County Council votes against proposed impact fees for York School District. Here’s why
County Council members voted Monday night not to set up new impact fees for the York School District.
The decision came after months of study by the district to create a new revenue stream that would have addressed considerable residential growth and capacity for new students.
Impact fees are charges on new construction to offset growth costs. Fort Mill and Clover school districts have them, as do municipalities like Rock Hill, Fort Mill and Tega Cay for other public services. The proposal Monday night involved almost $12,500 per new home, more than $10,000 per new apartment and more than $11,000 per new mobile home within the York School District. Developers pay the fees up front during the permitting process, they then pass the cost on to homebuyers.
Concern over affordable housing split the council. Hours of debate included several potential compromises before an eventual all-or-nothing vote.
“If it is take it or leave it, then unfortunately I’m in the leave it category, said Councilman Joel Hamilton.
Hamilton echoed concerns of Councilman William “Bump” Roddey, that the impact fee charge on mobile homes would be almost as high as on single-family homes, regardless how expensive the single-family home is. Hamilton said charging a fee that could be 10% of the value of a mobile home kills any hope of affordable housing.
“A disproportionate amount of the burden is being placed on the people who can least afford to pay it,” Hamilton said.
Roddey said he didn’t support a Fort Mill school impact fee four years ago, at more than $18,000 per home. He did support one in Clover that the county set up at a lower rate than what state law allows -- something it didn’t do in Fort Mill. Roddey proposed or supported lower fees in York that would bring the mobile home cost down.
“I cannot foresee forcing an $11,000 impact fee on someone who’s looking to buy an affordable home, in a mobile home or a manufactured home,” Roddey said. “Whose value is a lot less. Whose impact fee percentage is going to be a lot greater.”
Chairwoman Christi Cox proposed her own reduction, over concern of a potential family in rural parts of the school district who might want to parcel off a piece of a large property for a new family home. Cox said that home would have far less impact on schools than if the owners sold the large property to developers. Cox expressed frustration there isn’t an allowed exemption for the small family parcel, which led her to propose reduced rates across the board.
“This is apparently the only way to do that,” Cox said.
Councilman Robert Winkler represents the York and surrounding areas. Winkler advocated for the full impact fee proposal. Winkler said he didn’t understand sentiments on council that the fee simply seemed or felt too high.
“There’s a formula for how you calculate what the maximum fee can be, and that’s been done,” Winkler said.
Winkler pointed to more than 1,500 approved or pending homes planned within the school district when the study was done. A number now at more than 2,300 homes, Winkler said. Setting a lower amount and revisiting it later isn’t likely to bring the figure up, Winkler said.
Winkler said impact fees would allow incoming homeowners to foot much of the bill for new school growth, compared to higher bond amounts with the bill passed on to taxpayers.
“I have a choice as to whether or not I buy a new home or an existing home,” Winkler said. “I don’t have a choice as to whether or not I keep paying those property taxes for the rest of my life if we don’t have an impact fee.”
Councilman Tom Audette served multiple terms on the school board in Fort Mill, and knows the impact fees there have had on school funding. Audette supported the full amount for York.
“We can take one step forward in York, in order to support businesses in that area and support the residents,” Audette said. “Give them the tax break they need.”
Councilwoman Allison Love doesn’t buy the notion that impact fees will help existing residents.
“All of York County feels like this is going to reduce our taxes when in fact, I don’t believe it is going to reduce your taxes,” Love said.
Love said she instead favors measures to slow or limit growth, which she doesn’t believe impact fees accomplish.
“I feel like York County wants all the houses they can get,” Love said. “I feel like the municipalities, the cities and towns, want all the homes and houses. They want everything they can get. And when we pass a full impact fee, the schools want all the homes they can get.”
Councilman Brandon Guffey hasn’t supported impact fees, but was torn in weeks leading up to and during Monday’s vote. Guffey’s father is a local homebuilder and there’s concern down through the local subcontractors when builders have to pay more.
“It brings in the tract builders,” Guffey said. “The local guys can’t compete.”
Yet, Guffey said, York has an opportunity Fort Mill and Clover, which includes Lake Wylie, didn’t in recent years. York schools proposed a new fee on the front end of the growth wave.
“I feel like York is catching this at the right time,” Guffey said. “I’m also the same person that’s probably told Robert, it doesn’t feel right. It seems really high, but the numbers are there.”
The impact fee question, Guffey said, is a philosophical one.
“The question is do we all want to pay for it through taxes, or do we want a significant portion to be paid for by people moving here?” he said.
Ultimately, enough concern for buyers on the lower end of the scale kept council from approving the fees.
“It would be selfish of all of us to say, well that’s their problem,” Roddey said.
This story was originally published November 8, 2022 at 1:27 PM.
