Ord No 34-19-2347ORDINANCE NO.34-19-2347
An Ordinance amending Section 7-3.2 of the Code of Ordinances to adjust the
parks impact fees; defining how those fees are calculated, providing for
definitions, exceptions, assessment of development prior to establishment of
parks impact fees; providing for exemption for affordable housing
developments; providing severability, inclusion in the code, and effective.
WHEREAS, new development and redevelopment in the City can add to and help
maintain the quality of life under a balanced growth management program; and
WHEREAS, effective growth management is promoted when adequate public facilities
are available to serve new development concurrent with the impacts of that development; and
WHEREAS, the City Commission adopted Ordinance No. 14-14-2192 on June 17, 2014
which established Section 7-3.2 Parks Impact Fees and provided for the collection of such fees as
a condition of the issuance of building permits for new development; and
WHEREAS, the City Commission, through Resolution No. 207-18-15240 approved
November 6, 2018, requested the preparation of an updated impact fee report, based upon the most
recent and localized data in support of the impact fee Ordinance; and
WHEREAS, the report, prepared by TischlerBise, Fiscal, Economic and Planning
Consultants, dated March 2019 recommends increasing the fees to ensure that new growth pays
its proportionate share of capital facilities; and
WHEREAS, the City Commission wishes to clarify that "new development" should be
measured as the level of development creating an increased demand upon public facilities; and
WHEREAS, the City Commission wishes to further implement the goals in the
Comprehensive Plan by providing an exemption for affordable housing development; and
WHEREAS, the City Commission wishes to amend Section 7-3.2 Parks impact fees of the
City Code of Ordinances.
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA:
Section 1. The foregoing recitals are hereby ratified and incorporated by reference as if
fully set forth herein and as the legislative intent of this Ordinance.
Section 2. The City's Code, Section 7-3.2 Parks impact fees is hereby amended to read as
follows:
Sec. 7-3.2. - Parks impact fees.
JAI:
(B)-. Definitions. For the purpose of this section, certain terms and words are defined.
Additionally, and where applicable, words used in the present tense shall include the future; the
singular number shall include the plural, and the plural the singular:
Ord. No. 34-19-2347
Affordable Housing has the same meaning as defined in Section. 420.9071, Fla. Stat. and it
shall be made available for rental, and not ownership, to Very Low -Income Tenants, Low -Income
Tenants and Moderate -Income Tenants, each of which units shall contain complete living facilities
that are to be used other than on a transient basis together with facilities that are functionally related
or subordinate to the living facilities. The units shall at all times be in good condition and repair
at all times.
Development Order means any official action of the City granting, denying, or granting
conditions an application for a development permit.
Development Permit means any building_ permit, zoning permit, subdivision approval, rezoning,
certification, special exception, variance, site plan approval, or any other official action of the City
having the effect of permitting land development.
"Gross Rent" means any amount paid by a tenant in connection with the occupancy of a Residential
Rental Unit, plus the cost of any services that are required to be paid by a tenant as a condition for
occupancy, and the cost of any utilities, other than telephone, for such unit. If any utilities other
than telecommunications, cable or internet) are paid directly by the tenant, "gross rent," also
includes a utility allowance determined as set forth in this paragraph. "Gross Rent" does not
include any payment under Section 8 of the United States Housing Act of 1937 or any comparable
federally funded tenant or project based rental assistance program with respect to such unit or to
the occupants thereof, or any fee for supportive service that is paid to the owner of the unit on the
basis of the low income status of the tenant of such unit by any governmental program of assistance
or by tax-exempt organization if such program or organization provides assistance for rent and
the amount of assistance provided for rent is not separable from the amount of assistance provided
for supportive services within the meaning of Section 42(g)(2)(13) of the Code. For purposes of
the foregoing, the allowable utility allowance is: (i) the United States Department of Housing and
Urban Development ("HUD") -published utility allowances (except as provided in clause (iv)
hereof) in the case of a building whose rents and utility allowances are reviewed by HUD on an
annual basis; (ii) the applicable Public Housing Agency (THA") utility allowances established for
the Section 8 Housing Choice Voucher Program (except as provided in clause (iv) hereof) in the
case of a building occupied by one or more tenants receiving HUD rental assistance payments
("HUD Tenant Assistance"): (iii) in the case of a building for which there is neither HUD Tenant
Assistance, nor an applicable HUD utility allowance, the applicable PHA utility allowance;
however, utility allowances based on estimates from local utility providers certifying the estimated
costs of all covered utilities for units of comparable size and construction in the county where the
building is located, determined in accordance with Internal Revenue Service Notice 89-6, may be
obtained, in which case those estimates shall apply to all units of similar size and construction in
the building;
Impact fee study means the parks and recreation facilities impact fee study on the
methodology used to establish parks and recreation facilities impact fees for the City of South
Page 2 of 7
Ord. No. 34-19-2347
Miami prepared by TischlerBise, dated April 1, 2014, which establishes the basis for the fair share
of capital facilities costs attributable to Nnew Residential Ddevelopment based upon standard and
appropriate methodologies,
. A copy shall be on
file with the City Clerk.
"Low -Income Tenant" or "Low -Income Individual" means an individual or a family whose
adjusted annual income (subject to HUD -authorized exclusions) does not exceed eighty percent
(80%) of the area median income as determined by HUD and as published annually for Miami -
Dade County by Florida Housing Finance Corporation based upon figures provided by HUD, as
adjusted for family size. In no event, however, shall occupants of a such dwelling unit be
considered to be of low income if all the occupants are students, but excluding from such definition
the following_(i) single parents who are students with all children also being students and the
household receives Aid to Families with Dependent Children ("AFDC") payments, or if the
students are enrolled in certain federal, state, or local job training_ programs and are considered
lower income, or (ii) a housing unit occupied exclusively by full-time students may qualify as
lower income if the students are a single parent and his/her minor children and none of the tenants
are a dependent of a third party.
"Low -Income Unit" means any dwelling Unit in a building if: (i) the unit is a Rent -Restricted Unit,
and (ii) the individuals occupying the unit are Low -Income Tenants.
"Moderate -Income Tenant" or "Moderate -Income Individual" means an individual or a family
whose annual adjusted income (subject to HUD -authorized exclusions) does not exceed one
hundred twenty percent (120%) of the area median income as determined by HUD and as
published annually for Miami -Dade Countyby Florida Housing Finance Corporation "FHFC" )
based upon figures provided by HUD, as adjusted for family size. In no event, however, shall
occupants of a unit be considered to be of Moderate -Income if all the occupants are students, but
excluding from such definition the following: (i) single parents who are students with all children
also being students and the household receives Aid to Families with Dependent Children
("AFDC") payments, or if the students are enrolled in certain federal, state, or local job training
programs and are considered lower income, or (ii) a housing unit occupied exclusively by full-
time students mgy qualify as lower income if the students are a single parent and his/her minor
children and none of the tenants are a dependent of a third party.
"Moderate -Income Units" means any unit in a building if. (i) the unit is a Rent -Restricted Unit,
and (ii) the individuals occupying the unit are Moderate -Income Tenants. However, Moderate -
Income Units may be exchanged for Very Low -Income Units and Low -Income Units.
New Rr-esidential Ddevelopment shall means the carrying out of any residential building activity,,
whether single family, multi -family or mixed -use residential, or the making of any material change
in the use of any building, structure or land, which results in the dividing of existing space., or the
addition of any space, that could be used as an additional bedroom or otherwise causes an
additional impact or demand on parks and recreational facilities.
Net increase means the additional demand on parks and recreational facilities.
Page 3 of 7
Ord. No. 34-19-2347
Net increase in fees mean the difference between the impact fees calculated for the structure(s)
and use(s) as it existed on the effective date of this section when enacted on June 17, 2014
("Prior Structure and Use") and the impact fees calculated on the proposed structure(s) and
uses(s) on the same lot or parcel as the Prior Structure and Use. The applicant shall have the
burden of providing evidence, to the satisfaction of the Planning and Zoning Director, of the
existence and size of the Prior Structure.
"Rent -Restricted Unit" means a Residential Rental Unit where the Gross Rent with respect to such
unit does not exceed thirty_percent (30%) of the imputed income limitation applicable to such unit.
For purposes of the foregoing, the imputed income limitation applicable to a Residential Rental
Unit is the income limitation set forth for Very Low -Income Tenants, Low -Income Tenants and
Moderate -Income Tenants occupying the unit if the number of individuals occupying the unit are
(i) one (1) individual, in the case of a unit that does not have a separate bedroom, and (ii) one and
one-half (1.5) individuals for each separate bedroom, in the case of a unit that has one or more
separate bedrooms. The level of income for residential tenants shall be based on the Area Median
Income (AMI) as determined by the Miami -Dade Public Housing and Community Development
Agency", as modified from time to time. The Owner shall require that the residential units shall
be rented to Very Low -Income Tenants, Low -Income Tenants and Moderate -Income Tenants as
defined in this Section.
"Residential Rental Units" means dwelling units made available for rental, and not ownership, to
Very Low -Income Tenants, Low -Income Tenants and Moderate -Income Tenants, each of which
units shall contain complete living facilities that are to be used other than on a transient basis
together with facilities that are functionally related or subordinate to the living facilities. The units
shall at all times be in good condition and repair at all times.
"Student" means an individual who is attending an educational institution as a full-time student
for some part of each of five calendar months during the year. The phrase "attending an
educational institution as a full-time student" includes any part of a month that the individual is
registered in school for 12 or more hours of class time per week if in high school or college, and 9
hours or more if in graduate school.
"Transient basis", as used in this Section, does not mean a unit that contains sleeping
accommodations, a kitchen and bathroom facilities and that is located in a building used
exclusivelv to facilitate the transition of homeless individuals to independent living and in which
a governmental entity or qualified nonprofit organization provides such individuals with temporary
housing and supportive services designed to assist such individuals in locating and retaining
permanent housing shall not be deemed to be a unit occupied on a transient basis within the
meanin hereof
ereof
"Very Low -Income Tenant" or "Very Low -Income Individual" means an individual or a family
whose annual adjusted income (subject to HUD -authorized exclusions) does not exceed fifty
percent (50%) of the area median income as determined by HUD and as published annually for
Miami -Dade County by Florida Housing Finance Corporation ("FHFC") based upon figures
Page 4of7
Ord. No. 34-19-2347
provided by HUD, as adjusted for family size. In no event, however, shall occupants of a unit be
considered to be of Very Low -Income if all the occupants are students, but excluding from such
definition the following: (i) single parents who are students with all children also being students
and the household receives Aid to Families with Dependent Children ("AFDC") payments, or if
the students are enrolled in certain federal, state, or local job training_Rrog-rams and are considered
lower income, or (ii) a housing unit occupied exclusively by full-time students may qualify as
lower income if the students are a single parent and his/her minor children and none of the tenants
are a dependent of a third party.
"Very Low -Income Units" means any unit in a building if: (i) the unit is a Rent -Restricted Unit,
and (ii) the individuals occupying the unit are Very Low -Income Tenants (or the unit is held
available for rental to Very Low -Income Tenants if previously rented to and occupied by Very
Low -Income Tenants). However, Very Low -Income Units may be exchanged for Low -Income
Units.
kCl. Imposition of fees. The Parks and Recreation Development Impact Fee shall be There is
assessed, charged, or imposed, and enapar- on all Nnew Rr-esidential
Ddevelopment occurring within the municipal boundaries of the City of South Miami 1
These fees `l�must be assessed, charged, or imposed in accordance with the fee schedule
provided below and as may be amended from time to time by the c-Ci 's fee schedule ordinance
based upon the most recent and localized data.
fee sehedule.
Parks and Recreation Development Fee Schedule per Housing Unit
Unit Type
Number of
Persons per
Proposed Fee
Bedrooms
Housing Unit
[1]
Multifamily
All Sizes
1.34
$1,366.00
Unit
Single Unit
0-3
2.54
$2,590.00
Single Unit
4+
3.45
$3,519.00
Single Unit
Avg
2.80
$21,865.00
[ 1 ] PPHU Recommended multipliers are scaled to make the average value by type of housing
for FL PUMA 4014 match the average value for the city derived from 2011 American Community
Survey data, with persons adjusted to the citywide average of 2.80 persons per single family unit.
(D).
Page 5 of 7
Ord. No. 34-19-2347
(E).
(F).
JG). Refunds, credits, ate -reimbursements and exemptions.
(4) Notwithstanding provisions of this Section to the contrary, any 2019 increase in Parks and
Recreation Development Impact Fee shall not be assessed, charged, or imposed upon New
Residential Development where, prior to December 30, 2019, applications for approval of a
Development Order or Development Permit have been received by the City, or a P3 Proposal
has been accepted by the City for such development. This exception applies regardless of
changes, additions, or deletions to the application(s) that may have arisen during the course of
the application process if the exception applies when the application was first received by the
City. The exceptions shall be construed broadly, and all doubts resolved in favor of the
exception.
(5) No Parks and Recreation Development Impact Fees shall be charged or assessed for any
Affordable Housing Rent Restricted Units. If only a portion of the development is devoted to
Affordable Housing, then the exemption shall be applied to the affordable portion and not the
remainder of the residential portion that is not Affordable Housing_
This exemption only applies if the owner of the property records a covenant running with the
land, on a form approved by the City Attorney that shall provide, at a minimum that (a) all
Rent Restricted Units must be made available and only rented to Low Income Individuals and
Households or Very Low Income Individuals and Households and Moderate -Income
Individuals and Households (b) the Rent Restricted Units shall continuously be rented for 40
years as Affordable Housing (Compliance Period). During the Compliance Period, none of the
Rent Restricted Units shall at any time be utilized on a transient basis; none of the Rent
Restricted Units shall ever be leased or rented for an initial period of less than one hundred
eighty( 180) days. The Owner shall not discriminate on the basis of age, race, creed, religion,
color, sex, marital status, family status, handicap, disability, sexual orientation, or national
origin in the lease, use or occupancy of the Rent Restricted Units. The Owner shall maintain
complete and accurate records pertaining to the Rent Restricted Units for at least six (6) years
following the end of each tenant's occupancy.
Section 3. Conforming language or technical scrivener -type corrections may be made by
the City Attorney for any conforming amendments to be incorporated in the final product for
signature.
Section 4. A copy of the parks and recreation facilities impact fee study on the
methodology used to establish parks and recreation facilities impact fees for the City of South
Miami prepared by TischlerBise, dated April 1, 2014, is attached to and incorporated by
reference into this Ordinance.
Page 6 of 7
Ord. No. 34-19-2347
Section 5: Codification. The provisions of this ordinance shall become and be made
part of the Code of Ordinances of the City of South Miami as amended; that the sections of this
ordinance may be renumbered or re -lettered to accomplish such intention; and that the word
"ordinance" may be changed to "section" or other appropriate word.
Section 6. Severability. If any section, clause, sentence, or phrase of this ordinance is for
any reason held invalid or unconstitutional by a court of competent jurisdiction, this holding shall
not affect the validity of the remaining portions of this ordinance.
Section 7. Ordinances in Conflict. All ordinances or parts of ordinances and all
sections and parts of sections of ordinances in direct conflict herewith are hereby repealed.
However, it is not the intent of this section to repeal entire ordinances, or parts of ordinances,
that give the appearance of being in conflict when the two ordinances can be harmonized or
when only a portion of the ordinance in conflict needs to be repealed to harmonize the
ordinances. If the ordinance in conflict can be harmonized by amending its terms, it is hereby
amended to harmonize the two ordinances. Therefore, only that portion that needs to be repealed
to harmonize the two ordinances shall be repealed.
Section 8. Effective Date. This ordinance shall become effective immediately upon
enactment.
PASSED AND ADOPTED this V day of October, 2019.
ATTEST:
(A d
CITY CLERK
I" Reading: 9/3/19
2"d Reading: 9/17/19
P Reading: 10/l/I9
READ AND APPROVED AS TO FORM,
APPROVED:
PAN ; IN -I
COMMISSION VOTE: 5-0
Mayor Stoddard:
Yea
Vice Mayor Harris:
Yea
Commissioner Gil:
Yea
Commissioner Liebman:
Yea
Commissioner Welsh:
Yea
Page 7 of 7
Agenda item No:8.
City Commission Agenda Item Report
Meeting Date: October 1, 2019
Submitted by: Nkenga Payne
Submitting Department: Planning & Zoning Department
Item Type: Ordinance
Agenda Section:
Subject:
An Ordinance amending Section 7-3.2 of the Code of Ordinances to adjust the parks impact fees; defining how
those fees are calculated, providing for definitions, exceptions, assessment of development prior to
establishment of parks impact fees; providing for exemption for affordable housing developments; providing
severability, inclusion in the code, and effective dates. 3/5 (City Manager -Planning Dept.)
Suggested Action:
Attachments:
Memo Park Impact Fee Ordinance Update.docx
Ord sec. 7.3.2_Park_Impact_Fees v8psCArevAmendments for 3rd_Reading.docx
ORD Sec. 7.3.2. Parks impact fees.doc
Ord_sec. 7.3.2_Park_Impact_Fees v8psCArevAmendments for 3rd_ReadingjtCArev_jkt09252019LotSizeCArev.docx
Ord sec. 7.3.2_Park_Impact_Fees v8psCArevAmendments for 3rd_ReadingjtCArev_2_.docx
South Miami Impact Fee Study_2019.03.22.pdf
MDBR Ad. pdf
MH Ad. pdf
MDBR Ad - 10.01.19.pdf
South Miami
THE CITY OF PI FASANT I WING
CITY OF SOUTH MIAMI
OFFICE OF THE CITY MANAGER
INTER -OFFICE MEMORANDUM
To: The Honorable Mayor & Members of the City Commission
VIA: Steven Alexander, City Manager
FROM: Jane K. Tompkins, Planning and Zoning Director
Date: September 3, 2019
SUBJECT:
An Ordinance amending Section 7-3.2 of the Code of Ordinances to adjust the parks
impact fees.
On November 6, 2018, the Commission approved Resolution No. 207-18-15240 authorizing the
City Manager to enter into an agreement with TischlerBise, Inc. to update the 2013 Park Impact
Fee Study. The 2013 Study, and the ordinance that resulted, did not take into consideration the
cost of purchasing additional parkland; the updated study was requested specifically in order to
add these costs into the fee. The updated study provides a schedule of the maximum allowable
impact fees by different types of residential projects. Lower fees may be adopted, but the
reduction in revenue will need to be offset by increases in other revenue sources, a decrease in
planned capital expenditures, and/or a decrease in level of service.
Attachments:
• Draft Ordinance
• Draft Impact Fee Study
2
Parks &Recreation Impact Fee Study
for the City of South Miami, Florida
FBI ."T
Submitted to:
City of South Miami, FL
March 2019
Prepared by:
TischlerBise
FISCAL I ECONOMIC I PLANNING
4701 Sangamore Road
Suite S240
Bethesda, Maryland 20816
800.424.4318
www.tischlerbise.com
26
Impact Fee Study
South Miami, Florida
Table of Contents
ExecutiveSummary............................................................................................................................2
Introductionto Impact Fees...............................................................................................................3
GENERALLEGAL FRAMEWORK........................................................................................................................................... 3
UNIQUE REQUIREMENTS OF THE FLORIDA IMPACT FEE ACT.................................................................................................... 4
METHODOLOGIESAND CREDITS......................................................................................................................................... S
MAXIMUM ALLOWABLE IMPACT FEES BY TYPE OF LAND USE.................................................................................................. 7
Parksand Recreation Facilities Impact Fees........................................................................................8
METHODOLOGY.............................................................................................................................................................. 8
PARKS AND RECREATION LAND, FACILITIES, & IMPROVEMENTS AND COSTS............................................................................... 9
PARKS AND RECREATION CAPITAL IMPROVEMENTS NEEDED TO SERVE GROWTH...................................................................... 13
CREDIT FOR FUTURE PRINCIPAL PAYMENTS........................................................................................................................ 16
PARKS AND RECREATION INPUT VARIABLES AND IMPACT FEES............................................................................................... 17
CASHFLOW PROJECTIONS.............................................................................................................................................. 18
Implementationand Administration................................................................................................19
CREDITS AND REIMBURSEMENTS...................................................................................................................................... 19
COLLECTION AND EXPENDITURE ZONES............................................................................................................................. 19
AppendixA — Land Use Assumptions................................................................................................20
INTRODUCTION............................................................................................................................................................. 20
RESIDENTIALDEVELOPMENT........................................................................................................................................... 21
Appendix B — Florida Statute:163.31801..........................................................................................26
TITLE XI 163.31801- IMPACT FEES; SHORT TITLE; INTENT; DEFINITIONS; ORDINANCES LEVYING IMPACT FEES ............................... 26
TischlerBise 27
FIS(:AL ' ECONOMIC ; PLANNING
Impact Fee Study
South Miami, Florida
EXECUTIVE SUMMARY
The City of South Miami retained TischlerBise, Inc. to analyze current levels of service, and to calculate
maximum allowable impact fees for Parks and Recreation facilities in the City. This report presents the
methodologies and calculations used to generate current levels of service and the maximum allowable
impact fees. It is intended to serve as supporting documentation for future updates to impact fees in the
City.
The purpose of this study is to demonstrate the City's compliance with Florida Statute 163.31801 Florida
Impact Fee Act. Consistent with the state Statute, and the City's master planning documents it is the intent
of the City to:
1. Collect impact fees to fund parks and recreation capital improvements required to serve growth,
and
2. To use revenue generated from impact fees to benefit new development by maintaining current
citywide levels of service.
Impact fees are one-time payments used to construct system improvements needed to accommodate
new development. An impact fee represents new growth's fair share of capital facility needs. By law,
impact fees can only be used for capital improvements, not operating or maintenance costs. Impact fees
are subject to legal standards, which require fulfillment of three key elements: need, benefit and
proportionality.
• First, to justify a fee for public facilities, it must be demonstrated that new development will
create a need for capital improvements.
• Second, new development must derive a benefit from the payment of the fees (i.e., in the form
of public facilities constructed within a reasonable timeframe).
• Third, the fee paid by a particular type of development should not exceed its proportional share
of the capital cost for system improvements.
TischlerBise evaluated possible methodologies, and documented appropriate demand indicators by type
of development to document levels of service and calculate fees. Local demographic data and
improvement costs were used to identify specific capital costs attributable to growth. This report includes
summary tables indicating the specific factors, referred to as level of service standards, used to derive the
impact fees.
The geographic area for the Parks and Recreation Facilities impact fees is the City of South Miami; and the
demand indicator is residential development.
TischlerBise 28
FISC- I ECONOMIC ! G.ANNING
2
Impact Fee Study
South Miami, Florida
INTRODUCTION TO IMPACT FEES
Impact fees are one-time payments used to construct system improvements needed to accommodate
new development. An impact fee represents new growth's proportionate share of capital facilities. Impact
fees have defined parameters for use. They are not a complete solution for infrastructure financing needs.
Rather, they are one component of a comprehensive portfolio to ensure provision of adequate public
facilities. Impact fees may only 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 correction of existing deficiencies.
General Legal Framework
Both state and federal courts have recognized the imposition of impact fees on development as a
legitimate form of land use regulation, provided the fees meet standards intended to protect against
regulatory takings. Land use regulations, development exactions, and impact fees are subject to the Fifth
Amendment prohibition on taking of private property for public use without just compensation. To comply
with the Fifth Amendment, development regulations must be shown to substantially advance a legitimate
governmental interest. In the case of impact fees, that interest is in the protection of public health, safety,
and welfare by ensuring that development is not detrimental to the quality of essential public services.
The means to this end are also important, requiring both procedural and substantive due process. The
process followed to receive community input, with stakeholder meetings, work sessions, and public
hearings provide opportunity for comments and refinements to the impact fees.
There is little federal case law specifically dealing with impact fees, although other rulings on other types
of exactions (e.g., land dedication requirements) are relevant. In one of the most important exaction
cases, the U. S. Supreme Court found that a government agency imposing exactions on development must
demonstrate an "essential nexus" between the exaction and the interest being protected (see Nollan v.
California Coastal Commission, 1987). In a more recent case (Dolan v. City of Tigard, OR, 1994), the Court
ruled that an exaction also must be "roughly proportional" to the burden created by development.
However, the Dolan decision appeared to set a higher standard of review for mandatory dedications of
land than for monetary exactions such as impact fees.
There are three reasonable relationship requirements for impact fees that related closely to "rational
nexus" or "reasonable relationship" requirements enunciated by a number of state courts. Although the
term "dual rational nexus" is often used to characterize the standard by which courts evaluate the validity
of impact fees under the U.S. Constitution, we prefer a more rigorous formulation that recognizes three
elements: "need," "benefit," and "proportionality." The dual rational nexus test explicitly addresses only
the first two, although proportionality is reasonably implied, and was specifically mentioned by the U.S.
Supreme Court in the Dolan case. Individual elements of the nexus standard are discussed further in the
following paragraphs.
All new development in a community creates additional demands on some, or all, public facilities provided
by local government. If the capacity of facilities is not increased to satisfy that additional demand, the
quality or availability of public services for the entire community will deteriorate. Impact fees may be used
to recover the cost of development -related facilities, but only to the extent that the need for facilities is
a consequence of development that is subject to the fees. The Nollan decision reinforced the principle
that development exactions may be used only to mitigate conditions created by the developments upon
which they are imposed. That principle clearly applies to -impact- fees. In this study, the impact of
16 29
TischlerBise
VISCAL 1 ECONOMIC I PLANNING
Impact Fee Study
South Miami, Florida
development on infrastructure needs is analyzed in terms of quantifiable relationships between various
types of development and the demand for specific facilities, based on applicable level of service standards.
The requirement that exactions be proportional to the impacts of development was clearly stated by the
U.S. Supreme Court in the Dolan case (although the relevance of that decision to impact fees has been
debated) and is logically necessary to establish a proper nexus. Proportionality is established through the
procedures used to identify development -related capital costs, and in the methods used to calculate
impact fees for various types of facilities and categories of development. The demand for facilities is
measured in terms of relevant and measurable attributes of development (e.g. a typical housing unit's
household size).
FINANCIAL ACCOUNTING
A sufficient benefit relationship requires that impact fee revenues be segregated from other funds, and
that they be expended only on the facilities for which the fees were charged. Impact fees must be
expended in a timely manner and the facilities funded by the fees must serve the development paying the
fees. However, nothing in the U.S. Constitution or the state enabling legislation requires that facilities
funded with fee revenues be available exclusively to development paying the fees. In other words, benefit
may extend to a general area including multiple real estate developments. Procedures for the earmarking
and expenditure of fee revenues are discussed further below. All of these procedural, as well as
substantive, issues are intended to ensure that new development benefits from the impact fees they are
required to pay. The authority and procedures to implement impact fees is separate from, and
complementary to, the authority to require improvements as part of subdivision or zoning review.
Unique Requirements of the Florida Impact Fee Act
In Florida, impact fees are an outgrowth of home rule power and compared to other states, the enabling
legislation is relatively brief. [See Appendix B — Florida Statute: 163.31801] The Act requires the
calculation of impact fees to be based on most recent and localized data. Administrative charges for the
collection of impact fees are limited to actual costs. The chief financial officer of the local government has
specific responsibilities for accounting and reporting collections and expenditures of impact fees. In
contrast to the legal precedent in other states, Florida law states, "In any action challenging an impact
fee, the government has the burden of proving by a preponderance of the evidence that the imposition
or amount of the fee meets the requirements of state legal precedent or this section."
As documented in this report, the City of South Miami has complied with the Florida Impact Fee Act and
applicable legal precedents. Impact fees are proportionate and reasonably related to the capital
improvement demands of new development. Specific costs have been identified using local data and
current dollars. With input from City staff, TischlerBise determined demand indicators for each type of
infrastructure and calculated proportionate share factors to allocate costs by type of development. This
report documents the formulas and input variables used to calculate the impact fees for three types of
parks and recreation capital components. Impact fee methodologies also identify the extent to which new
development is entitled to various types of credits to avoid potential double payment of growth -related
capital costs.
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Impact Fee Study
South Miami, Florida
Methodologies and Credits
CONCEPTUAL IMPACT FEE CALCULATION
In contrast to project -level improvements, impact fees fund growth -related infrastructure that will benefit
multiple development projects, or the entire jurisdiction (usually referred to as system improvements).
The first step is to determine an appropriate demand indicator for the particular type of infrastructure.
The demand indicator measures the number of demand units (e.g., population) for each unit of
development. For example, an appropriate indicator of the demand for parks is population growth and
the increase in population can be estimated from the average number of persons per housing unit. The
second step in the impact fee formula is to determine infrastructure units per demand unit, typically called
level of service (LOS) standards. In keeping with the park example, a common LOS standard is park acreage
per thousand people. The third step in the impact fee formula is the cost of various infrastructure units.
To complete the park example, this part of the formula would establish the cost per acre for land
acquisition and/or park improvements.
CALCULATION METHODOLOGIES
Impact fees can be calculated by any one of several legitimate methods. The choice of a particular method
depends primarily on the service characteristics and planning requirements for each facility type. Each
method has advantages and disadvantages in a particular situation, and to some extent can be
interchangeable, because each allocates facility costs in proportion to the needs created by development.
Reduced to its simplest terms, the process of calculating impact fees involves two main steps: (1)
determining the cost of development -related capital improvements, and (2) allocating those costs
equitably to various types of development. In practice, though, the calculation of impact fees can become
quite complicated because of the many variables involved in defining the relationship between
development and the need for facilities. The following paragraphs discuss three basic methods for
calculating impact fees, and possible application of each method.
Cost Recovery or Buy -In Fee Calculation. The rationale for the cost recovery approach is that new
development is paying for its share of the useful life and remaining capacity of facilities already built or
land already purchased from which new growth will benefit. This methodology is often used for systems
that were oversized such as sewer and water facilities.
Incremental Expansion Fee Calculation. The incremental expansion method documents the current level
of service (LOS) for each type of public facility in both quantitative and qualitative measures, based on an
existing service standard (such as square feet per student). This approach ensures that there are no
existing infrastructure deficiencies or surplus capacity in existing infrastructure. New development is only
paying its proportionate share for growth -related infrastructure. The level of service standards are
determined in a manner similar to the current replacement cost approach used by property insurance
companies. However, in contrast to insurance practices, the fee revenues would not be for renewal and/or
replacement of existing facilities. Rather, revenue will be used to expand or provide additional facilities,
as needed, to accommodate new development. An incremental expansion cost method is best suited for
public facilities that will be expanded in regular increments, with LOS standards based on current
conditions in the community.
Plan -Based Fee Calculation. The plan -based method allocates costs for a specified set of improvements to
a specified amount of development. Facility plans identify needed improvements, and land use plans
identify development. In this method, the total cost of relevant facilities is divided by total demand to
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FISCAL ' ECONOMIC I PANNING
Impact Fee Study
South Miami, Florida
calculate a cost per unit of demand. Then, the cost per unit of demand is multiplied by the amount of
demand per unit of development (e.g., housing units or square feet of building area) in each category to
arrive at a cost per specific unit of development (e.g., single family detached unit).
CREDITS
Regardless of the methodology, a consideration of "credits' is integral to the development of a legally
valid impact fee methodology. There are two types of "credits," each with specific and distinct
characteristics, but both of which should be addressed in the calculation of impact fees. The first is a credit
due to possible double payment situations. This could occur when contributions are made bythe property
owner toward the capital costs of the public facility covered by the impact fee. This type of credit is
integrated into the impact fee calculation. The second is a credit toward the payment of a fee for
dedication of public sites or improvements provided by the developer and for which the facility fee is
imposed. This type of credit is addressed in the administration and implementation of a facility fee
program.
FEE METHODOLOGIES
Each of the fee methodologies discussed above were considered to calculate impact fees for the City of
South Miami. Where capacity is sufficient to serve current demand the incremental expansion method
documents the current level of service (LOS) for each type of public facility. The cost recovery method,
used on the rationale that new development is paying for its share of the useful life and remaining capacity
of an existing facility, is used to calculate a new growth share of recreational facilities. The following table
summarizes the method(s) used to derive the impact fee for each component of the Parks and Recreation
Facilities impact fees.
Figure 1: Summary of Impact Fee Methodologies
REPORTING RESULTS
Calculations throughout this technical memo are based on an analysis conducted using Excel software.
Results are discussed in the memo using one -and two -digit places (in most cases), which represent
rounded figures. However, the analysis itself uses figures carried to their ultimate decimal places;
therefore the sums and products generated in the analysis may not equal the sum or product ifthe reader
replicates the calculation with the factors shown in the report (due to the rounding of figures shown, not
in the analysis).
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T)schl re B)se
Impact Fee Study
South Miami, Florida
Maximum Allowable Impact Fees by Type of Land Use
Figure 2 provides a schedule of the maximum allowable impact fees by type of land use for the City of
South Miami. The fees represent the highest amount allowable for each type of applicable land use, and
represents new growth's fair share of the cost for parks and recreation capital facilities. The City may
adopt fees that are less than the amounts shown. However, a reduction in impact fee revenue will
necessitate an increase in other revenues, a decrease in planned capital expenditures, and/or a decrease
in levels of service.
The fees for residential development are to be assessed per housing unit and should be collected when
building permits are issued. As an option, the fees for single residential units are presented by size of the
unit, based on number of bedrooms and persons per housing unit factors. See Appendix A for further
explanation of these factors and fee options.
Figure 2: Summary of Maximum Allowable Impact Fees by Land Use
Unit Type
Number of
Bedrooms
Persons per
Housing Unit [11
Proposed Fee
Multifa mi ly Uni t
Single Unit
Single Unit
All Sizes
1.77
$7,301
0-3
2.64
$10,900
4+
3.76
$15,569
Single Unit
Avg
2.93
$12,111
[1) PPHU Recommended multipliers are scaled to make the average value by
type of housing for FL PUMA 4014 match the average value forthe Cityderived
from 2017 American Community Survey data, with persons adjusted to the
Citywide average of 2.93 persons per single familyunit.
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Impact Fee Study
South Miami, Florida
PARKS AND RECREATION FACILITIES IMPACT FEES
Methodology
Figure 3 illustrates the Parks and Recreation impact fee components and methodology. An incremental
expansion cost methodology was used to calculate the parkland acquisition, parkland development, and
park improvements components. A cost recovery method was used to calculate the recreation facilities
component. All capital costs have been allocated 100 percent to residential development.
Figure 3: Parks and Recreation Facilities Impact Fee Methodology Chart
Residential
Development
Persons multiplied by
per Net Capital Cost
Housing Unit Per Person
Parkland plus plus plus
Acquisition Parkland Park Recreational
(incremental) Development Improvements Facilities
(incremental) (incremental) (cost recovery)
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South Miami, Florida
Parks and Recreation Land, Facilities, & Improvements and Costs
PARKLAND ACQUISITION
While the City of South Miami is constrained in terms of its ability to purchase additional parkland, the
City desires to maintain the same level -of -service for parklands into the future. Thus, the incremental
expansion methodology is used to calculate this component of the Parks and Recreation Facilities impact
fees.
The City intends to use impact fees to acquire land for future parks and to develop undeveloped parkland.
Figure 5 provides a current inventory of City -maintained parkland, both undeveloped and developed, all
within a citywide service area.
As shown in Figure 5, the current level of service is 3.56 acres per 1,000 residents (rounded), based on a
dividing the 47.84 parkland acres by the current population of 13,453.
The cost per person is calculated by multiplying the current LOS (3.56 acres per thousand persons) by the
estimated cost to purchase an acre of land in South Miami ($800,000 to $1 million per acre, or on average
$900,000 per acre) and dividing this total by 1,000. This results in a current parkland cost per person of
$3,200.
Figure 4: Incremental Expansion — Parkland Acquisition
Park Type
Pocket Park
Existing Parks Acreage
�Park
Dog Park
Acreage
Total
0.13
Pocket Park
Dison Park
0.59
Pocket Park
Jean Willis Park
0.63
Small Park
Van Smith Park
1.14
Small Park
Brewer Park
1.29
Small Park
All America Park
1.4
Neighborhood Park
Murray Park
4.08
Neighborhood Park
Marshall Williamson Park
3.22
Neighborhood Park
Girl Scout Little House Reserve
4.06
Neighborhood Park
Fuchs Park
5
Neighborhood Park
Dante Fascell Park
7.73
Community Park
Palmer Park
8.57
Community Park
South Miami Park
10.00
TOTAL
47.84
Source: City of South Miami
Level of Service (LOS) Standards
Inventory of Parkland Acres 47.84
2019 City Population 13,453
CostAnalysis
LOS: Acres per Thousand People 3.56
Land Purchase Cost per Acre 1 $900,000
011
ri
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Impact Fee Study
South Miami, Florida
7_11.1 C/ Ieh I III e] DTI 4 to] a Al l a 11 Ill I
The City of South Miami plans to maintain the current level of service for developed parkland within a
citywide service area. The incremental expansion methodology is used to calculate this component of the
Parks and Recreation Facilities impact fees.
The City intends to use impact fees to develop a portion of its undeveloped inventory of parkland. In order
to host improvements such as athletic fields, playgrounds, parking, picnic and other amenities, basic
infrastructure (e.g., sewer/water, parking, grading, etc.) must be developed. Figure 5 provides a current
inventory of City -maintained parkland, including 10 acres of undeveloped land designated as South Miami
Park, and 34.94 acres of developed parkland, all with a citywide service area.
As shown in Figure 5, the current level of service is 2.81 acres per 1,000 residents (rounded), based on a
dividing the 37.84 developed acres by the current population of 13,453.
The cost per person is calculated by multiplying the current LOS (2.81 acres per thousand persons) by the
estimated cost to develop a park acre provided by the City ($175,000 per acre) and dividing this total by
1,000. This results in a current parkland development cost per person of $492.
Figure 5: Incremental Expansion - Developed Parkland
Park Type
Existing Parks Acreage
IPark Undeveloped
Acreage
Developed Total
Pocket Park
Dog Park
0.13
0.13
Pocket Park
Dison Park
0.59
0.59
Pocket Park
Jean Willis Park
0.63
0.63
Small Park
Van Smith Park
1.14
1.14
Small Park
Brewer Park
1.29
1.29
Small Park
All America Park
1.40
1.4
Neighborhood Park
Murray Park
4.08
4.08
Neighborhood Park
Marshall Williamson Park
3.22
3.22
Neighborhood Park
Girl Scout Little House Reserve
4.06
4.06
Neighborhood Park
Fuchs Park
5.00
5
Neighborhood Park
Dante Fascell Park
7.73
7.73
Community Park
Palmer Park
8.57
8.57
Community Park
South Miami Park
10.00
10.00
TOTAL
10.00 37.84
47.84
Source: City of South Miami
Level of Service (LOS) Standards
Inventory of Developed Parkland Acres 37.84
2019 City Population 1. 13,453
LOS: Acres per Thousand People 1 2 :
Cost Analysis
LOS: Acres per Thousand People 2.81
Land Development Cost per Acre $175,000
11 .-
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South Miami, Florida
PARKIMPROVEMENTS
The park improvements component is based on the incremental expansion methodology. The City of
South Miami maintains active and passive park improvements for use by the current population. As the
resident population grows, the City intends to use impact fee revenue to add park improvements to
existing parks as necessary to maintain the current level of service of 3.20 units per 1,000 residents. As
shown below, the City has 43 park improvements including sports fields and courts, playgrounds, and
picnic amenities. The combined value of park improvements is $5,075,586. The calculation to determine
level of service is as follows: 43 units / (13,453/1,000 residents) = 3.20 units per 1,000 residents (rounded).
The average cost per unit of existing park improvements is $118,037. To calculate the cost of park
improvements per capita, the average cost per unit is multiplied by the level of service resulting in a park
improvements cost per capita of $377.
Figure 6., Incremental Expansion — Park Improvements
Handball Courts
4
$30,000
Pavilions
3
$15,000
Playgrounds
5
$55,000
Football/Soccer Fields (Lighted)
1
$175,000
Baseball/Softball Fields (Lighted)
7
$200,000
Open Fields (Unlighted)
4
$150,000
Tennis Courts
10
$30,000
Basketball Courts
3
$47,225
Volleyball Courts/Sand
2
$17,000
Restrooms/Concessions
3
$110,000
Pools 1
TOTAL 43
Source: City of South Miami
Level of Service (LOS) Standards
Inventory of Park Improvements
Total Developed Park Acres
Improvements per Acre
Cost Analysis
LOS: Improvements per Thousand People
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Impact Fee Study
South Miami, Florida
RECREATION FACILITIES
In 2001, a need was identified for a recreational facility to serve current demands and expected
development in the City of South Miami. As shown in Figure 7, the city constructed the 22,032 square foot
Murray/Gibson-Bethel Community Center to serve a resident population of approximately 14,000 people
(both existing and new residents), and reserved 25 percent of the total facility to serve non-resident
members. Therefore, a 25 percent reduction factor is applied to the total square feet to determine the
16,524 square feet of the total space that will be used to calculate the level of service for this component.
Based on an adjusted square footage of 16,524 and a capacity to serve approximately 14,000 residents, a
cost recovery methodology is used to calculate the level of service of 1.18 square feet per resident by
dividing 16,524 square feet by 14,000 residents. The City spent $2.5 million to construct the 22,032 square
foot facility, which equates to a cost persquare foot of $113. The cost per person is derived by multiplying
the 1.18 LOS by the cost per square foot ($113), resulting in a cost per person of $133.
Figure 7: Cost Recovery — Parks and Recreation Facilities
Reduction Factor 25%
Share of Facility For City Residents 16,524
Source: City of South Miami
Level of Service (LOS) Standards
Inventory of Square Feet 16,524
City Population to be Served 14,000
,LOS: Square Feet per Person 1.18
Cost Analysis
LOS: Square Feet per Person 1.18
Cost per Square Foot $113
Recreation Facility -cost -per Person $133'1
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South Miami, Florida
Parks and Recreation Capital Improvements Needed to Serve Growth
PARKS AND RECREATION FACILITIES CAPACITY
In 2001, the City of South Miami constructed a new recreation facility designed to serve a resident
population of approximately 14,000 people, with additional space to serve non-resident guests. Issuance
of a general obligation bond provided the necessary funding to construct the new facility.
Based on a capacity to serve 14,000 residents and the land use assumptions (see Appendix A) used to
project the potential rate of new development, the facility will be able to meet resident demand until
2022 when demand will surpass the facility's capacity. Shown in Figure 8 is the annual residential demand
for the recreational facility square footage for each year past current demand until 2029.
Figure 8: Recreational Facility Remaining Capacity to Serve Growth
Base
2019
13,453
Resident Portion
of SF=16524
1
2020
13,638
1.18
16,093
431
2
2021
13,826
1.18
16,315
209
3
2022
14,017
1.18
16,540
0
4
2023
14,210
1.18
16,768
0
5
2024
14,406
1.18
16,999
0
6
2025
14,605
1.18
17,234
0
7
2026
14,806
1.18
17,471
0
8
2027
15,010
1.18
17,712
0
9
2028
15,217
1.18
17,956
0
10
2029
15.427
1.18
18.204
0
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39
Impact Fee Study
South Miomi, Florida
PROJECTION OF GROWTH -RELATED INFRASTRUCTURE NEEDS
Needs due to future growth were calculated using the current levels of service and cost factors for the
incremental expansion of developed parkland and park improvements. Growth -related needs are a
projection of the amount of existing infrastructure and estimated costs over a specified period needed to
maintain current levels of service for expected population increases.
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FISCAL ' ECONOMIC PLANNING
Impact Fee Study
South Miami, Florida
Figure 9 below is a summary of the growth -related needs to incrementally expand the number of
developed park acres, and park improvements.
The pace and location of new development will drive decisions regarding the timing of individual
improvements. Additionally, as new development occurs, the City may choose to negotiate for developers
to make capital investments in return for credits against the Parks and Recreation Facilities Impact Fees.
15 41
TischlerBise
FISCAL I ECONOMIC I PLANNING
Impact Fee Study
South Miami, Florida
Figure 9: Parks and Recreation Incremental Improvement Needs
Undeveloped
Parkland Purchase
Parkland
Development
Level
Of
3.56
Acres per Thousand Persons
2.81
Acres per Thousand Persons
3.20
Units per Thousand People
Service
Unit
$900,000
Purchase Cost per Acre
$175,000
Development Cost per Acre
$118,037
Average Cost per Improvement
cost
Year
Demand
Unit:
Population
Total Park Acres
r.
•Developed Park
Acres
Improvements
Base 2019
13,453
48
38
43
1 2020
13,638
48
38
44
2 2021
13,826
49
39
44
3 2022
14,017
So
39
45
4 2023
14,210
51
40
45
5 2024
14,406
51
41
46
6 2025
14,605
52
41
47
7 2026
14,806
53
42
47
8 2027
15,010
53
42
48
9 2028
15,217
54
43
49
10 2029
1 15,427
1 55
43
49
Purchase
Cost of Necessary Improvements $744,756
[1] Shown as rounded numbers
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TischlerBise
, ONO.,c I P_,..
Impact Fee Study
South Miami, Florida
Credit for Future Principal Payments
The City of South Miami borrowed money to fund construction of the Murray/Gibson-Bethel Community
Center. Because of this, TischlerBise recommends the Parks and Recreation Facilities impact fees include
a credit for future principal payments on the existing General Obligation debt. New residential
development that pays the Parks and Recreation Facilities impact fees will also contribute to future
principal payments paid from property tax revenue. To account for the time value of money, annual
principal payments are discounted using a net present value formula based on the estimated average
interest rates over the life of the bond. A credit is only necessary for principal payments because the
recreation facilities component was based on the construction cost of the facility and not the debt service
schedule. Figure 10 shows the credit calculated based on the projected principal payments starting in
fiscal year 2019 through the remainder of the bond's term.
The applicable net present value of the credit for residential development is $66.66 per person. This will
be subtracted from the gross capital cost per person to derive a net capital cost per person to be used in
calculating the maximum supportable impact fee for Parks and Recreation Facilities.
Figure 10: Credit for Future Principal Payments on Parks and Recreation Facilities
Fiscal
Year
Principal
Persons
2019
$80,000
13,453
2020
$85,000
13,638
2021
$90,000
13,826
2022
$90,000
14,017
2023
$95,000
14,210
2024
$100,000
14,406
2025
$105,000
14,605
2026
$110,000
14,806
2027
$120,000
15,010
2028
$125,000
15,217
2029
$130,000
15,427
2030
$135,000
15,640
TOTAL
$1,265,000
Discount Rate`
Net Present Value
Principal Payment Credit
Person
Proportionate
Share
100%
$5.95
$6.23
$6.51
$6.42
$6.69
$6.94
$7.19
$7.43
$7.99
$8.21
$8.43
$8.63
$86.62
* Average estimated interest rate over life of loan.
Source: City of South Miami
4.00%
$66.66
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Impact Fee Study
South Miami, Florida
Parks and Recreation Input Variables and Impact Fees
Figure 11 provides a summary of the input variables (described in the chapter sections above) used to
calculate the net capital cost per person of parkland acquisition, parkland development, park
improvements, and recreational facilities. The Parks and Recreation impact fees are the product of
persons per housing unit (see Appendix A — Land Use Assumptions), by type, multiplied by the total net
capital cost per person.
Fees are provided for multifamily units and an average sized single family unit. As an option, fees are also
presented by size of single family housing unit, based on household size established by number of
bedrooms (see Appendix A for further explanation). Each Persons per Housing Unit factor is multiplied by
the net capital cost per person to derive the impact fee per unit.
An example of the calculation for an average single family unit is: the net capital cost per person
($4,136.67) multiplied by the persons per housing unit for that size unit (2.93) to derive the impact fee
per average single family unit of $12,111.
Figure 11: Parks and Recreation Input Variables and Maximum Allowable Impact Fees
Parks and Recreation Capital Costs
Per Person
Parkland Land Purchase
$3,200.48
Parkland Land Development
$492.23
Park Improvements Developed Parks
$377.28
Parks and Recreation Facilities
$133.34
GROSS CAPITAL COST PER PERSON
$4,203.33
Debt Service Credit
($66.66)
NET CAPITAL COST PER PERSON
$4,136.67
Parks and Recreation Development Fee Schedule per Housing Unit
Unit Type
Number of
Bedrooms
Persons per
Housing 1
g Unit ( ]
Proposed Fee
Multifa mi ly Unit
Single Unit
Single Unit
All Sizes
1.77
$7,301
0-3
2.64
$10,900
4+
3.76
$15,569
Single Unit
Avg
Z93
$12,111
[1) PPHU Recommended multipliers are scaled to make the average value by
type of housing for FL PUMA 4014 match the average value forthe Cityderived
from 2017 American Community Survey data, with persons adjusted to the
Citywide average of 2.93 persons persingle familyunit.
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Cash Flow Projections
This section summarizes the potential cash flow to the City of South Miami, if development occurs as
projected, and the Parks and Recreation impact fee is implemented at the maximum allowable amounts.
The cash flow projections are based on the assumptions detailed in this chapter, and the development
projections discussed in Appendix A — Land Use Assumptions. The cash flow provides an indication of the
impact fee revenue generated by new development, and capital expenditures necessary to meet the
demand for new parks and recreation facilities brought about by new development and the existing debt
service for the Murray/Gibson-Bethel Community Center General Obligation bond.
Necessary expenditures associated with the incremental expansion of developed parkland, and park
improvements are calculated based on current costs per unit, and on maintaining the current levels of
service. For the cost recovery expenditures associated with the recreation facility General Obligation bond
the total payments for the 10-year period are shown in the capital cost section. The cash flow deficit
represents the portion of the full debt service not recouped through impact fee revenues. The cash flow
is also affected by the reduction of impact fee revenue due to a credit for future payments of the General
Obligation debt for the recreational facility.
Figure 12: Cash Flow Summary
Net Cost per Population
$4,137
New Population Ill 1,974
Potential Revenue, 2013-2023(rounded) $8,165,788
Parks and Recreation Necessary Improvements
$8,034,162
Recreation Facility Debt service [21
$1,438,283
Total Capital Costs, 2013-2023
$9,472,445
Cumulative Surplus/(Deficit) ($1,306,657)
[1) TischlerBise, Land Use Assumptions
[2) Reflects the total debtservice obligation (principal and interest)
'TischlerBise, Land Use Assumptions
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".ONOMIC I PLANNING
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Impact Fee Study
South Miami, Florido
IMPLEMENTATION AND A®MIN�STRATO®N
All costs in the impact fee calculations are given in current dollars with no assumed inflation rate over
time. Necessary cost adjustments can be made as part of the recommended annual evaluation and update
of impact fees. One approach is to adjust for inflation in construction costs by means of an index like the
one published by Engineering News Record (ENR). This index can be applied against the calculated impact
fee. If cost estimates change significantly the City should recalculate the fees.
There are certain accounting procedures that should be followed by the City. For example, monies
received should be placed in a separate fund and accounted for separately and may only be used for the
purposes authorized in an impact fee ordinance. Interest earned on monies in the separate fund should
be credited to the fund.
Credits and Reimbursements
If a developer constructs a parks and recreation facilities component that was included in the fee
calculations or dedicates land for future investments, it will be necessary to either reimburse the
developer or provide a credit against the Parks and Recreation Facilities impact fees. The latter option is
more difficult to administer because it creates unique fees for specific geographic areas. Based on
TischlerBise's experience, it is better for the City to establish a reimbursement agreement with the
developer that constructs a system improvement. The reimbursement agreement should be limited to a
payback period of no more than ten years and the City should not pay interest on the outstanding balance.
The developer must provide sufficient documentation of the actual cost incurred for the system
improvement. The City should only agree to pay the lesser of the actual construction cost or the estimated
cost used in the impact fee analysis. If the City pays more than the cost used in the fee analysis, there will
be insufficient fee revenue. Reimbursement agreements should only obligate the City of South Miami to
reimburse developers annually according to actual fee collections from the benefiting area.
Collection and Expenditure Zones
The reasonableness of impact fees is determined in part by their relationship to the local government's
burden to provide necessary public facilities. The need to show a substantial benefit usually requires
communities to evaluate collection and expenditure zones for public facilities that have distinct
geographic service areas. Therefore, developments paying fees will be benefiting from the provision of
additional capital improvements in their service area. The impact fees prepared for the City of South
Miami are based on capital improvements that will have citywide benefits; therefore, a citywide service
area is appropriate.
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South Miami, Florida
APPENDIX A ® LEAN® USE ASSUMPTIONS
Introduction
As part of our Work Scope, TischlerBise has prepared documentation on demographic data and
development projections that will be used in the City of South Miami Parks and Recreation Facilities
Impact Fee Study. The demographic estimates for 2019 will be used in the fee calculations. The
development projections are used solely to illustrate a possible future pace for service demands, impact
fee revenues, and capital expenditures.
Base year residential development estimates were developed based on historic trends, current data
maintained by the Miami -Dade County Assessor's Office, and discussions with staff.
Three assumptions informed the calculation of projections for each year past the base. First, TischlerBise
assumed historic trends would continue. Second, the twenty-year projections do not include any large-
scale development projects that would diverge for historic growth patterns. Lastly, the projections assume
the City of South Miami would not annex additional lands for development in the twenty-year projection
window.
The data herein are for the City of South Miami 2019 Parks and Recreation Facilities Impact Fee Study.
21 47
TischlerBise
I Si.I.1 ECONOMIC PLAW ING
Impact Fee Study
South Miami, Florida
Residential Development
PERSONS PER HOUSING UNIT
According to the U.S. Census Bureau, a household is a housing unit that is occupied by year-round
residents. Impact fees often use per capita standards and persons per housing unit (PPHU) or persons per
household (PPH) to derive proportionate -share fee amounts.
• When PPHU is used in the fee calculations, infrastructure standards are derived using year-round
population.
• When PPH is used in the fee calculations, the impact fee methodology assumes all housing units
will be occupied, thus requiring seasonal or peak population to be used when deriving
infrastructure standards.
TischlerBise recommends that impact fees for residential development in the City of South Miami be
imposed according to the number of year-round residents per housing unit (PPHU). This methodology
assumes some portion of the housing stock will be vacant; and according to the U.S. Census Bureau
American Community Survey, the City had a 2017 vacancy rate of 12 percent.
Persons per housing unit (PPHU) requires data on population in occupied units and the types of units by
structure. These data are collected in the U.S. Census Bureau, American Community Survey (ACS). Figure
A13 below shows 2017 ACS 5-year estimates for the City of South Miami. To calculate the PPHU, persons
in occupied units (12,108) is divided by total housing units (4,793). Dwellings with a single unit per
structure (detached, attached, and manufactured homes) averaged 2.93 persons per housing unit.
Dwelling units in structures with multiple units averaged 1.76 persons per housing unit. The 2017 average
persons per housing unit (PPHU) of 2.53 will be held constant over the projection period since the impact
fees represents a "snapshot approach" of current levels of service and costs. The 2.53 PPHU factor will be
applied to the base year 2019 housing unit estimate calculated above.
Figure A13: Persons per Housing Unit by Type of Unit, 2027 American Community Survey
Units in Structure
Persons Households
Persons per
Household
Housing
Units
Persons per
Housing Unit
Housing Mix
Vacancy Rate
Source: U.S. Census Bureau, 2013-2017 American Community Survey 5-Year Estimates
1. Includes detached, attached (i.e. townhouses(, and mobile home units.
2. Includes dwellings in structures with two or more units.
48
22
Tischl reschl &se
1'15CAC I CCONC,n IC I FANNING
Impact Fee Study
South Miami, Florida
YEAR-ROUND POPULATION ESTIMATES AND PROJECTIONS
Based on recent growth trends and discussions with City staff, TischlerBise calculated a base year
population estimate, for use in the Impact Fee Study. Please note: because population estimates used in
the impact fee study are based on year-round population, estimates and projections presented herein
will be lower than the University of Florida's Bureau of Economic and Business Research household
population data.
To calculate a 2019 year-round population, TischlerBise used population projections developed by the
Florida Housing Data Clearinghouse to determine the projected rate of population growth in the city. The
American Community Survey estimates the City had a 2016 population of 12,911. According to the FHDC's
long-term growth projections, the population of South Miami is projected be 17,213 by 2040. This equates
to roughly a 1.38 percent growth rate for the city population between 2016 and 2040. See Figure A14 for
additional detail. The exponential growth rate of 1.89 percent calculated from the City's 2016 and 2030
population estimates was used to estimate a 2019 base year population of 14,718 for the City of South
Miami.
Figure A14: Population Estimates and Projections for City of South Miami
[1] 2011-2015American Community Survey S-Year Estimates
[2] Florida Housing Data Clearinghouse (FHDC)
M
23
TlschlerSise
Impact Fee Study
South Miami, Florida
DEMAND INDICATORS BY SIZE OF DETACHED HOUSING
TischlerBise analyzed demographic data in an effort to refine the impact fee schedule to be more
progressive for residential development. This can be done by developing fees by size of housing unit based
on bedroom count. Household size can be derived using custom tabulations of demographic data by
bedroom range from survey responses provided by the U.S. Census Bureau in files known as Public Use
Micro -data Samples (PUMS). Because PUMS data are only available for areas of roughly 100,000 persons,
the City of South Miami is in Florida Public Use Micro -data Area (PUMA) 04014. Data is first analyzed for
the PUMA area and then calibrated to conditions in the City.
TischlerBise used 2017 ACS 5-Year Estimates to derive persons per housing unit by number of bedrooms.
As shown in Figure ASS, recommended multipliers were scaled to make the average value by type of
housing for Florida PUMA 04014 match the average value derived from ACS data specific to South Miami.
As the number of bedrooms increases, persons per unit increases.
Figure ASS: Average Persons and Trip Ends by Bedroom Range in City of South Miami
Housing type s
Multifamily •N/A•
Persons [11 Housing Units [11
1 9731 538
Persons per Housing
1 Unit [2]
1.77
Single-family
0-3
2,400
999
2.64
4+
1,201
350
3.76
Subtotal
3,601
1,349
2.93
Grand Total
4,574
1,887
[1) American Community Survey, Public Use Microdata Sample for FL PUMA 04014 (unweighted data for
20171
[21 Persons per Housing Unit factors are scaled to make the average value by type of housing for FL
PUMA 04014 match the average value derived from American Community Survey 2017 data, with
persons adjusted to the Citywide average of 2.93 persons per single-family unit.
POPULATION AND HOUSING UNIT PROJECTIONS
TischlerBise used a two-step process to project housing units for each year past base year 2019. First, to
calculate units added each year, the annual net population increase was divided by the PPHU factor (2.53).
The total units estimate was then distributed by type of structure using the assumed 2017. According to
the Census data, the housing unit inventory in the City is 65 percent single-family units and 35 percent
multifamily units, as shown in Figure A16.
Figure A16: City of South Miami Housing Units by Type, 2017
Units in Structure
Single-FamilY7nitsl
Housing .15-10 MMIVAWR
I Units
3,128 11 65% 70%
Multi-FamilyUnitS2
1,665
1 35%
21%
Total
1 4,793
1 100%
12%
Source: U.S. Census Bureau. 2013-2017 American Communitv Survev 5-
Year Estimates
1. Includes detached, attached (i.e. townhouses), and mobile home
units.
2. Includes dwellings in structures with two or more units.
61C
24
T(schl re Bise
C I PLANNING
Impact Fee Study
South Miami, Florida
See Figure A17 below for a summary of population and housing unit projections.
Population and housing unit projections are used to illustrate the possible future pace of service demands,
revenues, and expenditures. As these factors will vary to the extent that future development varies, there
will be virtually no effect on the actual amount of the impact fees.
51
25
TischlerBise
FISCAL ECONOMIC 1 PANNING
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iz
Impact Fee Study
City of South Miami, Florida
APPEONMIX B ® FLORIDA STATUTE: 163.31801
Title XI 163.31801- Impact fees; short title; intent; definitions;
ordinances levying impact fees
FLORIDA IMPACT FEE ACT
(1) This section may be cited as the "Florida Impact Fee Act."
(2) The Legislature finds that impact fees are an important source of revenue for a local
government to use in funding the infrastructure necessitated by new growth. The Legislature
further finds that impact fees are an outgrowth of the home rule power of a local government
to provide certain services within its jurisdiction. Due to the growth of impact fee collections
and local governments' reliance on impact fees, it is the intent of the Legislature to ensure that,
when a county or municipality adopts an impact fee by ordinance or a special district adopts an
impact fee by resolution, the governing authority complies with this section.
(3) An impact fee adopted by ordinance of a county or municipality or by resolution of a special
district must, at minimum:
(a) Require that the calculation of the impact fee be based on the most recent and localized
data.
(b) Provide for accounting and reporting of impact fee collections and expenditures. If a local
governmental entity imposes an impact fee to address its infrastructure needs, the entity
shall account for the revenues and expenditures of such impact fee in a separate
accounting fund.
(c) Limit administrative charges for the collection of impact fees to actual costs.
(d) Require that notice be provided no less than 90 days before the effective date of an
ordinance or resolution imposing a new or increased impact fee. A county or municipality
is not required to wait 90 days to decrease, suspend, or eliminate an impact fee.
(4) Audits of financial statements of local governmental entities and district school boards which
are performed by a certified public accountant pursuant to s. 218.39 and submitted to the
Auditor General must include an affidavit signed by the chief financial officer of the local
governmental entity or district school board stating that the local governmental entity or district
school board has complied with this section.
(5) In any action challenging an impact fee, the government has the burden of proving by a
preponderance of the evidence that the imposition or amount of the fee meets the
requirements of state legal precedent or this section. The court may not use a deferential
standard.
History.—s. 9, ch. 2006-218; s. 1, ch. 2009-49; s. 5, ch. 2009-96; s. 5, ch. 2011-14; s. 1, ch. 2011-149.
53
27
TischlerBise
-ISCA,- ECON(DMIC 1 C ANNING
MIAMI DAILY BUSINESS REVIEW
Published Daily except Saturday. Sunday and
Legal Holidays
Miami, Miami -Dade County. Florida
STATE OF FLORIDA
COUNTY OF MIAMI-DADE:
Before the undersigned authority personally appeared
GUILLERMO GARCIA, who on oath says that he or she is the
DIRECTOR OF OPERATIONS, Legal Notices of the Miami Daily
Business Review f/k/a Miami Review, a daily (except
Saturday, Sunday and Legal Holidays) newspaper,
published at Miami in Miami -Dade County, Florida; that the
attached copy of advertisement. being a Legal Advertisement
of Notice in the matter of
NOTICE OF PUBLIC HEARINGS - CITY OF SOUTH MIAMI - SEP.
17.2019
in the XXXX Court,
was published in said newspaper in the issues of
09/06/2019
Affiant further says that the said Miami Daily Business
Review is a newspaper published at Miami, in said Miami -Dade
County, Florida and that the said newspaper has heretofore
been continuously published in said Miami -Dade County, Florida
each day (except Saturday. Sunday and Legal Holidays) and
has been entered as second Gass mail matter at the post
office in Miami in said Miami -Dade County. Florida, for a period
of one year next preceding the first publication of the attached
copy of advertisement; and affiant further says that he or she
has neither paid nor promised any person, firm or corporation
any discount, rebate, commission or refund for the purpose of
securing this advertisement for publication in the said
newspaper.
Swor o a subscribed before me this
6 day EPTE R, A.D. 2019
( L)
GUILLERMO GARCIA personally known to me
•'"" BARBARA THOMAS
f�• ' " Commission # GG 121171
t•.c
=� Expires November 2, 2021
- ..... r' Borxted Thru Troy Fain ImurarKe
SE EE AV m
54
SOUTH
o� ��i
F �
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mc1 027nv
�I 192� M
Rt1�
CITY OF SOUTH MIAMI
NOTICE OF PUBLIC HEARINGS
NOTICE IS HEREBY given that the City Commission of the City of South Miami, Florida will conduct Public
Hearing(s) at its regular City Commission meeting scheduled for Tuesday, September 17, 2019, beginning at 7:00 p.m.,
in the City Commission Chambers, 6130 Sunset Drive, to consider the following item(s):
An Ordinance amending Section 732 of the Code of Ordinances to adjust the pads impact fees.
An Ordinance amending the City of South Miami Comprehensive Plan Future Land Use Element, to add a
land use category, Mixed Residential -Moderate Density (MRMD), under FLU Policy 1.1.1.
An Ordinance amending the Future Land Use Map (FLUM) of the City's Comprehensive Plan: redesignating
the future land use of certain parcels of land within the City of South Miami to Mixed Residential -Moderate
Density (MRMD),
ALL interested parties are invited to attend and will be heard.
For further information, please contact the City Clerk's Office at: 305-663-6340.
Nkenga A. Payne, CMC
City Clerk
Pursuant to Florida Statutes 286.0105, the City hereby advises the public that if a person decides to appeal any
decision made by this Board, Agency or Commission with respect to any matter considered at its meeting or
hearing, he or she will need a record of the proceedings, and that for such purpose, affected person may need to
ensure that a verbatim record of the proceedings Is made which record includes the testimony and evidence
upon which the appeal is to be based.
9/6 19-94/0000424216M
55
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CITY OF SOUTH MIAMI
NOTICE. OF PUBLIC HEARINGS
NOTICE IS HEREBY given that the City Commission of the City of South
Miami, Florida will conduct Public Hearings) at its regular City Commission
meeting scheduled for Tuesday, September 17. 2019, beginning at 7:00 p.m.,
in the City Commission Chambers, 6130 Sunset Drive. to consider the
following ilemms):
An Ordinance amending Section 7-3.2 of the Code of Ordinances to
adjust the parks impact fees.
An Ordinance amending the City of South Miami Comprehensive
Plan Future Land Use Element, to add a land use category, Mixed
Residential -Moderate Density (MRMD), under FLU Policy I.I.I.
An Ordinance amending the Future Land Use Map (PLUM) of the
City's Comprehensive Plan; ne-designating the future land use of
certain parcels of land within the City of South Miami to Mixed
Residential -Moderate Density (MRMD).
To, tro. org
,a or
t —
,1
4
—
&
earn sr
ALL interested parties are invited to attend and will he heard.
For further information, please contact the City Clerk's
Office at: 305-663-6340.
Nkenga A. Payne, CMC
City Clerk
Pituner to Ilnnm sooner 2860105, din City hereby :nlvuc, IM1e puhlia thin it IT decide. to +npenl
any derision mark by dos Itnm,pin n d. Agency or I oninmion with reenl any matter cowidered . mecnng
err hen.ing. he m .he will need a record or proceedings.
art preedings. and not for Inch tr rinue, affected person may 56
reed m Collie that a rnharni record of the prr
o scan, 1, made which recmd inctude, the testimony ant
order" rpm which tire nPpcat is orhe hoed.
MIAMI DAILY BUSINESS REVIEW
Published Daily except Saturday. Sunday and
Legal Holidays
Miami. Miam,-Dade County, Florida
STATE OF FLORIDA
COUNTY OF MIAMI-DADE:
Before the undersigned authority personally appeared
GUILLERMO GARCIA, who on oath says that he or she is the
DIRECTOR OF OPERATIONS, Legal Notices of the Miami Daily
Business Review 0Ma Miami Review, a daily (except
Saturday, Sunday and Legal Holidays) newspaper.
published at Miami in Miami -Dade County, Florida; that the
attached copy of advertisement, being a Legal Advertisement
of Notice in the matter of
NOTICE OF PUBLIC HEARINGS - CITY OF SOUTH MIAMI - OCT
1.2019
in the XXXX Court,
was published in said newspaper in the issues of
09120/2019
AKant further says that the said Miami Daily Business
Review is a newspaper published at Miami, in said Miami -Dade
County, Flonda and that the said newspaper has heretofore
been continuously published in said Miami -Dade County. Florida
each day (except Saturtlay, Sunday and Legal Holidays) and
has been entered as second class mail matter at the post
office in Miami in said Miami -Dade County, Florida, for period
of one year next preceding the first publication of the attached
copy of advertisement: and athant further says that he or she
has neither paid nor promised any person, firm or corporation
any discount, rebate, commission or refund for the purpose of
securing this advertisement for publication in the said
GUILLERMO GARCIA personally known to me
N
BARBARATHOh%Sf.Commission # GG 12117l
Expires November 2, 2021
8,w, ii Thm Troy Fain Insurance 888-ESI019
t
CITY OF SOUTH EYiIi
NOTICE -OF PUBLIC HEARINGS
NOTICE IS HEREBY given that the City Commission of the City of South
Miami, Florida will Conduct Public Hearing(s) at its regular City Commission
meeting scheduled for Tuesday, October 1, 2019, beginning at 7:00 p.m.,
in the City Commission Chambers, 6130 Sunset Drive, to consider the
following tterri
A Resolution authorizing the City Manager to amend the multi -year
contract for citywide phone service with Windstream by adding three
new phone lines. '
A Resolution ratifying the three-year Collective Bargaining Agreement
from June 22, 2019 to June 21, 2022 between the American Federation of
State, County, and Municipal Employees (AFSCME), Local 3294 and
the City of South Miami, and authorizing its execution by the City Manager.
A Resolution relating to a Variance application to reduce the minimum
off-street parking space requirement for a mixed -use project on both
the East and West Madison Square properties as legally described
herein.
An Ordinance amending Chapter 2, Article V, Sections 2-W-2-380..-
Reserved of the City of South Miami Code of Ordinances to create a
separate Section 2-354 that establishes standards for use of chemical
pesticides and herbicides for the maintenance of City property an to
reserved Sections 2-355 through 2-380.
An Ordinance amending Section 7-3.2 of the Code of Ordinances to
adjust the parks impact fifes; defining how those fees are calculated,
providing for definhions, exceptions, assessment of development prior
to establishment of parks impact fees; providing for exemption for
affordable housing developments; providing severabllity, inclusion in
the code, and effective dates.
An Ordinance amending the City of South Miami Code of Ordinances,
Chapter 8A, Section 8A- 4.1. titled 'Prohibited Commission actions' to
allow the Mayor or Mayor's designee to issue proclamations without
• the need for approval by written resolution.
ALL interested parties are invited to attend and will be heard.
For further information, please contact the City Clerk's Office at: 305-
663-6340.
Nkenga A Payne, CMC
City Clark
Pursuant to Florida Statutes 286.0105, the City hereby advises the public
that if a person decides to appeal any decision made by this Board, Agency
or Commission with respect to any matter Considered at its meeting or
hearing, he or.she will need a record of the proceedings, and that for such
purpose, affected person may need to ensure that a verbatim record of the
proceedings Is made which record Includes the, testimony and evidence
upon which the appeal is to be based.
920 19-72/000D427148M
57