construction

The City of Springfield will hold a public hearing and a second-reading vote at Tuesday’s council meeting regarding impact fees on new construction and developments in the city.

Last month, the Springfield Board of Mayor and Aldermen passed the first reading of an impact development fee.

At the upcoming meeting on Tuesday, June 21, this agenda item will be open for a public hearing, allowing any residents to speak whether they are for or against the proposal. The board will then vote on the resolution again. If passed on a second reading it will officially be enacted.

A system development study was conducted for the city by TischlerBise, an economic and planning consulting firm. Caron Bise, President of TischlerBise, gave a presentation to the board in April. He outlined possible developer fees and the maximum allowable charges the city could make under law, which came to $15,158.

There are two components to impact development, a utility fee and a non-utility fee. The utility fee is for water and wastewater facilities, while non-utility fees consist of general government, fire, transportation, parks and police.

While the board was initially considering the full maximum amount, they eventually decided they would do 50% of the recommended fee for general government, fire, police, transportation, parks and water and a 100% of the maximum allowable fee for wastewater.

With both of these combined, the total recommended fee will be $9,968 per residential unit. There is also a separate impact development fee for commercial properties as well.

A recommendation was also proposed at last month’s meeting for these fees to be implemented on a gradual percentage basis. If approved, beginning on Sept. 1, the city will adopt impact fees at 25% for the general government, fire, police, transportation, parks and water and 50% of the maximum allowable fee for wastewater.

Beginning Jan. 1, 2023, the city will adopt impact fees at 50% of the maximum allowable fees for general government, fire, police, transportation, parks and water and 100% of maximum allowable fee for wastewater.

“I fully realize that it would be a burden to developers to begin after our meeting in June, but yet this is a fee that needs to take place, and so I think that gives them a little over two months for the first 50% and then almost six months before we begin at 100%,” Vice Mayor Tim Harris noted during last month’s meeting.

Anyone who applies for a building permit or a water or wastewater connection for an impact-generating development, except those exempted or preparing an independent fee calculation study, shall pay a general government, transportation, fire, parks, police, water, and wastewater system development charge

This charge is in accordance with the following fee schedule prior to the issuance of a building permit or a water system development charge if outside the corporate boundaries and only to the water system. Other charges would also be applicable if connecting to the wastewater system outside the corporate boundaries.

These fees are in addition to any other fees that are currently being paid.