Orange County Government

Work Session April 5, 2016

Board of County Commissioners

School Impact Fee Update

Presentation Outline

• Background

• Technical Study

• Next Steps

Background

Impact fees

• Fire/Rescue Services

• Law Enforcement

• Roads

• Parks and Recreation

• Schools

Background (cont.)

School Impact Fee

• Residential uses only

• Required to be Countywide

• Collected by the County and municipalities

• Fee redistributed to OCPS less any administrative fee

• Required to be reviewed every 4 years

Review Process

School Impact Fee Advisory Group OCPS 3 Members Derrick Cox

Christine Bramuchi Sean Murphy

BCC 3 Members Miranda Fitzgerald Eric Marks Dotti Wynn GOBA 1 Member Randy June

Review Process

• Consultant Updates Study

• Advisory Group Review - Aug. ‘15 – Feb ’16

• School Board Work Session – January 19, 2016

• PZC/LPA Work Session – February 18, 2016

• PZC/LPA Adoption Hearing – March 17, 2016

• BCC Work Session – April 5, 2016

• Advisory Group Final Review – April 7, 2016

• School Board Adoption Meeting – April 12, 2016

• BCC Adoption Hearing – May 10, 2016

• Effective 90 Days – August 8, 2016

Existing vs Proposed Fees

School Impact Fee Methodology

• Consumption-based methodology – Charge growth for the value of consumption

of school capacity

Impact Fee Formula

Net Impact Fee =

(Cost – Credit) x Demand

Asset Value per Student

Non-Impact Fee

Revenue per Student

Students per

Residential Unit

School Impact Fee Methodology

Elements of fee methodology: – Inventory

– Facility service delivery

– Cost component

– Credit component

– Student generation rate

Cost Component

• Facility Cost per Student Station:

– All costs necessary to build schools

Architect/site improvements

Construction

Furniture, fixtures, and equipment (FF&E)

Land purchase

Cost Component

• Construction Cost:

– 2009 - 2015:

• 6 Elementary Schools

• 2 Middle Schools

• 2 High Schools

Cost Component

• School Costs Reviewed (Report Table B-2): – SunRidge ES

– Hackney Prairie Road Area ES

– Sun Blaze ES

– Wetherbee ES

– Eagle Creek ES

– Independence ES

– SunRidge MS

– Lake Nona MS

– East River HS

– Lake Nona HS

Cost Component

Construction Cost – Elementary Schools:

$145 - 2007 Study

$100 - 2011 Study

$161 - Bid for Site 117

$135 - 2015 Elem. School Estimate

$80

$100

$120

$140

$160

$180

$200

$220

2007 2011 2012 2013 2015

Cons

truc

tion

Cost

per

Gro

ss S

quar

e Fo

ot

Cost Component

Construction Cost per Gross Square Foot

Type Elementary Middle High Weighted

Recent Construction $108 $115 $153

Bids $161 N/A N/A

CIP Estimates $181 $211 $227

Insurance Values (Bldg Only) $140 $166 $177

Other Florida Jurisdictions $140 $148 $136

2015 Estimate $135 $155 $175 $153

Cost Component

Construction Cost – All School Levels

$80

$100

$120

$140

$160

$180

$200

$220

1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015

Cons

truc

tion

Cost

per

Gro

ss S

quar

e Fo

ot

All School Types - Construction Cost/GSF Trend All SchoolTypes

2015 Study Estimate -

$153

2007 Study - $190

2011 Study - $113

Cost Component

Construction Cost per Gross Square Foot

Comparison to Previous Studies

Type 2007

Study 2011 Study

2015 Estimate

% Change (2011-2015)

Elementary Schools $145 $100 $135 +35%

Middle Schools $173 $116 $155 +34%

High Schools $209 $132 $175 +33%

Cost Component

• Other Building Costs:

– Non-construction costs: A/E, Design, Site

Improvement, Facility Support, etc.

– Furniture/fixture/equipment

Cost Component

• Comparison to Previous Studies

Component 2007 Study 2011 Study** 2015 Estimate

Non-Construction* 25% 22% / 18% 19%

FF&E 6% 9% 9%

Total 31% 31% / 27% 28%

* Includes A/E, design, site preparation, & facility support ** Non-construction cost at 22% for ES & MS; and at 18% for HS

Cost Component

• Land Value:

– Recent Purchases

– Future Estimates

– Value of Existing Parcels

– Vacant Land Sales & Values

Cost Component

• Land Purchases > 10 acres (2008-16)*:

– 87-M-SE-3 – 48-M-SW-4 – Forsyth Woods ES – Site # 37 –M-W-4 – 52-M-SE-2 – 2-M-E-1

– 131-K8-SW-5 – 81-E-SW-5 – 30-E-SE-3 – 3-E-SE-2 – 117-E-SE-4 – 23-E-E-1 – Lake Nona MS

Weighted Average ≈ $158,000

* Report Table B-8

Cost Component

• Land Value Variables

Component Value per Acre

Average Range

Recent Purchases (10+ acres) $158,000 $20,000 $945,000

Value of Current Parcels $55,000 $9,100 $496,000

Future Estimates (15 to 50 acres) $348,000 $23,000 $500,000

Vacant Land Sales (5 – 90 acres)* $105,000 $10,000 $798,000

Vacant Land Values (5 – 90 acres) $44,000 $10,000 $472,000

* Sales between 2012 and 2015

Cost Component

• Land Value Comparison to Previous

Studies

Component 2007 Study 2011 Study 2015 Estimate

Value per Acre $80,000 $65,000 $100,000

Cost Component

Gross Square Feet per Permanent Station

Component

2011 Study 2015 Study % Change (2011 to 2015)

GSF per Permanent Student Station

Elementary Schools 124.1 110.0 -11%

Middle Schools 125.1 129.4 3%

Senior High Schools 127.1 133.1 5%

Cost Component Elementary Middle High Weighted Average

Gross Square Feet per Student Station (LOS) – Future Schools 110.0 129.4 133.1 123.4

Total Facility Cost per Gross Sq. Ft. $189.10 $213.10 $240.90 $211.70

Total Facility Cost per Student Station $20,801 $27,575 $32,064 $26,123

• School Facility Cost per Student Station

26

Cost Component

Cost Component

Cost per Student Station Comparison to Previous Studies

Cost per Station 2007

Study 2011 Study

2015 Estimate

% Change (2011-2015)

Elementary $25,396 $16,997 $20,801

Middle $34,693 $20,416 $27,575

High $40,377 $23,284 $31,064

Weighted $36,422 $19,463 $26,123 34%

Calculation Steps Elementary Middle High Weighted Average

Facility Cost per Permanent Student Station $20,801 $27,575 $32,064 $26,123

Adopted LOS Standard (Enrollment to Permanent Capacity) 110% 100% 100% N/A

Total Facility Impact Cost per Student (Adopted LOS Standard) $18,910 $27,575 $32,064 $25,468

• Total Facility Impact Cost per Student

28

Cost Component

Cost Component

• Total Cost per Student:

– Transportation Costs

– Ancillary Facility Costs

• Transportation & Ancillary Facility Cost per Student

30

Description Figure

Transportation Services Cost per Student

Total Current Value of Transportation Services $153,246,946

Current Enrollment 186,276

Total Transportation Services Cost per Student $823

Ancillary Facility Cost per Student

Building Value for Ancillary Facilities $124,015,320

Land Value for Ancillary Facilities $17,900,000

Total Current Value for Ancillary Facilities $141,915,320

Total Ancillary Facility Cost per Student $762

Cost Component

Credit Component

• Capital Improvement “Cash” Credit

– Sales Tax

– Capital Millage

• Debt Service Credit

• Net Impact Cost per Student

32

Total Impact Cost Per Student

Facility Impact Cost $25,468

Transportation Impact Cost $823

Ancillary Facility Cost $762

Total Impact Cost per Student $27,053

Revenue Credit

Capital Improvement “Cash” Credit $4,284

Debt Service Credit $1,704

Total Revenue Credit per Student $5,988

Net Impact Cost Net Impact Cost per Student $21,065

Net Impact Cost

• Student Generation Rate Comparison (2011 vs. 2015)

33

Residential Land Use 2011 2015 % Change (2011-15)

Single Family (detached) 0.431 0.417 -3.2%

Townhouse 0.259

0.329 +27.0%

Multi-Family 0.281 +8.5%

Mobile Home 0.287 0.289 +0.7%

Total 0.360 0.360 +0%

Student Generation Rate

• Calculated School Impact Fee Schedule

34

Residential Land Use Unit Students per Unit

Net Impact Cost per Student

Total Impact

Fee

Current Adopted

Fee

Percent Change

Single Family (detached) du 0.417 $21,065 $8,784 $6,525 +35%

Townhouse du 0.329 $21,065 $6,930 $3,921 +77%

Multi-Family du 0.281 $21,065 $5,919 $3,921 +51%

Mobile Home du 0.289 $21,065 $6,088 $4,345 +40%

School Impact Fee Schedule

• Input Variable Changes (2011 Study to 2015 Study @100%): Single Family Land Use

35

Input Variable Change Effect on Final Fee Rate

Demand (SGR)

Cost per Student

Credit

Net Impact Fee -

Impact Fee Variable Changes

– School Impact Fee Rate Comparison

36

County Study Date Adoption % Single Family Rate

SFR Rate @ 100%

Citrus County* 2015 50% $1,261 $2,522

Indian River County 2014 28% $1,702 $6,077

Palm Beach County1 2015 N/A $1,866 $15,305

Sarasota County1* 2015 N/A $2,032 $7,835

Highlands County* 2006 50% $2,901 $5,801

Volusia County 2013 67% $3,000 $4,483

Nassau County 2011 100% $3,268 $3,268

Flagler County 2004 76% $3,600 $4,756

Hillsborough County 2004 100% $4,000 $4,000

Orange County (Calculated) 2015 N/A N/A $8,784

School Impact Fee Rate Comparison

1) SFR Rate at 100% reflects most recent on-going technical study *Fees are currently suspended

– School Impact Fee Rate Comparison

37

County Study Date Adoption % Single Family Rate

SFR Rate @ 100%

Marion County 2006 55% $4,068 $7,375

Hernando County* 2013 N/A $4,266 $7,103

Polk County 2015 42% $4,403 $10,483

Brevard County1 2015 N/A $4,445 $10,193

Lee County 2015 100% $4,540 $4,540

Pasco County 2005 100% $4,876 $4,313

Seminole County 2007 99% $5,000 $5,068

Collier County1 2015 N/A $5,378 $11,164

Martin County 2006 100% $5,567 $4,555

Orange County (Calculated) 2015 N/A N/A $8,784

School Impact Fee Rate Comparison

1) SFR Rate at 100% reflects most recent on-going technical study *Fees are currently suspended

– School Impact Fee Rate Comparison

38

County Study Date Adoption % Single Family Rate

SFR Rate @ 100%

St. Lucie County 2009 100% $6,182 $5,447

Manatee County* 2006 100% $6,350 $5,866

St. Johns County 2011 100% $6,396 $5,779

Orange County (Current Adopted) 2011 100% $6,525 $6,525

Clay County 2009 77% $7,034 $9,096

Broward County 2007 75% $7,351 $9,755

Lake County 2015 100% $9,324 $9,324

Osceola County 2014 100% $10,187 $10,187

Orange County (Calculated) 2015 N/A N/A $8,784

School Impact Fee Rate Comparison

*Fees are currently suspended

Questions

Next Steps

• Advisory Group Final Review – April 7, 2016

• School Board Adoption Meeting – April 12, 2016

• BCC Adoption Hearing – May 10, 2016

• Other Issues

– City of Orlando High-Rise Category

– Incremental Fee Increase