Commission authorizes use of transportation impact fees for prioritized unpaved street improvements

The Town Commission on Sept. 8 reaffirmed a prioritization list and authorized funding from transportation impact fees for a multi-year program to improve unimproved streets and selected paved-road projects, subject to legal and consultant review.

Why it matters: The town holds roughly $1 million-plus in transportation impact fees earmarked for road improvements. Using impact fees for unpaved street upgrades could accelerate repairs in neighborhoods affected by new development and higher traffic, but Florida law requires the expenditure to meet a dual rational nexus test tying the fee to the need created by new development and showing the benefit to fee payers.

Public Works Director Mike Parker summarized the May 13 traffic-consultant report and outlined the dual rational nexus standard. "The first nexus is the need... The second nexus is the benefit," Parker said, explaining that courts expect a reasonable connection both between new development and added facilities and between the fee-funded facilities and the paying class. He recommended the commission reaffirm the consultant’s prioritization and authorize funding from transportation impact fees beginning in FY2025–26, adding staff will return to the commission with each specific project for detailed approval.

The consultant’s May 13 report identified both candidate roads for recycled asphalt millings and roads that require traditional hot-mix asphalt or design-build drainage improvements. Commissioners and residents discussed specific streets by name; staff said project design and legal review would determine whether a given street is eligible for impact-fee funding. "Our transportation consultant would then tell us, hey. This is what we feel can be used," Parker said.

Several residents and commissioners urged clarity on which materials will be used on which streets. Concerned residents asked that East Vic (Vic Avenue), Arrington, Eastwick and other high-traffic connectors be evaluated for traditional paving rather than millings after seeing increased dust and wear. Project prioritization cited in the report included East Gulley (priority 1), North Walker (priority 2), Daniels (priority 3), West Henshin (priority 4) and West Sadler (priority 5), among others. Some streets flagged as "design-build" in the consultant's package will require additional drainage or slope work before pavement can be placed.

The commission passed a motion to accept the prioritization schedule and to authorize staff to begin using transportation impact fees for eligible projects; staff will return with project-level packages and cost estimates for commission approvals. The motion passed by voice vote.

What’s next: Staff will coordinate with the traffic consultant and town attorney to confirm eligibility under the dual rational nexus test, prepare project designs and return to the commission for specific project approvals and construction contracts. The town indicated it hopes to complete the program over multiple years but may accelerate some projects as funding and project readiness allow.