Spurred by proposed state legislation that would cap road impact fee increases, Sumter County commissioners voted 3-2 Tuesday night to hike fees by 75 percent.
The increases, effective June 28, mean the fees will be about 70 percent of the maximum amount recommended in a 2019 study.
The action came after nearly three hours of public comment on both sides of the issue at the Everglades Recreation Center.
Three commissioners elected last year by voters angry about a 25 percent property tax rate increase in 2019 supported the hike while two longer serving commissioners opposed it.
Impact fees are not a continuing tax but a one-time charge on new construction or expansion. The money can be used only for new roads and not for maintenance of existing roads.
In the Villages of Southern Oaks south of State Road 44, the Developer will pay $1,701 per single-family lot in the age-restricted development, up from $972. The builder of a single-family home in a non-age-restricted development will pay $4,665, up from $2,666.
Commissioner Oren Miller suggested increases to 100 percent of the amounts recommended in the 2019 study. But a motion by Commissioner Gary Search, seconded by Commissioner Craig Estep, set the amount at 70 percent.
Miller said increases to 100 percent could be reduced later.
“If the (state) legislation passes that restricts us from increasing impact fees, our hands will be tied,” he said, adding that the maximum increase would cost people building a home less than $20 a month in a mortgage.
A bill cosponsored by state Rep. Brett Hage, R-33, would limit impact fee increases to 3 percent a year and expand the number of governmental units that can impose them. Earlier this year, commissioners decided to put off an impact fee hike until July due to the strain on local businesses during the pandemic. But the proposed bill would take effect July 1, so they moved up the timetable.
County Chairman Garry Breeden said his sources in Tallahassee tell him that the proposed legislation is in trouble because of questionable language.
“It appears the wheels are coming off this bill,” he said. “It’s not going to pass.”
Estep said he was moved by comments from young people concerned that higher impact fees would prevent them from buying their first homes. After a study of fees in nearby counties, he concluded that Sumter County’s fees could remain lower than them with an increase to no more than 71 percent of the study recommendation.
Before making his motion, Search blamed some of the controversy over the issue on false information in The Villages Daily Sun newspaper.
“I do think we need to raise (fees) to a degree,” he said.
Commissioner Doug Gilpin generated applause when he said he would oppose a fee increase.
“It is a sad day to see big government come to Sumter County courtesy of these new commissioners,” he said. ”This county has prospered for more than 20 years under conservative low taxes.”
During the public hearing, some speakers urged commissioners to table the issue for more study instead of raising the fees.
“You all haven’t been given enough time to look at the tax structure of the county – what is fair to residents and what is fair to business,” said Villager Deborah Butterfield.
A few speakers said higher impact fees could cause Sumter County to lose a proposed new hospital to Lake County. But County Administrator Bradley Arnold said building the non-profit hospital, which would not pay property taxes, over the Lake County line would not hurt Sumter County if it spurs development of for-profit businesses nearby.
Village of Osceola Hills resident Marilyn Iskra said higher impact fees would make it more difficult to build affordable housing.
“By jacking up impact fees, you would implement a classist, regressive tax,” she said.
Representing a developer, Patrick Salmon said the pandemic has damaged supply chains.
“Now is not the time for the board to take action to hinder economic growth,” he said.
Geneva Mock said a $75,000 impact fee imposed on her business in Fort Myers caused her to sell the property.
“You are making a big mistake because small business owners will tell you to go fly a kite,” she said.
Other speakers said the fees should be increased.
Village of Gilchrist resident Dan Warren said commissioners need to address the gap between the age-restricted amount paid by The Villages and the fee for a single-family home in an unrestricted development.
“I prefer a surgical approach,” he said.
Sherry Duvall criticized the “scare tactics” used by the Daily Sun to fuel opposition to higher fees. She also blasted Hage for cosponsoring the bill to cap impact fees while receiving income from The Villages.
“Everyone here is a hostage of The Villages Developer,” she said.