Impact Fees Remain At 30 Percent

SEBRING - Think of it like this. Inflation is jacking up the price of gasoline and milk. So impact fees should be adjusted for inflation too.

At least, that was the thinking of the Highlands County commissioners, who decided Tuesday to index - their word - impact fees.

When new housing additions are built, the county and cities recoup the cost of adding streets, parks, police and other infrastructure through impact fees. So, as the prices of asphalt, land, sod and new schools have risen, the county asked engineer Ramon Gavarrete to document how much.

"I didn't allow any estimates," said Jack Richie, chairman of the citizen-run Impact Fee Review Committee.

According to the indexing adjustments schedule, parks and recreation costs jumped 15.9 percent, transportation rose 7 percent. Three percent adjustments were needed for correctional facilities, fire-rescue, emergency medical services and libraries.
The commissioners voted for a similar indexing last year.

"I'm confused," said commission Chairman Edgar Stokes. "I thought when it was indexed, it was indexed. I didn't know we had to vote for it every year." Yes, they do, Gavarrete and Richie informed.

Although he didn't see a tremendous economic impact from indexing, Commissioner Andrew Jackson spoke against it. "We really ought to take a hard look at that and defer the index until the certificate of occupancy is issued." He wound up voting for indexing, while Guy Maxcy cast the only vote against it. Commissioner Barbara Stewart was absent.

The commissioners didn't change the percentage of impact fees collected though. When they passed the law in 2006, they decided to implement fees at 25 percent of the full rate, and go up 10 percent per year.
When the economy soured, they decided in 2007 to raise fees only 5 percent.

"We swore in blood, almost, to continue at 5 percent a year from here on out," said Jackson, protesting that his fellow commissioners decided to leave the collection rate at 30 percent. "All of us committed ..." Stokes shook his head from side to side.

"No?" Jackson acknowledged. Still, he thought it was a mistake not to raise impact fees this year, but got no agreement.

This was despite a letter from Bernis Gainer, director of the county office of management and budget.
"Due to declining sales in the midst of the current economic downturn, the FY 07/08 revenue estimate of $9.1 million has been revised to $7.8 million, a 14 percent decrease," Gainer informed the commissioners.

"Please note the low fund balance levels," he wrote. Several balances, like libraries and fire rescue, are in the red this year. "Some projects may have to be reduced, eliminated or delayed...."