O91-17 Rev. 4/30/91
ORDINANCE O91-/7
AN ORDINANCE OF THE CITY COMMISSION OF
THE CITY OF BOYNTON BEACH, FLORIDA,
ESTABLISHING AN "INTERIM SERVICES FEE";
APPLICABLE TO STRUCTURES CERTIFIED FOR
OCCUPANCY BUT NOT APPEARING ON THE
COUNTY TAX ROLL; PROVIDING FOR
DEFINITIONS; PROVIDING FOR THE
IMPOSITION OF AN INTERIM SERVICES FEE;
PROVIDING FOR THE ESTABLISHMENT oF A
NONLAPSING TRUST FUND FOR REVENUES
RECEIVED AND SETTING FORTH THE
AUTHORIZED USES OF SAID FUND; PROVIDING
FOR CONFLICTS; PROVIDING FOR
SEVERABILITY; PROVIDING FOR CODIFICATION
AS SECTION 5-4.2 OF THE CODE OF
ORDINANCES; AND PROVIDING AN EFFECTIVE
DATE.
WHEREAS, the existing revenue streams of the City of
Boynton Beach are insufficient to meet the ever increasing
demand for additional municipal services generated by the
idevelopment of properties and their subsequent occupancy or
use; and
WHEREAS, the City Commission of the City of Boynton
Beach, Florida desires to offset the demand for additional
~ services provided by the City which occurs when a property
is developed and before such improvements are placed on the
tax roll; and
WHEREAS, the City has heretofore commissioned and
approved the findings contained in the Interim Services Fee
report prepared by FAU/FIU Joint Center for Environmental
and Urban Problems to design a methodology to support the
collection of such a fee, a copy of that report being
attached as Exhibit "A" and incorporated as specific
findings of this commission; and
WHEREAS, the City Commission of the City of Boynton
Beach, Florida deems it in the best interest of the citizens
and residents of the City to adopt an interim services fee
to offset the deficit that is generated by the cost of
providing services to improved properties which are not yet
on the tax roll; and
WHEREAS, the City Commission of the City of Boynton
Beach, approves the creation of a nonlapsing trust fund for
receipt of fees collected and setting forth uses;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY CO~4ISSION
OF THE CITY OF BOYNTON BEACH, FLORIDA, THAT:
Section i. The foregoing "Whereas" clauses are
hereby ratified and confirmed as being true and correct and
are hereby made a specific part of this Ordinance hereof.
Section 2. The City Commission of the City of
Boynton Beach, Florida hereby establishes an "Interim
Services Fee" which shall be implemented as follows:
Interim Services Fee
A. Definitions.
"Interim Services Fee." Annual user charge
applicable to structures certified for
occupancy by the city building department but
not appearing on the Palm Beach County tax
rolls as an improvement to real property.
"Structure." Any building or improvement,
for which a certificate of occupancy is
required, constructed upon real property
located within the municipal limits of the
City of Boynton Beach.
"Owner." That person or legal entity
reflected on the public records of Palm Beach
County as the owner of real property upon
which a structure has been completed.
Interim services fee levied. Every structure
located within the city and not yet appearing on
the County tax roll, shall be subject to an
interim services fee. This interim services fee
shall be in effect from the date of the issuance
of a certificate of occupancy to January 1 of the
year following the issuance of the certificate of
occupancy for the strucuture. Said fee shall be
charged in accordance with the fee schedule which
is attached hereto incorporated herein and
identified as Exhibit "B" and the computation
hereinafter set forth.
Dwelling unit computation by building
official For the purposes of this subsection
and Exhibit "B" dwelling unit computation
shall be made as follows:
Each single-family unit,
condominium, apartment, and
shall count as one.
including
hotel unit,
To arrive at a constructive number of
dwelling units for commercial and/or
industrial structures, the building
official shall divide the total building
square footage for each such industrial
and/or commercial structure by one
thousand (1,000) square feet rounded to
the nearest tenth (.1).
Fee determination; proration. The dwelling
unit computation shall then be utilized by
the building official in conjunction with the
fee schedule set forth in Exhibit "B" in
computing the interim services fee applicable
to each structure certified for occupancy
subsequent to January 1st of each calendar
year. The following example illustrates how
the interim service fee is arrived at:
Example: a 22,565 square
building is issued a certificate
in December of any given year.
foot office
of occupancy
22,565 + by 1,000 = 22.565
22.6 x $10.23 = $231.20
Interim service fee for this
be $231.20.
structure would
Procedure. The building official of the City of
Boynton Beach shall be charged with the collection
of the interim services fee which fee shall be
collected as a condition prior to the issuance of
a certificate of occupancy by the building
department. The fee shall be determined in
accordance with the Schedule of Fees attached
hereto, incorporated herein an identified as
Exhibit "B".
Said fee statement shall be presented to the owner
of the property and the fee shall be collected
prior to the issuance of a certificate of
occupancy. Subsequent to collection, and in any
event, on a daily basis, the building official
shall remit monies collected pursuant to this
section to the offices of the city finance
director.
The building official of the City shall not issue
a certificate of occupancy for any development
unless the development is eligible for all
required municipal services. No improvement shall
be eligible for municipal services unless an
interim service fee has been paid.
Creation of nonlapsing trust fund. The Finance
Director of the City of Boynton Beach, Florida,
shall deposit all funds collected into a
nonlapsing trust fund established and maintained
by the City. The use of such funds will be
restricted and limited to expenditures for public
safety, physical environment (public works
administration costs), maintenance and services
for roads and streets, health (animal control),
library and parks and recreation., which are
associated with the properties from which the
funds were collected. The City Manager shall
provide the City Commission with recommendations
for expenditure of these funds during the annual
budget process or from time to time as needed.
Such expenditures of funds shall be limited to a
percentile of total fees collected for each of the
services as identified herein. The City
Commission by resolution must approve all
expenditures from said trust fund upon
determination that said expenditures are
appropriate.
Section 3. That all ordinances or parts of ordinances
in conflict herewith be and the same are hereby repealed.
Section 4. Should any section or provision of this
ordinance or portion hereof, any paragraph, sentence, or
word be declared by a court of competent jurisdiction to be
invalid, such decision shall not affect the remainder of
this ordinance.
Section 5. Authority is
ordinance as Section 5-4.2 of the Code of
)ermitting said renumbering as is necessary
:he numbering system used in the Code.
Section 6. This ordinance shall
immediately upon passage.
FIRST READING this /~
hereby granted to codify said
Ordinances and
to conform to
become effective
day of
1991.
SECOND, FINAL READING and PASSAGE this
day of
ATTEST:
(Corporate Seal~
Interim. Ser
3/25/91-YT
Rev. 4/30/91-¥T
CITY OF BOYNTON BEACH, FLORIDA
Co~missioner
CITY OF BOYNTON BEACH
INTERIM SERVICES FEE
Florida Atlantic University/Florida International University
Joint Center for Environmental and Urban Problems
Ft. Lauderdale, Florida
March 13, 1991
EXHIBIT "A" -
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CITY OF BOYNTON BEACH
INTERIM SERVICES FEE
Submitted to:
Scott Miller, City Manager
City of Boynton Beach
Prepared by:
Florida Atlantic University/Florida International University
Joint Center for Environmental and Urban Problems
Marie York, Senior Research Associate
Michele' L. Edwards, Research Assistant
Martin A. Schneider, Research Assistant
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Introduction
The existing revenue streams of the City of Boynton Beach are insufficient to meet
the ever increasing demand for additional munidpal services generated by the
development of properties and their subsequent occupancy or use. When a property
is developed it becomes a demander of additional services, but the placement of
improvements on the tax roll does not occur until January 1 of the following year,
and ad valorem taxes are not billed until the following November. The City of
Boynton Beach proposes to adopt an interim services fee to offset the deficit that is
generated by the cost of providing services to improved properties which are not yet
9n the tax roll. The city, therefore, commissioned the FAU/FIU Joint Center for
Environmental and Urban Problems to design a methodology to support the
collection of such a fee.
The gap of time, or interim during which expenditures are created by service
demands but are not covered by ad valorem taxes or other fees such as user fees,
Utility fees, or permit fees is the time period of the interim services fee. This
interim period, between the time service demand is created and property assessment
~olls are effective (January 1), is the only relationship between taxes and an interim
services fee.
The amount of an interim services fee is not based on the value of the property, but
is based upon the direct costs of.the s,ervices provided to the properties. The interim
~ervices fee does not include expenditures for capital facilities nor for the indirect
qosts associated with general government services. Since the interim services fee is
~esigned to be paid at the onset of service provision and is based on the cost of
~elivery of services through the end of the year, the amount of the interim services
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fee is discounted to its net present value. Net present value is defined as the present .~'~
value of future cash flows discounted at the appropriate interest rate. A one-time
collection of the fee at the time of issuance of the certificate of occupancy simi~lifies
the collection/payment procedure.
It is imp~)rtant to note the distinctions between "impact fees for capital facilities"
versus "interim services fees." Impact fees for capital fadlities are charged based
upon the demand for capital facilities and infrastructure that results from new
development. Interim services fees are determined based upon services required for
new development before the property actually goes onto the tax roll. Funds
collected for interim services do not pay for capital facilities.
Background
The City of Boynton Beach has a population of approximately 54,900 residents at its
peak during season, and has had rapid population growth, doubling and redoubling
since 1970. The city is primarily residential, but includes: 52 light industries, a
number of strip retail shops, the regional Boynton Beach Mall, a variety of small
service businesses, 11 commercial banks and seven savings and loan associations.'
Growth has been of major importance to the economic base of the greater Boynton
Beach area, with the buying and selling of land and construction an integral part of
the economy. The new growth has had an impact on the city's revenues and
expenditures. The amount collected in taxes, fees and intergovernmental revenues
have increased due to new construction and continued population growth but the
' City of Boynton Beach Comprehensive Annual Financial Report, September 30,
1989, p. ii and xi.
Boynton Beach 2
growth has also created an increase in service and infrastructure expenditures,
particularly for public safety. Operating expenditures have increased due to
personnel growth in various departments. Other municipal services experiencing
increased demands include: planning and zoning, sanitation, highways and streets,
recreation services and park facilities, public improvement, water and sewer, and
general administrative services? In fiscal year 1988-89, property taxes produced 47%
of the general revenue, a slight increase over fiscal year 1987-88. The 1988-89 millage
'ate for Boynton Beach was 8.735.
~esides the general revenue fund, the depository of ad valorem taxes and many fees,
Ihe City of: Boynton Beach has several special revenue funds. The local option gas
iax fund, created in fiscal year 1983-84 for the distribution of gas tax revenues, is
qarmarked for road improvements. A publidty fund, established to promote the
~ity, levies 'a special annual tax on all real and personal property not to exceed two
mills. The reserve for parks and recreation facilities fund is collected from
developers for the acquisition and development of park and recreational land. Tax
ncrement financing is used to fund downtown revitalization.3
?he City of Boynton Beach's debt service funds include the public service tax,
'ecreational and municipal beach, building improvement and 1988 general
~bligation debt service funds.' The City's net general obligation bonded debt per
apita was $292.19 for fiscal year.198~89, which represents a decrease in net bonded
adebtedness from the prex;ious two years.
, ~ City of Boynton Beach Comprehensive Annual Financial Report, September 30,
989, p. iii-iv.
~ ibid p. iv-v.
' ibid p. 5.
oynton Beach 3
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Financial Constraints
The City of Boynton Beach is faced with the problem of providing increased
services, due to continuing growth, within tight fiscal constraints. Boynton Beach,
as all local governments have the option of raising its primary source of revenue,
the property tax, to pay for capital and services. However the public is often
unwilling to have taxes raised particularly if the need is perceived to be created by
new development and that the new development is not paying its share. As a result
local governments have increasingly turned to user fees which can finance specific
public services by tapping the users of that service.
The funding of capital improvements through taxation of new development is not
a solution. This is because Florida's local governments are prohibitedfrom
imposing taxes on new developments only. Since local governments are prohibited
from imposing taxes upon only new development, they must utilize their police'
powers to reduce the probability of negative externalities caused by new
development in their area2
The inability of existing capital stock to accommodate further development- in an
area is an acceptable reason for the use of local regulatory powers. Impact fees are
considered a regulatory action, not a tax, and thus can be issued against new
development. There are, however, restrictions on impact fees including: showing
that new development causes a demand for capital improvements; ensuring that
fees exacted do not exceed the costs incurred; earmarking and spending the fees only
for the purpose for which they were collected; and spending the money in the area
' Nicholas, James C. "Impact Exactions: Economic Theory, Practice and Incidence," address
delivered at a Symposium on Exactions: A Controversial New Source of Municipal Funds, Duke University
School of Law and the Lincoln Institute of Land Policy.
Boynton Beach 4
that paid the fee. Impact fees, therefore, are a partial solution for funding of
infrastructure, but the funds for non-capital services for new development remain
unaddressed.
Interim Services Fee
An interim service fee is similar to an impact fee, in that there is a direct
relationship between the fee and the use of revenues collected through the fee.
Unlike the impact fee, which is used for capital improvements near the area of new
development, the interim service fee is to cover city expenditures for services new
development requires for the interim period prior to being placed on the tax roll.
During this interim period, the need for additional municipal services is generated
by the development of property and its subsequent use. This time gap, or interim
during which expenditures are created by the demand for service, but are not
covered by ad valorem taxes or other fees such as user fees, utility fees, or permit
fees is the time period that the interim services fee covers.
When a property is developed it becomes a demander of additional services, but the
placement of improvements on the tax roll does not occur until January 1 of the
year following the issuance of the certificate of occupancy (or near readiness for
occupancy), and billing of ad valorem taxes is not issued until the following
November. The assessment of properties and collection of ad valorem property
taxes are the responsibility of the Palm Beach County Property Appraiser and Tax
Collector.
In establishing an interim service fee for the City of Boynton Beach, a direct
relationship must be shown between the fee and the value of the services to the
t~oynton Beach 5
new development. Establishing the amount of the fee directly from the cost of
services provided to the improved property is a key factor in distinguishing the
interim service fee from a tax.
Legal Precedence
The legality of interim services fees has not been established. The issues are similar
to early impact fee adoption when little legal precedence existed. In several early
attempts, impact fees in Florida failed after l~ing subjected to judicial review. In
four cases, impact fees were found to be beyond the authority of cities to impose. In
I976, however, two court cases upheld impact fees. In the first case, Wald
Corporation v. Metropolitan Dade County (Fla. App., 338 So.2d 863), the court held
that a local government could require offset dedications (for canals) as a condition
of development approval. The court found that there was a "sufficient rational
nexus to [the county's] goals of achieving intelligent planning designed to protect
health, safety and welfare of county dtizens to uphold constitutionality of such
ordinances as a valid exercise of police power, in that, inter alia, property was
located in areas subject to periodicflooding...." In the second case, Contractors and
Builders Association of Pinellas County v. City of Dunedin (329 So.2d 314 [Fla.
1976]), a series of impact fees, adopted to pay for the extension of city water a-nd sewer
systems, were challenged. The court held that setting connection charges not
exceeding a pro-rata share is reasonable, as long as the money is limited to meeting
the costs of expansion. The court also noted'that the funds collected must be
earmarked and spent for the purpose:for which they were collected.
After the Dunedin case, Broward County was the first to apply the Dunedin
principles to services other than utility hook-ups. Impact fees for parks, roads and
Boynton Beach 6
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schools were developed and upheld in Hollywood Inc. v. Broward County (431 $o.2d
606 [Fla. 4th DCA 1983]). The reason that Broward's impact fees were upheld, while
earlier attempts had failed, was the strict adherence to the Dunedin principle~and
the establishment of a "rational nexus" between the "fee and the antidpated needs
for the community because of new development." Impact fees are well established
in Florida flow, and are commonly used to recover a pro-rata share of the cost of
expansion required by new development.
A few cities have implemented interim services fees, but only one has faced legal
challenge. In 1985, the Circuit Court invalidated two City of Oakland Park
ordinances imposing an "interim services~ and facilities fee." The final judgment in
the Oakland Forest Corporate Center, et al. vs. City of Oakland Park(Case No. 85-
I~lg0-CD) stated that the fee was actually an unauthorized tax. The reasons for this
finding were that:
o the fees were based on the value of new construction;
o the fees were not shown to offset needs due to growth;
o the revenue gathered from the fee was not earmarked for a
special fund but placed into the dty's general fund; and
o the fees were not uniformly imposed, i.e., the same
properties exempted from ad valorem taxation were also
exempted from the fee.
T
B
ae methodology used in creating this interim services fee for the City of Boynton
.~ach takes these issues into considertion.
B¢ynton Beach
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Legislative Responses
There have been several attempts made at the state level to legislatively authorize
local option interim services fees. In 1989, HB 135 and SB 121 which would both
create a "Local Option Interim Proprietary and General Services Fee Act" died on the
calendar. In 1990, HB 261 died in the House Appropriations Committee, and SB 164
died in the Senate Finance, Taxation and Claims Committee. A local option interim
services bill has not been resubmitted for the 1991 session thus far.
A bill (HB 539) introduced by Representative Hawkins, which attempted to provide
for "assessment and taxation of certain real property based on a fractional-year
assessment roll", also died on the calendar in 1989. It again died on calendar in 1990
as HB 139. A fractional-year assessment roll bill appeared as SB 1208 in 1990,
sponsored by Senator Dudley. This passed the Senate, but died in messages to the
House of Representatives. Two bills dealing with fractional-year assessment have
been resubmitted by Representative Hawkins for the 1991 session. They appear as
joint resolution HB 99 and general bill HB 101.
The appearance and resubmission of these bills, in legislature indicate that these
approache~ are being seriously considered at the state level. If any of the fractional-
year assessment bills passes into Florida law, it may dismiss the need of an interim
services fee. The fact that fractional-year assessment is being examined indicates
that the state understands that local governments are losing revenue during the
interim between the time when an improved property receives city services and
when it is actually placed on the tax roll.
Boynton Beach
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Meflxodology
In designing the interim services fee, a conservative approach was taken, and'the
previously mentioned legal considerations were constantly kept in mind.
The amount of the interim services fee is not based on the value of the property, but
is based upon the costs of the services provided to the improved properties. To
ensure that the fee does not give the appearance of a tax, property which is exempted
from the tax roll is not to be exempted from the interim services fee. The
calculation of the fee takes into account the fact that the property owner is offsetting
a portion of the costs of service delivery through franchise, utility and other fees.
The interim service fee does not include expenditures for capital facilities nor for
the indirect costs associated with general services, such as management, personnel,
legal, finance and budget. These general expenses are excluded because it cannot be
argued that these services would be funded at a lower level if the development did
not occur.
Since the interim services fee is designed as a one-time fee to be paid at the onset of
service delivery, but is based on the cost of delivery of services through the end of
the year, the fee is discounted to its net present value. Net present value is defined
as the present value of future cash flows discounted at the appropriate interest rate.
The one-time collection of the fee at t~e issuance of the certificate of occupancy
simplifies the payment procedure.
BOynton t~each 9
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The methodology identifies the expenditures for services provided by the city at the
time of development, thus linking payment of the fee to the benefit received. The
cost of serving existing developed properties is used as the basis for determining the
fee that new development is to be charged.
In order to develop an equitable fee, reflecting the actual expenditures for services, a
behavioral economic model is used to determine the expenditures on a per capita
basis for residential and nonresidential users. Only the proportional share of
expenditures that are not met through other forms of payment are used in the
calculation of the fee. For example, the percentage of expenditures that is paid for
through other fees, such as utility taxes, are excluded. The services which are
included in the calculation of the interim services fee are: public safety, physical
environment (public works administration costs), maintenance and services for
roads and streets, health (animal control), library and parks and recreation.
Different land uses generate different types of service needs. Therefore, each land
use category was evaluated to determine if it created a direct demand for each
service. F6r example, commercial and industrial uses do not create a direct demand
for libraries or park and recreational services. Thus, the cost for these services are
not included in the calculation of the interim service fee for commercial or
industrial land use types.
Since service needs are generated by both residents and nonresident users, the
methodology is based on per capita demand per type. It was necessary to find a
compatible definition to fit all categories relating service needs thus generated by
residents, employees, and customers. Additionally, each user is not a demander of
Boynton Beach 10
services 24 hours a day, seven days a week. An equivalency definition was thus
created to represent "an individual who is in the city for 24 hours."
This functional population equivalency was based on the number of residents,
employees, and customers who create the demand for services within a 24 hour
time period. Because a person is not in the dty for all hours of a day, one
"functional person" actually represents several persons who are in the city for a
lesser time.
The functional population equivalency units for residential units is given as an
e~ample, using a hypothetical figure of 10,000 residents: [(10,000 residential
pgpulation x 10 hours in the city a day x 7 days a week) / 7 days per week] / 24 hours
a day = 4,167 functional persons requiring services.
This means that although the city may actually have 10,000 residents, the service
demand generated is equivalent to 4,167 round-the-clock, seven-day-a-week,
d~mander of residential services. This is based on the assumption that a resident
occupies a dwelling unit, on the average of ten hours a day.
in the calculation of commercial and industrial users, employees are assumed to be
on the job eight hours a day. The assumptions of time spent at a retail location by
customers averages 30 minutes per vi. sit, while office/industrial visitors average
one hour per visit.
The following three tables describe the methodology and give the data used in the
development of the interim services fee. Table I is an economic model flow
Boynton Beach
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diagram describing the methodology used in developing the fee. The model starts
with input data and assumptions; goes through the calculation of functional
population, expenditure shares and net impact; and results in the recommended fee
per category. Table II lists the data used in calculating the fee as derived from dty
sources. Data is provided by sources with a high degree of reliability and is generally
based on actual counts and surveys. Table III lists the assumptions used in
calculating the fee based on information from the dty and other sources.
Assumptions often include derived data or assumptions based upon economic or
planning theory.
Boynton Beach
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Table
E¢onomio Hodel Flo~ D~agram
MODEL INPUT
Data
Assumptions
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CALCULATIONS OF FUNCTIONAL POPULATION
Residents, employees and customers per type of use
Residents, employees and customers hours in city per average day
Functional population per 24 hours
Functional population per 24 hours per unit or 1000 sq. ft.
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EXPENDITURE SHARES
expenditure per category per month
Assignment of appropriateness of category
Calculations of expenditures per functional person
Calculations of expenditures per category per functional person
NET IMPACT
Total expenditures per functional person per category
Expenditures in excess of revenues per functional person
Net monthly expenditures per unit or 1000 sq. ft.
INTERIM SERVICE FEE PER CATEGORY
Total service expenditures per month per unit or 100 sq. ft.
ranging in value depending upon the month C.O. is issued,
discounted to its net present value, and weighted to that
user's functional population
RESULT
A variable fee based upon the month of the year that services
are demanded for residential dwelling u~its, hotel/motel units
1000 sq. ft. of office/service spaceL and
1000 sq. ft. of industrial space
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Table II
Data
Number of single family dwelling units
Number of multifamily dwelling units
Number of hotel/motel units
Retail square footage
Office/service square footage
Industrial square footage
Annual discount rate
Percent of budget funded by ad valorem taxes
Expenditures (monthly)
Public safety police dept.
Public safety fire dept.
Physical environment (public works)
Roads & streets
Health (Animal Control)
Library
Parks & recreation
Sources: City of Boynton Beach
Florida Statistical Abstract
Boynton Beach 14
17,1Ol
10,I00
717
2,793,050
245,140
2,263,440
8.03
47%
552,438
341,090
17,176
· 54,396
6,455
56,542
238,708
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Table ..III
Assumptions
Persons per household
Single family
Multifamily
2.16
2.16
Persons per hotel/motel unit
1.5
Hours per day per category
Residential
HotelJmotel resident
Hotel/motel employee
Retail employee
Retail customer
Office employee
Office customer
Industrial employee
Industrial customer
I0
9
8
8
.5
8
1
8
1
Days per week per category
Residential 7
Hotel/motel 7
Retail 5.9
Office 6
Industrial 5
Employees per hotel/motel unit
.48
Employees per 1000 sq ft retail
2.1
Employees per 1000 sq ft office
3.07
Employees per 1000 sq ft industrial
1.6
Hotel/motel occupancy rate
62.3%
Sources:
City of Boynton Beach
Palm Beach County Convention & Visitors Bureau
FAU/FIU Joint Center for Environmental and Urban Problems
Chapin, Jr., F. Stuart and Henry C. Hightower. Household Activity
System- - A Pilot Investigation. Center for Urban and Regional Studies,
Chapel Hill: University of North Carolina, May 1966.
oynton Beach
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This methodology results in a variable fee structure, based on the time that the
certificate of occupancy is issued (indicating that the property should no longer be
considered at the vacant land rate for taxing purposes). This represents the time
when additional expenditures are first incurred by the city.
Results
The final !result of the interim services fee analysis is the suggested fee schedule by
land use. ! Table IV lists the suggested fee schedule for the collection of the interim
services ~ee. The amount of the fees collected varies by the type of use
that the applicant of a certificate of occupancy is applying for and also varies by
month. For simplification, it is suggested that the fees be collected only at the time
of the certification of occupancy. This collection time is accommodated by
discounting each monthly fee to its net present value, using the interest rate that the
city receives on its temporary holdings.
Referring to Table IV, the fee for a single family home for which a certificate of
occupancy is applied for in January would be $200.97, whereas the fee to be paid if
occupancy is approved in December would be $17.37. These figures reflect~he
proportional cost of services that is not covered by the collection of other fees or
taxes.
Referring to the table again, the amount of the fee that would be charged to a retail
establishment would be $212.11 per 1000 square feet if the collection date is January.
That amount decreases to $18.33 per 1000 square feet if occupancy approval occurs in
December. For a 10,000 square foot structure, the resulting fee in January would be
$2,121.10 and $I83.30 in December. The retail category incurs the highest fee
Boynton Beach 16
because, based on the number of users in retail establishments, they incur the
greatest demand for services.
Table V presents the suggested fee schedule, based on the analysis of Boynton
each s ~expend~tures and service levels. If the decision is to proceed with the
adoptio~ of the interim services fee the next step is to adopt an ordinance,
addressing the considerations stated in the legal section of this report.
Boynton Beach
17
[ SF* MF*
· January 200.97 200.97
February 184.83 184.83
March
168.58 168.58
April 152.22 152.22
May 135.76 135.76
June I19.18 119.18
July 102.49 102.49
August 85.69 85.69
September 68.78 68.78
October 51.76 51.76
November 34.62 34.62
December 17.37 17.37
* per unit
** per 1,000 sq ft
City of Boynton Beach
Table IV- Fee Schedule
Hotel* Retail** Office**
Industrial**
94.53 212.11 118.40 31.80
86.94 195.08 108.90 29.24
79.29 I77.93 99.32 26.67
71.60 160.66 89.69 24.09
63.86 143.28 79.98 21.48
5&06 125.79 70.22 I8.86
48.21 108.18 60.39 16.22
40.31 90.45 50.49 13.56
32.35 72.60 40.53 10.88
24.35 54.63 30.50 8.19
16.28 36.54 20.40 5.48
8.17 18.33 10.23 2.75
Boynton Beach
18
EXHIBIT "B"