ISSUE #1: GROWTH . . . . . . . . . . . HOW DO WE PAY FOR IT?

Please Note: The Alternative Revenue Task Force decided in June 2004 to recommend an Adequate Facilities Tax rather than an Impact Fee to the County Commission. Since the Impact Fee is no longer a viable option, the RNA supports the County Commission's resolution for an Adequate Facilities Tax in order to lessen the burden of growth on the property tax payers.

BACKGROUND

 IMPACT FEES: BACKGROUND

WHAT ISN'T WORKING & WHY

Why do we need a new source of revenue?

Roughly $842,000,000 of infrastructure is going to be needed as Rutherford County is expected to grow about 75% by 2025. This according to a study performed by the Tennessee Advisory Commission on Intergovernmental Relations and the Center for Business and Economic Research at UT Knoxville. Consequently, we can expect property taxes to go up every year just to pay the bill for growth with no improvement in quality of life.

The more we grow the poorer we become! This growth impacts more than pocketbooks. The quality of life is also a victim. It takes more time to get to work, to shop, to go to school, to practice soccer, to take the family to dinner, to practice our faith, and to find a quiet park to recharge our batteries.

This expected steady decline in our quality of life can be stopped with impact fees. These fees are needed so that the growth that is coming to Rutherford County pays its way and is not a burden on others.

HOW & WHY IMPACT FEES WORK

RESEARCH & DOCUMENT LINKS 

SUCCESS STORY: SMYRNA

FAQ

ACTION

CURRENT EVENTS & NEWS!

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BACK TO MAIN IMPACT FEE PAGE

Impact fees are imposed on designated types of new construction and are used to pay for the cost of providing the infrastructure and many public services required to serve that new development. Also, collected impact fees may only be spent on the specific infrastructure needed for new development whereas development fees go into the general fund and may be spent on broader applications.

In general, impact fees are used for infrastructure such as structures, roads, equipment, and personnel associated with new construction. Example structures would be schools, firehouses, police buildings, roads equipment storage sites, and emergency services. Equipment examples are telephones, desks and initial supplies of consumable items such as blackboard chalk; impact fees would not be used to purchase replacement equipment and to cover other recurring costs. Impact fees also need to pay the initial expenses of personnel hired to provide services for the new construction. For example, it takes about a year for property taxes to work their way into the government cash flow cycle. As a result, the impact fee can also pay salaries, benefits, and initial job related training for personnel added as a result of development.