Hernando Half Cent

WHY DO IMPACT FEES NOT PROVIDE ENOUGH FUNDING FOR OUR ROADWAY AND RECREATION NEEDS?

Hernando County uses impact fees to buy property, design projects, fund grant matches, and fund partial capital costs. Therefore, impact fees can only be used to pay for a portion of capital improvement projects. A Capital Project (i.e., road expansion, recreation improvement, etc.) is typically paid for in the following format:

Capital Project: Impact Fee + Grant + Revenue Source (Sales Tax, Gas Tax, Ad-Valorem Tax)

Here is an example of why impact fees are not a solution

Barclay Road Widening:

  • Project Cost (Purchase Right-of-Way, Design and Construction): $25,000,000. 
  • Current Funding Sources: Impact Fees 
  • Hernando County can receive a $6.4 million Grant, however, a $1.6 million match is required. 
  • Hernando County currently brings in $908, 875 a year in impact fees for District 4 impact fees at 22% funding level.
  •  If the Impact Fee is funded at four times this amount that generates $3,635,500 a year. 
  • With a $6.4 million grant (if the County can acquire it) it would take 5 years to obtain the funding to build this roadway, with the rate of development we have currently.