Best of 2015: Not Enough Dollars or Sense

At the April 21 BOCC meeting, a healthy debate broke out over why and how both the Manatee County Commission and Manatee County School Board failed to act by not addressing the suspension on impact fees that has now expired. This dereliction of duty has cost the county in upwards of $100 million in uncollected fees; Commissioner Vanessa Baugh says, "nonsense."

The conversation at the meeting got serious when Commissioner Robin DiSabatino delivered a chronological history of the events that led to putting an interlocal agreement for an impact fee study on the April 21 agenda.

Assistant County Attorney William Clague cautioned DiSabatino, "I'm not sure what we'll gain to go through all of this history," adding, "What's the point? You can't get the fee back until you do the study."

DiSabatino broke from the pack of the six other commissioners that were willing to let Item # 28 (proposal for an impact fee study) be approved without discussion.

"We didn't act," said DiSabatino, adding, "The School Board did do their duty, but we didn't act." BOCC Chairman Betsy Benac also questioned DiSabatino's history lesson, and DiSabatino's responded, "If you disregard history, you're doomed to repeat it."

Commissioner Venessa Baugh said she wanted the 'nonsense' to stop, but it didn't seem she was referring to the failure to collect the fees.

Impact fees are designed to place the cost of growth (additional schools, roads, law enforcement, public safety, utilities, parks, etc.) on those moving here; thereby having growth pay for growth.

The miles of expanding roads and growing population by which law enforcement serves increases with each development. The same goes for schools, utilities and parks.

In 2009, the school board and county commission responded to the drop in new development that had been triggered by the recession by suspending all of the school impact fees, while also cutting impact fees related to transportation in half.

Those two actions reduced the revenue generated by them, from $15,576 to a estimated $5,500 (for a three bedroom house) per residential unit.

The BOCC voted at the April 21 meeting to go forward with an interlocal agreement with the school board, requesting an impact fee study. Although county attorney Bill Clague says, "It's required by law to have a survey done before any action can be taken," that is not entirely true.

There are many steps the county can take that can start plugging the leak where all the money goes. If they don't, and wait until 2016 to act (Hunzeker's plan), the county will continue to lose millions of dollars more, in addition to the $100 million or so lost since 2009 – money that will ultimately be made up for by taxpayers.

There are between 1,200 and 2,000 homes expected to receive their Certificate of Occupancy (CO) before Jan. 1, 2016. The amount of impact fees that will not be accessed to those units will average between $12-20 million.

First of all, there is no tangible evidence that 'suspending impact fees' can rejuvenate economic stability during or after a recession, but there is plenty of evidence that speaks to the compromised law enforcement and public safety caused by limited funding.

There have been 10,526 dwellings that were issued COs since impact fees have been reduced in 2009 (see below).

Mobile Homes 427

Multifamily 1,680

Townhouses 433

Single-Family 7,986

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Total 10,526

A house built in Manatee County between 2009 and the first quarter of 2015 saved on average $10,000 per residential unit. But that revenue was needed to offset the impact cost the county experienced by adding more than 10,000 additional residential units.

What Hunzeker, the BOCC and staff are doing is virtually handing over an all-y all-y in come free to those who can seal the envelope on a new residence before the fees are reinstated. The cost to the county might far exceed the estimated $12 to $20 million.

Years ago, I was told by county officials that these conditions could bankrupt the county. In my interviews with Hunzeker about these issues, his replies were always the same: I don't know; We'll be looking at that; and even: Maybe they will (See here and here).

Recently the county commission voted to approve a $95 million bond for utilities and infrastructure. Over time, with interest, that too will quickly grow to exceed $100 million.

At a recent BOCC work session, Barry Banther, Senior Partner for Banther Consulting, delivered a presentation evaluating the county's Wastewater Facility Investment Fee (the county's utility impact fee), and found it insufficient at best. Banther told commissioners and Administrative staff that over recent years, "tens of millions of dollars in fees have gone uncollected."

Before Banther left, he said it could be upwards of $60 million. This is separate from the school and transportation impact fees. The county is in the process of adjusting those collections now, but until they do, those costs will continue to grow.

Add all of these deficits: suspended school board impact fees; insufficient transportation impact fees; anemic utility investment fund fees; growing bonds, the cost of 'special approvals' routinely given to developers for things like the amount of sidewalks, greater density than allowed in the comp plan, reducing set-backs, smaller trees, etc., and what we have is the anatomy of a soon to be bankrupt county.

County officials are banking on their grandiose visions of a world class megalopolis, and they are spending our quality of life to get there. But such designs are nearing a critical mass of abuse.

John Rehill is TBT's Manatee County Government reporter. He also writes occasional opinion columns on the governments he covers.