To the Editor:
Just for one moment, imagine Florida had no residents and no existing businesses – none! Nameless people want to build homes and commercial properties here. This requires roads, electricity, cable, gas, playgrounds and schools, etc. Within the housing developments there will be roads, playgrounds (rec. centers and pools tennis courts etc).
Outside the developments will be all sorts of other businesses requiring the same necessities, roads, utilities etc. All of this costs money. Remember none of this is built yet but everyone wants to come here for the weather and to enjoy the amenities. So, a builder sees the risk is worth the investment to build houses and provide amenities. He spends the money to build the houses and amenities. Then he sells the houses for a profit but who pays for the amenities.
I know, create a CDD to issue bonds and pass the cost to the new homeowners who must pay the bonds over time because they enjoy the amenities. Then the local government will be formed and levy property taxes to pay for the ongoing costs of police, schools, etc. But who pays for building the schools, roads, utilities etc. required to serve the new houses and commercial businesses. Remember there are no taxpayers yet. Well, let’s assume each house and commercial development must bear a share of that cost in the form of an impact fee! Who should determine what that fee is and who should pay it. Local elected officials are responsible to provide the water, sewers, police, fire and schools so I think local elected officials would know how much they need to build the new facilities not state officials. Again, ongoing maintenance and staffing costs come from property taxes but the initial cost must be borne by the new residents and commercial property owners because there is no one else. These impact fees are the estimated cost to provide the police, fire, water, sewers, etc. and social networks we need as citizens. The cost to run and maintain these services, once built, are paid by property taxes. That is true for all bonds as well. The cost to provide amenities, within the developments, is accumulated by the developer who sells them to the local governing body. The local governing body is the CDD.
The CDD borrows the money to pay the developer and levies a bond on each property that must be bound when you buy your house. When your bond is paid on your house it is free of that initial share of the amenities that you enjoy, and you have paid your personal impact fee. Now the local government maintains and improves these amenities as necessary by charging a monthly amenity fee. No matter how you spin this issue – someone has to pay. If the existing taxpayers were not here to foot the bill via county bond issues there would be no discussions about it. Impact fees were developed and used to cover the cost of NEW DEVELOPMENT.
Since Florida already exists the easy solution is look to the existing taxpayers to pay the bill. It really has noting to do with whether or not people will come. They will come, and they will pay as this is the only alternative to where they live now. The real question is whether or not we can maintain our current desirable, friendly neighborhoods or create animosity toward those that come for the benefits but do not want to pay the full cost of what they get, instead wanting the existing taxpayers to pay for it! Don’t forget, the current impact fee is added to the cost of the house just as any increase in impact fee will be added to the price of the house. Might this affect the gross profit of the builder? Maybe, but it will not stop the growth and it will not affect existing businesses. My two cents.
Robert Nyce
Village of El Cortez