Raise Impact Fees on Developers, Not Our Taxes

Letter: Put the cost of growth where it belongs
Put the cost of growth where it belongs
Posted: June 27, 2015 - 9:45pm

By Paul J. Ryan Esq.
St. Augustine Record
Put the cost of growth where it belongs

Editor: While the recent proposed sales tax is applied to all residents and visitors and raises some $24 million a year, it appears to be a totally inequitable method of raising money for capital improvement projects, such as new schools and fire stations for use by new residents.

These projects should be covered by impact fees assessed against each new home or apartment constructed. The sales tax increase is an easy fix, but it protects the developers and real estate interests, as the impact fees are only levied against the new residents who have created the need for new schools and fire stations.

A review of available records finds that the amount raised by impact fees was $4.5 million last year, which should have been sufficient over a period of several years to fund new schools and fire stations. However, out of that $4.5 million, we managed to spend $3 million on debt servicing, leaving us woefully short of our funding requirement.

The average new home in our county pays almost $12,000 in impact fees presently. And, since they are creating the need for these capital expenditures, these fees should be adjusted upward. The average California new home is assessed impact fees in excess of $28,000 — thus paying their own way.

There is no reasonable excuse for spending most impact fee money on debt service. Since the concept of growing our way out of deficit spending works only when the real estate annual taxes are high enough to cover both operational costs and capital improvements has been preempted by the Florida’s cap on such taxes, the only equitable action is a dramatic increase in impact fees, which would slow growth and demand for new schools and fire stations, while placing the cost burden on those creating the problem.

This approach would tend to gore the developers’ oxen by adding to the cost of a new home. So it will most likely not happen, due to the developers’ influence on the county commission.

Letter: Ditto!
Ditto...
Posted: June 27, 2015 - 9:45pm
By Chas Delony
St. Augustine Record

Ditto...

Editor: We all live in a market-driven economy. Until we raise the cost of growth (aka, impact Fees) to the point where our county achieves equilibrium (such as Flagler), we are not charging enough.

We are not near that point! Call me about a sales tax Increase when we are.