Sumter County commissioners began a discussion Tuesday night about raising road impact fees, a key issue related to the ouster of three incumbent commissioners in this year’s primary and general elections.
The three incumbents lost after approving a 25 percent county tax rate increase last year, sparking outrage and challengers. Road improvement and construction costs were cited as a reason for the tax hike.
On Tuesday night, commissioners talked about balancing the increased revenue of higher fees with the possibility those fees could discourage development. They agreed to resume their discussion at a Jan. 5 workshop.
Current fees are set at 40 percent of rates recommended in a 2019 impact fee study. They were increased in an Oct. 1 ordinance.
Commissioner Oren Miller said he wants to increase fees to 100 percent of the recommended amounts.
The Villages pays road impact fees of $972 for each single-family detached home while the study recommends $2,430.
“We need to have a level playing field where everybody is paying for improvements,” he said. “We’re asking the taxpayer to pay for new developments.”
Miller said the county paid $69,000 for the impact fee study, but chooses to ignore its recommendations.
But County Administrator Bradley Arnold said the recommended amounts in the study were maximums that could be defended in court.
Higher fees could prove too expensive for businesses, said Commissioner Craig Estep.
Commissioner Doug Gilpin said excessive impact fees could slow or end the county’s rapid growth.
“To go to 100 percent is not reasonable,” he said. “We’d be killing the goose that lays the golden egg.”
Besides residential growth, Gilpin said, The Villages also is responsible for significant commercial and industrial development, which brings in more tax revenue that new homes.
Small businesses may not be able to afford the 40 percent rate, especially considering the economic problems caused by the pandemic, said Commissioner Garry Breeden.
Commissioner Gary Search said he would like to see estimates on how raising impact fees to 75 percent of the recommended amounts, for example, would affect the county.
Road impact fees are much higher for businesses that generate considerable traffic. Fast food restaurants pay $28,294 per 1,000 square feet while other restaurants are charged $10,000 to $12,000. Convenience markets pay $22,333 per $1,000 square feet.
