Cocoa Beach approves impact‑fee ordinance on first reading after debate over exemptions

Cocoa Beach commissioners voted 3‑2 on first reading to adopt Ordinance 17‑09, creating new municipal impact fees for police, fire and general government based on a 2026 fee study by Raftelus Financial Consultants.

The ordinance was introduced by staff and presented by Michelle Galvin of Raftelus, who said the fees are one‑time charges on new development intended to recover capital costs associated with growth and to shift those costs from existing residents to new development. Galvin described the methodology as following the statutory “rational nexus” test and said the study used existing capital investments and planned capital improvements to calculate per‑unit fees.

Galvin presented recommended fees by category: police $1,080 per single‑family unit; fire $1,034 per single‑family unit; and general government $946 per single‑family unit, producing a combined single‑family fee of $3,060. She said the city currently lacks these three municipal impact fees (the city has wastewater connection fees) and noted that neighboring cities have a range of fee approaches.

Commission debate focused on how fees would affect projects already in the pipeline, with commissioners seeking clarity about when the fees would be assessed. Legal staff noted the ordinance would become effective 90 days after advertisement and that fees are assessed at the time a building permit is pulled. Commissioners discussed whether to exempt projects with existing development orders; an amendment to broadly exempt current development orders failed for lack of a second. Public commenter Rick Anderson urged the commission not to grandfather projects that remain inactive.

Proponents argued the fees properly allocate capital costs to those who benefit from added capacity. Opponents cautioned that even a small percentage increase could affect marginal projects in a market made fragile by high interest rates.

The motion to approve Ordinance 17‑09 on first reading passed 3‑2. Under Florida law the ordinance will be subject to the statutory waiting and advertising requirements before becoming effective; staff said a 90‑day waiting period applies after advertisement and that fee tables will be consolidated in an appendix when the ordinance returns for final action.

What happens next: the ordinance will return for a second reading and further legal review of any implementation language, including specific grandfathering or development‑agreement provisions.