Indian River County Impact Fee Study Final Report - irccdd.com

o A non-charter county may adopt countywide ordinances that do not
conflict with municipal ordinances.
• The fiscal burden of providing countywide services must be borne by property
owners in both the unincorporated and incorporated areas of the county.
Compliance with State and Federal Constitutional Requirements
• Local government impact fee programs must satisfy the “dual rational nexus test”
by demonstrating that:
o the need for capital facilities created by new development is proportionate
to the amount of the fee charged; and
o the expenditure of impact fee funds creates a reasonable benefit to the new
development paying the fees.
• Compliance with the dual rational nexus test is achieved by:
o using a methodology that establishes a proportionate need for capital
facilities; and
o implementing an ordinance that contains safeguards and restrictions to
guarantee reasonable benefit to the fee payer.
Defensible Impact Fee Methodology
• A local government impact fee program must be based on a study that documents:
o the need for additional capital facility capacity created by new
development;
o the cost of providing needed facilities;
o the new development’s proportionate share of the costs; and
o the maximum amount per unit of development consistent with the
proportionate share.
• The County may, by policy, charge less than the maximum amount per unit of
development.
Level of Service (LOS) Standards
• The County must establish LOS standards for each impact fee program area.
• The County must apply the same LOS standard to both existing and new
development.
• An “existing deficiency” is created when a County establishes a LOS standard
that is greater than the current LOS.
• New development cannot be charged a rate designed to correct an existing
deficiency.
• To charge new development based on a LOS standard higher than what exists
today, the County must have a financial plan (non-impact fee revenue sources) to
eliminate the existing deficiency within a reasonable amount of time (generally
five years or less). The following example illustrates this concept.
o The current parks acreage level of service is 4 acres per 1000 residents.
Tindale-Oliver & Associates, Inc.
Indian River County
May 2005 I-4 Impact Fee Study