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They debated the cost of higher Fort Mill school fees. Here’s the tab, so far.

File video: Fort Mill School District residents ask for higher impact fees

Residents showed up for a public hearing before the York County Council in June over impact fees in the Fort Mill school district. Impact fees are charged on new residences built within the district. The new fees were approved on July 16.
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Residents showed up for a public hearing before the York County Council in June over impact fees in the Fort Mill school district. Impact fees are charged on new residences built within the district. The new fees were approved on July 16.

Home builders, school leaders, home sellers, residents, parents — there were plenty of voices debating what higher fees on residential development for Fort Mill schools might mean.

Now, the receipts are starting to tell the story.

The last wave of lower fees and the first round of higher ones are on the books after York County Council approved increasing fees on new homes and apartments within the Fort Mill school district.

The district had been getting $2,500 for each new residence since 1996.

The new fees, approved July 16, are more than $18,000 for each new home and $12,000 for each new apartment. The fees are paid by builders or developers at the time a building permit is issued, but the cost is typically passed on to home buyers and renters.

The collection of the fees, called impact fees, now show an increase in new home and apartment construction just ahead of the change. It also shows building hasn’t dried up since.

The first fees at the higher fee rate were nine apartments on Croft Drive with permits issued in late July. The developer paid $108,180, at just over $12,000 per unit. It would have taken 44 apartments to pay that same amount at the previous fee rate.

The rest of the 220 homes and apartments permitted in July — spanning Fort Mill, Tega Cay and unincorporated York County — still were charged the lower fee. The district collected a total of $635,680.

In August, the district collected fees on 404 properties for more than $2.6 million.

2018 total school impact fee collections
York County Fort Mill Tega Cay Total
January $100,000 $157,500 $117,500 $375,000
February $37,500 $752,500 $35,000 $825,000
March $95,000 $177,500 $15,000 $287,500
April $42,500 $120,000 $55,000 $217,500
May $60,000 $255,000 $0 $315,000
June $672,500 $205,000 $182,500 $1,060,000
July $160,680 $380,000 $95,000 $635,680
August $1,089,178 $1,290,306 $232,896 $2,612,380
SOURCE: Fort Mill school district


Still, 71 percent of the fees in August were from building permits at the lower fee rate.

“The county told us there were some (permits) approved before the change, but hadn’t been issued yet,” said Joe Burke, school district spokesperson. “So where someone had applied for a permit, but hadn’t shown up in person yet.”

Eventually all permits will reflect the higher fee.

“The county told us it could be a couple of months of this,” Burke said.

Tallying total permits from one month to the next doesn’t necessarily show a run on permits before the increased rate, as some municipality planners said they weren’t expecting would happen. Seasonal changes also affect permit applications, because summer building is often higher.

Major projects can skew numbers, too. A large apartment project may add 100 or more residences in a month, while new home subdivisions may spread out the permits over time.

Still, data shows plenty of activity ahead of the change.

Only nine of the 220 residences in July were charged the higher rates. The 287 residences that came in at the lower rate in August would have put that month ahead of all others for total permits in 2018. Plus, all 287 technically were approved by mid-July, but finalized in August.

August 2018 school impact fee collections
$2,500 fee $18,158 fee $12,020 fee
Homes/Apartments Fee amount Homes Fee amount Apartments Fee amount
York County 250 $625,000 11 $199,738 22 $264,440
Fort Mill 31 $77,500 57 $1,032,506 15 $180,300
Tega Cay 6 $15,000 12 $217,896 0 $0
Total 287 $717,500 80 $1,450,140 37 $444,740
SOURCE: Fort Mill school district

From January through July, the average of monthly building permits was 143. In August, 117 permits were charged at the higher rate. The $1,894,880 collected just on those permits equaled more than two previous highest months combined.

The overall amount for August of $2,612,380 is higher than the three previous highest months combined.

District collection data shows 1,439 home and apartment projects permitted within the district this year through August.

Chester County, South Carolina may add impact fees ahead of its residential growth wave. Fees are common in high growth areas like Fort Mill, Indian Land, Tega Cay, Lake Wylie, York County and Lancaster County.

Impact fees are used to pay for services needed because of new growth. Fort Mill and Tega Cay have their own impact fees to pay for municipal services. The school district fees can be used for new schools.

The district isn’t planning on using that extra money just yet. The district voted to raise its tax rate on debt repayment amid a case filed by state and area home builders challenging the higher fees. That case was filed with the state supreme court, but hasn’t yet been heard.

John Marks: jmarks@fortmilltimes.com; @JohnFMTimes
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