Impact fees on new development could help pay for growth

BY MARK J. CRAWFORD

Telegraph Editor

STARKE — The need for revenue to fund county services has reignited some discussion of impact fees.

Impact fees are charged to new development to pay for the costs of the impact of that development on infrastructure and services. The revenue can help offset impact to roads, schools, public safety, parks, libraries, water, wastewater, etc.

Restrictions on the use of impact fees make them different than general taxation. Their use to pay for new facilities must be linked to the impact of development, and the individual charged must benefit from their investment in those facilities.

Bradford County commissioners approved impact fees in the mid-2000s, keeping the fees low so as not to discourage new development, particularly housing. With a downturn in the economy, a moratorium was imposed and never lifted. 

When imposing an impact fee, the commission can’t simply pick a number out of a hat. Impact fees must be fairly allocated among those paying, which requires an intricate and costly study. The type of development and the projected impact on the infrastructure categories determines the amount paid. A single-family home would not cost as much as a multifamily development, for example. A small retail store would not pay as much as a new grocery store.

Depending on the cost of development and impact on the categories selected by a city or county, impact fees can vary widely. For example, a single-family home is charged $1,397 in Marion County, $1,513 in Levy County, $4,714 in Hernando County, $12,933 in Lake County and $16,293 in Hillsborough County, according to a 2021 Citrus County Chronicle article. 

The topic of impact fees was raised March 7 during public comments by Tom Germano, a candidate for county commission in District 4. Agreeing with commissioners that public safety and roads are priority areas, Germano said the fees could be used to fund new infrastructure. 

“I think there’s probably been at least 50 new homes built in just the southern part of the county in the last year or so, and we have a new major subdivision coming in that is going to have 32 homes along Southeast Eighth Street. The newest construction and associated residents have the largest impact on our infrastructure,” he said. 

“Many counties like Clay and St. Johns have impact fees and continue to see tremendous growth. I think our growth will continue, particularly in the southern part of the county,” Germano said, volunteering to be on a task force that could examine the issue on the commission’s behalf.

Commission Chairman Chris Dougherty continued the discussion later in the meeting. Dougherty said he has spent many hours talking to members of various associations and governments about how to drive economic development in Bradford County so that taxes can be lowered overall, and everyone can enjoy the fruits of what comes next.

“Progress is going to run us over if we don’t do something and act accordingly for smart growth and development in this county,” he said.

An impact fee paid on a single house cannot help, but fees paid on 32 new houses could begin making a difference, he said, but not if the commission simply removes the moratorium on a $500 fee on new housing. The fee was kept low to encourage development here versus other counties, but $500 per home realistically won’t go very far.

A new study would be required to truly, and lawfully, assess the impact on development on roads, fire protection, law enforcement, schools, etc. However, paying that consultant could cost six figures at a time when the county is faced with making deep budget cuts. 

Dougherty questioned whether “the juice is worth the squeeze,” but added he wasn’t opposed to impact fees.

“As we look at development and growth, we need to have some mechanism in place to be able to collect on that. But we also need to make sure that we do that in the right way,” he said.