The common assumption is that in tough economic times, local governments seek solutions at the tax and fee trough. In fact, there has been a wave of initiatives over the last several months that has done just that. However, we
Local Governments Find Economic Solutions without Increasing Fees
have seen several examples where Councils and Commissions have turned their focus to the future and have sought pro-job, pro-growth and pro-community solutions.
Belleview, Florida is attempting to pass a resolution that would establish a six (6) month moratorium on the collection of system development charges for commercial parcels. What is interesting about this approach is that the Commission is not sure what the outcome will be. They are taking a chance on an innovative approach to spark development. After the moratorium, the Commission will consider whether the anticipated economic benefits of the new or expanded commercial enterprise will outweigh the negative economic impact of the anticipated loss of system development charges occurring as a result of extending the moratorium on their collection.1
An example coming out of California is the City of Huntington Beach. The City Council will consider Ordinance No. 3824, which will temporarily supersede certain City municipal and zoning code provisions relating to the required time of payment of specific Development Impact Fees (DIF) on residential developments of 25 units of fewer in order to help stimulate the local building economy, as requested by the Building Industry Association of Orange County (BIAOC). This is an excellent example of local government working together with the business community to allow projects to continue to be developed without having to mothball them until economic conditions improve.2
The following is a list of several other examples of local governments turning to fee relief with the expectation of long term benefits:
- Key West, FL to Hold Second Reading of Ordinance Regarding a Proposed Reduction of Current Impact Fees
- Charlotte County, FL to Hold Public Hearing of Ordinance Extending the Expiration Date of the Residential and Commercial Impact Fee Rollbacks
- Hardee County, FL Adopts Ordinance Affecting Impact Fees
- Martin County, FL Adopts Ordinance Regarding an Economic Development Impact Fee Mitigation Program
- Yuba County, CA Approves Continued Freeze of Development Impact Fees Based on the 2007 Schedule
1 Belleview, FL City Commission Resolution. A Resolution Of The City Commission Of The City Of Belleview, Florida Establishing Amending System Development Charges For Water And Sewer For A Period Of Six Months; Establishing An Effective Date. Retrieved February 3, 2009, from http://www.ordinancewatch.com/files/LocalGovernment/LocalGovernment33963.pdf, pg. 4.
2 Huntington Beach CA Ordinance No. 3824. An Ordinance of the City of Huntington Beach Temporarily Superseding Certain City Municipal and Zoning Code Provision Relating to the Required Time of Payment of Specific Development Impact Fees. Retrieved February 3, 2009, from http://www.ordinancewatch.com/files/LocalGovernment/LocalGovernment33989.pdf, pg. 7.
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