Tavares council advances proposed municipal impact fee increases after workshop

The Tavares City Council on April 2 advanced a draft 2025 municipal impact fee study and voted to move a full fee increase for police, fire and parks — and proposed increases for general government — to the ordinance stage for first reading at the next council meeting.

The draft 2025 Municipal Impact Fee Study, prepared for the city by consultant Rap/Telus representatives Michelle Galvin and Joe Williams, recommends higher one‑time fees charged to new development to pay for growth‑related capital for police, fire, parks and general government. Galvin told the council that the last local update dated from February 2006 and that construction, equipment and vehicle prices have risen significantly in recent years.

Galvin said the draft identifies two “extraordinary circumstances” that the council may rely on to justify exceeding statutorily allowed annual and four‑year phased increases: recent inflationary cost increases and a projected significant rise in population that requires additional capital investments. She noted the report estimates the city would collect about $14 million under the proposed fees over 10 years, compared with roughly $3.4 million under the existing fees — a difference of about $10.5 million.

The study also presents a four‑year phase‑in option. Council questions included how much revenue the city would forgo under that approach; Galvin said the phased plan would reduce near‑term collections by roughly $1.4 million.

Council members who spoke in favor said the increases shift growth costs to new development instead of general taxpayers. One councilmember argued implementing the full calculated fees would avoid placing unfunded capital demands on existing residents; another noted the proposed increase on a sample $380,000 new home — about $2,462 in added impact fees — represents less than 1% of typical new‑home prices in Lake County.

After discussion, a councilmember moved and a second was made to advance the full increase (not the phase‑in) to the ordinance stage. The motion passed by voice vote; councilmembers directed staff to bring ordinance language and the final report back for first reading at the next regular meeting. If adopted after two regular readings, state law requires a minimum 90‑day waiting period before implementation.

Why it matters: Florida law changed in 2021 (House Bill 337, the Florida Impact Fee Act), adding definitions and new procedural limits on impact fee increases, including caps (no more than 12.5% in a single year and no more than 50% over four years without a two‑thirds vote and two publicly noticed workshops). The city’s draft study explicitly addresses how to document “extraordinary circumstances” that would allow Tavares to exceed the statutory phase‑in limits.

Next steps and implementation: The council indicated the final study and proposed ordinance will return for first reading at the next council meeting; if ultimately adopted, fees would be implemented after the statutorily required waiting period. The draft report and presentation also included comparisons to nearby communities (Mount Dora, DeLand, Orange County, Claremont, St. Cloud and Oviedo) and a revenue forecast used by staff to estimate capital‑funding gaps.

All direct quotations in this article come from speakers at the workshop: Michelle Galvin, consultant, Rap/Telus; and council members as identified in the transcript.