A total loss of $276 million is projected before the policy is set to expire in 2023
Today Lee Future is releasing the latest original Quarterly Impact Fee Revenues Report. This report documents the actual revenues lost (and collected) from the beginning of the impact fee reduction policies in March 2013 through the 2nd Quarter of FY 2020.
Background on Quarterly Impact Fee Revenues Reports
The County has gone to great lengths not to provide the public with any data on impact fee revenue losses as a result of their impact fee reduction policy. By State law, the impact fee revenue reports are required to be available to the public. The County’s Department of Community Development does prepare a monthly report on impact fee revenues collected each month by type of impact fee and by impact fee district. This report is not posted on the County’s website. It is only made available to the public upon request.
From this official County data, quarterly reports have been prepared since 2013, keeping track of the cumulative amount of impact fee revenues (by type of impact fee) that have been collected as well as lost over the past 84 months. These reports have been distributed to interested citizens throughout Lee County. These reports simply present the County’s official data in a form that many citizens want to know, i.e., how much revenue are we losing from this impact fee reduction policy. County officials have steadfastly refused to acknowledge the existence of the revenues lost number.
Summary of 2nd Quarter 2020 Report
These are not projections; they are actual revenue numbers from the County’s Office of Community Development monthly reports. The “revenues lost” number is simply the subtraction of what was collected from the full rate (100% rate) to arrive at the difference—the lost revenues). * This represents the unfunded infrastructure costs incurred with the approved permits.
*The Board set the collection rates at 20% from March 2013 –March 2015; 45% from March 2015 through March 2019; 47.5% March 2019- March 2020, and each subsequent year increasing it by a 2.5% inflator.
What this means is that over the past 7 years the County has permitted residential and commercial development that necessitates $269 million in infrastructure costs for new or expanded infrastructure to support that development (based on the state-mandated impact fee update studies). However, the County has collected only $108 million of the $267 million deemed necessary to cover those costs. The $161 million deficit will need to be covered somehow in the future. The amount of revenues lost each year has more than doubled in the past 2 years—from $17 million to $37 million.
By 2023, the grand total impact fee revenue losses could be a whopping $276 million—more than a quarter of a billion dollars.