Consultant details proposed municipal impact fee increases, resident questions timing

A consultant for the city presented a detailed study recommending higher municipal impact fees for police, fire and parks and described the statutory process the commission must follow to exceed standard implementation limits.

“For the record, Sean Ocasio, Raftalis Financial Consultants. I am a senior manager there,” Ocasio said as he opened the second public workshop on the proposed increases. He described impact fees as charges “paid by new development and redevelopment that results in any increased demand for service or for infrastructure or facility related capacity.”

Ocasio said the study shows proposed increases to better align fees with the capital costs tied to growth. He said current police impact fees of $747 per single-family dwelling would rise to $1,116 under the full-calculation scenario (about a 49% increase). Fire-related residential fees, he said, would rise from $708 to $1,104 (about 56%). Parks-and-recreation fees that now run about $1,060 per single-family unit would increase to $1,358 (about 28%). Ocasio also presented combined residential averages and noted the sample survey average was lower than the city’s current fees.

Ocasio explained state law governs fee phasing and caps. He summarized the Florida Impact Fee Act (Florida Statutes, section 163), saying increases up to 25% must be phased over two years and increases greater than 25% up to 50% phased over four years, with a standard cap at 50%. He described the “extraordinary circumstances” provision that lets a governing body phase in or exceed those caps after a legislative finding, and he noted procedural requirements including a justified needs study, two public workshops (this was the second), and a governing-body vote. He told the commission that changes in SB 1080 will alter the implementation rules going forward, including a change from a two‑thirds to a unanimous vote requirement for exceeding caps under the new law.

Ocasio cited growth and rising costs as reasons for the recommended increases. He said the city’s permanent population rose by roughly 21,800 residents since 2010 — an average annual rate near 2.8% — and projected continued growth through 2035. He highlighted cost escalations in vehicles and equipment (a new police vehicle estimated at about $65,000 today versus $35,000–$40,000 five years ago and a planned fire engine costing roughly $900,000 versus about $500,000 previously) and higher construction-material and CPI measures over recent years.

To illustrate the impact on existing taxpayers, Ocasio calculated that, over a five-year window, under-collecting the full fees would shift approximately $224,000 in police-related capital costs, $300,000 in fire-related capital costs and $178,000 in recreation costs onto existing residents. He said adding potential undercollection from nonresidential growth would increase that burden further.

During questions, a commissioner asked whether the fees would be applied to current residents; Ocasio replied, “That’s correct,” explaining the fees are charged to developers and are typically passed on to new residents rather than current homeowners.

In public comment, resident Albert McKinney questioned the growth assumptions and timing of fee collections, saying recent development volumes appear much higher than historical averages and warning that fees paid at the time of permitting “are gonna do nothing for the residents just now” because they will not address existing infrastructure deficiencies immediately. “So my recollection in the last year, we probably have, what, done 12,000 units,” McKinney said, urging the commission to consider alternative approaches to manage immediate infrastructure needs.

The workshop recessed for a short break and was expected to resume after about 10 minutes.