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 S.Burlington- Northern Economic Consulting (NEC) has released a study commissioned by the Homebuilders and Remodelers Association of Northern Vermont (HBRA/NV) which shows that there is no financial reason to levy a new proposed impact fee in the town of Richmond, VT.
Dick Heaps of NEC says, “New housing with school children will not increase the financial burden of Richmond residents – rather new housing will reduce school taxes paid by Richmond residents.”
Total enrollment in the Richmond School System is declining. Heaps notes that, “This decline is not limited to Richmond schools, but is happening in nearly every town in Chittenden County and in the state as a whole. Forecasts by the U.S. Census Bureau confirm that this is expected to continue for the next twenty years.”
The proposed June 2005 Richmond School impact fee assumes a single-family home will send 0.70 children to the Richmond public schools and would levy a one-time school impact fee of $2,828 on a new single-family house. However, given the current Vermont school finance law (Act 68) this new home would lead to a reduction of school property taxes in all of Richmond of more than $2,316 per year throughout the foreseeable future.
Also troubling for HBRA/NV is the impact the ordnance fee will have on affordable housing.
“Northwestern Vermont currently has a critical shortage of affordable housing. If this ordnance is passed another 414 households in Northwestern Vermont will be priced out of Richmond,” said Tayt Brooks, Government Affairs Director of the HBRA.
For a copies of the report visit http://www.vtbuilders.com/
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Mr. Heaps of Northern Vermont Consulting (NEC) is wrong about new students easing our school financial picture. His report, commissioned by the Home Builders and Remodelers Association of Vermont, the Northwestern Board of Realtors and The Vermont Association of Realtors, shows a lack of understanding of how school budgets are built and financed.
New housing with new students will not decrease the financial burden for Richmond Schools. Each student costs more to educate than is received from the State, so each new student increases the financial burden on Richmond taxpayers.
In the cost per student calculation, Mr. Heaps failed to adjust the numerator, i.e. cost. Richmond is a member of the Chittenden East Supervisory Union. Another student from Richmond in grades 5-12 means our bill from Chittenden East will be bigger and there will be no reduction in cost per pupil and no reduction in taxes. Another student at Richmond Elementary School (K-4) means our assessment for Special Education and Transportation will be larger, as these services are Chittenden East services and assessed according to student number. Even if the new elementary student fits into an “empty” space in a classroom, there will be more educational and building expenses.
These and other issues with the Heaps Analysis are included in a companion piece posted on this web site, entitled: “The Impact of Impact Fees”.
Impact fees do reduce school taxes, as shown in the Town Report on the School revenue page. What they do is to reduce the size of the increase in financial burden to Richmond taxpayers that otherwise would occur. Without the School Impact Fee, current Richmond residents or those who move here into current housing will pay more.
There may be reasons to oppose Impact Fees. Impact Fees do, however, help meet the increased financial burden that accompanies new students.
Respectfully,
Liz and Bob Low
Richmond Vermont