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Tarpon To Consider Raising Impact Fees
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Published: October 11, 2008
TARPON SPRINGS - City commissioners found themselves between a rock and a hard place Tuesday night when considering revisions to the impact fees builders pay on new construction.
On one hand, the city has not increased its impact fees to keep up with rising costs of providing services since 1991.
On the other hand, commissioners don't want to further stifle construction during an economic slowdown.
The commission will hold hearings on the proposed increase during its Oct. 28 and Nov. 4 meetings.
Cities and counties levy impact fees in an attempt to have developers pay for their projects' impact on municipal services, such as recreation, police, fire and library. Developers usually pass along this added cost to their customers.
A report from Burton and Associates, a St. Augustine-based utility and government economics consulting firm, recommended the city increase impact fees to keep up with escalating costs of providing services.
Tuesday night commissioners balked at a suggestion in the Burton report that the city seek to recover 100 percent of those projected higher costs by raising its impact fees for each residential unit by 219 percent. Under that proposal, the total amount the city charges in impact fees would rise by $2,937, to $4,278 from the current $1,341.
Mayor Beverley Billiris said the city should be cautious and competitive in these tough economic times. It should encourage growth not chase it out of town with higher development costs.
Commissioner Susan Slattery said she is amazed that the impact fee structure has not been reviewed in 17 years. She said, however, she wants to foster economic development not deter it.
At a time when not much development is taking place, she does not want to deter anyone from coming into the city, Slattery said.
Commissioner Robin Saenger said the city shouldn't levy the lowest impact fees in the area. The developers of quality housing that city officials want to attract expect to pay impact fees, she said.
The consensus commissioners reached Tuesday night is the city staff should return with a revised impact fee schedule that allows the city to recoup slightly more than half the projected higher costs foreseen in the Burton report.
Under that scenario, a developer would pay a 66 percent increase in total impact fees, or about $890 more, per residential unit.
Impact fees for commercial structures, measured in square feet, would increase 58 percent.
Mark Schantz can be reached at 727-815-1075 or mschantz@suncoastnews.com.
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