By Marvin G. Cortner
Editor

Consolidation of services and transportation impact fees were the two top issues Osceola County commissioners addressed Monday in their quarterly retreat.

Commissioner Ken Smith, who will retire from the commission after the general election, said he would not be “overly optimistic” about successfully convincing other municipal governments in the county to consolidate services.

“We’ve had 911 consolidation discussions … we tried desperately to make something happen there,” said Smith, who will have served 14 years as commissioner when he leaves office, adding that both St. Cloud and Kissimmee opted out of this consolidation. “I think it is admirable and the right thing to do, but I don’t know how far you are going to get.”

Smith said the city of Kissimmee a number of years ago considered consolidating its police department with the Sheriff’s Office but the cost at the time was about the same, and the idea was dropped for that reason, illustrating the point that consolidation would not necessarily save money.

Smith, though, did point to several consolidation successes: the Osceola Library System (countywide), the supervisor of elections office (countywide) and Toho Water Authority (county and Kissimmee, with St. Cloud opting out).

Commissioner Michael Harford said he wants an honest and open discussion of the pros and cons of consolidation without the territorialism that has been expressed in the past.

“It would disturb me greatly to hear reasons why we can’t do this,” he said.

Harford said having a countywide building department with remote offices in different communities would be a good example of a way to consolidate.

Commissioner Brandon Arrington supported consolidating all 911 dispatching.

“The county’s 911 call center (off Simpson Road) is equipped to handle the entire county – there’s no reason to have three call centers. It seems a logical step,” said Arrington. “I’m sure the city of Kissimmee would love to get out from under its costs for its call center. St. Cloud is in the same situation.”

Commissioner John Quiñ-ones suggested that voters be asked about consolidation through a referendum.

“Emergency services consolidation is a no-brainer … let’s form a task force and have them tell us which areas are more viable for consolidation and then talk with the county attorney on how to get the issue before voters,” Quiñones said. “Otherwise, we will be talking until we are blue in the face.”

Commissioner Chairman Fred Hawkins Jr. said the difficult economic times would force the county and cities into consolidation, as property tax revenue is not expected to improve in the coming fiscal year.

Hawkins suggested leaving it to the county manager and city managers to talk about consolidation once the new fiscal year for the county begins (Oct. 1).

Payment plan for Impact fees?

In the midst of a plunge in commercial building permits due to the recession, county officials are considering allowing new businesses to pay their transportation impact fees over five years and possibly waiving both building permit and building review fees until the economy improves.

According to Joe Johnston, county customer service manager for impact fees, commercial building permits so for this fiscal year, which ends Sept. 30, are down 23 percent while building permits over the last two fiscal years are down 65 percent. Johnston also said impact fee revenue in the 2008-09 fiscal year was $10 million compared to less than $5 million expected for this fiscal year.

As proposed, participants in a deferral program would have to provide a down payment of 20 percent of fees owed, pay the remainder of the fees in five installments and also pay interest on the deferred amount. In addition, a lien would be placed on the property and certificates of occupancy would have to be issued within 18 months for a business to continue in the program. County staff would handle payment collection and there would be no penalty assessed if impact fees were paid off early.

Commissioners all agreed that high impact fees reduce the county’s ability to lure businesses and that a deferred payment plan could help. Commissioners also agreed that the county should look at whether the method for determining the fee amount is still appropriate.

“Maybe  the method doesn’t fit anymore,” Hawkins said. “Time payments are going in the right direction, but we need a method that is more business-friendly.”

The county’s growth management task force in coming months will meet to further consider the time payment proposal as well as the method for determining transportation impact fees.

Joe Volpe, spokesman for the Home Builders Association of Metro Orlando, Osceola County chapter, said commissioners “realize the impact fee system in place is clearly not working.”

“Transportation projects are being subsidized from the general fund because the anticipated growth is not there,” Volpe said. “Population growth has been minimal, yet some roads receive a failing grade. The failing grade is not because of new growth.”

Maria G. Toumazos, county economic development director, told commissioners that a company is considering opening a facility in Central Florida, with Osceola County in the running with Polk County.

The company, she said, in order to build a 100,000-square-foot facility of which 7,000 square feet would be office space, would have to pay about $383,000 in impact fees.

“There would be a $14 million capital investment with 300 jobs,” Toumazos said. “It’s not a level playing field when other communities say they will cover the impact fees (as an incentive).”

Toumazos said another company already in the county is waiting for an impact fee time payment plan to be established before making any decision on a 100,000-square-foot expansion.

Issues still to be worked out with the deferred payment plan include how liens would be treated in case of bankruptcy and how deferred payments might impact the county’s cash flow.

County officials said it is too early to tell whether Florida counties that have deferred fees have experienced any additional commercial development because of it.