present to the BCC at Tuesday’s Workshop our position on the report’s findings. We also wish to offer commentary and counsel on certain components that we have taken exception with. Before you read on, please be assured that although we have not always agreed on the concept of transportation impact fees to fund future transportation improvements contemplated in the County’s 5-year Transportation Improvement Program (TIP), we have and will continue to support the goal of assuring that Marion County has adequate levels of service for our transportation system to meet the current, as well as future needs as our community continues to grow and prosper as most desirable location to live and work and to raise our families in a financially stable, healthy area that offers the prospect of offering good paying jobs in a diverse economy to perpetuate the area’s quality of life. What we haven’t always agreed on is how best to fund these infrastructure needs in an equitable manner, so as to fairly distribute the cost of municipal infrastructure among all stakeholders who truly stand to benefit from such municipal infrastructure improvements. We stand ready and are prepared to offer our support of Marion County to reach an equitable solution to the question of identifying the proper funding sources to bring to our community an affordable future that will not impede our prospects to attract new business and industry to our county, but also maintain incentives for existing businesses and companies to have good reason to grow and prosper with us. Kind regards, David Harden, Executive Officer Marion County Building Industry Association P.O. Box 128 Ocala, Florida 34478 Phone (352) 694-4133 Fax (352) 694-5971 www.mcbia.org Presented to the Marion County Board of County Commissioners Transportation Impact Fee Workshop 9:00AM Tuesday, March 24, 2015 Marion County Building Industry Association Position on the Re-Instatement of Transportation Impact Fees What are Transportation Impact Fees? Marion County’s impact fees are charges levied against new development in order to generate revenue for the express purpose of specific capital improvements of transportation improvements necessitated by the impact that new development has on the roadway’s level of service. Impact fees should not be confused with subdivision exactions that require developers either to "dedicate" land for public use or contribute cash in lieu of land for the purchase of land or facilities perceived to be necessary by local governments. As a fundamental tool, impact fees are broader and more flexible than subdivision exactions. Impact fees can be levied on various types of development, including residential, subdivision, apartment, commercial, and industrial projects. Unlike developer exactions which may include either or both on-site and offsite infrastructure improvements, transportation impact fees are used to fund the construction of offsite transportation improvements in order to sufficiently maintain an acceptable level of service (LOS) to meet the needs of existing as well as the future beneficiaries of such service. Why is a Transportation Impact Fee necessary? The fiscal stress confronting our local government, and to a lesser extent state government, forced many County officials in Florida to find ways to reduce expenditures. Reducing current service levels is politically difficult because diminished service levels are readily visible to constituents and are often as contentious as tax increases. One method of limiting expenditure growth is to reduce spending for infrastructure maintenance. This expedient choice allows local officials to keep other services at current levels, and the effects of deferring maintenance spending are not readily or immediately apparent. For growing communities, impact fees represent a vast store of potential revenue that can be tapped at less political cost than other sources. This does not mean, however, that impact fees are always the best or wisest solution for the financing of public infrastructure when taking into account social equity considerations and the need to maintain long-term community support for capital spending programs. Page 1 Marion County Building Industry Association P.O. Box 128 Ocala, Florida 34478 Phone (352) 694-4133 Fax (352) 694-5971 www.mcbia.org Presented to the Marion County Board of County Commissioners Transportation Impact Fee Workshop 9:00AM Tuesday, March 24, 2015 By what authority does Marion County impose Transportation Impact Fees? Marion County’s authority to impose transportation impact fees was granted by the Florida Legislature under F.S.163.31801 (the Florida Impact Fee Act), which specifically authorizes the County’s authority to levy transportation impact fees. The statute is somewhat beneficial for builders and developers as it helps to establish certainty and transparency in the development process. This Impact fee statute is but a framework that requires municipalities to follow prescribed procedures when implementing local impact fee programs. In 2011, the Florida legislature modified the state’s concurrency regulations to place the responsibility of meeting a county’s transportation needs to be a component of the County’s Comprehensive Land Use Plan. Currently, the objective of the Marion County’s land use plan is as follows: “Marion County shall establish and maintain minimum level of service standards within the Comprehensive Plan for key public facilities consistent with §163, FS; identify which facilities shall be required to be “in place” concurrent with development, known as “concurrency”; and use the level of service (LOS) standards and concurrency to identify existing and expected deficiencies to be addressed by the County’s Capital Improvements Element Schedule of Capital Improvements.” The County agency empowered with identifying and setting transportation improvement priorities is Marion County’s Transportation Planning Organization (TPO). This agency is populated by municipal officials from the County and Cities lying within Marion County, as well as planning staff within their respective planning agencies. The TPO assembles and submits its findings (recommendations) to the Marion County Board of County Commissioners for a Transportation Improvement Program (TIP) to meet the expected needs on a “rolling” 5-year program. Marion County’s Land Development Code (LDC) The following are excerpted portions of the Marion County LDC that are presented now to reinforce the position presented by this opinion. OBJECTIVE 1.4: The County shall ensure future development and shall bear a proportionate cost of facility improvements necessitated by the development in order to maintain adopted LOS Standards. Policy 1.4.1: The County shall continue to utilize a Transportation Impact Fee Ordinance in order to assess new development on a pro rata share of the costs required to finance transportation improvements necessitated by new development. Page 2 Marion County Building Industry Association P.O. Box 128 Ocala, Florida 34478 Phone (352) 694-4133 Fax (352) 694-5971 www.mcbia.org Presented to the Marion County Board of County Commissioners Transportation Impact Fee Workshop 9:00AM Tuesday, March 24, 2015 Policy 1.5.8: Applications for development orders or permits that fall into one of the following categories shall be exempt from the concurrency regulations: a. Vested Development Orders and Permits: vested projects as established by Article 10 of the Marion County Land Development Code shall only be subject to concurrency review if expansion of the development shall create additional units, density or intensity, and only the net increase or expansion shall be subject to concurrency review. b. Applications for development orders or permits which do not increase density or intensity are exempt from concurrency review, as defined by the Marion County Land Development Code. What determines the “cost” of a Transportation Impact Fee? At various times, the Marion County Board of County Commissioners engage the services of various transportation consultants, who collect quantification data (including how and to what extent neighboring counties are imposing impact fees), how much the County is projecting annually for future growth and, what is estimated as the County’s anticipated cost to fund new transportation infrastructure. It is then through use of an industry approved process the consultant develops a series of analysis to establish impact fee “cost” for an extensive number of land uses (residential, multifamily, commercial and industrial, etc.) using the factors of expected growth patterns (as determined by the County’s planning staff) and the anticipated effect (increased trip counts) such new growth will have on maintaining an acceptable level of service on current transportation infrastructure. It is important to note that if the existing transportation infrastructure was already at a marginally acceptable levels of service, any anticipated new growth would result in a further degradation on those levels of service for transportation infrastructure, which then becomes the prevailing guide for the County’s Transportation Planning Organization to quantify the transportation infrastructure required to maintain an acceptable level of service (including the anticipated additional trip counts generated by projected new development), which ultimately leads to the basis for the Board of County Commissioners to set and put into motion a means in collecting a transportation impact fee. The simplistic idea being that new growth must pay for itself. How are Transportation Impact Cost funded? Under the current policies enumerated in the County’s Land Development Code (LDC), the following were excerpted from the LDC to demonstrate the County’s options for funding transportation infrastructure: Page 3 Marion County Building Industry Association P.O. Box 128 Ocala, Florida 34478 Phone (352) 694-4133 Fax (352) 694-5971 www.mcbia.org Presented to the Marion County Board of County Commissioners Transportation Impact Fee Workshop 9:00AM Tuesday, March 24, 2015 Policy 1.3.4: To increase funding for LOS-related capital projects, the County shall actively pursue regional, state, federal, and private profit/non-profit grant funding. The County shall identify and evaluate available grant opportunities by facility type and make annual recommendations to the Board of County Commissioners (BCC) regarding pursuit of specific grants. Policy 1.3.5: To ensure that funding of County road projects is equitable (user oriented revenue sources), the following list of revenue sources may be used when considering financing of County road projects: a. Transportation impact fees; b. Gas taxes; c. Local option sales tax; d. Utility franchise fee; e. Special districts and/or areas (e.g., Municipal Service Taxing Unit [MSTU], Municipal Service Benefit Unit [MSBU], Improvement District, Special District, Community Development District, Community Redevelopment Area, etc); f. Ad valorem tax; g. County transportation maintenance fund; and h. Revenue bonds to be repaid from gas taxes. Should the County not consider all available options for potential revenue sources as provided in the LDC, is the burden of then imposing the transportation infrastructure cost to be only a one-time transportation impact fees a fair proposal? Although the funding options in Policy 1.3.5 (as shown above) begins with the listing of transportation impact fees, it is by no means the option of first or last resort. At present, to meet the funding deficit of new transportation infrastructure cost not funded by gas taxes and revenue bonds, Marion County’s present consideration is to pass the burden solely unto new development through collection of impact fees that are levied on an "up-front" or "front-end" basis, at the time of building permit issuance or subdivision approval. Again, transportation impact fees must be dedicated solely to a specific public use (new transportation infrastructure), and may be not be used or comingled with the County’s general funds derived from other revenue streams. Page 4 Marion County Building Industry Association P.O. Box 128 Ocala, Florida 34478 Phone (352) 694-4133 Fax (352) 694-5971 www.mcbia.org Presented to the Marion County Board of County Commissioners Transportation Impact Fee Workshop 9:00AM Tuesday, March 24, 2015 What effect will imposing a transportation impact fee have on the economic future of Marion County if it is the only option used to fund the needs new transportation infrastructure? Is this a fiscally sound proposal and who really benefits? The consultant’s draft report (presently being considered by the Marion County Board of County Commissioners) is fulfilling but a single purpose – to quantify and recommend the setting of transportation impact fees on all future development. To date, no vetting or discussion has been presented on the economic impact of adopting the consultant’s recommended impact fees, and the ensuing effect such fees will have on the county’s future economic growth. The collective concern of the community is that should Marion County impose impact fees that are not proportionate in nature to other counties in this regional, then the proposed impact fees will act as a disincentive to attract new businesses and new industries, which will likely elect to look elsewhere to a more “accommodating” locale. Likewise, exorbitant impact fees will be a deterrent on future expansion and growth in our existing businesses and industries that will likewise view excessive transportation impact fees as a disincentive to make an investment for expansion of its goods and services, as well as the new jobs that would accompany such growth. Both private and public interest here in Marion County have worked in unison to diligently develop and implement a long term strategy for creating a better climate in which to attract and promote local economic growth (including higher paying jobs) all being in an effort to strengthen our economic future while building a stronger tax base for ad valorem revenue. Needless to say, the gain of new (and higher paying) jobs in Marion County will offer more opportunity to see a growth of our local construction industry which has for the past eight years suffered tremendously from the effects of the Great Recession that started in 2007. Obviously, any astute stakeholder, including trade groups, businesses owners and residents alike would not dispute the merits of assuring that as a community we must work together to achieve the overall goal of having adequate transportation infrastructure to meet the present and future need of our community. However, it should be on an equitable basis where all benefitting users contribute proportionately. A disconcerting fact is that if adopted as presently recommended by the consultant, all of the contemplated transportation improvements (except for limited revenue derived from gas taxes and restrictive municipal bonding) will solely rely on transportation impact fees paid by new development. Page 5 Marion County Building Industry Association P.O. Box 128 Ocala, Florida 34478 Phone (352) 694-4133 Fax (352) 694-5971 www.mcbia.org Presented to the Marion County Board of County Commissioners Transportation Impact Fee Workshop 9:00AM Tuesday, March 24, 2015 Furthermore, although not discussed and certainly not quantified by any measure in the consultant’s report, the stakeholders raise the question that a significant portion of the proposed cost for new transportation infrastructure that is to be paid by the proposed impact fees, will be used to cure long term LOS deficiencies due to deferred maintenance of the County’s transportation system. If this be the case, then this is further justification on why the proposed transportation impact fee structure is inequitable, as it places the full burden of the infrastructure cost (including deferred maintenance) only upon new development and does not purport an equitable fair share with existing users who prospectively will also benefit from new transportation infrastructure. This position is supported by the Concurrency provisions contained in FS 163.3180, which in part reads as follows: If any road is determined to be transportation deficient without the project traffic under review, the costs of correcting that deficiency shall be removed from the project’s proportionate-share calculation and the necessary transportation improvements to correct that deficiency shall be considered to be in place for purposes of the proportionate-share calculation. On this basis, sound reasoning indicates that with proper procedures, periodic road maintenance would have reduced the diminished levels of service that have now fallen to a deficiency due to antiquated roadway designs, insufficient or outdated signalization, lack of adequate pedestrian crosswalks, non-existent pedestrian/bicycle lanes, etc. Accordingly, we urge the Marion County Board of County Commissioners to take the right course by: 1. Proportionately allocate a fair share contribution by all users of a proposed transportation project, which will include allocated cost to existing and future improvement users alike; 2. Broaden the funding approach (including funding sources) in meeting the revenue requirements deemed necessary for its transportation improvement plan so as to be in compliance with legislative directives, including the County’s own land development code, by exhausting all avenues of funding opportunity. 3. Meet the recommendations of item 1 and 2 above by utilizing financing options first, so as to minimize a negative impact or create the perception that development would be better served if placed somewhere other than here in Marion County. The third observation made above is of paramount concern as our community has often chosen a path of least resistance, with results that should have taught us a lesson that “those who don’t remember history are forced to relive it”. Page 6 Marion County Building Industry Association P.O. Box 128 Ocala, Florida 34478 Phone (352) 694-4133 Fax (352) 694-5971 www.mcbia.org Presented to the Marion County Board of County Commissioners Transportation Impact Fee Workshop 9:00AM Tuesday, March 24, 2015 It is our hope that your continued efforts to structure a workable proposal will also work to minimize the negative aspect of an egregious fee that if imposed without a justifiable and equitable premise will only serve to weaken our community’s continuing efforts to become a prosperous and sustaining community, with a vibrant economy that will be seen as an attractive and financially desirable place to work and live. We thank you for your continued efforts to address this matter in a responsible manner. For further information contact: David M. Harden, Executive Officer Marion County Building Industry Association 3288 SW 74th Avenue Ocala, FL 34474 352-694-4133 (office) 352-694-5971 (fax) Page 7 Marion County Building Industry Association P.O. Box 128 Ocala, Florida 34478 Phone (352) 694-4133 Fax (352) 694-5971 www.mcbia.org