Builders to challenge higher impact fees

County commissioners are uncertain about the major increases they will discuss today.

By JEFFREY S. SOLOCHEK

© St. Petersburg Times,
published October 23, 2001

BROOKSVILLE -- Hernando County commissioners will get an earful today as they consider huge impact-fee increases.

Builders plan to argue loudly against the proposed new rates, which would rise by more than 50 percent for a single-family home and for industrial construction.

Chamber of commerce officials had not taken a position as of Monday, president Jeff Hooper said, but they intend to let commissioners know what the chamber thinks, too.

"These are taxes, not fees," said Bob Eaton of Artistic Homes, who heads the Hernando Builders Association governmental affairs committee.

All residents benefit from infrastructure improvements, and not just people who bring new construction to the county, Eaton said. "But the current structure is 100 percent dropped on the back of people who build new."

He called impact fees regressive, contending they have a negative impact on the economy by limiting new construction, and advocated instead a broad-based infrastructure funding mechanism such as a statewide documentary stamp surtax on all property sales.

Commissioners have not raised impact-fee rates since 1997. Since then, the Planning Department staff reported, the cost to build schools and roadways has increased.

Staff members have recommended that only one fee, which supports libraries, go down. By comparison, the road impact fee would increase by almost 50 percent for a single-family home, and the fee for schools would more than double.

"That's the legitimate cost of the impacts," County Administrator Paul McIntosh said. "There's no reason why a developer shouldn't pay that fee."

Planning director Larry Jennings said the new rates derive from complicated calculations that take into consideration the cost to add capacity to a service, such as roads, and the number of times the people using the new building would use the service.

"If new growth comes in, it places increased demands on services," Jennings said. "If you're going to maintain levels of service, you have to find a way to fund it."

The only other option, he said, is to lower the levels of service provided to the community. "The biggest thing you have to debate and discuss is your commitment to maintaining the infrastructure you have."

Commissioners said they were torn about which direction to go.

They noted that the community enjoys and expects high-quality roads, libraries, parks and other items paid for by impact fees. At the same time, they did not want to harm the economy by pushing fees too high.

"My big concern is that's a huge jump," Commissioner Betty Whitehouse said. "It's mainly going to have an impact on one industry. Plus the fact is it's going to put us significantly higher than everybody else. That I have to sort out."

Jennings said he had no evidence that higher fees lead to reductions in new construction.

Commission Chairman Chris Kingsley said he would listen closely to the staff's explanation before making a decision. He wanted to see a direct correlation between the proposed fee amount and the infrastructure need.

"If we're meeting all our needs right now, then there wouldn't be any need to raise them," Kingsley said.

He also said he would look for direction from the county School Board in setting the education impact fee, which helps pay for new schools. Superintendent Wendy Tellone said the district would send a letter to the commission in time for the 1:30 p.m. public hearing.

Only Commissioner Diane Rowden had unbridled enthusiasm for higher impact fees. She campaigned on the issue a year ago.

"You have to put the burden of the impact on the people who are causing the impact," Rowden said. "These services cost money."

-- Staff writer Jeffrey S. Solochek covers Hernando County government and can be reached at 754-6115. Send e-mail to solochek@sptimes.com.

Adjusting fees

Hernando County commissioners will consider amending impact fee levels for the first time since 1997. In most cases, the fees would increase. Impact fees are charged against new construction and are intended to pay for infrastructure improvements to support growth.

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