Riviera Beach utility board adopts large jump in water impact fees; one member dissents

Riviera Beach — At its Feb. 19 meeting, the City of Riviera Beach Utility Special District Board of Directors voted 4-1 to adopt new capital improvement charges that raise the district’s water impact fee from $2,110 to $8,222 and increase the wastewater impact fee from $1,830 to $1,904. Vice Chair Trojnick McCoy cast the lone dissent.

The board adopted Resolution No. 5-25-UD after a presentation from Randy Sherman, the district’s finance director, and a consultant’s impact-fee study. The board’s action includes an extraordinary-conditions finding that allows the district to set the new maximum water fee immediately rather than phasing increases over several years as typically required by state statute.

Sherman, who led the staff presentation, said the fee is targeted at new development and “These fees are not paid by existing customers. This is sort of the entrance fee for new developers, to come into to the city.” He said the recommended water fee reflects capital costs tied to a planned expansion of the water treatment plant and related projects. Sherman told the board the consultant identified roughly $364,735,480 in future capital costs that could be recovered in whole or in part through impact fees and noted the district has previously authorized borrowing of up to $400 million for the program.

Board members debated whether the district should declare the project an “extraordinary” circumstance and move immediately to the consultant’s maximum recommended fee or phase in increases subject to limits in Florida law. Sherman argued that adopting higher fees now could reduce the amount the district must borrow and thus reduce long-term borrowing costs, saying “every dollar that we collect on impact fees and use to pay cash for projects... saves the ratepayers a dollar and 80¢.”

Vice Chair Trojnick McCoy, who opposed the measure, questioned whether the study and backup materials justified a fourfold jump for new water customers compared with fees set a few years earlier. “I am very hard pressed to believe that it's 4 times the amount of a house that was there just 3 years ago,” McCoy said during deliberations, asking for clearer demonstration of the statutory extraordinary-condition standard.

Sherman responded that the combination of the district’s current asset base — about $85 million on the books — and the addition of roughly $400 million in new plant assets over the next two years warranted the extraordinary finding. He said the statutes allow a governing body to phase in increases (generally limiting increases to about 50% in a single update) but that the board may adopt the consultant’s full recommended maximum immediately if it finds extraordinary circumstances.

The board’s resolution sets the new maximum water impact fee at $8,222 and the wastewater fee at $1,904. Board members were told the practical effect depends on whether the board phases the increases or implements the maximum immediately: if implemented now, developers pay the higher fee when they apply for certificates of occupancy; if phased, developers pay the fee in effect that year.

The vote on Resolution 5-25-UD passed with four votes in favor and one opposed. The board record shows Vice Chair Trojnick McCoy voted no; Chair Douglas Lawson, Board member Miller Anderson, Board member Spiritus and Board member Lanier voted yes. Sherman said staff could amend the resolution if the board wanted to remove the extraordinary finding and instead adopt a phased schedule.

The board and staff noted follow-up steps will include publishing the adopted rates, clarifying an effective date in the resolution language and returning to the board if the members ask staff to craft a phase-in alternative or to provide additional documentation supporting the extraordinary finding.

Votes at a glance: Resolution 5-25-UD, capital improvement charges (impact fees) — Outcome: approved; vote: 4–1 (Yes: Douglas Lawson, Miller Anderson, Spiritus, Lanier. No: Trojnick McCoy).