St. Mary's County staff presents updated impact-fee calculation showing higher theoretical cost per new home

Staff presented an updated calculation of St. Mary’s County impact fees at the board’s Feb. 23 work session, saying the methodology — carried forward from consultant studies in 1989, 1993 and 2000 and reviewed annually by staff — now produces a theoretical per-household impact of $19,221.

The update matters because the county’s impact fees, which pay for growth-related schools, roads and parks, are set by formula and reviewed annually under a county resolution. Commissioners raised questions about how the calculation treats proposed projects that may not come online within the five-year capital plan and about how the county’s fee compares with neighboring jurisdictions.

Jeanette, a county presenter, told commissioners the calculation keeps the consultant methodology but plugs in current project costs and yields for schools, roads and parks. Using the Central County elementary project in the capital plan as an example, staff calculated a school component of $14,978 per new home when combining elementary, middle and high school portions using locally borne costs and student-yield factors.

Commissioners pressed several technical points: whether the calculation should include projects that appear only in years six or later of the CIP; how the model treats donated land or land acquisitions listed in separate projects; and whether fees should reflect the realistic likelihood that a listed school or park will be built within the fee horizon. One commissioner noted that the county’s current charged fee (they cited approximately $4,500) is well below the updated calculated figure and said that long-term undercharging effectively subsidizes every new house.

Staff said the calculation uses current dollars for construction and land cost inputs and that the fee is a one-time charge on new homes — if a proposed school never gets built, the fee would not be charged for homes that are not built. Staff also noted that the split between local and state shares in school financing recently changed and that lower state contributions can raise the local share embedded in the calculation.

Staff recommended a full recalculation for FY 2016 using updated CIP entries and household/permit trends and noted the county would submit a formal update consistent with the board’s adopted resolution requiring annual review. Commissioners asked staff to return with the full FY16 recalculation and additional comparisons to neighboring counties and to document the assumptions about projects (including whether land is assumed to be purchased or donated).

The board did not adopt a new fee at the session; staff said they will incorporate the board’s direction and return with a draft update.

Ending: Commissioners indicated they want a more detailed FY16 update before considering any change in the charged impact fee, asking staff to clarify assumptions about project timing, donated land and comparisons with Calvert and Charles counties.