Spurning Impact Fees

The Hernando County Board of County Commissioners seems to have taken a queue from Wal-Mart and unanimously voted to “roll back” impact fees to 2001 levels, a 47% decline from current fees. The preliminary approval will be further discussed during a public hearing on November 10, after which you can be fairly certain that Rollerball ink pens will be in motion with one hundred percent accuracy, albeit with poor penmanship.

Freshman Commissioner James Adkins was apparently 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 the quick and easy retreat against the back of his chair. Mr. Adkins proved himself a valuable team player.

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

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

Mr. Stabins provided a slideshow pointing out that over 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 the matter of lowing impact fees was very effective and the request will be considered during the November 10 hearing. The $600,000 loan matched the estimated lost revenue from reducing impact fees but the loan would be repaid but the loss of impact fees would be forever.

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

Both of these civic-minded residents had made similar comments during the October 6 board meeting when discussion included suspending impact fees altogether. As was then, board members refused to take notice of their concerns.

When the time came to make the motion to schedule a 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 there was a unanimous decision to carry the issue to the next step – the 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 $324.7M while in 2004 the budget was $279.6M and $51.9M in that often-mentioned year 2001.

Also, from the Hernando County Government official website, “Total General Government Expenditures” were $29.5M (2001), $113.9M (2004) and $147.5M (2008).

And, Property Tax Revenue was $40M (2001), $54M (2004) and $85M (2008), a retreat from $90M in 2007.

Times have changed considerably since 2001 but we, as a nation and a county, cannot resort to living in a past economy. Otherwise, constructions 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 of $40,000.

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

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

This is not 2001. County revenue is declining as I write and will continue to do for an undetermined period of time. County expenditures will require further budget cuts. Reducing impact fees will serve no purpose to the majority of Hernando County residents.