COM 1329.014 2006-2008 - Laserfiche WebLink

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Honorable Pete Hoffmann Chair and Presiding Officer and Members of the County Council COUNTY COUNCIL Page 7 September 9, 2008 of the house, but the difference is small: only about 30% more fora 4,000 square foot house vs. a 1,000 square foot house. For simplicity's sake, Bi11324 did not vary the fees by house size. In contrast, property taxes are proportionate to value. For example, the property tax bill for a home with a taxable value of $100,000, after applying all exemptions, in the homeowners' class, is $555/yr., whereas for a home with a taxable value of $1,000,000, after exemptions, the property tax bill is $5,550/yr. A 5%across-the-boazd increase in property tax rates (to generate the equivalent of an impact fee) would cost the owner of the $100,000 home $27.75/yr., while the owner of the $1,000,000 home would pay an additional $277.50/yr. In this sense, impact fees can be considered regressive compared to property taxes, again, if the homebuyer bears the cost of the impact fee. 4. The County will have to budget operating funds for the new facilities, especially parks. If the County builds new parks with impact fees, it also has to budget funds to operate the parks from other revenue sources. Bylaw, impact fees cannot be used for operating expenses or salaries. ,The operating and maintenance costs for roads are relatively low compared to the capital costs, and the impact fee will not generate enough funds to greatly increase county investment in police, fire, or solid waste facilities. 5. Impact fees involve considerable administrative costs. Naturally, these fees have to be collected and put in the proper accounts. The interface with the fair share system creates some administrative issues (the prior fair share payment has to be offset against any impact fee.) The affordable housing grants and loans will also require much record-keeping and administration to determine eligibility. The impact fee program will need additional staff in Planning, Finance, DPW-Building Division, and the Office of Housing and Community Development. 6. The proposed impact fees are less than the "fair share" assessments. The current "fair share" assessment is about $11,500 for asingle-family dwelling.