Impact Fees

Impact Fees

Impact Fees New Impact Fees implementation effective date April 14th, 2025. The Mayor and Council of the City of North Miami on November 26, 2024, at its regularly scheduled meeting adopted Ordinance No. 1531, an Ordinance amending and restating the City of North Miami Development Impact Fee Act established under Ordinance No. 1302, for purposes of, among other items, adopting an updated Impact Fee Study, and imposing revised rates for new development within the incorporated area of the City of North Miami that results in increased demand for system improvements for Parks and Recreation (including Library) facilities, General Government (including Police) facilities, Stormwater facilities, and new development within its water and sewer service areas that generates an increased demand for Water and Sewer facilities. The fees shall be collected by the City contemporaneously with the issuance of a building permit. A copy of Ordinance No. 1531 (November 26, 2024) can be obtained here Version OptionsImpact FeesHeadline or by requesting a copy from the City Clerk’s Office by calling 305-895-9817. The resulting Impact Fee Study Report, including the proposed new fee schedule, is linked below. Understanding Impact Fees in Our City What Are Impact Fees? Impact fees are charges imposed on new developments to cover a fair share of the costs associated with expanding infrastructure to accommodate growth. Unlike traditional negotiated developer contributions, impact fees are calculated using a standardized formula based on objective factors like the number and type of new housing units. These fees are paid once, up-front, at the time of building permit issuance, ensuring that each new project contributes its fair share to the community’s infrastructure needs. Background on Our Impact Fees The City introduced impact fees in 2010 to support infrastructure in several key areas: transportation, parks and recreation, library services, general government, police, water, and sewer facilities. Initially, these fees were set at 50% of the maximum amount calculated in a 2007 study for most categories, and at 100% of the amount calculated in a 2010 study for water and sewer facilities. Since then, these fees have not been updated. What’s Changing? We’re currently updating our impact fees to better reflect current needs and costs. This update will be effective April 14, 2025, and includes: New Stormwater Impact Fee: To address the growing need for improved stormwater management. Replacement of the Transportation Fee: Introducing a new mobility fee to better support our evolving transportation infrastructure. To assist in this process, we've engaged two consulting firms: Duncan and Associates for impact fees and NUE Urban Concepts for the mobility fee. What did the changes Involve? Comprehensive Study: A revision of our impact fees for various services and a new fee structure for stormwater facilities. Ordinance Amendments: Updated the legal framework to implement the revised fees. Extraordinary Needs: Identified and documented cases where exceptional circumstances justify exceeding usual limits on fee increases. Ensuring Legal Compliance Our revised fees will adhere to the Florida Impact Fee Act and relevant case law. This ensures that: Fees are proportional to the impact of the development. Service levels for new developments do not exceed those provided to existing developments. New developments do not end up paying more than necessary for the same level of service. These regulations ensure that fee increases are gradual and equitable across different land uses. Simplified and Consolidated Fee Structures Our update will also aim to simplify fee schedules by: Reducing the number of land use categories for easier administration. Combining related fee types, such as merging police facilities with general government fees and combining parks with library services. This consolidation will provide greater flexibility in allocating funds to address the most pressing needs across different service areas. Restrictions on Fee Increases Recent changes to Florida law impose restrictions on increasing impact fees: Increases of up to 25% must be phased in over two years. Increases between 25% and 50% must be phased in over four years. Fees can only be adjusted once every four years. Stay Informed We’re committed to keeping you informed throughout this process. For more details on the impact fee update, including timelines and public engagement opportunities, please check our website regularly. Your feedback is essential as we work to ensure that our city continues to grow in a sustainable and equitable manner. Links for supporting documentation Impact Fee Study Report (PDF) Notice of Imposition of Impact Fees (PDF) Impact Fee Schedule (PDF)