Impact Fees FAQ

The amount of impact fee is determined based on a series of studies and analysis which culminate in a dollar cost per service unit. The cost per unit is published each year in a table that shows the cost per service unit.

Studies and analysis include:
Long range facility plans which examine the current status of infrastructure systems, anticipated future growth, and the work needed to provide service to that demand.
Impact Fee studies which look at current costs for construction of new facilities, excludes work needed for maintenance purposes, gives credit for contributions by new development to the infrastructure systems, and links costs to service units. 

The annual fees are available. Each project will be evaluated independently and only those fees which are applicable will be charged. If a project is a change in use or expansion then the fee is the difference between the new and old use, or for only that area which creates an increase in service demand. Planning staff is happy to answer questions on the specifics of a project. An estimate of impact fees can be prepared on request.

Impact Fees are a one time fee for service used to increase the capacity of water, sewer, fire/EMS, and transportation systems to meet the needs of new or expanding development.

The City completed a contract on June 27, 2011 with Tischlerbise of Bethesda, MD to assist the City in updating its impact fee studies. The City updates its documents on a regular schedule to ensure that the fees charged are accurate to the cost of installing needed infrastructure. Several public meetings and other outreach efforts will be held to gather public input as part of the process. Draft of documents will be posted to the City's website as they become availalbe for public review.

Each of the impact fees is separate from the others. A project may not require payment of all of the fees. Fees are set by the fee schedule in place on the day a you submit a complete application for a building or service connection permit. Fees are due:

• Fire/EMS - Issuance of building permit
• Streets - Issuance of building permit
• Water - Approval of connection permit
• Sewer - Approval of connection permit

The City schedules its use of impact fees through the capital improvement program (CIP). This annually updated document is approved by the City Commission after a public hearing. The CIP is developed for all major capital expenditures, not just impact fees. People can propose changes to the document or suggest projects to be included. The CIP schedules project construction over the next five years and identifies the package of funding for each project.

Impact fees are a tool to fund infrastructure needed to support the use and development of property. The City has had an active impact fee program since 1996. They are one of several sources of funding which support City water, sewer, fire, and transportation services.

• Impact fees are used to fairly assign costs of services to those who require new public services and to limit unnecessary cost increases to existing citizens and owners.
• Impact fees help to ensure that infrastructure can be available when needed to support new development and reduce delay.
• Impact fees help to provide a level of service in public services that protects public safety.
• Stable and robust infrastructure is one of the best incentives the City can offer to encourage development within the City. Impact fees are an economic development tool which helps to support new development while preserving the services that attracted new development in the first place.
• The process of preparing impact fees for use requires an open public process that makes much information and policy available for public review so citizens can see what their government is choosing to do, where the justification for the funds is established, where money will be used, and where the benefits will go. This openness and accountability is consistent with the City's core principles and practices of good governance.