Smithfield council votes to commission fiscal growth study amid proffer, school-capacity concerns

The Smithfield Town Council voted June 3 to commission a local fiscal growth-rate study to assess how residential development will affect the town's finances and public services, including schools.

Councilmember Darren Stallings made the motion after citing a TishlerBice study and a December 13, 2024 memorandum from the school board chairman about school capacity. "I would recommend that we commission our own study to determine what is an appropriate growth rate for Smithfield that keeps us in the green," Stallings said.

The study, council members said, would model growth scenarios, fiscal impacts and the point at which town revenues could be outpaced by service and operating costs. Town Manager Michael (last name not specified) told council staff would first contact the consultant that prepared the county's study to ask whether the county's data could be parsed for the town or whether a separate contract is needed.

The town attorney, Bill Riddick, told council members that legal limits complicate the use of cash proffers for operating expenses. "It's illegal to accept proffers for operating expenses," Riddick said, noting that proffers tied to operating costs could not simply be accepted by the school system in the way some residents and developers have proposed.

Council members discussed options short of commissioning a full new study: having staff try to extract town-specific data from the county study or commissioning an analysis that synthesizes economic impact statements developers already prepare as part of rezoning. Councilman Brooks suggested collecting existing developer reports to condense what is already available before starting a new contract.

The motion to commission a study passed on a roll call; members voting yes included Councilman Cutler, Vice Mayor Harris, Councilman Bowman, Councilman Brooks, Councilwoman Diebenmeyer and Mayor Michael G. Smith.

Why it matters: Council members framed the study as a tool to guide future decisions about proffers, rezonings and the comprehensive plan so growth does not cause fiscal stress or force reductions in services. The study is intended to inform negotiations with developers, potential coordination with Isleaway County and the school board, and whether the town can accept or solicit proffers for capital projects such as a new school.

Next steps: Town staff said they would contact the county's consultant as a first step and report back to council on cost and scope options for a town-specific analysis.