Staff recommends approving the agreement with Lake County for Impact Fee Administrative Charges.
On December 11, 2007 Lake County amended Chapter 22 of the Lake County Code related to Impact Fees. Ordinance 2007-60 amended the County’s Impact Fee Schedule, certain definitions that were unused, and clarified the legislative intent of the Administrative Fee for the collection of Impact Fees.
In 2006 the Legislature amended the statute to define the Administrative Fee as a charge over and above the amount of the Impact Fee. Lake County Ordinance 2007-60 amended this language in the Lake County Code. As a result of the amended language, the County was obliged to renegotiate the Interlocal Agreements with all of the Lake County municipalities to provide for this change.
The new Administrative Fee will be 3% of the total of all Lake County Impact Fees, or a maximum of $100. If a municipality determines their costs of collecting the impact fees are greater than this amount, then the local government is obliged to enact a separate Administrative Fee that may not exceed 5% of the total impact fees collected.
An option does exist to reject this agreement, however this would force all of the City of Leesburg’s building permit customers to make an additional trip to the County Administrative Offices to pay their impact fees before applying for their City building or development permits. This would result in additional costs in time and travel for these customers, not reduce or eliminate the administrative fee, and provide a less than acceptable level of customer service for the citizens and customers of the City of Leesburg.
1. Approve the Agreement; or
2. Such alternative action as the Commission may deem appropriate
The Finance department has conducted an analysis of the City’s costs to collect Lake County Impact Fees and has determined the City’s costs do not exceed $100 transaction to collect and process payment to the County.
The Finance department performed an analysis of the financial impact of this new requirement on the expected revenues to the Building Division. In fiscal year 2006-07 the division collected $1,586,703.10 in Lake County Impact fees which yielded a revenue of $47,601.09. Under the new scenario revenues would have been $30,192.37, a reduction in this income stream of ($17,408.72).
In the current fiscal year we have so far collected $964,261.07 in Lake County Impact Fees, which has yielded revenues of $28,927.83. Under the new Administrative Fee Schedule, revenues to date would have been $8,500.00, a reduction in revenue of ($20,427.83).
Prepared by: EF Smyth, DCM
Attachments: Yes X No ______
Advertised: Not Required ______
Attorney Review : Yes X No ____
Reviewed by: Dept. Head ________
Finance Dept. ____JB____________
Deputy C.M. ___________________
City Manager ___________________
Account No. _________________
Project No. ___________________
WF No. ______________________
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN INTERLOCAL AGREEMENT BETWEEN LAKE COUNTY AND THE CITY OF LEESBURG; AND PROVIDING AND EFFECTIVE DATE.
BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:
THAT the Mayor and City Clerk are hereby authorized to execute an Interlocal Agreement with Lake County, whose address is P.O. Box 7800, Tavares, FL 32778, for the collection of Lake County Impact Fees and the associated administrative fees.
THAT this resolution shall become effective immediately.
PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the 10th day of March, 2008