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CCPC Agenda 09/21/2009 S CCPC SPECIAL MEETING AGENDA SEPTEMBER 21, 2009 AUlR2009 SPECIAL MEETING AGENDA COLLIER COUNTY PLANNING COMMISSION AND COLLIER COUNTY PRODUC11VITY COMMl1TEE WILL MEET AT 8:30 A.M.. on Mooday, September 21, 2009, AT COMMUNITY DEVELOPMENT &: ENVIRONMENTAL SERVICES DNISION, CONFERENCE ROOMS 609/610, 2800 N. HORSESHOE DRIVE, NAPLES, FLORIDA 34104: 1mlE;. INDIVIDUAL SPEAKERS WILL BE LIMITED TO 5 MINUTES ON ANY ITEM. INDIVIDUALS SELECTED TO SPEAK ON BEHALF OF AN ORGANIZATION OR GROUP ARE ENCOURAGED AND MAY BE ALLO'ITED 10 MINUTES TO SPEAK ON AN ITEM IF SO RECOGNIZED BY THE CHAIRMAN. PERSONS WISHING TO HAVE WRITTEN OR GRAPHIC MATERIALS INCLUDED IN THE CCPC/PC AGENDA PACKETS MUST SUBMIT SAID MATERIAL A MINIMUM OF 10 DAYS PRIOR TO THE RESPECTIVE SPECIAL MEETING. IN ANY CASE, WRlTIEN MATERIALS INTENDED TO BE CONSIDERED BY THE CCPCIPC SHALL BE SUBMITIED TO THE APPROPRIATE COUNTY STAFF A MINIMUM OF SEVEN DAYS PRIOR TO THE SPECIAL MEETING. ALL MATERIAL USED IN PRESENTATIONS BEFORE THE CCPCIPC WILL BECOME A PERMANENT PART OF THE RECORD AND WILL BE AVAILABLE FOR PRESENTATION TO THE BOARD OF COUNTY COMMISSIONERS IF APPLICABLE. ANY PERSON WHO DECIDES TO APPEAL A DECISION OF THE CCPCIPC WILL NEED A RECORD OF THE PROCEEDINGS PERTAINING THERETO, AND THEREFORE MAY NEED TO ENSURE THAT A VERBATIM RECORD OF THE PROCEEDINGS IS MADE, WHICH RECORD INCLUDES THE TESTIMONY AND EVIDENCE UPON WHICH THE APPEAL IS TO BE BASED. I. PLEDGE OF ALLEGIANCE 2. REVIEW OF THE ANNUAL UPDATE AND INVENTORY REPORT ON PUBLIC FACILITIES, CATEGORY AANDCATEGORYB. A. AUIR OVERVIEW - MIKE BOSI B. IMPACT FEES RELATED TO THE AUIR - AMY PATTERSON C. ISLE OF CAPRI FIRE DISTRICT - CHIEF RODRIGUEZ D. OCHOPEE FIRE DISTRICT - CHIEF McLAUGm.IN E. COUNTY ROADS - NORM FEDERlNICK CASALANGUIDA F. DRAINAGE CANALS AND STRUCTURES - NORM FEDER/JERRY KURT1JSTEVE PRESTON G. POTABLE WATER SYSTEM - JIM DELONYIPHIL GRAMATGES H. SEWER TREATMENT & COLLECTOR SYSTEMS- JIM DELONYI PHIL GRAMATGES I. SOLID WASTE - JIM DELONYI PHIL GRAMA TGES 1. PUBLIC SCHOOLS - ALVAH HARDY K. PARKS AND FACILITIES - MARLA RAMSEYIBARRY WILLIAMS L. COUNTY JAIL - CHIEF GREG SMITH M. LA W ENFORCEMENT - CHIEF GREG SMITH N. LmRARY -MARLA RAMSEY 1 MARIL YN MATTHES O. EMERGENCY MEDICA L SERVICES - JEFF PAGE P. GOVERNMENT BUILDINGS - SKIP CAMPIHANK JONES 3. PUBLIC COMMENT - The Chainnan will open the agenda for Public Comment after each of the categories noted above. 4. ADJOURN September 2009 AUIRICCPCIPC AFncWMBlrnk 1 ANNUAL UPDATE & INVENTORY REPORT ON PUBLIC FACILITIES 2009 AUIR CCPC/PC SPECIAL MEETING SEPTEMBER 21, 2009 Prepared by: Comprehensive Planning Department Community Development & Environmental Services Division 2800 N. Horseshoe Drive Naples, FL 34104 L.__..___.__....__..M'.__.__. Staff Report Presentation to the Collier County Planning Commission (CCPC) and the Productivity Committee (PC) of the 2009 Annual Update and Inventory Report (AUIR) on Public Facilities as provided for in Chapter 6.02.02 of the Collier County Land Development Code. OBJECTIVE: Request that the CCPC and PC review the 2009 Annual Update and Inventory Report (AUIR) on public facilities and provide recommendations to the Collier County Board of County Commissioners (BCC) on specific projects and associated funding sources for inclusion in the Schedule of Capital Improvements within the Capital Improvement Element during the FYlO annual update and amendment (only Category "A" Public Facilities are included in the CIE). This AUIR, like past year's AUIRs, identifies capital needs for both new facilities to serve projected population growth, as well as for replacements of public facilities that will no longer be adequate in the 5-year AUIR time period as the useful life of those public facilities will be exceeded. Also like past AUIRs, this year's AUIR presents additional information related to individual division/department operational data. This additional data set is provided to evaluate the year to year change in demand experienced by each AUIR component and to assist the advisory boards in making recommendations upon the appropriateness of the County's current Level of Service Standards (LOSS) and timing/necessity of proposed projects. The AUIR constitutes the process of evaluating budgetary priorities as well as determining appropriateness of the County's currently adopted LOSS. Unlike past AUJRs, with the adoption of the Public Schools Facility Element (PSFE) within the Growth Management Plan (GMP), schools are now part of the Category "A" facilities which dictate the concurrency management systems for new development to satisfy. It should be noted that the County is required to provide documented revenue sources to satisfy expenses associated with achieving the level of service standards expressed within Category "A" facilities. Under no circumstances can a project be removed from the 5-year CIE where the reason is lack or decrease in revenue. Therefore, the general assumption in this A VIR is that Division Administrators and Department Directors have specifically validated and signed off on the financial feasibility of their respective Category "A" facilities. While, Category "B" facilities are non-regulatory and shortfalls associated with achieving their expressed LOSS are strictly a local decision. However, within each of the Category "B" facilities, a level of service standard has been identified by the respective Impact Fee Study and the A VIR ensures that these LOSS are maintained without any adverse impacts to the rational nexus used to establish the respective impact fees. The population projections provided by the Bureau of Economic and Business Research (BEBR) per Florida Statutes to the County depict an approximate eight percent reduction from the numbers provided to the County for last year's AVIR. Additionally, the population numbers provided by BEBR last year were an 8% reduction from the prior year. These back to back years of population projection reductions in combination with the change from a BEBR high 2009 AUIR STAFF REPORT CCPC/PC - 1 - population projection to a medium population projection after the 2006 AUIR, stands as a stark contrast to the high growth environment projected for the County only three years ago. From the years 2000 to 2006, due to astronomical growth, each of the components of the AUIR was asked to bring on improvements as quickly as possible in an attempt to satisfy the requirements of the adopted level of service standards. From this period of rapid population and infrastructure growth, the last three fiscal years have provided a new reality of growth for the County. Over the past three years, with the reductions in population projections and corresponding decline in building permits issued, each of the AUIR components now reflect that the capital improvements and infrastructure that were required by the adopted level-of-service standards, are no longer necessary within the time frame originally projected. It should be noted that the current level of service standards for the AUIR components are currently satisfied based upon the LOSS and current population levels. Each AUIR component has delayed the timing of most planned improvements, based upon the County's slowdown in growth, with the majority of improvements pushed outside of the 5 year CIE window. The slowdown has also allowed each AUIR component to analysis the best approach to asset management and efficiencies given the budgetary constraints. BACKGROUND: Chapter 163, Part II, Florida Statutes requires the County to adopt certain Land Development Regulations (LDR's) to implement its Growth Management Plan adopted on January 10, 1989. Section 6.02.00 of the LDC requires the County to, "Provide that public facilities and services meet or exceed the standards established in the CIE required by Section 163.3177 and are available when needed for the development..." This Section of Chapter 163, Part II, Florida Statutes is commonly known as the concurrency requirement. Accordingly, on March 21, 1990, the Board adopted the Collier County Adequate Public Facilities Ordinance No. 90-24. This Ordinance was subsequently codified in Chapter 6.02.02 of the Land Development Code (LDC). Chapter 6.02.02 of the LDC established a management and monitoring program for public facilities, which provides for an annual determination of Level of Service Standard (LOSS) concurrency for Category "A" facilities and identification of additional facilities needs. Category "A" facilities are roads, solid waste, drainage canals and structures, parks and recreation, potable water, schools and sewer collection and treatment. The AUIR also provides analysis and recommendations on Category "B" facilities for which the County has adopted LOSS and collects impact fees. The Category "B" facilities are Jails, Law Enforcement, Libraries, Emergency Medical Services, Government Buildings and the two dependent fire districts, Ochopee and Isle of Capri. Adoption of Category "B" facilities LOSS are necessary in order to legally validate impact fees for these facilities. The adoption of category "B" items in the AUIR became necessary when the Category "B" facilities were removed from the CIE and state regulatory oversight as a part of the recent EAR-Based GMP amendments. Chapter 6.02.02 of the Land Development Code requires the preparation of an AUIR on Public Facilities for presentation to the Board of County Commissioners. The findings of the AUIR related to Category "A" public facilities form the basis for the preparation of the Annual Update and Amendment to the Capital Improvement Element and Schedule of Capital Improvements. The AUIR establishes: all Category "A" and Category "B" proposed projects to be included in the next annual budget, the determination of any Area of 2009 AUIR STAFF REPORT CCPC/PC - 2 - Significant Influence (ASI), the review of the issuance of development orders (excluding roads) during the next year. The AUIR also provides an update to the ledger baseline for the real-time Transportation Concurrency Management System database. Under the provisions of Chapter 6.02.02 of the LDC, the BCC's options in response to the needs identified in the AUIR include, but are not limited to, the following: I. Establishment of Areas of Significant Influence (ASI) surrounding deficient road segments which are not in a Traffic Congestion Management Area (TCMA) or Traffic Congestion Exception Area (TCEA). 2. In response to the needs identified in the AUIR, Public Facility projects can be added to the financially feasible Schedule of Capital Improvements in the Capital Improvements Element. Road projects must be in the first or second year of the next adopted Schedule of Capital Improvements in order to be factored as available capacity in the real-time Transportation Concurrency Management System database. 3. Deferral of development order issuance will occur for development not vested by statute in areas affected by deficient Category "A" public facilities. This applies to projects both pending and not financially feasible, or not in the 5-year CIE. Both circumstances could result in the following remedial action: a. Modification of Level of Service Standards (LOSS) via Growth Management Plan Amendments. b. Subsequent direction to Staff to include the necessary Category "A" Public Facility projects in a future Annual CIE Update and Amendment to be adopted by the Board. c. Future approval of new or increased revenue sources for needed Public Facility projects, by the Board of County Commissioners, the State Legislature or the County voters. d. Developer constructed improvements guaranteed by an enforceable development agreement. It should be noted that the options identified above are crafted under the design of attaining a fiscally feasible CIE based on a 5-year concurrency management system. The BCC has provided past policy direction to maintain an annual financially feasible CIE. The evaporation of growth and the decline in Certificates of Occupancy (COs) issued has reduced the impact fees associated with funding new construction, as well as meeting debt obligations. This lack of impact fee revenue is currently placing a greater burden upon the general revenue fund. However, when the economy rebounds, the burden on the general fund will initially be reduced and the debt service obligations will again begin to be funded in part by impact fee revenue. At this time it is impossible to determine when impact fees will reach a level where the burden on the general fund will no longer exist. However, there will always be cyclical changes in impact fee revenue 2009 AUIR STAFF REPORT CCPC/PC - 3- streams which fluctuates the dependency on the general fund. Please note that this year, every department/division that has placed a capital project in the first three years of the A UIR is guaranteeing that construction of that capital improvement will be completed during that fiscal year. This is per the stated Bce policy. Likewise, every department/division that has placed a capital project in years four or five is guaranteeing completion of construction of that capital item during that fiscal year, as well as a guaranteed financial source for that project or a guaranteed alternative source of revenue. This policy for certainty and funding for years four and five is DCA's interpretation of a fiscally feasible CIE. GROWTH MANAGEMENT IMPACT: The preparation and presentation of the AUIR to the BCC, ecpc and PC meets the requirements of Chapter 6.02.02 of the Land Development Code for an annual determination of the status of public facilities. Board direction to include the projects identified in the AUIR in a financially feasible FYlO Annual CIE Update and Amendment will establish and maintain concurrency for Category "A" public facilities, except roads, for the next twelve (12) months. Road projects needed to remedy LOS deficiencies must be in the first or second year of the Schedule of Capital Improvements. ClEfFinancial Feasibility . CIE amendments adOPted after July I, 2005, must demonstrate financial feasibility, which means committed revenues (ad valorem taxes, bonds, state and federal funds, tax revenues, impact fees, and developer contributions) for the years 1-3 of the CIE and planned revenues (future grants, planned new sources of revenues such as taxes approved through referendum) for years 4 and beyond. The Department of Community Affairs (DCA) has indicated that projects slated for years 4 and 5 should not be included unless the identified funding source will exist with absolute certainty or if there is a back-up funding solution. Based upon the County's experience with DCA throughout the EAR-based amendment process, extreme caution should be exercised in years 4 and 5 if absolute funding certainty does not exists as this could affect the role rate of Ad Valorem taxes or the distribution of projected Ad Valorem tax revenue based on the existing mileage rate. Any subsequent changes to the CIE each following year will have to be justified with a substantive rationale. Thus, the AUIR has to be a financially feasible document as well. It should be noted that 8B360 signed by the governor this June has delayed financial feasibility until 2011, but it has bem BCC policy for the County to maintain a financially feasible CIE every year. . CIE amendments which delay a scheduled project beyond years 1-3 can only be done after a public hearing is held. An ordinance to accomplish this without a public hearing is not permitted. The state statutes require the adoption of a financially feasible CIE prior to December] Sl of each calendar year. This mandate is impossible to meet within the time frame established due to the following: local governments not adopting budgets until late September; the CIE requiring multiple hearings with adequate notice for ecpc and BCC meetings, and the amount of time necessary to draft a financially feasible CIE. The DCA recognizes this legislative quagmire and staff will diligently work to get this County's financially feasible eIE transmitted to DCA as soon as possible after the modification and approval of the AUIR by the BCC. Comprehensive 2009 AUIR STAFF REPORT CCPC/PC - 4- Planning staff will be preparing CIE changes in conjunction with the AUIR process and will move forward with the CIE immediately after BCC adoption of the AUIR. Schools As indicated, this will be the first AUJR that includes schools within the Category "A" facilities in preparation for the inclusion within the CJE update. Per the Public School Facility Element adopted in the fall of 2008, Objective Three states that the, "County and the School District will: coordinate the location of public schools with the Future Land Vse Map and map series to ensure that existing and proposed school facilities are located consistent with existing and proposed residential areas they serve and are proximate to appropriate existing and future land uses." Additionally .Objective Four states, "The County shall adopt by reference into its Capital Improvement Element (CIE), the School District's annually updated financially feasible Five- Year Capital Improvement Plan." The Schools component of the 2009 AUIR stands as a unique component. The School District Five Year Capital Improvement Plan is being provided for review by the Advisory Boards, but when the workshops are held to discuss the AUIR, the School District's Capital Improvement Program (CIP) will already have been approved by the School Board, as required by the Florida Department of Education. The proposed School CIP has been reviewed by County staff in conjunction with School district staff to ensure no inconsistencies exist with the timing of new facilities and required infrastructure. The proposed Laurel Oaks Elementary expansion, adding 222 class room seats to a school fully served by urban infrastructure, stands as the only CIP programmed improvement and does not create infrastructure deficiencies. The included chapters of the School district's CIP contains numerous improvements traditionally outside of those contained in a CIE and do not factor within the improvements related to school concurrency. It should be noted that while the Schools component is included as part of the Category "A" facilities which dictate the concurrency management system, concurrency management for schools is administered by the School District. School concurrency runs parallel with the County's concurrency management system, but is separated by the fact that it is administered by the School District. The recommendation sought from the advisory boards related to the School District's proposed CIP is for a recommendation to include the District's CIP by reference with the C1E and that no inconsistencies are contained ...dthin the District's CIP and the other planed capital improvements within the A VIR. LOSS appropriateness As indicated within the objective portion of this staff report, the AUIR provides the platform for the Planning Commission and the Productivity Committee to make evaluations and recommendations regarding the appropriateness of the County's current LOSS. The process of capital improvement programming for the County is a linear equation for most components of the AUIR, (New Population x Level of Service Standard = Capital Improvement). It should be noted that Public Utilities and Transportation have developed a more complex formula and system for maintaining LOSS which dictates capital expansion, but the basic premise of additional demand requiring new improvements is the underlying fundamentals of the equation. 2009 AUIR STAFF REPORT CCPC/PC - 5- The 2009 AUIR Libraries component provides an example. Between 2007 and 2012, the County per BEBR estimates and projections, will add 16,622 people. The BCC adopted LOSS for Libraries is .33 square feet per capita. To determine the capital improvement, the equation is expressed as ] 6,622 x .33 sq.ft. = 5,485 square feet of capital improvements required. This equation is the only justification required of the proposed capital improvement. The role of the AUIR is to provide an opportunity on an annual basis for the two advisory boards to evaluate and provide recommendations on the appropriateness of the LOSS currently adopted by within the AUIR. For example, the question applied to Jails is, "Based upon the bench marks provided and the currently month demand upon the Jails system, is 3.2 beds per 1,000 and appropriate standard?" Within each individual section, the year to year demand for service or demands upon the system has been included to assist the advisory boards and the BCC in this determination. LOSS and Impact Fees It should be noted that impact fee studies and methodologies do not establish levels of service, at a minimum they set a base line where levels of service can not fall below without invalidating the impact fee. A level of service standard that is established by an impact fee study represents the standard that has been achieved for a particular facility, but does not dictate that a local government can not adopt a level of service that is higher than the achieved level of service. However, the difference between the achieved level of service and the adopted level of service will require supplemental funding from a source other than impact fees. Government Buildings and EMS are two ADm components in which the Impact Fee LOSS are below the AUIR adopted LOSS. As indicated, this discrepancy is resulting is a higher level of necessary general revenue supplemental funding. The adopted level of service may never be lower than the achieved level of service (used for the impact fee) because growth would then be required to contribute toward the improvement of public facilities beyond its fair share. Impact Fees Indexing Excerpt from a April 28, 2009 BCC Hearing executive summary authored by Amy Patterson, the Collier County Impact Fee and Economic Development Manager. Currently each of the County's twelve (12) impact fees has an adopted methodology for annual indexing which is specific to the individual impact fee. The "Collier County Impact Fee Indexing Study," identifies four measures (land costs, building costs, building equipment costs and transportation costs) to be used, alone or in combination, to calculate the annual index for each of Collier County's impact fees. The adopted methodology then uses the calculated indexes over a 10 year periodfitted with a linear regression analysis. This method has an overall smoothing effect on the index and therefore the index is slower to increase in years of escalating costs and slower to decrease in years thai costs are declining. The Productivity Committee conducts a review of certain impact fees being updated or indexed (on a rotating schedule) to determine if the fee structure increases are justifiable. At their meeting held on October 15, 2008, the Productivity Committee discussed in length impact fee 2009 AUIR STAFF REPORT CCPC/PC - 6- indexing for EMS, Fire (Dependent Districts), Government Buildings, Law Enforcement, Library, and School. The update studies for the remaining six impact fees (Water, Sewer, Correctional Facilities, Transportation, Community and Regional Parks) are in the process of being completed, or have been completed, and therefore are not subject to indexing on this annual rotation. At the October ]5, 2008 meeting, the Productivity Committee unanimously approved the following recommendation relative to the proposed impact fee indexing: "That the Board of County Commissioners defer a decision on impact fee adjustments as proposed until such time the methodology can be reassessed." This request was due in part to the desire of the Productivity Committee to consider the appropriateness of an indexing model that is more sensitive to the current economic conditions. On October 28. 2008 at the regular meeting of the Board of County Commissioners, under the Communications Section of the Agenda, the Board directed that the Productivity Committee be afforded the opportunity to review the indexing methodology consistent with the Committee's request. The Board also agreed that the County's impact fee consultants, Tindale-Oliver and Associates, would assist with the review. On February J 8, 2009, the Productivity Committee reviewed the materials prepared and presented by the impact fee consultant and determined that the methodology for annual indexing should be revised from the current use of regression analysis to the use of the average cost change over a two year or three year period. as this method is intended to be more responsive to cost fluctuations. This recommendation was approved unanimously by the Committee. The impact fee consultant has since determined that the tyvo year average should be utilized for the purpose of the indexing calculation because of its responsiveness to cost changes. This approach is consistent with the Productivity Committee '.'I recommendation. The attached report titled the "Collier County Indexing Methodology Study" contains the technical information and analysis that is the basis for the recommendation to change to the typo-year average method. The report will be incorporated by reference into the Code as an amendment to the adopted "Collier County Impact Fee Indexing Study." The indices will continue to be calculated and revised annually and will be reviewed by both the Productivity Committee and the Development Services Advisory Committee (DSAC). Additionally, in the event that the index for a specified impact fee equals a J 5 percent or greater change, the cost increase will be verified through bid data, land purchases and other available data, as recommended by the Consultant and legal counsel, in order to validate the accuracy of the calculation.. The table below provides a side-by-side comparison of the scenarios for each of the impact fees that are scheduled to be indexed. Column "B" represents the proposed index using the adopted regression analysis model and Column "C" provides the index using the two-year average. Column "C" also utilizes the most current data available for the indexes and therefore reflects the Productivity Committee recommendation. A B C 2009 A UIR STAFF REPORT CCPC/PC - 7 - Impact Fee Category Calculated Index Using Calculated Index Using 2- Adopted Regression Analysis Year Average (2007 and 2008 data) Emergency Medical Services 13% 3.2% Fire Protection (Dependent Districts) 7.4% 1.3% Government Buildings 11.9% 7.2% Law Enforcement 10.2% 4.1% Library 11.2% 5.3% School 11.7% 6.5% As displayed in the chart above, the calculation utilizing the two-year average is more sensitive to cost fluctuations than the adopted methodology using regression analysis. While none of the indices reflect a negative number, there is a significant downward trend in the percentages. It is also important to note that of the index measures (land costs, building costs, building equipment costs and transportation costs) the greatest changes have been in the areas of land cost and transportation costs. The types of impact fees being reviewed in this cycle have the greater weight of the index placed in building costs and equipment costs where the downward trend is not as dramatic. In the future, as costs begin to increase this method will also quickly capture any upward trends. On March 24, 2009, the Board directed that the County Manager (or his designee) and the County Attorney prepare the necessary amendments to the Code in order to implement the change to the indexing methodology. The Board also directed that the applicable indexing percentages be applied to the rate schedules for Government Buildings, Law Enforcement, Dependent Fire, Emergency Medical Services and Educational Facilities Impact Fees, which were each scheduled to be indexed on this study rotation, thereby establishing the new rates for consideration at a future regular meeting of the Board of County Commissioners, as an advertised public hearing. Additionally, the Board directed that the impact fees that are scheduled for a full review during Calendar Year 2009 be temporarily delayed, with staff reporting back to the Board in November or December (2009) in order to develop a schedule for indexing andfull studies. Finally, the Board directed that the County Manager (or his designee) and the County Attorney work with the DSAC in order to ensure the committee's concurrence with the temporary delay of the full studies. This action does not affect the ongoing Parks Impact Fee Update Study or the Correctional Facilities Impact Fee Update Study, as those are required 2008 update studies that are nearing completion and will be presented to the Board at a future date. 2009 AUIR STAFF REPORT CCPC/PC - 8 - It should also he noted that the Productivity CommitLec had reviewed the Parks Impact Fee . th. 1 d . h h Study over the past year and at their August 19 meetmg mat c a recommen atlon [0 c ange t e methodology in which the Parks Impact Fec is calculated, which results in the following percentage reduction to the current rales hased upon dwelling unit type: ! I I I ~ I Dwelling Unit Type Single Family Detached (2,000 sq I'll Multi-Family Mohile HomelRV Hotel/Motel +- o/~ Change from Current Park 1m act Fee I i -17.~% -+--- I -39.(Y~.. - 29.6<%. .-JO.Y)~, Population The population projections utilized with the 2009 AUIR are hased upon prior BCC policy direction and acceptance from the Department of Community Affairs (DCA). The population method utilizes BEHR Medium Range projections for the entire projection period with a 20 percent seasonal adjustment factor. The below chart is a comparison of the past six years of project population growth. 5 Year AUIR BEBR Growth Growth Percent Year Estimate FoUowin2 5- Y ear BEBR Growth Projections Percent Annualized 2009 2004 292,466 310,384 329,400 343,585 358,380 373,813 27.81% 5.56% 2009 2005 306,186 319.905 334,238 349,214 364.860 381,208 24.50 % 4.90% 2009 2006 317,788 335,422 354.034 .173.679 394,414 416,300 31.00% 6.20% 2009 2007 326,358 339,068 351.950 365,321 379,200 390,665 19.70% 3.94% 2009 2008 333.858 340.409 347,mN 353,900 363,809 373,996 12.02% 2.40% 2009 2009 332.854 33\ ,800 337,874 344,058 350,356 356.770 7.19% 1.44 % The steady reduction in the rate or projected percentage of annualized growth is a retlection of the change from BEBR high to BEBR medium projections. hut also symptomatic of the local economic environment. This downward adjustment to the county's population projections is a reflection of thc macro/micro economic factors which arc afflicting the housing market. locally and nationally. As discussed within the first page of this staff report. the capital improvements identified within the 2009 AUIR is a reflection of a continuing reaLity for the COllnty in relation 2009 AUIR STAFF REPORT cepe/pc - 9 - to growth. No one within the AUIR planning team expects that growth will no longer come to the County. The question is when growth will restart and at what annual rate. The answer to that question requires time, as it involves issues related to the County, issues related to the State of florida, issues related to the national economy and finally issues related to the global economy. All of which can not be fully provided for at this time. One fact that is being provided for by this year's AUIR is that currently within most AUlR components, the adopted level of service standards are being met, not only today, but for the next five year planning period. The dynamics of the demographic changes associated with the recession will not be entirely known until the housing market returns to some semblance of stability. Unfortunately, the 2010 Census may not capture the true essence of the change in demographics related to permanent population and vacancy rates. Until such time that all future and existing foreclosed homes are absorbed back into the housing market, it is virtually impossible to accurately determine the ratio of permanent to seasonal residents, as well as the correct vacancy rates for the county's housing stock. FISCAL IMPACT: Revenues are required to fund the CIE projects proposed in the 2009 AUIR for the FY09-1O thru FY13-14 planning period to maintain statutorily mandated financial feasibility of the CJE for category "A" facilities and must be made available by the Board of County Commissioners or fall within the Board's statutory General Fund taxing authority. Current and Proposed revenues needed to fund public facility construction/expansion for the FY09-1O thru FY14-15 CIE planning period are set forth in each respective capital facilities section of the 2009 AUIR with funding availability validated by the respective County Division responsible for capital facilities and infrastructure. Project expenditures in excess of estimated impact fee, gas tax, and user fee revenues receipts and funded bonds, are reflected as being augmented by General Fund Revenues in the body of this document or with no identified source of revenue. "General Fund Revenues" are defined as existing sales tax revenues and other state shared revenues, or ad valorem allocations at the discretion of the BCC. Where funding sources are not identified, the BCC will make a policy decision to either dedicate a funding source or in the alternative reduce the existing level of service. Either alternative will result in a financially feasible A UIR and CIE. It should be pointed out, that all of the Category "8" facilities, with the exception of the dependent fire districts, required loans from the general fund to meet the necessary revenue. It should be noted that spreadsheets detailing the revenue and debt service for the A UIR divisions/departments for the 5-year CIE period, as well as the long term debt financing schedules has been provided within the AUIR book appendix. Fundin2 for new 2rowth In past AUIRs, the direction from the BCC has been to have new population in Collier County pay for system expansion. Acting upon that policy directive, Collier County has adopted impact fees for all appropriate capital facilities and services with annual indexing prior to updates of impact fee studies. With that fact, curren revenue from impact fees is not sufficient to satisfy the total cost of past capital expansion. Examination of the components of the AUIR provides instances where debt obligations for capital improvements are provided for by internal County 2009AUIR STAFFREPORTCCPC/PC -10- loans. Ideally these debt obligations will be satisfied utilizing future impact fees, but based upon the debt cost of past improvements and the schedule of impact fee revenue identified within the 2009 AUIR, general revenue in the form of a loan to impact fees will have to bridge the gap in funding. Once the growth rate returns, future impact fees will relieve the burden of debt obligation currently being met with general revenue funds. It should be noted that House Bill 227 enacted by the Legislator in June, which places the burden on a local government that impact fees are justified, is the continuation of a movement from the state legislator to compromise how impact fees are applied at the local level. This movement to limit local impact fees at the state level and the recognition that impact fees can not cover the full cost of future improvements must be acknowledged. RECOMMENDA nON: That the Collier County Planning Commission and Productivity Committee take action in the form of recommendations to the Board of County Commissioners: 1. Accept and approve the attached document as the 2009 Annual Update and Inventory Report on Public Facilities. 2. Find upon analysis, review, actions taken and directions given, based on the 2009 AUIR that adequate Drainage Canals and Structures, Potable Water, Sewer Treatment and Collection, Solid Waste, and Parks and Recreation facilities will be available, as defined by the Collier County Concurrency Management System, as implemented by Chapter 6.02.02 of the LDC, to support development order issuance until presentation of the 2010 AUIR. 3. Provide a recommendation that there is sufficient road network capacity in the Transportation Concurrency Management Database for continued operation of the real-time declining balance ledger to support development order issuance until the FY09-10 end of third quarter Status Report. 4. Give the BCC direction by separate motion and vote on Category "A" and "B" facilities relative to projects and revenue sources, with Category "A" facilities set forth for inclusion in the FY09-10 Schedule of Capital Improvements of the Annual CIE Update and Amendment. 5. Provide a recommendation for the School District's CIP to be included in the FY09- 10 Schedule of Capital Improvements of the Annual CIE Update and Amendment by reference. 6. Consider a recommendation to the BCC upon an alternative LOSS for individual components of the AUIR where deemed appropriate. 2009 AUIR STAFF REPORT CCPC/PC - 11 - PREP-\RED BY --'PPROVED BY APPROVED B\( ~~~.. Date ~.ll,-o'~ ... ..._._.____~.__..__._..__..... .___....... ..... _L........ \IIKE BOS!. .-\lCP, COMMlJNllY PL\NNING \1.\'-: \(JER COMPREHENSIVe P,LAN~l'P'R 1M E'.I -f{~-L-~- Oat< _U1 Iu'--'- RANDALL COHEN. ,:~ICP, DIRECTOR COfvIPRI::HENSlVE PLANNING DEPART\fE\JI .......,,- -<-::zf5 ~ .-L Date,?/" Jd [PH K -S(~H~lSTR...\T(H~-7f/-~ MMUNITY DEVELOPfvlENT & ENVIROl'i\IENTAL . ER VICES 2()(j9\CIR SL-\FF Rt::PORT ('cpope - J 2 .