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• The BCC may establish a policy that pays the calculated impact fees from `•+�' revenue sources other than impact fees . • If the County exempts particular land uses or development projects from the fee requirement and does not reimburse the affected impact fee accounts with non- impact fee revenues, the ordinance may be rendered ineffective as a mechanism for funding capital improvements necessary to serve new development and may be subject to legal liabilities . Updating the Impact Fee Program and Indexing the Fees • Typically, impact fees are updated every three years to ensure that development continues to pay a fee that is proportionate to its impact and receives a proportionate benefit to the fee paid . • Indexing is a method used to adjust the impact fee on an annual basis between periodic updates . Indexing of impact fees is becoming increasingly popular as a way to avoid significant increases when fees are subsequently updated . o Indexes must reflect cost increases that the County can reasonably expect to incur in the provision of needed capital facilities and be consistent with the underlying impact fee methodology . o Common indexes include the Consumer Price Index, local property appraiser records , and publications such as the Engineering News Record (ENR) construction cost index . Appeals Process • Typically, provisions for appeals of impact fee decisions made by staff, the County Administrator, and the BCC must be defined in the ordinance or through existing County procedures . • The approach used by many jurisdictions is similar to the appeal process contained in the County ' s current Traffic Impact Fee Ordinance , as summarized below . o The County Administrator or designee shall have the right to accept or reject the decision made by staff concerning an impact fee ; and o Final appeal of the County Administrator' s decision shall be made to the BCC . LOS STANDARDS AND FEE REVIEW Current LOS and adopted LOS standards in IRC were reviewed for each facility service category being considered in the impact fee study . In addition, performance standards from impact fees in other Florida counties were compiled and reviewed for comparative purposes . Summary data from this review of LOS standards and fees are provided in Tables 1 -2 and I -31 Table I-2 provides the current LOS in IRC , the adopted LOS standard in IRC (if any) , and the recommended LOS standard for each program area . �•nI" Tindale -Oliver & Associates, Inc . Indian River County February 2005 I- 10 Impact Fee Study