1 The Comprehensive Plan Capital Improvements Element

2 Session Agenda What’ new? SB 360 What’ new? SB 360 Other statutory & rule requirements Other statutory & rule requirements Capital projects, funding, & financial feasibility Capital projects, funding, & financial feasibility Schedule of capital improvements Schedule of capital improvements CIE amendment CIE amendment Fiscal Impact Analysis Fiscal Impact Analysis Tools you can use Tools you can use FIAM FIAM Alternatives Alternatives Q & A Q & A

3 What’s New? SB 360 (2005) made major changes to Ch. 163, F.S., regarding the CIE SB 360 (2005) made major changes to Ch. 163, F.S., regarding the CIE Definition of financial feasibility Definition of financial feasibility Proportionate transportation & school fair share Proportionate transportation & school fair share Required annual update of CIE & amendment Required annual update of CIE & amendment Inclusion of school district work program in CIE Inclusion of school district work program in CIE Inclusion of MPO projects in CIE Inclusion of MPO projects in CIE Annual summary of de minimis transportation projects Annual summary of de minimis transportation projects

4 CIE Purpose? 9J Purpose of the CIE is to: 9J Purpose of the CIE is to: Evaluate need for public facilities identified in other comp plan elements & analyze government fiscal capability to finance & construct improvements Evaluate need for public facilities identified in other comp plan elements & analyze government fiscal capability to finance & construct improvements Estimate cost of improvements & adopt policies to guide funding for which a local government has fiscal responsibility Estimate cost of improvements & adopt policies to guide funding for which a local government has fiscal responsibility Schedule improvements funding & construction to ensure that they are provided when required & include requirements that an adequate concur- rency management system will be implemented Schedule improvements funding & construction to ensure that they are provided when required & include requirements that an adequate concur- rency management system will be implemented

5 What Is A Capital Improvement? 9J-5.003(12)defines capital improvements as large-scale & high-cost physical assets or purchased to provide, improve, or replace a public facility 9J-5.003(12)defines capital improvements as large-scale & high-cost physical assets constructed or purchased to provide, improve, or replace a public facility Capital improvement cost is generally non- recurring & may require multiyear financing Capital improvement cost is generally non- recurring & may require multiyear financing Physical assets identified as existing or projected needs in other comp plan elements are considered capital improvements Physical assets identified as existing or projected needs in other comp plan elements are considered capital improvements

6 Level-of-Service Standards (1)(a) - Sanitary sewer, solid waste, drainage, potable water, parks & recreation, schools (beginning 12/1/08), & transportation facilities, including mass transit are the only public facilities & services subject to the concurrency requirement on a statewide basis, but a local government can add others (1)(a) - Sanitary sewer, solid waste, drainage, potable water, parks & recreation, schools (beginning 12/1/08), & transportation facilities, including mass transit are the only public facilities & services subject to the concurrency requirement on a statewide basis, but a local government can add others

7 LOS Standards (Cont.) (24) defines public facility to include major capital improvements, e.g., transportation, sanitary sewer, solid waste, drainage, potable water, educational, parks & recreation, health systems & facilities, & spoil disposal sites (with exceptions) (24) defines public facility to include major capital improvements, e.g., transportation, sanitary sewer, solid waste, drainage, potable water, educational, parks & recreation, health systems & facilities, & spoil disposal sites (with exceptions) CIE is to contain policies that address the LOS standards for public facilities which are within a local government’s jurisdiction CIE is to contain policies that address the LOS standards for public facilities which are within a local government’s jurisdiction

8 Financial Feasibility (32) – Means that sufficient revenues are currently available from committed funding sources for the first 3 years, or will be available from committed or planned funding sources for years 4 and 5, of the schedule of capital improvements adequate to fund projected costs of improvements necessary to ensure that adopted LOS standards are achieved & maintained within the time period covered by the schedule (32) – Means that sufficient revenues are currently available from committed funding sources for the first 3 years, or will be available from committed or planned funding sources for years 4 and 5, of the schedule of capital improvements adequate to fund projected costs of improvements necessary to ensure that adopted LOS standards are achieved & maintained within the time period covered by the schedule

9 Financial Feasibility (Cont.) (13)(d) - The Legislature recognizes that financial feasibility is an important issue because the premise of concurrency is that public facilities will be provided to achieve & maintain adopted LOS standards (13)(d) - The Legislature recognizes that financial feasibility is an important issue because the premise of concurrency is that public facilities will be provided to achieve & maintain adopted LOS standards Ch. 163 & Rule 9J-5 contain standards used to determine the financial feasibility of adopted capital programs to make concurrency more predictable & governments more accountable Ch. 163 & Rule 9J-5 contain standards used to determine the financial feasibility of adopted capital programs to make concurrency more predictable & governments more accountable

10 Financial Feasibility (Cont.) 9J-5.003(29) defines “currently available revenue sources” as existing sources & amounts of revenue presently available to the local government 9J-5.003(29) defines “currently available revenue sources” as existing sources & amounts of revenue presently available to the local government However, it does not include the intent to increase the future level or amount of a revenue sources which is contingent on ratification by public referendum However, it does not include the intent to increase the future level or amount of a revenue sources which is contingent on ratification by public referendum

11 Financial Feasibility (Cont.) (32) – Planned, currently available, or committed funding sources can include: ad valorem taxes, bonds, state & federal funds, tax revenues, impact fees, & developer contributions (32) – Planned, currently available, or committed funding sources can include: ad valorem taxes, bonds, state & federal funds, tax revenues, impact fees, & developer contributions 9J-5.016(4)(a)2. - Projected or planned revenue sources may include government intent to increase the level or amount of a source which is contingent on ratification by public referendum 9J-5.016(4)(a)2. - Projected or planned revenue sources may include government intent to increase the level or amount of a source which is contingent on ratification by public referendum

12 Financial Feasibility (Cont.) (3)(a)5. - If a local government uses planned revenue sources that require referenda or other actions to secure the source, the plan must, if the referenda are not passed or actions do not secure the source, identify other existing revenue sources that will be used to fund capital projects or otherwise amend the plan to ensure financial feasibility (3)(a)5. - If a local government uses planned revenue sources that require referenda or other actions to secure the source, the plan must, if the referenda are not passed or actions do not secure the source, identify other existing revenue sources that will be used to fund capital projects or otherwise amend the plan to ensure financial feasibility

13 Financial Feasibility (Cont.) (13)(d)1. – By 12/1/08 the CIE shall set forth a financially feasible public school capital facilities program, established in conjunction with the school board demonstrating that the adopted LOS standards will be achieved & maintained (13)(d)1. – By 12/1/08 the CIE shall set forth a financially feasible public school capital facilities program, established in conjunction with the school board demonstrating that the adopted LOS standards will be achieved & maintained

14 Financial Feasibility (Cont.) (2) – Comp plan elements are to be consistent & financially feasible determined by using professionally accepted methodologies (2) – Comp plan elements are to be consistent & financially feasible determined by using professionally accepted methodologies (3)(a)5. - For capital improvements that will be funded by a developer, financial feasibility shall be demonstrated by being guaranteed in an enforceable development or interlocal agreement or other enforceable agreement (3)(a)5. - For capital improvements that will be funded by a developer, financial feasibility shall be demonstrated by being guaranteed in an enforceable development or interlocal agreement or other enforceable agreement

15 Schedule of Capital Improvements 9J-5.016(4)(a) - The schedule of capital improvements (the schedule), for which a local government has fiscal responsibility should reflect the need to: 9J-5.016(4)(a) - The schedule of capital improvements (the schedule), for which a local government has fiscal responsibility should reflect the need to: Reduce existing deficiencies Reduce existing deficiencies Remain abreast of replacements Remain abreast of replacements Meet future demand Meet future demand

16 Schedule (Cont.) (3)(a)5. - The schedule includes publicly & privately funded projects necessary to ensure that adopted LOS standards are achieved & maintained (3)(a)5. - The schedule includes publicly & privately funded projects necessary to ensure that adopted LOS standards are achieved & maintained Privately-funded development & interlocal agreements must be reflected in the schedule if the capital improvement is necessary to serve development within the 5-year schedule Privately-funded development & interlocal agreements must be reflected in the schedule if the capital improvement is necessary to serve development within the 5-year schedule

17 Schedule (Cont.) (3)(a)6. - The schedule must include transportation improvements found in the MPO transportation improvement program to the extent that they are relied upon to ensure concurrency & financial feasibility (3)(a)6. - The schedule must include transportation improvements found in the MPO transportation improvement program to the extent that they are relied upon to ensure concurrency & financial feasibility The local schedule must also be coordinated with the MPO long-range transportation plan The local schedule must also be coordinated with the MPO long-range transportation plan

18 Schedule (Cont.) (6)(c) – By 12/1/07, if applicable, include water supply projects in the schedule (6)(c) – By 12/1/07, if applicable, include water supply projects in the schedule (13)(b)2. – If applicable, public school LOS standards are to be included & adopted into the CIE (13)(b)2. – If applicable, public school LOS standards are to be included & adopted into the CIE (13)(d)1. – By 12/1/08, include public school projects & identify school prop fair-share projects (13)(d)1. – By 12/1/08, include public school projects & identify school prop fair-share projects

19 Schedule (Cont.) (16)(b)1. – By 12/1/06 required inclusion of transportation proportionate fair share in the schedule (16)(b)1. – By 12/1/06 required inclusion of transportation proportionate fair share in the schedule Mitigation can be used if projects are “specifically identified for funding” in the schedule Mitigation can be used if projects are “specifically identified for funding” in the schedule Projects must be in the schedule if proportionate fair share mitigation is anticipated Projects must be in the schedule if proportionate fair share mitigation is anticipated (16)(f) – Transportation improve- ments funded by proportionate share mitigation must be adopted into the schedule at the next CIE update (16)(f) – Transportation improve- ments funded by proportionate share mitigation must be adopted into the schedule at the next CIE update

20 CIE Amendment (3)(b)1. - The CIE must be reviewed on an annual basis & modified as necessary in order to maintain a financially feasible 5-year schedule (3)(b)1. - The CIE must be reviewed on an annual basis & modified as necessary in order to maintain a financially feasible 5-year schedule (1)(f) - Any amendment that changes the schedule or is directly related to it, may be made once in a calendar year on a date different from the two regular amend- ment times when necessary to coincide with the adoption of the budget & capital improvements program (1)(f) - Any amendment that changes the schedule or is directly related to it, may be made once in a calendar year on a date different from the two regular amend- ment times when necessary to coincide with the adoption of the budget & capital improvements program

21 CIE Amendment (Cont.) Corrections & modifications regarding costs; revenue sources; or acceptance of facilities from dedications which are consistent with the plan may be done by ordinance & shall not be deemed to be comp plan amendments Corrections & modifications regarding costs; revenue sources; or acceptance of facilities from dedications which are consistent with the plan may be done by ordinance & shall not be deemed to be comp plan amendments (3)(b)1. – A CIE amendment is required to update the schedule on an annual basis or to eliminate, defer, or delay the construction of facilities in the existing schedule (3)(b)1. – A CIE amendment is required to update the schedule on an annual basis or to eliminate, defer, or delay the construction of facilities in the existing schedule

22 CIE Amendment (Cont.) If the annual CIE amendment is not adopted & transmitted, a local government may not amend its FLUM, except to meet new requirements & for emergencies [ (1)(a)] after 12/1/2007 unless & until it has adopted & transmitted the update If the annual CIE amendment is not adopted & transmitted, a local government may not amend its FLUM, except to meet new requirements & for emergencies [ (1)(a)] after 12/1/2007 unless & until it has adopted & transmitted the update (3)(b)2. – CIE amendments require only a single ordinance adoption public hearing (3)(b)2. – CIE amendments require only a single ordinance adoption public hearing

23 CIE Amendment (Cont.) (3)(c) - If a local government does not adopt the required annual update to the schedule or the annual update is found not in compliance, the state land planning agency must notify the Administration Commission (3)(c) - If a local government does not adopt the required annual update to the schedule or the annual update is found not in compliance, the state land planning agency must notify the Administration Commission A local government that has a demonstrated a lack of commitment to meet its CIE obligations may be subject to sanctions by the Commission A local government that has a demonstrated a lack of commitment to meet its CIE obligations may be subject to sanctions by the Commission

24 CIE Amendment (Cont.) 9J (5) – After 12/1/07, FLUM amendments must include a statement that the annual CIE update was adopted 9J (5) – After 12/1/07, FLUM amendments must include a statement that the annual CIE update was adopted 9J (8) – If amendment is the annual CIE update or it eliminates, defers, or delays a facility listed in the schedule, then a copy of the ordinance & other items must be submitted 9J (8) – If amendment is the annual CIE update or it eliminates, defers, or delays a facility listed in the schedule, then a copy of the ordinance & other items must be submitted (6) – Include the annual summary of de minimis transportation projects showing that the 110% criteria is not exceeded (6) – Include the annual summary of de minimis transportation projects showing that the 110% criteria is not exceeded

25 CIE Update? When data & analysis is updated, the CIE project criteria should be also When data & analysis is updated, the CIE project criteria should be also Define a capital item for the CIE differently than it is for your local CIP Define a capital item for the CIE differently than it is for your local CIP A capital item usually has a higher dollar amount & a longer life A capital item usually has a higher dollar amount & a longer life Include only facilities/projects necessary to maintain/improve adopted LOS standards Include only facilities/projects necessary to maintain/improve adopted LOS standards

26 CIE Update (Cont.) Discuss assumptions used to support CIE financial feasibility, e.g., Discuss assumptions used to support CIE financial feasibility, e.g., Tax or fee increases/decreases Tax or fee increases/decreases Local/regional/state/national economic projections Local/regional/state/national economic projections Reasonable expectations for the future Reasonable expectations for the future PAO projections PAO projections Inflation projections if used Inflation projections if used

27 CIE Update (Cont.) 9J-5.016(1)(c) – Existing revenue sources and funding mechanisms shall be inventoried, i.e., listed 9J-5.016(1)(c) – Existing revenue sources and funding mechanisms shall be inventoried, i.e., listed List sources along with a short explanation of what revenue is realized from them List sources along with a short explanation of what revenue is realized from them Inventory only those sources that can be/are available for capital improvement financing, e.g., you don’t have to inventory intergovern- mental transfers if those monies are not used or available Inventory only those sources that can be/are available for capital improvement financing, e.g., you don’t have to inventory intergovern- mental transfers if those monies are not used or available

28 CIE Update (Cont.) 9J-5.016(2)(f) - Forecast anticipated/new revenue sources for 5 years 9J-5.016(2)(f) - Forecast anticipated/new revenue sources for 5 years Include in forecast prop share if applicable Include in forecast prop share if applicable (32) definition of financial feasibility refers to sufficient revenues that are currently available from committed funding sources for the first 3 years, or will be available from committed or planned funding sources for years 4 and (32) definition of financial feasibility refers to sufficient revenues that are currently available from committed funding sources for the first 3 years, or will be available from committed or planned funding sources for years 4 and 5

29 CIE Update (Cont.) Integrate into your CIE only those MPO projects that are located within your jurisdiction or that maintain adopted LOS Integrate into your CIE only those MPO projects that are located within your jurisdiction or that maintain adopted LOS If you have no public schools, are not a signatory to the interlocal agreement, and/or are otherwise exempt, state that in the CIE data & analysis If you have no public schools, are not a signatory to the interlocal agreement, and/or are otherwise exempt, state that in the CIE data & analysis

30 CIE Update (Cont.) You do not need an extensive discussion of issues only to conclude that they are either not applicable to your jurisdiction or that you have no capital improvements You do not need an extensive discussion of issues only to conclude that they are either not applicable to your jurisdiction or that you have no capital improvements DCA suggests development of a public facilities capacity analysis to identify facility demands & capacity DCA suggests development of a public facilities capacity analysis to identify facility demands & capacity If needs exceed committed or planned revenues, include long-term strategies in the update to address the deficiencies If needs exceed committed or planned revenues, include long-term strategies in the update to address the deficiencies

31 Q & A

32 Resources A Guide to the Annual Update of the Capital Improvements Element at: A Guide to the Annual Update of the Capital Improvements Element at: /PDF/AnnualUpdateGuideCIE81606.pdf Chapters 9J-5 & 9J-11, Florida Administrative Code at: Chapters 9J-5 & 9J-11, Florida Administrative Code at: Sections & 3180, Florida Statutes Sections & 3180, Florida Statutes Senate Bill 360 (2005 Legislative Session) at: Senate Bill 360 (2005 Legislative Session) at: