TO: Honorable Mayor & Members of the North Port Commission
FROM: Peter D. Lear, CPA, CGMA, City Manager
TITLE: Consideration of possible changes to Ordinance No. 2019-06 Impact Fees
Recommended Action
Discussion and possible direction related to Ordinance No. 2019-06, Impact Fees
Background Information
On June 11, 2019, the City Commission adopted Ordinance No. 2019-06, increasing Impact Fees charged in the City to 75% of the recommended rate by the consultants in 2011. This increase was to go into effect immediately and was after previously cleaning up language earlier in the year to eliminate language related to a moratorium and the phased in rates done in earlier years. There was some questions raised by staff in NDS and the Impact Fee Administrator related to fees being charged for construction that had a current building permit and had received estimated impact fee amounts. As a result, staff sought a legal opinion on the correct amount of impact fees to be charged. Upon review by the City Attorney, the ordinance requires impact fees, which are collected at Certificate of Occupancy, to be the fees in place at the time of the Certificate of Occupancy, which are the new rates. Based on this interpretation, staff has noticed all current permit holders, some of which date back to 2016, of the new rates due at Certificate of Occupancy. The amount of increase ranges from $2455.41 for a single-family home to $317,001.60 for a commercial development. Staff and Commission have been contacted by affected parties that disagree with the implementation of this ordinance.
If the new rates are not charged for the permits that are currently outstanding, the loss of revenue for impact fees would be $751,355.46 for the 306 single family homes with outstanding permits as of this date. The fees for the commercial permits outstanding would be in excess of $742,980.
Vice Mayor Luke has requested that an agenda item be created to discuss the implementation of this ordinance.
Strategic Plan
None
Financial Impact
Depending on direction from Commission, if the new rates are not charged to outstanding permits as of today, the loss in revenue to the City would be in excess of $1,500,000.
Procurement
N/A
Attachments:
1. Ordinance No. 2019-06
Prepared by: Peter Lear, City Manager for Vice Mayor Luke
Department Director: Peter Lear, City Manager