Officials must earn voters' trust.
The more Volusia County officials are dismissive of the role impact fees play in paying for growth, the more the issue becomes a political problem for them in their quest for a half-cent sales tax.
County and municipal governments are united in seeking voter approval this November for boosting the local sales tax by a half-penny to fund the area’s infrastructure needs, such as roads, drainage, etc. Officials say they need the additional revenue to meet the demands of rapid growth.
But that’s not the only tool government has at its disposal. The county also imposes impact fees on new construction that help pay for the infrastructure needs it generates. Volusia County’s rates haven’t changed in 15 years, and are lower than most surrounding counties’.
Yet, the County Council not only has resisted hiking the fees so they might better reflect the current costs of infrastructure, some members have been outright contemptuous of attempts to discuss the matter. They either insist the status quo is sufficient to handle current needs, or in the case of Councilman Pat Patterson, they argue that the issue is too complicated for the public.
But the former is impossible for the public to judge without a robust debate, which the latter attempts to cut off with a wave of the hand.
The council hasn’t done itself any favors by muddying the waters. Its latest attempt to dismiss critics was to invoke the concept of proportionate share at its March 6 meeting. “Prop share” allows developers to pay for specific projects, such as a road-widening, in whole or in part so as to expedite improvements to infrastructure needs. Councilwoman Deb Denys and County Manager Jim Dinneen suggested developers pay prop share in addition to impact fees, as a way to argue that developers already are paying their fair share.
But as The News-Journal’s Dustin Wyatt reports today, it’s not that simple. According to Jon Weiss, director of development services in Orange County, proportionate share “was never intended as a funding source for transportation.” Rather, he said, it was to ensure approved developments moved forward on time, so they wouldn’t have to wait for a road to be improved.
Developers with a prop share agreement receive impact fee credits equal to the amount they pay. If the prop share amount is less than what the developer would pay in impact fees, the developer gets a discount. If the prop share amount is more than the impact fee charge, the developer gets impact fee credits to sell to other developers who come into the area.
That’s different than the county receiving impact fee revenue that goes into a general fund for all infrastructure. In short, while prop shares may benefit certain projects, that doesn’t answer the question of whether Volusia County’s impact fees that reflect construction costs of 15 years ago generate sufficient revenues to meet today’s growth demands.
Nor does it address whether the county’s impact fee structure needs to be revamped. Council members worry that raising impact fees could increase the cost of homes beyond the means of many residents with moderate incomes. It’s a legitimate concern. But a possible solution is to do what other counties have done: charge different rates for different-sized homes. Volusia County assesses a flat rate for a new house, regardless of its size or cost. Why treat a starter home the same as a McMansion?
If local governments hope to convince voters that an increase in the sales tax is warranted, they first must earn their trust. The county’s current attitude toward impact fees only sows doubts. Instead of dismissing critics, officials should roll up their sleeves and engage them forthrightly.