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/