HomeMy WebLinkAbout2002 - Fiscal Impact AnalysisFISCAL IMPACT ANAIJYSIS OF
RESIDENTIAL AND NONRF. SIDENTI^L
LAND USE PROTOTYPES
Prepared for:
City of Sebastian, Florida
May 8, 2002
Prepared by
Tischler & Associates, Inc.
Fiscal, Economic, and Planning Consultants
Protot~e Land Use Fiscal Analysis Sebastian, Florida
A.
B.
C.
1.
2.
3.
4.
D.
1.
2.
3.
4.
E.
II.
A.
B.
III.
A.
B.
C.
D.
E.
IV.
A.
B.
C.
D.
E.
F.
G.
EXECUTIVE SLrMMARY ................................................................................................ 2
ASSIGNMENT ........................................................................................................................ 2
COST AND REVENUE ASSUMPTIONS ..................................................................................... 2
SUMMARY RESULTS ............................................................................................................. 3
General Fund Results ..................................................................................................... 6
Local Option Gas Tax Fund Results ............................................................................... 6
Discretionary Sales Tax Fund Results ............. ~ .............................................................. 7
Capital Improvements Fund Results ............................................................................... 7
REASONS FOR THE RESULTS ................................................................................................. 8
General Fund ................................................................. 8
Local Option Gas Tax Fund ....................................................................................... 9
Discretionary Sales Tax Fund .................................................................................... 9
Capital Improvements Fund ..................................................................................... 10
GENERAL CONCLUSIONS .................................................................................................... 10
PROTOTYPES ............................................................................................................... 12
RESIDENTIAL PROTOTYPES ................................................................................................ 12
NONRESIDENTIAL PROTOTYPES ......................................................................................... 13
FISCAL IMPACT RESULTS ....................................................................................... 14
ANNUAL GENERAL FUND REVENUE .................................................................................. 14
ANNUAL GENERAL FUND EXPENDITURES .......................................................................... ~5
ANNUAL REVENUES AND EXPENDITURES FOR LOCAL OPTION GAS TAX FUND ................. 16
ANNUAL REVENUES AND EXPENDITURES FOR DISCRETIONARY SALES TAX FUND ............ 17
ANNUAL REVENUES AND EXPENDITURES FOR CAPITAL IMPROVEMENTS FUND ................. 18
APPENDIX - SUPPORTING DATA ........................................................................... 19
POPULATION ESTIMATE ..................................................................................................... 19
HOUSING UNITS ................................................................................................................. 20
PERSONS PER HOUSEHOLD ................................................................................................. 21
EMPLOYMENT .................................................................................................................... 22
BUILDING AREA PER EMPLOYEE ........................................................................................ 23
AVERAGE DAILY VEHICLE TRIPS ....................................................................................... 24
CALLS FOR SERVICE ........................................................................................................... 26
Tischler & Associates, Inc.
TISCH~LER &
Assoc~xr~s, I~c.
4701 Sangamore Road
Suite N210
Bethesda, MD 20816
(301) 320-6900
Fax: (301) 320-4860
80 Annandals Road
Pasadena, CA91105-1404
(818) 790-6170
Fax:(818) 790-6235
(800} 424-4318
tischlerassociates.com
Fiscal Impact Analysis
Capital Improvements Programs
impact Fee Systems
Growth Policy Planning
Economic and Market Armlysis
Fiscal and Economic Software
tailored for each comrnanib]
EXECUTIVE SUMMARY
A. Assignment
Tischler & Associates, Inc. (TA) is under contract with the City of Sebastian to
conduct a prototype land use fiscal impact analysis for new residential and
nonresidential development. In a prototype analysis, a "snapshot" approach is
used that determines the costs and revenues for various land use prototypes in
order to understand the fiscal effect each land use has independently on the
City's budget. In other words, what type of land use generates net revenues and
net deficits to the City. The six residential prototypes are single family, high
value; single family, medium value; single famaly, low value; townhouse; multi-
family condominium; multi-family rental. The three nonresidential prototypes
are retail, office, and industrial flex. These prototypes are described in more
detail in Section II of this report. Limitations to this approach are the reliance on
average costing, particularly for one-time capital costs.
B. Cost and Revenue Assumptions
For this analysis, the net fiscal impacts for the residential and nonresidential land
use prototypes have been determined by subtracting the costs necessary to serve
these land uses from the revenues generated by each land use. This analysis
included the General Fund, Local Option Gas Tax Fund, Discretionary Sales Tax
Fund, and Capital Fund. The cost and revenue factors have been determined
based on the FY2002 City budget and current levels of service.
To derive the costs, revenues, and service levels, TA interviewed department
staff and reviewed the current budget and other financial and demographic data.
The result of this assessment and the methodologies used to project the costs and
revenues are described on the Level of Service, Cost and Revenue Assumption
(LOS) document. Please refer to the separate LOS document for details on
methodology.
2
Protot),pe Land Use Fiscal Analysis Sebastian, Florida
C. Summary Results
As indicated in the table and chart below, all six residential prototypes generate annual net surpluses and
one of the three nonresidential prototypes generate annual net surpluses. The results of each of the funds
will be discussed m the £ollowing sections.
$1,000
$500
Annual Net Fiscal Results (of four funds)
City of Sebastian, Florida Prototype Land Use Analysis
(per Residential Unit/per 1,000 Nonresidential SF)
$661
$110 $169 $247 ...........................
$76 $68
SF High Val SF Med. Val. SF Low Val. Town. MF Condo, M~ Ren[
Office Ind. Flex
....... ($_1 _533 _ _
($1,006)
As the chart below indicates, the major reason for the positive results of the residential
prototypes is the surpluses generated in the General Fund.
11schler & Associates, Inc.
Prototype Land Use Fiscal ~lnalvsis Sebastian, Florida
Annual Net Fiscal Results by Fund For Residential Prototypes
City of Sebastian, Florida Prototype Land Use Analysis
(per Residential Unit)
$800
$600
$400
$200
SF High Va[ SF Med. Va[. SF Low Va[. Town. MF Condo. MF Rent.
($200) ($1) ($~3) ($1) ($43) ($1) ¢43) ($1)($10) ($1) (531) ($1) ($36)
¢400)
Iffi General Fund rn Local Option Gas Tax Fund [] Discretionary Sales Tax Fund · Capital Improvements Fund i
The positive results of the residential prototypes in the General Fund can be attributed not only to
the assessed value of the units and subsequent ad valorem taxes, but also to the revenues
generated from franchise fees and utility service taxes. This point is illustrated in the charts
below using the single family medium value prototype and multi-family rental prototypes as
examples.
Single Family Medium Value Prototype
Comparison of General Fund Revenues by Source to Total General
Fund Expenses
$400
$300
$200
$0+-
T
Ad Valorem Taxes [] State Shared Revenues · Utility Service Taxes
Franchise Fees [2 lnterfund Transfers ! Total GF Expenses
Tischler & Associates, Inc.
Prototype Land Use Fiscal Analysis Sebastian, Florida
Multi-family Rental Prototype
Comparison of General Fund Revenues by Source to Total General
Fund Expenses
$50ff
$21
$400
$300
$200
$100 ~
$o
[] Ad Valorem Taxes
' El Franchise Fees
[] State Shared Revenues · Utility Service Taxes
[] Interfand Transfers ffi Total GF Expenses
A major reason the results of the nonresidential prototypes are negative is due to the annual
results of the special revenue funds and Capital Improvement Fund (two of the three
nonresidential prototypes generate positive results in the General Fund as shown in the chart
below). The revenue formulas for these funds are based on population, thus nonresidential
generate no revenues for these funds.
Annual Net Fiscal Results by Fund For Nonresidential Prototypes
City of Sebastian, Florida Prototype Land Use Analysis
(per 1,000 square feet)
$400
$200
$0
($200)
($~oo)
($600)
($800)
$311
Comm./Ret. Office
$28
Ind. Flex
($22) ($42) ($35) ($68) ($140) ($28) ($53) ($100)
($286)
($656)
I1 General Fund E] Local Op6on Gas Tax Fund [] Discretionary Sales Tax Fmxd · Capital Improvements Ftmd I
5
Tischler & Associates, Inc.
Prototype Land Use Fiscal Analysis Sebastian. Florida
1. General Fund Results
C~meral F~md Net Fiscal Resul~s
In the General Fund, all six of the residential prototypes generate positive fiscal results. Single
family high value generate the best results with annual net revenue of $703 per unit. The single
family medium value and multi-family condominium units generate annual net revenue results of
$336 and $278 respectively. The townhouse prototype generates a net $178 per unit annually.
The lowest net annual results for the residential prototypes are the single family low value, a
surplus of $152 per unit, and multi-family rental, a surplus of $111 per unit.
Two of the three nonresidential prototypes generate positive fiscal results for the General Fund.
The office prototype generates an annual surplus of $311 per 1,000 square feet while the
industrial flex prototype generates a $28 per 1,000 square feet surplus annually. Only thc
commercial/retail prototype generates net annual deficits at -$656 per 1,000 square feet.
2. Local Option Gas Tax Fund Results
Loeal Option Gas Tax Fund Net Fiscal Resuas
City of Sebastian, Florida
RESIDENTIAL (Per Unit) NONRESIDENTIAL (Per 1,000 SF)
Single Family Single Family 5ingleFamil~ Multi-Family Multi-Family CuamamSa IMduslrial
Revenues $63 $61 $61 $49 ~E4 538 K /0 /0
Expendlt~es ~5c, ~59 $69 $47 $33 $37 $2~ $35 ~
NET RESULT $2 $2 $2 $2 $1 $1 ($221 ($35) ($28)
Each of the six residential prototypes generate slight annual surpluses in the Local Option Gas
Tax Fund. The single family high value, single family medium value, single family low value,
and townhouse generate a surplus of $2 per unit. The multi-family prototypes each generate
p6sitive annual results orS1 per unit.
The nonresidential prototypes generate net annual deficits in the Local Option Gas Tax Fund.
The lowest annual deficit is generated by the commercial/retail prototype at -$22 per 1,000
square feet. The industrial flex prototype generates a deficit of-$28 per 1,000 square feet per
year. The worst fiscal results are generated by the office prototype at -$35 per 1,000 square feet.
Tischler & Associates1 Inc.
Prototype Land Use Fiscal Analysis Sebastian, Florida
3. Discretionary Sales Tax Fund Results
RESIDENTIAL (p~ Unit) NONRESIDENTIAL (Per 1,000 SF)
r~ev~nue~ $38 53~ $38 $30 $~1 $2a[ ~ ~ ~
NET RESULT ($1) {$1] ($1) ($1} ($1) ($1 {$421 ($68) ($53)
All of the prototypes generate net annual deficits in the Discretionary Sales Tax Fund. All of the
residential prototypes generate similar results of-S1 deficits per unit.
The commercial/retail prototype generates the least annual deficits among the nonresidential
prototypes at -$42 per 1,000 square feet. The industrial flex prototype generates the next best
fiscal result with annual net deficits of-$53 per 1,000 square feet. The office prototype
generates annual net deficits of-$68 per 1,000 square feet annually.
4. Capital Improvements Fund Results
RESIDENTIAL (Per Uni0 NONRESIDENTIAL (Per 1,000 SF)
Single Family SingleFamily $ingleFamil]~ Multi-Family dulti-Famil Conunereial/ lnduslaial
HighVaiue MedlumValoE LowValue rownhousECondominium Rental Retail Office Flex
Revenues $207 $207 $20; $166 $114 $12~ $01 $0
Expenditures $250 $250 $25( $176 $146 $16, $286l $140 $10{
NET RESULT ($43) ($43} ($43] ($10) ($31) ($36'. {$286 ($140} {$100'
All of the residential prototypes generate net annual deficits. The townhouse prototype generates
the lowest annual deficit at -$I0 per unit, followed by the multi-family condominium at -$31 per
unit, and the multi-family rental at -$36 per unit. The single family prototypes each generate net
annual deficits of-$43 each.
All of the nonresidential prototypes generate annual deficits. The industrial flex prototype
generates the lowest annual deficit at -$100 per 1,000 square feet. The office prototype
generates a net annual deficit of-$140 per 1,000 square feet. The commercial/retail prototype
produces the worst fiscal result of deficits of-$286 per 1,000 square feet.
Tischler & Associates, Inc.
Proto~pe Land Use Fiscal Analvsis Sebastian, Florida
D. Reasons for the Results
The following highlights the major reasons for the results in each fund. Please refer to Section
~I for cost and revenue details.
1. General Fund
Annual General Fund Revenues by Prototype
(per Residential Uni~per 1,000 Nonresidential SF)
$1,400
$1,200
$1,000
$800
$600
$400
$200
$0
.~x'q~x _ ~e~.q~x' x.o.~
~c~' b°'
~ o ~d~ C°~x
I · Ad Valorem Taxes · Utility Service Taxes [] State Shared Revenues
~ · Franchise Fees [] Licenses and Permits [] Interfund Transfers
As the chart above indicates, ad valorem taxes account for the largest portion of General
Fund revenues for all of the residential and nonresidential prototypes.
For residential prototypes, other significant revenue sources include state shared revenues
(1/8 cent motor fuel tax in particular), utility service taxes, franchise fees, and interfund
transfers (especially the transfer from the discretionary sales tax fund). These are population
based revenues and vary according to persons per household rates for each of the residential
prototypes. Thus, the single family prototypes generate the highest results for these
population based revenues while the multi-family condominium (with the homestead
exemption) prototype generates the lowest results.
For nonresidential prototypes, significant revenue sources include utility service taxes,
franchise fees, and licenses and permits. These are job based revenues and vary according to
employment density rates per 1,000 square feet rates for each of the nonresidential
prototypes. Thus, the office prototype generates the highest results for these job based
revenues as a result of having the most employees per 1,000 square feet while the
retail/commercial prototype generates the lowest results and has the fewest employees per
1,000 square feet.
Tischler & Associates, Inc.
Prototype Land Use Fiscal Analvsis Sebastian, Florida
For both residential and nonresidential, the largest categories of expenditures are for police
and public works. Because of the average cost approach utilized in a prototype land use
analysis, average household size and vehicle trip generation rates drive the overwhelming
majority of costs for the residential and nonresidential prototypes. For example, the single
family prototypes have higher persons per household and vehicle trip rates than the other
residential prototypes and thus have higher expenditures.
Likewise, the vehicle trip rate for the retail/commercial prototype .is higher than the office
and industrial flex prototypes. The commercial/retail prototype generated negative fiscal
results primarily because of higher costs for mad and drainage and police costs due to greater
vehicle trip generation rates per 1,000 square feet. Also, job based revenues are lowest for
commercial/retail because it has a lower employment density per 1,000 square feet.
The determining factor for the results of the various single family prototypes are the different
market values and subsequent ad valorem taxes. The remaining revenue and expenditure
categories utilized the same person per household data and trip generation rotes for each
single family prototype.
School costs are not included in this analysis which often comprise the largest expenditures
associated with residential development.
2. Local Option Gas Tax Fund
)' The primary reason why the nonresidential prototypes generate annual deficits is that this is a
population based revenue distributed by Indian River County to participating cities on a
percentage basis determined by the City's population. Single family prototypes have the
highest household size and produce the best residential results.
~ Interest income cannot be attributed as a growth related revenue and is not factored in this
analysis.
)' Expenditures for the residential prototypes are higher than the nonresidential because the
$300,000 for debt service is for the annual paving of residential streets.
3. Discretionary Sales Tax Fund
The primary reason why the nonresidential prototypes generate such large annual deficits is
that this is a population based revenue. This fund is used as a conduit with the majority of
the funds transferred to the General Fund and Capital Improvements Fund which accounts
for the deficits for all of the prototypes.
Interest income cannot be attributed as a growth related revenue and is not factored in this
analysis. Also, because this is a special revenue fund, it is assumed that the unappropriated
funds will be spent on projects that will vary with population
Tischler & Associates, Inc.
Prototype Land Use Fiscal Analysis Sebastian, Florida
4. Capital Improvements Fund
The primary reason that all of the eight prototypes generate annual deficits is that 22% of the
revenues coming into this fund (paving project savings) cannot be attributed to growth.
In addition, ail of the revenues coming into this fund are population based. The
nonresidential prototypes generate no revenues for this fund.
The commercial/retail prototype generates the largest deficits as a result of having the
highest vehicle trip generation rate which produces the highest trip related costs.
All six residential prototypes produce negative annual results. This is the result of
expenditures related to paving benefiting residential sections, sidewalks and bikeways, and
recreation facilities. The single family prototypes generate the highest deficits due to having
the largest household size and highest vehicle trip generation rates resulting in higher
expenditures related to population and trips.
E. General Conclusions
Both the residential and nonresidential prototypes rely heavily on revenue from ad valorem
taxes. For residential prototypes, the reliance ranges from a high of 66% for single family
high value prototype to 38% for single family low value prototype. Nonresidential relies less
on ad valorem taxes than residential, although it still comprises the largest category of
revenue. Ad valorem taxes for nonresidential range from a high of 51% for
commercial/retail prototype to 30% for industrial flex prototype.
The industrial flex prototype generates the lowest amount of revenue in the General Fund at
$566 per 1,000 square feet. This result is based on an average market value of $46.60 per
square foot for both land and improvements. Sebastian has a small inventory of older,
existing industrial flex development. TA believes that future industrial flex development will
have a higher market value. A market value of $89 per square foot would result in the
industrial flex prototype achieving fiscal neutrality.
However, as shown in the table below, it is important to note that ad valorem taxes alone are
not sufficient to cover the total expenses for four of the six residential prototypes and all
three of the nonresidential prototypes. Only the single family high value prototype and
multi-family condominium prototype generate sufficient ad valorem taxes to fully cover their
expenses.
Surplur~(D~-idt) $284 ($831 ($2661 ($156) ~ ($147) ($969) ($1~41 ($367]
10
Tischler & Associates, Inc.
Prototype Land Use Fiscal Analvsis Sebastian, Florida
As noted earlier, for the residential prototypes, this analysis highlights the significant
revenues generated by franchise fees, utility service taxes, local half-cent sales tax, and
transfer from the Discretionary Sales Tax Fund. Significant non-ad valorem revenues for the
nonresidential prototypes also include franchise fees and utility service taxes, in addition to
revenues from licenses and permits.
Two of the sources for revenues from franchise fees and utility service taxes are derived from
electric utilities in the form of the electric utility service tax and electric franchise fee. It is
important to note that future deregulation of electric utilities could have an impact on these
revenue sources.
The results for the commercial/retail prototype should not be viewed negatively. Sales tax is
important revenue source in the forms of the local half-cent sales tax and discretionary sales
tax. Also, employment in commereial/retail can provide residents with jobs that allow them
the ability to afford housing and shopping within the City. It is important to note that sales
tax can vary based on the "ebbs and flows" of the economy.
While the fiscal results indicate that the General Fund is able to support eight of the nine
prototypes, it is important to note that approximately 6% of the budgeted General Fund
revenues are from sources that cannot be attributed to growth. These revenues include
interest earnings, interfund transfer from fund balance, federal grants, rent and royalties,
sales/compensation for lost assets, and contributions/donations.
The fiscal results for the Capital Improvements Fund indicate that the current level of service
cannot be supported by the current revenue structure for all six of the residential prototypes
and all three of nonresidential prototypes. This is due to the fact that 22% of the revenues
coming into this fund cannot be attributed to growth (paving project savings). This has
resulted in the City being able to achieve an "artificial" level of service for many of its
facilities and infrastructure. TA recommends that the City develop a 5 year Capital
Improvements Program (CIP) with projected revenues and expenditures. A CIP is critical to
a jurisdiction's long-term financial health. By projecting differences in future revenues and
expenditures, a community is able to estimate its future net fiscal capacity under the existing
revenue structure and growth patterns. This information can be used to facilitate discussions
and subsequent policy decisions about financing alternatives and standards for community
facilities and infrastructure. A CIP is not just a financial or planning tool, but is important
for maintaining a viable economic base and providing amenities for the well-being of its
citizens.
For annexation, the land use prototype information can be used and extra capital related costs
can be added where appropriate.
It is important to acknowledge that fiscal issues are only one concern when evaluating land
uses, as virtually all communities will have contributors and recipients. Non-fiscal issues
such as the environment, housing affordability, jobs/housing balance and quality of life must
also be considered. The emphasis should be on achieving an appropriate mix of land uses.
11
Tischler & Associates, Inc,
Prototype Land Use Fiscal Analysis Sebastian, Florida
II. PROTOTYPES
The Department of Growth Management and TA agreed on six residential and three
nonresidential land use prototypes to examine. These land use prototypes are briefly d/scussed
in the sections below.
A. Residential Prototypes
The residential prototypes include: 1) Single Family, High Value, 2) Single Family, Medium
Value, 3) Single Family, Low Value, 4) Townhouse Units, 5) Multi-family Condominium Units,
and 6) Multi-family Rental Units. These different prototypes are meant to represent the various
types of future residential development expected in the City. The table below outlines the
residential prototypes and their associated characteristics. The estimated persons per unit,
average new market value and average daily vehicle trips are shown in the table for each
prototype. These data will be used to calculate the associated cost and revenue factors described
in Section IV. Persons per unit were developed using 1990 U.S. Census housing characteristic
data by type of housing unit (2000 Census data is not yet available), TA's January 1, 2002
population and housing unit estimates, and descriptions of the residential prototypes provided by
the City. Market value assumptions are based on data provided by the City. Average daily
vehicle trip factors are from the Institute of Transportation Engineers.
1TE Persons Ave. Market Vehlde
Protot'~ae Code pex Unit (1) Value (2) Trips 0)
S'mgle Family High Value 210 7_32 $250,000 9.57
Single Family Medium Value 210 Z32 $150,000 9.57
Single Faimly Low Value 210 Z32 $100,000 9.57
Town.house 2.30 1.86 $100,000 5.86
Multi-family Condominium 230 1.28 $125,000 5.86
Multi-family Rental 220 1.44: $50,000 6.63
(1) Based on 1990 and 21300 U.S. Census data and TA estimates for 1/1/02 population and
housing mails.
(2) Based on data provided by the City.
(3) Based on 1TE Trip Generation 6th Edition.
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Tischler & Associates, Inc.
Prototype Land Use Fiscal AnalFsis Sebastian, Florida
B. Nonresidential Prototypes
The three nonresidential prototypes include: 1) Retail, 2) Office, and 3) Industrial Flex. The
table below outlines the nonresidential prototypes and their associated characteristics.
Assumptions for square feet per employee were developed using information from the Institute
of Transportation Engineers and Urban Land Institute. Market values per square foot are based
on data from Marshall-Swift Valuation System and discussions with City staff. Vehicle trip
factors are fi.om the Institute of Transportation Engineers.
Nonresidential Prototypes
City of Sebastian Prototype Land Use Fiscal Analysis
ITE Employees per Ave. Market Vehicle
Prototype Code 1,000 SF (1) Value4ff,000 SE (2) Trips
Retail 820 2.50 $90,00C 68.17
Office 710 4.04 $145,00~ 18.31
Industrial Flex 770 3.16 $46,60~ 1Z76
(1) Based on 1TE txip generation and ULI data.
(2) Indudes building and land cosls. Based on Marshall-Swift Valuation System and discussions
with City staff.
(3) Based on ITE Trip Generation 6th Editior~
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Tischier & Associates, Inc.
Prototype Land Use Fiscal Analysis Sebastian, Florida
III. FISCAL IMPACT RESULTS
A. Annual General Fund Revenue
The table below summarizes the annual revenue for each prototype based on the methodology
discussed in the separate LOS document.
RESIDENTIAL (Per Unit) NONRESIDENTIAL (Per 1,00O SF)
Single Famil~ Single Family 5ingle Famit~ Mnlfi-Family Multi. Famil Commerda Indus~ial
Revenue Hi~hValue MedlumValue LowValue Townhouse Condominlu~ Rental Retail Office Flex
gert Go~t Chgs for Settee $13 $13 $0 $0 $0 $0 $0 $0 ~0
nteffund Transfers $35 $35 ! $35 $28 $19 $21 $0 $0 $0
5ah~ Finandng Sources $0 $0 I $0 $0 S0 $0 $0 $0 $0
tOTAL $1~22 $854 $671 $587 $574 $442 $643 $1,038 $566
Ad valorem taxes account for the largest source of revenues for both residential and
nonresidential prototypes. As discussed above and in more detail in the LOS document, ad
valorem taxes are based on the market and assessed values for each prototype.
Single family nigh value generates the most annual revenue at approximately $1,222 per unit.
Single family medium value and single family low value generate the next highest amounts of
revenue at $854 per unit and $671 per unit respectively. As discussed above, most of this
revenue is generated from ad valorem taxes which also accounts for the different results of the
single family prototypes. Average market values per unit are the only differentiating factor
among the single family prototypes. Similar persons per household data are used for each of the
single family prototypes which accounts for the similar results of population based revenues.
Likewise, since the single family prototypes have higher persons per household ratios than the
other residential prototypes, they generate higher revenue results for population based revenues
such as state shared revenues, utility service taxes, franchise fees, and the transfer of
discretionary sales tax revenue. The townhouse prototype generates the next results of $587 per
unit. The townhouse prototype generates lower ad valorem taxes than the muilt-family
condominium but generates nigher population based revenues. The multi-family condominium
and multi-family rental prototypes generate the lowest amounts of revenue, $574 and $442 per
unit. While the multi-family rental generates higher amounts of population based revenues, the
multi-family condominium generates higher ad valorem taxes. Although the multi-family rental
is the only residential prototype for which there is no homestead exemption, its market value of
$50,000 per unit is considerably lower than the other residential prototypes.
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Tischler & Associates, Inc.
Protoi~pe Land Use Fiscal Analysis Sebastian, Florida
The office prototype generates the best revenue results of the nonresidential prototypes at $1,038
per 1,000 square feet. It has both the highest average market value per square foot and
employment density per 1,000 square feet which accounts for it having the highest ad valorem
taxes and job based revenues. The commemial/retail prototype has the next best results of $643
per 1,000 square feet. While it has a lower employment density per 1,000 square feet than the
industrial flex prototype, it has a much higher average market value per square foot than the
industrial flex. The industrial flex prototype generates the lowest mount of revenue, $566 per
1,000 square feet. This result is based on an average market value of $46.60 per square foot for
both land and improvements. Sebastian has a small inventory of older, existing industrial flex
development. TA believes that future industrial flex development will have a higher market
value. A market value of $89 per square foot would result in the industrial flex prototype
achieving fiscal neutrality.
B. Annual General Fund Expenditures
The table below summarizes the annual operating costs for each prototype based on the
methodology discussed in the separate LOS document.
Legal $12i $1: $12 $9 $6 $; $12 $~0 $16
Final*ce $35j $3S $35 $7.81 $19 $2~ $~7 $60 $47
Police Department $93~ $035 $235 $1911 $137 $15~ $913 $385 $278
Engmeerin§ $1q $1d $14 $111 $8 $~ $15 $24 $19
As shown in the table above, the greatest annual operating expenditures for both the residential
and nonresidential prototypes are for Police and Public Works. There are no expenditures for
Growth Management as discussions with City staff indicate that these expenditures are fixed
relative to new growth.
The single family prototypes generate the greatest annual operating costs at $519 per unit. This
is the result of their larger average household sizes and vehicle trip generation rates than the
other residential prototypes. As discussed earlier, similar household sizes and vehicle trip
generation rates are used for each of the single family prototypes. The townhouse prototype has
the next lowest costs at $408 annually. The multi-family prototypes generate the lowest costs of
$331 per unit for rental units and $296 per unit for condominium units. These prototypes have
lower costs due to smaller average household sizes and lower trip generation rates.
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Tischler & Associates, Inc.
Prototvoe Land Use Fiscal Anall~sis Sebastian, Florida
The commercial/retail prototype generates the greatest annual operating costs of $1,299 per
1,000 square feet as a result of greater police and public works costs due to higher vehicle trip
generation rate per 1,000 square feet. Tr/ps by land use are the most reasonable proxy for
reflect'mg nonresidential demand for police services. The office prototype generates $726 per
1,000 square feet annually and has the highest job based expenditures due to its higher
employment density per 1,000 square feet. The industhal flex prototype generates the lowest
annual costs of $538 per 1,000 square feet due to having the lowest employment density per
1,000 square feet and vehicle trip generation rate per 1,000 square feet.
C. Annual Revenues and Expenditures for Local Option Gas Tax Fund
The tables below summarize the annualized revenues and costs for each prototype based on the
methodology discussed in the separate LOS document.
RESIDENTIAL (Per Unit} NONRESIDENTIAL (Per 1,000 S$
Local option gas tax revenues are based on population. Residential results relate directly to
average household size, thus the single family prototypes generate the best results at $61 per
unit, followed by the townhouse prototype, multi-family rental, and multi-family condominium
at $49, $36, and $34 per unit respectively. Interest income cannot be attributed as a growth
related revenue and is not factored in this analysis.
RESIDENTIAL (Per Unit} NONRESIDENTIAL (Per 1,000
Expenditam SbagleFamfly SlngleFamily 5ingleFamil] Multi-Family Multi*Famil Commmxq~ Industrial
Public Lighting $17 $17 $17 $13 $9 $10 $18 $29 $23
The residential prototypes generate greater annual costs than the nonresidential prototypes. This
is the result of the debt service for paving being attributable to residential only. Results for the
residential prototypes relate directly to average household size. The single family prototypes
generate the highest annual costs at $69 per unit followed by the townhouse prototype at $47 per
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Tischler & Associates, Inc.
Prototype Land Use Fiscal Analysis Sebastian, Florida
unit, the multi-family rental prototype at $37 per unit, and the multi-family condominium
prototype at $33 per umt. Nonresidential results relate directly to employment density per 1,000
square feet. The nonresidential expenditures relate to public lighting and signalization supplies.
The office prototype has the highest annual costs of $35 per 1,000 square feet, followed by the
industrial flex prototype at $28 per 1,000 square feet and commercial/retail prototype at $22 per
1,000 square feet.
D. Annual Revenues and Expenditures for Discretionary Sales Tax Fund
The tables below summarize the annualized revenues and costs for each prototype based on the
methodology discussed in the separate LOS document.
~onary Sales Tax Fund Revenue per Protype
City o~ Sebastian, Florida
RESIDENTIAL (Per Unit) NONRF~IDENIlAL (per 1,fl00 SD
Interest Income $( $0 $0 ~1 ${ $1 $0 $0 $0
Discretionary sales tax revenues are based on population. Residential results relate directly to
average household size, thus the single family prototypes generate the best results at $38 per
unit, followed by the townhouse prototype, multi-family rental, and multi-family condominium
at $30, $23, and $21 per unit respectively. Because discretionary sales tax revenues are based on
population only, the nonresidential prototypes generate no revenue. Interest income cannot be
attributed as a growth related revenue and is not factored in this analysis.
This fund is used a conduit for financing projects in the General Fund and Capital Improvements
Fund. The transfers to these funds are included in the prototype results for those funds. Because
this is a special revenue fund, it is assumed that the unappropriated funds will be spent on
projects that will vary with population and jobs. Results for the residential prototypes relate
directly to average household size. The single family prototypes generate the highest annual
costs at $39 per unit followed by the townhouse prototype at $31 per unit, the multi-family rental
prototype at $24 per unit, and the multi-family condominium prototype at $21 per unit.
Nonresidential results relate directly to employment density per 1,000 square feet. The office
prototype has the highest annual costs of $68 per 1,000 square feet, followed by the industrial
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Tischler & Associates, Inc.
Prototype Land Use Fiscal AnalFsis
Sebast~'an, Florida
flex prototype at $53 per 1,000 sq ~are feet and commercial/retail prototype at $42 per 1,000
square feet. i~
E. Annual Revenues and Ex~ nditures for Capital Improvements Fund
The tables below summarize the annt~lized revenues and costs for each prototype based on the
methodology discussed in the separate, LOS document.
RESIDENTIAL (Per Unit) NONRESIDENTIAL (Per 1,000 SF)
Revenue 3ingleFamil~ SingleFamil] ~ingleFamily Multi-Family Multi-Famil Commercial/ Industrial
Local OlYdon C, as Tax $191 $19 $19 $1~ $11 SL~ $( ~] ~
Residential results relate directly to average household size as funds transferred from the General
Fund, Local Option Gas Tax Fund, and Discretionary Sales Tax Fund are all based on
population. The single family prototypes generate the highest annual revenues at $207 per trait
followed by the townhouse prototype at $166 per unit, the multi-family rental prototype at $114
per unit, and the multi-family condominium prototype at $128 per unit. Since all of the revenues
are based on population, the nonresidential prototypes generate no revenue.
Revenue from grants and other revenues cannot be attributed to growth and are not included in
this analysis.
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Tischler & Associates, Inc.
Prototype Land Use Fiscal ,~nalvsis .~ Sebastian. Florida
Because of the average cost approach utilized in a p~totype land use analysis, average
household size and vehicle trip generation rates drive the ovl~rwhelming majority of costs for the
residential prototypes as shown in the table above. Expend~ures on roads account for the largest
portion of capital expenses for the residential prototypes fo/lowed by expenditures on recreation,
sidewalks, public works facilities, and police respectively). Note that capital expenditures for
recreation and sidewalks are functions of population only. The single family prototypes have
generate the greatest annual capital costs at $250 per unit. The towrthouse prototype have the
next greatest annual capital costs at $176 per unit. As a ~esult of having smaller household size
and trip generation rates, the multi-family prototypes generat~ the smallest capital costs annually
at $164 for rental units and $146 for condominium units.
For the nonresidential prototypes, expenditures on roads account for the largest portion of capital
expenses followed by public works facilities and polic~. The commercial/retail prototype
generates the greatest annual capital costs at $286 per 1,000 square feet primarily due to higher
trip generation rates. High employment density per 1,000 square feet influences the annual
capital costs generates by the office prototype of $140 per unit. The industrial flex prototype
generates the lowest annual capital costs of $100 per unit.
IV. APPENDIX - SUPPORTING DATA
This section summarizes the current population, number of housing units, persons per household,
and employment in Sebastian. These values are used to determine the residential cost and
revenue factors summarized in the sections below.
A, Population Estimate
The estimated population at the beginning of 2002 is 17,816. This is based on population data
from the University of Florida Bureau of Business and Economic Research (through 4/1/01),
building permit activity from April 2001 to December 2001, and persons per household data
from the 2000 U.S. Census.
Because Sebastian is a summer vacation destination, TA has estimated a seasonal population
component. To estimate the seasonal population associated with housing units, TA utilized
persons per household data from the 2000 Census (discussed further below) for different housing
types and the number of housing units classified for "seasonal, recreational, or occasional use ".
Total seasonal population in housing units is estimated at 448 (see the table below).
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Prototype Land Use Fiscal Analysis Sebastian. Florida
Population Estimate January I, 2002
City of Sebastian, Florida
Population Estimate 4/1/01 (1)
Residential Building Permits Issued 4/1/01 to 12/31/01 (2)
Residential Vacam7 Rate (3)
Esfimtaed Occupied Housing Units
Persons Per Household (4)
Estimated Population in blew Housing Units
251
3.5%
242
2-36
Estimated Year-round Population 1/1t02
16,796
572
17,368
Seasonal Homes (4) 190
Persovs Per Household (4) 2.36
B. Housing Units
The total number of housing units as in the City of Sebastian is estimated at 7,549. This estimate
is based on dividing the estimated January 1, 2002 population of 17,816 by 2.36 persons per
household. This estimate is used in conjunction with data on the percentage of different types of
housing from the 1990 Census to determine the number of housing units by type (data by
housing type from the 2000 Census has not yet been released). The 1990 Census data indicates
the following mix of types of housing units in Sebastian: single-family, 74%; townhouse 1.2%;
multi-family condominium .1%; multi-family rental 3.6%; other housing types 21.2%. TA
applied these percentages to the estimated 7,549 total housing units to estimate the number of
these types of housing units as of January 1, 2002.
This data will be used in determining persons per household sizes for the various residential
prototypes in the following section.
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Tischler & Associates, Inc.
Prototype Land Use Fiscal Analysis Sebastian, Florida
Housing Unit Estimate January 1, 2002
City of Sebastian, Florida
Estimated Year Round Housing Units (1)
Seasonal Housing Units (2)
7,359
190
Estimated Total Houffmg Units
7,549
Number of Households by Prototype
Hsehld
Hsehlds Mix (3)
Single Family 5,589 74.0%
Townhouse 87 1.2%
Multi-family Condominium 5 0.1%
Multi-family Rental 7 0.1%
Mobile Homes 523 6.9%
Other 1,337 17.7%
Total Housing Units 7,549 100.0%
(1) Estimated Year Round PopulaQon divided by Persons Per Household from
2000 U.S. Census.
(2) 2000 U.S. Census
(3) 1990 U.S. Census.
C. Persons per Household
Household size is an important demographic factor that helps account for variations in service
demand by type of housing. The best data available to make this differentiation is the US Census
STF1A dataset; however, at the time of this study the dataset from the 2000 Census had not been
released. In 1990, Sebastian had 4,144 occupied housing units and the blended, or weighted
average, household size for all housing types was 2.46 persons per household (see table below).
The summary data currently available from the 2000 Census indicates an average household size
of 2.36 persons per household. Using the household mix from the 1990 Census, average
persons per household from the 2000 Census and January 1, 2002 estimates for the number of
housing units and population, TA has estimated the number and size of housing units for the five
prototype residential categories. Since three of the five prototype categories involve single
family detached units (single family high value, single family medium value, single family low
value), persons per household data from this category will be used for these three prototypes.
Persons per household estimates for 2002 were determined by changing the household sizes by
type of unit in 1990 by the percentage change in the overall occupied housing unit size in 2000.
The change in the overall number of persons per household was a decrease from 2.46 persons per
household in 1990 to 2.36 persons per households in 2000 (- 4.1%). For example, the estimated
number of persons per household in single family detached units on January 1, 2002 was 2.32
persons per household compared to 2.43 in 1990.
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Tischler & Associates, Inc.
ProtoWpe Land Use Fiscal Analysis Sebastian, Florida
Persons Per Household by Type of Housing Unit in 1990
City of Sebastian, Florida
Owner-Occupied Renter-Occupied Combined
Persons Hsehlds PPH Persons Hsehlds PPH Persons Hsehlds PPH
7,440 3,068 2.43 1,619 514 3.15 9,059 3,582 2.53
24 13 1.85 103 38 2.71 127 51 2.49
12 5 2.40 223 89 2.51 235 94 2.50
9 3 3.00 61 29 2.10 70 32 2.19
72 40 1.80 40 26 1.54 l 12 66 1.70
4 3 1.33 6 4 1.50 10 7 1.43
0 0 0.00 0 0 0.00! 0 0 0.00
0 0 0.00 0 0 0.001 0 0 0.00
466 259 1.80 53 28 1.8~ 519 287 1.8l
50 16 3.13 23 9 2.5fi 73 25 2.92
8,077 3,407 2.37 2,128 737 2.8~ 10,205 4,144 2.46
Structure
1-Detached
l-AUached
Two
3-4
5-9
10-19
20-49
50 or more
Mobile Home
Other
Total
Source: 1990 US Census data fi.om STF1A.
Persons Per Household by Type in 1990
Persons Hsehlds PPH Hhld Mix
Single Family Detached 7,440 3,068 2.43 74.0%
Townhouse 93 48 1.94 1.2%
Multi-family Condominium 4 3 1.33 0.1%
Multi-family Rental 6 4 1.50 0.I%
Mobile Home 519 287 1.81 6.9%
Other 2,143 734 2.92 17.7%
TOTAL 10,205 4,144 2.46 100%
Estimated Persons Per Household by Type January 1, 2002
Persons Hsehlds PPH Hhld Mix
Single Family Detached 12,989 5,589 2.32 74.0%
Townhouse 162 87 1.86 1.2%
Multi-family Condominium 7 5 1.28 0.i %
Muki-family Rental 10 7 1.44 0.1%
Mobile Homes 906 523 1.73 6.9%
Other 3,741 1,337 2.80 17.7%
TOTAL 17,816 7,549 2.36 100%
D. Employment
The table below summarizes the number of jobs as of January 1, 2002 for each major category of
nonresidential development in Sebastian. Job estimates are from data published by Claritas, Inc.,
a pr/vate firm specializing in demographic and market data. At the beginning of 2002, Sebastian
has an estimated 1,068,000 square feet of nonresidential development. Employment in the City
is estimated at 3,685. Square feet per employee multipliers (discussed further below) have been
used to estimate nonresidential floor area.
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Prototvoe Land Use Fiscal Analysis Sebastian. Florida
Nonresidential Floor Area Estimate
City of Sebastian, Florida
2001
Jobs* Pct
Square Feet Nonresidential Floor Area
Per Employee (estimated sq ffl/1/2002)
Retai~/Commercial
Retail Trade 1,333
Personal Services 94
Entertainment/Rec Services 147
Subtotal 1,574 43.2% 400 630,000
Of)qce
Finance/Ins./Real Estate 159
Business/Repair Services 101
Pr ofessional/Health/Educ 696
Subtotal 956 26.3% 247 236,000
Institutional
Other Government 536
Subtotal 536 14.7% 173 93,000
Industrial/Flex
Manufacturing 138 550 76,000
Wholesale Trade 26 480 12,000
Transp/Com/Util 67 317 21,000
Subtotal 231 6.3% 472 109,000
Other* 344 9.4% 0 0
[Fotal at Nonresidential Locations 3,641 100.0% 293 1,068,000
Working at Home/Other 44
TOTAL 3,685
* Source: Claritas, Inc.
E. Building Area per Employee
The square feet per employee assumptions are shown for each nonresidential prototype in the
table below. To convert employment projections to gross floor area of nonresidential
development, TA will use average square feet per employee multipliers. The multipliers shown
in the table below are derived from national data published by the Institute of Transportation
Engineers (ri'E) and the Urban Land Institute (ULI). These factors are used to convert per
employee costs into costs per thousand square feet (KSF) of nonresidential floor area. In the
City of Sebastian, a general office building of approximately 25,000 square feet is a suitable
prototype for future office development. This size office building has an average of 247 square
feet per employee. For retail jobs, a prototype development in Sebastian is a shopping center of
approximately 100,000 square feet. A commercial development of this size will have
approximately 400 square feet per employee. For jobs in the industrial/flex category, it is
assumed there is an average of 480 square feet per employee.
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Proton,pe Land Use Fiscal Analysis Sebastian, Florida
Employee and Building Area Ratios
City of Sebastian, Florida
Wkdy Trip Ends ~/kdlj Trip Ends Emp Per Sq Ft
Per 1,000 Sq Ft* Per Empto!lee* LO00 Sq Ft Per £mp**
Land Use (ITE code)
Commercial/Shopping Ctr (820)
50K ~ross leasable area 87.31 na 2.86 350
100K gross leasable area 68.17 na 2.50 400[
200K gross leasable area 53.22 na 2.22 450
400K gross leasable area 41.56 na 2.00 500
Big Box Retail (815) 56.63 28.84 1.96 509
Restaurant (832) 89.95 na 5.00 200
General Office (710)
25K gross floor area 18.31 4.53 4.04 247{
50K gross floor area 15.59 4.11 3.79 264
100K gross floor area 13.27 3.72 3.57 280
[nstita tional
Government Office Building (730) 68.93 11.95 5.77 173I
Industrial/Flex
Business Park (770)*** 12.76 4.04 3.16 31~
Industrial Park (130) 6.96 3.34 2.08
Manufacturing (140) 3.82 2.10 1.82 550]
Warehousing (150) 4.96 3.89 1.28 784
Lodging (per Room)
Motel (310) 8.92 14.34 0.62 1,608
Hotel (320) 9.11 12.81 0.71 1,406
* Trip Generation, Institute of Transportation Engineers, 1997.
** Square feet per employee calculated from lzip rates except for Shopping Center data, which are
derived from Development Handbook and Dollars and Cents of Shopping Centers, published
by the Urban Land Institute.
*** According to ITE, a Business Park is a group of flex-type buildings served by a common roadway s
The tenant space includes a variety of uses with an average mix of 20-30% office/commercial and
70-80% industrial/warehousing.
F. Average Daily Vehicle Trips
The table below provides a summary of the vehicle trip calculations used in this analysis. This
data will be used for determining the average cost per trip of Public Works Road and Drainage
for the various prototype land uses. As the table indicates, there is an average of 50,943 vehicle
trips generated by existing development in Sebastian on an average weekday. Residential
development generates 31,513 vehicle trips compared to 19,430 vehicle trips generated by
nonresidential development.
Average Weekday Vehicle Trip Ends are from the reference book, Trip Generation, 6TM Edition,
published by the Institute of Transportation Engineers (ITE), in 1997. A "trip end" represents a
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Tischler & Associates, Inc.
Proto~t~e Land Use Fiscal Analysis Sebastian, Florida
vehicle either entering or exiting a development (as if a traffic counter were placed across a
driveway). Trip rotes have been adjusted to avoid over estimating the number of actual trips
because one vehicle trip is counted in the trip rates of both the origination and destination points.
A simple factor of 50% has been applied to the Residential, Office and Industrial categories. The
Commemial/Retail category has a trip factor of less than 50% because this type of development
attracts vehicles as they pass-by on arterial and collector roads. For example, when someone
stops at a convenience store on their way home from work, the convenience store is not their
primary destination. The ITE Manual indicates that on average 37% of the vehicles entering
shopping centers are passing by on the way to some other primary destination and 63% of the
attraction trips have the shopping center as their primary destination. Therefore, the adjusted trip
factor is 32% (0.63 x 0.50).
Residential Vehicle Trips on an Average Weekday
Residential Units
Single Family
Townhouse
Multi- family Condominium
Multi-family Rental
Other
'Assumptions
Average Weekday Vehicle Trip Ends per Unit**
Single Family
Townhouse
Multi-family Condominium
Multi-family Rental
Other
Residential Vehicle Trip Ends of an Average Weekday
Single Family
Town_home
Multi-family Condominitwn
Multi-family Rental
Other
Trip Factor
26,743
256
16
24
4,473
Total Residential Trips 31,513
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Tischler & Associates, Inc.
Prototipe Land Use Fiscal Analysis Sebastian, Florida
Commercial/Retail
Office
Institutional
Manufacturing
Industrial Park
Business Park
Nonresidential Vehicle Trips on an Average Weekday
Nonresidential Gross Floor Area (1,000 sq. ft.)* Assumptions
63O
236
93
76
12
21
Average Weekday Vehicle Trips Ends per 1,000 Sq. Ft.**
CoromerciaI/Retail
Office
Institutional
Manufacturing
Industrial Park
Business Park
Nonresidential Vehicle Trips on an Average Weekday
Trip Factors
68.17 32%
18.31 50~
68.93 50%
3.82 50~
6.96 50%
12.76 50%
Commercial/Retail 13,743
Office 2,161
Institutional 3,205
Manufacturing 145
InduCxial Park 42
Business Park 134
Total Nonresidential Trips 19,430
TOTAL TRIPS 50,94,3
*Floor area estimates were derived using sq. ft. per empolyee factors from ULI and ErE
**Trip rates are from the Institute of Transportation Engineers(ErE) Trip Generation Manual (1997
G. Calls for Service
Calls for service by land use are used to determine proportionate share factors for demand on
police services. The Sebastian Police Department responded to 27,771 calls in 2001. Based on
sample data and discussions with City staff, 66% of the calls for service were to residential
addresses with the remaining 34% of calls to business addresses.
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Tischler & Associates, Inc.