City Keeps Transportation Impact Fee in Check

Indexing would have raised cost of a new home in Palm Coast by $480

Palm Coast, Florida – September 18, 2008 – A 2004 City of Palm Coast, Florida ordinance adopted a transportation impact fee study and established transportation impact fees. It also provided for the annual adjustment of the transportation impact fees in accordance with the U.S. Department of Labor Highway and Street construction index. This year’s national index rose 12.5%. In recognition that local road construction cost data does not support such a large increase and recognizing the state of the local economy, the council amended the ordinance and voted to postpone any increase.
This means that the current transportation impact fee of $3,846.11 will remain in effect. Applying the 12.5% index would have led to a $480 increase in the cost of a new home in Palm Coast. The council did the right thing.
Impact and permitting fees totaling over $18,600 on new homes in Palm Coast are collected at the time a building permit is issued. Perhaps the council could see their way clear in the future to delay the transportation, parks, education, and emergency services portions of the impact fees until the time a certificate of occupancy is issued. After all, the new owners can hardly be "impacting" our city services before they move into their new home.
5 replies
  1. Lou Mecseri
    Lou Mecseri says:

    You have a choice.

    You have a choice, to pay or not to pay the impact fee.

    If you choose not to pay the impact fee, buy a pre-existing home. There is a large inventory of pre-existing homes available in all parts of Palm Coast.

  2. George Meegan
    George Meegan says:

    Builders and Realtors running City Hall?

    The $480 increase amounts to nothing when the average price of a new home is considered. The move to not go with the national average is strickly a pro builder move. The roads here in Palm Coast have been bonded to get them built, with the tax payers paying over years for the lack of funds in the cities coffers. This fact is missing in the logic used to conclude the cost of roadways is lower than national average.It’s true bonding is needed for big projects,and is the way to go, but this makes all property tax payers pay not just the new construction that is the cause of the need for the roadways. Yes special assessments are made to pay for the bonding, but it is spread over the entire budget and paid back by all. The additional funds the $480 would bring in should be put in a transportaion fund for future work. The waiving of other impact fees until time of CO is just another builder giveaway, that would slow down the completion of the houses, and would allow builders to walk away without paying the fees if they ceased business as many have done in the last few years. No, it was not a good idea for the citizens of Palm Coast, just another idea the builders sold City Hall.

  3. debi peterson
    debi peterson says:

    Understanding Impact Fees

    Impact Fees can ONLY be applied to NEW ROAD construction, caused by the impact of new residents. It cannot be used to repair roads. These fees are governed by Florida State Statutes. I ASSURE you it is not a Builder nor Realtor City Hall.
    The City of Palm Coast Transportation Impact Fee fund currently has approximately $52 million.

  4. George Meegan
    George Meegan says:

    New roads?

    Not so, the impact fees can be used for system improvements outside the new developements. That means you can widden, add trafic controls to existing roadways. Your not to reassuring, as these details are outside your "New Roads" limitation.The funds perhaps have been missused or posiby not used where they can be by law.

  5. Toby
    Toby says:

    Response to Lou

    Your argument seems logical on the surface. However all property prices are connected. A person has a choice between a new home and a comparable existing home. The new home is bound to demand a premium price. By raising the price of the new home via impact fees, the city or county effectively raise the price of comparable existing homes as well. So, in effect, everyone pays the impact fee.

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