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School Board Mulls Impact Fees

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Published: January 15, 2008

Updated: 01/15/2008 10:49 am

BROOKSVILLE - BROOKSVILLE - For the first time, the Hernando County School Board has overhauled the methodology used for education impact fees — and while the new information may be more accurate, it's not going to be cheap.
In December, a school board consultant released a report recommending the school impact fee per new single-family home be raised from $4,266 to $10,000 to cover new school construction — an increase of about 134 percent.
School board officials will discuss the recommendation at a 1 p.m. workshop today, followed by a stakeholders' meeting at 4 p.m. for members of the Hernando County Chamber of Commerce, Hernando County Builders' Association and county planning staff.
The consultant, Washington-based Henderson Young & Co., cites a substantial enrollment growth for county schools, a trend that should continue.
The firm cited data that shows an increase in enrollment during the next five years and the need for new school buildings. The report also recommends increases to new multi-family and mobile homes.
The recommended increase came because the consultant's methodology is completely different from the formula district officials have used for years, finance director Deborah Bruggink said.
"We're (now) using more current information, relative to us as an individual county," she said. "The methodology is different, so the identifying costs are more."
In the past, officials based their recommendation on school construction cost information obtained from the Florida Department of Education's Web site. Since it was typically several years old, officials simply adjusted it to the inflation factor.
"Our prior calculation included the statewide average cost of construction and land," she said.
Each year, the county would then take the district's data and develop the rate.
The new methodology consists of six components for the cost of expanding a "student station," or space for each student. These include costs of permanent construction, borrowing, land, off-site needs, ancillary facilities and transportation.
Off-site growth needs include costs such as new turn lanes, and ancillary facilities include buildings such as the district office complex.
Components not included in the previous formula include borrowing, transportation and costs of off-site needs and ancillary facilities.
"I support the change in the methodology, but it's the board's ultimate decision of whether we pursue it," Bruggink said. "To me, $4,266 was an understated cost — particularly because when you add a classroom, there are many different components that go into it."
Hernando County has 10 elementary schools, four middle schools, four high schools and one combination school that houses elementary and middle school grades, kindergarten through eighth grade, with another K-8 school slated to open in August. It also boasts a charter school and education center for at-risk students in grades 4-12.
Currently, impact fees per single-family home in Hernando County total $9,027. That includes all seven impact fees. Should this consultant's recommendation be approved, the total would be $14,761. That's not including any of the other proposed six impact fees Hernando County commissioners may hike.
New homebuyers in Hernando County currently pay seven impact fees, which are imposed on developers and builders to fund capital improvements in the community.
When a change in state statute prompted the district to adopt new methodology last year, officials hired the outside consulting firm that previously prepared a similar impact fee study for Osceola County, Bruggink added.
Though that study was challenged by several groups, its methodology was upheld in court, she said.
"If there was a challenge to the methodology, we wanted to deal with a company that had successfully defended its methodology for the impact fees," she said. "A challenge would come from developers, builders and people who have to pay it (upfront)."
Critics have said it is vital the county not raise impact fees during this period of market uncertainty, and that it could further push Hernando County out of the housing market.
"There could be some questions that get raised," Bruggink said.
County officials are also reviewing its impact fee rates and are expected to make recommendations this month.
The county is required by county ordinance to review the fees every two years.
No decision will be made at today's workshop, though the board may direct staff to place the item on a future meeting agenda for a vote.
However, even if the board approves the recommended hike, the county commission would ultimately have to adopt the fee.
"It's, in essence, a county ordinance, and they will workshop it before they act on it," Bruggink said. "They can recommend less, but not more."
The 1 p.m. school board workshop will be at the district office, 919 N. Broad Street in Brooksville. The 4 p.m. stakeholders meeting will be at the district's Mobley Road location in Brooksville.

Reporter Linnea Brown can be reached at 352-544-5289 or lbrown@hernandotoday.com.

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