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Indian River County 1 Impact Fee Update Study • Methodology • • The methodology used to update the County's impact fee program is a consumption -based impact fee methodology, which is used throughout Florida. A consumption -based impact fee charges new development based upon the burden placed on services from each land use (demand). The demand component is measured in terms of population per unit of land use in the case of all impact fee program areas with the exception of educational facilities and transportation. In the case educational facilities, studentgeneration rate is used and in the case of transportation, vehicle -miles of travel is used.`,A-�consumption-based impact fee - charges new growth the proportionate share of the=`scost of providing additional infrastructure available for use by new growth. In addition, per -legal requirements, a credit is subtracted from the total cost to account for "contributions,of,the new development toward any capacity expansion projects through" other revenue sources:. Contributions used to calculate the credit component include estimates of future non -impact fee revenues generated by the new development_ that will be used toward capacity expansion projects. In other words, case law requires,that:the new development should not be charged twice for the same service. Legal Standard Overview In Florida, legal requirements \ related to impact fees have primarily been established through case-law since the`1980's. Generally speaking, impact fees must comply with the "dual rational nexus"" test, which requires that they: • 'Be supported by a'study demonstrating that the fees are proportionate in amount to the need,created by new development paying the fee; and • Be speiitriii.a manner- that directs a proportionate benefit to new development, typically accomplished through a list of capacity -adding projects included in the County's Capita! improvement Plan, Capital Improvement Element, or another planning document%Master Plan. In 2006, the Florida legislature passed the "Florida Impact Fee Act," which recognized impact fees as "an outgrowth of home rule power of a local government to provide certain services within its jurisdiction." § 163.31801(2), Fla. Stat. The statute — concerned with mostly procedural and methodological limitations — did not expressly allow or disallow any particular public facility type from being funded with impact fees. The Act did specify Tindale -Oliver & Associates, Inc. Indian River County January 2014 2 Impact Fee Update Study