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DIMOC 01-17-14 Meeting MinutesPage 1 Development Impact Model – Oversight Committee Meeting Minutes January 17, 2014 MEETING MINUTES OF THE DEVELOPMENT IMPACT MODEL – OVERSIGHT COMMITTEE (DIM-OC) Held in the Planning Department conference room of the Frederick County Administration Building, 107 N. Kent Street, Winchester, Virginia, on January 17, 2014. DIM-OC MEMBERS PRESENT: JP Carr, Bob Hess, John Lamanna, Gary Lofton, Paige Manuel, Steve Pettler, Roger Thomas, and Kris Tierney DIM-OC MEMBERS ABSENT: Brian Madagan STAFF PRESENT: Eric Lawrence OTHERS PRESENT: Patrick Barker, Lisa Fry, and Al Orndorf CALL TO ORDER The Development Impact Model – Oversight Committee (DIM-OC) meeting was called to order at 9:00 AM. The DIM-OC continued the re-evaluation of the DIM. The DIM-OC was updated on the Board of Supervisors’ December 6, 2013 work session where the DIM-OC’s recommendation to enable a transportation credit was discussed. The Board of Supervisors directed the DIM-OC to continue the DIM review to see if there are any components that might prohibit growth. The Board on January 8, 2014 did adopt a resolution implementing a transportation credit as part of proffer evaluations conducted over the next 2 years (expire/re-evaluate January 8, 2016). At the January 17, 2014 meeting, the DIM-OC • Reviewed the local tax revenues that are considered in the DIM • Reviewed the projected revenue and expenditure values for various residential development scenarios, and • Reviewed how credits could be incorporated into the DIM output when considering residential development Page 2 Development Impact Model – Oversight Committee Meeting Minutes January 17, 2014 It was noted that the DIM projects that county expenses (operational and capital $133,511) for a single family detached dwelling will exceed the tax revenue generated ($73,924) by $59,587. For a single family attached (Townhouse), the expense exceeds revenue by $39,868. It was demonstrated that capital expenditures represent approximately 7.2 percent of the annual county budget when looking at the last 10 year average. This percentage was provided by the Finance Department. The DIM does not include nor project debt service costs, solely capital costs. The DIM-OC reviewed the Revenue Categories and the Scenarios as generated and included in the DIM (materials provided as part of January 17, 2014 agenda mailing). Questions were raised regarding the purpose of the DIM and the methodology utilized during its creation. The consensus was that the DIM should accurately project capital impacts generated from new residential development, but the DIM should also recognize tax revenue which results from the new home. Whether or not the tax revenue be credited against the capital demands when considering a proffer expectation continues to warrant discussion. It was determined that a more clear understanding of the DIM methodology would be beneficial to the DIM-OC’s task of considering potential credits, and that explanation would be best delivered by representatives with Tishcler-Bise, creator of the Development Impact Model. DIM-OC Action. The DIM-OC directed staff to invite a representative of Tischler-Bise to participate in a future DIM-OC meeting in hopes of improving the DIM-OC’s understanding of the model. With the benefit of knowledge gained from a Tischler-Bise presentation/discussion, the DIM-OC will continue discussion regarding possible credits for residential and proffered phased commercial real estate tax revenue. The discussion would further evaluate how budgeted capital and debt obligations should be treated within the DIM, and within the resulting proffer expectation. Next meeting of the DIM-OC will be in February. Date and time to be determined. The meeting adjourned at 10:15 AM. Support Materials Distributed During Discussion: Output Module, Scenario: 1 Single Family Attached, 7.2% revenue credit towards capital Output Module, Scenario: 1 Single Family Detached, 7.2% revenue credit towards capital Applicant: Discussion Scenario Residential Units (number) 1 Units SFD 0 SFA 1 Residential Input Data MFD 0 Budget Summary Revenues $50,240 Source: BudSum W169 Expenses - Operating $76,819 Source: BudSum W174 - Capital Expenses - Capital $13,289 Source: BudSum W111 + BudSum W154 10 Year Average Capital Expenditures 7.2% Revenues - assignable $3,617 Total Cost of Capital Facilities Per Unit Fire And Rescue $419 3%$419 General Government $33 0%$33 Public Safety $0 0%$0 Library $379 3%$379 Parks and Recreation $1,350 10%$1,350 School Construction $10,881 83%$10,881 Total $13,062 100%$13,062 Net Cost of Capital Faclities $9,445 $9,445 OUTPUT MODULE Source: | CAFR *Capital Projects & Debt Service Applicant: Discussion Scenario Residential Units (number) 1 Units SFD 1 SFA 0 Residential Input Data MFD 0 Budget Summary Revenues $73,924 Source: BudSum W169 Expenses - Operating $113,580 Source: BudSum W174 - Capital Expenses - Capital $19,931 Source: BudSum W111 + BudSum W154 10 Year Average Capital Expenditures 7.2% Revenues - assignable $5,323 Total Cost of Capital Facilities Per Unit Fire And Rescue $564 3%$564 General Government $43 0%$43 Public Safety $0 0%$0 Library $496 3%$496 Parks and Recreation $1,766 9%$1,766 School Construction $16,731 85%$16,731 Total $19,600 100%$19,600 Net Cost of Capital Faclities $14,277 $14,277 OUTPUT MODULE Source: | CAFR *Capital Projects & Debt Service