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: SMYRNA, TN - AN IMPACT FEE SUCCESS STORY

WHAT ISN'T WORKING & WHY
 

From the Daily News Journal - July 13, 2003

Cutting taxes in Smyrna: Mayor Spivey oversees two years of cuts

By John Callow / Staff Reporter

For the second straight year, Smyrna is dropping its property tax rate, and that makes city officials feel pretty good about what's happening in the town, the city's mayor said.

Two years in office has changed Spivey's perspective on the office he holds. *

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Murfreesboro has passed a budget with no tax increase, Rutherford County passed a budget with a 27-cent property tax increase. Smyrna's going the opposite direction. What happened?

It ties back to a lot of things. The main thing is fiscal responsibility with our budget. We've taken a different direction with budgeting than how it's been done in the past.

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What's been the impact of impact fees?

We had a lot of commitments that were made by the previous administration for what those fees were going to cover from the standpoint of capital improvements and things of that nature. Impact fees have provided something over $1 million for our budget. We're doing them on residential and commercial, and just before we came into office, it was put on industrial. I don't necessarily agree with the industrial part because I think we're out here trying to get industry and we're finding ways to discourage them when they step up to the plate. I think our council will be looking at that very, very carefully this year now that we've got a handle on our budget and know where our revenues are coming from. I don't feel we should stymie industry by putting impact fees on them nearly as heavy as we've got right now.
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Are your impact fees having any effect on residential building?

We are not building as many houses or issuing as many permits as La Vergne, maybe. However, the value of our permits is substantially more. We are satisfied with our growth. It could be very rampant. I'm sure impact fees are a bit of a deterrent. I build a few houses. It's not a palatable thing to do, but yet it's necessary and I do feel growth has to pay its way. Without impact fees we would probably have had some problems doing some of the things we've done. With everything put together, we've been very successful and able to toe the line on our taxes - and reduce them two years in a row.

The state's facing major problems. We know the county is facing major problems: where do we get more money to do what we need to do, especially with our schools.


HOW & WHY IMPACT FEES WORK
 
RESEARCH & DOCUMENT LINKS 
 
SUCCESS STORY: SMYRNA
 
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Now a collector's item:

 

* Excerpts from an election campaign letter sent by Bob Spivey to the residents of Smyrna on September 27, 2001:

"I'm positive that we do not define progress by raising property taxes, ignoring the concerns of citizens and imposing excessive fees to discourage businesses from opening their doors in Smyrna.

"Consider the current administrations results:

  • charging high impact fees which drive away businesses and the jobs and sales tax revenues they generate.

"Is this really progress?

"I don't think so. In my life, I've discovered that if you want different results tomorrow, then you have to change what you are doing today."

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