A public hearing on increasing Sumter County impact fees will be held March 23, with a potential raise going into effect June 28.
Commissioners Tuesday night voted 3-2 to speed up their consideration of the issue after bills were introduced in the state House and Senate to cap impact fee increases at 3 percent per year. State Rep. Brett Hage, R-33, who represents The Villages, is a cosponsor of the House bill.
They also got an earful of opposition to impact fee increases during the public forum portion of the meeting.
In January, commissioners voted to postpone a fee hike until July due to the effect of the pandemic on local businesses. The legislative bills, if approved, would go into effect July 1, voiding any later attempt to raise fees beyond 3 percent.
Last month, commissioners rejected an offer from The Villages to raise fees only on its development by 40 percent. The Villages currently pays impact fees of $972 per single-family detached home. A 2019 study recommended raising that fee to $2,430.
County Administrator Bradley Arnold said concerns about the two impact fee bills go beyond the 3 percent cap. He said the bills would expand the use of impact fees to other governmental units such as school districts. Under current law, only cities and counties may assess impact fees.
“Cities and counties are responsible for the general welfare and economic development,” Arnold said. “School districts have a specific purpose.”
Impact fees are not a continuing tax, but a one-time charge for new development or expansion to help cover infrastructure costs such as roads.
County Chairman Garry Breeden, who voted against scheduling the public hearing, said the state bills will generate a lot of opposition and may not succeed.
“It’s got a long way before it becomes law,” he said. “It may not resemble what it is today.”
Commissioner Doug Gilpin called moving ahead with an impact fee increase a “knee-jerk reaction.”
“Many, many bills come to Tallahassee but very few become law,” he said.
A parade of speakers told commissioners they should not increase impact fees. Only a few supported an increase.
Savannah Hodges of Center Hill was among several young people who said higher fees would make it difficult to build their first homes. Hodges said her husband is a firefighter and she is studying to become an agriculture teacher.
“It has always been my dream to build a home on the land I was raised on,” she said, adding that higher impact fees could make it impossible to achieve that dream.
Terry Yoder, CEO of the T&D Family of Companies, said hiking the fees would hurt working people.
“I want you to think about what you’re doing to the county,” he said.
Steve Munz, owner of Galaxy Home Solutions, said commissioners should have accepted the offer from The Villages to voluntarily pay higher fees.
“Why do you want to hurt us?” he asked. “What you should do is come up with a number they can live with.”
Bruno Falvo said commissioners should study what the increases would mean and not rush into action.
“I think the only thing worse than raising the fees would be to do it in a hurry,” he said.
Supporting a fee increase, Villager Reed Panos, chairman of Fair Government for Sumter, said the higher fees would be recouped by lower property taxes.
“It’s time for this board to be responsible to the taxpayers and stop kissing up to the Developer,” said higher fee supporter Sherry Duvall.
Three challengers ousted incumbent commissioners in last year’s elections due to a 25 percent Sumter County tax rate increase enacted in 2019. At two public hearings that year, angry homeowners said the county should raise impact fees for road costs instead of putting the tax burden on them.