Item 8CAGENDA ITEM # 8C
JiJNE 14, 2010
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: Request from Beaches Habitat for Humanity to Keep Impact Fees at Pre-Increase
Levels
SUBMITTED BY: Donna Kaluzniak, Utility Direc r
DATE: June 3, 2010
BACKGROUND: The City charges water and sewer impact and capital improvement fees, or System
Development Charges (SDCs) when customers build new homes or businesses. SDCs cover the cost to
provide facilities for new connections and capacity increases, such as upgraded treatment plants and
distribution/collection lines.
In 2008, the City hired HDR Engineering to complete a study to update the City's system development
charges in accordance with regulatory requirements. Past changes in these rates were made in 1983 and
1992, and were not based on engineering analysis; therefore there was a significant increase in the new fees.
The Commission adopted an ordinance putting the new rates into effect in December 2008.
Beaches Habitat for Humanity has requested the City allow them to pay the previous System Development
Charges for any new housing units. Beaches Habitat provides housing for low income families whose total
income falls between 30 to 60% of the adjusted median income, and paying the previous impact fee rates
would help them lower the costs of each unit.
BUDGET: A comparison of SDCs for typical Beaches Habitat homes before and after the December 2008
rate increase is shown below.
Water SDC Sewer SDC Total
Current Fees $1,140 $4,050 $5,190
Before December 2008 $ 815 $1,250 $2,065
Chan a $325 $2,800 $3,125
The budget impact of approving Beaches Habitat's request to be charged at the previous SDC rates is
unknown, as staff is not aware of how many homes they plan to build in the future.
There are 18 units that Beaches Habitat's engineers have indicated are in the preliminary or design phase,
which would amount to a reduction of $56,250 in SDC revenues to the City should their request be approved.
RECOMMENDATION: Make a decision on whether to allow Beaches Habitat for Humanity to be
charged System Development Charges (impact fees) at the amounts that were in place prior to the December
2008 increase and direct staff accordingly.
ATTACHMENTS: 1. Letter from Beaches Habitat for Humanity dated May 26, 2010.
REVIEWED BY CITY
AGENDA ITEM # 8C
JiJNE 14, 2010
,:.,ffi.. 4w~,.~ ^...
'~'' m ni °
~r Habitat for Hu a t
f, y
May 26th, 2010
Jim Hanson
City Manager
City of Atlantic Beach
800 Seminole Road
Atlantic Beach FL. 32233
Dear Mr. Hanson,
The board has asked me to come back to the city and discuss an alternative
solution to the increase in impact fees for new construction.
At present, we are the only low income housing builder working in the city of
Atlantic Beach as well as the other portions of Jacksonville east of the
intercoastal and served by Atlantic Beach for water and sewer connections. The
market we serve is homeowners whose total income currently falls between 30 to
60% of adjusted median income (AMI) the highest income allowable for a family
of four is $39,060. We request the city to
• Keep our impact fees at pre-increase levels or approximately $2,400 per
dwelling unit.
• Limit the parties eligible for this reduction to those developers who serve the
low income community as described above. Beaches Habitat can provide
documented financial information #o support the new homeowner's income.
I understand your concerns about a low income apartment developer requesting
the same consideration. However, given the cost of low income apartments,
($1,000 per month), they would not be able to meet these income standards that
Habitat uses and is committed to.
Would be happy to discuss further with you.
alph M rcello
Executive Director
P.O. Box 50939 Jacksonville Beach, FL 32240. Office: (904) 241-1222 • Fax: (904) 241-4310
www.beacheshabitat.org