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Hernando Today

Reducing impact fees: A gift to builders, a burden to residents

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Ron Rae

The Rae Way

Published: November 2, 2009

The Hernando County Commission seems to have taken a queue from Walmart and unanimously voted to "roll back" impact fees to 2001 levels, a 47 percent decrease.

The preliminary approval will be further discussed during a public hearing on Nov. 10, after which you can be fairly certain that Rollerball ink pens will be in motion with 100 percent approval.

Freshman commissioner James Adkins had apparently been chosen to broach the subject as his timidity inferred an initiation into a fraternity of elitists. His sense of relief for the accomplishment was evident with a quick and easy retreat against the back of his chair. Mr. Adkins must be proud to have become a team player.

Commissioner Rose Rocco charmed in with similar support, pointing out that targeted construction sites would be located in vacant lots and will be of little impact to the immediate roadways. But, since when are county impact fees micromanaged? No wonder residents living on limerock roads are always left in the dust of government spending.

Next up was another rookie player on a roster of right-thinking members among the board of Hernando County trustees, John Druzbick. He effectively rolled a punt of concurrence to veteran Commissioner David Russell who, with statesman-like conduct, gave nods of approval before he begrudgingly gave way to Mr. October, Commissioner Jeff Stabins.

Mr. Stabins provided a slideshow pointing out that during the past few years county commissioners had approved a glut of housing projects beyond the need of a community whose economic sustainability of growth didn't support responsible planning with low-paying jobs being the mainstay of employment.

A well-crafted segue into the benefits of securing a loan from the county to boost his efforts to continue the Housing Enhancement Loan Program (HELP) was met with resistance, but Stabins' leverage to deliver a consensus vote on lowing impact fees was very effective; his request will also be considered during the Nov. 10 hearing. The $600,000 loan matched the estimated lost revenue from reducing impact fees. The loan would be repaid, but the loss of impact fees would be forever.

Calm and collected, community activist Janie Baldwin pointed out the misguided waste of giving away taxpayer money to the benefit of the select group of self-serving building contractors. Former Planning and Zoning Commissioner Anthony Palmieri was less kind, chastising the commission for considering an option that will benefit few residents and short-change the county's need for every source of income available.

When the time came to make the motion to schedule the public hearing, Commissioner Druzbick haphazardly attempted to verbalize a motion to put the measure up for a vote. He was prompted with the help of Russell to make residential, mobile home, commercial and industrial impact fees rolled back to 2001 levels. Adkins readily seconded the motion and before you knew it, a unanimous decision had been made to carry the issue to the decisive public hearing.

Commissioners repeatedly claimed that Hernando County expenditures are "similar to a 2001 budget" and "we're living at that level now in 2009."

Let me display some numbers. The 2010 proposed budget is $324.7 million while in 2004 the budget was $279.6 million and $51.9 million in that often-mentioned year 2001.

Also, from the Hernando County Government official Web site, "Total General Government Expenditures" were $29.5 million in 2001, $113.9 million in 2004 and $147.5 million in 2008.

And property tax revenue was $40 million in 2001, $54 million in 2004 and $85 million in 2008, a retreat from $90 million in 2007.

Times have changed considerably since 2001 but we, as a nation and a county, cannot resort to living in a past economy. There can be no comparison. Otherwise, construction workers would be working at a median hourly wage of $11.57 instead of the $13.71 last year. And Hernando County firefighter/medics earning $47,500 in 2008 would roll back to the 2001 income level of $40,000.

Also, take into consideration the rising costs of construction materials.

The Associated General Contractors of America (AGC) reported between August and September of this year there were significant price increases in copper (10 percent), aluminum (2 percent) and steel (3 percent). All three products are essential components for the majority of construction projects. AGC also predicted by the end of 2009 that lumber prices will drop 7 percent with a 4 percent increase in concrete and, of major concern to the county, an anticipated 33 percent increase in the cost of asphalt.

This is not 2001. County revenue is declining and will continue to do so for an undetermined period of time. The imbalance of county revenue and expenditures will require further budget cuts.

Reducing impact fees will serve no immediate or even long-range purpose to Hernando County residents. Expect the lobbying efforts of homebuilders to successfully construct a vote of allegiance from members of the BOCC.

Ron Rae, a regular columnist for Hernando Today, lives in Spring Hill. He can be contacted at hernandoron@yahoo.com.

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