Sumner County, Tennessee – In an ongoing struggle to manage infrastructure demands, Rutherford and now Sumner County are urging the state to revise legislation to enable the collection of impact fees. These fees are crucial for these rapidly growing counties to keep up with the increasing need for infrastructure development, particularly in areas like school construction.
For years, Rutherford County has been advocating for the state to permit impact fees, which are essentially taxes paid by housing developers. These funds are meant to support the county in building necessary infrastructure. Now, Sumner County has joined this cause, emphasizing the urgent need for additional revenue sources to sustain their growth.
District 6 Commissioner David Klein of Sumner County is a vocal proponent of this change. He expressed his frustration, saying, “What you have is you have a situation here where we just can’t afford the growth, but our hands are tied by the state. They will not allow us to charge impact fees on new development.” This situation puts immense pressure on the counties as they struggle to balance growth with financial sustainability.
The Sumner County Commission has drafted a resolution requesting the state to amend the County Powers Relief Act to incorporate the provision for impact fees. The current law’s restrictions are likened to having both their hands and feet tied, limiting the counties’ ability to address their infrastructure needs independently.
In the absence of impact fees, counties like Rutherford have had to resort to increasing property taxes, with a notable 16% hike this year. However, this approach is not seen as a viable or fair solution by many, including Commissioner Klein, who remarked, “It’s just not right. It’s not a fair thing to do to the citizens who are already here.”
The state advisory commission, while not taking a definitive stance on impact fees, acknowledges that adding new fees in an already expensive housing market could increase the cost of new housing. This presents a complex dilemma: balancing the need for infrastructure funding with the potential impact on housing affordability.
The financial burden of infrastructure, especially in education, is significant. Klein highlighted the cost of the new Liberty Creek school, amounting to about $55,000 per student. Impact fees could substantially aid in covering such expenses, alleviating the financial strain on existing residents and the county budget.
The debate over impact fees in Tennessee reflects a broader challenge faced by many growing regions: how to equitably fund necessary infrastructure expansion in the face of rapid development. The decisions made here could set a precedent for how such issues are approached in other rapidly developing areas.
