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