Developers raise concerns over potential impact fees for schools

By Caroline Brauchler caroline@ocalagazette.com

Developers spoke out at the Marion County School Board workshop on July 14 to warn about negative impacts that could come from reinstating impact fees.

The school board is considering bringing back the impact fees, which were suspended in 2011, so developers will pay a one-time fee for each residence built to go toward the construction and renovation of schools as Marion County’s student population grows.

The school board’s decision will be informed by a long-range planning study conducted over the past year by Benesch, an independent consulting firm. The company looked at the district’s expected capital needs as well as the ramifications of reimposing the impact fees.

At a workshop on July 6, the school board discussed following Benesch’s recommendation to bring back the impact fees at 100% of what the firm proposed. This would make the fee about $10,693 per single family home—170% more than the $3,967 fee that was instated in 2006 and suspended in 2011, according to the study.

$4.5 million in revenue for schools.

The district currently receives funding from the Capital Outlay Millage, and it levies the maximum 1.5 mills to make lease payments, fund construction, and for transportation and technology. Millage is a tax rate assessed on a property’s assessed value, and 1.5 mills is $1.50 for each $1,000 of value.

“It turns out that on a per student basis, Marion County has the lowest funding of all 16 counties that we looked at,” Rudnianyn said.

Marion County Public Schools has the funding to spend $7,996 per student per year, according to the Fiscal Year 2022-23 budget. This is below the statewide average of $9,983 per student per year, according to the Education Data Initiative.

Others suggested that the board consider either reinstating the impact fees at a lower amount or allowing for smaller homes to pay less of a fee. Kevin Sheilley, president of Ocala Metro Chamber & Economic Partnership, suggested a model for fees that mirrors the county’s transportation impact fees.

“I would strongly encourage you to consider setting the impact fee for homes under 1,500 square feet at 10% of the recommendation from the report,” he said.

If followed, this suggestion would make the impact fee about $1,069 for a singlefamily home that size or smaller. He speculated that reinstating the fee at the full 100% recommendation could cause issues for renters, not just homeowners.

“We anticipate this would cost in rent an additional $100 a month and that would occur not only within new units, but then that sets the standard for all rental units,” Sheilley said.

The school board members said they were receptive of these suggestions and wanted to consider alternative approaches that allow impact fees to benefit schools without seriously harming developers, prospective homeowners or renters.

“I can appreciate taking a tiered approach for homes under 1,500 square feet as well because I don’t necessarily think that the builder who’s building the $500,000 house should pay the same potentially as someone who’s building a smaller home,” said Board Member Sarah James.

James said she supports reinstating the impact fee at 50% initially, and then increasing it in increments over time. At that rate, an impact fee for a single-family home would cost about $5,346 initially.

Board Chair Allison Campbell agreed with the idea of a tiered approach but reiterated that the population of school-aged children is growing quickly and that a decision must be made soon to set a plan into action to help fund the construction of new schools and to expand existing schools.

frequency and rate that local governments can increase impact fees.

David Tillman, president of the Marion County Building Industry Association, spoke to the school board about his concerns that impact fees will be a detriment to affordable housing.

“The challenge we face today is to strike a delicate balance between funding our schools and ensuring the availability of affordable housing options,” he said. “We cannot allow our children’s education opportunities to suffer, nor can we disregard the importance of providing affordable housing to those who need it most.”

Tillman speculated that reinstating impact fees would cause the price of single-family homes to rise by about $10,000.

The district should also explore alternative methods of funding, said Todd Rudnianyn, CEO of Neighborhood Storage.

The school board is also eligible to levy the “school half-cent sales tax,” which, if voters approve, would directly fund the construction, reconstruction or improvement of school facilities. The county formerly had this tax from 2005 until 2009, which gave the district

“We as a board are aware that the southwest portion of our county has seen the most increase,” she said. “Part of the solution to that is to relieve pressure off of our southwest Ocala schools by building new schools in southwest Ocala and that’s exactly what was being proposed moving forward.”

While the southwest area of the county is experiencing the most overcrowding, the entire district is experiencing the strain. District-wide, elementary schools have 8% capacity remaining, middle schools have 4% remaining and high schools are the most crowded with 2% remaining capacity, according to the Benesch study.

“We did actually end the year about 1,000 to 1,100 students I think more than what the projection was,” Campbell said.

The school board will meet with the Marion County Board of County Commissioners at a joint workshop Aug. 11 to further discuss the potential of reinstating school impact fees.

Once the school board members come to a consensus on whether the fees should be adopted and at what rate, as well as any provisions necessary and a timeline, they will make a recommendation to the county commission, which has the final say on approving or turning down impact fees requests.