Aligning Impact Fees with Construction Cost Index
The Palm Bay Utilities Department recognized revenues generated were not keeping pace with rising construction costs. With impact fees from 1992 still in place and a 43-percent increase in construction costs, a proper adjustment to the fees was necessary. A study was conducted resulting in the proposal to align the city's impact fees for water, wastewater, and reclaimed water with the Engineering News Record (ENR) Construction Cost Index. The new impact fees took effect in October 2007 and will begin indexing in October 2008. The city's impact fees will automatically adjust each year in accordance with the ENR Construction Cost Index.