TO: Mayor and Commission AGENDA DATE: 9/4/2024
FROM: City Manager AGENDA ITEM: 6 - B
SUBJECT:
Title
Request approval for the Interlocal Agreement Regarding Transportation Impact Coordination between the City of Deltona and the County of Volusia.
Strategic Goal: Economic Development
Body
LOCATION:
Citywide
COST:
$ N/A
SOURCE OF FUNDS: Not Applicable
ORIGINATING DEPARTMENT:
Public Works/Deltona Water
POTENTIAL MOTION:
Recommendation
“I move to approve the Interlocal Agreement Regarding Transportation Impact Coordination between the City of Deltona and the County of Volusia.”
END
BACKGROUND:
Background
Governor DeSantis signed House Bill, 479, Alternative Mobility Funding Systems and Impact Fees, on June 25, 2024. The new law takes effect on October 1, 2023. The bill provides that if a County and/or a municipality charge developers of a new development or redevelopment a fee for transportation capacity impacts, the County and/or municipality must, by October 1, 2024:
1. Create and execute an interlocal agreement to coordinate the mitigation of transportation capacity impacts; and
2. Establish a process to collect and distribute the collected revenue.
The bill does not eliminate County transportation impact fees; however, it does encourage coordination between counties and municipalities regarding transportation impacts. If there is NO interlocal agreement, the developer receives a ten percent (10%) reduction in the impact fees and proportionate fare share agreements. In addition, the entity that issues the builder permit must collect the transportation impacts fees and distribute the proceeds to the relevant county or municipality within 60 days of payment receipt.
Currently, an applicant pays their applicable County impact fees to the County and provides a receipt to the City that accompanies their permit application showing that the other agency fees have been paid. The City then collects only those fees applicable to the City and is therefore not responsible for collection or transmission of other agency fees.
The Interlocal Agreement secures the status quo existing system between the City of Deltona and Volusia County. It confirms that the preferred option for developers to pay impact fees directly to the County, rather than being collected by the City and then remitted to the County.
End