JamesBell
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DCTC Director Response to Commissioners Letter - 2007/03/06 02:21
This was published in the DC Sentinel. I do not have a copy of Commissioner Mulcare's letter. JB
Dear Editor,
This is concerning “Clarifying impact fees” written by Douglas County Commissioner Mike Mulcare (December 21, 2006 Douglas County Sentinel)
Mr. Mulcare’s attempt to clarify the impact fee issue was a welcomed event since impact fees are a very complicated and relatively new way for governments to extract revenues. In the letter, Mr. Mulcare challenged everyone to search the internet for more information on these fees. So I did. Here is what I found.
On the surface, impact fees seem to be a good way to offset the costs of expanding the infrastructure needed to sustain rapid growth. As you dig deeper, you will find that impact fees can do more harm than good and here is why.
The main argument for impact fees is it will make “newcomers” to the county pay for the cost of expanding services required to sustain the growth. In reality, impact fees are nothing more than a tax on development that will be passed on to the consumer and property owners.
Studies have shown impact fees tend to drive down undeveloped land value and artificially drive up the cost of homes, products and services in the area. For example, if ‘Joe’s Barber Shop’ wanted to expand the capacity of his shop, he would be charged a fee. The added cost of doing business will be passed on to his customers. Now his $10 hair cuts might be $13 or more. The same would apply to a restaurant. A $5 hamburger might become an $8 burger to offset this additional cost of doing business in Douglas County.
The mere discussion of impact fees is already having an impact on businesses looking to expand over the next few years. Rather than investing in this county, some business owners may find it more practical to move a few miles away to another county that does not have impact fees. This will save these businesses tens of thousands if not hundreds of thousands in fees.
In Chapel Hill, NC, officials had to suspend their impact fees because it was so prohibitive it adversely affected the housing and commercial markets and revenues began to decline. Attempting to manipulate the free market with taxes and fees will inevitably result in the county getting burned by their need or greed for dollars.
My parents built in Douglas County in 1962 when only 10,000 lived here. When the few neighbors we had wanted to pave our dirt road each homeowner paid a portion over time to cover the cost. We didn’t ask others around the county to fund our paving project. It should be noted the residences in Lithia Springs still don’t have sidewalks, nor do I want them if it means more taxes will be imposed. Over the past thirty years, we have been burdened with funding roads, sidewalks and water lines that have opened up cow fields to development that allowed people like Mr. Mulcare to move into this county without having to pay an impact fee. The taxes paid by the modest old neighborhoods of Lithia Springs made it possible for Mr. Mulcare to buy his ‘up-scale’ home.
It should be noted that in the 17 years since the passage of the Georgia Development Impact Fee Act, Cherokee county is the only Georgia County to have impact fees. Why? Because most jurisdictions have found impact fees are a greater threat to revenue. Legal costs alone can prohibit most jurisdictions from implementing these fees. Instead, they opt to manage the revenue funds that are available and deny permits to projects that can not be sustained by the current infrastructure.
One interesting aspect of impact fees is they tend to open up undeveloped land to even further devolvement which brings more homes, more traffic and more children into the schools. Impact fees are truly a complicated two edged sword that must be used carefully.
It’s not surprising to see building associations pushing back on impact fees. They have a right, as we all do, to lobby for or against issues that affect us. I have no problem with the builders opposing impacts fees outright. They know, in the end, who will truly pay these fees… we all will!
Some times ‘quality of life’ means more than special interest amenities like aquatic and equestrian centers or fill in the blank with your special project. To me, ‘quality of life” means being able to live our lives with as little tax burden as we can manage. The key word here is manage.
The citizens must ask why Douglas County is the only county in metro-Atlanta that needs impact fees to sustain growth. Cobb, Paulding, Fulton and Carroll counties don’t have these fees. What is wrong with our county? Perhaps the answer is the officials of Douglas County have failed to efficiently manage the increasing revenues collected. This problem will not be solved by impact fees, only at the ballot box.
Chairman Tom Worthan made it clear at a public meeting that we can, “build capitol projects with SPLOST dollars, but you have to maintain and operate those projects with general funds.” This also applies to impact fees. This means higher property taxes. There’s no such thing as a free lunch.
The bottom line… it’s easy to point the finger at developers and force them to pay more to do business in Douglas County but in the end consumers and existing property owners will pay the cost. Instead of spending tax dollars to hire consultants to find ways to justify new spending, taxes, and fees; we should spend a few bucks on consultants who can show us how to cut spending and find waste and fraud in government. If we can not find a better way to manage our government no amount of duct tape can mend this broken system.
Thank you,
James Bell
Douglas County Taxpayer’s Coalition
Post edited by: JamesBell, at: 2007/03/06 02:23
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