Orange County Government

Work SessionApril 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 CoxChristine BramuchiSean Murphy

BCC 3 Members Miranda FitzgeraldEric MarksDotti 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

Constructio

n Co

st per Gross Squ

are Foot

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

Constructio

n Co

st per Gross Squ

are Foot

All School Types ‐ Construction Cost/GSF TrendAll 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

ComponentValue 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

Component2011 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 CostNet 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%

Townhouse0.259

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

PercentChange

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