RESPONSE TO HOME BUILDERS FLIER ON IMPACT FEES: SEPARATING FACT FROM FICTION


Once again we have heard from those who wish the Updated Impact Fee Ordinance recently approved by the Richmond Selectboard to be rejected. Once again, I disagree.

We all were greeted with a flier in or mail boxes a few days ago, one once again sponsored by the Home Builders. It urges Richmond voters to reject our new Ordinance by voting yes on tomorrow’s Australian Ballot. I urge you all to uphold the Selectboard decision and vote NO.

I have trouble with the accuracy of the information provided in the flier, and not for the first time. Since the purpose of this evening’s session is informational, let me share my views with regard to the information Home Builders has provided. I shall restrict myself to the issues raised in the flier.

The new impact fee nearly triples the existing fee.

How was this calculated since the basis of determining the fee is completely changed? In any case, it should not be surprising that there is an increase when one tries to update an ordinance such as this. It also should not be surprising the fee goes up as additional new expenses caused by new housing are included, in this case for Fire protection. Does anyone deny such costs are real? If they were fabricated, the State would not allow them. If the expenses were not incurred, the home owners get their money back.

The school portion is doubled even while student enrollment declines.

Once again, we are talking about real costs, determined by a thorough analysis of the data. I suspect this statement relates to the Home Builders Consultant report suggesting that more students will reduce our taxes, since our schools are not at capacity. I have spoken about this fable before and will say more in a moment.

The fee drives up the cost of housing.

The fee is for real costs of new housing to our community. Logically, the fee applies to those building new houses (not even to those who buy an existing home). I am pleased in these regards that Home Builders is using the term “fees” rather than “taxes”, since as I have pointed out before, we are not talking about taxes. In fact, if the school impact fee is not put into effect, then ALL of our taxes will go up. Why is it that Home Builders wants to increase your taxes and my taxes?

This fee is regressive affecting lower income households disproportionately.

As I have said before, this is a fee for real costs. Using a previous analogy, it is equivalent to the fee associated with installing a phone or an internet line. Everyone building a new house pays the same amount for this, just as we all pay the same amount when we go out to buy groceries or eat.

A recent report by Northern Economic Consulting showed this Fee Increase will result in school taxes INCREASING for Richmond residents!

My read of this report is that more students will reduce our taxes. I presume the above statement is based on the supposition, without supporting data, that the fee will mean fewer new houses will be built. In any case, again as pointed out before, the notion that more students will reduce taxes as described simply is wrong. In that fabled course, Economics 101, one learns to judge the health of an enterprise by comparing revenues with expenses. For reasons I cannot fathom, the Home Builders Consultant failed to consider expenses – even said he was not interested in doing so. Calculations have been redone to demonstrate that adding one student is a wash, even if we do not spend more money on pencils or allow the student to have lunch. And we all know there are no free lunches in life. Adding more than one student, for example the 50 or so calculated from new housing just last year, increases costs, that means TAXES, as can be shown by a careful cost analysis. I have the details but won’t bore you with them. So much for Economics 101!

This is a no growth policy

I am unaware of the hard evidence for this. My belief is that towns such as Richmond must manage their expenses carefully or we ALL will be priced out of the market. Impact fees are one of the ways to manage costs by allocating proven costs to those responsible.

Middle income people will be hurt by this increase.

Once again, I am having trouble finding the evidence for this. To iterate, we must control our costs to make Richmond affordable. Where it has been studied, including in Vermont and including towns like Richmond, it has been shown that housing usually increases town expenses. If there is no school impact fee, then everyone in all income brackets will pay more taxes, based on real costs described in our school budgets.

If this fee is imposed approximately 500 households living in the Chittenden County area would be priced out of housing!

As I have pointed out before, Home Builders was unable either to explain or defend this statement as it might apply to Richmond at the Selectboard meeting where our new Impact Fee Ordinance was approved. I still await an explanation.

There are many significant issues with Impact Fees. It is important for us all to understand what they are, so that we can make an informed decision. Unfortunately, the arguments that have been put forth by Home Builders miss many of these and distort those they consider.

The Selectboard was responsive to voter input when they revised the Impact Fee Ordinance. I urge Richmond voters to vote NO tomorrow and let the Ordinance stand.

Bob Low
Richmond, Vermont