Here’s where new home fees in York County could cost $15,000 more to pay for schools
Clover schools are in a virtual learning environment right now, but a York County decision Monday night could have some real world implications for how they operate in the future.
On May 11, the county planning commission will review and likely decide on a recommendation for or against school impact fees within the Clover School District. That recommendation then will go to York County Council for final approval. The planning commission recommendation is a key requirement for the state act allowing impact fees.
Impact fees are charges on new construction. Funds from those charges offset costs brought on by growth. The idea is that new construction pays more to fund the needs of growing communities. Impact fees can be established to help pay for schools, town facilities, police or fire protection, EMS, recreation or other public needs.
Fort Mill has a school impact fee dating back more than two decades. Like the school fee in Fort Mill, a Clover school fee has to be set up by York County. It would apply to all new residential construction in that district.
The ordinance in front of the planning commission Monday night at its own virtual meeting — coronavirus social distancing has area public bodies meeting online — puts the charge on a typical new home at $15,035. A mobile home would cost an extra $9,842. An apartment would add $7,430 per unit.
School impact fee lawsuit
In 2018 the county raised its fee for the Fort Mill School District from its original $2,500 per residence to more than $18,000 per home and $12,000 per apartment. Shea Homes, Soni Construction and both state and county homebuilder associations filed a lawsuit suit against the county and state alleging the fees were harmful to property owners and arbitrarily set to create a de facto moratorium on homebuilding.
In January a judge in York County ruled against the homebuilders and in favor of the county and state. In April, a York County court ruled against a motion from the homebuilders to reconsider the decision. On April 8, homebuilder attorneys appealed both decisions to a state appeals court.
A favorable decision in the Fort Mill school fee case would have lasting implications for the builders, who allege the state act that serves as a basis for the fees is flawed. The same act is the basis for numerous school and municipal impact fees in this area and statewide.
In Fort Mill, school officials initially held off on spending impact fee revenue brought in at the higher amount, pending the court decision. After earlier rulings in favor of the higher fees, the district began spending the money. Other districts including Clover discussed or worked toward new fees as the legal case continued.
Clover School District growth
The Clover district began work on new fees amid 3% annual growth, or about 250 to 300 new students per year. The district had about 4,300 new homes approved for development within five years. Both Lake Wylie and Clover brought up temporary homebuilding moratoriums. An amendment to the the moratorium York County set up for Lake Wylie appears on the the same planning commission agenda Monday night as the school impact fees.
The Clover school board recently approved a capital plan with an eighth elementary school to open in 2024-25 and a second high school in 2025-26. It also would convert the ninth-grade campus back to a middle school by 2025 and acquire land.
Impact fees can help with growth costs, but aren’t designed to fund them entirely. That capital plan has costs at $198 million and would require a bond referendum.
York County impact fee decision
The impact fee ordinance up for review Monday notes that without fees, all those and other capital costs would fall to existing district residents and businesses through bonds.
“The county finds that it is fair and equitable for new residential development in the Clover School District to fund new public education facilities, in part, through a proportionate share public education impact fee,” reads the proposed ordinance.
State law doesn’t set an amount, but sets a formula to determine how much a district can charge (the set cap vs. formula argument is prominent in the Fort Mill legal case). Public bodies, in this case the Clover School District, determine what facilities they have and what it would cost to maintain a level of service given community growth. The formula then determines an average amount a new home or apartment would have to pay.
The Clover district used consultant TischlerBise, the same firm Fort Mill used to determine its fee. The study determines a maximum amount a district can legally charge. Often municipalities choose to charge some percentage of that maximum amount.
The county planning commission recommendation on fees and fee amounts is an important benchmark, but ultimately York County Council makes the call. In the Fort Mill case, the planning commission didn’t recommend the fee at the higher amount ultimately passed by council.
Setting an impact fee for the Clover School District, either at the recommended or another amount, requires three readings and a public hearing by York County Council.
For now both the county planning commission and council meet virtually due to COVID-19. The May 11 planning commission will be available online via Zoom at this link or through yorkcountygov.com. Guests can dial in toll free at 877-853-5257 or 888-475-4499.
