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

The following table provides a summary of credit per resident based on the analysis and
assumptions discussed previously.
Table IV-9
Total Credit per Resident
Credit Element/Calculation Step
Figure
FY 2004/2005 Total Budgeted District Revenues (1) $10,722,233
Percent of District Revenues Allocated to Capital Expenditures (2) 15%
District Revenues Allocated to Capital Expenditures (3) $1,608,335
2005 County Population (4) 140,562
District Revenues per Person (5) $11.44
Capitalization Rate (6) 5%
Capitalization Period (years) (7) 25
Credit per Resident (8) $161.27
(1) Source: Table IV-7
(2) For the purposes of this analysis, it is assumed that approximately 15 percent
of the District revenues will be allocated for capital expansion expenditures.
(3) FY 04/05 revenues (Item 1) multiplied by percent of revenues allocated to capital
expenditures (Item 2).
(4) Source: Section II, Table II-1
(5) District revenues allocated to capital expenditures (Item 3) divided by 2005 County
population (Item 4).
(6) Capitalization rate is estimated at 5 percent.
(7) Capitalization period is estimated at 25 years, which is typically when major
renovations or replacement of capital facilities become necessary.
(8) Present value of $11.44 over a 25-year period with a capitalization rate of 5
percent.
The calculations shown thus far relate to the portion of the expenditures necessary to
accommodate new population’s capital needs, which were estimated at $9.2 million in
current dollars, as shown in Table IV-6. The District has to spend an additional $31
million in current dollars to accommodate the existing population capital facility needs.
As mentioned previously, SWDD has a fund balance of $30 million, which should
remain at this level or increase by 2020. Thus, impact fee revenues should be sufficient
to accommodate the capital expansion costs due to new growth, which include cost of
additional capital and contribution to the fund balance. Table IV-10 presents the
necessary impact fee revenues to retain the current fund balance.
Tindale-Oliver & Associates, Inc.
Indian River County
May 2005 IV-16 Impact Fee Study