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0 <br />The final alternative is to adopt the proposed amendment -with changes. Any changes supported by <br />adequate data and analysis would be appropriate and should be considered. <br />POLICY ISSUE <br />Besides the general alternatives identified above, there is one other alternative/policy issue. This <br />relates to a proposition brought up by the Treasure Coast Builders Association (TCBA). <br />During the MPO's consideration of this issue, the TCBA proposed that the County eliminate traffic <br />impact fees or reduce traffic impact fees and make up the lost traffic impact fee revenue by <br />increasing local option gas taxes. <br />Based upon state law, Indian River County has the legal authority to impose six additional cents (6 <br />additional pennies per gallon) of local option gas tax. This would be in addition to the six cents of <br />local option gas tax which the County currently imposes. <br />Currently, each cent of local option gas tax yields approximately $450,000 per year. Consequently, <br />an additional six cents of local option gas tax would:generate about $2.7 million per year in revenue. <br />That amount would exceed the current annual yield of the traffic impact fee. In fact, imposing only <br />five additional local option pennies per gallon would generate sufficient revenue to replace the traffic <br />impact fee. <br />Eliminating traffic impact fees and replacing them with local option gas taxes would represent a <br />major policy shift. Currently, the county's policy is that new development should pay for itself. <br />Using local option gas tax to fund transportation capital improvements, and therefore eliminate <br />traffic impact fees, would shift the financial responsibility from new development to the users of the <br />transportation infrastructure. This shift would require not only new residents of Indian River <br />County, but also existing residents of Indian River County to pay for transportation improvements <br />necessitated by new development. This shift in financial responsibility would increase the cost of <br />transportation for all residents of the county, including low income households. <br />By imposing additional local option gas taxes and reducing or eliminating traffic impact fees, a fee <br />now paid by those undertaking new construction would instead be paid as a tax applicable to <br />everyone. Staff does not support the proposal to replace traffic impact fees with local option gas <br />taxes. <br />RECOMMENDATIONS <br />Staff, the MPO, the PSAC, and the Planning and Zoning Commission recommend that the Board <br />of County Commissioners adopt the revised Traffic Impact Fee Ordinance (Chapter 953 of the <br />LDRs) and Development Policies which are attached to this staff report. <br />ATTACHMENTS <br />1. Final Report: Update of the Fairshare Roadway Impact Fee Ordinance. (On file at the BCC <br />Office) <br />2. Revised Chapter 953; Fairshare Roadway Improvements. (On file at the BCC Office) <br />3. Fairshare Roadway Improvements Development Policies. <br />4. Indian River County Traffic Impact Fee Capital Improvement Program FY 1999/2000 _ <br />2003/04 <br />5. Unapproved minutes of the April 22, 1999, Planning and Zoning Commission Meeting. <br />6• Current traffic impact fee payment schedule and benefit districts. <br />7. Adoption ordinance for revised Chapter 953; Fairshare Roadway Improvements of the county <br />LDRs. <br />MAY 119 1999 <br />33 <br />• <br />BOOK PAGE' <br />