An Ordinance By The Pasco County Board Of County Commissioners Amending The Pasco County Land Development Code; Providing For Amendments To Section 1302.3, School Impact Fees, To Make Such Section Consistent With The 2024 School Impact Fee Study And To Adopt Such Study; To Increase The Amount Of School Impact Fees; Providing For Additional Amendments As Necessary To Ensure Internal Consistency; Providing For Applicability, Repealer, Severability, Inclusion Into The Land Development Code, Modification And An Effective Date.

25:25Not for this item. Okay. We'll move from this item to P54.

25:34Uh we have the publication of this item July tenth and July twenty eighth, twenty twenty four editions of the Tampa Bay Times.

25:43And for that last item, just for purposes of the record, the second hearing is held is to be held on August twenty first, uh, twenty twenty four at one thirty in Newport Ritchie.

25:54Okay.

26:00Thank you, Mr. Chairman. Item P fifty-four is um

26:08You wanna PEG twenty four oh three nine six. This is an ordinance by the Pasco County Board of County Commissioners amending the Pasco County Land Development Code, providing for amendments to section 1302.3 school impact fee to make such section consistent with the 2024 school impact fee study and to adopt such study to increase the amount of school impact fee, providing for additional amendments as necessary to ensure internal consistency, providing for applicability, repealer, subverability, inclusion into the land development code, application,

26:39and an effective date. This is the first hearing of the proposed ordinance before the Board of County Commissioners, and I'd like to introduce Mr. Ray Gedd, Deputy Superintendent of the School Board.

26:56Good afternoon. Ray Gadd, Deputy Superintendent of Schools, 6504, Westerio Loop, Land Oak Explorer, 34638. Uh I don't think there's very many opportunities where we're all together, but I want to take a moment to introduce you to our board who's almost all of them are here except one. And that's Alison Grumley, Cynthia Armstrong. Colleen Bowen, Megan Harding, our chair, Allison Crumley, our co-chair. And we also have our CFO with us,

27:26Tammy Taylor, Assistant Superintendent Monica Isles, Betsy Kuhn, Assistant Superintendent. Chris Williams, our planning director. And then also in the back, don't hold us against us, but we have our consultant once. I'd like to accomplish three things today. I'd like to summarize how we got here. Then I'd like to turn it over to our consultant if you have any questions, and then our board chair would like to make a closing comment if that's

27:56okay with the commission. Before we conducted this study, we brought Brought the builders in for our face-to-face meeting, and first thing we asked them, is there anything specifically you want us to look at? And we had a robust conversation about impact fee. You know how those robust conversations go. So we spent a couple hours discussing the fees with the builders. And frankly, I was amazed when we got done with that meeting. One of the builders looked at all of us and said, You know, all of our kids need good schools. So we conducted the Study.

28:27After we conducted the study, we held a Zoom call with the same group of builders. A few days later, they approved the impact fee as we're going to present to you today or as you have in your packet at their board meeting. We were recently recommended for approval by the Planning Commission and It's an incremental increase, which I know that you're familiar with. I'm guilty at the Planning Commission. I was doing our

28:57consultant's job and telling you all about the study. This time I'm going to let our consultant do his job. After all, we're paying him a lot of money. And I invite you to ask him tough questions. We want to get our money's worth out of him. So without further ado, Carson Weiss with Tishler Weiss. Yeah.

29:21Friends are like that. Who needs enemies, right? Well

29:27in jest, uh Ray is a really good friend of mine, and it's my pleasure to uh to be in front of you today, Mr. Chairman, members of the the commission. We have a presentation. I'll be respectful of your time and get through it quickly. Uh a little bit about us. We specialize in impact fees and fiscal and economic impact analysis. We're based in Bethesda, Maryland, and Boise, Idaho, and we've done quite a bit of work in the state of Florida, particularly as it relates to school impact fees. Um in terms of the methodology, uh we have three components as part of this study. Uh we have the construction of

29:57additional classroom space, a land component, and also a component for buses. Uh we took the incremental expansion or consumption-based approach, which is the standard approach for impact fee. It's very formulaic in terms of how it defines levels of service. It looks at what is the average square footage of a classroom. Our students seed at the elementary, middle, and high school levels. What does it cost us to build additional square foot of space? What does it cost us to buy an acre of land, et cetera? And as you probably are aware from other impact fee discussions for

30:28the county's impact fee is that you know one of the things we have to guard against with the impact fee is new development paying twice, once through the impact fee, and then again through other forms of revenue. And so we do have three credits uh baked into the methodology: that is the future payments on existing debt, uh future penny for Pasco sells tax revenue, and then future local. capital improvement millage that would be used for capital expenditures related to school capacity. Uh you know part of the the showing that we're

30:58establishing the nexus is we have to show that the school district has been growing in terms of enrollment and that growth is going to continue. Uh if you see here at the bottom table, we are projecting an additional thirteen thousand seven hundred students over the next ten years within the school system. Uh we also have to determine what the demand is from different housing units, and so we Calculate what we call pupil generation rates or student generation rates, and those are shown at the top of the table. And those are that those numbers are based on

31:28geocoded data from the school district's GIS system. And as is the case in most communities we work with around the country, single-family units generate a higher number of students than mobile homes and multifamily units. That is the case here. As you can see, a single family unit generates about 0.385 students. So in other words, what that means is for every 100 new housing units, you just expect to generate about 39 additional public school students.

32:01So this table is a little bit outdated given the date of our study. I think there's an additional school that's being contemplated, but at the time of the study there were 4,160 additional planned student stations over the next five years.

32:19Now what we do with that is we look at those enrollment projections you saw on the previous slide and plug in those additional student stations to look at what is our enrollment to capacity at the end of the 10-year period. And even with the planned student stations at the K-8 level, the district would still be at 99% of its capacity at the end of the 10 years. Although there are not additional student stations planned in the next four to five years at the high school level, it is clear from this

32:49table that there will have to be additional student stations in years five through ten because you can see here that the high school level will be at 100% of its available capacity at the end of the 10-year period.

33:04So here we're going to talk about the fact the cost factors used in the analysis for land rather than speculate on what the district would have to spend on land in the future. We look at past purchases, which total 200, you have 237 acres at a total cost of about 14.2 million dollars, and that's results in a weighted cost per acre of $59,000. Mm-hmm. We also look at recent construction costs

33:35for four different projects and we get a weighted average of $361 a square foot.

33:42Yeah.

33:45And then we also look at uh what is the inventory of the district buses and what does it cost us to to buy a bus in today's dollars and we get our cost per student that way.

33:55So this table here summarizes the factors that you've seen in the in the other in the previous slides. Working our way from the top, we see the student generation rates, and then we apply those cost factors for the construction cost per student, the land cost per student, the bus cost per student to get that gross capital cost you see in the middle. Then we deduct from from that cost those credits to get our net costs uh per per student at 37,450 at the K through A level and then 30,731

34:27at the 9 through 12 level.

34:32So this table shows the maximum supportable fees in green. You may be aware that there were some changes to the state's impact fee statute three or four years ago, which limits the increases in fees to 50% unless you go through a process called demonstrating extraordinary circumstances. As you can see here, that the total fee for single fee. family exceeds the 50%. So we're statutorily limited to $12,492.

35:03Then at the multifamily it's $6576 in a mobile home, the statutory limit is $6,666.

35:14This shows the proposed fees, which the single family is is less than the the uh the stat or the the maximum supportable. Uh again, the changes to the Impact Fee Act uh state that any increase above between 25 and 50 percent has to be implemented in four equal increments. Uh so this shows the proposed uh uh implementation schedule for all three housing types. And in year four, uh it would res it would uh kick into the multi or the maximum amount of or the recommended amount

35:44of $12,328, $6,389 at multifamily, and $64.77 for the mobile home units. And with that, I'm happy to uh answer any questions that you may have about the study.

35:58Any questions for the board?

36:02I just want to see the slide again where it um had the different cost per square foot for the different locations because I missed that one.

36:11Hopefully I'll kick back in here. Nope. Sorry. Okay, thank you. Thank you.

36:21Yeah, it should be about five back, I think. Uh next one. No, no, go by the other way. There you go. Is this the slide you're referring to?

36:33Yeah.

36:36Just curious, why why why is it such a big price difference?

36:41between

36:42but like when you take the two ninety four the four ninety

36:45right right and and uh I may beg assistance from staff but uh in our experience it's cheaper to to build a complete school because you've got a bigger footprint and it also includes you know the the athletic complexes those facilities where if you're doing an an addition it's a more com it's a more concentrated uh effort and it doesn't have those other elements that sort of bring down the weighted cost per per square foot. So typically additions tend to be more per square foot in our experience than

37:15an entire school.

37:18Thank you

37:18for the presentation.

37:20Any

37:20other questions?

37:22Thank you Chairman Mariano the the housing stock breakdown rates please

37:28You mean the student generation?

37:30No, the multifam, residential single fam and the last one? Mobile.

37:33It was close to land.

37:35The rates or the actual.

37:37So Is there a way to bump multifamily and decrease single family? And I say that because Live Local Act's looming out there. And it'll be there for a while. And I

37:55I'm kind of of the of the mindset if Live Local Act is gonna be hanging over our head that we we bump these impact fee for all the multifamily product. We offset it. with the single family I I I'm generally I'm gonna speak gener generally a big picture of our overall impact fee. We keep pushing single family impact fee and increasing them to what they are uh I'm just it goes back to the affordability of the of of the single family

38:25home and having families being able to afford a home and the potential erosion of the single family home ownership value that we all, I think in this room share. That's kind of a A a a a tough one there. So is there a way to bump the multifamily and decrease the single family? Mr. Chairman Mariano is

38:49complicated. Yes.

38:53Yes, sir. Um no. Lifeline. Um the the problem is that the law with regard to impact fee and I'll let uh Mr. Bice elaborate a little bit, is that you have to treat all types equally. So he's done an in an an analysis. He has generated fees based on the impact of what those types of units generate. And so you while

39:24you could lower them all At the same, you know, you could you could do eighty-five percent of value of of what the study showed. You can do a hundred percent. Then you have the state statute that kicks in, but you can't charge multifamily more to make up a decrease you want to have in single family. It that that will create a challenge point

39:54for your impact fee as a whole, and uh it would not be my legal advice to do something like that.

40:01But you're saying we can't is what I'm kinda hearing. You you advise not to.

40:05No. My You can, you'll be challenged, you'll lose.

40:12There's your choice. I mean that that when I say I advise it, that means that I don't think that there's a way that we can defend you on it. Um you can lower them all proportionally But then that's not gonna get the school district the amount of money that they have budgeted for their for uh their school construction. But you have to when you do that you've gotta do

40:42them all at the same percentage. You can't pick and choose.

40:48Hmm.

40:49And we

40:49can't legally justify higher fees for multifamily mobile home. The number does I mean the the study doesn't support the money.

40:58Mr. Chairman Mari So one thing that could be a factor though that would you could justify if a apartment complex comes in and gets a seventy five percent tax break, you can justify there's a difference of What what the cost is that project coming in? So it may not have happened yet with one, but if one does come in, I think we should be able to... Find try to find a trigger for that, because it is a risky situation that's out there right now.

41:27Only if the school board is using taxes for construction.

41:32It it would not you might be able to make that argument. But the dollars they are collecting for operations wouldn't be wouldn't be appropriate for impact fee anyway. So I you'd have to do You have to do a balancing of the construction dollars that their millage is going to.

41:54Agreed. So can you figure out how much construction dollars are going toward? the schools based upon this. It's

42:04gotta be a party factor in there in those conversations. That's that would vary on a case by case basis as well.

42:10Yeah. Mr. Gad said he wanted you to earn it today.

42:14And you've already credited the c the capital improvement millage within the fee study itself also. Or to discounted the fee based on that fee for streaming revenue.

42:29I I have a question on the multifamily. Um multifamily is apartments, townhomes, garden homes?

42:37Town home technically is a single family attached unit. So single family was detached an attached unit, so a town home would be part of that.

42:45Oh interesting.

42:45Yeah. So it's duplexes, apartments. Condominiums because condominiums are technically a

42:51duplex is a

42:52multifamily.

42:53But an attached townhome which

42:56has

42:56to

42:56do not have a duplex. Has to do with the census definition and whether they share a common of wall or not. And your ordinance will define the different types of park towns are flat. Yeah.

43:07So uh and on a on multifamily, do we distinguish between studio and three bedroom or is it averaged out?

43:17The average the average unit size or the average unit.

43:21So you take you add up how many three bedrooms there are and how many students. It doesn't matter

43:26if it's one bedroom or three bedrooms, it's the same rate for the student.

43:29Well how legally they get away with that? Because the studio is probably doesn't have any kids where a three bedroom does. So legally how do you

43:36justify it? There is no problem uh legally. It's it's more of a you know the courts fall on the reasonableness test and some jurisdictions t choose to to do impact fees by size of home or number of bedrooms. Some choose to do the traditional single family versus multifamily versus mobile home. So fees are done both ways. It's just a matter of preference.

44:01Mr. Chairman Mariano. Yes. So to try to dissect this would be really tough. To try to fight it would be even tougher. Probably take more time and money. I think the key would be that we we unite with the school board to go fight this live local in the future.

44:15I was just trying to get educated. Uh well I would say that um I think I haven't received one letter, one call from anybody, uh in opposition to this. Um I think we have a great working relationship with our school board, unlike some others. And um I I like the way that this is broken out in four years and I think, you know, the work's been done for us and I think we should move for approval. Mr. Chairman Mariano for the I'll

44:45move I'll second for the

44:46more discussion.

44:49There's no action today.

44:50Oh no action today?

44:52No, there's action today. No, there is action, but you gotta wait. Okay.

44:55Well their chair wants to speak and then we have public comments. Thank you. I appreciate it. Good afternoon, as mentioned. I am Megan Harding. I do serve as the Chair of the Pasco County School Board. We are very grateful for all the support you have given us in the past, and I appreciate you allowing and giving me the time to speak this afternoon. This afternoon I wanted to take a few moments and make some comments on the impact fee proposal. This increase will assist us in keeping up with the construction costs in our ever-growing school district, and as you know our county is growing at a very rapid rate, so this would assist us in that. The impact fee will also allow the

45:25school district to balance new schools to support new growth while allowing us to renovate our existing school with penny funds. Both of these are equally important. The Planning Commission voted unanimously to support this proposal as well, and we're very grateful for that. The board wanted to take a moment to thank the Tampa Bay Builders Association for their support and strong stance that good schools build good communities. We have worked together with the Phase and Approach over four years so there is not a huge jump all at once. Again, on behalf of the County County on behalf of the Pasco County School Board, we appreciate your support so we can

45:55continue to serve our communities and provide the world-class education that all our students in our community deserve. Thanks.

46:00Okay, thank you. And this is a public hearing. Does anyone else in the audience wish to speak to this item today? And there's no action required today on this item.

46:13This is your first of two public hearing. It looks like from I'll have to get Terry or somebody to confirm. It looks like your second hearing is on August twenty first. twenty twenty four at New in New Port Richey at one thirty or soon thereafter is

46:32Mr. Chairman? Yes. Just a one further point. The the key to this is not it's not a tax on people living here, it's a tax on keep people coming in, so it's making growth pay for itself. Right.

46:43It's kinda like our we're buying new homes that's on those properties, so as we grow.

46:50Okay. Um anything else from the board?

46:56No action is required. No one come forward to speak. Anybody on Webex to speak to Sir?

47:01No, sir.