Small Town News

Use of impact fees limited by state law

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At a hearing on Morgan County's proposed zoning ordinance, one citizen commented, "If we have a reasonable $5, 000 impact fee, 1, 200 new homes would bring in $6 million."

Although the arithmetic is correct, the county coffers would not exactly be enriched by that amount, thus allowing the county to spend the money freely.

Impact fees can be levied on new development as a condition of the issuance of a building permit to fund a portion of capital costs for improvements to a public facility or service.

The State Code says: "Revenues collected from the payment of impact fees shall be restricted to funding new and additional capital improvements or expanded or extended public services which benefit the particular developments from which they were paid."

The law holds that "the use of such funds shall be restricted to areas wherein development projects are located."

Other clauses state that impact fees must be earmarked and kept in a special account and

only spent on projects specified in the capital improvement plan.

Impact fees must be used within six years or refunded unless there are "extraordinary and compelling reasons" to extend the time. In Jefferson County

Jefferson County is the only county in West Virginia collecting impact fees. The fees have been in effect for six years and have been used to build and expand schools, fund fire, EMS and police projects, and for parks and recreation projects.

Mark Schiavone, director of Planning & Management and Impact Fee Coordinator for Jefferson County, said there are three ways to handle growth.

You can do nothing, which is what happened in Jefferson County for a long time and led to overcrowded schools and not enough public services, he said.

You can put bond issues on the ballot, which is just another way to raise everyone's taxes, or you can impose impact fees and load the cost of growth on the growth itself, he said.

Schiavone said Jefferson County created a capital improvement plan two years after passing a zoning ordinance.

"The plan is supposed to be an annual document. We plan for the current fiscal year and five years out, "he said.

The capital improvement plan is approved by county commissioners and used as a tool to decide whether projects may be funded by impact fees.

Asked if the impact fees are used directly in the developments that pay them, Schiavone said, "Yes and no."

Using impact fees to help pay for a new school or expansion of a school benefits everyone by making all classrooms less crowded, he said.

Another example he cited is expanding fire department facilities and equipment so communities "do not see longer times for fire response."

"But we do track our fee districts by magisterial district and by use, "Schiavone said.

He pointed out that you can't just spend the

money collected from impact fees on anything.

"You have to justify the taking. There has to. be a need. The level of service that was in effect when the fee was collected should not change over time or, at least, not degrade, "Schiavone said.

For example, he did not approve using impact fees for a fire fighting helicopter or a swimming pool at a local school "because they don't have one now."

Impact fees cannot be used for maintenance or repair of public facilities or for operation or personnel expenditures.

"That is our responsibility, not the newcomers', "he said.

Schiavone said impact fees have been used in Jefferson County to pay for a third of a new elementary school, three school expansions, the Hite Road Park, playground areas, a riding mower for Parks & Recreation and improvements to Little League fields.

"We really are building the things we told our residents we were going to build, "Schiavone said.



Copyright 2010 The Morgan Messenger, Berkeley Springs, West Virginia. All Rights Reserved. This content, including derivations, may not be stored or distributed in any manner, disseminated, published, broadcast, rewritten or reproduced without express, written consent from SmallTownPapers, Inc.

© 2011 The Morgan Messenger Berkeley Springs, West Virginia. All Rights Reserved. This content, including derivations, may not be stored or distributed in any manner, disseminated, published, broadcast, rewritten or reproduced without express, written consent from DAS.

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