MARION COUNTY Transportation Impact Fees and Funding March

MARION COUNTY Transportation Impact Fees and Funding March 24, 2015

Presentation Overview 2 1 Background/Purpose 2 Methodology 3 Findings of Technical Study 4 Next Steps

Background History of Transportation Impact Fee in Marion County: • Implemented in 1990 • Last update in 2007 • Suspension since 2010 • Changes in cost and funding since 2006/07 3

Background Impact Fee Definition: • One-time capital charge to new development • Covers the cost of new capital facility capacity • Implements the CIE and CIP 4

Background Why Impact Fees? • Maintain Level-of-Service Standards (LOS) • Calculate cost of growth • Potential large developments • Most needed when: ü High growth ü Limited funding 5

Background Transportation Impact Fees • Roadway-based • Multimodal approach in the Cities requires a minimum of: ü City’s Comprehensive Plan to include mobility goals/strategies ü A Capital Plan for bicycle lanes and sidewalks ü A map of local collector roads as wells bicycle lanes 6 and sidewalks

Background Population Growth Rate Trend; 3 -year Average (1970 -2040) 9, 00% Marion County State of Florida 8, 00% 7, 00% 6, 00% Major Infrastructure Investment 5, 00% 4, 00% Marion County +155 k from 2013 -2040 1. 4% Avg Annual Growth Infrastructure is 30 years old 3, 00% 2, 00% Florida 1, 00% +6. 3 M from 2013 -2040 1. 1% Avg Annual Growth 0, 00% Source: BEBR; Medium-Level 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2020 2025 2030 2035 2040 -1, 00% 1970 7 1980 1990 2000 2010 2040

Background * * Marion Avg. Annual Population Growth 1980 -2007 -2014 = Fee in Place & Collected (27) ≈ 2. 9% ≈ 0. 7% = Fee in Place, but Suspended ≈ 2. 8% ≈ 0. 5% ≈ 1. 9% ≈ 0. 6% /Moratorium (15) = No Transp. Impact Fee (23) *Information was unavailable (2) 8

Background Trend in Construction Costs: 300% 250% Last Marion TIF Update 200% 150% 100% 50% 0% -50% 91 992 993 994 995 996 997 998 999 000 001 002 003 004 005 006 007 008 009 010 011 012 013 014 1 2 1 1 1 1 2 2 2 2 19 9 Source: FDOT Long Range Estimates

Background Marion County Capacity Needs • Interchanges ü NW 49 th St Interchange ü SW 95 th St Interchange • Road Expansion ü SR 200 from CR 484 to County Line ü NE 36 th Ave from SR 492 to NE 35 th St ü NE 25 th Ave from SR 492 to NE 35 th St ü NE 35 th St from W. Anthony Rd to NE 36 th Ave • New Roads ü SW 44 th Ave from SR 200 to SW 20 th St ü SW 49 th Ave from SW 95 th St to SW 42 nd St ü NW 44 th Ave from SR 40 to NW 11 th St ü Emerald Road Ext. from SE 92 nd Loop Rd to Emerald Trace 10

Presentation Overview 11 1 Background/Purpose 2 Methodology 3 Findings of Technical Study 4 Next Steps

Methodology Transportation Impact Fee Variables: • Demand Component • Trip Generation Rate, Trip Length, % New Trips • Cost Component • County and State Roads, Roadway Capacity • Credit Component • Non-impact fee roadway capacity expenditures 12

Methodology Basic Impact Fee Formula: Net Impact Fee = (Cost – Credit) x Demand Cost to Add Roadway Capacity 13 Non-Impact Fee Revenue from Future Development VMT

Transportation Impact Cost Single Family Home One Lane Mile ~$3. 1 M ÷ Capacity ~8, 800 = Vehicle mile of capacity ~$355 Total Credit ~$2, 300 Fee ~ $7, 000 Total Impact Cost ~ $9, 300 Capacity Consumed by One Home 14 = 26 miles of daily travel X

Presentation Overview 15 1 Background/Purpose 2 Methodology 3 Findings of Technical Study 4 Next Steps

Findings of Technical Study Demand Component: • Sources: • National ITE Reference • Florida Studies Database • Demand Calculation: • Trip Gen. Rate x Trip Length x % New Trips 16

Findings of Technical Study Demand per Unit of Development: • Trip Gen. Rate = Number per day • Trip Length = Travel A to B • % New Trips = Accounts for trips already on the roadway • Interstate/Toll Discount = Accounts for interstate & toll trips (not charged) 17

Findings of Technical Study Single Family Residential (2, 000 sq ft) Example: • Trip Gen. Rate = 7. 81 • Trip Length = 7. 61 • % New Trips = 100% • Interstate/Toll Discount = 12. 0% (7. 81 * 7. 61 * 100% / 2)*(1 -12. 0%) = 26. 15 18

Findings of Technical Study Cost Component: • Sources • Local roadway improvements • Recent new construction/lane addition projects throughout Florida • FDOT Long Range Estimates (LRE) 19

Findings of Technical Study Cost Component: • Local Improvements • NW 60 th Ave from SR 200 to SR 40 (FY 2006) • CR 464 (Ph. I) from Oak Rd to Locust Rd (FY 2007) • CR 200 A from US 441 to NE 35 th St (FY 2009) • NW 44 th Ave from US 27 to NW 60 th St (FY 2009) • SE 31 st St from SE 19 th Ave to SR 464 (FY 2009) • SW 110 th St from US 41 to SW 200 th Ave (FY 2013) • NW 35 th St from NW 35 th Avenue Rd to US 441 (FY 2013) • NW/NE 35 th St (Ph. 1 a) from US 441 to W. of Anthony Rd (FY 2016) 20

Findings of Technical Study County Roadway Construction Cost Trend (Urban Design) $4 500 000 $4 000 $3 500 000 $3 000 $2 500 000 $2 000 $1 500 000 $1 000 County Rd Cost Estimate for IF Calculation County Road Bids in Marion $500 000 $0 2005 2006 2007 2008 County Bids 21 2009 2010 County Rd Costs in D 5 2011 2012 2013 Marion Bid/Estimates 2014 2015 2016

Findings of Technical Study State Roadway Construction Cost Trend (Urban Design) $7 000 $6 000 $5 000 State Rd Cost Estimate for IF Calculation $4 000 $3 000 $2 000 $1 000 State Road Bids in Marion $0 2005 2006 2007 2008 State Bids 22 2009 2010 D 5 Bids Only 2011 Marion Bids 2012 2013 2014 2015

Findings of Technical Study Estimated Cost per Lane Mile County Roads State Roads County and State Roads $167, 000 $227, 000 $184, 000 Right-of-Way $1, 000 $1, 236, 000 $1, 069, 000 Construction $1, 668, 000 $2, 060, 000 $1, 782, 000 $50, 000 $227, 000 $101, 000 $2, 886, 000 $3, 750, 000 $3, 136, 000 71% 29% 100% Phase Design CEI Total Lane Mile Distribution* *Based on most recent LRTP Cost Affordable Plan 23

Findings of Technical Study Credit Component: $. 01 penny 1 CENT GAS TAX PER GALLON 24

Findings of Technical Study Credit Component: • Revenue Sources • State funding = $462. 5 million (FY 2006 -2020) • County funding • Non-impact fee = $57. 3 million (FY 2005 -2019) • Fuel tax bonds = $72. 7 million (15 yrs remaining) • Non-impact fees funding • This is NOT a developer credit for construction 25

Findings of Technical Study Credit Component – Transportation Funding • State tax indexed • Local tax not indexed • Other revenues are indexed 26

Findings of Technical Study Decrease in Value of 1¢ of Fuel Tax 1, 20 State 1, 00 ≈ -30% Pennies 0, 80 Fuel Efficiency 0, 60 7% 7. ca Lo 0, 40 l ≈ -90% 0, 20 5. 5% Fuel Efficiency & Inflation 3. 0% 0, 00 60 962 964 966 968 970 972 974 976 978 980 982 984 986 988 990 992 994 996 998 000 002 004 006 008 010 012 1 1 2 2 1 1 1 1 2 2 2 1 19 27

Findings of Technical Study Land Use Changes: • Created tiers for Single Family based on sq. ft. • Less than 1, 500 sf • 1, 501 to 2, 499 sf • 2, 500 sf and greater • Created “per bed” fee for Assisted Living Facilities • Created separate Office & Retail categories • Created “small retail” tier (<6, 000 s f) • Created an office/retail mixed use land use • 25% office, 75% retail weighting 28

Findings of Technical Study Land Use Changes: • Consolidation of several “Restaurant” land uses • Quality Restaurant • High-Turnover Restaurant Collapsed into single “Restaurant” land use • Fast Food w/Drive-Thru • Addition of “Small Local Restaurant” land use • Applied to “mom & pop” type restaurants • Non-franchise, fewer hours of operation 29

Findings of Technical Study Transportation Impact Fee Rate Comparison Ø Marion County Timeline Land Use Unit Full Calculated Adopted Full Calculated Study Date - 2006 2007 2015 Percentage - 100% 57. 6% 100% Du $5, 143 $10, 588 $6, 099 $6, 994 Light Industrial 1, 000 sf $3, 102 $3, 682 $2, 121 $4, 048 Office (50 k) 1, 000 sf $8, 364 $3, 519 $2, 027 $6, 391 Retail (125 k) 1, 000 sf $6, 263 $2, 718 $1, 565 $9, 592 Bank (Drive In) 1, 000 sf $29, 540 $12, 805 $7, 376 $21, 367 Restaurant 1, 000 sf $20, 070 $8, 694 $5, 007 $26, 502 Single Family 30

Findings of Technical Study Transportation Impact Fee Rate Comparison Ø 100% Calculated Impact fee Rates Land Use Unit Marion* Marion Levy Citrus* Sumter Lake Study Date - 2007 2015 2005 2010 2008 2013 Adoption % - 100% 100% Du $10, 588 $6, 994 $1, 046 $3, 970 $5, 200 $3, 867 Light Industrial 1, 000 sf $3, 682 $4, 048 $709 $1, 255 $3, 167 $2, 151 Office (50 k) 1, 000 sf $2, 888 $6, 391 $995 $3, 605 $7, 182 $3, 748 Retail (125 k) 1, 000 sf $2, 716 $9, 592 $1, 710 $2, 973 $7, 273 $4, 401 Bank (Drive In) 1, 000 sf $12, 805 $21, 367 $3, 436 $2, 973 $17, 056 $4, 401 Restaurant 1, 000 sf $8, 694 $26, 502 $2, 683 $2, 973 $21, 074 $4, 401 Single Family *Fees currently suspended 31

Findings of Technical Study Transportation Impact Fee Rate Comparison Ø 100% Calculated Impact Fee Rates Land Use Unit Marion* Marion Volusia Alachua Polk* Study Date - 2007 2015 2003 2007 2009 Adoption % - 100% 100% Du $10, 588 $6, 994 $2, 653 $4, 878 $4, 895 Light Industrial 1, 000 sf $3, 682 $4, 048 $1, 500 $3, 362 $675 Office (50 k) 1, 000 sf $2, 888 $6, 391 $2, 830 $5, 030 $5, 310 Retail (125 k) 1, 000 sf $2, 716 $9, 592 $3, 770 $7, 132 $6, 754 Bank (Drive In) 1, 000 sf $12, 805 $21, 367 $13, 430 $15, 776 $14, 377 Restaurant 1, 000 sf $8, 694 $26, 502 $9, 910 $20, 345 $22, 861 Single Family *Fees currently suspended 32

Findings of Technical Study Transportation Impact Fee Rate Comparison Ø Adopted Impact Fee Rates Land Use Unit Marion* Marion Levy Citrus* Sumter Lake Study Date - 2007 2015 2005 2010 2008 2013 Adoption % - 57. 6% 100% 50% 70% Du $6, 099 $6, 994 $1, 046 $1, 985 $2, 600 $2, 706 Light Industrial 1, 000 sf $2, 121 $4, 048 $709 $628 $1, 584 $1, 505 Office (50 k) 1, 000 sf $2, 027 $6, 391 $995 $1, 803 $3, 591 $2, 623 Retail (125 k) 1, 000 sf $1, 565 $9, 592 $1, 710 $1, 487 $3, 637 $3, 080 Bank (Drive In) 1, 000 sf $7, 376 $21, 367 $3, 436 $1, 487 $8, 528 $3, 080 Restaurant 1, 000 sf $5, 007 $26, 502 $2, 683 $1, 487 $10, 537 $3, 080 Single Family *Fees currently suspended 33

Findings of Technical Study Transportation Impact Fee Rate Comparison Ø Adopted Impact Fee Rates Land Use Unit Marion* Marion Volusia Alachua Polk* Study Date - 2007 2015 2003 2007 2009 Adoption % - 57. 6% 100% 68% 85% 100% Du $6, 099 $6, 994 $2, 174 $4, 146 $4, 895 Light Industrial 1, 000 sf $2, 121 $4, 048 $1, 220 $2, 857 $675 Office (50 k) 1, 000 sf $2, 027 $6, 391 $2, 310 $4, 275 $5, 310 Retail (125 k) 1, 000 sf $1, 565 $9, 592 $3, 080 $6, 062 $6, 754 Bank (Drive In) 1, 000 sf $7, 376 $21, 367 $10, 960 $13, 409 $14, 377 Restaurant 1, 000 sf $5, 007 $26, 502 $8, 090 $17, 293 $22, 861 Single Family *Fees currently suspended 34

Findings of Technical Study Economic Growth Strategy • Calculated based on: • Rate of growth • Available non-impact fee funding • By area and/or land use 35

Economic Growth Strategy 140% 120% Impact Fee Rate / Percentage New Growth Credit/Future Tax Revenues 100% 10% 40% 80% Roadway Capacity Level-of-Service 60% - Facility Needs - Economic Needs - Land Use Needs Revenues from Existing Residents (for transportation capacity) 40% Total Cost 20% Maximum Impact Fee Roadway Capacity LOS Annual Growth Rate 0% 0% 36 1% 2% 3% 4% 5% 6% Avg. Annual Growth Rate 7% 8% 9% 10%

Findings of Technical Study Economic Growth Strategy (County ONLY) 120% Impact Fee Rate Percentage 100% 80% 95% 60% 40% Total Cost Maximum Impact Fee 20% Marion County Projected Annual Growth Rate (1. 8%) 0% 0, 0% 37 1, 0% 2, 0% 3, 0% 4, 0% 5, 0% 6, 0% Avg. Annual Growth Rate Roadway Capacity LOS 7, 0% 8, 0% 9, 0% 10, 0%

Findings of Technical Study Economic Growth Strategy (County ONLY) • Option 1: Countywide discount of 5% • All land uses adopted at 95% of calculated rates • Option 2: Targeted Uses • Residential land uses adopted at 100% of calculated rates • Non-residential land uses adopted at 85% of calculated rates 38

Findings of Technical Study Economic Growth Strategy Impact Fee Rate Comparison Ø County ONLY Land Use Unit Marion (Calculated) Marion (Option 1) Marion (Option 2) Study Date - 2015 Adoption % - 100% 95% 85 -100% Du $6, 994 $6, 644 $6, 994 Light Industrial 1, 000 sf $4, 048 $3, 846 $3, 441 Office (50 k) 1, 000 sf $6, 391 $6, 071 $5, 432 Small Retail (6 k) 1, 000 sf $4, 177 $3, 968 $3, 550 Retail (125 k) 1, 000 sf $9, 592 $9, 112 $8, 153 Small Restaurant 1, 000 sf $12, 668 $12, 035 $10, 768 Restaurant 1, 000 sf $26, 502 $25, 177 $22, 527 Single Family 39

Findings of Technical Study Economic Growth Strategy (County & State) 140% Impact Fee Rate Percentage 120% 100% 80% 70% 60% 40% Total Cost Maximum Impact Fee 20% 0% 0, 0% Marion County Projected Annual Growth Rate (1. 8%) 1, 0% 2, 0% 3, 0% 4, 0% Roadway Capacity LOS 5, 0% Avg. Annual Growth Rate 40 6, 0% 7, 0% 8, 0% 9, 0% 10, 0%

Findings of Technical Study Economic Growth Strategy (County & State) • Option 1: Countywide discount of 30% • All land uses adopted at 70% of calculated rates • Option 2: Targeted Uses • Residential land uses adopted at 100% of calculated rates • Non-residential land uses adopted at 20% of calculated rates 41

Findings of Technical Study Economic Growth Strategy Impact Fee Rate Comparison Ø County & State Land Use Unit Marion (Calculated) Marion (Option 1) Marion (Option 2) Study Date - 2015 Adoption % - 100% 70% 20 -100% Du $6, 994 $4, 896 $6, 994 Light Industrial 1, 000 sf $4, 048 $2, 834 $810 Office (50 k) 1, 000 sf $6, 391 $4, 474 $1, 278 Small Retail (6 k) 1, 000 sf $4, 177 $2, 924 $835 Retail (125 k) 1, 000 sf $9, 592 $6, 714 $1, 918 Small Restaurant 1, 000 sf $12, 668 $8, 868 $2, 534 Restaurant 1, 000 sf $26, 502 $18, 551 $5, 300 Single Family 42

Findings of Technical Study Existing Benefit Districts Proposed Benefit Districts 1 1 4 43 2 2 3 Preservation Land

Presentation Overview 44 1 Background/Purpose 2 Methodology 3 Findings of Technical Study 4 Next Steps

Next Steps: • Input from the BOCC • Submittal of Final Report – April 2015 • Public Hearing – June 2015 45

Questions? Thank You 46